Overview of Q4 Subscriber Growth

T-Mobile US reported that it added 962,000 postpaid wireless subscribers in the fourth quarter of 2025. The company achieved the highest customer growth among major U.S. wireless carriers, but its results fell short of the 981,000 subscriber increase which analysts had forecasted. Slower growth than expected was experienced by the company due to the fact that promotions were being handed from Verizon and AT&T and other competitors to catch the attention of the customers that the company could have won.

T-Mobile shares dropped approximately 3.4% in premarket trading after the report because investors responded to the company's missing subscriber targets.

Competition and Market Conditions

The period from October through December marks the time when wireless carriers increase their holiday promotional activities. The current market situation has created challenges for T-Mobile because its rivals introduced stronger device promotions and combined discount offers. The new CEO of Verizon, which introduced a new leadership team, reported that the company achieved its highest subscriber growth in six years because of their promotional offer which provided four phone lines for $100 per month.

T-Mobile maintained its position as the leading company in net postpaid phone growth because it continues to operate as a major market competitor.

Churn and Revenue

T-Mobile's churn rate increased to 1.02% which represents customers who terminate their service from the previous year's 0.92% rate. The network experiences increased customer departures which indicate mounting market pressures.

The company achieved total revenue of $24.33 billion which exceeded revenue predictions. The main factor driving growth for the company showed customers increasing their usage of premium subscription packages which included Netflix and Hulu streaming service access. T-Mobile reported that 60% of its new customers selected premium plans which demonstrates rising interest in additional service options.

Cash Flow Forecast

T-Mobile forecasted its adjusted free cash flow for the upcoming year to range between $18 billion and $18.7 billion. The actual results fell short of analysts' predictions which expected the company to achieve approximately $18.9 billion, because of increased costs associated with the UScellular merger integration.

What This Means Going Forward

The results indicate that the U.S. wireless market operates as a highly competitive environment which forces carriers to compete for subscribers through special deals and bundled services and improved service offerings. T-Mobile's performance shows strength but the company will face difficulties in meeting investor expectations because competition in the market keeps growing.