Compare · Communication Services
T-Mobile vs. Verizon: how they make money
The same facts for both companies, in the same order, from each company's own page and filings. This is not a ranking and says nothing about which share to own.
Each company in 5 points
T-Mobile
1 · What it sells
T-Mobile sells monthly phone and home internet plans, plus the phones that use them, under the T-Mobile, Metro by T-Mobile and Mint Mobile brands, with $88.3 billion of revenue in FY2025.
Sources and detail on the T-Mobile page2 · Who pays it
In FY2025, postpaid customers' service bills were 65.6% of T-Mobile's revenue, phone and device sales 18.1%, prepaid customers 11.9%, and wholesale partners and other revenue 4.4%.
Sources and detail on the T-Mobile page3 · What it keeps from $100
Of every $100 that came in during FY2025, T-Mobile kept $12.45 as net income, with no large one-off gains, and its operating income was $20.70 per $100 of revenue.
Sources and detail on the T-Mobile page4 · Where the operating profit comes from
T-Mobile reports one operating segment, and in FY2025 its service revenue of $71,306 million cost $11,497 million to deliver directly, while devices that sold for $15,972 million cost $21,277 million.
Sources and detail on the T-Mobile page5 · The one thing to watch
Postpaid account churn was 1.09% a month in Q3 FY2026, against 0.97% in Q3 FY2025, while revenue per account rose to $155.73 from $149.44.
Sources and detail on the T-Mobile page
Verizon
1 · What it sells
Verizon sells wireless plans, home and business internet, and phones, mostly in the US, with $138.2 billion of revenue in FY2025.
Sources and detail on the Verizon page2 · Who pays it
In FY2025, households, individuals and wireless resellers paid 77% of Verizon's revenue, companies and government 21%, and other lines such as device insurance 2%.
Sources and detail on the Verizon page3 · What it keeps from $100
Of every $100 that came in during FY2025, Verizon kept $12.42 as net income, after $3,609 million of pre-tax special items such as severance, and operating income was $21.17 per $100 of revenue.
Sources and detail on the Verizon page4 · Where the operating profit comes from
In FY2025, Consumer earned $29,628 million of segment operating income, or 92.1%, and Business $2,532 million, or 7.9%, before corporate costs and most special items.
Sources and detail on the Verizon page5 · The one thing to watch
Total debt was $166,233 million on Sep 30, 2026, up from $144,014 million on Dec 31, 2024, while cash from operations was $39,050 million over the prior four quarters.
Sources and detail on the Verizon page
Where each $100 went
Each company's own receipt for its latest full fiscal year, with matching lines in the same order where both have them.
T-Mobile
Where $100 went · FY2025
| Selling, general and admin | $26.6 |
|---|---|
| Cost of services | $13.0 |
| Cost of equipment sales | $24.1 |
| Depreciation, amortization and impairment | $15.6 |
| Interest and other expense, net | $4.5 |
| Income tax | $3.7 |
| Kept as net income | $12.4 |
| Total | $100 |
Of every $100 that came in during FY2025 (revenue of $88,309 million; other items were a net expense of $224 million, counted with interest). Cityfort calculation from FY2025 10-K. Operating income was $20.70 per $100 of revenue. Depreciation includes a $278 million impairment.
Verizon
Where $100 went · FY2025
| Selling, general and admin | $24.4 |
|---|---|
| Cost of services | $20.1 |
| Cost of wireless equipment | $20.9 |
| Depreciation and amortization | $13.3 |
| Interest | $4.8 |
| Income tax, and outside partners' share | $4.0 |
| Kept as net income | $12.4 |
| Total | $100 |
Of every $100 that came in during FY2025 (revenue $138,191 million + other income $107 million = $138,298 million). Cityfort calculation from FY2025 10-K. On revenue alone, operating income was $21.17 and net income $12.43 per $100. Special items were $3,609 million before tax, of which $3,149 million sat in operating expenses. Operating income was $21.17 per $100 of revenue.
Line items differ because each company groups its costs its own way in its filings. Only on T-Mobile's receipt: Cost of equipment sales; Depreciation, amortization and impairment; Interest and other expense, net; Income tax. Only on Verizon's receipt: Cost of wireless equipment; Depreciation and amortization; Interest; Income tax, and outside partners' share.
Revenue, net income and free cash flow
Up to five fiscal years for each company, drawn on one shared scale per measure. Amounts in US$ as reported (GAAP).
Revenue
T-Mobile
Verizon
See the numbers
Net income
T-Mobile
Verizon
See the numbers
Free cash flow
T-Mobile
Verizon
See the numbers
Who pays each company
T-Mobile
- Postpaid customers (service) · 65.6% of revenueHouseholds and businesses that pay a monthly bill after service. Postpaid revenue was $57,932 million in FY2025, 81% of service revenue.
- Phone and device buyers (equipment) · 18.1% of revenueMostly the same customers, buying phones and other devices, often in installments. Equipment revenue was $15,972 million in FY2025.
- Prepaid customers (service) · 11.9% of revenuePeople who pay in advance, under the T-Mobile, Metro by T-Mobile, Mint Mobile and Ultra Mobile brands. Prepaid revenue was $10,497 million in FY2025, 15% of service revenue.
- Wholesale partners and other · 4.4% of revenuePartners that resell access to T-Mobile's network, plus other revenues. Wholesale and other service revenue was $2,877 million and other revenues $1,031 million in FY2025.
Verizon
- Households, individuals and resellers (Consumer) · 77.3% of revenueWireless plans, home internet, video, phones, and wholesale access sold to resellers. Revenue was $106,807 million in FY2025. Verizon says "approximately 77%" of revenue.
- Companies and government (Business) · 21.0% of revenueEnterprise and Public Sector $13.5 billion, Business Markets and Other $13.6 billion, and Wholesale $2.0 billion. Revenue was $29,069 million in FY2025.
- Corporate and other · 1.9% of revenueMainly device insurance programs and businesses outside the two segments. Revenue was $2,642 million in FY2025.
Revenue by segment
T-Mobile
FY2025
| Segment | Revenue | Share |
|---|---|---|
| Postpaid | $57.9B | 65.6% |
| Equipment | $16.0B | 18.1% |
| Prepaid | $10.5B | 11.9% |
| Wholesale and other | $3.9B | 4.4% |
Verizon
FY2025
| Segment | Revenue | Share |
|---|---|---|
| Consumer | $106.8B | 77.3% |
| Business | $29.1B | 21.0% |
| Corporate and other | $2.6B | 1.9% |
Sources: T-Mobile S1, S3, S4, S15 · Verizon S1, S13, S6, S17, S44
Debt and cash
T-Mobile
- Debt
- $86.0B
- Cash and investments
- $5.6B
On Sep 30, 2026.
On Sep 30, 2026, debt minus cash was $80.3 billion, about 2.8 years of the $28.7 billion of cash from operations over the prior four quarters.
Verizon
- Debt
- $166.2B
- Cash and investments
- $4.5B
On Sep 30, 2026.
On Sep 30, 2026, total debt minus cash was $161.7 billion, about 4.1 years of the $39.1 billion of cash from operations over the prior four quarters.
Sources: T-Mobile S11, S6, S1, S3, S5, S24 · Verizon S13, S6, S1, S14, S15, S16
Who owns each company
T-Mobile
- One class of shares.
- Officers and directors as a group: 0.3% of shares (as of Mar 31, 2026).
- Deutsche Telekom AG: 55.9% of its class, 55.9% of votes (as of Oct 29, 2026).
Verizon
- One class of shares.
- Officers and directors as a group: 0.0% of shares (as of Mar 3, 2026).
- Vanguard Capital Management: 7.2% (as of Apr 30, 2026).
- The Vanguard Group (proxy table): 8.4% (as of Feb 13, 2024).
- BlackRock (proxy table): 8.3% (as of Feb 6, 2024).
- 1 more holders on the Verizon page.
Sources: T-Mobile S20, S21, S6, S8 · Verizon S22, S6, S23, S24
Risks only one page tracks
Risks whose type the other company's page does not list. Both pages track risks of these types: debt, competition, technology, legal cases, execution. Every risk is on each company's page.
T-Mobile
- Control by Deutsche Telekom (governance)Deutsche Telekom held 55.9% of the shares in October 2026 and can name up to 10 board nominees. Other holders cannot outvote it, and T-Mobile uses Nasdaq's controlled-company exemptions.
- Unpaid device and service bills (other)Many customers pay for phones in installments. Bad debt and losses on sold receivables were 1.9% of revenue in Q3 FY2026, against 1.6% in Q3 FY2025.
Verizon
- Regulation and spectrum licenses (regulation)Verizon's wireless business runs on FCC licenses, typically with 10-year terms. Its 10-K lists regulation among its risk factors.
- Dividend, buybacks, pensions and unions (other)Verizon's 10-K says buybacks and dividends are not assured. It had about 179,400 retirees eligible for its plans and about 27% of its workforce in unions at Dec 31, 2025.
Key facts
- How does T-Mobile make money compared with Verizon?
- T-Mobile's revenue by segment in FY2025: Postpaid 65.6%, Equipment 18.1%, Prepaid 11.9%, Wholesale and other 4.4%. Verizon's revenue by segment in FY2025: Consumer 77.3%, Business 21.0%, Corporate and other 1.9%.
- Which is bigger by revenue, T-Mobile or Verizon?
- T-Mobile reported $88.3B of revenue in FY2025, and Verizon reported $138.2B in FY2025.
- How much net income did T-Mobile and Verizon report?
- T-Mobile reported net income of $11.0B in FY2025, and Verizon reported $17.2B in FY2025.
- How much of every $100 did T-Mobile and Verizon keep as net income?
- T-Mobile kept $12.4 of every $100 that came in during FY2025, and Verizon kept $12.4 in FY2025 (Cityfort calculation from each company's annual report).
- How much debt and cash do T-Mobile and Verizon have?
- T-Mobile had $86.0B of debt and $5.6B of cash and investments on Sep 30, 2026. Verizon had $166.2B of debt and $4.5B of cash and investments on Sep 30, 2026.
- When do T-Mobile's and Verizon's fiscal years end?
- T-Mobile: Fiscal year ends on December 31 (the calendar year). Verizon: Fiscal year ends on December 31 (the calendar year).
Sources: T-Mobile S3, S4, S1, S15, S11, S6, S5, S24 · Verizon S3, S1, S13, S6, S17, S44, S14, S15, S16
Built from each company's page. T-Mobile updated Nov 6, 2026; Verizon updated Nov 1, 2026.
Sources
T-Mobile
- S1Form 10-K, fiscal year 2025 (ended Dec 31, 2025), T-Mobile US, Inc. (SEC EDGAR), Feb 11, 2026
- S3Form 10-K, fiscal year 2023 (ended Dec 31, 2023), T-Mobile US, Inc. (SEC EDGAR), Feb 2, 2024
- S4Form 10-K, fiscal year 2022 (ended Dec 31, 2022), T-Mobile US, Inc. (SEC EDGAR), Feb 14, 2023
- S5Form 10-K, fiscal year 2021 (ended Dec 31, 2021), T-Mobile US, Inc. (SEC EDGAR), Feb 11, 2022
- S6Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026), T-Mobile US, Inc. (SEC EDGAR), Oct 28, 2026
- S8Form 10-Q, Q1 FY2026 (quarter ended Mar 31, 2026), T-Mobile US, Inc. (SEC EDGAR), Apr 28, 2026
- S11Investor Factbook Q3 FY2026, Form 8-K Item 2.02, Exhibit 99.2, T-Mobile US, Inc. (SEC EDGAR), Oct 28, 2026
- S15Investor Factbook Q4 FY2025, Form 8-K Item 2.02, Exhibit 99.2, T-Mobile US, Inc. (SEC EDGAR), Feb 11, 2026
- S20Definitive proxy statement (DEF 14A), 2026 annual meeting, T-Mobile US, Inc. (SEC EDGAR), Apr 27, 2026
- S21Schedule 13D/A (Amendment No. 36), Deutsche Telekom AG (event Oct 28, 2026), Deutsche Telekom AG (SEC EDGAR), Oct 29, 2026
- S24Form 8-K (Items 1.01, 2.03): Second Amended and Restated Credit Agreement ($10.0 billion revolver), T-Mobile US, Inc. (SEC EDGAR), Jan 6, 2026
Verizon
- S1Form 10-K for fiscal year 2025 (ended Dec 31, 2025), Verizon Communications Inc. (SEC EDGAR), Feb 17, 2026
- S3Form 10-K for fiscal year 2023, Verizon Communications Inc. (SEC EDGAR), Feb 9, 2024
- S6Form 10-Q for Q3 fiscal 2026 (ended Sep 30, 2026), Verizon Communications Inc. (SEC EDGAR), Oct 29, 2026
- S13Earnings release, Q3 fiscal 2026 (Form 8-K, Exhibit 99), Verizon Communications Inc. (SEC EDGAR), Oct 26, 2026
- S14Earnings release, Q2 fiscal 2026 (Form 8-K, Exhibit 99), Verizon Communications Inc. (SEC EDGAR), Jul 24, 2026
- S15Earnings release, Q1 fiscal 2026 (Form 8-K, Exhibit 99), Verizon Communications Inc. (SEC EDGAR), Apr 27, 2026
- S16Earnings release, Q4 fiscal 2025 (Form 8-K, Exhibit 99), Verizon Communications Inc. (SEC EDGAR), Jan 30, 2026
- S17Earnings release, Q3 fiscal 2025 (Form 8-K, Exhibit 99), Verizon Communications Inc. (SEC EDGAR), Oct 29, 2025
- S22Proxy statement (DEF 14A) for the 2026 annual meeting, Verizon Communications Inc. (SEC EDGAR), Apr 6, 2026
- S23Schedule 13G, Vanguard Capital Management, event date Mar 31, 2026, Verizon Communications Inc. (SEC EDGAR), Apr 30, 2026
- S24Schedule 13G/A, The Vanguard Group, event date Mar 13, 2026, Verizon Communications Inc. (SEC EDGAR), Mar 27, 2026
- S44Financial and operating information, Q3 fiscal 2026 (Oct 26, 2026), Verizon investor relations, Oct 26, 2026
Disclaimer
For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.
Investing in securities involves risk, including loss of capital. Before making any investment decision, do your own research and consider consulting a registered investment adviser or other qualified professional.
Cityfort, its owners and contributors may or may not hold securities of companies covered. Cityfort is not paid by any company it covers. Content is not an offer or solicitation to buy or sell any security, including in any initial public offering.
Read the positions policyRead the full disclaimerHide the full disclaimer
Cityfort publishes general educational content that explains how listed companies work. Cityfort is not registered with the US Securities and Exchange Commission or any state securities regulator as an investment adviser, and is not a broker-dealer or a member of FINRA. Cityfort does not provide investment, tax or legal advice, recommendations, ratings, price targets or any opinion on whether to buy, sell or hold any security. Nothing on the site is tailored to any person's circumstances.
All information is taken from publicly available sources, mainly company filings with the SEC, which are listed on each page with dates. We work to keep it accurate and correct errors publicly, but we do not guarantee that it is complete, accurate or up to date. Any market price or price-based ratio shown is dated, may be out of date by the time you read it, and is included only to explain concepts.
Statements by company management, including forward-looking statements and guidance, are reported as the company's statements, with their date and source; they are not our forecasts. Adjusted (non-GAAP) figures are the company's own measures and are shown next to the official (GAAP) figures.