Stock Analysis on Net
Stock Analysis on Net

T-Mobile US Inc. (NASDAQ:TMUS)

Common-Size Income Statement 

T-Mobile US Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Postpaid revenues 65.60 64.30 61.98 57.71 53.12
Prepaid revenues 11.89 12.78 12.43 12.39 12.15
Wholesale and other service revenues 3.26 4.22 6.09 6.97 7.58
Service revenues 80.75% 81.30% 80.50% 77.07% 72.85%
Equipment revenues 18.09 17.52 18.00 21.53 25.87
Other revenues 1.17 1.18 1.50 1.41 1.28
Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of services, exclusive of depreciation and amortization -13.02 -13.23 -14.84 -18.43 -17.39
Cost of equipment sales, exclusive of depreciation and amortization -24.09 -23.20 -23.59 -27.07 -28.30
Cost of revenues -37.11% -36.43% -38.43% -45.50% -45.69%
Gross profit 62.89% 63.57% 61.57% 54.50% 54.31%
Selling, general and administrative -26.58 -25.57 -27.13 -27.15 -25.26
Gain (loss) on disposal group held for sale 0.00 0.00 0.03 -1.37 0.00
Impairment expense -0.31 0.00 0.00 -0.60 0.00
Depreciation and amortization -15.30 -15.87 -16.32 -17.16 -20.45
Operating income 20.70% 22.13% 18.16% 8.22% 8.60%
Interest expense, net -4.27 -4.19 -4.25 -4.23 -4.17
Other income (expense), net -0.25 0.14 0.09 -0.04 -0.25
Other expense, net -4.53% -4.05% -4.16% -4.27% -4.42%
Income before income taxes 16.17% 18.07% 14.00% 3.95% 4.18%
Income tax expense -3.72 -4.14 -3.41 -0.70 -0.41
Net income 12.45% 13.93% 10.59% 3.25% 3.77%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The common-size income statement reveals significant shifts in the company’s revenue composition and profitability over the five-year period. A notable trend is the increasing concentration of revenues in the postpaid segment, while wholesale and other service revenues demonstrate a consistent decline. Simultaneously, the company exhibits improvements in gross profit margin and operating income, alongside fluctuations in net income.

Revenue Composition
Postpaid revenues consistently increased as a percentage of total revenues, rising from 53.12% in 2021 to 65.60% in 2025. Prepaid revenues remained relatively stable between 12.15% and 12.78% before decreasing to 11.89% in 2025. Wholesale and other service revenues experienced a substantial decrease, falling from 7.58% in 2021 to 3.26% in 2025. This suggests a strategic shift towards direct consumer subscriptions and away from wholesale partnerships.
Cost Structure and Gross Profit
The cost of revenues, as a percentage of revenues, decreased significantly from 45.69% in 2021 to 37.11% in 2025. This improvement in cost management directly contributed to a rise in gross profit margin, increasing from 54.31% in 2021 to 62.89% in 2025. The decline in both cost of services and cost of equipment sales contributed to this positive trend.
Operating Performance
Operating income demonstrated a substantial increase as a percentage of revenues, growing from 8.60% in 2021 to 22.13% in 2024 before slightly decreasing to 20.70% in 2025. This improvement was driven by the enhanced gross profit margin and, to a lesser extent, by relatively stable selling, general, and administrative expenses. Fluctuations in gain/loss on disposal groups and impairment expenses impacted operating income in specific years, but their overall effect was limited.
Net Income and Taxes
Net income as a percentage of revenues increased from 3.77% in 2021 to 13.93% in 2024, then decreased to 12.45% in 2025. The income tax expense as a percentage of revenues increased significantly in 2023 and 2024, partially offsetting the gains in income before income taxes. This suggests changes in the effective tax rate or taxable income composition. Interest expense remained relatively consistent as a percentage of revenues throughout the period.

Overall, the company experienced a positive trend in profitability, driven by improvements in revenue mix and cost management. While net income fluctuated due to tax-related factors, the underlying operating performance showed substantial gains. The shift in revenue composition towards postpaid services appears to be a key driver of these improvements.