Aug 7, 2026, 7:35 AM ETCommunication Services

Telephone and Data Systems, Inc. — Second Quarter 2026 Earnings Summary

TDSTELEPHONE & DATA SYSTEMS INC

Financial Performance

Total operating revenues from continuing operations were $309.3 million for the second quarter of 2026, an increase of 4% year-over-year compared to $298.5 million in the same period in 2025.
Net income attributable to TDS common shareholders from continuing operations was $260.6 million, or $2.24 per diluted share, compared to a net loss of $6.0 million, or $0.05 per diluted share, in the prior year period.
TDS Telecom service revenue decreased 6% year-over-year, with residential fiber revenue growth of 13% offset by impacts of divestitures and legacy declines.
Array site rental revenues grew 95% year-over-year.
Consolidated net cash provided by operating activities for the six months ended June 30, 2026, was $123.0 million, compared to $607.3 million in the prior year period.
Consolidated free cash flow (continuing operations) for the six months ended June 30, 2026, was $(168.0) million, compared to $(25.4) million in the prior year period.
Cash and cash equivalents increased to $2.19 billion as of June 30, 2026, from $770.2 million at the beginning of the period.
Long-term debt, net, decreased to $670.6 million as of June 30, 2026, from $823.4 million as of December 31, 2025.

TDS Telecom updated 2026 guidance to 250,000–300,000 marketable fiber service addresses, up from previous estimates, driven by current service address delivery momentum.
TDS Telecom updated 2026 capital expenditure guidance to $625 million–$675 million, up from the previous range of $550 million–$600 million.
TDS Telecom updated 2026 financial guidance to revenues of $1,000 million–$1,025 million (previously $1,015 million–$1,055 million), Adjusted EBITDA of $310 million–$330 million (previously $310 million–$350 million), and Adjusted OIBDA of $300 million–$320 million (previously $300 million–$340 million).
Array updated 2026 revenue guidance to $205 million–$215 million, up from the previous range of $200 million–$215 million, based on higher interim site revenue.
Array updated 2026 Adjusted EBITDA guidance to $220 million–$235 million, up from the previous range of $200 million–$215 million.
Array's 2026 capital expenditure guidance remains unchanged at $25 million–$35 million.

TDS Telecom delivered approximately 66,000 marketable fiber service addresses and added 15,100 residential fiber connections in the second quarter.
TDS Telecom expanded its fiber service footprint, with expansion fiber connections reaching 179,600 as of June 30, 2026.
Array delivered consecutive quarters of sequential tower tenancy growth, with a tenancy rate of 0.98 as of June 30, 2026.
Array completed the sale of certain 700 MHz wireless spectrum licenses for $74.8 million on May 5, 2026.
Array completed the sale of certain 600 MHz wireless spectrum licenses for $86.4 million on May 12, 2026.
Array completed the sale of certain cellular and other spectrum licenses for $1 billion on June 1, 2026.
Array has completed transactions to monetize virtually all of its spectrum outside of the C-Band.

TDS Telecom continues to execute on its fiber broadband strategy, growing residential fiber connections despite legacy declines in other service lines.
Array's tower business demonstrates value through sequential tenancy growth and significant revenue increases from site rentals.
The company faces competition from fixed wireless and satellite providers, as noted in risk factors.

Risks include the uncertainty of the non-binding proposal to acquire all outstanding Array Common Shares not owned by TDS.
Potential adverse effects on either business if the Array transaction is not accepted, rejected, consummated, or abandoned.
Intense competition in the telecommunications industry, 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.
Risks related to the ability to attract talent, protect land rights under towers, and comply with debt covenants.
Regulatory environment changes and potential impacts of cyber-attacks or network security breaches.

Walter Carlson, TDS President and CEO, stated, "I am pleased with the progress our teams continue to make in executing our strategic objectives."
Management highlighted the value of Array's assets following consecutive quarters of tower tenancy growth.
Management noted that TDS Telecom's current service address delivery momentum is driving the increase in 2026 guidance.

On May 7, 2026, TDS delivered a non-binding proposal to the Array Board of Directors to acquire all outstanding Array Common Shares not owned by TDS.
A special committee of independent and disinterested directors of the Array Board of Directors was formed to evaluate the proposal.
Array issued a special dividend of $11 per common share on June 25, 2026.
TDS Telecom reported a decrease in total residential connections from 924,500 in Q2 2025 to 890,700 in Q2 2026.
TDS Telecom reported a decrease in total broadband connections from 557,700 in Q2 2025 to 567,700 in Q2 2026, reflecting growth in fiber and declines in cable.
Array's Adjusted OIBDA for the six months ended June 30, 2026, was $33 million, compared to a loss of $1 million in the prior year period.
TDS Telecom Adjusted OIBDA for the six months ended June 30, 2026, was $140 million, compared to $319 million in the prior year period.