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Posted by Defense World Staff on Apr 3rd, 2026

Telephone and Data Systems, Inc. (NYSE:TDS – Get Free Report) has been assigned an average rating of “Moderate Buy” from the five research firms that are presently covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $53.3333.

TDS has been the subject of several research analyst reports. Citigroup upped their target price on shares of Telephone and Data Systems from $51.00 to $56.00 and gave the company a “buy” rating in a research note on Monday, February 23rd. Zacks Research lowered shares of Telephone and Data Systems from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 1st. Weiss Ratings upgraded shares of Telephone and Data Systems from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, February 24th. Finally, Wall Street Zen lowered shares of Telephone and Data Systems from a “hold” rating to a “sell” rating in a research report on Sunday, March 1st.

View Our Latest Stock Report on Telephone and Data Systems

Telephone and Data Systems Stock Performance TDS opened at $44.97 on Tuesday. The company has a quick ratio of 2.09, a current ratio of 2.10 and a debt-to-equity ratio of 0.20. The stock’s 50 day moving average price is $44.44 and its two-hundred day moving average price is $41.21. The firm has a market capitalization of $5.17 billion, a P/E ratio of -69.19 and a beta of 0.31. Telephone and Data Systems has a 12-month low of $31.07 and a 12-month high of $47.79.

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

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

Institutional Trading of Telephone and Data Systems A number of hedge funds have recently modified their holdings of the company. Captrust Financial Advisors lifted its position in shares of Telephone and Data Systems by 3.8% during the fourth quarter. Captrust Financial Advisors now owns 6,026 shares of the Wireless communications provider’s stock worth $247,000 after purchasing an additional 220 shares in the last quarter. Salomon & Ludwin LLC boosted its holdings in Telephone and Data Systems by 51.3% in the fourth quarter. Salomon & Ludwin LLC now owns 681 shares of the Wireless communications provider’s stock valued at $28,000 after acquiring an additional 231 shares during the last quarter. CIBC Asset Management Inc increased its position in Telephone and Data Systems by 2.4% in the fourth quarter. CIBC Asset Management Inc now owns 9,804 shares of the Wireless communications provider’s stock worth $402,000 after purchasing an additional 232 shares during the period. Maryland State Retirement & Pension System raised its holdings in Telephone and Data Systems by 1.6% during the 4th quarter. Maryland State Retirement & Pension System now owns 14,362 shares of the Wireless communications provider’s stock worth $589,000 after purchasing an additional 233 shares during the last quarter. Finally, HighTower Advisors LLC raised its holdings in Telephone and Data Systems by 4.3% during the 4th quarter. HighTower Advisors LLC now owns 5,866 shares of the Wireless communications provider’s stock worth $241,000 after purchasing an additional 240 shares during the last quarter. Institutional investors own 80.00% of the company’s stock.

Telephone and Data Systems Company Profile (Get 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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Telephone and Data Systems, Inc. has significantly deleveraged by monetizing mobile assets, notably through US Cellular and spectrum sales. TDS.PR.U Preferred shares, yielding close to 8%, remain the most attractive income play versus the common stock's 0.35% yield. With net debt projected below $600 million by Q1 2026 and stable wireline/tower operations, TDS boasts a strong balance sheet and financial flexibility.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE: TDS) and Array Digital Infrastructure, Inc. (NYSE: AD) will webcast their fourth quarter operating results conference call on May 8, 2026, at 9:00 a.m. Central Time. 

The companies will release their financial results on May 8, 2026. 

To listen to the webcast, please visit the events & presentations pages of investors.tdsinc.com or investors.arrayinc.com. The presentations will be webcast both live and on demand. It is recommended that you register at least 15 minutes before the beginning of the presentation to register, download, and install any necessary multimedia streaming software. 

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.

For more information about TDS and its subsidiaries, visit: 
TDS®: tdsinc.com 
ArraySM: arrayinc.com
TDS Telecom: tdstelecom.com

SOURCE Telephone and Data Systems, Inc. and Array Digital Infrastructure, Inc.

Proposed transaction aims to streamline corporate structure and enhance capital flexibility to support TDS' long-term growth

, /PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE: TDS) (the "Company" or "TDS") today announced that it has submitted a proposal to the Board of Directors of Array Digital Infrastructure, Inc. (NYSE: AD) ("Array") to acquire, by way of a merger, all of the outstanding common shares of Array that are not currently owned by TDS in an all-stock transaction.

Under the terms of the proposal, each Array Common Share not owned by TDS would be exchanged for 0.86 of a TDS Common Share (the "Exchange Ratio"). 

The Exchange Ratio assumes that the previously-announced spectrum license sales identified in the TDS offer letter will have closed prior to the closing of the transaction contemplated by the proposal (the "Closing"). The Exchange Ratio further assumes that the Array Board, consistent with its treatment of net proceeds from prior spectrum sales, will have declared and paid a dividend of $10.40 per share (approximately $900 million in aggregate) to Array stockholders prior to the Closing. 

This Exchange Ratio reflects an at-market offer based, subject to the assumption described in the preceding paragraph, on yesterday's closing prices.

The transaction is expected to qualify as a tax-free reorganization for U.S. federal income tax purposes.

"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," said Walter Carlson, President and Chief Executive Officer of TDS. "Array has successfully transitioned to a tower-focused company, and we are committed to supporting its continued growth. By bringing Array fully under TDS' ownership, Array's stockholders would retain a significant interest in the tower business while gaining exposure to TDS' growing fiber business. We expect the transaction to eliminate duplicative corporate costs, streamline corporate governance, increase share liquidity, and strengthen our capital structure, providing greater flexibility to pursue strategic investments across all our businesses, including towers and fiber. We believe this transaction will position the combined company for long-term growth."

As detailed in the proposal sent to Array, which will be filed with the SEC, the proposed transaction would be subject to the negotiation and execution of mutually acceptable definitive transaction documents. A special committee of independent and disinterested directors of the Array Board of Directors has been formed to evaluate this proposal. The terms of the transaction would require the review and recommendation by the special committee and the approval of the disinterested stockholders of Array by a majority of the votes cast by the disinterested stockholders. The transaction would also be subject to approval of TDS stockholders and the satisfaction of customary closing conditions.

TDS does not intend to sell or otherwise transfer its interest in Array and will not entertain any third-party offers for Array or its assets in lieu of its proposal. TDS continues to support Array's previously-disclosed intention to opportunistically monetize its remaining wireless spectrum.

TDS First Quarter 2026 Earnings Results
In a separate press release issued today, TDS reported its first quarter 2026 financial results. There will be a live conference call and webcast to discuss the results and address the proposed transaction today at 9:00 AM Central Time.

Access the live call on the Events & Presentations page of investors.tdsinc.com or at https://events.q4inc.com/attendee/890846584 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.

Advisors
TDS has engaged Wells Fargo as its financial advisor and Sidley Austin LLP as its legal counsel in connection with the proposed transaction.

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.

About Array
Array is a leading owner and operator of shared wireless communications infrastructure in the United States. With over 4,400 cell towers in locations from coast to coast, Array enables the deployment of 5G and other wireless technologies throughout the country. Headquartered in Chicago, Array is approximately 82% owned by TDS.

For more information about TDS and its subsidiaries, visit: 
TDS: tdsinc.com 
Array: arrayinc.com
TDS Telecom: tdstelecom.com

NOT AN OFFER; ADDITIONAL INFORMATION
This communication relates to a proposed acquisition by Telephone and Data Systems, Inc. ("TDS") of the outstanding common shares of Array Digital Infrastructure, Inc. ("Array") that TDS does not currently own. This communication does not constitute an offer to buy, or a solicitation of an offer to sell, any securities of TDS or Array. In connection with the proposed transaction, if a definitive agreement is reached by TDS and Array, TDS may file with the Securities and Exchange Commission ("SEC") a registration statement registering the TDS common shares that would be issued in connection with the proposed transaction and TDS and Array may file a joint proxy statement/prospectus relating to the proposed transaction. TDS and Array shareholders are urged to read the joint proxy statement/prospectus if and when it becomes available because it will contain important information about TDS, Array and the proposed transaction. The joint proxy statement/prospectus and other documents relating to the proposed transaction (when they become available) will also be able to be obtained free of charge from the SEC's website at www.sec.gov. The joint proxy statement/prospectus and other documents (when they are available) will also be able to be obtained from Array upon written request to Array or from TDS upon written request to TDS.

FORWARD LOOKING STATEMENTS
This communication contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which reflect TDS' current estimates, expectations and projections about TDS' future results, performance, prospects and opportunities. Such forward-looking statements may include, among other things, statements about the proposed acquisition of Array, the benefits and synergies of the proposed transaction, future opportunities for TDS, Array and the combined company, and any other statements regarding TDS', Array's or the combined company's future operations, anticipated business levels, future earnings, planned activities, anticipated growth, market opportunities, strategies, competition and other expectations and estimates for future periods. Forward-looking statements include statements that are not historical facts and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "plan," "may," "should," "will," "would," "project," "forecast," and similar expressions. These forward-looking statements are based upon information currently available to TDS and are subject to a number of risks, uncertainties, and other factors that could cause TDS', Array's or the combined company's actual results, performance, prospects, or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Important factors that could cause TDS', Array's or the combined company's actual results to differ materially from the results referred to in the forward-looking statements TDS makes in this communication include: the possibility that a definitive merger agreement to effect the proposed transaction may not be entered into; the possibility that the conditions to the consummation of the proposed transaction will not be satisfied; failure to obtain, delays in obtaining or adverse conditions related to obtaining shareholder or other approvals; the ability to obtain the anticipated business benefits of the transaction and the ability to obtain the anticipated tax treatment of the proposed transaction. In addition, the TDS business is subject to the risks and uncertainties described in TDS' Annual Report on Form 10-K on file with the SEC and from time to time in other filed reports including TDS' Quarterly Reports on Form 10-Q. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this communication are made only as of the date of this communication, and TDS undertakes no obligation to update any forward-looking information contained in this communication, or with respect to the announcements described herein to reflect subsequent events or circumstances.

PARTICIPANTS IN THE SOLICITATION
This communication is not a solicitation of a proxy from any security holder of TDS or Array. However, Array, TDS and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders of Array and TDS in connection with the proposed transaction under the rules of the SEC. Information about the directors and executive officers of TDS may be found in its Annual Report on Form 10-K, filed with the SEC on February 24, 2026 and its definitive proxy statement relating to its 2026 Annual Meeting, filed with the SEC on April 8, 2026. Information about the directors and executive officers of Array may be found in its Annual Report on Form 10-K, filed with the SEC on February 20, 2026 and its definitive proxy statement relating to its 2026 Annual Meeting, filed with the SEC on April 7, 2026.

SOURCE Telephone and Data Systems, Inc.

TDS Telecom and Array both reaffirm guidance for 2026

, /PRNewswire/ -- 

As previously announced, TDS will hold a teleconference on May 8, 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 first quarter 2026 operating results.

"TDS Telecom and Array entered 2026 with momentum," said Walter Carlson, TDS President and CEO.  "Both business units are making meaningful progress toward their strategic objectives. During the quarter, TDS Telecom expanded its marketable fiber service footprint to 1.1 million addresses, while Array continued to optimize its operations and secure healthy application volume."  

"As part of our fiber growth strategy, we recently announced the acquisition of Granite State Communications in New Hampshire," continued Carlson.  "Located adjacent to our existing operations, Granite State further expands our fiber footprint, adding approximately 11,000 additional fiber service addresses."

Highlights*

TDS Telecom

Executing on fiber broadband strategy Delivered 40,000 marketable fiber services addresses in Q1 2026 Grew fiber connections —10,900 residential fiber net additions TDS Telecom revenues down 3%, reduced by $6 million due to divestitures of non-strategic assets Expanding fiber footprint Entered into agreement to acquire Granite State Communications in New Hampshire — 11,000 fiber service addresses; transaction expected to close in the third quarter of 2026 Array

Optimizing tower operations Site rental revenues grew 92% year over year Excluding the impact of DISH, continuing to grow tower tenancy and secure healthy application volume  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 *Comparisons are 1Q'25 to 1Q'26 unless otherwise noted.

TDS reported total operating revenues from continuing operations of $309.5 million for the first quarter of 2026, versus $290.4 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 $129.3 million and $1.11, respectively, for the first quarter of 2026 compared to $(23.2) million and $(0.20), respectively, in the same period one year ago. 

On January 13, 2026, Array closed on the sale of certain 3.45 GHz and 700 MHz wireless spectrum licenses for $1,018.0 million and TDS recorded a book gain of $150.9 million ($114.7 million net of tax expense) during the first quarter of 2026.

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 May 8, 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

Unchanged

Adjusted OIBDA1 (Non-GAAP)

$300-$340

Unchanged

Adjusted EBITDA1 (Non-GAAP)

$310-$350

Unchanged

Capital expenditures

$550-$600

Unchanged

Array

Previous

Current

(Dollars in millions)

Total operating revenues

$200-$215

Unchanged

Adjusted OIBDA1 (Non-GAAP)

$50-$65

Unchanged

Adjusted EBITDA1 (Non-GAAP)

$200-$215

Unchanged

Capital expenditures

$25-$35

Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income 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)-$25

$770-$785

Add back:

Interest expense

—

45

Depreciation, amortization and accretion expense

325

50

EBITDA (Non-GAAP)1

$310-$350

$865-$880

Add back or deduct:

(Gain) loss on license sales and exchanges, net

—

(590)

Short-term imputed spectrum lease income

—

(75)

Adjusted EBITDA (Non-GAAP)1

$310-$350

$200-$215

Deduct:

Equity in earnings of unconsolidated entities

—

140

Interest and dividend income

5

10

Other, net

5

—

Adjusted OIBDA (Non-GAAP)1

$300-$340

$50-$65

Actual Results

Three Months Ended

March 31, 2026

Year Ended

December 31, 2025

TDS

Telecom

Array

TDS

Telecom

Array

(Dollars in millions)

Net income from continuing operations (GAAP)

$            1

$         180

$           28

$         172

Add back:

Income tax expense (benefit)

(2)

52

10

(31)

Income (loss) before income taxes (GAAP)

$           (1)

$         232

$           38

$         141

Add back:

Interest expense

—

7

(7)

28

Depreciation, amortization and accretion expense

73

13

300

48

EBITDA (Non-GAAP)1

$           71

$         252

$         331

$         218

Add back or deduct:

Expenses related to strategic alternatives review

—

—

6

2

Loss on impairment of intangible assets

—

—

1

48

(Gain) loss on asset disposals, net

1

1

15

2

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

2

—

(23)

—

(Gain) loss on license sales and exchanges, net

—

(157)

—

(6)

Short-term imputed spectrum lease income

—

(34)

—

(69)

Adjusted EBITDA (Non-GAAP)1

$           74

$           62

$         330

$         194

Deduct:

Equity in earnings of unconsolidated entities

—

40

—

174

Interest and dividend income

1

4

6

19

Other, net

1

—

5

—

Adjusted OIBDA (Non-GAAP)1

$           71

$           18

$         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 May 8, 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/890846584 Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. 

About TDS
Telephone and Data Systems, Inc. (TDS) provides broadband, video, voice and wireless services through its TDS Telecom business.  Array leases tower space to tenants and provides ancillary services, holds noncontrolling interests in primarily wireless operating companies and holds certain wireless spectrum licenses. Founded in 1969, TDS is headquartered in Chicago.

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

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements.  This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: 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 TDS or its shareholders and whether the process could result in adverse impacts on TDS' businesses; 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 sale to Verizon are consummated; whether Array can monetize its remaining spectrum assets; intense competition; 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 throughout all levels of the organization; TDS' lack of scale relative to larger competitors; inability to protect TDS' real estate rights, with respect to land leases; 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

3/31/2026

12/31/2025

9/30/2025

6/30/2025

3/31/2025

Residential connections

Broadband

Incumbent Fiber

130,200

127,300

123,500

121,200

119,700

Incumbent Copper

84,200

91,200

102,000

106,500

112,600

Expansion Fiber

168,500

160,600

150,700

141,800

133,200

Cable

179,100

182,800

186,100

188,200

190,200

Total Broadband

561,900

561,900

562,400

557,700

555,800

Video

107,200

111,500

114,300

116,500

118,700

Voice

216,900

228,900

242,200

248,700

256,900

Wireless

5,300

3,300

2,200

1,600

900

Total Residential connections

891,400

905,600

921,100

924,500

932,300

Commercial connections

166,500

173,900

180,300

184,300

187,600

Total connections1

1,058,000

1,079,500

1,101,300

1,108,800

1,119,900

Total residential fiber net adds

10,900

15,100

11,200

10,300

8,300

Total residential broadband net adds

100

4,500

4,600

3,900

2,800

Residential fiber churn2

1.3 %

1.2 %

1.5 %

1.1 %

0.9 %

Total residential broadband churn

1.8 %

1.6 %

1.7 %

1.5 %

1.3 %

Residential revenue per connection3

$     66.41

$     65.95

$     65.66

$     65.85

$     65.67

Capital expenditures (thousands)

$  125,963

$  154,904

$  102,429

$   90,187

$   58,870

Numbers may not foot due to rounding.

1

Divestitures in 2025 resulted in a decrease of 19,000 connections, including 7,500 residential broadband connections. 

2

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

3

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

Array Digital Infrastructure, Inc.

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

3/31/2026

12/31/2025

9/30/2025

Capital expenditures from continuing operations (thousands)

$       8,645

$      12,933

$       7,927

Owned towers

4,452

4,450

4,449

Number of colocations1

4,290

4,572

4,517

Tower tenancy rate2

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 collection on outstanding amounts.

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 collection on outstanding amounts. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94, respectively in prior periods.

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

Three Months Ended

March 31,

2026

2025

2026

vs. 2025

(Dollars and shares in thousands, except per share amounts)

Operating revenues

TDS Telecom

$ 249,572

$ 257,360

(3) %

Array

52,012

26,984

93 %

All Other1

7,866

6,089

29 %

Total operating revenues

309,450

290,433

7 %

Operating expenses

TDS Telecom

253,304

257,501

(2) %

Array

(108,773)

56,611

N/M

All other1

21,101

10,255

N/M

Total operating expenses

165,632

324,367

(49) %

Operating income (loss)

TDS Telecom

(3,732)

(141)

N/M

Array

160,785

(29,627)

N/M

All Other1

(13,235)

(4,166)

N/M

Total operating income (loss)

143,818

(33,934)

N/M

Other income (expense)

Equity in earnings of unconsolidated entities

41,902

36,518

15 %

Interest and dividend income

13,786

6,270

N/M

Interest expense

(5,321)

(23,909)

78 %

Short-term imputed spectrum lease income

34,200

—

N/M

Other, net

5,450

2,725

N/M

Total other income

90,017

21,604

N/M

Income (loss) before income taxes

233,835

(12,330)

N/M

Income tax expense (benefit)

54,408

(8,123)

N/M

Net income (loss) from continuing operations

179,427

(4,207)

N/M

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

32,813

1,724

N/M

Net income (loss) from continuing operations attributable to TDS shareholders

146,614

(5,931)

N/M

Net income (loss) from discontinued operations

(2,389)

16,171

N/M

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

(369)

2,770

N/M

Net income (loss) from discontinued operations attributable to TDS shareholders

(2,020)

13,401

N/M

Net income

177,038

11,964

N/M

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

32,444

4,494

N/M

Net income attributable to TDS shareholders

144,594

7,470

N/M

TDS Preferred Share dividends

17,306

17,306

—

Net income (loss) attributable to TDS common shareholders

$ 127,288

$   (9,836)

N/M

Basic weighted average shares outstanding

113,882

114,582

(1) %

Basic earnings (loss) per share from continuing operations attributable to TDS common shareholders

$     1.14

$    (0.20)

N/M

Basic earnings (loss) per share from discontinued operations attributable to TDS common shareholders

$    (0.02)

$     0.11

N/M

Basic earnings (loss) per share attributable to TDS common shareholders

$     1.12

$    (0.09)

N/M

Diluted weighted average shares outstanding

116,651

114,582

2 %

Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders

$     1.11

$    (0.20)

N/M

Diluted earnings (loss) per share from discontinued operations attributable to TDS common shareholders

$    (0.02)

$     0.11

N/M

Diluted earnings (loss) per share attributable to TDS common shareholders

$     1.09

$    (0.09)

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)

Three Months Ended

March 31,

2026

2025

(Dollars in thousands)

Cash flows from operating activities

Net income

$    177,038

$      11,964

Net income (loss) from discontinued operations

(2,389)

16,171

Net income (loss) from continuing operations

179,427

(4,207)

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

Depreciation, amortization and accretion

85,943

84,329

Bad debts expense

3,383

1,380

Stock-based compensation expense

4,159

12,749

Deferred income taxes, net

(38,825)

(6,519)

Equity in earnings of unconsolidated entities

(41,902)

(36,518)

Distributions from unconsolidated entities

18,373

11,254

(Gain) loss on asset disposals, net

1,810

1,888

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

1,562

(998)

(Gain) loss on license sales and exchanges, net

(150,878)

(1,100)

Other operating activities

42

1,141

Changes in assets and liabilities from operations

Accounts receivable

2,787

(12,530)

Inventory

316

(229)

Accounts payable

(7,881)

1,844

Customer deposits and deferred revenues

(33,593)

108

Accrued taxes

91,865

(264)

Accrued interest

580

343

Other assets and liabilities

(49,074)

(95,131)

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

68,094

(42,460)

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

(633)

228,069

Net cash provided by operating activities

67,461

185,609

Cash flows from investing activities

Cash paid for additions to property, plant and equipment

(149,041)

(64,391)

Cash paid for licenses

—

(2,072)

Cash received from divestitures

1,016,478

8,042

Other investing activities

396

80

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

867,833

(58,341)

Net cash used in investing activities - discontinued operations

—

(64,337)

Net cash provided by (used in) investing activities

867,833

(122,678)

Cash flows from financing activities

Issuance of long-term debt

1,300

—

Repayment of long-term debt

(150,314)

(7,736)

Tax withholdings, net of cash receipts, for TDS stock-based compensation awards

(1,710)

(5,639)

Tax withholdings, net of cash receipts, for Array stock-based compensation awards

(1,373)

(6,579)

Repurchase of Array Common Shares

—

(21,360)

Dividends paid to TDS shareholders

(21,860)

(21,896)

Array dividends paid to noncontrolling public shareholders

(159,890)

—

Distributions to noncontrolling interests

(638)

(1,639)

Cash paid for software license agreements

(166)

(839)

Other financing activities

9

(452)

Net cash used in financing activities - continuing operations

(334,642)

(66,140)

Net cash used in financing activities - discontinued operations

—

(8,826)

Net cash used in financing activities

$   (334,642)

$     (74,966)

Net increase (decrease) in cash, cash equivalents and restricted cash

$    600,652

$     (12,035)

Cash, cash equivalents and restricted cash

Beginning of period

770,150

383,222

End of period

$  1,370,802

$    371,187

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS

March 31, 2026

December 31, 2025

(Dollars in thousands)

Current assets

Cash and cash equivalents

$             1,366,604

$               765,952

Accounts receivable, net

102,884

109,981

Inventory, net

3,746

4,062

Prepaid expenses

33,858

28,206

Income taxes receivable

—

1,292

Other current assets

12,987

13,976

Total current assets

1,520,079

923,469

Non-current assets held for sale

737,437

1,598,131

Licenses

1,642,824

1,642,972

Other intangible assets, net

124,391

131,673

Investments in unconsolidated entities

486,132

461,922

Property, plant and equipment, net

3,025,322

2,965,455

Operating lease right-of-use assets

513,237

515,081

Other assets and deferred charges

161,905

159,600

Total assets

$             8,211,327

$             8,398,303

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY

March 31, 2026

December 31, 2025

(Dollars in thousands, except per share amounts)

Current liabilities

Current portion of long-term debt

$                  7,515

$                  5,274

Accounts payable

97,068

115,822

Customer deposits and deferred revenues

84,165

125,140

Accrued interest

3,415

2,836

Accrued taxes

138,488

46,721

Accrued compensation

27,630

56,774

Short-term operating lease liabilities

26,297

26,180

Current liabilities of discontinued operations

20,242

20,242

Other current liabilities

38,855

41,322

Total current liabilities

443,675

440,311

Deferred liabilities and credits

Deferred income tax liability, net

699,150

743,633

Long-term operating lease liabilities

548,420

549,617

Other deferred liabilities and credits

584,484

574,025

Long-term debt, net

672,700

823,364

Total equity

5,262,898

5,267,353

Total liabilities and equity

$             8,211,327

$             8,398,303

Balance Sheet Highlights

(Unaudited)

March 31, 2026

TDS

TDS
Corporate

Intercompany

TDS

Telecom

Array

& Other

Eliminations

Consolidated

(Dollars in thousands)

Cash and cash equivalents

$        55,212

$      253,638

$    1,113,325

$      (55,571)

$    1,366,604

Licenses and other intangible assets

$      124,543

$    1,642,039

$           633

$             —

$    1,767,215

Investment in unconsolidated entities

3,947

435,061

57,500

(10,376)

486,132

$      128,490

$    2,077,100

$        58,133

$      (10,376)

$    2,253,347

Property, plant and equipment, net

$    2,623,432

$      386,727

$        15,163

$             —

$    3,025,322

Long-term debt, net:

Current portion

$           162

$         6,094

$         1,259

$             —

$         7,515

Non-current portion

2,865

668,499

1,336

—

672,700

$         3,027

$      674,593

$         2,595

$             —

$      680,215

TDS Telecom Highlights

(Unaudited)

Three Months Ended

March 31,

2026

2025

2026

vs. 2025

(Dollars in thousands)

Operating revenues

Residential

Incumbent

$  77,292

$  85,594

(10) %

Expansion

43,562

34,406

27 %

Cable

57,742

63,847

(10) %

Total residential

178,596

183,847

(3) %

Commercial

32,795

34,634

(5) %

Wholesale

38,117

38,677

(1) %

Total service revenues

249,508

257,158

(3) %

Equipment revenues

64

202

(68) %

Total operating revenues

249,572

257,360

(3) %

Cost of operations (excluding Depreciation, amortization and accretion reported below)

97,182

100,964

(4) %

Cost of equipment and products

111

263

(58) %

Selling, general and administrative

81,061

83,148

(3) %

Depreciation, amortization and accretion

72,555

71,440

2 %

(Gain) loss on asset disposals, net

833

1,662

(50) %

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

1,562

24

N/M

Total operating expenses

253,304

257,501

(2) %

Operating income (loss)

$  (3,732)

$    (141)

N/M

N/M - Percentage change not meaningful

Array Digital Infrastructure, Inc. Highlights

(Unaudited)

Three Months Ended

March 31,

2026

2025

2026
vs. 2025

(Dollars in thousands)

Operating revenues

Site rental

$  51,024

$  26,595

92 %

Services

988

389

N/M

Total operating revenues

52,012

26,984

93 %

Operating expenses

Cost of operations (excluding Depreciation and accretion reported below)

21,609

16,290

33 %

Selling, general and administrative

12,745

29,202

(56) %

Depreciation and accretion

12,604

11,993

5 %

(Gain) loss on asset disposals, net

904

226

N/M

(Gain) loss on license sales and exchanges, net

(156,635)

(1,100)

N/M

Total operating expenses

(108,773)

56,611

N/M

Operating income (loss)

$ 160,785

$ (29,627)

N/M

N/M - Percentage change not meaningful

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)

Free Cash Flow

Three Months Ended

March 31,

TDS CONSOLIDATED

2026

2025

(Dollars in thousands)

Cash flows from operating activities - continuing operations (GAAP)

$          68,094

$         (42,460)

Cash paid for additions to property, plant and equipment

(149,041)

(64,391)

Cash paid for software license agreements

(166)

(839)

Free cash flow - continuing operations (Non-GAAP)1

$         (81,113)

$        (107,690)

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

March 31,

TDS Telecom

2026

2025

(Dollars in thousands)

Net income (GAAP)

$         1,047

$         3,527

Add back or deduct:

Income tax expense (benefit)

(2,089)

1,135

Income (loss) before income taxes (GAAP)

(1,042)

4,662

Add back:

Interest expense

(157)

(1,465)

Depreciation, amortization and accretion expense

72,555

71,440

EBITDA (Non-GAAP)

71,356

74,637

Add back or deduct:

Expenses related to strategic alternatives review

87

—

(Gain) loss on asset disposals, net

833

1,662

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

1,562

24

Adjusted EBITDA (Non-GAAP)

73,838

76,323

Deduct:

Interest and dividend income

1,145

1,401

Other, net

1,388

1,937

Adjusted OIBDA (Non-GAAP)

$       71,305

$       72,985

Three Months Ended

March 31,

Array

2026

2025

(Dollars in thousands)

Net income from continuing operations (GAAP)

$      180,024

$         5,483

Add back or deduct:

Income tax expense (benefit)

52,398

(192)

Income before income taxes (GAAP)

232,422

5,291

Add back:

Interest expense

7,180

3,667

Depreciation and accretion expense

12,604

11,993

EBITDA (Non-GAAP)

252,206

20,951

Add back or deduct:

Expenses related to strategic alternatives review

187

1,145

(Gain) loss on asset disposals, net

904

226

(Gain) loss on license sales and exchanges, net

(156,635)

(1,100)

Short-term imputed spectrum lease income

(34,200)

—

Adjusted EBITDA (Non-GAAP)

62,462

21,222

Deduct:

Equity in earnings of unconsolidated entities

40,408

35,927

Interest and dividend income

4,223

2,658

Other, net

(14)

—

Adjusted OIBDA (Non-GAAP)

$       17,845

$      (17,363)

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.

Three Months Ended
March 31, 2026

(Dollars in thousands)

Net income from continuing operations - Array (GAAP)

$                 180,024

Add back or deduct:

Income tax expense

52,398

Cash paid for income taxes

(220)

Stock-based compensation expense

227

Short-term imputed spectrum lease income

(34,200)

Amortization of deferred debt charges

319

Equity in earnings of unconsolidated entities

(40,408)

Distributions from unconsolidated entities

18,373

(Gain) loss on license sales and exchanges, net

(156,635)

(Gain) loss on asset disposals, net

904

Depreciation and accretion

12,604

Expenses related to strategic alternatives review

187

Straight line and other non-cash revenue adjustments

(2,874)

Straight line expense adjustment

1,342

Maintenance and other capital expenditures

(1,388)

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

$                   30,653

SOURCE Telephone and Data Systems, Inc.

Telephone and Data Systems, Inc. (TDS) Q1 2026 Earnings Call Transcript

, /PRNewswire/ -- Telephone and Data Systems, Inc. [NYSE: TDS] and Array Digital Infrastructure, Inc. [NYSE: AD] announce the following webcasts:

Array℠ will hold its Annual Meeting of Shareholders on May 19, 2026, at 8:30 a.m. Central time.

TDS will hold its Annual Meeting of Shareholders on May 21, 2026, at 9:00 a.m. Central time.

To listen to the meetings, please visit the Events & Presentations pages of investors.tdsinc.com or investors.arrayinc.com. The meetings will be webcast both live and on-demand. It is recommended that you register at least 15 minutes before the beginning of each meeting to register, download and install any necessary multimedia streaming software.

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.

About Array
Array Digital Infrastructure, Inc. is a leading owner and operator of shared wireless communications infrastructure in the United States. Array owns 4,452 cell towers in 19 states and enables the deployment of 5G and other wireless technologies throughout the country. As of March 31, 2026, Telephone and Data Systems, Inc. owned approximately 81.9% of Array.

SOURCE Telephone and Data Systems, Inc. and Array Digital Infrastructure, Inc.

Telephone and Data Systems, Inc. (TDS) Shareholder/Analyst Call Prepared Remarks Transcript

On May 22, 2026, Telephone and Data Systems Inc (TDS) shares fell 4.6% to a current price of $39.30. This decline is significant given the stock's 52-week range

Telephone and Data Systems preferred shares offer a ~7.5% qualified yield, supported by recent deleveraging and strong liquidity. TDS.PR.V stands out with a 20% discount to par, offering superior capital appreciation potential and lower call risk versus TDS.PR.U. Recent asset monetization and debt reduction have materially improved TDS's credit profile, enhancing preferred holders' safety and upside.