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CHICAGO, Aug. 19, 2026 /PRNewswire/ -- The board of directors of Telephone and Data Systems, Inc. (NYSE: TDS) has declared third quarter 2026 dividends on its Common Shares, Series A Common Shares, Series UU Preferred Shares and Series VV Preferred Shares. TDS is paying a quarterly dividend of $0.04 per Common Share and Series A Common Share payable on September 30, 2026, to holders of record on September 15, 2026.

Key Takeaways TDS posted $2.24 in Q2 EPS as spectrum transactions helped lift net income to $260.6 million.Fiber addresses grew rapidly, but legacy declines pushed TDS Telecom revenue down 6% year over year.TDS raised its fiber target and capex outlook as Array shifts toward recurring tower operations. Telephone and Data Systems, Inc. (TDS - Free Report) reported a sharp improvement in second-quarter 2026 earnings, but the headline gain was driven partly by spectrum monetization at Array Digital Infrastructure. Earnings reached $2.24 per share compared with a loss of 5 cents a year earlier, while operating revenues rose 3.6% to $309.3 million. The quarter also showed faster fiber deployment at TDS Telecom, making the sustainability of the earnings improvement an important consideration for investors.

TDS Earnings Benefit From Spectrum SalesTDS reported $2.24 per share in second-quarter earnings, up from a loss of 5 cents in the year-ago quarter. Earnings topped the Zacks Consensus Estimate, producing a 100% surprise, while revenues missed the $315 million consensus estimate by 1.83%.

Array’s spectrum monetization was a major contributor to the earnings improvement. Array completed a $1 billion spectrum transaction with Verizon Communications Inc. (VZ - Free Report) in June and about $168 million of additional spectrum sales to T-Mobile US, Inc. (TMUS - Free Report) in May. The transactions helped lift net income attributable to TDS common shareholders to $260.6 million from a $6 million loss a year earlier.

The distinction between transaction-related gains and recurring operations is important. Array’s license sales boosted reported results, but TDS excludes the gain on license sales and exchanges when calculating Adjusted EBITDA. That measure provides a clearer view of underlying operating performance.

TDS Fiber Growth Broadens the Revenue BaseTDS Telecom continued to expand its fiber footprint during the quarter. The business delivered approximately 66,000 new marketable fiber service addresses, bringing the first-half total to about 106,000. Residential fiber net additions reached 15,100, up 47% year over year. Marketable fiber service addresses totaled approximately 1.17 million, with 60% of service addresses served by fiber.

Fiber growth is beginning to offset pressure from legacy operations, but it has not yet reversed the broader revenue decline. TDS Telecom generated $248 million of operating revenues, down 6% year over year, as copper and cable declines and divestitures outweighed a 13% increase in fiber revenue. Adjusted EBITDA declined 21% to $70 million, while capital expenditures nearly doubled to $179 million as construction activity accelerated.

Management raised its 2026 fiber service address delivery target to 250,000-300,000 from 200,000-250,000 previously. The company continues to target 2.1 million marketable fiber service addresses over the long term.

TDS Guidance Shows a Costly TransitionThe updated outlook captures the trade-off between faster fiber deployment and weaker near-term financial performance. TDS Telecom’s 2026 revenue guidance was reduced to $1-$1.025 billion from $1.015-$1.055 billion, while Adjusted EBITDA guidance was narrowed to $310-$330 million from $310-$350 million. At the same time, fiber service address guidance increased and capital expenditure guidance rose to $625-$675 million from $550-$600 million.

The higher spending reflects the construction required to expand the fiber footprint. TDS Telecom’s second-quarter capital expenditures nearly doubled to $179 million, making cash generation an important measure of whether the additional fiber investment will translate into sustainable operating gains.

The earnings picture therefore remains mixed. Fiber deployment and customer additions are accelerating, but legacy revenue declines and higher investment are keeping pressure on the telecom segment’s near-term profitability.

TDS Array Shifts Toward Tower OperationsArray’s second-quarter results also reflected its transition toward a tower-focused operating model. Operating revenues increased 90% year over year to $54.1 million, while Adjusted EBITDA rose 56% to $56.2 million.

The underlying tower indicators improved as well. Cash site rental revenue increased 65% year over year excluding T-Mobile interim revenues and DISH revenues, while the tower tenancy rate increased to 0.98 from 0.96 in the first quarter, excluding DISH colocations.

Spectrum monetization is helping Array reduce its exposure to retained wireless licenses while it focuses more heavily on recurring tower operations. TDS said Array completed transactions that monetized virtually all of its spectrum outside the C-Band. The company also issued an $11 special dividend per common share in June.

TDS Ratings Frame the Earnings SignalTDS currently carries a Zacks Rank #1 (Strong Buy). Its Zacks Style Scores are Value Score of C, Growth Score of F, Momentum Score of B and VGM Score of F. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Style Scores provide additional context to the Zacks Rank. The Style Score framework uses Value, Growth and Momentum characteristics alongside the Zacks Rank, while the VGM Score combines the three individual styles. The Zacks Style Score Education material emphasizes that earnings estimate revisions remain the key factor behind the Zacks Rank, while favorable Style Scores can provide an additional signal.

For TDS, the second-quarter results present both sides of the investment case. The earnings beat, faster fiber deployment and improving tower metrics provide evidence of operational progress. However, a material portion of the earnings increase came from spectrum monetization, while TDS Telecom continues to face legacy declines and higher capital requirements. Investors therefore need to distinguish the one-time benefit from spectrum sales from the recurring earnings potential of the company’s expanding fiber and tower businesses.

Key Takeaways TDS benefited from $1.17 billion in spectrum sales, lifting net income to $260.6 million.Fiber net additions rose 47% to 15,100, while marketable fiber addresses reached 66,000.TDS raised its fiber target, boosting capital spending guidance to $625 million-$675 million. Telephone and Data Systems, Inc. (TDS - Free Report) reported second-quarter 2026 earnings of $2.24 per share, up from a loss of $0.05 cents in the year-ago quarter, while total operating revenues rose 3.6% year over year to $309.3 million. Earnings topped the Zacks Consensus Estimate, delivering the 100% surprise provided in the earnings data, while revenue missed the $315 million consensus by 1.83%.

The sharp earnings improvement reflected gains from Array Digital Infrastructure’s wireless spectrum sales, while TDS Telecom continued expanding its fiber footprint. TDS Telecom delivered approximately 66,000 marketable fiber service addresses in the quarter, and residential fiber net additions rose 47% year over year to 15,100.

TDS Gains From Spectrum SalesTDS benefited materially from Array’s spectrum monetization during the quarter. Array closed a transaction with Verizon in June for $1 billion and completed additional sales to T-Mobile in May totaling about $168 million. The transactions helped lift TDS’ net income attributable to common shareholders to $260.6 million from a $6.0 million loss in the year-ago period.

Array’s license sales also boosted its operating profile. Second-quarter operating revenues rose 90% year over year to $54.1 million, while adjusted EBITDA increased 56% to $56.2 million. The gain on license sales was excluded from adjusted EBITDA, which provides a clearer view of underlying operating performance.

Telephone and Data Systems Expands FiberTDS Telecom remained focused on its fiber-led transformation. The business added approximately 66,000 marketable fiber service addresses in the second quarter, bringing the first-half total to about 106,000. Management called this the strongest first-half delivery in company history and raised the full-year address target to 250,000-300,000.

The fiber build is translating into customer gains. Residential fiber net additions reached 15,100, up 47% year over year. TDS Telecom now serves nearly 1.2 million fiber service addresses, representing 60% of its footprint, while 80% of addresses are capable of gig speeds.

TDS Telecom Faces Legacy PressureTDS Telecom generated $248 million of operating revenues, down 6% year over year. Revenue pressure from copper and cable operations remained the key headwind, while divestitures also reduced the top line. Residential revenues fell to $178 million from $183 million, with fiber revenues rising 13% to help offset declines elsewhere.

Cash expenses were $180 million, unchanged from the year-ago quarter, as cost-management savings offset spending tied to expansion markets and inflation. Adjusted EBITDA declined 21% to $70 million, while capital expenditures nearly doubled to $179 million as construction activity accelerated.

Telephone and Data Systems Optimizes TowersArray’s tower business continued to improve its operating momentum. Cash site rental revenue increased 65% year over year when excluding T-Mobile interim revenues and DISH revenues. The tower tenancy rate rose to 0.98 from 0.96 in the first quarter, excluding DISH colocations.

The company also continued addressing its tenantless tower portfolio. T-Mobile has until January 2028 to finalize committed site selections, after which Array expects to own between 1,000 and 1,700 tenantless towers. Management is pursuing lease-up, ground lease optimization and decommissioning where economic viability is limited.

Telephone and Data Systems Improves Financial FlexibilityTelephone and Data Systems strengthened its liquidity position during the first half of 2026, helped by proceeds from spectrum monetization. Cash and cash equivalents totaled $2.19 billion as of June 30, 2026, compared with $765.95 million at the end of 2025. Long-term debt, net, declined to $670.65 million from $823.36 million over the same period.

Net cash provided by operating activities from continuing operations was $151.07 million in the first half of 2026, up from $125.96 million in the year-ago period. However, free cash flow from continuing operations was negative $168.03 million versus negative $25.36 million a year earlier, reflecting higher capital spending as TDS accelerated its fiber deployment.

TDS Updates 2026 OutlookTDS Telecom lowered its full-year revenue outlook to $1.00 billion-$1.025 billion from $1.015- billion-$1.055 billion and narrowed adjusted EBITDA guidance to $310 million-$330 million from $310 million-$350 million. At the same time, fiber service address guidance increased, prompting a higher capital expenditure range of $625 million-$675 million.

Array narrowed revenue guidance to $205 million-$215 million and raised adjusted EBITDA guidance to $220 million-$235 million. Its capital expenditure range remained $25 million-$35 million. Array also paid a special dividend of $11 per common share in June, while TDS had about $520 million remaining under its share repurchase authorization at quarter-end.

TDS’s Zacks RankTDS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Upcoming ReleasesKeysight Technologies, Inc. (KEYS - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.

Analog Devices, Inc. (ADI - Free Report) is set to release third-quarter fiscal 2026 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.

Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.

Applied Materials, Inc. (AMAT - Free Report) is scheduled to release third-quarter fiscal 2026 earnings on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 35.48% from the year-ago reported figure.

Applied Materials has a long-term earnings growth expectation of 32.44%. The company delivered an average earnings surprise of 6.06% in the last four reported quarters.

Telephone and Data Systems, Inc. (TDS) Q2 2026 Earnings Call Transcript

TDS Telecom and Array both update guidance for 2026

, /PRNewswire/ --

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.

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

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 Telecom

Previous

Current

(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

Array

Previous

Current

(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-$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)

($15)-$5

$775-$790

Add back:

Interest expense

—

45

Depreciation, amortization and accretion expense

325

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 income

5

15

Other, net

5

—

Adjusted OIBDA (Non-GAAP)1

$300-$320

$60-$75

Actual Results

Six Months Ended

June 30, 2026

Year Ended

December 31, 2025

TDS

Telecom

Array

TDS

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 expense

146

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, net

6

5

15

2

(Gain) loss on sale of business and other exit costs, net

2

—

(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 income

2

11

6

19

Other, net

3

—

5

—

Adjusted OIBDA (Non-GAAP)1

$         140

$           33

$         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, 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.

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.

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 

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

6/30/2026

3/31/2026

12/31/2025

9/30/2025

6/30/2025

Residential connections

Broadband

Incumbent Fiber

134,300

130,200

127,300

123,500

121,200

Incumbent Copper

77,700

84,200

91,200

102,000

106,500

Expansion Fiber

179,600

168,500

160,600

150,700

141,800

Cable

176,100

179,100

182,800

186,100

188,200

Total Broadband

567,700

561,900

561,900

562,400

557,700

Video

105,600

107,200

111,500

114,300

116,500

Voice

209,300

216,900

228,900

242,200

248,700

Wireless

8,100

5,300

3,300

2,200

1,600

Total Residential connections

890,700

891,400

905,600

921,100

924,500

Commercial connections

163,600

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 adds

15,100

10,900

15,100

11,200

10,300

Total residential broadband net adds

5,700

100

4,500

4,600

3,900

Residential fiber churn2

1.2 %

1.3 %

1.2 %

1.5 %

1.1 %

Total residential broadband churn

1.7 %

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.

1

Q2 2025 total connections include 12,900 connections, including 5,300 residential broadband connections, that were part of subsequent divestitures. 

2

Residential fiber churn represents the percentage of incumbent and expansion fiber connections that disconnected service each month. These rates represent the average monthly churn rate for each respective period.

3

Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.

Array Digital Infrastructure, Inc.

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

6/30/2026

3/31/2026

12/31/2025

9/30/2025

Capital expenditures from continuing operations (thousands)

$       3,895

$       8,645

$      12,933

$       7,927

Owned towers

4,456

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

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 due to the low probability of fulfilling its lease commitments.

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 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.

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

vs. 2025

2026

2025

2026

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) %

Array

54,070

28,529

90 %

106,082

55,513

91 %

All Other1

6,805

5,081

34 %

14,671

11,170

31 %

Total operating revenues

309,281

298,541

4 %

618,731

588,974

5 %

Operating expenses

TDS Telecom

256,684

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/M

101,701

635,215

(84) %

Operating income (loss)

TDS Telecom

(8,278)

13,972

N/M

(12,010)

13,831

N/M

Array

399,263

(18,190)

N/M

560,048

(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/M

517,030

(46,241)

N/M

Other income (expense)

Equity in earnings of unconsolidated entities

37,126

42,952

(14) %

79,028

79,471

(1) %

Interest and dividend income

19,631

6,110

N/M

33,417

12,381

N/M

Interest expense

(11,388)

(29,166)

61 %

(16,709)

(53,074)

69 %

Short-term imputed spectrum lease income

23,770

—

N/M

57,970

—

N/M

Other, net

5,346

2,395

N/M

10,796

5,117

N/M

Total other income

74,485

22,291

N/M

164,502

43,895

N/M

Income (loss) before income taxes

447,697

9,984

N/M

681,532

(2,346)

N/M

Income tax expense (benefit)

106,410

(4,224)

N/M

160,819

(12,347)

N/M

Net income from continuing operations

341,287

14,208

N/M

520,713

10,001

N/M

Less: Net income from continuing operations
attributable to noncontrolling interests, net of tax

63,332

2,943

N/M

96,143

4,667

N/M

Net income from continuing operations attributable
to TDS shareholders

277,955

11,265

N/M

424,570

5,334

N/M

Net income from discontinued operations

25,071

3,578

N/M

22,683

19,749

15 %

Less: Net income from discontinued operations
attributable to noncontrolling interests, net of tax

4,660

3,272

42 %

4,292

6,041

(29) %

Net income from discontinued operations
attributable to TDS shareholders

20,411

306

N/M

18,391

13,708

34 %

Net income

366,358

17,786

N/M

543,396

29,750

N/M

Less: Net income attributable to noncontrolling
interests, net of tax

67,992

6,215

N/M

100,435

10,708

N/M

Net income attributable to TDS shareholders

298,366

11,571

N/M

442,961

19,042

N/M

TDS Preferred Share dividends

17,306

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

Basic weighted average shares outstanding

114,500

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 outstanding

116,291

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.

1

Consists of corporate and other operations and intercompany eliminations.

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Six Months Ended

June 30,

2026

2025

(Dollars in thousands)

Cash flows from operating activities

Net income

$     543,396

$      29,750

Net income from discontinued operations

22,683

19,749

Net income from continuing operations

520,713

10,001

Add (deduct) adjustments to reconcile net income to net cash flows from operating activities

Depreciation, amortization and accretion

174,720

170,349

Bad debts expense

5,122

2,994

Stock-based compensation expense

8,428

17,502

Deferred income taxes, net

(130,935)

(14,312)

Equity in earnings of unconsolidated entities

(79,028)

(79,471)

Distributions from unconsolidated entities

66,553

87,938

(Gain) loss on asset disposals, net

10,579

7,795

(Gain) loss on sale of business and other exit costs, net

1,562

(8,877)

(Gain) loss on license sales and exchanges, net

(553,158)

(4,800)

Other operating activities

487

2,619

Changes in assets and liabilities from operations

Accounts receivable

(3,896)

(17,607)

Inventory

287

212

Accounts payable

6,732

415

Customer deposits and deferred revenues

(57,165)

(724)

Accrued taxes

232,212

(1,911)

Accrued interest

(563)

(604)

Other assets and liabilities

(51,585)

(45,560)

Net cash provided by operating activities - continuing operations

151,065

125,959

Net cash provided by (used in) operating activities - discontinued operations

(28,037)

481,307

Net cash provided by operating activities

123,028

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 divestitures

2,188,235

24,162

Other investing activities

1,925

2,512

Net cash provided by (used in) investing activities - continuing operations

1,872,241

(127,953)

Net cash used in investing activities - discontinued operations

—

(135,561)

Net cash provided by (used in) investing activities

1,872,241

(263,514)

Cash flows from financing activities

Issuance of long-term debt

1,300

—

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 activities

73

(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)

Net increase in cash, cash equivalents and restricted cash

$  1,428,062

$    176,040

Cash, cash equivalents and restricted cash

Beginning of period

770,150

383,222

End of period

$  2,198,212

$    559,262

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS

June 30, 2026

December 31, 2025

(Dollars in thousands)

Current assets

Cash and cash equivalents

$             2,194,014

$                 765,952

Accounts receivable, net

105,830

109,981

Inventory, net

3,775

4,062

Prepaid expenses

33,697

28,206

Income taxes receivable

—

1,292

Other current assets

13,314

13,976

Total current assets

2,350,630

923,469

Non-current assets held for sale

47,475

1,598,131

Licenses

1,595,349

1,642,972

Other intangible assets, net

117,108

131,673

Investments in unconsolidated entities

475,077

461,922

Property, plant and equipment, net

3,123,477

2,965,455

Operating lease right-of-use assets

506,665

515,081

Other assets and deferred charges

167,559

159,600

Total assets

$             8,383,340

$              8,398,303

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY

June 30, 2026

December 31, 2025

(Dollars in thousands, except per share amounts)

Current liabilities

Current portion of long-term debt

$                    9,444

$                    5,274

Accounts payable

130,314

115,822

Customer deposits and deferred revenues

66,280

125,140

Accrued interest

2,273

2,836

Accrued taxes

260,113

46,721

Accrued compensation

40,335

56,774

Short-term operating lease liabilities

27,634

26,180

Current liabilities of discontinued operations

24,856

20,242

Other current liabilities

54,387

41,322

Total current liabilities

615,636

440,311

Deferred liabilities and credits

Deferred income tax liability, net

600,947

743,633

Long-term operating lease liabilities

541,268

549,617

Other deferred liabilities and credits

552,629

574,025

Long-term debt, net

670,646

823,364

Total equity

5,402,214

5,267,353

Total liabilities and equity

$             8,383,340

$             8,398,303

Balance Sheet Highlights

(Unaudited)

June 30, 2026

TDS

TDS
Corporate

Intercompany

TDS

Telecom

Array

& Other

Eliminations

Consolidated

(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 entities

3,947

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 portion

2,765

666,757

1,124

—

670,646

$           2,929

$       674,882

$           2,279

$                  —

$        680,090

TDS Telecom Highlights

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

vs. 2025

2026

2025

2026

vs. 2025

(Dollars in thousands)

Operating revenues

Residential

Incumbent

$  75,868

$  84,665

(10) %

$ 153,160

$ 170,259

(10) %

Expansion

45,656

36,580

25 %

89,218

70,986

26 %

Cable

56,240

62,174

(10) %

113,982

126,022

(10) %

Total residential

177,764

183,419

(3) %

356,360

367,267

(3) %

Commercial

32,776

34,617

(5) %

65,571

69,251

(5) %

Wholesale

37,817

46,704

(19) %

75,934

85,381

(11) %

Total service revenues

248,357

264,740

(6) %

497,865

521,899

(5) %

Equipment revenues

49

191

(74) %

113

392

(71) %

Total operating revenues

248,406

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 products

118

116

2 %

229

380

(40) %

Selling, general and administrative

79,038

82,555

(4) %

160,098

165,702

(3) %

Depreciation, amortization and accretion

73,585

73,137

1 %

146,142

144,577

1 %

(Gain) loss on asset disposals, net

4,960

6,206

(20) %

5,792

7,868

(26) %

(Gain) loss on sale of business and other exit costs, net

—

(8,104)

N/M

1,562

(8,080)

N/M

(Gain) loss on license sales and exchanges, net

(1,600)

—

N/M

(1,600)

—

N/M

Total operating expenses

256,684

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

Array Digital Infrastructure, Inc. Highlights

(Unaudited)

Three Months Ended

June 30,

Six Months Ended
June 30,

2026

2025

2026
vs. 2025

2026

2025

2026
vs. 2025

(Dollars in thousands)

Operating revenues

Site rental

$   53,175

$  27,230

95 %

$ 104,199

$  53,825

94 %

Services

895

1,299

(31) %

1,883

1,688

12 %

Total operating revenues

54,070

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 administrative

22,906

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, net

3,809

(313)

N/M

4,713

(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

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)

Free Cash Flow

Six Months Ended

June 30,

TDS CONSOLIDATED

2026

2025

(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)

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

June 30,

Six Months Ended

June 30,

TDS Telecom

2026

2025

2026

2025

(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 expense

332

(960)

175

(2,424)

Depreciation, amortization and accretion

73,585

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, net

4,960

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 income

463

1,693

1,608

3,094

Other, net

1,245

1,633

2,633

3,571

Adjusted OIBDA (Non-GAAP)

$       68,667

$       85,211

$      139,973

$      158,196

Three Months Ended

June 30,

Six Months Ended

June 30,

Array

2026

2025

2026

2025

(Dollars in thousands)

Net income from continuing operations (GAAP)

$      337,447

$       15,099

$      517,472

$       20,583

Add back:

Income tax expense

115,870

8,415

168,268

8,222

Income before income taxes (GAAP)

453,317

23,514

685,740

28,805

Add back:

Interest expense

10,860

3,711

18,040

7,378

Depreciation, amortization and accretion

14,428

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 review

7,391

715

7,578

1,860

(Gain) loss on asset disposals, net

3,809

(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 entities

34,726

41,714

75,135

77,641

Interest and dividend income

6,431

3,701

10,653

6,358

Other, net

(13)

—

(26)

—

Adjusted OIBDA (Non-GAAP)

$        15,058

$        (9,489)

$        32,903

$      (26,851)

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 expense

168,268

Cash paid for income taxes

(78,623)

Stock-based compensation expense

540

Short-term imputed spectrum lease income

(57,970)

Amortization of deferred debt charges

655

Equity in earnings of unconsolidated entities

(75,135)

Distributions from unconsolidated entities

66,553

(Gain) loss on license sales and exchanges, net

(566,468)

(Gain) loss on asset disposals, net

4,713

Depreciation, amortization and accretion

27,032

Expenses related to strategic alternatives review

7,578

Straight line and other non-cash revenue adjustments

(8,310)

Straight line expense adjustment

2,811

Maintenance and other capital expenditures

(2,511)

Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP)

$                    6,605

SOURCE Telephone and Data Systems, Inc.

Telephone and Data Systems, Inc. (NYSE: TDS - Get Free Report) shares passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $41.07 and traded as high as $43.29. Telephone and Data Systems shares last traded at $43.1650, with a volume of 590,020 shares traded. Wall Street

Posted by Defense World Staff on Apr 7th, 2026

SG Americas Securities LLC increased its position in shares of Telephone and Data Systems, Inc. (NYSE:TDS – Free Report) by 343.6% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 39,597 shares of the Wireless communications provider’s stock after purchasing an additional 30,670 shares during the period. SG Americas Securities LLC’s holdings in Telephone and Data Systems were worth $1,623,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bessemer Group Inc. boosted its position in shares of Telephone and Data Systems by 65.6% during the third quarter. Bessemer Group Inc. now owns 699 shares of the Wireless communications provider’s stock valued at $28,000 after buying an additional 277 shares during the period. Jones Financial Companies Lllp lifted its stake in shares of Telephone and Data Systems by 121.3% during the 3rd quarter. Jones Financial Companies Lllp now owns 830 shares of the Wireless communications provider’s stock worth $31,000 after acquiring an additional 455 shares during the last quarter. JPL Wealth Management LLC purchased a new position in Telephone and Data Systems during the 3rd quarter valued at $33,000. EverSource Wealth Advisors LLC boosted its holdings in Telephone and Data Systems by 191.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,311 shares of the Wireless communications provider’s stock valued at $47,000 after acquiring an additional 861 shares during the period. Finally, Aster Capital Management DIFC Ltd grew its position in Telephone and Data Systems by 48.4% in the 3rd quarter. Aster Capital Management DIFC Ltd now owns 2,402 shares of the Wireless communications provider’s stock valued at $94,000 after acquiring an additional 783 shares during the last quarter. 80.00% of the stock is owned by hedge funds and other institutional investors.

Telephone and Data Systems Trading Up 1.0% Shares of NYSE TDS opened at $45.32 on Tuesday. Telephone and Data Systems, Inc. has a twelve month low of $31.07 and a twelve month high of $47.79. The firm has a market cap of $5.21 billion, a PE ratio of -69.73 and a beta of 0.31. The business has a fifty day simple moving average of $44.48 and a two-hundred day simple moving average of $41.35. The company has a quick ratio of 2.09, a current ratio of 2.10 and a debt-to-equity ratio of 0.20.

Telephone and Data Systems (NYSE:TDS – Get Free Report) last posted its quarterly earnings results on Friday, February 20th. The Wireless communications provider reported $0.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.09 by $0.23. Telephone and Data Systems had a positive return on equity of 2.25% and a negative net margin of 0.21%.The business had revenue of $330.71 million for the quarter, compared to the consensus estimate of $319.28 million. During the same quarter in the prior year, the company earned ($0.10) EPS. The business’s revenue was up 12.0% compared to the same quarter last year. Analysts expect that Telephone and Data Systems, Inc. will post -0.31 earnings per share for the current fiscal year.

Telephone and Data Systems Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were issued a $0.04 dividend. The ex-dividend date was Monday, March 16th. This represents a $0.16 annualized dividend and a dividend yield of 0.4%. Telephone and Data Systems’s payout ratio is currently -24.62%.

Analysts Set New Price Targets Several analysts have recently weighed in on the company. Wall Street Zen downgraded Telephone and Data Systems from a “hold” rating to a “sell” rating in a research report on Sunday, March 1st. Zacks Research cut shares of Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 1st. Weiss Ratings raised shares of Telephone and Data Systems from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, February 24th. Finally, Citigroup boosted their price objective on shares of Telephone and Data Systems from $51.00 to $56.00 and gave the company a “buy” rating in a research report on Monday, February 23rd. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $53.33.

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Telephone and Data Systems Profile (Free Report)

Telephone and Data Systems, Inc (NYSE: TDS) is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States.

TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets.

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, /PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE: TDS) announced the appointment of Bill Case as senior vice president and chief information officer, effective immediately.

Case brings deep experience leading complex technology and business transformation in the broadband and digital infrastructure space. Most recently, he served as executive vice president and chief information officer at WOW! Internet, Cable, and Phone, where he was responsible for enterprise technology including IT, cybersecurity, business intelligence, and business transformation initiatives. In that role, Case helped drive improvements across customer experience, product development, and overall company operations.

Earlier in his career, Case held senior leadership roles across telecommunications, technology, and professional services, including as managing partner and chief executive officer of Wheelhouse Consulting Group, and COO, executive vice president, and chief development officer at ProNerve. He previously held executive and leadership roles at TTEC (TeleTech), Aon, AT&T Broadband, and UnitedHealth Group.

"Bill's expertise in information technology strategy and in leading complex technology and operational change will strengthen our ability to deliver on our growth strategy, transformation priorities, and long-term success," said Walter Carlson, President and CEO of TDS.

Case earned his MBA from the Kellogg School of Management at Northwestern University, along with a master's degree in information systems and a bachelor's in finance and marketing from the University of Colorado.

About TDS
Founded in 1969, Telephone and Data Systems provides broadband services and wireless infrastructure through its businesses, TDS Telecom and Array Digital Infrastructure, Inc.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com
TDS Telecom: www.tdstelecom.com
Array: investors.arrayinc.com

SOURCE Telephone and Data Systems, Inc.

Wall Street analysts expect Telephone & Data Systems (TDS - Free Report) to post quarterly loss of -$0.87 per share in its upcoming report, which indicates a year-over-year decline of 866.7%. Revenues are expected to be $317.3 million, down 72.5% from the year-ago quarter.

Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some TDS metrics that Wall Street analysts commonly model and monitor.

Analysts expect 'Operating Revenues- TDS Telecom' to come in at $255.73 million. The estimate suggests a change of -0.5% year over year.

The collective assessment of analysts points to an estimated 'Operating Revenues- All other' of $5.50 million. The estimate points to a change of -8.3% from the year-ago quarter.

The consensus estimate for 'Operating Revenues- Array' stands at $56.07 million. The estimate suggests a change of -93.7% year over year.

View all Key Company Metrics for TDS here>>>

Over the past month, TDS shares have recorded returns of -0.5% versus the Zacks S&P 500 composite's +11.4% change. Based on its Zacks Rank #3 (Hold), TDS will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

, /PRNewswire/ -- Array Digital Infrastructure, Inc. (NYSE: AD) ("Array" or the "Company") confirmed today that its board of directors (the "Board") has received a non-binding proposal, dated May 7, 2026, from Telephone and Data Systems, Inc. (NYSE: TDS) ("TDS") to acquire all of the outstanding common shares of the Company not currently owned by TDS (the "Proposal"). A copy of the proposal letter from TDS is available as an exhibit to the Current Report on Form 8-K as publicly filed by TDS today with the Securities and Exchange Commission.   

Currently, TDS owns approximately 81.9% of the outstanding capital stock of and 95.9% of the voting interests in the Company. The Proposal is conditioned on, among other things, the recommendation of a special committee of disinterested directors of the Company and the approval by a majority of the votes cast by disinterested stockholders.

The Array Board has established a special committee (the "Special Committee"), comprised solely of three disinterested and independent directors, to analyze, evaluate and negotiate (or reject) the Proposal.

The Special Committee has not made any decision with respect to the Proposal at this time. The Special Committee has retained PJT Partners as its independent financial advisor and Cravath, Swaine & Moore LLP as its independent legal counsel. The Special Committee intends, together with its independent advisors, to carefully evaluate the Proposal to determine the course of action that it believes is in the best interests of the Company and its disinterested shareholders.

The Proposal constitutes only an indication of interest by TDS and does not constitute a binding commitment with respect to the proposed transaction or any other transaction. There can be no assurance that any transaction will be accepted, rejected, consummated or abandoned, or any certainty with respect to the terms, timing and conditions of a transaction in the event an agreement is reached.

The Company and the Special Committee do not undertake any obligation to provide any updates with respect to the Proposal or any other transaction, or to provide any additional disclosures to reflect subsequent events, new information or future circumstances, except as required under applicable law. Shareholders of the Company do not need to take any action at this time.

About Array

Array Digital Infrastructure, Inc. is a leading owner and operator of shared wireless communications infrastructure in the United States. Array owns 4,450 cell towers in 19 states and enables the deployment of 5G and other wireless technologies throughout the country. Currently, Telephone and Data Systems, Inc. owns approximately 81.9% of the outstanding capital stock of and 95.9% of the voting interests in Array.

Forward-Looking Statements

All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether the Proposal will be accepted, rejected, consummated or abandoned; whether the Proposal, if accepted or completed, will result in additional value for the Company's shareholders; whether the transaction process relating to the Proposal could result in adverse effects on the Company's 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 and the previously announced spectrum license sales to Verizon will be consummated; whether Array can monetize the remaining spectrum assets; competition in the tower industry; 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 revenues; the ability to attract people of outstanding talent; inability to protect Array's real estate rights, with respect to land leases; advances or changes in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties; uncertainties in Array's future cash flows and liquidity and access to the capital markets; the ability to make payments on indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities Array does not control; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by TDS; 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 Array's Form 10-K for the fiscal year ended December 31, 2025 and Array's Form 10-Q for the quarter ended March 31, 2026.

SOURCE Array Digital Infrastructure, Inc.

For the quarter ended March 2026, Telephone & Data Systems (TDS - Free Report) reported revenue of $309.45 million, down 73.2% over the same period last year. EPS came in at $1.11, compared to -$0.09 in the year-ago quarter.

The reported revenue represents a surprise of -2.47% over the Zacks Consensus Estimate of $317.3 million. With the consensus EPS estimate being -$0.87, the EPS surprise was +227.59%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how TDS performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Operating Revenues- TDS Telecom: $249.57 million versus $255.73 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.9% change.Operating Revenues- All other: $7.87 million versus $5.5 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +31.1% change.Operating Revenues- Array: $52.01 million versus $56.07 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -94.2% change.View all Key Company Metrics for TDS here>>>

Shares of TDS have returned -0.4% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways TDS posted Q1 EPS of $1.11, boosted by gains from wireless spectrum license sales.TDS Telecom added 40,000 fiber addresses, its highest first-quarter deployment ever.Array Digital Infrastructure saw strong tower leasing growth and additional spectrum deals. Telephone and Data Systems, Inc. (TDS - Free Report) reported first-quarter 2026 earnings that beat the Zacks Consensus Estimate, driven by gains tied to spectrum license sales and continued fiber expansion. Earnings came in at $1.11 per share against the consensus estimate of a loss of 87 cents, delivering a surprise of 227.6%. Revenues rose 6.6% year over year to $309.5 million but missed the consensus mark of $317 million by 2.5%.

The company benefited from strong momentum in its fiber broadband and tower businesses. TDS Telecom expanded its marketable fiber footprint to 1.1 million addresses, while Array Digital Infrastructure posted robust growth in tower rental revenues and spectrum monetization activities.

TDS Gains From Spectrum MonetizationTelephone and Data Systems reported net income from continuing operations attributable to common shareholders of $129.3 million compared with a loss of $23.2 million in the year-ago quarter. The sharp improvement was primarily driven by gains associated with wireless spectrum license sales completed by Array.

During the quarter, Array closed the sale of certain 3.45 GHz and 700 MHz spectrum licenses for $1.018 billion. TDS recorded a book gain of $150.9 million, or $114.7 million net of taxes, from the transaction. Total operating revenues increased to $309.5 million from $290.4 million a year earlier.

Telephone and Data Systems Expands Fiber ReachTDS Telecom continued to execute on its fiber broadband expansion strategy. The company delivered 40,000 new marketable fiber service addresses during the quarter, up nearly 180% year over year and the highest first-quarter deployment level in company history.

Residential fiber net additions totaled 10,900 during the quarter, up more than 30% from the prior-year period. Total marketable fiber service addresses increased to 1.102 million from 1.062 million at the end of 2025. Fiber revenues rose 13% year over year, helping offset declines in legacy copper and cable operations.

The company also announced an agreement to acquire Granite State Communications in New Hampshire. The acquisition will add approximately 11,000 fiber service addresses contiguous to existing TDS markets and is expected to close in the third quarter of 2026, subject to regulatory approval.

TDS Telecom Revenues Face Legacy PressureTDS Telecom generated revenues of $250 million in the quarter compared with $257 million a year earlier. The decline reflected continued weakness in copper and cable markets as well as the impact of divestitures completed in 2025.

Residential revenues declined to $178.6 million from $183.8 million in the year-ago quarter. Cable revenues dropped roughly 10% year over year, while copper-related revenues continued to contract. However, residential revenue per connection improved 1% year over year to $66.41 due to pricing actions and increased fiber penetration.

Adjusted EBITDA for TDS Telecom decreased 3% year over year to $74 million. Capital expenditures more than doubled to $126 million as the company accelerated fiber construction activity and expanded internal construction capabilities.

Telephone and Data Systems Sees Tower MomentumArray Digital Infrastructure continued to benefit from healthy tower leasing activity. Cash site rental revenues increased 64% year over year, excluding the impact of DISH revenues and T-Mobile interim revenues.

The company also reported sequential improvement in tower tenancy ratios after excluding DISH colocations. Array stopped recognizing DISH revenues during the quarter after the customer failed to make the required payments under its master lease agreement.

Array closed the sale of certain 700 MHz spectrum licenses to T-Mobile on May 5, 2026, for proceeds of $74.8 million. The company also expects to close additional spectrum transactions with T-Mobile and Verizon later in the year, subject to customary approvals.

Telephone and Data Systems Improves Financial FlexibilityTelephone and Data Systems generated strong liquidity during the first quarter of 2026, supported by proceeds from spectrum monetization activities. Cash and cash equivalents totaled $1.37 billion at quarter-end compared with $766 million at the end of 2025, while long-term debt declined to $672.7 million from $823.4 million.

Net cash provided by operating activities from continuing operations was $68.1 million in the first quarter of 2026 compared with net cash used of $42.5 million in the year-ago quarter.

TDS Reaffirms 2026 OutlookManagement reaffirmed its 2026 outlook for both TDS Telecom and Array. TDS Telecom continues to expect total operating revenues between $1.015 billion and $1.055 billion for the full year.

Adjusted EBITDA guidance remains in the range of $310-$350 million, while capital expenditures are projected between $550 million and $600 million. The company expects to deliver 200,000-250,000 new fiber service addresses during 2026.

Array also reaffirmed its 2026 guidance. The business expects revenues between $200 million and $215 million and adjusted EBITDA in the range of $200-$215 million. Capital expenditures are expected to be between $25 million and $35 million as the company continues optimizing tower operations and monetizing spectrum assets.

Zacks RankTDS carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming ReleasesKeysight Technologies, Inc. (KEYS - Free Report) is scheduled to release second-quarter fiscal 2026 earnings on May 19. The Zacks Consensus Estimate for earnings is pegged at $2.33 per share, suggesting growth of 37.06% from the year-ago reported figure.

Keysight has a long-term earnings growth expectation of 17.45%. The company delivered an average earnings surprise of 4.58% in the last four reported quarters.

Workday, Inc. (WDAY - Free Report) is set to release first-quarter fiscal 2027 earnings on May 21. The Zacks Consensus Estimate for earnings is pegged at $2.49 per share, implying growth of 11.7% from the year-ago reported figure.

Workday has a long-term earnings growth expectation of 20.16%. The company delivered an average earnings surprise of 8.53% in the last four reported quarters.

Analog Devices, Inc. (ADI - Free Report) is set to release second-quarter fiscal 2026 earnings on May 20. The Zacks Consensus Estimate for earnings is pegged at $2.88 per share, implying growth of 55.7% from the year-ago reported figure.

Analog Devices has a long-term earnings growth expectation of 21.89%. The company delivered an average earnings surprise of 6.11% in the last four reported quarters.

2 Mid-Cap Telecom Stocks Offering Superior Returns Telephone and Data Systems NYSE: TDS said it is continuing to push ahead with its fiber expansion strategy while also moving to simplify its corporate structure through a proposed all-stock acquisition of the remaining public shares of Array Digital Infrastructure.

On the company’s first-quarter 2026 operating results call, TDS President and CEO Walter Carlson said TDS submitted a proposal to Array’s board to acquire all outstanding Array common shares not already owned by TDS. Under the proposal, each Array common share not owned by TDS would be exchanged for 0.86 of a TDS common share.

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The Market Is So Over Overstock...But Is It Now Oversold?Carlson said the exchange ratio assumes previously announced spectrum license sales identified in TDS’s offer letter close before the proposed transaction and that Array’s board declares and pays dividends of $10.40 per share to Array shareholders before closing. At that amount, Array would distribute approximately $900 million in net proceeds, according to Carlson.

“As TDS continues its transformation, this proposal is the next step in executing our strategy, simplifying our corporate structure and enhancing our ability to invest in targeted areas of growth,” Carlson said.

These 11 stocks will be Dividend Kings in 5 years or less.He said TDS expects the transaction to eliminate duplicative corporate costs, streamline governance, increase share liquidity and strengthen the company’s capital structure. The proposal is subject to review and recommendation by a special committee of Array’s disinterested directors, approval by a majority of disinterested Array shareholders based on votes cast, TDS shareholder approval and customary closing conditions.

Carlson also said TDS does not intend to sell or transfer its interest in Array and will not entertain third-party offers for Array or its assets in lieu of the proposal.

TDS Telecom Continues Fiber Buildout TDS Telecom President and CEO Ken Dixon said the telecom unit’s 2026 priorities remain building fiber addresses, driving fiber sales and transforming operations. TDS Telecom delivered 40,000 marketable fiber service addresses in the first quarter, which Dixon said was the highest first-quarter total in the company’s history and nearly three times the delivery from the first quarter of 2025.

Dixon said the performance reflected increased construction capacity, including record internal and external construction crew counts. He added that TDS Telecom has a “robust pipeline” of addresses under construction for the spring and summer build season.

The company ended the quarter with about 11,000 residential fiber net additions, up 32% from the prior year. TDS Telecom now serves approximately 1.1 million fiber service addresses, representing 58% of its total footprint, with 79% of addresses capable of gig speeds.

Dixon also said the company completed a billing conversion in its cable markets and introduced a new field force platform for technicians. Those changes allow TDS Telecom to launch multi-gig speeds across its entire cable footprint.

In April, TDS announced an agreement to acquire Granite State Communications, a fiber-based telecommunications business in New Hampshire. TDS CFO Vicki Villacrez said the acquisition brings more than 11,000 fully fibered service addresses adjacent to existing TDS markets and is expected to close in the third quarter, subject to regulatory approval.

Telecom Revenue Declines as Fiber Growth Offsets Legacy Pressure Kris Bothfeld, TDS vice president of financial analysis and strategic planning, said total telecom operating revenue declined 3% in the quarter, or 1% excluding the impact of divestitures. He attributed the decline to continued pressure in legacy revenue streams, partly offset by growth in fiber connections and a modest improvement in revenue per connection.

Residential fiber revenue rose 13% from the prior year, an increase of about $11 million. Cable revenue declined roughly 10% from the first quarter of 2025, while total residential revenue fell $5 million. Bothfeld said approximately $3 million of that decline was attributable to divestitures of predominantly copper-based markets.

Cash expenses decreased 3%, driven primarily by transformation initiatives, including lower billing, circuit and facilities costs. Adjusted EBITDA declined 3%, which Bothfeld said was driven largely by revenue losses from divestitures. Capital expenditures totaled $126 million, reflecting higher construction activity and investments in internal construction crews and equipment.

TDS maintained its 2026 telecom guidance, including:

Total telecom revenue of $1.015 billion to $1.055 billion. Adjusted EBITDA of $310 million to $350 million. Capital expenditures of $550 million to $600 million. Delivery of 200,000 to 250,000 new fiber service addresses. Bothfeld said copper and cable market headwinds are pushing expectations toward the lower half of the revenue range.

Array Reports Tower Revenue Growth, DISH Dispute Array President and CEO Anthony Carlson said the tower company is focused on optimizing tower operations and monetizing spectrum. He said cash site rental revenue increased 64% from the prior year when normalized for the impact of DISH.

Array previously received a letter from DISH Wireless in September 2025 in which DISH asserted that FCC actions affected its master lease agreement with Array and that it was relieved of its obligations. Anthony Carlson said DISH has generally failed to make required payments since early December and is in breach of its obligations.

As a result, Array stopped recognizing DISH revenue in the first quarter, and all unpaid 2025 balances have been fully reserved. Array also no longer includes DISH co-locations in its tenancy ratio. Excluding that impact, Anthony Carlson said the tenancy ratio rose sequentially from 0.95 in the fourth quarter of 2025 to 0.96 in the first quarter of 2026.

Array also continues to work through its tower portfolio following T-Mobile’s integration. Anthony Carlson said T-Mobile has until January 2028 to finalize its 2,015 committed sites under its new master lease agreement. Array continues to anticipate 800 to 1,800 tenantless towers after the integration is completed and interim sites are terminated.

Spectrum Monetization Continues Array has reached agreements to monetize roughly 70% of its spectrum holdings, according to Anthony Carlson. The sale of spectrum to AT&T closed on Jan. 13, 2026, and Array’s board declared a $10.25 per share dividend paid on Feb. 2.

During the first quarter, the Federal Communications Commission approved the sale of certain 700 MHz licenses to T-Mobile, and that transaction closed earlier in the week of the call. The FCC also approved the sale of 600 MHz and AWS-3 licenses to T-Mobile, which Array expects to close in the second quarter, subject to closing conditions. Array expects its transaction with Verizon to close in the second or third quarter, subject to regulatory approval and normal closing conditions.

Anthony Carlson said Array continues to pursue opportunistic monetization of its remaining spectrum, primarily C-band, but said the company does not view itself as a forced seller. Array maintained its 2026 guidance for total operating revenue, adjusted EBITDA, OIBDA and capital expenditures.

During the question-and-answer session, executives said TDS Telecom remains on track to deliver 200,000 to 250,000 service addresses this year, and Bothfeld said the company remains on track to reach $100 million of run-rate savings by year-end 2028, though not all of that amount is expected to fall to the bottom line because some savings will be reinvested or used to offset inflation and growth-related costs.

About Telephone and Data Systems NYSE: TDSTelephone and Data Systems, Inc NYSE: TDS is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States.

TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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, /PRNewswire/ -- The board of directors of Telephone and Data Systems, Inc. (NYSE: TDS) has declared second quarter 2026 dividends on its Common Shares, Series A Common Shares, Series UU Preferred Shares and Series VV Preferred Shares.

TDS is paying a quarterly dividend of $0.04 per Common Share and Series A Common Share payable on June 30, 2026, to holders of record on June 16, 2026. TDS is paying a quarterly dividend of $414.0625 per share on the company's 6.625% Series UU Preferred shares; holders of depositary shares will receive $0.4140625 per depositary share payable on June 30, 2026, to holders of record on June 15, 2026. TDS is paying a quarterly dividend of $375.0000 per share on the company's 6.000% Series VV Preferred shares; holders of depositary shares will receive $0.3750000 per depositary share payable on June 30, 2026, to holders of record on June 15, 2026. The tickers for each class are as follows: the TDS Common shares is "TDS", the Series UU depositary shares is "TDSPrU" and the Series VV depositary shares is "TDSPrV".

About TDS
Founded in 1969, Telephone and Data Systems provides broadband services and wireless infrastructure through its businesses, TDS Telecom and Array Digital Infrastructure, Inc.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com
TDS Telecom: www.tdstelecom.com
Array: investors.arrayinc.com

SOURCE Telephone and Data Systems, Inc.

On May 15, Diameter Capital Partners LP reported in a  filing with the Securities and Exchange Commission that it sold out of Telephone and Data Systems (TDS +0.28%), disposing of 1,067,297 shares.

Sold 1,067,297 shares of Telephone and Data Systems;Post-trade, the fund holds zero sharesThe position was previously 4.0% of fund AUM as of the prior quarterWhat else to knowTop holdings after the filing:NYSE: SPY (put): $325.2 million (30.4%)NASDAQ: SATS: $172.2 million (16.1% of AUM)NYSEMKT: IVM (put): $99.2 million (9.3% of AUM)NASDAQ: UNIT: $53.3 million (5% of AUM)NASDAQ: NBIS (1.25% cv bond): $38.5 million (3.6% of AUM)Company overviewMetricValueRevenue (TTM)$2.1 billionNet income (TTM)$338.6 million)Dividend yield0.4%Price (as of market close May 22)$39.30Company snapshotTelephone and Data Systems is a diversified telecommunications provider with a national presence, operating through both wireless and wireline business units. Its strategy focuses on delivering reliable communications infrastructure and value-added services to sustain competitive positioning in the U.S. market.

Provides wireless solutions, IoT connectivity, broadband, cloud TV, and voice services through the UScellular and TDS Telecom segments.Generates revenue primarily from wireless subscriptions, broadband and cable connections, and related device and service sales to consumers, businesses, and government clients.What this transaction means for investorsThe share sale represents a significant sale for Diameter Capital since the $43.4 million stake was the firm’s fifth-largest holding as of Dec. 31. Diameter’s current reportable portfolio, which includes equities, call and put options, and convertible bonds, totaled $1.1 billion as of March 31.

The firm’s sale comes as Telephone and Data System's shares have trailed the overall market, using the S&P 500 index and Nasdaq Composite as benchmarks. The stock returned 17.6%, including dividends, over the last year through May 22. During this time, the S&P 500 and Nasdaq Composite produced total returns of 30.4% and 41.5%, respectively

Telephone and Data System reported first-quarter results earlier this month. Revenue grew 7% year over year to $309.5 million. It also reported a profit from continuing operations under generally accepted accounting principles of $146.6 million, reversing a loss of $5.9 million from a year ago.

The company announced it offered to buy the remaining shares of Array Digital that it doesn’t already own in an all-stock transaction.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.