Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

T-Mobile US Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	10,992)	11,339)	8,317)	2,590)	3,024)
Depreciation and amortization	13,508)	12,919)	12,818)	13,651)	16,383)
Stock-based compensation expense	829)	649)	667)	595)	540)
Deferred income tax expense	2,864)	3,120)	2,600)	492)	197)
Bad debt expense	1,370)	1,192)	898)	1,026)	452)
Losses from sales of receivables	58)	62)	165)	214)	15)
Losses on redemption of debt	—)	—)	—)	—)	184)
Impairment expense	278)	—)	—)	477)	—)
Loss on remeasurement of disposal group held for sale	—)	—)	9)	377)	—)
Accounts receivable	(755)	(3,088)	(5,038)	(5,158)	(3,225)
Equipment installment plan receivables	(877)	(523)	170)	(1,184)	(3,141)
Inventory	(615)	131)	197)	744)	201)
Operating lease right-of-use assets	3,635)	3,480)	3,721)	5,227)	4,964)
Other current and long-term assets	(1,488)	(411)	(358)	(754)	(573)
Accounts payable and accrued liabilities	1,542)	(2,041)	(1,126)	558)	549)
Short- and long-term operating lease liabilities	(3,457)	(3,879)	(3,785)	(2,947)	(5,358)
Other current and long-term liabilities	(379)	(678)	(839)	459)	(531)
Changes in operating assets and liabilities	(2,394)	(7,009)	(7,058)	(3,055)	(7,114)
Other, net	445)	21)	143)	414)	236)
Adjustments to reconcile net income to net cash provided by operating activities	16,958)	10,954)	10,242)	14,191)	10,893)
Net cash provided by operating activities	27,950)	22,293)	18,559)	16,781)	13,917)
Purchases of property and equipment, including capitalized interest	(9,955)	(8,840)	(9,801)	(13,970)	(12,326)
Purchases of spectrum licenses and other intangible assets, including deposits	(2,568)	(3,471)	(1,010)	(3,331)	(9,366)
Proceeds from the sale of property, equipment and intangible assets	2,168)	99)	153)	—)	—)
Proceeds from sales of tower sites	—)	—)	12)	9)	40)
Proceeds related to beneficial interests in securitization transactions	—)	3,579)	4,816)	4,836)	4,131)
Acquisition of companies, net of cash acquired	(3,523)	(373)	—)	(52)	(1,916)
Investments in unconsolidated affiliates, net	(4,056)	(18)	(7)	—)	—)
Other, net	327)	(48)	8)	149)	51)
Net cash used in investing activities	(17,607)	(9,072)	(5,829)	(12,359)	(19,386)
Proceeds from issuance of long-term debt, net	12,010)	8,587)	8,446)	3,714)	14,727)
Repayments of financing lease obligations	(1,252)	(1,367)	(1,227)	(1,239)	(1,111)
Repayments of short-term debt for purchases of inventory, property and equipment and other financial liabilities	—)	—)	—)	—)	(184)
Repayments of long-term debt	(6,199)	(5,073)	(5,051)	(5,556)	(11,100)
Repurchases of common stock	(9,974)	(11,228)	(13,074)	(3,000)	—)
Dividends on common stock	(4,121)	(3,300)	(747)	—)	—)
Tax withholdings on share-based awards	(434)	(269)	(297)	(243)	(316)
Cash payments for debt prepayment or debt extinguishment costs	—)	—)	—)	—)	(116)
Other, net	(111)	(165)	(147)	(127)	(191)
Net cash provided by (used in) financing activities	(10,081)	(12,815)	(12,097)	(6,451)	1,709)
Effect of exchange rate changes on cash and cash equivalents, including restricted cash	1)	—)	—)	—)	—)
Change in cash and cash equivalents, including restricted cash	263)	406)	633)	(2,029)	(3,760)
Cash and cash equivalents, including restricted cash, beginning of period	5,713)	5,307)	4,674)	6,703)	10,463)
Cash and cash equivalents, including restricted cash, end of period	5,976)	5,713)	5,307)	4,674)	6,703)

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 company demonstrates a significant increase in net income over the observed period, rising from US$3,024 million in 2021 to US$11,339 million in 2024 before slightly decreasing to US$10,992 million in 2025. This positive trend in net income is accompanied by substantial growth in net cash provided by operating activities, increasing from US$13,917 million in 2021 to US$27,950 million in 2025. However, this operational cash generation is offset by consistently negative net cash used in investing activities and, more recently, negative net cash provided by (used in) financing activities.

Operating Activities: Adjustments to reconcile net income to net cash provided by operating activities remain consistently positive and substantial, fluctuating between US$10,242 million and US$16,958 million throughout the period. Changes in operating assets and liabilities are consistently negative, representing a significant use of cash, though the magnitude decreases over time. Accounts receivable show a decreasing negative impact, indicating improved collection efficiency, while inventory demonstrates a shift from a positive to a significant negative impact in later years. Accounts payable and accrued liabilities also show a shift from positive to negative impact, indicating a decrease in cash from these liabilities.
Investing Activities: Net cash used in investing activities is consistently negative, driven primarily by substantial purchases of property and equipment, and spectrum licenses. While purchases of property and equipment remain significant, they decrease over time. Purchases of spectrum licenses and intangible assets decrease dramatically after 2021. Proceeds from the sale of property, equipment, and intangible assets, as well as proceeds related to beneficial interests in securitization transactions, provide some offsetting cash inflows, but are insufficient to offset the outflows. Acquisition of companies represents a notable cash outflow in 2021 and 2025. Investments in unconsolidated affiliates become a significant cash outflow in 2025.
Financing Activities: Net cash provided by (used in) financing activities transitions from positive in 2021 to negative in subsequent years. Proceeds from the issuance of long-term debt are a significant cash inflow in earlier years, but decrease over time. Repayments of long-term debt are consistently negative, representing a cash outflow. Repurchases of common stock become a substantial cash outflow starting in 2022, and dividends on common stock are introduced in 2023, further contributing to the negative trend. Tax withholdings on share-based awards represent a consistent, though smaller, cash outflow.
Cash Position: Despite the increasing net income and operating cash flow, the change in cash and cash equivalents is initially negative, but becomes positive in 2023 and 2024, before stabilizing. The company maintains a substantial cash balance, increasing from US$6,703 million in 2021 to US$5,976 million in 2025.

Overall, the company exhibits strong operational performance and cash generation from core business activities. However, significant investments in growth initiatives and shareholder returns through stock repurchases and dividends are impacting free cash flow and financing activities. The shift in financing activities from positive to negative suggests an increasing reliance on existing cash reserves or potentially future debt issuance to fund these activities.

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T-Mobile US Inc. (NASDAQ:TMUS)

Cash Flow Statement