TDS reports second quarter 2026 results

PR Newswire
Today at 11:30am UTC

TDS reports second quarter 2026 results

PR Newswire

CHICAGO, Aug. 7, 2026

TDS Telecom and Array both update guidance for 2026

CHICAGO, Aug. 7, 2026 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on August 7, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE: TDS) reported second quarter 2026 operating results.

"I am pleased with the progress our teams continue to make in executing our strategic objectives," said Walter Carlson, TDS President and CEO. "During the quarter, TDS Telecom expanded its marketable fiber service footprint by approximately 66,000 addresses and increased its fiber service address guidance for the year. Array delivered another quarter of sequential tower tenancy growth, highlighting the value of our assets.  In addition, Array completed the previously announced spectrum sale to Verizon, now having completed transactions to monetize virtually all of its spectrum outside of the C-Band."

Highlights*

TDS Telecom

  • Executing on fiber broadband strategy
    • Delivered approximately 66,000 marketable fiber service addresses
    • Grew fiber connections —15,100 residential fiber net additions
  • Service revenue down 6%
    • Residential fiber revenue growth of 13% more than offset by impacts of divestitures and continued legacy declines
  • Updated 2026 Guidance
    • Current service address delivery momentum drives increase in 2026 guidance to 250,000 - 300,000 marketable fiber service addresses, increased capital expenditure guidance to $625 million - $675 million
    • Updated 2026 Financial guidance
      • Revenues of $1,000 million to $1,025 million
      • Adjusted EBITDA of $310 million to $330 million
      • Adjusted OIBDA of $300 million to $320 million

Array

  • Optimizing tower operations
    • Site rental revenues grew 95% year over year
    • Delivered consecutive quarter over quarter tower tenancy growth
  • Continuing to close pending sales of wireless spectrum
    • Closed on sale of certain 700 MHz wireless spectrum licenses for total proceeds of $74.8 million on May 5, 2026
    • Closed on sale of certain 600 MHz wireless spectrum licenses for total proceeds of $86.4 million on May 12, 2026
    • Closed on sale of certain cellular and other spectrum licenses for total proceeds of $1 billion on June 1, 2026
    • Issued special dividend of $11 per common share on June 25, 2026
  • Updated 2026 Guidance
    • Narrowed Revenue range to $205 million - $215 million on higher interim site revenue
    • Increased Adjusted EBITDA range to $220 million - $235 million
    • Capital expenditures range remains unchanged at $25 million - $35 million

*Comparisons are 2Q'25 to 2Q'26 unless otherwise noted

TDS reported total operating revenues from continuing operations of $309.3 million for the second quarter of 2026, versus $298.5 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and diluted earnings (loss) per share from continuing operations were $260.6 million and $2.24, respectively, for the second quarter of 2026 compared to $(6.0) million and $(0.05), respectively, in the same period one year ago. 

Recent Development

On May 7, 2026, TDS delivered to the Array Board of Directors a letter setting forth a non-binding proposal to acquire all of the outstanding Array Common Shares that are not owned by TDS (the "Array Proposal"). A special committee of independent and disinterested directors of the Array Board of Directors has been formed to evaluate this proposal. For additional information on the Array Proposal, see TDS' Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on May 8, 2026.

2026 Estimated Results

TDS' current estimates of full-year 2026 results for TDS Telecom and Array are shown below. Such estimates represent management's view as of August 7, 2026 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

TDS Telecom

Previous

Current

(Dollars in millions)



Total operating revenues

$1,015-$1,055

$1,000-$1,025

Adjusted OIBDA1 (Non-GAAP)

$300-$340

$300-$320

Adjusted EBITDA1 (Non-GAAP)

$310-$350

$310-$330

Capital expenditures

$550-$600

$625-$675


Array

Previous

Current

(Dollars in millions)



Total operating revenues

$200-$215

$205-$215

Adjusted OIBDA1 (Non-GAAP)

$50-$65

$60-$75

Adjusted EBITDA1 (Non-GAAP)

$200-$215

$220-$235

Capital expenditures

$25-$35

Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income (loss) before income taxes. In providing 2026 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.


2026 Estimated Results


TDS

Telecom


Array

(Dollars in millions)




Net income from continuing operations (GAAP)

N/A


N/A

Add back:




Income tax expense

N/A


N/A

Income (loss) before income taxes (GAAP)

($15)-$5


$775-$790

Add back:




Interest expense

—


45

Depreciation, amortization and accretion expense

325


50

EBITDA (Non-GAAP)1

$310-$330


$870-$885

Add back or deduct:




(Gain) loss on license sales and exchanges, net

—


(585)

Short-term imputed spectrum lease income

—


(65)

Adjusted EBITDA (Non-GAAP)1

$310-$330


$220-$235

Deduct:




Equity in earnings of unconsolidated entities

—


145

Interest and dividend income

5


15

Other, net

5


—

Adjusted OIBDA (Non-GAAP)1

$300-$320


$60-$75

 


Actual Results


Six Months Ended

June 30, 2026


Year Ended

December 31, 2025


TDS

Telecom


Array


TDS

Telecom


Array

(Dollars in millions)








Net income (loss) from continuing operations (GAAP)

$           (4)


$         517


$           28


$         172

Add back:








Income tax expense (benefit)

(4)


168


10


(31)

Income (loss) before income taxes (GAAP)

$           (8)


$         686


$           38


$         141

Add back:








Interest expense

—


18


(7)


28

Depreciation, amortization and accretion expense

146


27


300


48

EBITDA (Non-GAAP)1

$         138


$         731


$         331


$         218

Add back or deduct:








Expenses related to strategic alternatives review

—


8


6


2

(Gain) loss on impairment of intangible assets

—


—


1


48

(Gain) loss on asset disposals, net

6


5


15


2

(Gain) loss on sale of business and other exit costs, net

2


—


(23)


—

(Gain) loss on license sales and exchanges, net

(2)


(566)


—


(6)

Short-term imputed spectrum lease income

—


(58)


—


(69)

Adjusted EBITDA (Non-GAAP)1

$         144


$         119


$         330


$         194

Deduct:








Equity in earnings of unconsolidated entities

—


75


—


174

Interest and dividend income

2


11


6


19

Other, net

3


—


5


—

Adjusted OIBDA (Non-GAAP)1

$         140


$           33


$         319


$            1


Numbers may not foot due to rounding.


1

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income from continuing operations adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS' operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities.

Conference Call Information
TDS will hold a conference call on August 7, 2026 at 9:00 a.m. CT.

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. 

About TDS
Telephone and Data Systems, Inc. (TDS) provides broadband, video, voice and wireless services through its TDS Telecom business.  Array leases tower space to tenants and provides ancillary services, holds noncontrolling interests in primarily wireless operating companies and holds certain wireless spectrum licenses. Founded in 1969, TDS is headquartered in Chicago.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release about Telephone and Data Systems, Inc., including its subsidiaries Array and TDS Telecom, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether any transaction related to the TDS non-binding proposal delivered to the Array Board of Directors to acquire all of the outstanding Array Common Shares not owned by TDS will be accepted, rejected, consummated, or abandoned; whether any such transaction, if accepted or completed, will result in additional value for shareholders and whether the process could result in adverse effects on either business; the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; whether the additional spectrum license sales to T-Mobile are consummated; whether Array can monetize its remaining spectrum assets; intense competition, including fixed wireless and satellite; economic and business risks associated with fixed rate annual escalators on colocation revenue contracts; Array's reliance on a small number of tenants for a substantial portion of its revenue; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; TDS' inability to protect rights to the land under its towers; changes in demand, consumer preferences and perceptions, price competition, or cost; advances or changes in technology; impacts of costs, integration issues or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and Array indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities that Array does not control; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and extreme weather events. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.

For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com 
TDS Telecom: www.tdstelecom.com 
Array: investors.arrayinc.com 

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

6/30/2026


3/31/2026


12/31/2025


9/30/2025


6/30/2025

Residential connections










Broadband










Incumbent Fiber

134,300


130,200


127,300


123,500


121,200

Incumbent Copper

77,700


84,200


91,200


102,000


106,500

Expansion Fiber

179,600


168,500


160,600


150,700


141,800

Cable

176,100


179,100


182,800


186,100


188,200

Total Broadband

567,700


561,900


561,900


562,400


557,700

Video

105,600


107,200


111,500


114,300


116,500

Voice

209,300


216,900


228,900


242,200


248,700

Wireless

8,100


5,300


3,300


2,200


1,600

Total Residential connections

890,700


891,400


905,600


921,100


924,500

Commercial connections

163,600


166,500


173,900


180,300


184,300

Total connections1

1,054,200


1,058,000


1,079,500


1,101,300


1,108,800











Total residential fiber net adds

15,100


10,900


15,100


11,200


10,300

Total residential broadband net adds

5,700


100


4,500


4,600


3,900











Residential fiber churn2

1.2 %


1.3 %


1.2 %


1.5 %


1.1 %

Total residential broadband churn

1.7 %


1.8 %


1.6 %


1.7 %


1.5 %











Residential revenue per connection3

$      66.50


$      66.41


$      65.95


$      65.66


$     65.85











Capital expenditures (thousands)

$  179,197


$  125,963


$  154,904


$  102,429


$   90,187


Numbers may not foot due to rounding.


1

Q2 2025 total connections include 12,900 connections, including 5,300 residential broadband connections, that were part of subsequent divestitures. 



2

Residential fiber churn represents the percentage of incumbent and expansion fiber connections that disconnected service each month. These rates represent the average monthly churn rate for each respective period.



3

Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.

 

Array Digital Infrastructure, Inc.

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

6/30/2026


3/31/2026


12/31/2025


9/30/2025

Capital expenditures from continuing operations (thousands)

$       3,895


$       8,645


$      12,933


$       7,927

Owned towers

4,456


4,452


4,450


4,449

Number of colocations1

4,362


4,290


4,572


4,517

Tower tenancy rate2

0.98


0.96


1.03


1.02



1

Represents instances where a third-party leases space on a company-owned tower. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless due to the low probability of fulfilling its lease commitments.



2

Calculated as total number of colocations divided by total number of towers. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless due to the low probability of fulfilling its lease commitments. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94 for December 31, 2025 and September 30, 2025, respectively.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)














Three Months Ended

June 30,


Six Months Ended

June 30,


2026


2025


2026

vs. 2025


2026


2025


2026

vs. 2025

(Dollars and shares in thousands, except per share amounts)












Operating revenues












TDS Telecom

$ 248,406


$ 264,931


(6) %


$ 497,978


$ 522,291


(5) %

Array

54,070


28,529


90 %


106,082


55,513


91 %

All Other1

6,805


5,081


34 %


14,671


11,170


31 %

Total operating revenues

309,281


298,541


4 %


618,731


588,974


5 %

Operating expenses












TDS Telecom

256,684


250,959


2 %


509,988


508,460


—

Array

(345,193)


46,719


N/M


(453,966)


103,329


N/M

All Other1

24,578


13,170


87 %


45,679


23,426


95 %

Total operating expenses

(63,931)


310,848


N/M


101,701


635,215


(84) %

Operating income (loss)












TDS Telecom

(8,278)


13,972


N/M


(12,010)


13,831


N/M

Array

399,263


(18,190)


N/M


560,048


(47,816)


N/M

All Other1

(17,773)


(8,089)


N/M


(31,008)


(12,256)


N/M

Total operating income (loss)

373,212


(12,307)


N/M


517,030


(46,241)


N/M

Other income (expense)












Equity in earnings of unconsolidated entities

37,126


42,952


(14) %


79,028


79,471


(1) %

Interest and dividend income

19,631


6,110


N/M


33,417


12,381


N/M

Interest expense

(11,388)


(29,166)


61 %


(16,709)


(53,074)


69 %

Short-term imputed spectrum lease income

23,770


—


N/M


57,970


—


N/M

Other, net

5,346


2,395


N/M


10,796


5,117


N/M

Total other income

74,485


22,291


N/M


164,502


43,895


N/M













Income (loss) before income taxes

447,697


9,984


N/M


681,532


(2,346)


N/M

Income tax expense (benefit)

106,410


(4,224)


N/M


160,819


(12,347)


N/M

Net income from continuing operations

341,287


14,208


N/M


520,713


10,001


N/M

Less: Net income from continuing operations
attributable to noncontrolling interests, net of tax

63,332


2,943


N/M


96,143


4,667


N/M

Net income from continuing operations attributable
to TDS shareholders

277,955


11,265


N/M


424,570


5,334


N/M













Net income from discontinued operations

25,071


3,578


N/M


22,683


19,749


15 %

Less: Net income from discontinued operations
attributable to noncontrolling interests, net of tax

4,660


3,272


42 %


4,292


6,041


(29) %

Net income from discontinued operations
attributable to TDS shareholders

20,411


306


N/M


18,391


13,708


34 %













Net income

366,358


17,786


N/M


543,396


29,750


N/M

Less: Net income attributable to noncontrolling
interests, net of tax

67,992


6,215


N/M


100,435


10,708


N/M

Net income attributable to TDS shareholders

298,366


11,571


N/M


442,961


19,042


N/M

TDS Preferred Share dividends

17,306


17,306


—


34,613


34,613


—

Net income (loss) attributable to TDS common
shareholders

$ 281,060


$    (5,735)


N/M


$ 408,348


$  (15,571)


N/M













Basic weighted average shares outstanding

114,500


115,229


(1) %


114,193


114,908


(1) %













Basic earnings (loss) per share from continuing
operations attributable to TDS common
shareholders

$       2.28


$      (0.05)


N/M


$       3.42


$      (0.25)


N/M

Basic earnings from discontinued operations
attributable to TDS common shareholders

$       0.17


$          —


N/M


$       0.16


$       0.11


35 %

Basic earnings (loss) per share attributable to TDS
common shareholders

$       2.45


$      (0.05)


N/M


$       3.58


$      (0.14)


N/M













Diluted weighted average shares outstanding

116,291


115,229


1 %


116,465


114,908


1 %













Diluted earnings (loss) per share from
continuing operations attributable to TDS common
shareholders

$       2.24


$      (0.05)


N/M


$       3.35


$      (0.26)


N/M

Diluted earnings from discontinued operations
attributable to TDS common shareholders

$       0.18


$          —


N/M


$       0.15


$       0.12


32 %

Diluted earnings (loss) per share attributable to
TDS common shareholders

$       2.42


$      (0.05)


N/M


$       3.50


$      (0.14)


N/M


N/M - Percentage change not meaningful.


1

Consists of corporate and other operations and intercompany eliminations.

 

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)


Six Months Ended

June 30,


2026


2025

(Dollars in thousands)




Cash flows from operating activities




Net income

$     543,396


$      29,750

Net income from discontinued operations

22,683


19,749

Net income from continuing operations

520,713


10,001

Add (deduct) adjustments to reconcile net income to net cash flows from operating activities




Depreciation, amortization and accretion

174,720


170,349

Bad debts expense

5,122


2,994

Stock-based compensation expense

8,428


17,502

Deferred income taxes, net

(130,935)


(14,312)

Equity in earnings of unconsolidated entities

(79,028)


(79,471)

Distributions from unconsolidated entities

66,553


87,938

(Gain) loss on asset disposals, net

10,579


7,795

(Gain) loss on sale of business and other exit costs, net

1,562


(8,877)

(Gain) loss on license sales and exchanges, net

(553,158)


(4,800)

Other operating activities

487


2,619

Changes in assets and liabilities from operations




Accounts receivable

(3,896)


(17,607)

Inventory

287


212

Accounts payable

6,732


415

Customer deposits and deferred revenues

(57,165)


(724)

Accrued taxes

232,212


(1,911)

Accrued interest

(563)


(604)

Other assets and liabilities

(51,585)


(45,560)

Net cash provided by operating activities - continuing operations

151,065


125,959

Net cash provided by (used in) operating activities - discontinued operations

(28,037)


481,307

Net cash provided by operating activities

123,028


607,266





Cash flows from investing activities




Cash paid for additions to property, plant and equipment

(317,919)


(150,482)

Cash paid for licenses

—


(4,145)

Cash received from divestitures

2,188,235


24,162

Other investing activities

1,925


2,512

Net cash provided by (used in) investing activities - continuing operations

1,872,241


(127,953)

Net cash used in investing activities - discontinued operations

—


(135,561)

Net cash provided by (used in) investing activities

1,872,241


(263,514)





Cash flows from financing activities




Issuance of long-term debt

1,300


—

Repayment of long-term debt

(150,729)


(17,076)

Tax withholdings, net of cash receipts, for TDS stock-based compensation awards

(34,219)


(24,483)

Tax withholdings, net of cash receipts, for Array stock-based compensation awards

(2,068)


(35,250)

Repurchase of Array Common Shares

—


(21,360)

Dividends paid to TDS shareholders

(43,771)


(43,830)

Array dividends paid to noncontrolling public shareholders

(332,480)


—

Payment of debt issuance costs

—


(2,467)

Distributions to noncontrolling interests

(3,540)


(2,391)

Cash paid for software license agreements

(1,180)


(839)

Payments to acquire additional interest in subsidiaries

(593)


—

Other financing activities

73


(314)

Net cash used in financing activities - continuing operations

(567,207)


(148,010)

Net cash used in financing activities - discontinued operations

—


(19,702)

Net cash used in financing activities

$   (567,207)


$   (167,712)





Net increase in cash, cash equivalents and restricted cash

$  1,428,062


$    176,040





Cash, cash equivalents and restricted cash




Beginning of period

770,150


383,222

End of period

$  2,198,212


$    559,262

 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)


ASSETS






June 30, 2026


December 31, 2025

(Dollars in thousands)




Current assets




Cash and cash equivalents

$             2,194,014


$                 765,952

Accounts receivable, net

105,830


109,981

Inventory, net

3,775


4,062

Prepaid expenses

33,697


28,206

Income taxes receivable

—


1,292

Other current assets

13,314


13,976

Total current assets

2,350,630


923,469





Non-current assets held for sale

47,475


1,598,131





Licenses

1,595,349


1,642,972





Other intangible assets, net

117,108


131,673





Investments in unconsolidated entities

475,077


461,922





Property, plant and equipment, net

3,123,477


2,965,455





Operating lease right-of-use assets

506,665


515,081





Other assets and deferred charges

167,559


159,600





Total assets

$             8,383,340


$              8,398,303

 

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)


LIABILITIES AND EQUITY






June 30, 2026


December 31, 2025

(Dollars in thousands, except per share amounts)




Current liabilities




Current portion of long-term debt

$                    9,444


$                    5,274

Accounts payable

130,314


115,822

Customer deposits and deferred revenues

66,280


125,140

Accrued interest

2,273


2,836

Accrued taxes

260,113


46,721

Accrued compensation

40,335


56,774

Short-term operating lease liabilities

27,634


26,180

Current liabilities of discontinued operations

24,856


20,242

Other current liabilities

54,387


41,322

Total current liabilities

615,636


440,311





Deferred liabilities and credits




Deferred income tax liability, net

600,947


743,633

Long-term operating lease liabilities

541,268


549,617

Other deferred liabilities and credits

552,629


574,025





Long-term debt, net

670,646


823,364





Total equity

5,402,214


5,267,353





Total liabilities and equity

$             8,383,340


$             8,398,303

 

Balance Sheet Highlights

(Unaudited)






June 30, 2026


TDS




TDS
Corporate


Intercompany


TDS


Telecom


Array


& Other


Eliminations


Consolidated

(Dollars in thousands)










Cash and cash equivalents

$       222,844


$       416,436


$    1,780,879


$       (226,145)


$     2,194,014











Licenses and other intangible assets

$       117,260


$    1,594,649


$              548


$                  —


$     1,712,457

Investment in unconsolidated entities

3,947


421,607


60,838


(11,315)


475,077


$       121,207


$    2,016,256


$         61,386


$         (11,315)


$     2,187,534











Property, plant and equipment, net

$    2,733,837


$       374,700


$         14,940


$                  —


$     3,123,477











Long-term debt, net:










Current portion

$              164


$           8,125


$           1,155


$                  —


$            9,444

Non-current portion

2,765


666,757


1,124


—


670,646


$           2,929


$       674,882


$           2,279


$                  —


$        680,090

 

TDS Telecom Highlights

(Unaudited)














Three Months Ended

June 30,


Six Months Ended

June 30,


2026


2025


2026

vs. 2025


2026


2025


2026

vs. 2025

(Dollars in thousands)












Operating revenues












Residential












Incumbent

$  75,868


$  84,665


(10) %


$ 153,160


$ 170,259


(10) %

Expansion

45,656


36,580


25 %


89,218


70,986


26 %

Cable

56,240


62,174


(10) %


113,982


126,022


(10) %

Total residential

177,764


183,419


(3) %


356,360


367,267


(3) %

Commercial

32,776


34,617


(5) %


65,571


69,251


(5) %

Wholesale

37,817


46,704


(19) %


75,934


85,381


(11) %

Total service revenues

248,357


264,740


(6) %


497,865


521,899


(5) %

Equipment revenues

49


191


(74) %


113


392


(71) %

Total operating revenues

248,406


264,931


(6) %


497,978


522,291


(5) %













Cost of operations (excluding Depreciation,
amortization and accretion reported below)

100,583


97,049


4 %


197,765


198,013


—

Cost of equipment and products

118


116


2 %


229


380


(40) %

Selling, general and administrative

79,038


82,555


(4) %


160,098


165,702


(3) %

Depreciation, amortization and accretion

73,585


73,137


1 %


146,142


144,577


1 %

(Gain) loss on asset disposals, net

4,960


6,206


(20) %


5,792


7,868


(26) %

(Gain) loss on sale of business and other exit costs, net

—


(8,104)


N/M


1,562


(8,080)


N/M

(Gain) loss on license sales and exchanges, net

(1,600)


—


N/M


(1,600)


—


N/M

Total operating expenses

256,684


250,959


2 %


509,988


508,460


—













Operating income (loss)

$   (8,278)


$  13,972


N/M


$  (12,010)


$   13,831


N/M


N/M - Percentage change not meaningful

 

Array Digital Infrastructure, Inc. Highlights

(Unaudited)



Three Months Ended

June 30,


Six Months Ended
June 30,


2026


2025


2026
vs. 2025


2026


2025


2026
vs. 2025

(Dollars in thousands)












Operating revenues












Site rental

$   53,175


$  27,230


95 %


$ 104,199


$  53,825


94 %

Services

895


1,299


(31) %


1,883


1,688


12 %

Total operating revenues

54,070


28,529


90 %


106,082


55,513


91 %













Operating expenses












Cost of operations (excluding Depreciation, amortization
and accretion reported below)

23,497


19,396


21 %


45,106


35,687


26 %

Selling, general and administrative

22,906


19,337


18 %


35,651


48,537


(27) %

Depreciation, amortization and accretion

14,428


11,999


20 %


27,032


23,992


13 %

(Gain) loss on asset disposals, net

3,809


(313)


N/M


4,713


(87)


N/M

(Gain) loss on license sales and exchanges, net

(409,833)


(3,700)


N/M


(566,468)


(4,800)


N/M

Total operating expenses

(345,193)


46,719


N/M


(453,966)


103,329


N/M













Operating income (loss)

$ 399,263


$ (18,190)


N/M


$ 560,048


$ (47,816)


N/M


N/M - Percentage change not meaningful

 

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)


Free Cash Flow



Six Months Ended

June 30,

TDS CONSOLIDATED

2026


2025

(Dollars in thousands)




Cash flows from operating activities - continuing operations (GAAP)

$         151,065


$         125,959

Cash paid for additions to property, plant and equipment

(317,919)


(150,482)

Cash paid for software license agreements

(1,180)


(839)

Free cash flow - continuing operations (Non-GAAP)1

$        (168,034)


$         (25,362)



1

Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.

Telephone and Data Systems, Inc.
EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations
(Unaudited)

EBITDA, Adjusted EBITDA and Adjusted OIBDA

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income (loss) before income taxes.


Three Months Ended

June 30,


Six Months Ended

June 30,

TDS Telecom

2026


2025


2026


2025

(Dollars in thousands)








Net income (loss) (GAAP)

$       (4,993)


$       16,084


$        (3,946)


$        19,611

Add back:








Income tax expense (benefit)

(1,909)


2,174


(3,998)


3,309

Income (loss) before income taxes (GAAP)

(6,902)


18,258


(7,944)


22,920

Add back:








Interest expense

332


(960)


175


(2,424)

Depreciation, amortization and accretion

73,585


73,137


146,142


144,577

EBITDA (Non-GAAP)

67,015


90,435


138,373


165,073

Add back or deduct:








Expenses related to strategic alternatives review

—


—


87


—

(Gain) loss on asset disposals, net

4,960


6,206


5,792


7,868

(Gain) loss on sale of business and other exit costs, net

—


(8,104)


1,562


(8,080)

(Gain) loss on license sales and exchanges, net

(1,600)


—


(1,600)


—

Adjusted EBITDA (Non-GAAP)

70,375


88,537


144,214


164,861

Deduct:








Interest and dividend income

463


1,693


1,608


3,094

Other, net

1,245


1,633


2,633


3,571

Adjusted OIBDA (Non-GAAP)

$       68,667


$       85,211


$      139,973


$      158,196

 


Three Months Ended

June 30,


Six Months Ended

June 30,

Array

2026


2025


2026


2025

(Dollars in thousands)








Net income from continuing operations (GAAP)

$      337,447


$       15,099


$      517,472


$       20,583

Add back:








Income tax expense

115,870


8,415


168,268


8,222

Income before income taxes (GAAP)

453,317


23,514


685,740


28,805

Add back:








Interest expense

10,860


3,711


18,040


7,378

Depreciation, amortization and accretion

14,428


11,999


27,032


23,992

EBITDA (Non-GAAP)

478,605


39,224


730,812


60,175

Add back or deduct:








Expenses related to strategic alternatives review

7,391


715


7,578


1,860

(Gain) loss on asset disposals, net

3,809


(313)


4,713


(87)

(Gain) loss on license sales and exchanges, net

(409,833)


(3,700)


(566,468)


(4,800)

Short-term imputed spectrum lease income

(23,770)


—


(57,970)


—

Adjusted EBITDA (Non-GAAP)

56,202


35,926


118,665


57,148

Deduct:








Equity in earnings of unconsolidated entities

34,726


41,714


75,135


77,641

Interest and dividend income

6,431


3,701


10,653


6,358

Other, net

(13)


—


(26)


—

Adjusted OIBDA (Non-GAAP)

$        15,058


$        (9,489)


$        32,903


$      (26,851)

Array Adjusted Free Cash Flow (AFCF)

AFCF is a non-GAAP measure defined as Net income from continuing operations adjusted for the items set forth in the reconciliation below. AFCF is not a measure of financial performance under GAAP and should not be considered as an alternative to Net income from continuing operations or as an indicator of cash flows.

Management believes AFCF is a useful measure of Array's cash generated from operations and its noncontrolling investment interests. The following table reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure is presented following the sale of Array's wireless operations to T-Mobile on August 1, 2025, at which time the primary business operations for Array changed from providing wireless communications services to a standalone tower company.


Six Months Ended
June 30, 2026

(Dollars in thousands)


Net income from continuing operations - Array (GAAP)

$                517,472

Add back or deduct:


Income tax expense

168,268

Cash paid for income taxes

(78,623)

Stock-based compensation expense

540

Short-term imputed spectrum lease income

(57,970)

Amortization of deferred debt charges

655

Equity in earnings of unconsolidated entities

(75,135)

Distributions from unconsolidated entities

66,553

(Gain) loss on license sales and exchanges, net

(566,468)

(Gain) loss on asset disposals, net

4,713

Depreciation, amortization and accretion

27,032

Expenses related to strategic alternatives review

7,578

Straight line and other non-cash revenue adjustments

(8,310)

Straight line expense adjustment

2,811

Maintenance and other capital expenditures

(2,511)

Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP)

$                    6,605

 

Cision View original content:https://www.prnewswire.com/news-releases/tds-reports-second-quarter-2026-results-302845735.html

SOURCE Telephone and Data Systems, Inc.