TDS Board authorizes incremental $250 million share repurchase plan
TDS Telecom updates guidance for 2026
CHICAGO, Nov. 6, 2026 /PRNewswire/ --
As previously announced, TDS will hold a teleconference on November 6, 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 third quarter 2026 operating results.
"We continue to make progress as our teams execute our strategic objectives," said Walter Carlson, TDS President and CEO. "During the quarter, TDS Telecom expanded its marketable fiber service footprint by approximately 76,000 addresses and grew fiber net adds by approximately 17,000. Array increased the number of colocations sequentially, highlighting the value of our assets, and continues to improve profitability. Additionally, I'm pleased to report that following TDS' withdrawal of the offer to acquire the minority interest in Array, TDS was in the market, and has repurchased nearly 15 million shares in 2026, returning over $520 million to shareholders."
Highlights*
TDS
- Returning value to shareholders
- Repurchased approximately 6 million TDS shares in the quarter at an average price per share of $36.65
- Continued to be in the market following the end of the quarter, virtually exhausting the existing authorization
- TDS Board approved incremental $250 million share repurchase authorization
- Provides future flexibility for the organization
TDS Telecom
- Executing on fiber broadband strategy
- Delivered approximately 76,000 marketable fiber service addresses
- Grew fiber connections with approximately 17,000 residential fiber net additions
- Service revenue down 3%
- Residential fiber revenue growth of 14% more than offset by impacts of divestitures and continued legacy declines
- Updated 2026 Financial Guidance
- Revenues of $990 million to $1,010 million
- Adjusted OIBDA of $280 million to $300 million
- Adjusted EBITDA of $290 million to $310 million
- Capital expenditures of approximately $750 million
Array
- Optimizing tower operations
- Site rental revenues grew 14% year over year
- Delivered consecutive quarter over quarter colocation growth
- Continuing to close pending sales of wireless spectrum
- Received regulatory approval for remaining pending transactions in October, closings remain subject to FCC finality and other customary closing conditions
- Reaffirming 2026 financial guidance
* Comparisons are 3Q'25 to 3Q'26 unless otherwise noted.
TDS reported total operating revenues from continuing operations of $306.7 million for the third quarter of 2026, versus $308.5 million for the same period one year ago. Net income attributable to TDS common shareholders and diluted earnings per share from continuing operations were $29.6 million and $0.26, respectively, for the third quarter of 2026 compared to $40.2 million and $0.33, 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"). On September 1, 2026, TDS announced that it is no longer pursuing the Array Proposal. For additional information, see TDS' Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on September 2, 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 November 6, 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
$1,000-$1,025
$990-$1,010
Adjusted OIBDA1 (Non-GAAP)
$300-$320
$280-$300
Adjusted EBITDA(1) (Non-GAAP)
$310-$330
$290-$310
Capital expenditures
$625-$675 Approx. $750
Array Previous Current
(Dollars in millions)
Total operating revenues
$205-$215 Unchanged
Adjusted OIBDA1 (Non-GAAP)
$60-$75 Unchanged
Adjusted EBITDA1 (Non-GAAP)
$220-$235 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 (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 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) ($40)-($20)
$775-$790
Add back:
Interest expense 45
Depreciation, amortization and accretion expense 330 50
EBITDA (Non-GAAP)(1)
$290-$310
$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)
$290-$310
$220-$235
Deduct:
Equity in earnings of unconsolidated entities 145
Interest and dividend income 5 15
Other, net 5
Adjusted OIBDA (Non-GAAP)(1)
$280-$300
$60-$75
Actual Results
Nine Months Ended Year Ended
September 30, 2026 December 31, 2025
TDS Array TDS Array
Telecom Telecom
(Dollars in millions)
Net income (loss) from continuing operations (GAAP) $(16) $587 $28 $172
Add back:
Income tax expense (benefit) (7) 138 10 (31)
Income (loss) before income taxes (GAAP) $(23) $726 $38 $141
Add back:
Interest expense 29 (7) 28
Depreciation, amortization and accretion expense 222 40 300 48
EBITDA (Non-GAAP)(1) $199 $795 $331 $218
Add back or deduct:
Expenses related to strategic alternatives review 4 14 6 2
(Gain) loss on impairment of intangible assets 1 48
(Gain) loss on asset disposals, net 7 6 15 2
(Gain) loss on sale of business and other exit costs, net 1 (23)
(Gain) loss on license sales and exchanges, net (2) (566) (6)
Short-term imputed spectrum lease income (66) (69)
Adjusted EBITDA (Non-GAAP)(1) $210 $182 $330 $194
Deduct:
Equity in earnings of unconsolidated entities 116 174
Interest and dividend income 4 15 6 19
Other, net 3 5
Adjusted OIBDA (Non-GAAP)(1) $203 $51 $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, expenses related to the strategic alternatives review, 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, expenses related to
the strategic alternatives review and short-term imputed spectrum lease income, 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 November 6, 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 TDS' 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: 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 TDS 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 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025
Residential connections
Broadband
Incumbent Fiber 144,100 134,300 130,200 127,300 123,500
Incumbent Copper 71,100 77,700 84,200 91,200 102,000
Expansion Fiber 191,200 179,600 168,500 160,600 150,700
Cable 173,200 176,100 179,100 182,800 186,100
Total Broadband 579,600 567,700 561,900 561,900 562,400
Video 104,000 105,600 107,200 111,500 114,300
Voice 204,100 209,300 216,900 228,900 242,200
Wireless 10,500 8,100 5,300 3,300 2,200
Total Residential connections 898,200 890,700 891,400 905,600 921,100
Commercial connections 162,600 163,600 166,500 173,900 180,300
Total connections
(1) 1,060,800 1,054,200 1,058,000 1,079,500 1,101,300
Total residential fiber net adds 16,700 15,100 10,900 15,100 11,200
Total residential broadband net adds 7,200 5,700 100 4,500 4,600
Residential fiber churn
(2) 1.3 % 1.2 % 1.3 % 1.2 % 1.5 %
Total residential broadband churn 1.7 % 1.7 % 1.8 % 1.6 % 1.7 %
Residential revenue per connection
(3) $66.88 $66.50 $66.41 $65.95 $65.66
Capital expenditures (thousands) $251,463 $179,197 $125,963 $154,904 $102,429
Numbers may not foot due to rounding.
(1) Divestiture in December 2025 resulted in a decrease of 12,500 connections, including 5,100 residential broadband connections.
Acquisition in September 2026 resulted in an increase of 7,800 connections, including 4,700 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 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025
Capital expenditures from continuing operations (thousands) $3,915 $3,895 $8,645 $12,933 $7,927
Owned towers 4,455 4,456 4,452 4,450 4,449
Number of colocations(1) 4,372 4,362 4,290 4,572 4,517
Tower tenancy rate(2) 0.98 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.
(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. 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 Nine Months Ended
September 30, September 30,
2026 2025 2026 2026 2025 2026
vs. 2025 vs. 2025
(Dollars and shares in thousands, except per share amounts)
Operating revenues
TDS Telecom $247,265 $255,111 (3) % $745,243 $777,403 (4) %
Array 53,870 47,119 14 % 159,952 102,632 56 %
All Other(1) 5,559 6,291 (12) % 20,230 17,460 16 %
Total operating revenues 306,694 308,521 (1) % 925,425 897,495 3 %
Operating expenses
TDS Telecom 264,736 263,403 1 % 774,723 771,865
Array 56,196 100,432 (44) % (397,770) 203,761 N/M
All Other(1) 15,775 12,660 25 % 61,456 36,084 70 %
Total operating expenses 336,707 376,495 (11) % 438,409 1,011,710 (57) %
Operating income (loss)
TDS Telecom (17,471) (8,292) N/M (29,480) 5,538 N/M
Array (2,326) (53,313) 96 % 557,722 (101,129) N/M
All Other(1) (10,216) (6,369) (60) % (41,226) (18,624) N/M
Total operating income (loss) (30,013) (67,974) 56 % 487,016 (114,215) N/M
Other income (expense)
Equity in earnings of unconsolidated entities 41,414 69,838 (41) % 120,442 149,309 (19) %
Interest and dividend income 22,001 15,663 40 % 55,418 28,044 98 %
Interest expense (11,575) (47,278) 76 % (28,284) (100,352) 72 %
Short-term imputed spectrum lease income 7,669 30,413 (75) % 65,639 30,413 N/M
Other, net 4,523 5,347 (15) % 15,320 10,464 46 %
Total other income 64,032 73,983 (13) % 228,535 117,878 94 %
Income before income taxes 34,019 6,009 N/M 715,551 3,663 N/M
Income tax expense (benefit) (25,869) (72,772) 64 % 134,950 (85,119) N/M
Net income from continuing operations 59,888 78,781 (24) % 580,601 88,782 N/M
Less: Net income from continuing operations 12,999 21,236 (39) % 109,142 25,903 N/M
attributable to noncontrolling interests, net of tax
Net income from continuing operations attributable 46,889 57,545 (19) % 471,459 62,879 N/M
to TDS shareholders
Net income (loss) from discontinued operations (1,173) (151,899) 99 % 21,510 (132,150) N/M
Less: Net income (loss) from discontinued operations (144) (12,604) 99 % 4,148 (6,563) N/M
attributable to noncontrolling interests, net of tax
Net income (loss) from discontinued operations (1,029) (139,295) 99 % 17,362 (125,587) N/M
attributable to TDS shareholders
Net income (loss) 58,715 (73,118) N/M 602,111 (43,368) N/M
Less: Net income attributable to noncontrolling 12,855 8,632 49 % 113,290 19,340 N/M
interests, net of tax
Net income (loss) attributable to TDS shareholders 45,860 (81,750) N/M 488,821 (62,708) N/M
TDS Preferred Share dividends 17,306 17,306 51,919 51,919
Net income (loss) attributable to TDS common $28,554 $(99,056) N/M $436,902 $(114,627) N/M
shareholders
Basic weighted average shares outstanding 114,374 116,126 (2) % 114,254 115,318 (1) %
Basic earnings per share from continuing $0.26 $0.35 (25) % $3.67 $0.10 N/M
operations attributable to TDS common
shareholders
Basic earnings (loss) per share from discontinued $(0.01) $(1.20) 99 % $0.15 $(1.09) N/M
operations attributable to TDS common
shareholders
Basic earnings (loss) per share attributable to TDS $0.25 $(0.85) N/M $3.82 $(0.99) N/M
common shareholders
Diluted weighted average shares outstanding 115,000 118,844 (3) % 115,965 118,786 (2) %
Diluted earnings per share from continuing $0.26 $0.33 (23) % $3.62 $0.07 N/M
operations attributable to TDS common
shareholders
Diluted earnings (loss) per share from discontinued $(0.01) $(1.17) 99 % $0.15 $(1.06) N/M
operations attributable to TDS common
shareholders
Diluted earnings (loss) per share attributable to TDS $0.25 $(0.84) N/M $3.77 $(0.99) N/M
common shareholders
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)
Nine Months Ended
September 30,
2026 2025
(Dollars in thousands)
Cash flows from operating activities
Net income (loss) $602,111 $(43,368)
Net income (loss) from discontinued operations 21,510 (132,150)
Net income from continuing operations 580,601 88,782
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion 264,889 262,095
Bad debts expense 6,026 5,951
Stock-based compensation expense 12,538 22,336
Deferred income taxes, net (121,706) (80,486)
Equity in earnings of unconsolidated entities (120,442) (149,309)
Distributions from unconsolidated entities 89,584 149,732
Loss on impairment of licenses - 47,679
(Gain) loss on asset disposals, net 13,077 8,524
(Gain) loss on sale of business and other exit costs, net 1,046 (6,032)
(Gain) loss on license sales and exchanges, net (553,140) (6,123)
Other operating activities 463 19,451
Changes in assets and liabilities from operations
Accounts receivable (1,558) (8,023)
Inventory 875 14
Accounts payable 6,788 29,225
Customer deposits and deferred revenues (64,671) (31,105)
Accrued taxes (5,834) (22,974)
Accrued interest 259 (3,741)
Other assets and liabilities (64,069) (101,156)
Net cash provided by operating activities - continuing operations 44,726 224,840
Net cash provided by (used in) operating activities - discontinued operations (29,554) 345,473
Net cash provided by operating activities 15,172 570,313
Cash flows from investing activities
Cash paid for additions to property, plant and equipment (515,583) (262,059)
Cash paid for acquisitions and licenses (25,092) (4,175)
Cash received from divestitures 2,188,235 29,389
Other investing activities 2,749 3,168
Net cash provided by (used in) investing activities - continuing operations 1,650,309 (233,677)
Net cash provided by investing activities - discontinued operations - 2,462,399
Net cash provided by investing activities 1,650,309 2,228,722
Cash flows from financing activities
Issuance of long-term debt 1,300 325,000
Repayment of long-term debt (153,104) (1,961,844)
Tax withholdings, net of cash receipts, for TDS stock-based compensation awards (32,724) (1,234)
Tax withholdings, net of cash receipts, for Array stock-based compensation awards (2,068) (63,506)
Repurchase of TDS Common Shares (205,057) (40,697)
Repurchase of Array Common Shares - (21,360)
Dividends paid to TDS shareholders (65,610) (65,801)
Array dividends paid to noncontrolling public shareholders (332,480) (358,579)
Payment of debt issuance costs - (6,459)
Distributions to noncontrolling interests (3,964) (21,131)
Cash paid for software license agreements (1,943) (1,436)
Payments to acquire additional interest in subsidiaries (593)
Other financing activities 212 (7,481)
Net cash used in financing activities - continuing operations (796,031) (2,224,528)
Net cash used in financing activities - discontinued operations - (20,537)
Net cash used in financing activities $(796,031) $(2,245,065)
Net increase in cash, cash equivalents and restricted cash $869,450 $553,970
Cash, cash equivalents and restricted cash
Beginning of period 770,150 383,222
End of period $1,639,600 $937,192
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
September 30, 2026 December 31, 2025
(Dollars in thousands)
Current assets
Cash and cash equivalents $1,635,402 $765,952
Accounts receivable, net 101,433 109,981
Inventory, net 3,187 4,062
Prepaid expenses 35,232 28,206
Income taxes receivable 5,012 1,292
Other current assets 12,967 13,976
Total current assets 1,793,233 923,469
Non-current assets held for sale 57,836 1,598,131
Licenses 1,585,374 1,642,972
Goodwill 6,403
Other intangible assets, net 110,231 131,673
Investments in unconsolidated entities 493,930 461,922
Property, plant and equipment, net 3,346,706 2,965,455
Operating lease right-of-use assets 497,077 515,081
Other assets and deferred charges 176,512 159,600
Total assets $8,067,302 $8,398,303
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
September 30, 2026 December 31, 2025
(Dollars in thousands, except per share amounts)
Current liabilities
Current portion of long-term debt $9,269 $5,274
Accounts payable 196,646 115,822
Customer deposits and deferred revenues 58,803 125,140
Accrued interest 3,094 2,836
Accrued taxes 26,926 46,721
Accrued compensation 46,657 56,774
Short-term operating lease liabilities 27,404 26,180
Current liabilities of discontinued operations 24,304 20,242
Other current liabilities 54,211 41,322
Total current liabilities 447,314 440,311
Deferred liabilities and credits
Deferred income tax liability, net 615,486 743,633
Long-term operating lease liabilities 532,555 549,617
Other deferred liabilities and credits 579,376 574,025
Long-term debt, net 668,736 823,364
Total equity 5,223,835 5,267,353
Total liabilities and equity $8,067,302 $8,398,303
Balance Sheet Highlights
(Unaudited)
September 30, 2026
TDS TDS Intercompany TDS
Corporate
Telecom Array & Other Eliminations Consolidated
(Dollars in thousands)
Cash and cash equivalents $66,276 $233,568 $1,398,955 $(63,397) $1,635,402
Licenses, goodwill and other intangible assets $116,787 $1,584,674 $547
$ - $1,702,008
Investment in unconsolidated entities 4,419 439,585 61,259 (11,333) 493,930
$121,206 $2,024,259 $61,806 $(11,333) $2,195,938
Property, plant and equipment, net $2,947,663 $384,149 $14,894
$ - $3,346,706
Long-term debt, net:
Current portion $167 $8,125 $977
$ - $9,269
Non-current portion 2,741 665,016 979 668,736
$2,908 $673,141 $1,956
$ - $678,005
TDS Telecom Highlights
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2026 2025 2026 2026 2025 2026
vs. 2025 vs. 2025
(Dollars in thousands)
Operating revenues
Residential
Incumbent $74,948 $81,910 (8) % $228,108 $252,168 (10) %
Expansion 48,310 39,610 22 % 137,528 110,596 24 %
Cable 55,909 60,231 (7) % 169,891 186,253 (9) %
Total residential 179,167 181,751 (1) % 535,527 549,017 (2) %
Commercial 32,451 34,066 (5) % 98,022 103,317 (5) %
Wholesale 35,588 39,153 (9) % 111,522 124,534 (10) %
Total service revenues 247,206 254,970 (3) % 745,071 776,868 (4) %
Equipment revenues 59 141 (58) % 172 535 (68) %
Total operating revenues 247,265 255,111 (3) % 745,243 777,403 (4) %
Cost of operations (excluding Depreciation, 103,180 102,253 1 % 300,944 300,265
amortization and accretion reported below)
Cost of equipment and products 173 182 (5) % 402 562 (28) %
Selling, general and administrative 84,648 79,201 7 % 244,747 244,905
Depreciation, amortization and accretion 75,985 78,901 (4) % 222,127 223,478 (1) %
(Gain) loss on asset disposals, net 1,265 22 N/M 7,057 7,890 (11) %
(Gain) loss on sale of business and other exit costs, net (515) 2,844 N/M 1,046 (5,235) N/M
(Gain) loss on license sales and exchanges, net - (1,600) N/M
Total operating expenses 264,736 263,403 1 % 774,723 771,865
Operating income (loss) $(17,471) $(8,292) N/M $(29,480) $5,538 N/M
N/M - Percentage change not meaningful
Array Digital Infrastructure, Inc. Highlights
(Unaudited)
Three Months Ended Nine Months Ended
September 30,
September 30,
2026 2025 2026 2026 2025 2026
vs. 2025 vs. 2025
(Dollars in thousands)
Operating revenues
Site rental $52,475 $45,838 14 % $156,674 $99,663 57 %
Services 1,395 1,281 9 % 3,278 2,969 10 %
Total operating revenues 53,870 47,119 14 % 159,952 102,632 56 %
Operating expenses
Cost of operations (excluding Depreciation, amortization 23,349 20,976 11 % 68,455 56,662 21 %
and accretion reported below)
Selling, general and administrative 18,200 20,525 (11) % 53,851 69,063 (22) %
Depreciation, amortization and accretion 13,405 11,868 13 % 40,437 35,860 13 %
Loss on impairment of licenses - 47,679 N/M 47,679 N/M
(Gain) loss on asset disposals, net 1,233 707 74 % 5,946 620 N/M
(Gain) loss on license sales and exchanges, net 9 (1,323) N/M (566,459) (6,123) N/M
Total operating expenses 56,196 100,432 (44) % (397,770) 203,761 N/M
Operating income (loss) $(2,326) $(53,313) 96 % $557,722 $(101,129) N/M
N/M - Percentage change not meaningful
Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
Nine Months Ended
September 30,
TDS CONSOLIDATED 2026 2025
(Dollars in thousands)
Cash flows from operating activities - continuing operations (GAAP) $44,726 $224,840
Cash paid for additions to property, plant and equipment (515,583) (262,059)
Cash paid for software license agreements (1,943) (1,436)
Free cash flow - continuing operations (Non-GAAP)(1) $(472,800) $(38,655)
(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 Nine Months Ended
September 30, September 30,
TDS Telecom 2026 2025 2026 2025
(Dollars in thousands)
Net income (loss) (GAAP) $(11,954) $(282) $(15,900) $19,329
Add back:
Income tax expense (benefit) (3,306) (2,748) (7,305) 561
Income (loss) before income taxes (GAAP) (15,260) (3,030) (23,205) 19,890
Add back:
Interest expense 155 (1,743) 330 (4,168)
Depreciation, amortization and accretion 75,985 78,901 222,127 223,478
EBITDA (Non-GAAP) 60,880 74,128 199,252 239,200
Add back or deduct:
Expenses related to strategic alternatives review 4,229 3,497 4,316 3,497
(Gain) loss on asset disposals, net 1,265 22 7,057 7,890
(Gain) loss on sale of business and other exit costs, net (515) 2,844 1,046 (5,235)
(Gain) loss on license sales and exchanges, net (1,600)
Adjusted EBITDA (Non-GAAP) 65,859 80,491 210,071 245,352
Deduct:
Equity in earnings of unconsolidated entities 2 3 2 4
Interest and dividend income 2,126 1,824 3,734 4,918
Other, net 238 1,692 2,869 5,262
Adjusted OIBDA (Non-GAAP) $63,493 $76,972 $203,466 $235,168
Three Months Ended Nine Months Ended
September 30, September 30,
Array 2026 2025 2026 2025
(Dollars in thousands)
Net income from continuing operations (GAAP) $69,978 $109,920 $587,449 $130,503
Add back:
Income tax expense (benefit) (30,121) (62,701) 138,147 (54,479)
Income before income taxes (GAAP) 39,857 47,219 725,596 76,024
Add back:
Interest expense 10,972 8,855 29,013 16,233
Depreciation, amortization and accretion 13,405 11,868 40,437 35,860
EBITDA (Non-GAAP) 64,234 67,942 795,046 128,117
Add back or deduct:
Expenses related to strategic alternatives review 5,934 489 13,512 2,349
Loss on impairment of licenses 47,679 47,679
(Gain) loss on asset disposals, net 1,233 707 5,946 620
(Gain) loss on license sales and exchanges, net 9 (1,323) (566,459) (6,123)
Short-term imputed spectrum lease income (7,669) (30,413) (65,639) (30,413)
Adjusted EBITDA (Non-GAAP) 63,741 85,081 182,406 142,229
Deduct:
Equity in earnings of unconsolidated entities 41,009 69,811 116,144 147,453
Interest and dividend income 4,442 8,909 15,095 15,267
Other, net 35 254 9 253
Adjusted OIBDA (Non-GAAP) $18,255 $6,107 $51,158 $(20,744)
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.
Nine Months Ended
September 30, 2026
(Dollars in thousands)
Net income from continuing operations - Array (GAAP) $587,449
Add back or deduct:
Income tax expense 138,147
Cash paid for income taxes(1) (274,270)
Stock-based compensation expense 879
Short-term imputed spectrum lease income (65,639)
Amortization of deferred debt charges 991
Equity in earnings of unconsolidated entities (116,144)
Distributions from unconsolidated entities 89,584
(Gain) loss on license sales and exchanges, net (566,459)
(Gain) loss on asset disposals, net 5,946
Depreciation, amortization and accretion 40,437
Expenses related to strategic alternatives review 13,512
Straight line and other non-cash revenue adjustments (14,327)
Straight line expense adjustment 3,070
Maintenance and other capital expenditures (5,172)
Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP) $(161,996)
(1) Substantially all of the cash paid for income taxes are related to the sale of various
wireless spectrum licenses in 2026.
View original content:https://www.prnewswire.com/news-releases/tds-reports-third-quarter-2026-results-302931830.html
SOURCE Telephone and Data Systems, Inc.
John Toomey, Treasurer and Vice President - Corporate Relations, john.toomey@tdsinc.com, Karen Samples, Corporate Finance and Investor Relations Senior Manager, karen.samples@tdsinc.com