TDS reports first quarter 2025 results

Rhea-AI Summary

TDS reported Q1 2025 financial results with total operating revenues of $1,154 million, down from $1,262 million year-over-year. The company posted a net loss of $10 million ($(0.09) per share) compared to net income of $12 million ($0.10 per share) in Q1 2024. Key highlights include UScellular's improved postpaid handset performance and 6% increase in third-party tower rental revenues. TDS Telecom saw a 3% revenue decline due to non-strategic asset divestitures but added 14,000 marketable fiber services addresses and gained 2,800 residential broadband net additions. Notably, TDS is proceeding with the previously announced sale of UScellular's wireless operations to T-Mobile, expected to close in mid-2025. The company maintains its 2025 guidance for TDS Telecom with total operating revenues of $1,030-$1,070 million and Adjusted EBITDA of $320-$360 million.

Positive

• UScellular improved postpaid handset performance with increased gross additions
• Third-party tower rental revenues grew 6% year-over-year
• Added 14,000 marketable fiber services addresses and 2,800 residential broadband net additions
• Strategic sale of wireless operations to T-Mobile progressing towards mid-2025 closing
• Multiple spectrum sale agreements in place with T-Mobile, Verizon, and AT&T

Negative

• Total operating revenues declined to $1,154M from $1,262M YoY
• Net loss of $10M in Q1 2025 compared to $12M profit in Q1 2024
• TDS Telecom revenues down 3% due to divestitures of non-strategic assets

Insights

Financial Analyst

TDS reports revenue decline and net loss amid strategic transformation, selling wireless operations while focusing on growing fiber and tower businesses.

TDS reported Q1 2025 total operating revenues of $1,154 million, marking an 8.6% decrease from $1,262 million in Q1 2024. The company swung to a net loss of $10 million (-$0.09 EPS) compared to net income of $12 million ($0.10 EPS) in the same period last year.

These results reflect TDS's ongoing strategic transformation. The company is executing a significant pivot, having agreed to sell UScellular's wireless operations to T-Mobile (expected to close mid-2025), while also divesting spectrum assets to Verizon, AT&T, and other companies. Post-transaction, TDS will focus primarily on fiber broadband and tower infrastructure businesses.

The tower segment showed strength with third-party tower rental revenues increasing 6% year-over-year, demonstrating steady growth in this infrastructure asset. Meanwhile, TDS Telecom's revenue decreased 3%, primarily due to 2024 divestitures of non-strategic assets including OneNeck and certain ILECs.

Despite this revenue decline, TDS Telecom continues executing its fiber deployment strategy, delivering 14,000 marketable fiber service addresses in Q1 and adding 2,800 residential broadband net additions (with 8,300 specifically from fiber markets).

Management maintained its 2025 guidance for TDS Telecom, projecting revenues of $1,030-$1,070 million and adjusted EBITDA of $320-$360 million. The high capital expenditure guidance of $375-$425 million reflects continued significant investment in fiber infrastructure.

This transition from wireless consumer services to infrastructure assets (fiber/towers) positions TDS toward more stable, recurring revenue streams, though with different growth and margin profiles than its historical business mix.

CHICAGO, May 2, 2025 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on May 2, 2025, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,154 million for the first quarter of 2025, versus $1,262 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(10) million and $(0.09), respectively, for the first quarter of 2025 compared to $12 million and $0.10, respectively, in the same period one year ago.

Recent Highlights*

UScellular

• Improved postpaid handset results
  • Postpaid handset gross additions increased; postpaid handset net losses improved
• Third-party tower rental revenues increased 6%
• Ongoing 5G mid-band network deployment
  • Providing capacity and enhanced speed for our mobility and fixed wireless customers

TDS Telecom

• TDS Telecom revenues down 3%, impacted by 2024 divestitures of non-strategic assets
• Executing on fiber broadband strategy
  • Delivered 14,000 marketable fiber services addresses in Q1
  • Added 2,800 residential broadband net additions; 8,300 from fiber markets

* Comparisons are 1Q'24 to 1Q'25 unless otherwise noted

"As we work towards the expected mid-2025 closing of the sale of the wireless operations, the remaining businesses – fiber and towers – are making foundational changes that will support TDS' transformation," said Walter Carlson, TDS President and CEO. "In the first quarter, TDS and TDS Telecom results were impacted from the prior year divestitures of non-strategic assets, including the sale of One Neck and certain ILECs. TDS Telecom is continuing its fiber deployment adding 14,000 marketable fiber service addresses in the quarter while also investing in programs to streamline operations, enhance the customer experience and improve margins over time. And the tower business is continuing to grow the number of colocations and revenues, with third-party tower revenues increasing 6% in the quarter." 

Announced Transactions and Exploration of Strategic Alternatives for UScellular

On May 24, 2024, TDS and UScellular entered into a Securities Purchase Agreement to sell UScellular's wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile). The transaction is expected to close in mid-2025, subject to regulatory approval and the satisfaction of customary closing conditions. When the proposed T-Mobile transaction closes, UScellular expects the UScellular Board of Directors to declare the first of potentially several, special dividends to UScellular shareholders.

On October 17, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. Additionally, UScellular also entered into agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for the sale of select spectrum licenses.

On November 6, 2024, UScellular, and certain subsidiaries of UScellular, entered into a License Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T), a subsidiary of AT&T, Inc. to sell certain 3.45 GHz and 700 MHz wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant AT&T certain rights to lease and sub-lease such licenses prior to the transaction close.

Due to the pending transaction with T-Mobile, UScellular is not providing 2025 financial guidance.

2025 Estimated Results
TDS' current estimates of full-year 2025 results for TDS Telecom are shown below. Such estimates represent management's view as of May 2, 2025 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.

2025 Estimated Results
TDS Telecom	Previous	Current
(Dollars in millions)
Total operating revenues	$1,030-$1,070	Unchanged
Adjusted OIBDA1 (Non-GAAP)	$310-$350	Unchanged
Adjusted EBITDA1 (Non-GAAP)	$320-$360	Unchanged
Capital expenditures	$375-$425	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 2025 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.

	2025 Estimated Results		Actual Results
TDS Telecom			Three Months Ended March 31, 2025		Year Ended December 31, 2024
(Dollars in millions)
Net income (GAAP)	N/A		$                                   4		$                                 85
Add back:
Income tax expense	N/A		1		35
Income before income taxes (GAAP)	$20-$60		$                                   5		$                               120
Add back:
Interest expense	—		(1)		(5)
Depreciation, amortization and accretion expense	300		71		271
EBITDA (Non-GAAP)1	$320-$360		$                                 75		$                               385
Add back or deduct:
Loss on impairment of intangible assets	—		—		1
(Gain) loss on asset disposals, net	—		2		12
(Gain) loss on sale of business and other exit costs, net	—		—		(49)
Adjusted EBITDA (Non-GAAP)1	$320-$360		$                                 76		$                               350
Deduct:
Interest and dividend income	5		1		5
Other, net	5		2		4
Adjusted OIBDA (Non-GAAP)1	$310-$350		$                                 73		$                               340

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 May 2, 2025 at 9:00 a.m. Central Time.

• Access the live call on the Events & Presentations page of investors.tdsinc.com or at
  https://events.q4inc.com/attendee/224819726
• Access the call by phone at (888)330-2384, conference ID: 1328528.

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 wireless, broadband, video and voice to approximately 5.5 million connections nationwide through its businesses, UScellular and TDS Telecom. Founded in 1969 and headquartered in Chicago, TDS employed approximately 7,800 associates as of March 31, 2025.

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, including with respect to the expected closing date of the transaction with T-Mobile. 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 the announced transactions whereby UScellular has agreed to sell its wireless operations and selected spectrum assets will be successfully completed; whether any such strategic alternative will result in additional value for TDS or its shareholders and whether the process will have an adverse impact on TDS' businesses; intense competition; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances 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 UScellular indebtedness or comply with the terms of debt covenants; the effect on TDS' business if the collateral securing its secured term loan is foreclosed upon; conditions in the U.S. telecommunications industry; the value of assets and investments; 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 the impact, duration and severity of public health emergencies. 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
UScellular: www.uscellular.com
TDS Telecom: www.tdstelecom.com

 

United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended	3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Retail Connections
Postpaid
Total at end of period1	3,946,000		3,985,000		3,999,000		4,027,000		4,051,000
Gross additions	105,000		140,000		123,000		117,000		106,000
Handsets	68,000		93,000		84,000		73,000		63,000
Connected devices	37,000		47,000		39,000		44,000		43,000
Net additions (losses)1	(39,000)		(14,000)		(28,000)		(24,000)		(44,000)
Handsets	(38,000)		(19,000)		(28,000)		(29,000)		(47,000)
Connected devices	(1,000)		5,000		—		5,000		3,000
ARPU2	$        52.06		$        51.73		$        52.04		$        51.45		$        51.96
ARPA3	$      132.25		$      131.10		$      131.81		$      130.41		$      132.00
Handset upgrade rate4	3.1 %		4.8 %		3.5 %		4.1 %		4.5 %
Churn rate5	1.21 %		1.29 %		1.25 %		1.16 %		1.22 %
Handsets	1.03 %		1.08 %		1.07 %		0.97 %		1.03 %
Connected devices	2.40 %		2.67 %		2.47 %		2.47 %		2.52 %
Prepaid
Total at end of period1	431,000		448,000		452,000		439,000		436,000
Gross additions	38,000		46,000		57,000		50,000		41,000
Net additions (losses)1	(17,000)		(4,000)		13,000		3,000		(13,000)
ARPU2	$        30.76		$        30.59		$        32.01		$        32.37		$        32.25
Churn rate5	4.17 %		3.70 %		3.30 %		3.60 %		4.06 %
Market penetration at end of period
Consolidated operating population	31,390,000		32,550,000		32,550,000		32,550,000		32,550,000
Consolidated operating penetration6	17 %		15 %		15 %		15 %		14 %
Capital expenditures (millions)	$              53		$           162		$           120		$           165		$           131
Total cell sites in service	7,009		7,010		7,007		6,990		6,995
Owned towers	4,413		4,409		4,407		4,388		4,382
Number of colocations7	2,469		2,444		2,418		2,392		2,397
Tower tenancy rate8	1.56		1.55		1.55		1.55		1.55

1	First quarter 2024 connections were adjusted to remove subscribers that could no longer access the UScellular network due to the CDMA shutdown. This resulted in 11,000 and 2,000 subscribers removed from the postpaid and prepaid base, respectively, that are not included in Net additions (losses) for the quarter.
2	Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:
	•	Postpaid ARPU consists of total postpaid service revenues and postpaid connections.
	•	Prepaid ARPU consists of total prepaid service revenues and prepaid connections.
3	Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.
4	Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.
5	Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.
6	Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.
7	Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower.
8	Average number of tenants that lease space on company-owned towers, measured on a per-tower basis.

 

TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended	3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Residential connections
Broadband
Incumbent Fiber	119,700		118,500		115,900		113,100		109,800
Incumbent Copper	112,600		116,900		125,600		130,600		135,300
Expansion Fiber	133,200		126,100		115,300		107,800		100,400
Cable	190,200		191,500		195,900		198,500		202,400
Total Broadband1	555,800		553,000		552,700		550,000		547,900
Video	118,700		121,000		122,100		124,800		128,800
Voice	256,900		261,600		271,300		275,600		279,400
Total Residential connections	931,400		935,600		946,100		950,400		956,100
Commercial connections	187,600		190,500		197,200		201,500		206,200
Total connections2	1,119,000		1,126,100		1,143,300		1,152,000		1,162,200
Total residential broadband net adds	2,800		7,900		2,700		2,100		6,400
Residential fiber churn3	0.9 %		1.0 %		1.3 %		1.2 %		1.0 %
Total residential broadband churn	1.3 %		1.4 %		1.7 %		1.7 %		1.4 %
Residential revenue per connection4	$        65.67		$        64.72		$        65.41		$        65.26		$        64.58
Capital expenditures (millions)	$             59		$             82		$             78		$             78		$             87

Numbers may not foot due to rounding.
1	Total residential broadband connections increased by 8,100 during the three months ended March 31, 2024, due primarily to net additions of 6,400 as well as certain other adjustments.
2	Q1 2024 total connections include 18,100 subscribers that were part of the 2024 divestitures.
3	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.
4	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 March 31,
	2025		2024		2025 vs. 2024
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular	$       891		$       950		(6) %
TDS Telecom	257		266		(3) %
All Other1	6		46		(87) %
	1,154		1,262		(9) %
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion	686		729		(6) %
Depreciation, amortization and accretion	163		165		(2) %
(Gain) loss on asset disposals, net	2		6		(65) %
(Gain) loss on license sales and exchanges, net	(1)		(1)		18 %
	850		899		(5) %
TDS Telecom
Expenses excluding depreciation, amortization and accretion	184		173		6 %
Depreciation, amortization and accretion	71		65		10 %
(Gain) loss on asset disposals, net	2		2		(9) %
	258		240		7 %
All Other1
Expenses excluding depreciation and amortization	13		53		(76) %
Depreciation and amortization	—		4		(74) %
(Gain) loss on asset disposals, net	—		(1)		N/M
(Gain) loss on sale of business and other exit costs, net	(1)		—		N/M
	11		56		(77) %
Total operating expenses	1,119		1,195		(6) %
Operating income (loss)
UScellular	41		51		(19) %
TDS Telecom	—		27		N/M
All Other1	(6)		(11)		38 %
	35		67		(49) %
Other income (expense)
Equity in earnings of unconsolidated entities	37		42		(14) %
Interest and dividend income	6		5		28 %
Interest expense	(61)		(57)		(3) %
Other, net	3		1		N/M
Total other expense	(15)		(9)		(46) %
Income before income taxes	20		58		(65) %
Income tax expense	8		20		(57) %
Net income	12		38		(69) %
Less: Net income attributable to noncontrolling interests, net of tax	5		9		(49) %
Net income attributable to TDS shareholders	7		29		(74) %
TDS Preferred Share dividends	17		17		—
Net income (loss) attributable to TDS common shareholders	$       (10)		$         12		N/M
Basic weighted average shares outstanding	115		113		1 %
Basic earnings (loss) per share attributable to TDS common shareholders	$    (0.09)		$      0.11		N/M
Diluted weighted average shares outstanding	115		117		(2) %
Diluted earnings (loss) per share attributable to TDS common shareholders	$    (0.09)		$      0.10		N/M

N/M - Percentage change not meaningful.
Numbers may not foot due to rounding.
1	Consists of TDS corporate, intercompany eliminations and all other business operations not included in the UScellular and TDS Telecom segments.

 

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
	Three Months Ended March 31,
	2025		2024
(Dollars in millions)
Cash flows from operating activities
Net income	$                 12		$                 38
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	234		234
Bad debts expense	21		31
Stock-based compensation expense	28		14
Deferred income taxes, net	7		14
Equity in earnings of unconsolidated entities	(37)		(42)
Distributions from unconsolidated entities	11		22
(Gain) loss on asset disposals, net	4		7
(Gain) loss on sale of business and other exit costs, net	(1)		—
(Gain) loss on license sales and exchanges, net	(1)		(1)
Other operating activities	2		1
Changes in assets and liabilities from operations
Accounts receivable	1		27
Equipment installment plans receivable	38		2
Inventory	—		24
Accounts payable	(17)		(35)
Customer deposits and deferred revenues	(7)		6
Accrued taxes	1		4
Accrued interest	9		9
Other assets and liabilities	(119)		(131)
Net cash provided by operating activities	186		224
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(129)		(235)
Cash paid for licenses	(2)		(11)
Cash received from divestitures	8		—
Net cash used in investing activities	(123)		(246)
Cash flows from financing activities
Issuance of long-term debt	—		140
Repayment of long-term debt	(8)		(57)
Tax payments, net of cash receipts, for TDS stock-based compensation awards	(6)		(1)
Tax payments, net of cash receipts, for UScellular stock-based compensation awards	(7)		—
Repurchase of UScellular Common Shares	(21)		—
Dividends paid to TDS shareholders	(22)		(39)
Distributions to noncontrolling interests	(2)		(2)
Cash paid for software license agreements	(10)		(9)
Other financing activities	—		(2)
Net cash provided by (used in) financing activities	(76)		30
Net increase (decrease) in cash, cash equivalents and restricted cash	(13)		8
Cash, cash equivalents and restricted cash
Beginning of period	384		270
End of period	$               371		$               278

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
	March 31, 2025		December 31, 2024
(Dollars in millions)
Current assets
Cash and cash equivalents	$                                348		$                                364
Accounts receivable, net	1,004		1,041
Inventory, net	182		183
Prepaid expenses	98		72
Income taxes receivable	3		2
Other current assets	38		33
Total current assets	1,673		1,695
Assets held for sale	14		—
Licenses	4,590		4,588
Other intangible assets, net	154		161
Investments in unconsolidated entities	527		500
Property, plant and equipment, net	4,871		4,994
Operating lease right-of-use assets	978		982
Other assets and deferred charges	729		762
Total assets	$                           13,536		$                           13,682

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
	March 31, 2025		December 31, 2024
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt	$                                 35		$                                 31
Accounts payable	247		280
Customer deposits and deferred revenues	276		283
Accrued interest	25		16
Accrued taxes	41		39
Accrued compensation	62		150
Short-term operating lease liabilities	151		153
Other current liabilities	123		138
Total current liabilities	960		1,090
Liabilities held for sale	5		—
Deferred liabilities and credits
Deferred income tax liability, net	987		981
Long-term operating lease liabilities	867		867
Other deferred liabilities and credits	807		809
Long-term debt, net	4,042		4,051
Noncontrolling interests with redemption features	16		16
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share	1		1
Capital in excess of par value	2,581		2,574
Preferred Shares, par value $0.01 per share	1,074		1,074
Treasury shares, at cost	(414)		(425)
Accumulated other comprehensive income	18		18
Retained earnings	1,818		1,849
Total TDS shareholders' equity	5,078		5,091
Noncontrolling interests	774		777
Total equity	5,852		5,868
Total liabilities and equity	$                          13,536		$                          13,682

 

Balance Sheet Highlights
(Unaudited)
	March 31, 2025
			TDS		TDS Corporate		Intercompany		TDS
	UScellular		Telecom		& Other		Eliminations		Consolidated
(Dollars in millions)
Cash and cash equivalents	$                 182		$                 124		$                  167		$                (125)		$                 348
Licenses and other intangible assets	$              4,581		$                 157		$                      6		$                    —		$              4,744
Investment in unconsolidated entities	479		4		51		(7)		527
	$              5,060		$                 161		$                    57		$                    (7)		$              5,271
Property, plant and equipment, net	$              2,394		$              2,459		$                    18		$                    —		$              4,871
Long-term debt, net:
Current portion	$                   26		$                    —		$                      9		$                    —		$                   35
Non-current portion	2,829		3		1,210		—		4,042
	$              2,855		$                     3		$               1,219		$                    —		$              4,077

 

United States Cellular Corporation
Segment Results
(Unaudited)
	Three Months Ended March 31,
UScellular	2025		2024		2025 vs. 2024
(Dollars in millions)
Operating Revenues
Wireless	$       864		$       925		(7) %
Towers	61		58		5 %
Intra-company eliminations	(34)		(33)		(3) %
Total operating revenues	891		950		(6) %
Operating expenses
Wireless	844		896		(6) %
Towers	40		36		11 %
Intra-company eliminations	(34)		(33)		(3) %
Total operating expenses	850		899		(5) %
Operating income	$         41		$         51		(19) %
Adjusted OIBDA (Non-GAAP)	$       215		$       228		(6) %
Adjusted EBITDA (Non-GAAP)	$       254		$       272		(7) %
Capital expenditures	$         53		$       131		(60) %

 

United States Cellular Corporation
Segment Results
(Unaudited)
	Three Months Ended March 31,
UScellular Wireless	2025		2024		2025 vs. 2024
(Dollars in millions)
Retail service	$       660		$       678		(3) %
Other	54		51		8 %
Service revenues	714		729		(2) %
Equipment sales	150		196		(24) %
Total operating revenues	864		925		(7) %
System operations (excluding Depreciation, amortization and accretion reported below)	191		197		(3) %
Cost of equipment sold	178		216		(18) %
Selling, general and administrative	322		324		—
Depreciation, amortization and accretion	152		154		(2) %
(Gain) loss on asset disposals, net	2		6		(73) %
(Gain) loss on license sales and exchanges, net	(1)		(1)		18 %
Total operating expenses	844		896		(6) %
Operating income	$         20		$         29		(30) %
Adjusted OIBDA (Non-GAAP)	$       182		$       195		(7) %
Adjusted EBITDA (Non-GAAP)	$       182		$       195		(7) %
Capital expenditures	$         51		$       127		(60) %
	Three Months Ended March 31,
UScellular Towers	2025		2024		2025 vs. 2024
(Dollars in millions)
Third-party revenues	$         27		$         25		6 %
Intra-company revenues	34		33		3 %
Total tower revenues	61		58		5 %
System operations (excluding Depreciation, amortization and accretion reported below)	19		18		4 %
Selling, general and administrative	10		7		33 %
Depreciation, amortization and accretion	11		11		5 %
Total operating expenses	40		36		11 %
Operating income	$         21		$         22		(5) %
Adjusted OIBDA (Non-GAAP)	$         33		$         33		(1) %
Adjusted EBITDA (Non-GAAP)	$         33		$         33		(1) %
Capital expenditures	$           2		$           4		(42) %

 

TDS Telecom Highlights
(Unaudited)
	Three Months Ended March 31,
	2025		2024		2025 vs. 2024
(Dollars in millions)
Operating revenues
Residential
Incumbent	$         86		$         90		(5) %
Expansion	34		26		33 %
Cable	64		70		(8) %
Total residential	184		185		(1) %
Commercial	35		37		(6) %
Wholesale	39		44		(12) %
Total service revenues	257		266		(3) %
Equipment revenues	—		—		23 %
Total operating revenues	257		266		(3) %
Cost of services	101		98		3 %
Cost of equipment and products	—		—		47 %
Selling, general and administrative expenses	83		75		10 %
Depreciation, amortization and accretion	71		65		10 %
(Gain) loss on asset disposals, net	2		2		(9) %
Total operating expenses	258		240		7 %
Operating income	$         —		$         27		N/M

N/M - Percentage change not meaningful

Numbers may not foot due to rounding.

 

Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
	Three Months Ended March 31,
TDS CONSOLIDATED	2025		2024
(Dollars in millions)
Cash flows from operating activities (GAAP)	$                 186		$                 224
Cash paid for additions to property, plant and equipment	(129)		(235)
Cash paid for software license agreements	(10)		(9)
Free cash flow (Non-GAAP)1	$                   47		$                  (20)
	Three Months Ended March 31,
UScellular	2025		2024
(Dollars in millions)
Cash flows from operating activities (GAAP)	$                 160		$                 203
Cash paid for additions to property, plant and equipment	(72)		(133)
Cash paid for software license agreements	(9)		(9)
Free cash flow (Non-GAAP)1	$                   79		$                   61

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 and Adjusted OIBDA
(Unaudited)

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes. Income and expense items below Operating income are not provided at the individual segment level for UScellular Wireless and UScellular Towers; therefore, the reconciliations begin with EBITDA and the most directly comparable GAAP measure is Operating income rather than Net income at the segment level.

	Three Months Ended March 31,
UScellular	2025		2024
(Dollars in millions)
Net income (GAAP)	$                    20		$                   24
Add back or deduct:
Income tax expense	20		28
Income before income taxes (GAAP)	40		52
Add back:
Interest expense	40		43
Depreciation, amortization and accretion expense	163		165
EBITDA (Non-GAAP)	243		260
Add back or deduct:
Expenses related to strategic alternatives review	10		7
(Gain) loss on asset disposals, net	2		6
(Gain) loss on license sales and exchanges, net	(1)		(1)
Adjusted EBITDA (Non-GAAP)	254		272
Deduct:
Equity in earnings of unconsolidated entities	36		42
Interest and dividend income	3		2
Adjusted OIBDA (Non-GAAP)	$                  215		$                 228
	Three Months Ended March 31,
UScellular Wireless	2025		2024
(Dollars in millions)
EBITDA (Non-GAAP)	$                  172		$                 183
Add back or deduct:
Expenses related to strategic alternatives review	9		7
(Gain) loss on asset disposals, net	2		6
(Gain) loss on license sales and exchanges, net	(1)		(1)
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)	182		195
Deduct:
Depreciation, amortization and accretion	152		154
Expenses related to strategic alternatives review	9		7
(Gain) loss on asset disposals, net	2		6
(Gain) loss on license sales and exchanges, net	(1)		(1)
Operating income (GAAP)	$                    20		$                   29
	Three Months Ended March 31,
UScellular Towers	2025		2024
(Dollars in millions)
EBITDA (Non-GAAP)	$                    32		$                   33
Add back or deduct:
Expenses related to strategic alternatives review	1		—
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)	33		33
Deduct:
Depreciation, amortization and accretion	11		11
Expenses related to strategic alternatives review	1		—
Operating income (GAAP)	$                    21		$                   22
	Three Months Ended March 31,
TDS Telecom	2025		2024
(Dollars in millions)
Net income (GAAP)	$                      4		$                   24
Add back or deduct:
Income tax expense	1		7
Income before income taxes (GAAP)	5		31
Add back:
Interest expense	(1)		(2)
Depreciation, amortization and accretion expense	71		65
EBITDA (Non-GAAP)	75		93
Add back or deduct:
(Gain) loss on asset disposals, net	2		2
Adjusted EBITDA (Non-GAAP)	76		95
Deduct:
Interest and dividend income	1		1
Other, net	2		1
Adjusted OIBDA (Non-GAAP)	$                   73		$                   93

Numbers may not foot due to rounding.

 

View original content:https://www.prnewswire.com/news-releases/tds-reports-first-quarter-2025-results-302444913.html

SOURCE Telephone and Data Systems, Inc.

FAQ

What were TDS's Q1 2025 earnings results?

TDS reported Q1 2025 revenues of $1,154M (down from $1,262M YoY) and a net loss of $10M ($(0.09) per share), compared to net income of $12M ($0.10 per share) in Q1 2024.

When will the TDS-T-Mobile wireless operations sale close?

The sale of UScellular's wireless operations to T-Mobile is expected to close in mid-2025, subject to regulatory approval and customary closing conditions.

What is TDS Telecom's 2025 revenue guidance?

TDS Telecom maintains its 2025 guidance with total operating revenues of $1,030-$1,070 million and Adjusted EBITDA of $320-$360 million.

How many fiber service addresses did TDS add in Q1 2025?

TDS Telecom added 14,000 marketable fiber services addresses and gained 2,800 residential broadband net additions in Q1 2025.

What spectrum sale agreements does TDS have in place?

TDS has spectrum sale agreements with T-Mobile, Verizon (for AWS, Cellular and PCS licenses), AT&T (for 3.45 GHz and 700 MHz licenses), Nsight Spectrum, and Nex-Tech Wireless.