Aureus
AExcellent

T-Mobile US, Inc.(TMUS)

A

Financial data as of Dec 31, 2025Improving · Communication Services

FCF Margin17.5%Free Cash Flow / Revenue
Cash Conversion254.3%Operating CF / Net Income
Free Cash Flow$15.4B
Revenue$88.3B
Net Cash-$116.7BNet debt position
Debt / FCF7.9xElevated debt burden
Current Ratio1.00Tight short-term liquidity
YoY FCF Growth+64.7%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-1High debt-to-FCF ratio (7.9x)
→
+0.5Healthy FCF margin with manageable debt (17.5%, 7.9x)
→
-1Current ratio below 1.0 (1.00)
→
+1Strong YoY FCF growth (64.7% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (17.5%)
  • Excellent cash conversion (254%)
  • Strong YoY FCF growth (+64.7%)
  • Highly consistent quarterly FCF

Concerns

  • Heavy debt position ($116.7B net debt, 7.9x FCF)
  • High debt-to-FCF ratio (7.9x)
  • Current ratio below 1.0 — tight short-term liquidity

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.5%
Net Margin12.4%
Operating CF Margin31.7%
CapEx Ratio14.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$116.7BNet debt position
Debt / FCF7.9xElevated debt burden
Current Ratio1.00Tight liquidity
Debt / Equity2.07High leverage

Quarterly FCF Trend

+64.7% YoYImproving (+64.7%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameT-Mobile US, Inc.
SectorCommunication Services
Free Cash Flow$15.4B
Revenue$88.3B
Net Income$11.0B
Operating Cash Flow$27.9B
Capital Expenditure$12.5B
FCF Margin17.5%
Cash Conversion Rate254.3%
Net Margin12.4%
Total Debt$122.3B
Total Cash$5.6B
Net Cash-$116.7B
Current Ratio1.00
Debt / Equity2.07
Debt / FCF7.9x
YoY FCF Growth+64.7%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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