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Spectrum deals, $11 dividend lift Array at Telephone and Data Systems (NYSE: TDS)

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Telephone and Data Systems, Inc. reported second quarter 2026 operating revenues from continuing operations of $309.3 million, up 4% from $298.5 million a year earlier. Net income attributable to common shareholders from continuing operations was $260.6 million, or diluted EPS of $2.24, compared with a $6.0 million loss and $(0.05) per share.

Performance was led by Array Digital Infrastructure, where site rental revenues grew 95% year over year and large gains on spectrum license sales drove operating income of $399.3 million. Array closed spectrum sales for $74.8 million, $86.4 million and $1.0 billion, funded an $11 per common share special dividend, and raised 2026 revenue and Adjusted EBITDA guidance.

At TDS Telecom, fiber expansion continued with roughly 66,000 new marketable fiber service addresses and 15,100 residential fiber net additions, but segment service revenues fell 6% year over year and 2026 revenue guidance was reduced to $1,000–$1,025 million while capital expenditure guidance increased to $625–$675 million. Consolidated free cash flow from continuing operations was negative $(168,034) thousand for the first half of 2026, and cash and cash equivalents were $2,194,014 thousand at June 30, 2026.

Positive

  • Net income attributable to TDS common shareholders from continuing operations rose to $260.6 million in Q2 2026 from a loss of $6.0 million a year earlier, with diluted EPS improving to $2.24 from $(0.05).
  • Array increased 2026 guidance, raising expected Adjusted EBITDA to $220–$235 million on revenue of $205–$215 million, supported by Q2 site rental revenues that grew 95% year over year to $53.2 million.
  • Array completed spectrum license sales for proceeds of $74.8 million, $86.4 million and $1.0 billion, enabling an $11 per TDS common share special dividend and contributing to consolidated cash and cash equivalents of $2,194,014 thousand at June 30, 2026.

Negative

  • TDS Telecom service revenues declined 6% year over year in Q2 2026 to $248.4 million, and total operating revenues for the segment were down 5% for the first half of 2026, reflecting divestitures and continued declines in legacy services.
  • TDS Telecom reduced its 2026 total operating revenue guidance from $1,015–$1,055 million to $1,000–$1,025 million while increasing capital expenditure guidance from $550–$600 million to $625–$675 million, which pressures near-term earnings and cash generation.
  • Consolidated free cash flow from continuing operations was negative at $(168,034) thousand for the first six months of 2026, compared with $(25,362) thousand in the prior-year period, driven largely by higher spending on property, plant and equipment.

Filing Explained

The August 7 Form 8-K reports that TDS’s proposal to acquire Array shares it does not own remains non-binding and is being evaluated by a special committee, so it does not establish a completed change in Array ownership for existing holders.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Total operating revenues from continuing operations $309.3 million Quarter ended June 30, 2026 vs $298.5 million in Q2 2025
Net income attributable to TDS common shareholders from continuing operations $260.6 million Q2 2026 vs $(6.0) million in Q2 2025
Diluted EPS from continuing operations $2.24 Q2 2026 vs $(0.05) in Q2 2025
Array spectrum sale proceeds $74.8 million; $86.4 million; $1.0 billion Proceeds from 700 MHz, 600 MHz and other licenses closed in Q2 2026
Special dividend per common share $11 Dividend paid June 25, 2026 funded by Array spectrum monetization
Free cash flow - continuing operations $(168,034) thousand Six months ended June 30, 2026 vs $(25,362) thousand in 2025
Cash, cash equivalents and restricted cash $2,198,212 thousand Balance at June 30, 2026 vs $559,262 thousand at June 30, 2025
TDS Telecom 2026 capital expenditures guidance $625–$675 million Updated from prior $550–$600 million range
Adjusted EBITDA financial
"Increased Adjusted EBITDA range to $220 million - $235 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted OIBDA financial
"Adjusted OIBDA of $300 million to $320 million"
Adjusted OIBDA is a company’s core operating profit before subtracting depreciation and amortization, further cleaned up by removing one-time or unusual items so it shows recurring cash-earning power. Think of it like measuring a car’s steady fuel efficiency after ignoring a flat tire or a rare detour—investors use it to compare underlying operational performance across periods and companies without distortion from non-recurring events or accounting timing.
free cash flow financial
"Free cash flow - continuing operations (Non-GAAP) $ (168,034)"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
tower tenancy rate financial
"Tower tenancy rate 2 0.98 0.96 1.03 1.02"
short-term imputed spectrum lease income financial
"Short-term imputed spectrum lease income (65)"
Adjusted Free Cash Flow financial
"Array Adjusted Free Cash Flow (AFCF) ... Adjusted Free Cash Flow from continuing operations"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Total operating revenues from continuing operations $309.3 million up 4% from $298.5 million in Q2 2025
Net income attributable to TDS common shareholders from continuing operations $260.6 million compared with $(6.0) million in Q2 2025
Diluted EPS from continuing operations $2.24 compared with $(0.05) in Q2 2025
TDS Telecom service revenues $248.4 million down 6% year over year in Q2 2026
Array site rental revenues $53.2 million up 95% year over year in Q2 2026
Guidance

For 2026, TDS Telecom guides to revenues of $1,000–$1,025 million, Adjusted EBITDA of $310–$330 million, and capital expenditures of $625–$675 million; Array guides to revenues of $205–$215 million, Adjusted EBITDA of $220–$235 million, and capital expenditures of $25–$35 million.

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FAQ

How did Telephone and Data Systems (TDS) perform financially in Q2 2026?
Telephone and Data Systems reported $309.3 million in operating revenues from continuing operations and net income attributable to common shareholders from continuing operations of $260.6 million, or diluted EPS of $2.24, compared with a $6.0 million loss and $(0.05) per share a year earlier.

How is Array Digital Infrastructure performing for Telephone and Data Systems (TDS)?
Array generated Q2 2026 site rental revenues of $53.2 million, up 95% year over year, and total operating revenues of $54.1 million. Operating income was $399.3 million, supported by gains on spectrum license sales, and 2026 Adjusted EBITDA guidance was raised to $220–$235 million.

What spectrum license sales and dividends did TDS report in 2026?
Array closed sales of certain 700 MHz licenses for $74.8 million, 600 MHz licenses for $86.4 million, and cellular and other spectrum licenses for $1.0 billion. These transactions supported an $11 per TDS common share special dividend paid on June 25, 2026.

What 2026 guidance did TDS provide for TDS Telecom and Array?
TDS Telecom now expects 2026 revenues of $1,000–$1,025 million, Adjusted EBITDA of $310–$330 million, and capital expenditures of $625–$675 million. Array guides to revenues of $205–$215 million, Adjusted EBITDA of $220–$235 million, and capital expenditures of $25–$35 million.

What are TDS’s cash position and free cash flow as of mid-2026?
For the six months ended June 30, 2026, TDS reported consolidated free cash flow from continuing operations of $(168,034) thousand. Despite this, cash, cash equivalents and restricted cash increased to $2,198,212 thousand, driven largely by proceeds from spectrum license divestitures at Array.
0001051512False00010515122026-08-072026-08-070001051512us-gaap:CommonClassBMember2026-08-072026-08-070001051512tds:PreferredStockMember1Member2026-08-072026-08-070001051512tds:PreferredStockMember2Member2026-08-072026-08-07

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2026
image1a27.jpg
TELEPHONE AND DATA SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware001-1415736-2669023
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)

30 North LaSalle Street, Suite 4000, Chicago, Illinois 60602
(Address of principal executive offices and zip code)

Registrant's telephone number, including area code: (312) 630-1900

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Shares, $.01 par valueTDSNew York Stock Exchange
Depositary Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par valueTDSPrUNew York Stock Exchange
Depositary Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par valueTDSPrVNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐
Emerging growth company
☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02. Results of Operations and Financial Condition
On August 7, 2026, Telephone and Data Systems, Inc. (TDS) issued a news release announcing its results of operations for the period ended June 30, 2026. A copy of the news release is attached hereto as Exhibit 99.1 and incorporated by reference herein. 
The information in this Item 2.02 of Form 8-K is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor will any such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d)   The following exhibits are being filed herewith:
Exhibit NumberDescription of Exhibits
99.1
Earnings Press Release dated August 7, 2026
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
TELEPHONE AND DATA SYSTEMS, INC.
Date:August 7, 2026By:/s/ Vicki L. Villacrez
Vicki L. Villacrez
Executive Vice President and Chief Financial Officer


Exhibit 99.1
NEWS RELEASE

image1a27a.jpg
As previously announced, TDS will hold a teleconference on August 7, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.
TDS reports second quarter 2026 results
TDS Telecom and Array both update guidance for 2026
CHICAGO (August 7, 2026) — Telephone and Data Systems, Inc. (NYSE: TDS) reported second quarter 2026 operating results.
“I am pleased with the progress our teams continue to make in executing our strategic objectives,” said Walter Carlson, TDS President and CEO. “During the quarter, TDS Telecom expanded its marketable fiber service footprint by approximately 66,000 addresses and increased its fiber service address guidance for the year. Array delivered another quarter of sequential tower tenancy growth, highlighting the value of our assets. In addition, Array completed the previously announced spectrum sale to Verizon, now having completed transactions to monetize virtually all of its spectrum outside of the C-Band.”


Highlights*

TDS Telecom
•Executing on fiber broadband strategy
◦Delivered approximately 66,000 marketable fiber service addresses
◦Grew fiber connections —15,100 residential fiber net additions
•Service revenue down 6%
◦Residential fiber revenue growth of 13% more than offset by impacts of divestitures and continued legacy declines
•Updated 2026 Guidance
◦Current service address delivery momentum drives increase in 2026 guidance to 250,000 - 300,000 marketable fiber service addresses, increased capital expenditure guidance to $625 million - $675 million
◦Updated 2026 Financial guidance
▪Revenues of $1,000 million to $1,025 million
▪Adjusted EBITDA of $310 million to $330 million
▪Adjusted OIBDA of $300 million to $320 million

Array
•Optimizing tower operations
◦Site rental revenues grew 95% year over year
◦Delivered consecutive quarter over quarter tower tenancy growth
•Continuing to close pending sales of wireless spectrum
◦Closed on sale of certain 700 MHz wireless spectrum licenses for total proceeds of $74.8 million on May 5, 2026
◦Closed on sale of certain 600 MHz wireless spectrum licenses for total proceeds of $86.4 million on May 12, 2026
◦Closed on sale of certain cellular and other spectrum licenses for total proceeds of $1 billion on June 1, 2026
◦Issued special dividend of $11 per common share on June 25, 2026
•Updated 2026 Guidance
◦Narrowed Revenue range to $205 million - $215 million on higher interim site revenue
◦Increased Adjusted EBITDA range to $220 million - $235 million
◦Capital expenditures range remains unchanged at $25 million - $35 million

*Comparisons are 2Q’25 to 2Q’26 unless otherwise noted
1

TDS reported total operating revenues from continuing operations of $309.3 million for the second quarter of 2026, versus $298.5 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and diluted earnings (loss) per share from continuing operations were $260.6 million and $2.24, respectively, for the second quarter of 2026 compared to $(6.0) million and $(0.05), 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”). A special committee of independent and disinterested directors of the Array Board of Directors has been formed to evaluate this proposal. For additional information on the Array Proposal, see TDS’ Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on May 8, 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 August 7, 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 TelecomPreviousCurrent
(Dollars in millions)
Total operating revenues$1,015-$1,055$1,000-$1,025
Adjusted OIBDA1 (Non-GAAP)
$300-$340$300-$320
Adjusted EBITDA1 (Non-GAAP)
$310-$350$310-$330
Capital expenditures$550-$600$625-$675
ArrayPreviousCurrent
(Dollars in millions)
Total operating revenues$200-$215$205-$215
Adjusted OIBDA1 (Non-GAAP)
$50-$65$60-$75
Adjusted EBITDA1 (Non-GAAP)
$200-$215$220-$235
Capital expenditures$25-$35Unchanged
2

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/AN/A
Add back:
Income tax expenseN/AN/A
Income (loss) before income taxes (GAAP)($15)-$5$775-$790
Add back:
Interest expense— 45 
Depreciation, amortization and accretion expense325 50 
EBITDA (Non-GAAP)1
$310-$330$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
$310-$330$220-$235
Deduct:
Equity in earnings of unconsolidated entities— 145 
Interest and dividend income5 15 
Other, net5 — 
Adjusted OIBDA (Non-GAAP)1
$300-$320$60-$75

3

Actual Results
Six Months Ended
June 30, 2026		Year Ended
December 31, 2025
TDS
Telecom		ArrayTDS
Telecom		Array
(Dollars in millions)
Net income (loss) from continuing operations (GAAP)$(4)$517 $28 $172 
Add back:
Income tax expense (benefit)(4)168 10 (31)
Income (loss) before income taxes (GAAP)$(8)$686 $38 $141 
Add back:
Interest expense— 18 (7)28 
Depreciation, amortization and accretion expense146 27 300 48 
EBITDA (Non-GAAP)1
$138 $731 $331 $218 
Add back or deduct:
Expenses related to strategic alternatives review— 8 6 2 
(Gain) loss on impairment of intangible assets— — 1 48 
(Gain) loss on asset disposals, net6 5 15 2 
(Gain) loss on sale of business and other exit costs, net2 — (23)— 
(Gain) loss on license sales and exchanges, net(2)(566)— (6)
Short-term imputed spectrum lease income— (58)— (69)
Adjusted EBITDA (Non-GAAP)1
$144 $119 $330 $194 
Deduct:
Equity in earnings of unconsolidated entities— 75 — 174 
Interest and dividend income2 11 6 19 
Other, net3 — 5 — 
Adjusted OIBDA (Non-GAAP)1
$140 $33 $319 $1 

Numbers may not foot due to rounding.

1EBITDA, 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, 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.
4

Conference Call Information
TDS will hold a conference call on August 7, 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/198119429

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.
Contacts
John Toomey, Treasurer and Vice President - Corporate Relations
john.toomey@tdsinc.com

Karen Samples, Corporate Finance and Investor Relations Senior Manager
karen.samples@tdsinc.com

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 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: whether any transaction related to the TDS non-binding proposal delivered to the Array Board of Directors to acquire all of the outstanding Array Common Shares not owned by TDS will be accepted, rejected, consummated, or abandoned; whether any such transaction, if accepted or completed, will result in additional value for shareholders and whether the process could result in adverse effects on either business; 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 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 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
5


TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended6/30/20263/31/202612/31/20259/30/20256/30/2025
Residential connections
Broadband
Incumbent Fiber134,300 130,200 127,300 123,500 121,200 
Incumbent Copper77,700 84,200 91,200 102,000 106,500 
Expansion Fiber179,600 168,500 160,600 150,700 141,800 
Cable176,100 179,100 182,800 186,100 188,200 
Total Broadband567,700 561,900 561,900 562,400 557,700 
Video105,600 107,200 111,500 114,300 116,500 
Voice209,300 216,900 228,900 242,200 248,700 
Wireless8,100 5,300 3,300 2,200 1,600 
Total Residential connections890,700 891,400 905,600 921,100 924,500 
Commercial connections163,600 166,500 173,900 180,300 184,300 
Total connections1
1,054,200 1,058,000 1,079,500 1,101,300 1,108,800 
Total residential fiber net adds15,100 10,900 15,100 11,200 10,300 
Total residential broadband net adds5,700 100 4,500 4,600 3,900 
Residential fiber churn2
1.2 %1.3 %1.2 %1.5 %1.1 %
Total residential broadband churn1.7 %1.8 %1.6 %1.7 %1.5 %
Residential revenue per connection3
$66.50 $66.41 $65.95 $65.66 $65.85 
Capital expenditures (thousands)$179,197 $125,963 $154,904 $102,429 $90,187 
Numbers may not foot due to rounding.
1Q2 2025 total connections include 12,900 connections, including 5,300 residential broadband connections, that were part of subsequent divestitures.
2Residential 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.
3Total 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.
6

Array Digital Infrastructure, Inc.
Summary Operating Data (Unaudited)
As of or for the Quarter Ended6/30/20263/31/202612/31/20259/30/2025
Capital expenditures from continuing operations (thousands)$3,895 $8,645 $12,933 $7,927 
Owned towers4,456 4,452 4,450 4,449 
Number of colocations1
4,362 4,290 4,572 4,517 
Tower tenancy rate2
0.98 0.96 1.03 1.02 
1Represents 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 due to the low probability of fulfilling its lease commitments.
2Calculated 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 due to the low probability of fulfilling its lease commitments. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94 for December 31, 2025 and September 30, 2025, respectively.
7

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
202620252026
vs. 2025		202620252026
vs. 2025
(Dollars and shares in thousands, except per share amounts)
Operating revenues
TDS Telecom$248,406 $264,931 (6)%$497,978 $522,291 (5)%
Array54,070 28,529 90 %106,082 55,513 91 %
All Other1
6,805 5,081 34 %14,671 11,170 31 %
Total operating revenues309,281 298,541 4 %618,731 588,974 5 %
Operating expenses
TDS Telecom256,684 250,959 2 %509,988 508,460 —
Array(345,193)46,719 N/M(453,966)103,329 N/M
All Other1
24,578 13,170 87 %45,679 23,426 95 %
Total operating expenses(63,931)310,848 N/M101,701 635,215 (84)%
Operating income (loss)
TDS Telecom(8,278)13,972 N/M(12,010)13,831 N/M
Array399,263 (18,190)N/M560,048 (47,816)N/M
All Other1
(17,773)(8,089)N/M(31,008)(12,256)N/M
Total operating income (loss)373,212 (12,307)N/M517,030 (46,241)N/M
Other income (expense)
Equity in earnings of unconsolidated entities37,126 42,952 (14)%79,028 79,471 (1)%
Interest and dividend income19,631 6,110 N/M33,417 12,381 N/M
Interest expense(11,388)(29,166)61 %(16,709)(53,074)69 %
Short-term imputed spectrum lease income23,770 — N/M57,970 — N/M
Other, net5,346 2,395 N/M10,796 5,117 N/M
Total other income74,485 22,291 N/M164,502 43,895 N/M
Income (loss) before income taxes447,697 9,984 N/M681,532 (2,346)N/M
Income tax expense (benefit)106,410 (4,224)N/M160,819 (12,347)N/M
Net income from continuing operations341,287 14,208 N/M520,713 10,001 N/M
Less: Net income from continuing operations attributable to noncontrolling interests, net of tax63,332 2,943 N/M96,143 4,667 N/M
Net income from continuing operations attributable to TDS shareholders277,955 11,265 N/M424,570 5,334 N/M
Net income from discontinued operations25,071 3,578 N/M22,683 19,749 15 %
Less: Net income from discontinued operations attributable to noncontrolling interests, net of tax4,660 3,272 42 %4,292 6,041 (29)%
Net income from discontinued operations attributable to TDS shareholders20,411 306 N/M18,391 13,708 34 %
Net income366,358 17,786 N/M543,396 29,750 N/M
Less: Net income attributable to noncontrolling interests, net of tax67,992 6,215 N/M100,435 10,708 N/M
Net income attributable to TDS shareholders298,366 11,571 N/M442,961 19,042 N/M
TDS Preferred Share dividends17,306 17,306 —34,613 34,613 —
Net income (loss) attributable to TDS common shareholders$281,060 $(5,735)N/M$408,348 $(15,571)N/M
8

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
202620252026
vs. 2025		202620252026
vs. 2025
(Dollars and shares in thousands, except per share amounts)
Basic weighted average shares outstanding114,500 115,229 (1)%114,193 114,908 (1)%
Basic earnings (loss) per share from continuing operations attributable to TDS common shareholders$2.28 $(0.05)N/M$3.42 $(0.25)N/M
Basic earnings from discontinued operations attributable to TDS common shareholders$0.17 $— N/M$0.16 $0.11 35 %
Basic earnings (loss) per share attributable to TDS common shareholders$2.45 $(0.05)N/M$3.58 $(0.14)N/M
Diluted weighted average shares outstanding116,291 115,229 1 %116,465 114,908 1 %
Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders$2.24 $(0.05)N/M$3.35 $(0.26)N/M
Diluted earnings from discontinued operations attributable to TDS common shareholders$0.18 $— N/M$0.15 $0.12 32 %
Diluted earnings (loss) per share attributable to TDS common shareholders$2.42 $(0.05)N/M$3.50 $(0.14)N/M
N/M - Percentage change not meaningful.
1Consists of corporate and other operations and intercompany eliminations.
9

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Six Months Ended
June 30,
20262025
(Dollars in thousands)
Cash flows from operating activities
Net income$543,396 $29,750 
Net income from discontinued operations22,683 19,749 
Net income from continuing operations520,713 10,001 
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion174,720 170,349 
Bad debts expense5,122 2,994 
Stock-based compensation expense8,428 17,502 
Deferred income taxes, net(130,935)(14,312)
Equity in earnings of unconsolidated entities(79,028)(79,471)
Distributions from unconsolidated entities66,553 87,938 
(Gain) loss on asset disposals, net10,579 7,795 
(Gain) loss on sale of business and other exit costs, net1,562 (8,877)
(Gain) loss on license sales and exchanges, net(553,158)(4,800)
Other operating activities487 2,619 
Changes in assets and liabilities from operations
Accounts receivable(3,896)(17,607)
Inventory287 212 
Accounts payable6,732 415 
Customer deposits and deferred revenues(57,165)(724)
Accrued taxes232,212 (1,911)
Accrued interest(563)(604)
Other assets and liabilities(51,585)(45,560)
Net cash provided by operating activities - continuing operations151,065 125,959 
Net cash provided by (used in) operating activities - discontinued operations(28,037)481,307 
Net cash provided by operating activities123,028 607,266 
Cash flows from investing activities
Cash paid for additions to property, plant and equipment(317,919)(150,482)
Cash paid for licenses— (4,145)
Cash received from divestitures2,188,235 24,162 
Other investing activities1,925 2,512 
Net cash provided by (used in) investing activities - continuing operations1,872,241 (127,953)
Net cash used in investing activities - discontinued operations— (135,561)
Net cash provided by (used in) investing activities1,872,241 (263,514)
Cash flows from financing activities
Issuance of long-term debt1,300 — 
Repayment of long-term debt(150,729)(17,076)
Tax withholdings, net of cash receipts, for TDS stock-based compensation awards(34,219)(24,483)
Tax withholdings, net of cash receipts, for Array stock-based compensation awards(2,068)(35,250)
Repurchase of Array Common Shares— (21,360)
Dividends paid to TDS shareholders(43,771)(43,830)
Array dividends paid to noncontrolling public shareholders(332,480)— 
Payment of debt issuance costs— (2,467)
Distributions to noncontrolling interests(3,540)(2,391)
Cash paid for software license agreements(1,180)(839)
Payments to acquire additional interest in subsidiaries(593)— 
Other financing activities73 (314)
Net cash used in financing activities - continuing operations(567,207)(148,010)
Net cash used in financing activities - discontinued operations— (19,702)
Net cash used in financing activities$(567,207)$(167,712)
10

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
Six Months Ended
June 30,
20262025
(Dollars in thousands)
Net increase in cash, cash equivalents and restricted cash$1,428,062 $176,040 
Cash, cash equivalents and restricted cash
Beginning of period770,150 383,222 
End of period$2,198,212 $559,262 
11

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
June 30, 2026December 31, 2025
(Dollars in thousands)
Current assets
Cash and cash equivalents$2,194,014 $765,952 
Accounts receivable, net105,830 109,981 
Inventory, net3,775 4,062 
Prepaid expenses33,697 28,206 
Income taxes receivable— 1,292 
Other current assets13,314 13,976 
Total current assets2,350,630 923,469 
Non-current assets held for sale47,475 1,598,131 
Licenses1,595,349 1,642,972 
Other intangible assets, net117,108 131,673 
Investments in unconsolidated entities475,077 461,922 
Property, plant and equipment, net
3,123,477 2,965,455 
Operating lease right-of-use assets506,665 515,081 
Other assets and deferred charges167,559 159,600 
Total assets$8,383,340 $8,398,303 
12

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
June 30, 2026December 31, 2025
(Dollars in thousands, except per share amounts)
Current liabilities
Current portion of long-term debt$9,444 $5,274 
Accounts payable130,314 115,822 
Customer deposits and deferred revenues66,280 125,140 
Accrued interest2,273 2,836 
Accrued taxes260,113 46,721 
Accrued compensation40,335 56,774 
Short-term operating lease liabilities27,634 26,180 
Current liabilities of discontinued operations24,856 20,242 
Other current liabilities54,387 41,322 
Total current liabilities615,636 440,311 
Deferred liabilities and credits
Deferred income tax liability, net600,947 743,633 
Long-term operating lease liabilities541,268 549,617 
Other deferred liabilities and credits552,629 574,025 
Long-term debt, net670,646 823,364 
Total equity5,402,214 5,267,353 
Total liabilities and equity$8,383,340 $8,398,303 
13

Balance Sheet Highlights
(Unaudited)
June 30, 2026
TDSTDS CorporateIntercompanyTDS
TelecomArray& OtherEliminationsConsolidated
(Dollars in thousands)
Cash and cash equivalents$222,844 $416,436 $1,780,879 $(226,145)$2,194,014 
Licenses and other intangible assets$117,260 $1,594,649 $548 $— $1,712,457 
Investment in unconsolidated entities3,947 421,607 60,838 (11,315)475,077 
$121,207 $2,016,256 $61,386 $(11,315)$2,187,534 
Property, plant and equipment, net$2,733,837 $374,700 $14,940 $— $3,123,477 
Long-term debt, net:
Current portion$164 $8,125 $1,155 $— $9,444 
Non-current portion2,765 666,757 1,124 — 670,646 
$2,929 $674,882 $2,279 $— $680,090 
14

TDS Telecom Highlights
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
202620252026
vs. 2025		202620252026
vs. 2025
(Dollars in thousands)
Operating revenues
Residential
Incumbent$75,868 $84,665 (10)%$153,160 $170,259 (10)%
Expansion45,656 36,580 25 %89,218 70,986 26 %
Cable56,240 62,174 (10)%113,982 126,022 (10)%
Total residential177,764 183,419 (3)%356,360 367,267 (3)%
Commercial32,776 34,617 (5)%65,571 69,251 (5)%
Wholesale37,817 46,704 (19)%75,934 85,381 (11)%
Total service revenues248,357 264,740 (6)%497,865 521,899 (5)%
Equipment revenues49 191 (74)%113 392 (71)%
Total operating revenues248,406 264,931 (6)%497,978 522,291 (5)%
Cost of operations (excluding Depreciation, amortization and accretion reported below)100,583 97,049 4 %197,765 198,013 —
Cost of equipment and products118 116 2 %229 380 (40)%
Selling, general and administrative79,038 82,555 (4)%160,098 165,702 (3)%
Depreciation, amortization and accretion73,585 73,137 1 %146,142 144,577 1 %
(Gain) loss on asset disposals, net4,960 6,206 (20)%5,792 7,868 (26)%
(Gain) loss on sale of business and other exit costs, net— (8,104)N/M1,562 (8,080)N/M
(Gain) loss on license sales and exchanges, net(1,600)— N/M(1,600)— N/M
Total operating expenses256,684 250,959 2 %509,988 508,460 —
Operating income (loss)$(8,278)$13,972 N/M$(12,010)$13,831 N/M
N/M - Percentage change not meaningful
15

Array Digital Infrastructure, Inc. Highlights
(Unaudited)

Three Months Ended
June 30,		Six Months Ended
June 30,
202620252026
vs. 2025		202620252026
vs. 2025
(Dollars in thousands)
Operating revenues
Site rental$53,175 $27,230 95 %$104,199 $53,825 94 %
Services895 1,299 (31)%1,883 1,688 12 %
Total operating revenues54,070 28,529 90 %106,082 55,513 91 %
Operating expenses
Cost of operations (excluding Depreciation, amortization and accretion reported below)23,497 19,396 21 %45,106 35,687 26 %
Selling, general and administrative22,906 19,337 18 %35,651 48,537 (27)%
Depreciation, amortization and accretion 14,428 11,999 20 %27,032 23,992 13 %
(Gain) loss on asset disposals, net3,809 (313)N/M4,713 (87)N/M
(Gain) loss on license sales and exchanges, net(409,833)(3,700)N/M(566,468)(4,800)N/M
Total operating expenses(345,193)46,719 N/M(453,966)103,329 N/M
Operating income (loss)$399,263 $(18,190)N/M$560,048 $(47,816)N/M
N/M - Percentage change not meaningful
16

Telephone and Data Systems, Inc.
Financial Measures
(Unaudited)
Free Cash Flow
Six Months Ended
June 30,
TDS CONSOLIDATED20262025
(Dollars in thousands)
Cash flows from operating activities - continuing operations (GAAP)$151,065 $125,959 
Cash paid for additions to property, plant and equipment(317,919)(150,482)
Cash paid for software license agreements(1,180)(839)
Free cash flow - continuing operations (Non-GAAP)1
$(168,034)$(25,362)
1Free 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.
17

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
June 30,		Six Months Ended
June 30,
TDS Telecom2026202520262025
(Dollars in thousands)
Net income (loss) (GAAP)$(4,993)$16,084 $(3,946)$19,611 
Add back:
Income tax expense (benefit)(1,909)2,174 (3,998)3,309 
Income (loss) before income taxes (GAAP)(6,902)18,258 (7,944)22,920 
Add back:
Interest expense332 (960)175 (2,424)
Depreciation, amortization and accretion73,585 73,137 146,142 144,577 
EBITDA (Non-GAAP)67,015 90,435 138,373 165,073 
Add back or deduct:
Expenses related to strategic alternatives review— — 87 — 
(Gain) loss on asset disposals, net4,960 6,206 5,792 7,868 
(Gain) loss on sale of business and other exit costs, net— (8,104)1,562 (8,080)
(Gain) loss on license sales and exchanges, net(1,600)— (1,600)— 
Adjusted EBITDA (Non-GAAP)70,375 88,537 144,214 164,861 
Deduct:
Interest and dividend income463 1,693 1,608 3,094 
Other, net1,245 1,633 2,633 3,571 
Adjusted OIBDA (Non-GAAP)$68,667 $85,211 $139,973 $158,196 
18

Three Months Ended
June 30,		Six Months Ended
June 30,
Array2026202520262025
(Dollars in thousands)
Net income from continuing operations (GAAP)$337,447 $15,099 $517,472 $20,583 
Add back:
Income tax expense115,870 8,415 168,268 8,222 
Income before income taxes (GAAP)453,317 23,514 685,740 28,805 
Add back:
Interest expense10,860 3,711 18,040 7,378 
Depreciation, amortization and accretion14,428 11,999 27,032 23,992 
EBITDA (Non-GAAP)478,605 39,224 730,812 60,175 
Add back or deduct:
Expenses related to strategic alternatives review7,391 715 7,578 1,860 
(Gain) loss on asset disposals, net3,809 (313)4,713 (87)
(Gain) loss on license sales and exchanges, net(409,833)(3,700)(566,468)(4,800)
Short-term imputed spectrum lease income(23,770)— (57,970)— 
Adjusted EBITDA (Non-GAAP)56,202 35,926 118,665 57,148 
Deduct:
Equity in earnings of unconsolidated entities34,726 41,714 75,135 77,641 
Interest and dividend income6,431 3,701 10,653 6,358 
Other, net(13)— (26)— 
Adjusted OIBDA (Non-GAAP)$15,058 $(9,489)$32,903 $(26,851)

19

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.
Six Months Ended June 30, 2026
(Dollars in thousands)
Net income from continuing operations - Array (GAAP)$517,472 
Add back or deduct:
Income tax expense168,268 
Cash paid for income taxes(78,623)
Stock-based compensation expense540 
Short-term imputed spectrum lease income(57,970)
Amortization of deferred debt charges655 
Equity in earnings of unconsolidated entities(75,135)
Distributions from unconsolidated entities66,553 
(Gain) loss on license sales and exchanges, net(566,468)
(Gain) loss on asset disposals, net4,713 
Depreciation, amortization and accretion27,032 
Expenses related to strategic alternatives review7,578 
Straight line and other non-cash revenue adjustments(8,310)
Straight line expense adjustment2,811 
Maintenance and other capital expenditures(2,511)
Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP)$6,605 
20

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