TDS reports second quarter 2025 results

Rhea-AI Summary

TDS (NYSE:TDS) reported Q2 2025 financial results with total operating revenues of $1,186 million, down from $1,238 million year-over-year. The company posted a reduced net loss of $(5) million, or $(0.05) per share, compared to $(14) million loss in Q2 2024.

Key developments include Array (formerly US Cellular) completing the sale of wireless operations to T-Mobile for $4.3 billion and declaring a $23.00 per share special dividend. TDS Telecom appointed Ken Dixon as President and CEO, delivered 27,000 marketable fiber services addresses, and added 3,900 residential broadband net additions in Q2. Third-party tower revenues increased by 12%.

For 2025, TDS Telecom expects total operating revenues of $1,030-$1,050 million and Adjusted EBITDA of $320-$350 million.

Positive

• Completed sale of wireless operations to T-Mobile for $4.3 billion
• Special dividend of $23.00 per share announced
• Third-party tower revenues increased 12% year-over-year
• Net loss reduced to $(5) million from $(14) million year-over-year
• Added 10,300 residential broadband net adds from fiber markets
• Delivered 27,000 new marketable fiber services addresses in Q2

Negative

• Total operating revenues declined to $1,186M from $1,238M year-over-year
• TDS Telecom revenues down 1% due to divestitures
• Lowered full-year revenue guidance for TDS Telecom to $1,030-$1,050M from previous $1,030-$1,070M
• Reduced Adjusted OIBDA guidance to $310-$340M from previous $310-$350M

Insights

Financial Analyst

TDS narrows quarterly losses amid strategic transformation with $4.3B T-Mobile deal and fiber expansion, despite revenue decline.

TDS reported $1,186 million in Q2 2025 revenue, down from $1,238 million year-over-year, while narrowing its net loss to $(5) million ($(0.05) per share) from $(14) million ($(0.13) per share) in Q2 2024. The 4.2% revenue decline was partially due to the divestiture of their Hosted and Managed Services operations in 2024, which contributed $38 million in Q2 2024 revenue.

The most significant development is the completed sale of Array's (formerly United States Cellular) wireless operations to T-Mobile for $4.3 billion in combined cash and assumed debt. Following this transaction, Array is distributing a substantial $23.00 per share special dividend to shareholders. The company retains its tower infrastructure business, which saw third-party tower revenues increase by 12% year-over-year.

On the telecom side, TDS Telecom continues executing its fiber broadband strategy, delivering 27,000 new marketable fiber addresses in Q2 and adding 3,900 total residential broadband net additions. The fiber segment specifically contributed 10,300 residential broadband net adds. However, TDS Telecom's overall revenue declined 1%, affected by divestitures of non-strategic assets.

The company maintained its 2025 guidance for TDS Telecom with slight downward adjustments to the upper end of revenue and adjusted OIBDA/EBITDA ranges. Current revenue projections are $1,030-$1,050 million (down from $1,030-$1,070 million), with adjusted OIBDA of $310-$340 million (down from $310-$350 million). Capital expenditure guidance remains unchanged at $375-$425 million, indicating continued commitment to infrastructure investment despite revenue pressure.

With the T-Mobile transaction complete and new leadership at TDS Telecom, the company is pivoting from a wireless-centric model toward a focused strategy built around fiber broadband expansion and tower infrastructure growth.

CHICAGO, Aug. 11, 2025 /PRNewswire/ -- 

As previously announced, TDS will hold a teleconference on August 11, 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 $1,186 million for the second quarter of 2025, versus $1,238 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(5) million and $(0.05), respectively, for the second quarter of 2025 compared to $(14) million and $(0.13), respectively, in the same period one year ago.

Recent Highlights*

Array

• On August 1, 2025, United States Cellular Corporation changed its name to Array Digital Infrastructure, Inc.^SM (Array^SM)
• On August 1, 2025, Array completed the sale of its wireless operations and select spectrum assets to T-Mobile for total consideration of $4.3 billion which includes a combination of cash and assumed debt
• Array declared a $23.00 per share special dividend payable to its shareholders on August 19, 2025
• Third-party tower revenues increased 12%
• Pending AT&T and Verizon spectrum transactions are expected to close in 2H 2025 and Q3 2026, respectively, subject to receipt of regulatory approvals and satisfaction of closing conditions

TDS Telecom

• Ken Dixon joined the organization as TDS Telecom President and CEO
• Executing on fiber broadband strategy
  • Delivered 27,000 marketable fiber services addresses in Q2 2025
  • Added 3,900 residential broadband net additions; Grew fiber connections —10,300 residential broadband net adds from fiber markets
• TDS Telecom revenues down 1%, impacted by divestitures of non-strategic assets

*Comparisons are 2Q'24 to 2Q'25 unless otherwise noted. Note that in September 2024, TDS sold its Hosted and Managed Services (HMS) operations. This 2024 transaction affects year-over-year revenue comparisons at the consolidated level. HMS operating revenues were $38 million in Q2 2024.

"TDS has made significant progress on its strategic priorities," said Walter Carlson, TDS President and CEO. "With the successful completion of the T-Mobile transaction, we delivered a key milestone in the company's transformation, and positioned the continuing tower business for growth and value creation. Additionally, we are delighted that Ken Dixon, CEO of TDS Telecom, has joined the organization at a pivotal time for our fiber business. With a growing fiber network and strengthened tower operations, I see tremendous opportunities ahead for the TDS enterprise."

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 August 11, 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.

Array is not providing 2025 financial guidance.

2025 Estimated Results
TDS Telecom	Previous	Current
(Dollars in millions)
Total operating revenues	$1,030-$1,070	$1,030-$1,050
Adjusted OIBDA1 (Non-GAAP)	$310-$350	$310-$340
Adjusted EBITDA1 (Non-GAAP)	$320-$360	$320-$350
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			Six Months Ended June 30, 2025		Year Ended December 31, 2024
(Dollars in millions)
Net income (GAAP)	N/A		$                                 20		$                                 85
Add back:
Income tax expense	N/A		3		35
Income before income taxes (GAAP)	$20-$50		$                                 23		$                               120
Add back:
Interest expense	—		(2)		(5)
Depreciation, amortization and accretion expense	300		145		271
EBITDA (Non-GAAP)1	$320-$350		$                               165		$                               385
Add back or deduct:
Loss on impairment of intangible assets	—		—		1
(Gain) loss on asset disposals, net	—		8		12
(Gain) loss on sale of business and other exit costs, net	—		(8)		(49)
Adjusted EBITDA (Non-GAAP)1	$320-$350		$                               165		$                               350
Deduct:
Interest and dividend income	5		3		5
Other, net	5		4		4
Adjusted OIBDA (Non-GAAP)1	$310-$340		$                               158		$                               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 August 11, 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/378403075
• 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 broadband, video and voice through its TDS Telecom business. Its Array business leases and offers tower space to third-party carriers. 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; whether the previously announced spectrum license sales to Verizon and AT&T will be consummated; whether Array can monetize its remaining spectrum assets; strategic decisions regarding the tower business; intense competition; 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; 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 Array 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, 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; extreme weather events; 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
Array: investors.arrayinc.com
TDS Telecom: www.tdstelecom.com

 

Array Digital Infrastructure, Inc.
Summary Operating Data (Unaudited)
As of or for the Quarter Ended	6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024
Retail Connections
Postpaid
Total at end of period	3,904,000		3,946,000		3,985,000		3,999,000		4,027,000
Gross additions	109,000		105,000		140,000		123,000		117,000
Handsets	70,000		68,000		93,000		84,000		73,000
Connected devices	39,000		37,000		47,000		39,000		44,000
Net additions (losses)	(42,000)		(39,000)		(14,000)		(28,000)		(24,000)
Handsets	(44,000)		(38,000)		(19,000)		(28,000)		(29,000)
Connected devices	2,000		(1,000)		5,000		—		5,000
ARPU1	$        51.91		$        52.06		$        51.73		$        52.04		$        51.45
ARPA2	$      131.89		$      132.25		$      131.10		$      131.81		$      130.41
Handset upgrade rate3	4.2 %		3.1 %		4.8 %		3.5 %		4.1 %
Churn rate4	1.29 %		1.21 %		1.29 %		1.25 %		1.16 %
Handsets	1.12 %		1.03 %		1.08 %		1.07 %		0.97 %
Connected devices	2.36 %		2.40 %		2.67 %		2.47 %		2.47 %
Prepaid
Total at end of period	429,000		431,000		448,000		452,000		439,000
Gross additions	43,000		38,000		46,000		57,000		50,000
Net additions (losses)	(2,000)		(17,000)		(4,000)		13,000		3,000
ARPU1	$        31.72		$        30.76		$        30.59		$        32.01		$        32.37
Churn rate4	3.58 %		4.17 %		3.70 %		3.30 %		3.60 %
Market penetration at end of period
Consolidated operating population	31,390,000		31,390,000		32,550,000		32,550,000		32,550,000
Consolidated operating penetration5	14 %		14 %		14 %		14 %		14 %
Capital expenditures (millions)	$              80		$              53		$           162		$           120		$           165
Total cell sites in service	7,061		7,009		7,010		7,007		6,990
Owned towers	4,418		4,413		4,409		4,407		4,388
Number of colocations6	2,527		2,469		2,444		2,418		2,392
Tower tenancy rate7	1.57		1.56		1.55		1.55		1.55

1	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.
2	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.
3	Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.
4	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.
5	Market penetration is calculated by dividing the number of retail wireless connections at the end of the period by the total estimated population of consolidated operating markets. The methodology for the calculation was updated in the second quarter of 2025 and prior periods were revised to reflect this change.
6	Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower.
7	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	6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024
Residential connections
Broadband
Incumbent Fiber	121,200		119,700		118,500		115,900		113,100
Incumbent Copper	106,500		112,600		116,900		125,600		130,600
Expansion Fiber	141,800		133,200		126,100		115,300		107,800
Cable	188,200		190,200		191,500		195,900		198,500
Total Broadband	557,700		555,800		553,000		552,700		550,000
Video	116,500		118,700		121,000		122,100		124,800
Voice	248,700		256,900		261,600		271,300		275,600
Wireless	1,600		900		100		—		—
Total Residential connections	924,500		932,300		935,700		946,100		950,400
Commercial connections	184,300		187,600		190,500		197,200		201,500
Total connections1	1,108,800		1,119,900		1,126,300		1,143,300		1,152,000
Total residential fiber net adds	10,300		8,300		13,600		10,400		10,700
Total residential broadband net adds	3,900		2,800		7,900		2,700		2,100
Residential fiber churn2	1.1 %		0.9 %		1.0 %		1.3 %		1.2 %
Total residential broadband churn	1.5 %		1.3 %		1.4 %		1.7 %		1.7 %
Residential revenue per connection3	$        65.85		$        65.67		$        64.72		$        65.41		$        65.26
Capital expenditures (millions)	$             90		$             59		$             82		$             78		$             78

Numbers may not foot due to rounding.
1	Q2 2024 total connections include 23,700 connections that were part of subsequent divestitures.
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 June 30,						Six Months Ended June 30,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars and shares in millions, except per share amounts)
Operating revenues
Array	$      916		$      927		(1) %		$ 1,807		$ 1,877		(4) %
TDS Telecom	265		267		(1) %		522		534		(2) %
All Other1	5		44		(88) %		12		89		(88) %
	1,186		1,238		(4) %		2,341		2,500		(6) %
Operating expenses
Array
Expenses excluding depreciation, amortization and accretion	720		713		1 %		1,407		1,442		(2) %
Depreciation, amortization and accretion	163		165		(1) %		325		329		(2) %
(Gain) loss on asset disposals, net	2		5		(53) %		4		11		(60) %
(Gain) loss on license sales and exchanges, net	(4)		8		N/M		(5)		7		N/M
	881		891		(1) %		1,731		1,789		(3) %
TDS Telecom
Expenses excluding depreciation, amortization and accretion	180		178		1 %		364		351		4 %
Depreciation, amortization and accretion	73		67		10 %		145		131		10 %
(Gain) loss on asset disposals, net	6		4		61 %		8		6		39 %
(Gain) loss on sale of business and other exit costs, net	(8)		—		N/M		(8)		—		N/M
	251		248		1 %		508		488		4 %
All Other1
Expenses excluding depreciation and amortization	13		58		(77) %		26		111		(77) %
Depreciation and amortization	—		1		(65) %		2		7		(70) %
(Gain) loss on asset disposals, net	1		—		N/M		—		(1)		(23) %
(Gain) loss on sale of business and other exit costs, net	—		—		N/M		(1)		—		N/M
	14		60		(77) %		28		117		(77) %
Total operating expenses	1,146		1,199		(4) %		2,267		2,394		(5) %
Operating income (loss)
Array	35		36		(4) %		76		88		(13) %
TDS Telecom	14		19		(27) %		14		46		(70) %
All Other1	(9)		(16)		45 %		(16)		(28)		42 %
	40		39		2 %		74		106		(30) %
Other income (expense)
Equity in earnings of unconsolidated entities	43		39		9 %		79		82		(3) %
Interest and dividend income	6		7		(18) %		13		12		1 %
Interest expense	(70)		(73)		5 %		(129)		(131)		2 %
Other, net	2		1		N/M		5		2		N/M
Total other expense	(19)		(26)		28 %		(32)		(35)		8 %
Income before income taxes	21		13		61 %		42		71		(41) %
Income tax expense	3		6		(46) %		12		26		(54) %
Net income	18		7		N/M		30		45		(34) %
Less: Net income attributable to noncontrolling interests, net of tax	6		4		61 %		11		13		(16) %
Net income attributable to TDS shareholders	12		3		N/M		19		32		(41) %
TDS Preferred Share dividends	17		17		—		35		35		—
Net income (loss) attributable to TDS common shareholders	$         (5)		$       (14)		60 %		$     (16)		$       (3)		N/M
Basic weighted average shares outstanding	115		114		1 %		115		113		1 %
Basic earnings (loss) per share attributable to TDS common shareholders	$    (0.05)		$    (0.13)		61 %		$  (0.14)		$  (0.02)		N/M
Diluted weighted average shares outstanding	115		114		1 %		115		113		1 %
Diluted earnings (loss) per share attributable to TDS common shareholders	$    (0.05)		$    (0.13)		58 %		$  (0.15)		$  (0.03)		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 Array and TDS Telecom segments.

 

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
	Six Months Ended June 30,
	2025		2024
(Dollars in millions)
Cash flows from operating activities
Net income	$                 30		$                 45
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	472		467
Bad debts expense	45		51
Stock-based compensation expense	44		29
Deferred income taxes, net	2		16
Equity in earnings of unconsolidated entities	(79)		(82)
Distributions from unconsolidated entities	88		80
(Gain) loss on asset disposals, net	12		16
(Gain) loss on sale of business and other exit costs, net	(9)		—
(Gain) loss on license sales and exchanges, net	(5)		7
Other operating activities	6		5
Changes in assets and liabilities from operations
Accounts receivable	(29)		6
Equipment installment plans receivable	44		5
Inventory	52		54
Accounts payable	(1)		(14)
Customer deposits and deferred revenues	(14)		7
Accrued taxes	4		7
Accrued interest	(1)		5
Other assets and liabilities	(54)		(78)
Net cash provided by operating activities	607		626
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(286)		(451)
Cash paid for licenses	(4)		(15)
Cash received from divestitures	24		—
Other investing activities	2		1
Net cash used in investing activities	(264)		(465)
Cash flows from financing activities
Issuance of long-term debt	—		440
Repayment of long-term debt	(17)		(401)
Tax withholdings, net of cash receipts, for TDS stock-based compensation awards	(25)		(10)
Tax withholdings, net of cash receipts, for Array stock-based compensation awards	(36)		(12)
Repurchase of Array Common Shares	(21)		—
Dividends paid to TDS shareholders	(44)		(61)
Payment of debt issuance costs	(2)		(16)
Distributions to noncontrolling interests	(2)		(3)
Cash paid for software license agreements	(20)		(21)
Other financing activities	(1)		(1)
Net cash used in financing activities	(168)		(85)
Net increase in cash, cash equivalents and restricted cash	175		76
Cash, cash equivalents and restricted cash
Beginning of period	384		270
End of period	$               559		$               346

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
	June 30, 2025		December 31, 2024
(Dollars in millions)
Current assets
Cash and cash equivalents	$                               540		$                               364
Accounts receivable, net	1,006		1,041
Inventory, net	130		183
Prepaid expenses	76		72
Income taxes receivable	2		2
Other current assets	32		33
Total current assets	1,786		1,695
Licenses	4,592		4,588
Other intangible assets, net	146		161
Investments in unconsolidated entities	493		500
Property, plant and equipment, net	4,808		4,994
Operating lease right-of-use assets	975		982
Other assets and deferred charges	726		762
Total assets	$                          13,526		$                          13,682

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
	June 30, 2025		December 31, 2024
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt	$                                 37		$                                 31
Accounts payable	268		280
Customer deposits and deferred revenues	270		283
Accrued interest	15		16
Accrued taxes	39		39
Accrued compensation	97		150
Short-term operating lease liabilities	148		153
Other current liabilities	127		138
Total current liabilities	1,001		1,090
Deferred liabilities and credits
Deferred income tax liability, net	982		981
Long-term operating lease liabilities	867		867
Other deferred liabilities and credits	815		809
Long-term debt, net	4,030		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	2,535		2,574
Preferred Shares, par value $0.01 per share	1,074		1,074
Treasury shares, at cost	(389)		(425)
Accumulated other comprehensive income	18		18
Retained earnings	1,765		1,849
Total TDS shareholders' equity	5,004		5,091
Noncontrolling interests	811		777
Total equity	5,815		5,868
Total liabilities and equity	$                          13,526		$                          13,682

 

Balance Sheet Highlights
(Unaudited)
	June 30, 2025
			TDS		TDS Corporate		Intercompany		TDS
	Array		Telecom		& Other		Eliminations		Consolidated
(Dollars in millions)
Cash and cash equivalents	$                 386		$                 164		$                  153		$                (163)		$                 540
Licenses and other intangible assets	$              4,583		$                 150		$                      5		$                    —		$              4,738
Investment in unconsolidated entities	444		4		52		(7)		493
	$              5,027		$                 154		$                    57		$                    (7)		$              5,231
Property, plant and equipment, net	$              2,313		$              2,479		$                    16		$                    —		$              4,808
Long-term debt, net:
Current portion	$                   28		$                   —		$                      9		$                    —		$                   37
Non-current portion	2,819		3		1,208		—		4,030
	$              2,847		$                     3		$               1,217		$                    —		$              4,067

 

Array Digital Infrastructure, Inc.
Segment Results
(Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
Array	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars in millions)
Operating Revenues
Wireless	$       888		$       902		(1) %		$   1,751		$   1,826		(4) %
Towers	62		58		7 %		123		116		6 %
Intra-company eliminations	(34)		(33)		(3) %		(67)		(65)		(3) %
Total operating revenues	916		927		(1) %		1,807		1,877		(4) %
Operating expenses
Wireless	874		885		(1) %		1,717		1,779		(3) %
Towers	41		39		5 %		81		75		8 %
Intra-company eliminations	(34)		(33)		(3) %		(67)		(65)		(3) %
Total operating expenses	881		891		(1) %		1,731		1,789		(3) %
Operating income	$         35		$         36		(4) %		$         76		$         88		(13) %
Adjusted OIBDA (Non-GAAP)	$       208		$       227		(9) %		$       422		$       456		(7) %
Adjusted EBITDA (Non-GAAP)	$       254		$       268		(6) %		$       506		$       542		(7) %
Capital expenditures	$         80		$       165		(52) %		$       132		$       295		(55) %

 

Array Digital Infrastructure, Inc.
Segment Results
(Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
Array Wireless	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars in millions)
Retail service	$       652		$       666		(2) %		$   1,312		$   1,344		(2) %
Other	56		52		7 %		109		102		7 %
Service revenues	708		718		(1) %		1,421		1,446		(2) %
Equipment sales	180		184		(2) %		330		380		(13) %
Total operating revenues	888		902		(1) %		1,751		1,826		(4) %
System operations (excluding Depreciation, amortization and      accretion reported below)	197		194		1 %		387		390		(1) %
Cost of equipment sold	209		211		(1) %		387		427		(9) %
Selling, general and administrative	319		313		2 %		643		637		1 %
Depreciation, amortization and accretion	151		154		(2) %		302		308		(2) %
(Gain) loss on asset disposals, net	2		5		(59) %		3		10		(66) %
(Gain) loss on license sales and exchanges, net	(4)		8		N/M		(5)		7		N/M
Total operating expenses	874		885		(1) %		1,717		1,779		(3) %
Operating income	$         14		$         17		(21) %		$         34		$         47		(27) %
Adjusted OIBDA (Non-GAAP)	$       174		$       196		(11) %		$       355		$       392		(9) %
Adjusted EBITDA (Non-GAAP)	$       174		$       196		(11) %		$       355		$       392		(9) %
Capital expenditures	$         77		$       160		(52) %		$       127		$       286		(55) %
	Three Months Ended June 30,						Six Months Ended June 30,
Array Towers	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars in millions)
Third-party revenues	$         28		$         25		12 %		$         56		$         51		9 %
Intra-company revenues	34		33		3 %		67		65		3 %
Total tower revenues	62		58		7 %		123		116		6 %
System operations (excluding Depreciation, amortization and      accretion reported below)	20		19		6 %		39		37		5 %
Selling, general and administrative	9		9		(1) %		18		16		14 %
Depreciation, amortization and accretion	12		11		7 %		23		21		6 %
(Gain) loss on asset disposals, net	—		—		14 %		1		1		60 %
Total operating expenses	41		39		5 %		81		75		8 %
Operating income	$         21		$         19		11 %		$         42		$         41		2 %
Adjusted OIBDA (Non-GAAP)	$         34		$         31		9 %		$         67		$         64		4 %
Adjusted EBITDA (Non-GAAP)	$         34		$         31		9 %		$         67		$         64		4 %
Capital expenditures	$           3		$           5		(51) %		$           5		$           9		(47) %

 

TDS Telecom Highlights
(Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars in millions)
Operating revenues
Residential
Incumbent	$         85		$         90		(6) %		$       170		$       180		(5) %
Expansion	37		28		31 %		71		54		32 %
Cable	62		69		(10) %		126		138		(9) %
Total residential	183		186		(2) %		367		372		(1) %
Commercial	35		37		(6) %		69		74		(6) %
Wholesale	47		44		7 %		85		88		(3) %
Total service revenues	265		267		(1) %		522		534		(2) %
Equipment revenues	—		—		(14) %		—		—		2 %
Total operating revenues	265		267		(1) %		522		534		(2) %
Cost of services	97		98		(1) %		198		196		1 %
Cost of equipment and products	—		—		(6) %		—		—		25 %
Selling, general and administrative expenses	83		80		3 %		166		155		7 %
Depreciation, amortization and accretion	73		67		10 %		145		131		10 %
(Gain) loss on asset disposals, net	6		4		61 %		8		6		39 %
(Gain) loss on sale of business and other exit costs, net	(8)		—		N/M		(8)		—		N/M
Total operating expenses	251		248		1 %		508		488		4 %
Operating income	$         14		$         19		(27) %		$         14		$         46		(70) %

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 June 30,				Six Months Ended June 30,
TDS CONSOLIDATED	2025		2024		2025		2024
(Dollars in millions)
Cash flows from operating activities (GAAP)	$                 422		$                 403		$                 607		$                 626
Cash paid for additions to property, plant and equipment	(157)		(216)		(286)		(451)
Cash paid for software license agreements	(11)		(11)		(20)		(21)
Free cash flow (Non-GAAP)1	$                 254		$                 176		$                 301		$                 154
	Three Months Ended June 30,				Six Months Ended June 30,
Array	2025		2024		2025		2024
(Dollars in millions)
Cash flows from operating activities (GAAP)	$                 325		$                 313		$                 485		$                 516
Cash paid for additions to property, plant and equipment	(75)		(137)		(147)		(270)
Cash paid for software license agreements	(11)		(11)		(20)		(20)
Free cash flow (Non-GAAP)1	$                 239		$                 165		$                 318		$                 226

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 Array Wireless and Array 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 June 30,				Six Months Ended June 30,
Array	2025		2024		2025		2024
(Dollars in millions)
Net income (GAAP)	$                   32		$                   18		$                   52		$                   42
Add back or deduct:
Income tax expense	4		14		24		41
Income before income taxes (GAAP)	36		32		76		83
Add back:
Interest expense	45		45		84		91
Depreciation, amortization and accretion expense	163		165		325		329
EBITDA (Non-GAAP)	244		242		485		503
Add back or deduct:
Expenses related to strategic alternatives review	12		13		22		21
(Gain) loss on asset disposals, net	2		5		4		11
(Gain) loss on license sales and exchanges, net	(4)		8		(5)		7
Adjusted EBITDA (Non-GAAP)	254		268		506		542
Deduct:
Equity in earnings of unconsolidated entities	42		38		78		80
Interest and dividend income	4		3		6		6
Adjusted OIBDA (Non-GAAP)	$                 208		$                 227		$                 422		$                 456
	Three Months Ended June 30,				Six Months Ended June 30,
Array Wireless	2025		2024		2025		2024
(Dollars in millions)
EBITDA (Non-GAAP)	$                 165		$                 171		$                 336		$                 355
Add back or deduct:
Expenses related to strategic alternatives review	11		12		21		20
(Gain) loss on asset disposals, net	2		5		3		10
(Gain) loss on license sales and exchanges, net	(4)		8		(5)		7
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)	174		196		355		392
Deduct:
Depreciation, amortization and accretion	151		154		302		308
Expenses related to strategic alternatives review	11		12		21		20
(Gain) loss on asset disposals, net	2		5		3		10
(Gain) loss on license sales and exchanges, net	(4)		8		(5)		7
Operating income (GAAP)	$                   14		$                   17		$                   34		$                   47
	Three Months Ended June 30,				Six Months Ended June 30,
Array Towers	2025		2024		2025		2024
(Dollars in millions)
EBITDA (Non-GAAP)	$                   33		$                   30		$                   65		$                   62
Add back or deduct:
Expenses related to strategic alternatives review	1		1		1		1
(Gain) loss on asset disposals, net	—		—		1		1
Adjusted EBITDA and Adjusted OIBDA (Non-GAAP)	34		31		67		64
Deduct:
Depreciation, amortization and accretion	12		11		23		21
Expenses related to strategic alternatives review	1		1		1		1
(Gain) loss on asset disposals, net	—		—		1		1
Operating income (GAAP)	$                   21		$                   19		$                   42		$                   41
	Three Months Ended June 30,				Six Months Ended June 30,
TDS Telecom	2025		2024		2025		2024
(Dollars in millions)
Net income (GAAP)	$                   16		$                   18		$                   20		$                   42
Add back or deduct:
Income tax expense	2		3		3		10
Income before income taxes (GAAP)	18		21		23		52
Add back:
Interest expense	(1)		—		(2)		(2)
Depreciation, amortization and accretion expense	73		67		145		131
EBITDA (Non-GAAP)	90		88		165		181
Add back or deduct:
(Gain) loss on asset disposals, net	6		4		8		6
(Gain) loss on sale of business and other exit costs, net	(8)		—		(8)		—
Adjusted EBITDA (Non-GAAP)	89		91		165		187
Deduct:
Interest and dividend income	2		1		3		2
Other, net	2		1		4		2
Adjusted OIBDA (Non-GAAP)	$                   85		$                   89		$                 158		$                 183

Numbers may not foot due to rounding.

 

View original content:https://www.prnewswire.com/news-releases/tds-reports-second-quarter-2025-results-302525695.html

SOURCE Telephone and Data Systems, Inc.

FAQ

What were TDS's Q2 2025 earnings results?

TDS reported Q2 2025 revenues of $1,186 million and a net loss of $(5) million, or $(0.05) per share, improved from a $(14) million loss year-over-year.

How much did TDS sell its wireless operations to T-Mobile for?

TDS's subsidiary Array (formerly US Cellular) completed the sale of its wireless operations and select spectrum assets to T-Mobile for $4.3 billion in total consideration, including cash and assumed debt.

What is the special dividend amount announced by Array (formerly US Cellular)?

Array declared a special dividend of $23.00 per share, payable to shareholders on August 19, 2025.

What is TDS Telecom's 2025 revenue guidance?

TDS Telecom expects full-year 2025 total operating revenues of $1,030-$1,050 million, adjusted from the previous guidance of $1,030-$1,070 million.

How many fiber broadband additions did TDS Telecom report in Q2 2025?

TDS Telecom added 3,900 total residential broadband net additions, including 10,300 net adds specifically from fiber markets, while delivering 27,000 new marketable fiber services addresses.