Leap Wireless, which operates under the Cricket brand, released their earnings today. While the news wasn’t positive, it does pose a welcome sign for customers who are anticipating the merger with AT&T, which is coming once FCC regulators and the Department of Justice approve the deal.

The flat-rate provider said they lost 196,000 customers last quarter, but notes that number was less than this time last year. Their churn rate for Q3 2013 was 3.5%, compared to 4.2% in Q3 2012. Leap notes that services like handset financing and automatic bill payment helped keep customers from leaving, but obviously not enough.

Leap also enjoyed a trend all other carriers experience as of late, as smartphones become an increasingly large portion of their device sales. The carrier noted that 78% of all devices sold in Q3 2013 were smartphones. In Q3 2012, Leap was right around 57% in smartphone sales. Similarly, they note that 61% of their voice customers were using smartphones, compared to 48% last year.

This is all on the news that, in addition to losing subscribers, Leap had a net loss of $185.4 million. This time last year, Leap was up $25 million on the quarter. Total revenue fell 10% year-over-year to $694 million as well. There was no earnings call, as is typical with companies facing a buyout or merger. Blackberry avoided the same earnings call scrutiny on the heels of their announced buyout from Fairfax.