TDS reports fourth quarter and full year 2025 results

Rhea-AI Summary

Telephone and Data Systems (NYSE:TDS) reported Q4 and full-year 2025 results and set 2026 estimates for TDS Telecom and Array. Key actions included the sale of the wireless business, a $1.018 billion spectrum sale to AT&T, a $10.25 per share special dividend, and repurchases of 1.77 million shares for $67.4 million.

TDS Telecom ended 2025 with 1.06 million marketable fiber addresses, deployed 140,000 addresses in 2025, and raised its long-term fiber goal to 2.1 million addresses.

Positive

• Repurchased 1,765,863 shares for $67.4 million
• Completed $1.018 billion spectrum sale to AT&T
• Paid $10.25 per share special dividend on Feb 2, 2026
• TDS Telecom reached 1.06 million marketable fiber addresses
• Deployed 140,000 new marketable fiber addresses in 2025
• Raised long-term fiber service goal to 2.1 million addresses
• Array site rental revenues grew 51% year-over-year
• Net income improved to $48.2M in 2025 from $(141.4)M in 2024

Negative

• TDS Telecom 2026 capex guidance $550–$600M versus $406M actual
• TDS consolidated revenues declined to $1,228.2M in 2025 from $1,297.0M

News Market Reaction – TDS

-0.55%

2 alerts

-0.55% News Effect

-$29M Valuation Impact

$5.26B Market Cap

1.17K Volume

On the day this news was published, TDS declined 0.55%, reflecting a mild negative market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $29M from the company's valuation, bringing the market cap to $5.26B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 revenue: $330.7M Q4 2025 EPS (cont.): $0.32 2025 net income (cont.): $48.2M +5 more

8 metrics

Q4 2025 revenue $330.7M Total operating revenues from continuing operations vs $295.3M in Q4 2024

Q4 2025 EPS (cont.) $0.32 Diluted EPS from continuing operations vs $0.01 in Q4 2024

2025 net income (cont.) $48.2M Net income attributable to common shareholders vs $(141.4)M in 2024

2025 revenue (cont.) $1,228.2M Full-year operating revenues from continuing ops vs $1,297.0M in 2024

Spectrum sale to AT&T $1.018B Array wireless spectrum sale closed January 13, 2026

Array special dividend $10.25/share Special dividend paid February 2, 2026

TDS Telecom 2026 revenue guide $1,015–$1,055M 2026 total operating revenues guidance vs $1,038M in 2025

Array 2026 revenue guide $200–$215M 2026 total operating revenues guidance vs $163M in 2025

Market Reality Check

Price: $45.57 Vol: Volume 1,933,351 is 2.11x...

high vol

$45.57 Last Close

Volume Volume 1,933,351 is 2.11x the 20-day average of 916,339, showing elevated positioning ahead of the release. high

Technical Shares at 45.54 are trading above the 200-day MA of 38.77 and sit 4.72% below the 52-week high.

Peers on Argus

Sector peers were mixed: PHI and VEON were up, while Liberty Global share classe...

1 Down

Sector peers were mixed: PHI and VEON were up, while Liberty Global share classes (LBTYA, LBTYB, LBTYK) were down, and only LBTYA appeared in momentum scans. This points to a stock-specific setup rather than a broad telecom move.

Previous Earnings Reports

5 past events · Latest: Nov 07 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 07	Q3 2025 earnings	Negative	-2.1%	Q3 2025 revenue decline but swing from large loss to solid profit.
Aug 11	Q2 2025 earnings	Negative	-0.1%	Q2 revenues down year-over-year with continued, though smaller, net loss.
May 02	Q1 2025 earnings	Negative	-8.8%	Q1 revenue decline and shift from prior-year profit to net loss.
Feb 21	FY 2024 earnings	Negative	-4.2%	Q4 and full-year 2024 revenue declines and net losses highlighted.
Nov 01	Q3 2024 earnings	Negative	-7.6%	Q3 2024 revenue drop and larger loss, including spectrum impairment.

Pattern Detected

Earnings headlines have often coincided with negative next-day moves, even when results highlighted strategic progress and improving profitability.

Recent Company History

Over the last five earnings cycles, TDS has been reshaping its portfolio, moving from wireless-centric operations toward fiber and tower infrastructure. Prior reports detailed UScellular wireless divestitures, spectrum deals, and ongoing fiber buildouts at TDS Telecom, while losses narrowed or flipped to profits. Despite this fundamental transition, earnings days saw average moves of -4.59%. Today’s full-year 2025 results and 2026 guidance extend that narrative, emphasizing fiber growth and Array monetization.

Historical Comparison

-4.6% avg move · In the past five earnings releases, TDS averaged a -4.59% move. Ahead of this 2025 results release, ...

earnings

-4.6%

Average Historical Move earnings

In the past five earnings releases, TDS averaged a -4.59% move. Ahead of this 2025 results release, shares were up 0.8%, suggesting more optimistic positioning than prior earnings days.

Across these earnings reports, TDS has shifted from legacy wireless toward fiber and tower infrastructure, closing major wireless sales, expanding TDS Telecom fiber coverage, and building Array’s tower revenues while gradually improving headline profitability.

Market Pulse Summary

This announcement highlights TDS’s transition year: 2025 continuing-operations revenue of $1,228.2M,...

Analysis

This announcement highlights TDS’s transition year: 2025 continuing-operations revenue of $1,228.2M, a swing to $48.2M in net income, and major portfolio moves including a $1.018B spectrum sale and a $10.25-per-share special dividend via Array. TDS Telecom’s 2026 guidance of $1,015–$1,055M revenue and continued fiber investment, alongside Array’s growth targets, underscores execution and capital allocation as key metrics to watch in upcoming quarters.

Key Terms

ebitda, adjusted ebitda, adjusted oibda, non-gaap, +4 more

8 terms

ebitda financial

"The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

adjusted ebitda financial

"The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted oibda financial

"The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA"

Adjusted OIBDA is a company’s core operating profit before subtracting depreciation and amortization, further cleaned up by removing one-time or unusual items so it shows recurring cash-earning power. Think of it like measuring a car’s steady fuel efficiency after ignoring a flat tire or a rare detour—investors use it to compare underlying operational performance across periods and companies without distortion from non-recurring events or accounting timing.

non-gaap financial

"Adjusted OIBDA 1 (Non-GAAP) | $300-$340 | | $319"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

gaap financial

"Net income from continuing operations (GAAP) | | N/A"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

income before income taxes financial

"Income (loss) before income taxes (GAAP) | | ( $15 ) -$25"

Income before income taxes is a company’s profit after subtracting operating costs, interest and other expenses but before subtracting the tax bill — essentially the amount of earnings that will be taxed. Investors use it to see a company’s core profitability independent of tax situations; like checking a paycheck amount before payroll taxes, it lets you compare performance across firms and periods without tax-policy noise.

capital expenditures financial

"Capital expenditures | $550-$600 | | $406"

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

equity in earnings of unconsolidated entities financial

"Equity in earnings of unconsolidated entities | | — | | —"

A company's share of profit or loss from investments in other businesses it does not fully own or combine into its financial statements. Think of it as reporting the portion of a partner’s earnings that belongs to you—recorded on your income statement even though you don’t control that company. Investors watch this line because it can materially affect reported earnings and reveals reliance on outside businesses for growth or risk exposure.

AI-generated analysis. Not financial advice.

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 teleconference on 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 Results		Actual Results for 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 Results		Actual Results for 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 Results		Actual Results for the Year Ended December 31, 2025		2026 Estimated Results		Actual Results for the Year Ended 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.

• Access the live call on the Events & Presentations page of investors.tdsinc.com or at https://events.q4inc.com/attendee/189864142

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 colocations1	4,572		4,517
Tower tenancy rate2	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 connections1	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 churn2	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 connection3	$        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 December 31,						Year Ended December 31,
	2025		2024		2025 vs. 2024		2025		2024		2025 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 Other1	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 Other1
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 Other1	(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 attributable to noncontrolling interests, net of tax	7,839		2,163		N/M		33,742		(9,150)		N/M
Net income (loss) from continuing operations attributable to TDS shareholders	$     54,525		$    18,311		N/M		$   117,404		$    (72,171)		N/M
Net income (loss) from discontinued operations	$       1,246		$   (13,313)		N/M		$  (130,904)		$     54,840		N/M
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests, net of tax	(701)		(865)		(19) %		(7,264)		10,374		N/M
Net income (loss) from discontinued operations attributable to TDS shareholders	1,947		(12,448)		N/M		(123,640)		44,466		N/M
Net income (loss)	63,610		7,161		N/M		20,242		(26,481)		N/M
Less: Net income attributable to noncontrolling interests, net of tax	7,138		1,298		N/M		26,478		1,224		N/M
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 operations attributable to TDS common shareholders	$         0.32		$         0.01		N/M		$         0.42		$        (1.24)		N/M
Basic earnings (loss) per share from discontinued operations attributable to TDS common shareholders	$         0.02		$        (0.11)		N/M		$        (1.08)		$         0.39		N/M
Basic earnings (loss) per share attributable to TDS common shareholders	$         0.34		$       (0.10)		N/M		$        (0.66)		$        (0.85)		23 %
Diluted weighted average shares outstanding	117,516		118,273		(1) %		118,563		113,714		4 %
Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders	$         0.32		$         0.01		N/M		$         0.39		$        (1.24)		N/M
Diluted earnings (loss) per share from discontinued operations attributable to TDS common shareholders	$         0.01		$        (0.11)		N/M		$        (1.04)		$         0.39		N/M
Diluted earnings (loss) per share attributable to TDS common shareholders	$         0.33		$        (0.10)		N/M		$        (0.65)		$        (0.85)		23 %
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 Telecom		Array		TDS Corporate & Other		Intercompany Eliminations		TDS Consolidated
(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 December 31,						Year Ended December 31,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 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, amortization and accretion reported below)	99,351		103,047		(4) %		399,616		399,815		—
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 December 31,						Year Ended December 31,
Array	2025		2024		2025 vs. 2024		2025		2024		2025 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, amortization and accretion reported below)	22,823		20,174		13 %		79,485		72,997		9 %
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 December 31,				Year Ended 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 December 31,				Year Ended 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.

FAQ

What did TDS (NYSE:TDS) report for full-year 2025 net income and revenue?

TDS reported net income attributable to common shareholders of $48.2 million for 2025, with total operating revenues of $1,228.2 million. According to the company, revenue for 2024 was $1,297.0 million, showing a year-over-year comparison.

How many marketable fiber service addresses did TDS Telecom have at year-end 2025 (TDS)?

TDS Telecom ended 2025 with 1.06 million marketable fiber service addresses, after deploying 140,000 in 2025. According to the company, it raised its long-term target to 2.1 million addresses to guide future expansion.

What material capital actions did TDS announce in February 2026 that affect shareholders (TDS)?

TDS paid a $10.25 per share special dividend and repurchased 1,765,863 shares for $67.4 million. According to the company, these actions followed the sale of its wireless business and improved balance sheet flexibility.

What are TDS Telecom's 2026 financial estimates for revenue and adjusted EBITDA (TDS)?

TDS Telecom's 2026 estimates include total operating revenues of $1,015–$1,055 million and adjusted EBITDA of $310–$350 million. According to the company, 2025 actuals were $1,038 million in revenue and $330 million adjusted EBITDA.

How did Array perform in 2025 and what is its 2026 outlook (TDS/Array)?

Array reported 51% year-over-year site rental revenue growth and 2025 adjusted EBITDA of $194 million. According to the company, Array's 2026 estimates include $200–$215 million in revenues and adjusted EBITDA of $200–$215 million.