TDS Telecom and Array both reaffirm guidance for 2026
CHICAGO, May 8, 2026 /PRNewswire/ --
As previously announced, TDS will hold a teleconference on May8, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page ofinvestors.tdsinc.com.
Telephone and Data Systems, Inc. (NYSE: TDS) reported first quarter 2026 operating results.
"TDS Telecom and Array entered 2026 with momentum," said Walter Carlson, TDS President and CEO. "Both business units are making meaningful progress toward their strategic objectives. During the quarter, TDS Telecom expanded its marketable fiber service footprint to 1.1 million addresses, while Array continued to optimize its operations and secure healthy application volume."
"As part of our fiber growth strategy, we recently announced the acquisition of Granite State Communications in New Hampshire," continued Carlson. "Located adjacent to our existing operations, Granite State further expands our fiber footprint, adding approximately 11,000 additional fiber service addresses."
Highlights*
TDS Telecom
- Executing on fiber broadband strategy
- Delivered 40,000 marketable fiber services addresses in Q1 2026
- Grew fiber connections --10,900 residential fiber net additions
- TDS Telecom revenues down 3%, reduced by $6 million due to divestitures of non-strategic assets
- Expanding fiber footprint
- Entered into agreement to acquire Granite State Communications in New Hampshire -- 11,000 fiber service addresses; transaction expected to close in the third quarter of 2026
Array
- Optimizing tower operations
- Site rental revenues grew 92% year over year
- Excluding the impact of DISH, continuing to grow tower tenancy and secure healthy application volume
- 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
*Comparisons are 1Q'25 to 1Q'26 unless otherwise noted.
TDS reported total operating revenues from continuing operations of $309.5 million for the first quarter of 2026, versus $290.4 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 $129.3 million and $1.11, respectively, for the first quarter of 2026 compared to $(23.2) million and $(0.20), respectively, in the same period one year ago.
On January 13, 2026, Array closed on the sale of certain 3.45 GHz and 700 MHz wireless spectrum licenses for $1,018.0 million and TDS recorded a book gain of $150.9 million ($114.7 million net of tax expense) during the first quarter of 2026.
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 May 8, 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 Unchanged
Adjusted OIBDA1 (Non-GAAP)
$300-$340 Unchanged
Adjusted EBITDA(1) (Non-GAAP)
$310-$350 Unchanged
Capital expenditures
$550-$600 Unchanged
Array Previous Current
(Dollars in millions)
Total operating revenues
$200-$215 Unchanged
Adjusted OIBDA1 (Non-GAAP)
$50-$65 Unchanged
Adjusted EBITDA1 (Non-GAAP)
$200-$215 Unchanged
Capital expenditures
$25-$35 Unchanged
The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income 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 Array
Telecom
(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)-$25
$770-$785
Add back:
Interest expense 45
Depreciation, amortization and accretion expense 325 50
EBITDA (Non-GAAP)(1)
$310-$350
$865-$880
Add back or deduct:
(Gain) loss on license sales and exchanges, net (590)
Short-term imputed spectrum lease income (75)
Adjusted EBITDA (Non-GAAP)(1)
$310-$350
$200-$215
Deduct:
Equity in earnings of unconsolidated entities 140
Interest and dividend income 5 10
Other, net 5
Adjusted OIBDA (Non-GAAP)(1)
$300-$340
$50-$65
Actual Results
Three Months Ended Year Ended
March 31, 2026 December 31, 2025
TDS Array TDS Array
Telecom Telecom
(Dollars in millions)
Net income from continuing operations (GAAP) $1 $180 $28 $172
Add back:
Income tax expense (benefit) (2) 52 10 (31)
Income (loss) before income taxes (GAAP) $(1) $232 $38 $141
Add back:
Interest expense 7 (7) 28
Depreciation, amortization and accretion expense 73 13 300 48
EBITDA (Non-GAAP)(1) $71 $252 $331 $218
Add back or deduct:
Expenses related to strategic alternatives review 6 2
Loss on impairment of intangible assets 1 48
(Gain) loss on asset disposals, net 1 1 15 2
(Gain) loss on sale of business and other exit costs, net 2 (23)
(Gain) loss on license sales and exchanges, net (157) (6)
Short-term imputed spectrum lease income (34) (69)
Adjusted EBITDA (Non-GAAP)(1) $74 $62 $330 $194
Deduct:
Equity in earnings of unconsolidated entities 40 174
Interest and dividend income 1 4 6 19
Other, net 1 5
Adjusted OIBDA (Non-GAAP)(1) $71 $18 $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 May 8, 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, 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 TDS or its shareholders and whether the process could result in adverse impacts on TDS' businesses; 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 and the previously announced spectrum license sale to Verizon are consummated; whether Array can monetize its remaining spectrum assets; intense competition; 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 revenues; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; inability to protect TDS' real estate rights, with respect to land leases; 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 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025
Residential connections
Broadband
Incumbent Fiber 130,200 127,300 123,500 121,200 119,700
Incumbent Copper 84,200 91,200 102,000 106,500 112,600
Expansion Fiber 168,500 160,600 150,700 141,800 133,200
Cable 179,100 182,800 186,100 188,200 190,200
Total Broadband 561,900 561,900 562,400 557,700 555,800
Video 107,200 111,500 114,300 116,500 118,700
Voice 216,900 228,900 242,200 248,700 256,900
Wireless 5,300 3,300 2,200 1,600 900
Total Residential connections 891,400 905,600 921,100 924,500 932,300
Commercial connections 166,500 173,900 180,300 184,300 187,600
Total connections
(1) 1,058,000 1,079,500 1,101,300 1,108,800 1,119,900
Total residential fiber net adds 10,900 15,100 11,200 10,300 8,300
Total residential broadband net adds 100 4,500 4,600 3,900 2,800
Residential fiber churn
(2) 1.3 % 1.2 % 1.5 % 1.1 % 0.9 %
Total residential broadband churn 1.8 % 1.6 % 1.7 % 1.5 % 1.3 %
Residential revenue per connection
(3) $66.41 $65.95 $65.66 $65.85 $65.67
Capital expenditures (thousands) $125,963 $154,904 $102,429 $90,187 $58,870
Numbers may not foot due to rounding.
1
Divestitures in 2025 resulted in a decrease of 19,000 connections, including 7,500 residential broadband connections.
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 3/31/2026 12/31/2025 9/30/2025
Capital expenditures from continuing operations (thousands) $8,645 $12,933 $7,927
Owned towers 4,452 4,450 4,449
Number of colocations(1) 4,290 4,572 4,517
Tower tenancy rate(2) 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
collection on outstanding amounts.
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
collection on outstanding amounts. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94, respectively in prior
periods.
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
March 31,
2026 2025 2026
vs.
2025
(Dollars and shares in thousands, except per share amounts)
Operating revenues
TDS Telecom $249,572 $257,360 (3) %
Array 52,012 26,984 93 %
All Other(1) 7,866 6,089 29 %
Total operating revenues 309,450 290,433 7 %
Operating expenses
TDS Telecom 253,304 257,501 (2) %
Array (108,773) 56,611 N/M
All other(1) 21,101 10,255 N/M
Total operating expenses 165,632 324,367 (49) %
Operating income (loss)
TDS Telecom (3,732) (141) N/M
Array 160,785 (29,627) N/M
All Other(1) (13,235) (4,166) N/M
Total operating income (loss) 143,818 (33,934) N/M
Other income (expense)
Equity in earnings of unconsolidated entities 41,902 36,518 15 %
Interest and dividend income 13,786 6,270 N/M
Interest expense (5,321) (23,909) 78 %
Short-term imputed spectrum lease income 34,200 N/M
Other, net 5,450 2,725 N/M
Total other income 90,017 21,604 N/M
Income (loss) before income taxes 233,835 (12,330) N/M
Income tax expense (benefit) 54,408 (8,123) N/M
Net income (loss) from continuing operations 179,427 (4,207) N/M
Less: Net income from continuing operations attributable to noncontrolling interests, net of tax 32,813 1,724 N/M
Net income (loss) from continuing operations attributable to TDS shareholders 146,614 (5,931) N/M
Net income (loss) from discontinued operations (2,389) 16,171 N/M
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests, net of tax (369) 2,770 N/M
Net income (loss) from discontinued operations attributable to TDS shareholders (2,020) 13,401 N/M
Net income 177,038 11,964 N/M
Less: Net income attributable to noncontrolling interests, net of tax 32,444 4,494 N/M
Net income attributable to TDS shareholders 144,594 7,470 N/M
TDS Preferred Share dividends 17,306 17,306
Net income (loss) attributable to TDS common shareholders $127,288 $(9,836) N/M
Basic weighted average shares outstanding 113,882 114,582 (1) %
Basic earnings (loss) per share from continuing operations attributable to TDS common shareholders $1.14 $(0.20) N/M
Basic earnings (loss) per share from discontinued operations attributable to TDS common shareholders $(0.02) $0.11 N/M
Basic earnings (loss) per share attributable to TDS common shareholders $1.12 $(0.09) N/M
Diluted weighted average shares outstanding 116,651 114,582 2 %
Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders $1.11 $(0.20) N/M
Diluted earnings (loss) per share from discontinued operations attributable to TDS common shareholders $(0.02) $0.11 N/M
Diluted earnings (loss) per share attributable to TDS common shareholders $1.09 $(0.09) 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)
Three Months Ended
March 31,
2026 2025
(Dollars in thousands)
Cash flows from operating activities
Net income $177,038 $11,964
Net income (loss) from discontinued operations (2,389) 16,171
Net income (loss) from continuing operations 179,427 (4,207)
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities
Depreciation, amortization and accretion 85,943 84,329
Bad debts expense 3,383 1,380
Stock-based compensation expense 4,159 12,749
Deferred income taxes, net (38,825) (6,519)
Equity in earnings of unconsolidated entities (41,902) (36,518)
Distributions from unconsolidated entities 18,373 11,254
(Gain) loss on asset disposals, net 1,810 1,888
(Gain) loss on sale of business and other exit costs, net 1,562 (998)
(Gain) loss on license sales and exchanges, net (150,878) (1,100)
Other operating activities 42 1,141
Changes in assets and liabilities from operations
Accounts receivable 2,787 (12,530)
Inventory 316 (229)
Accounts payable (7,881) 1,844
Customer deposits and deferred revenues (33,593) 108
Accrued taxes 91,865 (264)
Accrued interest 580 343
Other assets and liabilities (49,074) (95,131)
Net cash provided by (used in) operating activities - continuing operations 68,094 (42,460)
Net cash provided by (used in) operating activities - discontinued operations (633) 228,069
Net cash provided by operating activities 67,461 185,609
Cash flows from investing activities
Cash paid for additions to property, plant and equipment (149,041) (64,391)
Cash paid for licenses - (2,072)
Cash received from divestitures 1,016,478 8,042
Other investing activities 396 80
Net cash provided by (used in) investing activities - continuing operations 867,833 (58,341)
Net cash used in investing activities - discontinued operations - (64,337)
Net cash provided by (used in) investing activities 867,833 (122,678)
Cash flows from financing activities
Issuance of long-term debt 1,300
Repayment of long-term debt (150,314) (7,736)
Tax withholdings, net of cash receipts, for TDS stock-based compensation awards (1,710) (5,639)
Tax withholdings, net of cash receipts, for Array stock-based compensation awards (1,373) (6,579)
Repurchase of Array Common Shares - (21,360)
Dividends paid to TDS shareholders (21,860) (21,896)
Array dividends paid to noncontrolling public shareholders (159,890)
Distributions to noncontrolling interests (638) (1,639)
Cash paid for software license agreements (166) (839)
Other financing activities 9 (452)
Net cash used in financing activities - continuing operations (334,642) (66,140)
Net cash used in financing activities - discontinued operations - (8,826)
Net cash used in financing activities $(334,642) $(74,966)
Net increase (decrease) in cash, cash equivalents and restricted cash $600,652 $(12,035)
Cash, cash equivalents and restricted cash
Beginning of period 770,150 383,222
End of period $1,370,802 $371,187
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
March 31, 2026 December 31,
2025
(Dollars in thousands)
Current assets
Cash and cash equivalents $1,366,604 $765,952
Accounts receivable, net 102,884 109,981
Inventory, net 3,746 4,062
Prepaid expenses 33,858 28,206
Income taxes receivable - 1,292
Other current assets 12,987 13,976
Total current assets 1,520,079 923,469
Non-current assets held for sale 737,437 1,598,131
Licenses 1,642,824 1,642,972
Other intangible assets, net 124,391 131,673
Investments in unconsolidated entities 486,132 461,922
Property, plant and equipment, net 3,025,322 2,965,455
Operating lease right-of-use assets 513,237 515,081
Other assets and deferred charges 161,905 159,600
Total assets $8,211,327 $8,398,303
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
March 31, 2026 December 31,
2025
(Dollars in thousands, except per share amounts)
Current liabilities
Current portion of long-term debt $7,515 $5,274
Accounts payable 97,068 115,822
Customer deposits and deferred revenues 84,165 125,140
Accrued interest 3,415 2,836
Accrued taxes 138,488 46,721
Accrued compensation 27,630 56,774
Short-term operating lease liabilities 26,297 26,180
Current liabilities of discontinued operations 20,242 20,242
Other current liabilities 38,855 41,322
Total current liabilities 443,675 440,311
Deferred liabilities and credits
Deferred income tax liability, net 699,150 743,633
Long-term operating lease liabilities 548,420 549,617
Other deferred liabilities and credits 584,484 574,025
Long-term debt, net 672,700 823,364
Total equity 5,262,898 5,267,353
Total liabilities and equity $8,211,327 $8,398,303
Balance Sheet Highlights
(Unaudited)
March 31, 2026
TDS TDS Intercompany TDS
Corporate
Telecom Array & Other Eliminations Consolidated
(Dollars in thousands)
Cash and cash equivalents $55,212 $253,638 $1,113,325 $(55,571) $1,366,604
Licenses and other intangible assets $124,543 $1,642,039 $633
$ - $1,767,215
Investment in unconsolidated entities 3,947 435,061 57,500 (10,376) 486,132
$128,490 $2,077,100 $58,133 $(10,376) $2,253,347
Property, plant and equipment, net $2,623,432 $386,727 $15,163
$ - $3,025,322
Long-term debt, net:
Current portion $162 $6,094 $1,259
$ - $7,515
Non-current portion 2,865 668,499 1,336 672,700
$3,027 $674,593 $2,595
$ - $680,215
TDS Telecom Highlights
(Unaudited)
Three Months Ended
March 31,
2026 2025 2026
vs.
2025
(Dollars in thousands)
Operating revenues
Residential
Incumbent $77,292 $85,594 (10) %
Expansion 43,562 34,406 27 %
Cable 57,742 63,847 (10) %
Total residential 178,596 183,847 (3) %
Commercial 32,795 34,634 (5) %
Wholesale 38,117 38,677 (1) %
Total service revenues 249,508 257,158 (3) %
Equipment revenues 64 202 (68) %
Total operating revenues 249,572 257,360 (3) %
Cost of operations (excluding Depreciation, amortization and accretion reported below) 97,182 100,964 (4) %
Cost of equipment and products 111 263 (58) %
Selling, general and administrative 81,061 83,148 (3) %
Depreciation, amortization and accretion 72,555 71,440 2 %
(Gain) loss on asset disposals, net 833 1,662 (50) %
(Gain) loss on sale of business and other exit costs, net 1,562 24 N/M
Total operating expenses 253,304 257,501 (2) %
Operating income (loss) $(3,732) $(141) N/M
N/M - Percentage change not meaningful
Array Digital Infrastructure, Inc. Highlights
(Unaudited)
Three Months Ended
March 31,
2026 2025 2026
vs. 2025
(Dollars in thousands)
Operating revenues
Site rental $51,024 $26,595 92 %
Services 988 389 N/M
Total operating revenues 52,012 26,984 93 %
Operating expenses
Cost of operations (excluding Depreciation and accretion reported below) 21,609 16,290 33 %
Selling, general and administrative 12,745 29,202 (56) %
Depreciation and accretion 12,604 11,993 5 %
(Gain) loss on asset disposals, net 904 226 N/M
(Gain) loss on license sales and exchanges, net (156,635) (1,100) N/M
Total operating expenses (108,773) 56,611 N/M
Operating income (loss) $160,785 $(29,627) N/M
N/M - Percentage change not meaningful
Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
Three Months Ended
March 31,
TDS CONSOLIDATED 2026 2025
(Dollars in thousands)
Cash flows from operating activities - continuing operations (GAAP) $68,094 $(42,460)
Cash paid for additions to property, plant and equipment (149,041) (64,391)
Cash paid for software license agreements (166) (839)
Free cash flow - continuing operations (Non-GAAP)(1) $(81,113) $(107,690)
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
March 31,
TDS Telecom 2026 2025
(Dollars in thousands)
Net income (GAAP) $1,047 $3,527
Add back or deduct:
Income tax expense (benefit) (2,089) 1,135
Income (loss) before income taxes (GAAP) (1,042) 4,662
Add back:
Interest expense (157) (1,465)
Depreciation, amortization and accretion expense 72,555 71,440
EBITDA (Non-GAAP) 71,356 74,637
Add back or deduct:
Expenses related to strategic alternatives review 87
(Gain) loss on asset disposals, net 833 1,662
(Gain) loss on sale of business and other exit costs, net 1,562 24
Adjusted EBITDA (Non-GAAP) 73,838 76,323
Deduct:
Interest and dividend income 1,145 1,401
Other, net 1,388 1,937
Adjusted OIBDA (Non-GAAP) $71,305 $72,985
Three Months Ended
March 31,
Array 2026 2025
(Dollars in thousands)
Net income from continuing operations (GAAP) $180,024 $5,483
Add back or deduct:
Income tax expense (benefit) 52,398 (192)
Income before income taxes (GAAP) 232,422 5,291
Add back:
Interest expense 7,180 3,667
Depreciation and accretion expense 12,604 11,993
EBITDA (Non-GAAP) 252,206 20,951
Add back or deduct:
Expenses related to strategic alternatives review 187 1,145
(Gain) loss on asset disposals, net 904 226
(Gain) loss on license sales and exchanges, net (156,635) (1,100)
Short-term imputed spectrum lease income (34,200)
Adjusted EBITDA (Non-GAAP) 62,462 21,222
Deduct:
Equity in earnings of unconsolidated entities 40,408 35,927
Interest and dividend income 4,223 2,658
Other, net (14)
Adjusted OIBDA (Non-GAAP) $17,845 $(17,363)
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.
Three Months Ended
March 31, 2026
(Dollars in thousands)
Net income from continuing operations - Array (GAAP) $180,024
Add back or deduct:
Income tax expense 52,398
Cash paid for income taxes (220)
Stock-based compensation expense 227
Short-term imputed spectrum lease income (34,200)
Amortization of deferred debt charges 319
Equity in earnings of unconsolidated entities (40,408)
Distributions from unconsolidated entities 18,373
(Gain) loss on license sales and exchanges, net (156,635)
(Gain) loss on asset disposals, net 904
Depreciation and accretion 12,604
Expenses related to strategic alternatives review 187
Straight line and other non-cash revenue adjustments (2,874)
Straight line expense adjustment 1,342
Maintenance and other capital expenditures (1,388)
Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP) $30,653
View original content:https://www.prnewswire.com/news-releases/tds-reports-first-quarter-2026-results-302766869.html
SOURCE Telephone and Data Systems, Inc.
John Toomey, Treasurer and Vice President - Corporate Relations, john.toomey@tdsinc.com, OR Karen Samples, Corporate Finance and Investor Relations Senior Manager, karen.samples@tdsinc.com