TDS reports third quarter 2026 results

TDS Telecom lowered its full-year revenue and adjusted earnings forecasts while increasing planned capital spending.

Rhea-AI Summary

Telephone and Data Systems (NYSE: TDS) reported lower third-quarter 2026 revenue and earnings from continuing operations and expanded its repurchase authorization. Revenue was $306.694 million, versus $308.521 million a year earlier. Income attributable to common shareholders fell to $29.6 million from $40.2 million; diluted earnings per share declined to $0.26 from $0.33.

The board authorized an additional $250 million in buybacks after approximately 6 million shares were repurchased during the quarter at an average $36.65. TDS Telecom lowered its 2026 revenue and adjusted earnings forecasts and raised planned capital spending to approximately $750 million. Residential fiber revenue grew 14%, but service revenue declined 3%. Array reaffirmed guidance and received regulatory approval for remaining spectrum sales, with closings subject to FCC finality. TDS stopped pursuing its proposal to acquire Array's minority shares.

17 points · 0 major

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0 major · 14 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointAdditional share repurchase authorization provides $250 million of capacity. 6.7% of market cap
• Moderate pointQuarterly buybacks returned capital through approximately 6 million shares purchased at an average $36.65.
• Moderate pointConsolidated operating loss narrowed to $30.013 million from $67.974 million in third-quarter 2025.
• Moderate pointNine-month revenue rose 3% to $925.425 million versus the same period in 2025.
• Moderate pointNine-month continuing-operations net income reached $580.601 million, versus $88.782 million in 2025.
• Moderate pointTDS Telecom residential fiber revenue grew 14% year over year.
• Moderate pointResidential fiber net additions increased to 16,700 from 11,200 in third-quarter 2025.
• Moderate pointResidential broadband net additions increased to 7,200 from 4,600 in third-quarter 2025.
• Moderate pointArray site rental revenue grew 14% year over year.
• Moderate pointRemaining pending spectrum sales received regulatory approval in October.
• Moderate pointArray operating expenses fell 44% to $56.196 million versus third-quarter 2025.

6 minor points

• Minor pointTDS Telecom added approximately 76,000 marketable fiber service addresses during the quarter.
• Minor pointResidential fiber monthly disconnections averaged 1.3%, down from 1.5% in third-quarter 2025.
• Minor pointMonthly residential revenue per connection increased to $66.88 from $65.66 in third-quarter 2025.
• Minor pointArray tower-space leases increased sequentially to 4,372 from 4,362.
• Minor pointConsolidated interest expense fell 76% to $11.575 million versus third-quarter 2025.
• Minor pointInterest and dividend income rose 40% to $22.001 million versus third-quarter 2025.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.TDS Telecom 2026 revenue guidance fell to $990–$1,010 million from $1,000–$1,025 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.TDS Telecom planned 2026 capital spending increased to approximately $750 million from $625–$675 million.
• Moderate pointCommon-shareholder continuing-operations income fell to $29.6 million from $40.2 million in third-quarter 2025.
• Moderate pointTDS Telecom service revenue declined 3%, as divestitures and legacy declines outweighed residential fiber growth.
• Moderate pointTDS Telecom quarterly operating loss widened to $17.471 million from $8.292 million a year earlier.
• Moderate pointTotal connections declined to 1,060,800 from 1,101,300 at September 30, 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.TDS Telecom forecasts a 2026 pretax loss of $20–$40 million.

7 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.TDS Telecom adjusted operating earnings guidance fell to $280–$300 million from $300–$320 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.TDS Telecom adjusted EBITDA guidance fell to $290–$310 million from $310–$330 million.
• Minor pointQuarterly continuing-operations revenue fell to $306.694 million from $308.521 million a year earlier.
• Minor pointDiluted continuing-operations earnings fell to $0.26 per share from $0.33 in third-quarter 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Remaining spectrum-sale closings are subject to FCC finality.
• Minor pointEquity earnings from unconsolidated entities fell 41% to $41.414 million versus third-quarter 2025.
• Minor pointShort-term imputed spectrum lease income fell 75% to $7.669 million versus third-quarter 2025.

News Explained

As of November 6, 2026, TDS says 2026 repurchases totaled nearly 15 million shares and over $520 million; post-quarter purchases had virtually exhausted the prior authorization, while the newly approved $250 million authorization is described as future flexibility, not completed spending.

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Market Reaction – TDS

$30.90 – $31.90 Day Range

$3.56B Mkt Cap at Last Price

On Nov 6, the day this news came out, the latest delayed price for TDS is 4.50% below the previous close. Our momentum scanner has recorded 3 alerts for this stock so far that day. The latest delayed price is $30.90. Relative volume is exceptionally heavy at 7.1x what this stock usually trades by this time of day.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Incremental repurchase authorization: $250 million Shares repurchased: Nearly 15 million shares TDS Telecom revenue guidance: $990 million to $1,010 million +5 more

Incremental repurchase authorization

$250 million

TDS Board-approved share repurchase plan

Shares repurchased

Nearly 15 million shares

During 2026

TDS Telecom revenue guidance

$990 million to $1,010 million

2026 current estimate, versus $1,000 million to $1,025 million previously

TDS Telecom Adjusted OIBDA guidance

$280 million to $300 million

2026 current estimate, versus $300 million to $320 million previously

TDS Telecom Adjusted EBITDA guidance

$290 million to $310 million

2026 current estimate, versus $310 million to $330 million previously

TDS Telecom capital expenditure guidance

Approximately $750 million

2026 current estimate, versus $625 million to $675 million previously

Total operating revenues

$306.7 million

Third quarter 2026, versus $308.5 million in the same period of 2025

Net income attributable to TDS common shareholders

$29.6 million

Third quarter 2026, versus $40.2 million in the same period of 2025

Previous Earnings Reports

2 past events · Latest: Aug 07

Same Type 2 events

1. Aug 07

   Earnings report

   24h Move

   -8.4%

   Telecom lowered 2026 revenue guidance and raised capital expenditure guidance; adjusted EBITDA was reaffirmed.

2. Nov 07

   Earnings report

   24h Move

   -2.1%

   Board authorized a $500 million repurchase program, with 1,077,564 shares repurchased during quarter.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap

1 terms

non-gaap financial

"Adjusted OIBDA1 (Non-GAAP)"

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.

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TDS Board authorizes incremental $250 million share repurchase plan
TDS Telecom updates guidance for 2026

CHICAGO, Nov. 6, 2026 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on November 6, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE: TDS) reported third quarter 2026 operating results.

"We continue to make progress as our teams execute our strategic objectives," said Walter Carlson, TDS President and CEO. "During the quarter, TDS Telecom expanded its marketable fiber service footprint by approximately 76,000 addresses and grew fiber net adds by approximately 17,000. Array increased the number of colocations sequentially, highlighting the value of our assets, and continues to improve profitability.  Additionally, I'm pleased to report that following TDS' withdrawal of the offer to acquire the minority interest in Array, TDS was in the market, and has repurchased nearly 15 million shares in 2026, returning over $520 million to shareholders."

Highlights*

TDS

• Returning value to shareholders
  • Repurchased approximately 6 million TDS shares in the quarter at an average price per share of $36.65
  • Continued to be in the market following the end of the quarter, virtually exhausting the existing authorization
• TDS Board approved incremental $250 million share repurchase authorization
  • Provides future flexibility for the organization

TDS Telecom

• Executing on fiber broadband strategy
  • Delivered approximately 76,000 marketable fiber service addresses
  • Grew fiber connections with approximately 17,000 residential fiber net additions
• Service revenue down 3%
  • Residential fiber revenue growth of 14% more than offset by impacts of divestitures and continued legacy declines
• Updated 2026 Financial Guidance
  • Revenues of $990 million to $1,010 million
  • Adjusted OIBDA of $280 million to $300 million
  • Adjusted EBITDA of $290 million to $310 million
  • Capital expenditures of approximately $750 million

Array

• Optimizing tower operations
  • Site rental revenues grew 14% year over year
  • Delivered consecutive quarter over quarter colocation growth
• Continuing to close pending sales of wireless spectrum
  • Received regulatory approval for remaining pending transactions in October, closings remain subject to FCC finality and other customary closing conditions
• Reaffirming 2026 financial guidance

* Comparisons are 3Q'25 to 3Q'26 unless otherwise noted.

TDS reported total operating revenues from continuing operations of $306.7 million for the third quarter of 2026, versus $308.5 million for the same period one year ago. Net income attributable to TDS common shareholders and diluted earnings per share from continuing operations were $29.6 million and $0.26, respectively, for the third quarter of 2026 compared to $40.2 million and $0.33, respectively, in the same period one year ago.

Recent Development

On May 7, 2026, TDS delivered to the Array Board of Directors a letter setting forth a non-binding proposal to acquire all of the outstanding Array Common Shares that are not owned by TDS (the "Array Proposal"). On September 1, 2026, TDS announced that it is no longer pursuing the Array Proposal. For additional information, see TDS' Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on September 2, 2026.

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 November 6, 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	Previous	Current
(Dollars in millions)
Total operating revenues	$1,000-$1,025	$990-$1,010
Adjusted OIBDA1 (Non-GAAP)	$300-$320	$280-$300
Adjusted EBITDA1 (Non-GAAP)	$310-$330	$290-$310
Capital expenditures	$625-$675	Approx. $750
Array	Previous	Current
(Dollars in millions)
Total operating revenues	$205-$215	Unchanged
Adjusted OIBDA1 (Non-GAAP)	$60-$75	Unchanged
Adjusted EBITDA1 (Non-GAAP)	$220-$235	Unchanged
Capital expenditures	$25-$35	Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income (loss) 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.

	2026 Estimated Results
	TDS Telecom		Array
(Dollars in millions)
Net income from continuing operations (GAAP)	N/A		N/A
Add back:
Income tax expense	N/A		N/A
Income (loss) before income taxes (GAAP)	($40)-($20)		$775-$790
Add back:
Interest expense	—		45
Depreciation, amortization and accretion expense	330		50
EBITDA (Non-GAAP)1	$290-$310		$870-$885
Add back or deduct:
(Gain) loss on license sales and exchanges, net	—		(585)
Short-term imputed spectrum lease income	—		(65)
Adjusted EBITDA (Non-GAAP)1	$290-$310		$220-$235
Deduct:
Equity in earnings of unconsolidated entities	—		145
Interest and dividend income	5		15
Other, net	5		—
Adjusted OIBDA (Non-GAAP)1	$280-$300		$60-$75

 

	Actual Results
	Nine Months Ended September 30, 2026				Year Ended December 31, 2025
	TDS Telecom		Array		TDS Telecom		Array
(Dollars in millions)
Net income (loss) from continuing operations (GAAP)	$          (16)		$         587		$           28		$         172
Add back:
Income tax expense (benefit)	(7)		138		10		(31)
Income (loss) before income taxes (GAAP)	$          (23)		$         726		$           38		$         141
Add back:
Interest expense	—		29		(7)		28
Depreciation, amortization and accretion expense	222		40		300		48
EBITDA (Non-GAAP)1	$         199		$         795		$         331		$         218
Add back or deduct:
Expenses related to strategic alternatives review	4		14		6		2
(Gain) loss on impairment of intangible assets	—		—		1		48
(Gain) loss on asset disposals, net	7		6		15		2
(Gain) loss on sale of business and other exit costs, net	1		—		(23)		—
(Gain) loss on license sales and exchanges, net	(2)		(566)		—		(6)
Short-term imputed spectrum lease income	—		(66)		—		(69)
Adjusted EBITDA (Non-GAAP)1	$         210		$         182		$         330		$         194
Deduct:
Equity in earnings of unconsolidated entities	—		116		—		174
Interest and dividend income	4		15		6		19
Other, net	3		—		5		—
Adjusted OIBDA (Non-GAAP)1	$         203		$           51		$         319		$            1

Numbers may not foot due to rounding.
1	EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income from continuing operations 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, expenses related to the strategic alternatives review, 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, expenses related to the strategic alternatives review and short-term imputed spectrum lease income, 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.

Conference Call Information
TDS will hold a conference call on November 6, 2026 at 9:00 a.m. CT.

• Access the live call on the Events & Presentations page of investors.tdsinc.com or at
  https://events.q4inc.com/attendee/505221542 

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 about Telephone and Data Systems, Inc., including its subsidiaries Array and TDS Telecom, except historical and factual information, represents forward-looking statements. This includes all statements about TDS' 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 are consummated; whether Array can monetize its remaining spectrum assets; intense competition, including fixed wireless and satellite; 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 revenue; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; TDS' inability to protect rights to the land under its towers; changes in demand, consumer preferences and perceptions, price competition, or cost; advances or changes in technology; impacts of costs, integration issues or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS' businesses; the ability of TDS 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 that 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 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 

TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended	9/30/2026		6/30/2026		3/31/2026		12/31/2025		9/30/2025
Residential connections
Broadband
Incumbent Fiber	144,100		134,300		130,200		127,300		123,500
Incumbent Copper	71,100		77,700		84,200		91,200		102,000
Expansion Fiber	191,200		179,600		168,500		160,600		150,700
Cable	173,200		176,100		179,100		182,800		186,100
Total Broadband	579,600		567,700		561,900		561,900		562,400
Video	104,000		105,600		107,200		111,500		114,300
Voice	204,100		209,300		216,900		228,900		242,200
Wireless	10,500		8,100		5,300		3,300		2,200
Total Residential connections	898,200		890,700		891,400		905,600		921,100
Commercial connections	162,600		163,600		166,500		173,900		180,300
Total connections1	1,060,800		1,054,200		1,058,000		1,079,500		1,101,300
Total residential fiber net adds	16,700		15,100		10,900		15,100		11,200
Total residential broadband net adds	7,200		5,700		100		4,500		4,600
Residential fiber churn2	1.3 %		1.2 %		1.3 %		1.2 %		1.5 %
Total residential broadband churn	1.7 %		1.7 %		1.8 %		1.6 %		1.7 %
Residential revenue per connection3	$      66.88		$      66.50		$      66.41		$      65.95		$      65.66
Capital expenditures (thousands)	$  251,463		$  179,197		$  125,963		$  154,904		$  102,429

Numbers may not foot due to rounding.
1	Divestiture in December 2025 resulted in a decrease of 12,500 connections, including 5,100 residential broadband connections. Acquisition in September 2026 resulted in an increase of 7,800 connections, including 4,700 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.

 

Array Digital Infrastructure, Inc.
Summary Operating Data (Unaudited)
As of or for the Quarter Ended	9/30/2026		6/30/2026		3/31/2026		12/31/2025		9/30/2025
Capital expenditures from continuing operations (thousands)	$     3,915		$      3,895		$      8,645		$    12,933		$      7,927
Owned towers	4,455		4,456		4,452		4,450		4,449
Number of colocations1	4,372		4,362		4,290		4,572		4,517
Tower tenancy rate2	0.98		0.98		0.96		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. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless.
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. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94 for December 31, 2025 and September 30, 2025, respectively.

 

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026		2025		2026 vs. 2025		2026		2025		2026 vs. 2025
(Dollars and shares in thousands, except per share amounts)
Operating revenues
TDS Telecom	$ 247,265		$ 255,111		(3) %		$ 745,243		$ 777,403		(4) %
Array	53,870		47,119		14 %		159,952		102,632		56 %
All Other1	5,559		6,291		(12) %		20,230		17,460		16 %
Total operating revenues	306,694		308,521		(1) %		925,425		897,495		3 %
Operating expenses
TDS Telecom	264,736		263,403		1 %		774,723		771,865		—
Array	56,196		100,432		(44) %		(397,770)		203,761		N/M
All Other1	15,775		12,660		25 %		61,456		36,084		70 %
Total operating expenses	336,707		376,495		(11) %		438,409		1,011,710		(57) %
Operating income (loss)
TDS Telecom	(17,471)		(8,292)		N/M		(29,480)		5,538		N/M
Array	(2,326)		(53,313)		96 %		557,722		(101,129)		N/M
All Other1	(10,216)		(6,369)		(60) %		(41,226)		(18,624)		N/M
Total operating income (loss)	(30,013)		(67,974)		56 %		487,016		(114,215)		N/M
Other income (expense)
Equity in earnings of unconsolidated entities	41,414		69,838		(41) %		120,442		149,309		(19) %
Interest and dividend income	22,001		15,663		40 %		55,418		28,044		98 %
Interest expense	(11,575)		(47,278)		76 %		(28,284)		(100,352)		72 %
Short-term imputed spectrum lease income	7,669		30,413		(75) %		65,639		30,413		N/M
Other, net	4,523		5,347		(15) %		15,320		10,464		46 %
Total other income	64,032		73,983		(13) %		228,535		117,878		94 %
Income before income taxes	34,019		6,009		N/M		715,551		3,663		N/M
Income tax expense (benefit)	(25,869)		(72,772)		64 %		134,950		(85,119)		N/M
Net income from continuing operations	59,888		78,781		(24) %		580,601		88,782		N/M
Less: Net income from continuing operations attributable to noncontrolling interests, net of tax	12,999		21,236		(39) %		109,142		25,903		N/M
Net income from continuing operations attributable to TDS shareholders	46,889		57,545		(19) %		471,459		62,879		N/M
Net income (loss) from discontinued operations	(1,173)		(151,899)		99 %		21,510		(132,150)		N/M
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests, net of tax	(144)		(12,604)		99 %		4,148		(6,563)		N/M
Net income (loss) from discontinued operations attributable to TDS shareholders	(1,029)		(139,295)		99 %		17,362		(125,587)		N/M
Net income (loss)	58,715		(73,118)		N/M		602,111		(43,368)		N/M
Less: Net income attributable to noncontrolling interests, net of tax	12,855		8,632		49 %		113,290		19,340		N/M
Net income (loss) attributable to TDS shareholders	45,860		(81,750)		N/M		488,821		(62,708)		N/M
TDS Preferred Share dividends	17,306		17,306		—		51,919		51,919		—
Net income (loss) attributable to TDS common shareholders	$   28,554		$ (99,056)		N/M		$ 436,902		$ (114,627)		N/M
Basic weighted average shares outstanding	114,374		116,126		(2) %		114,254		115,318		(1) %
Basic earnings per share from continuing operations attributable to TDS common shareholders	$      0.26		$      0.35		(25) %		$      3.67		$       0.10		N/M
Basic earnings (loss) per share from discontinued operations attributable to TDS common shareholders	$     (0.01)		$     (1.20)		99 %		$      0.15		$      (1.09)		N/M
Basic earnings (loss) per share attributable to TDS common shareholders	$      0.25		$     (0.85)		N/M		$      3.82		$      (0.99)		N/M
Diluted weighted average shares outstanding	115,000		118,844		(3) %		115,965		118,786		(2) %
Diluted earnings per share from continuing operations attributable to TDS common shareholders	$      0.26		$      0.33		(23) %		$      3.62		$       0.07		N/M
Diluted earnings (loss) per share from discontinued operations attributable to TDS common shareholders	$     (0.01)		$     (1.17)		99 %		$      0.15		$      (1.06)		N/M
Diluted earnings (loss) per share attributable to TDS common shareholders	$      0.25		$     (0.84)		N/M		$      3.77		$      (0.99)		N/M

N/M - Percentage change not meaningful.
1	Consists of corporate and other operations and intercompany eliminations.

 

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
	Nine Months Ended September 30,
	2026		2025
(Dollars in thousands)
Cash flows from operating activities
Net income (loss)	$     602,111		$      (43,368)
Net income (loss) from discontinued operations	21,510		(132,150)
Net income from continuing operations	580,601		88,782
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion	264,889		262,095
Bad debts expense	6,026		5,951
Stock-based compensation expense	12,538		22,336
Deferred income taxes, net	(121,706)		(80,486)
Equity in earnings of unconsolidated entities	(120,442)		(149,309)
Distributions from unconsolidated entities	89,584		149,732
Loss on impairment of licenses	—		47,679
(Gain) loss on asset disposals, net	13,077		8,524
(Gain) loss on sale of business and other exit costs, net	1,046		(6,032)
(Gain) loss on license sales and exchanges, net	(553,140)		(6,123)
Other operating activities	463		19,451
Changes in assets and liabilities from operations
Accounts receivable	(1,558)		(8,023)
Inventory	875		14
Accounts payable	6,788		29,225
Customer deposits and deferred revenues	(64,671)		(31,105)
Accrued taxes	(5,834)		(22,974)
Accrued interest	259		(3,741)
Other assets and liabilities	(64,069)		(101,156)
Net cash provided by operating activities - continuing operations	44,726		224,840
Net cash provided by (used in) operating activities - discontinued operations	(29,554)		345,473
Net cash provided by operating activities	15,172		570,313
Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(515,583)		(262,059)
Cash paid for acquisitions and licenses	(25,092)		(4,175)
Cash received from divestitures	2,188,235		29,389
Other investing activities	2,749		3,168
Net cash provided by (used in) investing activities - continuing operations	1,650,309		(233,677)
Net cash provided by investing activities - discontinued operations	—		2,462,399
Net cash provided by investing activities	1,650,309		2,228,722
Cash flows from financing activities
Issuance of long-term debt	1,300		325,000
Repayment of long-term debt	(153,104)		(1,961,844)
Tax withholdings, net of cash receipts, for TDS stock-based compensation awards	(32,724)		(1,234)
Tax withholdings, net of cash receipts, for Array stock-based compensation awards	(2,068)		(63,506)
Repurchase of TDS Common Shares	(205,057)		(40,697)
Repurchase of Array Common Shares	—		(21,360)
Dividends paid to TDS shareholders	(65,610)		(65,801)
Array dividends paid to noncontrolling public shareholders	(332,480)		(358,579)
Payment of debt issuance costs	—		(6,459)
Distributions to noncontrolling interests	(3,964)		(21,131)
Cash paid for software license agreements	(1,943)		(1,436)
Payments to acquire additional interest in subsidiaries	(593)		—
Other financing activities	212		(7,481)
Net cash used in financing activities - continuing operations	(796,031)		(2,224,528)
Net cash used in financing activities - discontinued operations	—		(20,537)
Net cash used in financing activities	$   (796,031)		$ (2,245,065)
Net increase in cash, cash equivalents and restricted cash	$     869,450		$     553,970
Cash, cash equivalents and restricted cash
Beginning of period	770,150		383,222
End of period	$  1,639,600		$     937,192

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
	September 30, 2026		December 31, 2025
(Dollars in thousands)
Current assets
Cash and cash equivalents	$             1,635,402		$                765,952
Accounts receivable, net	101,433		109,981
Inventory, net	3,187		4,062
Prepaid expenses	35,232		28,206
Income taxes receivable	5,012		1,292
Other current assets	12,967		13,976
Total current assets	1,793,233		923,469
Non-current assets held for sale	57,836		1,598,131
Licenses	1,585,374		1,642,972
Goodwill	6,403		—
Other intangible assets, net	110,231		131,673
Investments in unconsolidated entities	493,930		461,922
Property, plant and equipment, net	3,346,706		2,965,455
Operating lease right-of-use assets	497,077		515,081
Other assets and deferred charges	176,512		159,600
Total assets	$             8,067,302		$             8,398,303

 

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
	September 30, 2026		December 31, 2025
(Dollars in thousands, except per share amounts)
Current liabilities
Current portion of long-term debt	$                    9,269		$                    5,274
Accounts payable	196,646		115,822
Customer deposits and deferred revenues	58,803		125,140
Accrued interest	3,094		2,836
Accrued taxes	26,926		46,721
Accrued compensation	46,657		56,774
Short-term operating lease liabilities	27,404		26,180
Current liabilities of discontinued operations	24,304		20,242
Other current liabilities	54,211		41,322
Total current liabilities	447,314		440,311
Deferred liabilities and credits
Deferred income tax liability, net	615,486		743,633
Long-term operating lease liabilities	532,555		549,617
Other deferred liabilities and credits	579,376		574,025
Long-term debt, net	668,736		823,364
Total equity	5,223,835		5,267,353
Total liabilities and equity	$             8,067,302		$             8,398,303

 

Balance Sheet Highlights
(Unaudited)
	September 30, 2026
	TDS				TDS Corporate		Intercompany		TDS
	Telecom		Array		& Other		Eliminations		Consolidated
(Dollars in thousands)
Cash and cash equivalents	$        66,276		$       233,568		$    1,398,955		$      (63,397)		$    1,635,402
Licenses, goodwill and other intangible assets	$      116,787		$    1,584,674		$              547		$              —		$    1,702,008
Investment in unconsolidated entities	4,419		439,585		61,259		(11,333)		493,930
	$      121,206		$    2,024,259		$         61,806		$      (11,333)		$    2,195,938
Property, plant and equipment, net	$   2,947,663		$       384,149		$         14,894		$              —		$    3,346,706
Long-term debt, net:
Current portion	$             167		$           8,125		$              977		$              —		$           9,269
Non-current portion	2,741		665,016		979		—		668,736
	$          2,908		$       673,141		$           1,956		$              —		$       678,005

 

TDS Telecom Highlights
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026		2025		2026 vs. 2025		2026		2025		2026 vs. 2025
(Dollars in thousands)
Operating revenues
Residential
Incumbent	$  74,948		$  81,910		(8) %		$ 228,108		$ 252,168		(10) %
Expansion	48,310		39,610		22 %		137,528		110,596		24 %
Cable	55,909		60,231		(7) %		169,891		186,253		(9) %
Total residential	179,167		181,751		(1) %		535,527		549,017		(2) %
Commercial	32,451		34,066		(5) %		98,022		103,317		(5) %
Wholesale	35,588		39,153		(9) %		111,522		124,534		(10) %
Total service revenues	247,206		254,970		(3) %		745,071		776,868		(4) %
Equipment revenues	59		141		(58) %		172		535		(68) %
Total operating revenues	247,265		255,111		(3) %		745,243		777,403		(4) %
Cost of operations (excluding Depreciation, amortization and accretion reported below)	103,180		102,253		1 %		300,944		300,265		—
Cost of equipment and products	173		182		(5) %		402		562		(28) %
Selling, general and administrative	84,648		79,201		7 %		244,747		244,905		—
Depreciation, amortization and accretion	75,985		78,901		(4) %		222,127		223,478		(1) %
(Gain) loss on asset disposals, net	1,265		22		N/M		7,057		7,890		(11) %
(Gain) loss on sale of business and other exit costs, net	(515)		2,844		N/M		1,046		(5,235)		N/M
(Gain) loss on license sales and exchanges, net	—		—		—		(1,600)		—		N/M
Total operating expenses	264,736		263,403		1 %		774,723		771,865		—
Operating income (loss)	$ (17,471)		$  (8,292)		N/M		$  (29,480)		$     5,538		N/M

N/M - Percentage change not meaningful

 

Array Digital Infrastructure, Inc. Highlights
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2026		2025		2026 vs. 2025		2026		2025		2026 vs. 2025
(Dollars in thousands)
Operating revenues
Site rental	$  52,475		$  45,838		14 %		$ 156,674		$     99,663		57 %
Services	1,395		1,281		9 %		3,278		2,969		10 %
Total operating revenues	53,870		47,119		14 %		159,952		102,632		56 %
Operating expenses
Cost of operations (excluding Depreciation, amortization and accretion reported below)	23,349		20,976		11 %		68,455		56,662		21 %
Selling, general and administrative	18,200		20,525		(11) %		53,851		69,063		(22) %
Depreciation, amortization and accretion	13,405		11,868		13 %		40,437		35,860		13 %
Loss on impairment of licenses	—		47,679		N/M		—		47,679		N/M
(Gain) loss on asset disposals, net	1,233		707		74 %		5,946		620		N/M
(Gain) loss on license sales and exchanges, net	9		(1,323)		N/M		(566,459)		(6,123)		N/M
Total operating expenses	56,196		100,432		(44) %		(397,770)		203,761		N/M
Operating income (loss)	$   (2,326)		$ (53,313)		96 %		$ 557,722		$  (101,129)		N/M

N/M - Percentage change not meaningful

 

Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
	Nine Months Ended September 30,
TDS CONSOLIDATED	2026		2025
(Dollars in thousands)
Cash flows from operating activities - continuing operations (GAAP)	$           44,726		$         224,840
Cash paid for additions to property, plant and equipment	(515,583)		(262,059)
Cash paid for software license agreements	(1,943)		(1,436)
Free cash flow - continuing operations (Non-GAAP)1	$        (472,800)		$         (38,655)

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 tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income (loss) before income taxes.

	Three Months Ended September 30,				Nine Months Ended September 30,
TDS Telecom	2026		2025		2026		2025
(Dollars in thousands)
Net income (loss) (GAAP)	$      (11,954)		$          (282)		$      (15,900)		$        19,329
Add back:
Income tax expense (benefit)	(3,306)		(2,748)		(7,305)		561
Income (loss) before income taxes (GAAP)	(15,260)		(3,030)		(23,205)		19,890
Add back:
Interest expense	155		(1,743)		330		(4,168)
Depreciation, amortization and accretion	75,985		78,901		222,127		223,478
EBITDA (Non-GAAP)	60,880		74,128		199,252		239,200
Add back or deduct:
Expenses related to strategic alternatives review	4,229		3,497		4,316		3,497
(Gain) loss on asset disposals, net	1,265		22		7,057		7,890
(Gain) loss on sale of business and other exit costs, net	(515)		2,844		1,046		(5,235)
(Gain) loss on license sales and exchanges, net	—		—		(1,600)		—
Adjusted EBITDA (Non-GAAP)	65,859		80,491		210,071		245,352
Deduct:
Equity in earnings of unconsolidated entities	2		3		2		4
Interest and dividend income	2,126		1,824		3,734		4,918
Other, net	238		1,692		2,869		5,262
Adjusted OIBDA (Non-GAAP)	$       63,493		$       76,972		$      203,466		$      235,168

 

	Three Months Ended September 30,				Nine Months Ended September 30,
Array	2026		2025		2026		2025
(Dollars in thousands)
Net income from continuing operations (GAAP)	$       69,978		$      109,920		$      587,449		$      130,503
Add back:
Income tax expense (benefit)	(30,121)		(62,701)		138,147		(54,479)
Income before income taxes (GAAP)	39,857		47,219		725,596		76,024
Add back:
Interest expense	10,972		8,855		29,013		16,233
Depreciation, amortization and accretion	13,405		11,868		40,437		35,860
EBITDA (Non-GAAP)	64,234		67,942		795,046		128,117
Add back or deduct:
Expenses related to strategic alternatives review	5,934		489		13,512		2,349
Loss on impairment of licenses	—		47,679		—		47,679
(Gain) loss on asset disposals, net	1,233		707		5,946		620
(Gain) loss on license sales and exchanges, net	9		(1,323)		(566,459)		(6,123)
Short-term imputed spectrum lease income	(7,669)		(30,413)		(65,639)		(30,413)
Adjusted EBITDA (Non-GAAP)	63,741		85,081		182,406		142,229
Deduct:
Equity in earnings of unconsolidated entities	41,009		69,811		116,144		147,453
Interest and dividend income	4,442		8,909		15,095		15,267
Other, net	35		254		9		253
Adjusted OIBDA (Non-GAAP)	$       18,255		$          6,107		$        51,158		$      (20,744)

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.

	Nine Months Ended September 30, 2026
(Dollars in thousands)
Net income from continuing operations - Array (GAAP)	$                 587,449
Add back or deduct:
Income tax expense	138,147
Cash paid for income taxes1	(274,270)
Stock-based compensation expense	879
Short-term imputed spectrum lease income	(65,639)
Amortization of deferred debt charges	991
Equity in earnings of unconsolidated entities	(116,144)
Distributions from unconsolidated entities	89,584
(Gain) loss on license sales and exchanges, net	(566,459)
(Gain) loss on asset disposals, net	5,946
Depreciation, amortization and accretion	40,437
Expenses related to strategic alternatives review	13,512
Straight line and other non-cash revenue adjustments	(14,327)
Straight line expense adjustment	3,070
Maintenance and other capital expenditures	(5,172)
Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP)	$                (161,996)

1	Substantially all of the cash paid for income taxes are related to the sale of various wireless spectrum licenses in 2026.

 

View original content:https://www.prnewswire.com/news-releases/tds-reports-third-quarter-2026-results-302931830.html

SOURCE Telephone and Data Systems, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much additional stock repurchase capacity did TDS authorize?

The TDS board authorized an additional $250 million in share repurchases. TDS purchased approximately 6 million shares during the third quarter at an average price of $36.65 and continued buying after quarter-end, virtually exhausting its existing authorization.

What is TDS Telecom's updated 2026 financial guidance?

TDS Telecom expects revenue of $990–$1,010 million and capital expenditures of approximately $750 million. Its non-GAAP adjusted EBITDA forecast is $290–$310 million. Adjusted OIBDA, an operating earnings measure excluding investment income, is forecast at $280–$300 million.

How did acquisitions and divestitures affect TDS Telecom's connection counts?

A September 2026 acquisition added 7,800 connections, including 4,700 residential broadband connections. A December 2025 divestiture reduced connections by 12,500, including 5,100 residential broadband connections.

Why are Array's tower tenancy figures not directly comparable with 2025?

Array's tower tenancy figures have excluded DISH Wireless since March 31, 2026. Excluding DISH, the tenancy ratios would have been 0.95 at December 31, 2025, and 0.94 at September 30, 2025, rather than the reported 1.03 and 1.02. The September 30, 2026 ratio was 0.98.