T-Mobile Pledges $2B and $700M in Fiber JVs, Q1 EPS $2.27 Beats Estimates
T-Mobile will invest $2B for a 50% stake in GoNetspeed/Greenlight and $700M for a 50% stake in i3 Broadband, extending fiber service to over 1 million homes. In Q1, T-Mobile delivered EPS of $2.27 versus $2.06 expected and revenue of $23.11B while adding 217k postpaid subscribers and boosting core EBITDA 12% to $9.2B.
1. Fiber Joint Ventures
T-Mobile will form two 50-50 joint ventures to accelerate fiber rollout, investing approximately $2B to acquire GoNetspeed and Greenlight Networks alongside Oak Hill Capital and $700M for a stake in i3 Broadband with Wren House. These partnerships target over 1 million additional homes for multi-gig connections.
2. Q1 Financial Results
In the first quarter, T-Mobile reported adjusted EPS of $2.27 versus $2.06 expected, and revenue of $23.11B compared to $22.97B consensus. The carrier added 217,000 postpaid subscribers, raised postpaid ARPA 3.9% to $151.93, and grew core adjusted EBITDA 12% to $9.2B while generating $4.6B in free cash flow.
3. Capital Allocation and Timeline
The Oak Hill joint venture is slated to close in the first half of 2027 with T-Mobile funding its equity share against existing residential fiber customers, while the Wren House deal is expected to finalize in the second half of 2026. T-Mobile plans to stage these investments to support growth without overleveraging its balance sheet.