TDS reports third quarter 2025 results

Rhea-AI Summary

Telephone and Data Systems (NYSE:TDS) reported Q3 2025 operating revenues of $308.5M and net income attributable to common shareholders of $40.2M (diluted EPS $0.33), versus a $100.4M loss (EPS $(0.88)) in Q3 2024.

Key corporate actions: the Board authorized a new $500M share repurchase program (additive to existing authorization), repurchased 1,077,564 shares for $40.7M in Q3, and paid a $23 per share special dividend on August 19, 2025. TDS closed the sale of Array wireless operations to T-Mobile on August 1, 2025, and expects $178M of additional spectrum-sale proceeds.

TDS Telecom reported fiber momentum: 42,000 marketable fiber addresses delivered in Q3 and 11,200 residential fiber net additions. Full-year 2025 guidance ranges for revenues and adjusted OIBDA/EBITDA remain unchanged.

Positive

• Net income of $40.2M in Q3 2025 (EPS $0.33)
• $500M new Board-authorized share repurchase program
• Delivered 42,000 marketable fiber addresses in Q3 2025
• Added 11,200 residential fiber net connections in Q3 2025
• Closed Array wireless sale to T-Mobile on Aug 1, 2025
• Entered spectrum sales expected to yield $178M proceeds

Negative

• Share repurchase timing contingent on successful spectrum transaction closings
• Q3 results and comparisons affected by prior HMS sale, complicating YoY revenue trends
• Reconciliation to net income not provided for 2025 estimates due to unknown income tax impact

Insights

Corporate Finance Analyst

TDS reports improved quarterly profitability, a $500 million buyback authorization, and material portfolio moves that increase capital flexibility.

TDS posted net income attributable to common shareholders of $40.2 million and diluted EPS of $0.33 in 3Q 2025, versus a loss a year earlier, while consolidated revenues declined to $308.5 million. The company repurchased 1,077,564 shares for $40.7 million in the quarter and the board authorized an additional $500 million repurchase program, additive to existing authorizations. Strategic portfolio actions include the closed sale of Array wireless assets to T-Mobile (closed August 1, 2025), a $23 per share special dividend paid August 19, 2025, and anticipated spectrum sale proceeds totaling $178 million.

The results and actions create near-term financial flexibility but depend on completed spectrum closings and sustained cash generation. Consolidated revenues reflect divestitures and the prior-year HMS sale (HMS revenues were $34 million in Q3 2024), which complicates year-over-year comparisons. Watch the timing and receipt of the announced spectrum proceeds and the company’s execution of repurchases; these items will materially affect available liquidity and leverage in the coming quarters. Key monitorables include final spectrum sale cash receipts (expected aggregate $178 million), repurchase cadence under the $500 million program, and any updates to the 2025 estimates provided on November 7, 2025.

11/07/2025 - 07:30 AM

Announces new $500 million share repurchase authorization

CHICAGO, Nov. 7, 2025 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on November 7, 2025, 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 total operating revenues from continuing operations of $308.5 million for the third quarter of 2025, versus $327.5 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share from continuing operations were $40.2 million and $0.33, respectively, for the third quarter of 2025 compared to $(100.4) million and $(0.88), respectively, in the same period one year ago.

Recent Highlights*

TDS

• Repurchased over one million TDS Common Shares during the third quarter 
• Board approved new $500 million share repurchase program, additive to current authorization balance  

TDS Telecom

• Executing on fiber broadband strategy
  • Delivered 42,000 marketable fiber services addresses in Q3 2025
  • Grew fiber connections —11,200 residential fiber net additions
  • TDS Telecom revenues down 3%, impacted by $6 million due to divestitures of non-strategic assets

Array

• Closed on the sale of wireless operations and select spectrum assets to T-Mobile on August 1, 2025
• Paid a $23 per share special dividend on August 19, 2025
• Commenced T-Mobile MLA on August 1, 2025, helping to drive a 68% increase in Site rental revenues, excluding non-cash amortization
• Entered into additional spectrum sales expected to result in aggregate proceeds of $178 million
• Announced appointment of Anthony Carlson as President and CEO effective November 16, 2025

*Comparisons are 3Q'24 to 3Q'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 $34 million in Q3 2024.

"With a strong portfolio and increased financial flexibility, we see tremendous opportunities ahead for the TDS enterprise," said Walter Carlson, TDS President and CEO.  "We crossed the 1 million fiber passings milestone at TDS Telecom in the quarter and are continuing to execute on our robust fiber strategy through ongoing fiber expansion and E-ACAM programs.

"Now that we have Array established as a standalone tower company, we are ready to announce its next step in leadership, selecting Anthony Carlson to be Array's President and CEO.  Anthony's substantial and increasing responsibilities at UScellular and TDS Telecom over the past six years provide him with the right foundation to lead Array's growing tower business and provide strategic vision to its operations.

"We are extremely grateful to Doug Chambers for his nearly two decades of contributions, most recently overseeing the successful launch of Array as a new tower business.  We wish Doug great success in his new endeavors.

"Further, the TDS Board adopted a $500 million share repurchase program as part of our overall capital allocation plan. The timing will be determined at the Company's discretion and dependent upon successful closings of the announced spectrum transactions. This authorization reflects the Board's confidence in the Company's long-term strategy and demonstrates our balanced approach to capital allocation." 

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 November 7, 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-$1,050	Unchanged
Adjusted OIBDA1 (Non-GAAP)	$310-$340	Unchanged
Adjusted EBITDA1 (Non-GAAP)	$320-$350	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			Nine Months Ended September 30, 2025		Year Ended December 31, 2024
(Estimated Results in millions; Actual Results in thousands)
Net income (GAAP)	N/A		$                         19,329		$                         84,901
Add back:
Income tax expense	N/A		561		35,040
Income before income taxes (GAAP)	$20-$50		$                         19,890		$                       119,941
Add back:
Interest expense	—		(4,168)		(5,197)
Depreciation, amortization and accretion expense	300		223,478		270,660
EBITDA (Non-GAAP)1	$320-$350		$                       239,200		$                       385,404
Add back or deduct:
Expenses related to strategic alternatives review	—		3,497		—
Loss on impairment of intangible assets	—		—		1,103
(Gain) loss on asset disposals, net	—		7,890		12,376
(Gain) loss on sale of business and other exit costs, net	—		(5,235)		(49,108)
Adjusted EBITDA (Non-GAAP)1	$320-$350		$                       245,352		$                       349,775
Deduct:
Equity in earnings of unconsolidated entities	—		4		(7)
Interest and dividend income	5		4,918		5,483
Other, net	5		5,262		3,959
Adjusted OIBDA (Non-GAAP)1	$310-$340		$                       235,168		$                       340,340

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.

Stock Repurchase
During the third quarter, TDS repurchased 1,077,564 Common Shares for $40.7 million. In addition, the TDS Board authorized a new share repurchase program under which the Company may repurchase up to $500 million of its outstanding Common stock. This new repurchase program does not have an expiration and is additive to the existing share repurchase authorization.

Conference Call Information
TDS will hold a conference call on November 7, 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/604881005

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; whether the additional spectrum license sales to T-Mobile and the previously announced spectrum license sales to Verizon and AT&T will be consummated and the impact of the ongoing government shutdown on timing of closing these transactions; whether Array can monetize its remaining spectrum assets; strategic decisions regarding the tower business; intense competition; high inflation may increase costs beyond what TDS can recover through price increases; 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; 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
TDS Telecom: www.tdstelecom.com
Array: investors.arrayinc.com

 

Array Digital Infrastructure, Inc.
Summary Operating Data (Unaudited)
	Three Months Ended September 30, 2025
Capital expenditures from continuing operations (thousands)	$                          7,927
Owned towers	4,449
Number of colocations1	4,517
Tower tenancy rate2	1.02

1	Represents instances where a third-party rents or leases space on a company-owned tower. 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. 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	9/30/2025		6/30/2025		3/31/2025		12/31/2024		9/30/2024
Residential connections
Broadband
Incumbent Fiber	123,500		121,200		119,700		118,500		115,900
Incumbent Copper	102,000		106,500		112,600		116,900		125,600
Expansion Fiber	150,700		141,800		133,200		126,100		115,300
Cable	186,100		188,200		190,200		191,500		195,900
Total Broadband	562,400		557,700		555,800		553,000		552,700
Video	114,300		116,500		118,700		121,000		122,100
Voice	242,200		248,700		256,900		261,600		271,300
Wireless	2,200		1,600		900		100		—
Total Residential connections	921,100		924,500		932,300		935,700		946,100
Commercial connections	180,300		184,300		187,600		190,500		197,200
Total connections1	1,101,300		1,108,800		1,119,900		1,126,300		1,143,300
Total residential fiber net adds	11,200		10,300		8,300		13,600		10,400
Total residential broadband net adds	4,600		3,900		2,800		7,900		2,700
Residential fiber churn2	1.5 %		1.1 %		0.9 %		1.0 %		1.3 %
Total residential broadband churn	1.7 %		1.5 %		1.3 %		1.4 %		1.7 %
Residential revenue per connection3	$        65.66		$        65.85		$        65.67		$        64.72		$        65.41
Capital expenditures (thousands)	$    102,429		$      90,187		$      58,870		$      81,743		$      77,904

Numbers may not foot due to rounding.
1	Q3 2024 total connections include 22,600 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 September 30,						Nine Months Ended September 30,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars and shares in thousands, except per share amounts)
Operating revenues
TDS Telecom	$  255,111		$  262,662		(3) %		$  777,403		$  796,562		(2) %
Array	47,119		25,739		83 %		102,632		76,845		34 %
All Other1	6,291		39,096		(84) %		17,460		128,223		(86) %
	308,521		327,497		(6) %		897,495		1,001,630		(10) %
Operating expenses
TDS Telecom
Expenses excluding depreciation, amortization and accretion	181,636		182,132		—		545,732		533,416		2 %
Depreciation, amortization and accretion	78,901		67,664		17 %		223,478		198,947		12 %
(Gain) loss on asset disposals, net	22		2,680		(99) %		7,890		8,344		(5) %
(Gain) loss on sale of business and other exit costs, net	2,844		—		N/M		(5,235)		—		N/M
	263,403		252,476		4 %		771,865		740,707		4 %
Array
Expenses excluding depreciation, amortization and accretion	41,501		39,439		5 %		125,725		131,819		(5) %
Depreciation, amortization and accretion	11,868		12,237		(3) %		35,860		35,058		2 %
Loss on impairment of licenses	47,679		136,234		(65) %		47,679		136,234		(65) %
(Gain) loss on asset disposals, net	707		196		N/M		620		590		5 %
(Gain) loss on license sales and exchanges, net	(1,323)		(2,200)		40 %		(6,123)		4,360		N/M
	100,432		185,906		(46) %		203,761		308,061		(34) %
All Other1
Expenses excluding depreciation and amortization	11,683		49,648		(76) %		34,110		165,894		(79) %
Depreciation and amortization	977		981		—		2,757		6,875		(60) %
(Gain) loss on asset disposals, net	—		(53)		99 %		14		(36)		N/M
(Gain) loss on sale of business and other exit costs, net	—		(11,733)		N/M		(797)		(11,733)		93 %
	12,660		38,843		(67) %		36,084		161,000		(78) %
Total operating expenses	376,495		477,225		(21) %		1,011,710		1,209,768		(16) %
Operating income (loss)
TDS Telecom	(8,292)		10,186		N/M		5,538		55,855		(90) %
Array	(53,313)		(160,167)		67 %		(101,129)		(231,216)		56 %
All Other1	(6,369)		253		N/M		(18,624)		(32,777)		43 %
	(67,974)		(149,728)		55 %		(114,215)		(208,138)		45 %
Other income (expense)
Equity in earnings of unconsolidated entities	69,838		43,415		61 %		149,309		125,117		19 %
Interest and dividend income	15,663		7,952		97 %		28,044		20,268		38 %
Interest expense	(47,278)		(32,694)		(45) %		(100,352)		(78,918)		(27) %
Short-term imputed spectrum lease income	30,413		—		N/M		30,413		—		N/M
Other, net	5,347		1,035		N/M		10,464		3,081		N/M
Total other expense	73,983		19,708		N/M		117,878		69,548		69 %
Income (loss) before income taxes	6,009		(130,020)		N/M		3,663		(138,590)		N/M
Income tax expense (benefit)	(72,772)		(30,656)		N/M		(85,119)		(36,795)		N/M
Net income (loss) from continuing operations	78,781		(99,364)		N/M		88,782		(101,795)		N/M
Less: Net income (loss) from continuing operations attributable to noncontrolling interests, net of tax	21,236		(16,222)		N/M		25,903		(11,313)		N/M
Net income (loss) from continuing operations attributable to TDS shareholders	$    57,545		$   (83,142)		N/M		$    62,879		$   (90,482)		N/M
Net income (loss) from discontinued operations	$ (151,899)		$    20,825		N/M		$ (132,150)		$    68,153		N/M
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests, net of tax	(12,604)		3,421		N/M		(6,563)		11,238		N/M
Net income (loss) from discontinued operations attributable to TDS shareholders	(139,295)		17,404		N/M		(125,587)		56,915		N/M
Net income (loss)	(73,118)		(78,539)		7 %		(43,368)		(33,642)		(29) %
Less: Net income (loss) attributable to noncontrolling interests, net of tax	8,632		(12,801)		N/M		19,340		(75)		N/M
Net income (loss) attributable to TDS shareholders	(81,750)		(65,738)		(24) %		(62,708)		(33,567)		(87) %
TDS Preferred Share dividends	17,306		17,306		—		51,919		51,919		—
Net income (loss) attributable to TDS common shareholders	$   (99,056)		$   (83,044)		(19) %		$ (114,627)		$   (85,486)		(34) %
Basic weighted average shares outstanding	116,126		114,029		2 %		115,318		113,523		2 %
Basic earnings (loss) per share from continuing operations attributable to TDS common shareholders	$        0.35		$       (0.88)		N/M		$        0.10		$       (1.25)		N/M
Basic earnings (loss) per share from discontinued operations attributable to TDS common shareholders	$       (1.20)		$        0.15		N/M		$       (1.09)		$        0.50		N/M
Basic earnings (loss) per share attributable to TDS common shareholders	$       (0.85)		$       (0.73)		(17) %		$       (0.99)		$       (0.75)		(32) %
Diluted weighted average shares outstanding	118,844		114,029		4 %		118,786		113,523		5 %
Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders	$        0.33		$       (0.88)		N/M		$        0.07		$       (1.25)		N/M
Diluted earnings (loss) per share from discontinued operations attributable to TDS common shareholders	$       (1.17)		$        0.15		N/M		$       (1.06)		$        0.50		N/M
Diluted earnings (loss) per share attributable to TDS common shareholders	$       (0.84)		$       (0.73)		(15) %		$       (0.99)		$       (0.75)		(31) %

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)
	Nine Months Ended September 30,
	2025		2024
(Dollars in thousands)
Cash flows from operating activities
Net income (loss)	$        (43,368)		$        (33,642)
Net income (loss) from discontinued operations	(132,150)		68,153
Net income (loss) from continuing operations	88,782		(101,795)
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities
Depreciation, amortization and accretion	262,095		240,880
Bad debts expense	5,951		5,586
Stock-based compensation expense	22,336		12,494
Deferred income taxes, net	(80,486)		(43,957)
Equity in earnings of unconsolidated entities	(149,309)		(125,117)
Distributions from unconsolidated entities	149,732		106,458
Loss on impairment of licenses	47,679		136,234
(Gain) loss on asset disposals, net	8,524		8,898
(Gain) loss on sale of business and other exit costs, net	(6,032)		(11,733)
(Gain) loss on license sales and exchanges, net	(6,123)		4,360
Other operating activities	19,451		3,004
Changes in assets and liabilities from operations
Accounts receivable	(8,023)		8,744
Inventory	14		(1,648)
Accounts payable	29,225		(49,151)
Customer deposits and deferred revenues	(31,105)		267
Accrued taxes	(22,974)		10,579
Accrued interest	(3,741)		5,266
Other assets and liabilities	(101,156)		(63,473)
Net cash provided by operating activities - continuing operations	224,840		145,896
Net cash provided by operating activities - discontinued operations	345,473		787,214
Net cash provided by operating activities	570,313		933,110
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(262,059)		(269,198)
Cash paid for licenses	(4,175)		(16,563)
Cash received from divestitures	29,389		90,503
Other investing activities	3,168		628
Net cash provided by (used in) investing activities - continuing operations	(233,677)		(194,630)
Net cash provided by (used in) investing activities - discontinued operations	2,462,399		(385,077)
Net cash provided by (used in) investing activities	2,228,722		(579,707)
Cash flows from financing activities
Issuance of long-term debt	325,000		440,000
Repayment of long-term debt	(1,961,844)		(408,301)
Tax withholdings, net of cash receipts, for TDS stock-based compensation awards	(1,234)		(10,599)
Tax withholdings, net of cash receipts, for Array stock-based compensation awards	(63,506)		(11,522)
Repurchase of TDS Common Shares	(40,697)		—
Repurchase of Array Common Shares	(21,360)		(25,628)
Dividends paid to TDS shareholders	(65,801)		(82,503)
Array dividends paid to noncontrolling public shareholders	(358,579)		—
Payment of debt issuance costs	(6,459)		(16,157)
Distributions to noncontrolling interests	(21,131)		(4,060)
Cash paid for software license agreements	(1,436)		(725)
Other financing activities	(7,481)		(84)
Net cash used in financing activities - continuing operations	(2,224,528)		(119,579)
Net cash used in financing activities - discontinued operations	(20,537)		(31,578)
Net cash used in financing activities	(2,245,065)		(151,157)
Net increase in cash, cash equivalents and restricted cash	553,970		202,246
Cash, cash equivalents and restricted cash
Beginning of period	383,222		269,308
End of period	$       937,192		$       471,554

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
	September 30, 2025		December 31, 2024
(Dollars in thousands)
Current assets
Cash and cash equivalents	$                        932,994		$                        363,612
Accounts receivable, net	97,737		98,552
Inventory, net	4,039		4,052
Prepaid expenses	29,382		32,367
Income taxes receivable	—		2,487
Current assets held for sale	1,633		—
Current assets of discontinued operations	—		1,163,032
Other current assets	13,959		31,088
Total current assets	1,079,744		1,695,190
Non-current assets held for sale	1,617,872		12
Non-current assets of discontinued operations	—		4,499,561
Licenses	1,650,288		3,289,648
Other intangible assets, net	138,956		160,804
Investments in unconsolidated entities	500,997		500,471
Property, plant and equipment, net	2,883,529		2,876,214
Operating lease right-of-use assets	523,104		520,902
Other assets and deferred charges	137,888		139,430
Total assets	$                     8,532,378		$                   13,682,232

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
	September 30, 2025		December 31, 2024
(Dollars in thousands, except per share amounts)
Current liabilities
Current portion of long-term debt	$                            3,186		$                          31,131
Accounts payable	120,996		74,866
Customer deposits and deferred revenues	164,582		46,992
Accrued interest	4,224		8,999
Accrued taxes	138,688		36,561
Accrued compensation	51,945		147,061
Short-term operating lease liabilities	26,481		27,529
Current liabilities of discontinued operations	1,228		—
Current liabilities held for sale	20,242		671,575
Other current liabilities	39,786		44,980
Total current liabilities	571,358		1,089,694
Non-current liabilities held for sale	3,599		—
Non-current liabilities of discontinued operations	—		2,310,660
Deferred liabilities and credits
Deferred income tax liability, net	715,086		980,769
Long-term operating lease liabilities	555,101		540,904
Other deferred liabilities and credits	576,947		460,676
Long-term debt, net	825,312		2,415,686
Noncontrolling interests with redemption features	—		15,831
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share	1,332		1,332
Capital in excess of par value	2,478,916		2,574,042
Preferred Shares, par value $0.01 per share	1,073,963		1,073,963
Treasury shares, at cost	(405,489)		(425,342)
Accumulated other comprehensive income	17,274		18,238
Retained earnings	1,301,051		1,849,009
Total TDS shareholders' equity	4,467,047		5,091,242
Noncontrolling interests	817,928		776,770
Total equity	5,284,975		5,868,012
Total liabilities and equity	$                     8,532,378		$                   13,682,232

 

Balance Sheet Highlights
(Unaudited)
	September 30, 2025
			TDS		TDS Corporate		Intercompany		TDS
	Array		Telecom		& Other		Eliminations		Consolidated
(Dollars in thousands)
Cash and cash equivalents	$         325,626		$          148,479		$          607,893		$        (149,004)		$         932,994
Licenses and other intangible assets	$      1,648,604		$          140,008		$                 632		$                   —		$      1,789,244
Investment in unconsolidated entities	452,174		3,947		55,347		(10,471)		500,997
	$      2,100,778		$          143,955		$            55,979		$          (10,471)		$      2,290,241
Property, plant and equipment, net	$         386,834		$       2,481,583		$            15,112		$                   —		$      2,883,529
Long-term debt, net:
Current portion	$             2,031		$                 158		$                 997		$                   —		$             3,186
Non-current portion	671,902		2,909		150,501		—		825,312
	$         673,933		$              3,067		$          151,498		$                   —		$         828,498

 

TDS Telecom Highlights
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars in thousands)
Operating revenues
Residential
Incumbent	$   81,910		$   89,682		(9) %		$ 252,168		$ 269,231		(6) %
Expansion	39,610		28,878		37 %		110,596		82,740		34 %
Cable	60,231		67,158		(10) %		186,253		205,657		(9) %
Total residential	181,751		185,718		(2) %		549,017		557,628		(2) %
Commercial	34,066		36,304		(6) %		103,317		110,190		(6) %
Wholesale	39,153		40,438		(3) %		124,534		128,157		(3) %
Total service revenues	254,970		262,460		(3) %		776,868		795,975		(2) %
Equipment revenues	141		202		(30) %		535		587		(9) %
Total operating revenues	255,111		262,662		(3) %		777,403		796,562		(2) %
Cost of operations (excluding Depreciation, amortization and accretion reported below)	102,253		101,107		1 %		300,265		296,768		1 %
Cost of equipment and products	182		211		(14) %		562		514		9 %
Selling, general and administrative expenses	79,201		80,814		(2) %		244,905		236,134		4 %
Depreciation, amortization and accretion	78,901		67,664		17 %		223,478		198,947		12 %
(Gain) loss on asset disposals, net	22		2,680		(99) %		7,890		8,344		(5) %
(Gain) loss on sale of business and other exit costs, net	2,844		—		N/M		(5,235)		—		N/M
Total operating expenses	263,403		252,476		4 %		771,865		740,707		4 %
Operating income (loss)	$    (8,292)		$   10,186		N/M		$      5,538		$   55,855		(90) %

N/M - Percentage change not meaningful

 

Array Digital Infrastructure, Inc. Highlights
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars in thousands)
Operating revenues
Site rental	$    45,838		$     25,669		79 %		$     99,663		$     76,591		30 %
Services	1,281		70		NM		2,969		254		NM
Total operating revenues	47,119		25,739		83 %		102,632		76,845		34 %
Operating expenses
Cost of operations (excluding Depreciation, amortization and accretion reported below)	20,976		18,263		15 %		56,662		52,822		7 %
Selling, general and administrative	20,525		21,176		(3) %		69,063		78,997		(13) %
Depreciation, amortization and accretion	11,868		12,237		(3) %		35,860		35,058		2 %
Loss on impairment of licenses	47,679		136,234		(65) %		47,679		136,234		(65) %
(Gain) loss on asset disposals, net	707		196		N/M		620		590		5 %
(Gain) loss on license sales and exchanges, net	(1,323)		(2,200)		40 %		(6,123)		4,360		N/M
Total operating expenses	100,432		185,906		(46) %		203,761		308,061		(34) %
Operating income (loss)	$   (53,313)		$  (160,167)		67 %		$  (101,129)		$  (231,216)		56 %

N/M - Percentage change not meaningful

 

Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
	Nine Months Ended September 30,
TDS CONSOLIDATED	2025		2024
(Dollars in thousands)
Cash flows from operating activities - continuing operations (GAAP)	$              224,840		$             145,896
Cash paid for additions to property, plant and equipment	(262,059)		(269,198)
Cash paid for software license agreements	(1,436)		(725)
Free cash flow - continuing operations (Non-GAAP)1	$               (38,655)		$            (124,027)

1	Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.

 

Telephone and Data Systems, Inc.
EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations
(Unaudited)
EBITDA, Adjusted EBITDA and Adjusted OIBDA
The following 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 September 30,				Nine Months Ended September 30,
TDS Telecom	2025		2024		2025		2024
(Dollars in thousands)
Net income (loss) (GAAP)	$               (282)		$              9,391		$           19,329		$           50,893
Add back or deduct:
Income tax expense (benefit)	(2,748)		4,323		561		14,739
Income (loss) before income taxes (GAAP)	(3,030)		13,714		19,890		65,632
Add back:
Interest expense	(1,743)		(1,262)		(4,168)		(3,521)
Depreciation, amortization and accretion expense	78,901		67,664		223,478		198,947
EBITDA (Non-GAAP)	74,128		80,116		239,200		261,058
Add back or deduct:
Expenses related to strategic alternatives review	3,497		—		3,497		—
(Gain) loss on asset disposals, net	22		2,680		7,890		8,344
(Gain) loss on sale of business and other exit costs, net	2,844		—		(5,235)		—
Adjusted EBITDA (Non-GAAP)	80,491	—	82,796		245,352		269,402
Deduct:
Equity in earnings of unconsolidated entities	3		1		4		1
Interest and dividend income	1,824		1,368		4,918		3,591
Other, net	1,692		897		5,262		2,664
Adjusted OIBDA (Non-GAAP)	$           76,972		$            80,530		$         235,168		$         263,146
	Three Months Ended September 30,				Nine Months Ended September 30,
Array	2025		2024		2025		2024
(Dollars in thousands)
Net income (loss) from continuing operations (GAAP)	$         109,920		$          (95,701)		$         130,503		$          (92,296)
Add back or deduct:
Income tax expense (benefit)	(62,701)		(22,046)		(54,479)		(15,600)
Income (loss) before income taxes (GAAP)	47,219		(117,747)		76,024		(107,896)
Add back:
Interest expense	8,855		4,241		16,233		9,201
Depreciation, amortization and accretion expense	11,868		12,237		35,860		35,058
EBITDA (Non-GAAP)	67,942		(101,269)		128,117		(63,637)
Add back or deduct:
Expenses related to strategic alternatives review	489		1,253		2,349		19,913
Loss on impairment of licenses	47,679		136,234		47,679		136,234
(Gain) loss on asset disposals, net	707		196		620		590
(Gain) loss on license sales and exchanges, net	(1,323)		(2,200)		(6,123)		4,360
Short-term imputed spectrum lease income	(30,413)		—		(30,413)		—
Adjusted EBITDA (Non-GAAP)	85,081		34,214		142,229		97,460
Deduct:
Equity in earnings of unconsolidated entities	69,811		43,109		147,453		123,445
Interest and dividend income	8,909		3,552		15,267		9,076
Other, net	254		—		253		—
Adjusted OIBDA (Non-GAAP)	$             6,107		$          (12,447)		$         (20,744)		$          (35,061)

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 investments. The following table reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure will only be presented prospectively as following the sale of Array's wireless operations to T-Mobile on August 1, 2025, the primary business operations for Array changed from providing wireless communications services to a standalone tower company. In addition, Array continues to own noncontrolling interests in investments that earn significant income, and generate significant cash flows.

	Three Months Ended September 30, 2025
(Dollars in thousands)
Net income from continuing operations - Array (GAAP)	$                           109,920
Add back or deduct:
Deferred income taxes	(80,572)
Short-term imputed spectrum lease income	(30,413)
Amortization of deferred debt charges	274
Equity in earnings of unconsolidated entities	(69,811)
Distributions from unconsolidated entities	61,794
(Gain) loss on license sales and exchanges, net	(1,323)
(Gain) loss on asset disposals, net	707
Loss on impairment of licenses	47,679
Depreciation, amortization and accretion	11,868
Expenses related to strategic alternatives review	489
Straight line and other non-cash revenue adjustments	(3,872)
Straight line expense adjustment	1,559
Maintenance and other capital expenditures	(2,374)
Adjusted Free Cash Flow from continuing operations (Non-GAAP)	$                             45,925

 

View original content:https://www.prnewswire.com/news-releases/tds-reports-third-quarter-2025-results-302608013.html

SOURCE Telephone and Data Systems, Inc.

FAQ

What did TDS (NYSE:TDS) report for Q3 2025 net income and EPS?

TDS reported net income $40.2M and diluted EPS $0.33 for Q3 2025.

How large is TDS' new share repurchase authorization announced November 7, 2025?

The Board approved a new, additive $500 million share repurchase program with no expiration.

How many fiber addresses and residential net additions did TDS Telecom deliver in Q3 2025?

TDS Telecom delivered 42,000 marketable fiber addresses and recorded 11,200 residential fiber net additions in Q3 2025.

What proceeds does TDS expect from announced spectrum sales in 2025?

TDS entered additional spectrum sales expected to result in aggregate proceeds of approximately $178 million.

How much stock did TDS repurchase in Q3 2025 and for what amount?

During Q3 2025 TDS repurchased 1,077,564 shares for approximately $40.7 million.

What corporate actions related to Array and dividends did TDS complete in 2025?

TDS closed the Array wireless sale to T-Mobile on Aug 1, 2025, and paid a $23 per share special dividend on Aug 19, 2025.