TDS Telecom increases its long-term marketable fiber service goal to 2.1 million addresses
TDS Telecom and Array provide 2026 guidance
CHICAGO, Feb. 20, 2026 /PRNewswire/ --
As previously announced, TDS will hold a teleconferenceon February 20, 2026, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.
Telephone and Data Systems, Inc. (NYSE:TDS) reported results for the fourth quarter and full year 2025.
"2025 was a year of significant transformation for TDS," said Walter Carlson, President and CEO. "We completed the largest transaction in our history with the sale of our wireless business, launched a new tower company now operating as Array, and ended the year with 1.06 million marketable fiber service addresses at TDS Telecom. These actions strengthened our balance sheet and positioned the company for sustainable growth."
Highlights
TDS
- Repurchased 1,765,863 Common Shares for $67.4 million in the fourth quarter of 2025
- Repaid $150 million of Export Development Canada debt in January 2026
TDS Telecom
- Executed on fiber broadband strategy
- Grew fiber net additions 44,900 in 2025
- Deployed 140,000 new marketable fiber service addresses in 2025
- Increased long-term marketable fiber service address goal to 2.1 million, an increase of 300,000 addresses
Array
- Grew site rental revenues 51% year over year
- Closed on the sale of wireless spectrum with AT&T on January 13, 2026, for $1.018 billion
- Paid a $10.25 per share special dividend on February 2, 2026
TDS reported total operating revenues from continuing operations of $330.7 million for the fourth quarter of 2025, versus $295.3 million for the same period one year ago. Net income attributable to TDS common shareholders and related diluted earnings per share from continuing operations were $37.2 million and $0.32, respectively, for the fourth quarter of 2025 compared to $1.0 million and $0.01, respectively, in the same period one year ago.
TDS reported total operating revenues from continuing operations of $1,228.2 million and $1,297.0 million for the years ended 2025 and 2024, respectively. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share from continuing operations were $48.2 million and $0.39, respectively, for the year ended 2025 compared to $(141.4) million and $(1.24), respectively, for the year ended 2024.
"In 2026, we intend to continue to advance our strategic priorities by investing in the expansion of TDS Telecom's fiber business and supporting co?location and profitability initiatives at Array. We also expect to close our pending spectrum transactions and pursue opportunities to further monetize our remaining spectrum," Carlson added.
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 February 20, 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 2026 Estimated Actual Results for
Results the Year Ended
December 31, 2025*
(Dollars in millions)
Total operating revenues
$1,015-$1,055 $1,038
Adjusted OIBDA1 (Non-GAAP)
$300-$340 $319
Adjusted EBITDA1 (Non-GAAP)
$310-$350 $330
Capital expenditures
$550-$600 $406
* The 2025 divestitures at TDS Telecom impact year-over-year comparisons. The divested markets contributed $19M in annual revenues in 2025.
Array 2026 Estimated Actual Results for
Results
the Year Ended
December 31, 2025
(Dollars in millions)
Total operating revenues
$200-$215 $163
Adjusted OIBDA1 (Non-GAAP)
$50-$65 $1
Adjusted EBITDA1 (Non-GAAP)
$200-$215 $194
Capital expenditures
$25-$35 $30
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.
TDS Telecom
Array
2026 Estimated Actual Results 2026 Estimated Actual Results
for for
Results the Year Ended Results the Year Ended
December 31, 2025 December 31, 2025
(Dollars in millions)
Net income from continuing operations (GAAP) N/A $28 N/A $172
Add back:
Income tax expense (benefit) N/A 10 N/A (31)
Income (loss) before income taxes (GAAP) ($15)-$25 $38
$780-$795 $141
Add back or deduct:
Interest expense (7) 45 28
Depreciation, amortization and accretion 325 300 50 48
EBITDA (Non-GAAP)(1)
$310-$350 $331
$875-$890 $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 15 2
(Gain) loss on sale of business and other exit costs, net (23)
(Gain) loss on license sales and exchanges, net (595) (6)
Short-term imputed spectrum lease income (80) (69)
Adjusted EBITDA (Non-GAAP)(1)
$310-$350 $330
$200-$215 $194
Deduct:
Equity in earnings of unconsolidated entities 140 174
Interest and dividend income 5 6 10 19
Other, net 5 5
Adjusted OIBDA (Non-GAAP)(1)
$300-$340 $319
$50-$65 $1
Numbers may not foot due to rounding.
1 EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income 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. The table above reconciles
EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes.
Conference Call Information
TDS will hold a conference call on February 20, 2026 at 9:00 a.m. Central Time.
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: 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 sales 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 churn rates; advances or changes in technology; impacts of costs, integration problems 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 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.
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
TDS Telecom: www.tdstelecom.com
Array: investors.arrayinc.com
Array Digital Infrastructure, Inc.
Summary Operating Data (Unaudited)
As of or for the Quarter Ended 12/31/2025 9/30/2025
Capital expenditures from continuing operations (thousands) $12,933 $7,927
Owned towers 4,450 4,449
Number of colocations(1) 4,572 4,517
Tower tenancy rate(2) 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.
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.
TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024
Residential connections
Broadband
Incumbent Fiber 127,300 123,500 121,200 119,700 118,500
Incumbent Copper 91,200 102,000 106,500 112,600 116,900
Expansion Fiber 160,600 150,700 141,800 133,200 126,100
Cable 182,800 186,100 188,200 190,200 191,500
Total Broadband 561,900 562,400 557,700 555,800 553,000
Video 111,500 114,300 116,500 118,700 121,000
Voice 228,900 242,200 248,700 256,900 261,600
Wireless 3,300 2,200 1,600 900 100
Total Residential connections 905,600 921,100 924,500 932,300 935,700
Commercial connections 173,900 180,300 184,300 187,600 190,500
Total connections(1) 1,079,500 1,101,300 1,108,800 1,119,900 1,126,300
Total residential fiber net adds 15,100 11,200 10,300 8,300 13,600
Total residential broadband net adds 4,500 4,600 3,900 2,800 7,900
Residential fiber churn(2) 1.2 % 1.5 % 1.1 % 0.9 % 1.0 %
Total residential broadband churn 1.6 % 1.7 % 1.5 % 1.3 % 1.4 %
Residential revenue per connection(3) $65.95 $65.66 $65.85 $65.67 $64.72
Capital expenditures (thousands) $154,904 $102,429 $90,187 $58,870 $81,743
Numbers may not foot due to rounding.
1
Divestitures in 2025 resulted in a decrease of 19,400 connections, including 7,700 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.
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2025 2024 2025 2025 2024 2025
vs. 2024 vs.
2024
(Dollars and shares in thousands, except per share amounts)
Operating revenues
TDS Telecom $260,956 $264,295 (1) % $1,038,358 $1,060,857 (2) %
Array 60,328 26,089 N/M 162,961 102,933 58 %
All Other(1) 9,428 4,964 90 % 26,888 133,188 (80) %
330,712 295,348 12 % 1,228,207 1,296,978 (5) %
Operating expenses
TDS Telecom
Expenses excluding depreciation, amortization and accretion 179,941 187,101 (4) % 725,672 720,517 1 %
Depreciation, amortization and accretion 76,720 71,713 7 % 300,196 270,660 11 %
Loss on impairment of intangible assets 900 1,103 (18) % 900 1,103 (18) %
(Gain) loss on asset disposals, net 7,163 4,032 78 % 15,054 12,376 22 %
(Gain) loss on sale of business and other exit costs, net (17,886) (49,108) 64 % (23,121) (49,108) 53 %
246,838 214,841 15 % 1,018,701 955,548 7 %
Array
Expenses excluding depreciation, amortization and accretion 38,204 43,733 (13) % 163,929 175,553 (7) %
Depreciation, amortization and accretion 12,402 12,156 2 % 48,262 47,212 2 %
Loss on impairment of intangible assets - N/M 47,679 136,234 (65) %
(Gain) loss on asset disposals, net 1,125 219 N/M 1,746 809 N/M
(Gain) loss on license sales and exchanges, net - (900) (6,123) 3,460 N/M
51,731 55,208 (6) % 255,493 363,268 (30) %
All Other(1)
Expenses excluding depreciation, amortization and accretion 14,610 14,989 (3) % 48,721 180,882 (73) %
Depreciation, amortization and accretion 667 950 (30) % 3,427 7,825 (56) %
(Gain) loss on asset disposals, net 36 (9) N/M 47 (44) N/M
(Gain) loss on sale of business and other exit costs, net - (7,510) N/M (797) (19,242) 96 %
15,313 8,420 82 % 51,398 169,421 (70) %
Total operating expenses 313,882 278,469 13 % 1,325,592 1,488,237 (11) %
Operating income (loss)
TDS Telecom 14,118 49,454 (71) % 19,657 105,309 (81) %
Array 8,597 (29,119) N/M (92,532) (260,335) 64 %
All Other(1) (5,885) (3,456) (70) % (24,510) (36,233) (32) %
16,830 16,879 (97,385) (191,259) 49 %
Other income (expense)
Equity in earnings of unconsolidated entities 26,792 38,506 (30) % 176,101 163,623 8 %
Interest and dividend income 12,263 6,933 77 % 40,307 27,201 48 %
Interest expense (12,316) (29,657) 58 % (112,668) (108,575) (4) %
Short-term imputed spectrum lease income 38,619 N/M 69,033 N/M
Other, net 3,112 2,541 22 % 13,574 5,622 N/M
Total other income 68,470 18,323 N/M 186,347 87,871 N/M
Income (loss) before income taxes 85,300 35,202 N/M 88,962 (103,388) N/M
Income tax expense (benefit) 22,936 14,728 56 % (62,184) (22,067) N/M
Net income (loss) from continuing operations 62,364 20,474 N/M 151,146 (81,321) N/M
Less: Net income (loss) from continuing operations 7,839 2,163 N/M 33,742 (9,150) N/M
attributable to noncontrolling interests, net of tax
Net income (loss) from continuing operations attributable $54,525 $18,311 N/M $117,404 $(72,171) N/M
to TDS shareholders
Net income (loss) from discontinued operations $1,246 $(13,313) N/M $(130,904) $54,840 N/M
Less: Net income (loss) from discontinued (701) (865) (19) % (7,264) 10,374 N/M
operations attributable to noncontrolling interests, net of tax
Net income (loss) from discontinued operations attributable 1,947 (12,448) N/M (123,640) 44,466 N/M
to TDS shareholders
Net income (loss) 63,610 7,161 N/M 20,242 (26,481) N/M
Less: Net income attributable to noncontrolling interests, 7,138 1,298 N/M 26,478 1,224 N/M
net of tax
Net income (loss) attributable to TDS shareholders 56,472 5,863 N/M (6,236) (27,705) 77 %
TDS Preferred Share dividends 17,306 17,306 69,225 69,225
Net income (loss) attributable to TDS common shareholders $39,166 $(11,443) N/M $(75,461) $(96,930) 22 %
Basic weighted average shares outstanding 114,767 114,282 - 115,179 113,714 1 %
Basic earnings (loss) per share from continuing $0.32 $0.01 N/M $0.42 $(1.24) N/M
operations attributable to TDS common shareholders
Basic earnings (loss) per share from discontinued $0.02 $(0.11) N/M $(1.08) $0.39 N/M
operations attributable to TDS common shareholders
Basic earnings (loss) per share attributable to TDS $0.34 $(0.10) N/M $(0.66) $(0.85) 23 %
common shareholders
Diluted weighted average shares outstanding 117,516 118,273 (1) % 118,563 113,714 4 %
Diluted earnings (loss) per share from continuing $0.32 $0.01 N/M $0.39 $(1.24) N/M
operations attributable to TDS common shareholders
Diluted earnings (loss) per share from discontinued $0.01 $(0.11) N/M $(1.04) $0.39 N/M
operations attributable to TDS common shareholders
Diluted earnings (loss) per share attributable to TDS $0.33 $(0.10) N/M $(0.65) $(0.85) 23 %
common shareholders
N/M - Percentage change not meaningful.
1 Consists of TDS corporate, intercompany eliminations and all other business operations not included in the Array and TDS Telecom segments.
Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Year Ended December 31, 2025 2024
(Dollars in thousands)
Cash flows from operating activities
Net income (loss) $20,242 $(26,481)
Net income (loss) from discontinued operations (130,904) 54,840
Net income (loss) from continuing operations 151,146 (81,321)
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities
Depreciation, amortization and accretion 351,885 325,697
Bad debts expense 8,172 7,424
Stock-based compensation expense 27,174 18,335
Deferred income taxes, net (66,190) (20,978)
Equity in earnings of unconsolidated entities (176,101) (163,623)
Distributions from unconsolidated entities 215,599 168,701
Loss on impairment of intangible assets 48,579 137,337
(Gain) loss on asset disposals, net 16,847 13,141
(Gain) loss on sale of business and other exit costs, net (23,918) (68,350)
(Gain) loss on license sales and exchanges, net (6,123) 3,460
Other operating activities 29,617 4,576
Changes in assets and liabilities from operations
Accounts receivable (24,189) 6,185
Inventory (10) (327)
Accounts payable (9,830) (56,066)
Customer deposits and deferred revenues (70,569) 399
Accrued taxes (19,837) (5,105)
Other assets and liabilities (113,968) 6,295
Net cash provided by operating activities - continuing operations 338,284 295,780
Net cash provided by operating activities - discontinued operations 251,605 850,093
Net cash provided by operating activities 589,889 1,145,873
Cash flows from investing activities
Cash paid for additions to property, plant and equipment (390,529) (365,446)
Cash paid for licenses (4,175) (19,198)
Cash received from divestitures 72,342 147,267
Other investing activities 4,067 1,449
Net cash used in investing activities - continuing operations (318,295) (235,928)
Net cash provided by (used in) investing activities - discontinued operations 2,462,399 (518,572)
Net cash provided by (used in) investing activities 2,144,104 (754,500)
Cash flows from financing activities
Issuance of long-term debt 325,000 440,000
Repayment of long-term debt (1,962,116) (455,548)
Tax withholdings, net of cash receipts, for TDS stock-based compensation awards (1,275) (2,308)
Tax withholdings, net of cash receipts, for Array stock-based compensation awards (63,446) (11,246)
Repurchase of TDS Common Shares (108,129)
Repurchase of Array Common Shares (21,360) (54,091)
Dividends paid to TDS shareholders (87,670) (104,383)
Array dividends paid to noncontrolling public shareholders (358,579)
Payment of debt issuance costs (8,830) (16,170)
Distributions to noncontrolling interests (21,932) (4,716)
Cash paid for software license agreements (1,933) (1,251)
Other financing activities (16,258) (1,115)
Net cash used in financing activities - continuing operations (2,326,528) (210,828)
Net cash used in financing activities - discontinued operations (20,537) (66,631)
Net cash used in financing activities (2,347,065) (277,459)
Net increase in cash, cash equivalents and restricted cash 386,928 113,914
Cash, cash equivalents and restricted cash
Beginning of period 383,222 269,308
End of period $770,150 $383,222
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
December 31, 2025 2024
(Dollars in thousands)
Current assets
Cash and cash equivalents $765,952 $363,612
Accounts receivable, net 109,981 98,552
Inventory, net 4,062 4,052
Prepaid expenses 28,206 32,367
Income taxes receivable 1,292 2,487
Current assets of discontinued operations - 1,163,032
Other current assets 13,976 31,088
Total current assets 923,469 1,695,190
Non-current assets held for sale 1,598,131 12
Non-current assets of discontinued operations - 4,499,561
Licenses 1,642,972 3,289,648
Other intangible assets, net 131,673 160,804
Investments in unconsolidated entities 461,922 500,471
Property, plant and equipment, net 2,965,455 2,876,214
Operating lease right-of-use assets 515,081 520,902
Other assets and deferred charges 159,600 139,430
Total assets $8,398,303 $13,682,232
Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
December 31, 2025 2024
(Dollars in thousands, except per share amounts)
Current liabilities
Current portion of long-term debt $5,274 $31,131
Accounts payable 115,822 74,866
Customer deposits and deferred revenues 125,140 46,992
Accrued interest 2,836 8,999
Accrued taxes 46,721 36,561
Accrued compensation 56,774 147,061
Short-term operating lease liabilities 26,180 27,529
Current liabilities of discontinued operations 20,242 671,575
Other current liabilities 41,322 44,980
Total current liabilities 440,311 1,089,694
Non-current liabilities of discontinued operations - 2,310,660
Deferred liabilities and credits
Deferred income tax liability, net 743,633 980,769
Long-term operating lease liabilities 549,617 540,904
Other deferred liabilities and credits 574,025 460,676
Long-term debt, net 823,364 2,415,686
Noncontrolling interests with redemption features - 15,831
Total equity 5,267,353 5,868,012
Total liabilities and equity $8,398,303 $13,682,232
Balance Sheet Highlights
(Unaudited)
December 31, 2025
TDS Array TDS Intercompany TDS
Telecom Corporate Eliminations Consolidated
& Other
(Dollars in thousands)
Cash and cash equivalents $144,968 $113,400 $655,894 $(148,310) $765,952
Licenses and other intangible assets $131,826 $1,642,187 $632
$ - $1,774,645
Investment in unconsolidated entities 3,947 412,608 55,868 (10,501) 461,922
$135,773 $2,054,795 $56,500 $(10,501) $2,236,567
Property, plant and equipment, net $2,562,057 $388,999 $14,399
$ - $2,965,455
Long-term debt, net:
Current portion $160 $4,063 $1,051
$ - $5,274
Non-current portion 2,887 670,258 150,219 823,364
$3,047 $674,321 $151,270
$ - $828,638
TDS Telecom Highlights
(Unaudited)
Three Months Ended
Year Ended
December 31, December 31,
2025 2024 2025 2025 2024 2025
vs. vs.
2024 2024
(Dollars in thousands)
Operating revenues
Residential
Incumbent $80,179 $86,164 (7) % $332,347 $355,395 (6) %
Expansion 41,935 31,373 34 % 152,531 114,113 34 %
Cable 58,847 64,787 (9) % 245,100 270,444 (9) %
Total residential 180,961 182,324 (1) % 729,978 739,952 (1) %
Commercial 33,941 37,374 (9) % 137,258 147,564 (7) %
Wholesale 45,965 44,363 4 % 170,499 172,520 (1) %
Total service revenues 260,867 264,061 (1) % 1,037,735 1,060,036 (2) %
Equipment revenues 89 234 (62) % 623 821 (24) %
Total operating revenues 260,956 264,295 (1) % 1,038,358 1,060,857 (2) %
Cost of operations (excluding Depreciation, 99,351 103,047 (4) % 399,616 399,815
amortization and accretion reported below)
Cost of equipment and products 193 208 (8) % 754 723 4 %
Selling, general and administrative expenses 80,397 83,846 (4) % 325,302 319,979 2 %
Depreciation, amortization and accretion 76,720 71,713 7 % 300,196 270,660 11 %
Loss on impairment of intangible assets 900 1,103 (18) % 900 1,103 (18) %
(Gain) loss on asset disposals, net 7,163 4,032 78 % 15,054 12,376 22 %
(Gain) loss on sale of business and other exit costs, net (17,886) (49,108) 64 % (23,121) (49,108) 53 %
Total operating expenses 246,838 214,841 15 % 1,018,701 955,548 7 %
Operating income $14,118 $49,454 (71) % $19,657 $105,309 (81) %
Array Digital Infrastructure, Inc. Highlights
(Unaudited)
Three Months Ended
Year Ended
December 31, December 31,
Array 2025 2024 2025 2025 2024 2025
vs. 2024 vs. 2024
(Dollars in thousands)
Operating revenues
Site rental $54,990 $26,019 N/M $154,654 $102,610 51 %
Services 5,338 70 N/M 8,307 323 N/M
Total operating revenues 60,328 26,089 N/M 162,961 102,933 58 %
Operating expenses
Cost of operations (excluding Depreciation, 22,823 20,174 13 % 79,485 72,997 9 %
amortization and accretion reported below)
Selling, general and administrative 15,381 23,559 (35) % 84,444 102,556 (18) %
Depreciation, amortization and accretion 12,402 12,156 2 % 48,262 47,212 2 %
Loss on impairment of licenses - N/M 47,679 136,234 (65) %
(Gain) loss on asset disposals, net 1,125 219 N/M 1,746 809 N/M
(Gain) loss on license sales and exchanges, net - (900) N/M (6,123) 3,460 N/M
Total operating expenses 51,731 55,208 (6) % 255,493 363,268 (30) %
Operating income (loss) $8,597 $(29,119) N/M $(92,532) $(260,335) 64 %
N/M - Percentage change not meaningful
Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
Year Ended
December 31,
TDS Consolidated 2025 2024
(Dollars in thousands)
Cash flows from operating activities - continuing operations (GAAP) $338,284 $295,780
Cash paid for additions to property, plant and equipment (390,529) (365,446)
Cash paid for software license agreements (1,933) (1,251)
Free cash flow - continuing operations (Non-GAAP)(1) $(54,178) $(70,917)
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)
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures,
Net income (loss) and Income (loss) before income taxes.
Three Months Ended Year Ended
December 31, December 31,
TDS Telecom 2025 2024 2025 2024
(Dollars in thousands)
Net income (GAAP) $8,187 $34,008 $27,516 $84,901
Add back or deduct:
Income tax expense (benefit) 9,595 20,301 10,157 35,040
Income before income taxes (GAAP) 17,782 54,309 37,673 119,941
Add back or deduct:
Interest expense (2,487) (1,676) (6,654) (5,197)
Depreciation, amortization and accretion expense 76,720 71,713 300,196 270,660
EBITDA (Non-GAAP) 92,015 124,346 331,215 385,404
Add back or deduct:
Expenses related to strategic alternatives review 2,711 6,207
Loss on impairment of intangible assets 900 1,103 900 1,103
(Gain) loss on asset disposals, net 7,163 4,032 15,054 12,376
(Gain) loss on sale of business and other exit costs, net (17,886) (49,108) (23,121) (49,108)
Adjusted EBITDA (Non-GAAP) 84,903 80,373 330,255 349,775
Deduct:
Equity in earnings of unconsolidated entities - (8) 4 (7)
Interest and dividend income 1,522 1,892 6,440 5,483
Other, net (345) 1,295 4,918 3,959
Adjusted OIBDA (Non-GAAP) $83,726 $77,194 $318,893 $340,340
Three Months Ended Year Ended
December 31, December 31,
Array 2025 2024 2025 2024
(Dollars in thousands)
Net income (loss) from continuing operations (GAAP) $41,764 $11,832 $172,267 $(80,464)
Add back or deduct:
Income tax expense (benefit) 23,332 (3,656) (31,148) (19,256)
Income (loss) before income taxes (GAAP) 65,096 8,176 141,119 (99,720)
Add back:
Interest expense 11,989 3,203 28,222 12,405
Depreciation, amortization and accretion expense 12,402 12,156 48,262 47,212
EBITDA (Non-GAAP) 89,487 23,535 217,603 (40,103)
Add back or deduct:
Expenses related to strategic alternatives review 95 1,607 2,444 21,521
Loss on impairment of licenses 47,679 136,234
(Gain) loss on asset disposals, net 1,125 219 1,746 809
(Gain) loss on license sales and exchanges, net (900) (6,123) 3,460
Short-term imputed spectrum lease income (38,619) (69,033)
Adjusted EBITDA (Non-GAAP) 52,088 24,461 194,316 121,921
Deduct:
Equity in earnings of unconsolidated entities 26,301 37,919 173,754 161,364
Interest and dividend income 3,649 2,579 18,917 11,656
Other, net (81) 169
Adjusted OIBDA (Non-GAAP) $22,219 $(16,037) $1,476 $(51,099)
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. Array modified its AFCF metric for the three months ended December 31, 2025 to adjust for cash taxes paid in the quarter, which management believes best reflects cash generated from operations and investments. Under the modified presentation, the comparative calculation of AFCF for the three months ended September 30, 2025 would have been $63.4 million.
Three Months Ended
December 31, 2025
(Dollars in thousands)
Net income from continuing operations - Array (GAAP) $41,764
Add back or deduct:
Income tax expense 23,332
Cash paid for income taxes (191)
Stock-based compensation expense 259
Short-term imputed spectrum lease income (38,619)
Amortization of deferred debt charges 946
Equity in earnings of unconsolidated entities (26,301)
Distributions from unconsolidated entities 65,867
(Gain) loss on asset disposals, net 1,125
Depreciation, amortization and accretion 12,402
Expenses related to strategic alternatives review 95
Straight line and other non-cash revenue adjustments (5,190)
Straight line expense adjustment 1,398
Maintenance and other capital expenditures (2,025)
Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP) $74,862
View original content:https://www.prnewswire.com/news-releases/tds-reports-fourth-quarter-and-full-year-2025-results-302693316.html
SOURCE Telephone and Data Systems, Inc.
Contacts: John Toomey, Treasurer and Vice President - Corporate Relations, john.toomey@tdsinc.com; Julie Mathews, Director - Investor Relations, julie.mathews@tdsinc.com