TDS reports third quarter 2026 results
TDS Board authorizes incremental $250 million share repurchase plan
TDS Telecom updates guidance for 2026
CHICAGO, Nov. 6, 2026 /PRNewswire/ --
As previously announced, TDS will hold a teleconference on November 6, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.
Telephone and Data Systems, Inc. (NYSE: TDS) reported third quarter 2026 operating results.
"We continue to make progress as our teams execute our strategic objectives," said Walter Carlson, TDS President and CEO. "During the quarter, TDS Telecom expanded its marketable fiber service footprint by approximately 76,000 addresses and grew fiber net adds by approximately 17,000. Array increased the number of colocations sequentially, highlighting the value of our assets, and continues to improve profitability. Additionally, I'm pleased to report that following TDS' withdrawal of the offer to acquire the minority interest in Array, TDS was in the market, and has repurchased nearly 15 million shares in 2026, returning over $520 million to shareholders."
Highlights*
TDS
- Returning value to shareholders
- Repurchased approximately 6 million TDS shares in the quarter at an average price per share of $36.65
- Continued to be in the market following the end of the quarter, virtually exhausting the existing authorization
- TDS Board approved incremental $250 million share repurchase authorization
- Provides future flexibility for the organization
TDS Telecom
- Executing on fiber broadband strategy
- Delivered approximately 76,000 marketable fiber service addresses
- Grew fiber connections with approximately 17,000 residential fiber net additions
- Service revenue down 3%
- Residential fiber revenue growth of 14% more than offset by impacts of divestitures and continued legacy declines
- Updated 2026 Financial Guidance
- Revenues of $990 million to $1,010 million
- Adjusted OIBDA of $280 million to $300 million
- Adjusted EBITDA of $290 million to $310 million
- Capital expenditures of approximately $750 million
Array
- Optimizing tower operations
- Site rental revenues grew 14% year over year
- Delivered consecutive quarter over quarter colocation growth
- Continuing to close pending sales of wireless spectrum
- Received regulatory approval for remaining pending transactions in October, closings remain subject to FCC finality and other customary closing conditions
- Reaffirming 2026 financial guidance
* Comparisons are 3Q'25 to 3Q'26 unless otherwise noted.
TDS reported total operating revenues from continuing operations of $306.7 million for the third quarter of 2026, versus $308.5 million for the same period one year ago. Net income attributable to TDS common shareholders and diluted earnings per share from continuing operations were $29.6 million and $0.26, respectively, for the third quarter of 2026 compared to $40.2 million and $0.33, respectively, in the same period one year ago.
Recent Development
On May 7, 2026, TDS delivered to the Array Board of Directors a letter setting forth a non-binding proposal to acquire all of the outstanding Array Common Shares that are not owned by TDS (the "Array Proposal"). On September 1, 2026, TDS announced that it is no longer pursuing the Array Proposal. For additional information, see TDS' Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on September 2, 2026.
2026 Estimated Results
TDS' current estimates of full-year 2026 results for TDS Telecom and Array are shown below. Such estimates represent management's view as of November 6, 2026 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.
TDS Telecom | Previous | Current |
(Dollars in millions) | ||
Total operating revenues | $1,000-$1,025 | $990-$1,010 |
Adjusted OIBDA1 (Non-GAAP) | $300-$320 | $280-$300 |
Adjusted EBITDA1 (Non-GAAP) | $310-$330 | $290-$310 |
Capital expenditures | $625-$675 | Approx. $750 |
Array | Previous | Current |
(Dollars in millions) | ||
Total operating revenues | $205-$215 | Unchanged |
Adjusted OIBDA1 (Non-GAAP) | $60-$75 | Unchanged |
Adjusted EBITDA1 (Non-GAAP) | $220-$235 | Unchanged |
Capital expenditures | $25-$35 | Unchanged |
The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income (loss) before income taxes. In providing 2026 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.
2026 Estimated Results | |||
TDS Telecom | Array | ||
(Dollars in millions) | |||
Net income from continuing operations (GAAP) | N/A | N/A | |
Add back: | |||
Income tax expense | N/A | N/A | |
Income (loss) before income taxes (GAAP) | ($40)-($20) | $775-$790 | |
Add back: | |||
Interest expense | — | 45 | |
Depreciation, amortization and accretion expense | 330 | 50 | |
EBITDA (Non-GAAP)1 | $290-$310 | $870-$885 | |
Add back or deduct: | |||
(Gain) loss on license sales and exchanges, net | — | (585) | |
Short-term imputed spectrum lease income | — | (65) | |
Adjusted EBITDA (Non-GAAP)1 | $290-$310 | $220-$235 | |
Deduct: | |||
Equity in earnings of unconsolidated entities | — | 145 | |
Interest and dividend income | 5 | 15 | |
Other, net | 5 | — | |
Adjusted OIBDA (Non-GAAP)1 | $280-$300 | $60-$75 | |
Actual Results | |||||||
Nine Months Ended September 30, 2026 | Year Ended December 31, 2025 | ||||||
TDS Telecom | Array | TDS Telecom | Array | ||||
(Dollars in millions) | |||||||
Net income (loss) from continuing operations (GAAP) | $ (16) | $ 587 | $ 28 | $ 172 | |||
Add back: | |||||||
Income tax expense (benefit) | (7) | 138 | 10 | (31) | |||
Income (loss) before income taxes (GAAP) | $ (23) | $ 726 | $ 38 | $ 141 | |||
Add back: | |||||||
Interest expense | — | 29 | (7) | 28 | |||
Depreciation, amortization and accretion expense | 222 | 40 | 300 | 48 | |||
EBITDA (Non-GAAP)1 | $ 199 | $ 795 | $ 331 | $ 218 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | 4 | 14 | 6 | 2 | |||
(Gain) loss on impairment of intangible assets | — | — | 1 | 48 | |||
(Gain) loss on asset disposals, net | 7 | 6 | 15 | 2 | |||
(Gain) loss on sale of business and other exit costs, net | 1 | — | (23) | — | |||
(Gain) loss on license sales and exchanges, net | (2) | (566) | — | (6) | |||
Short-term imputed spectrum lease income | — | (66) | — | (69) | |||
Adjusted EBITDA (Non-GAAP)1 | $ 210 | $ 182 | $ 330 | $ 194 | |||
Deduct: | |||||||
Equity in earnings of unconsolidated entities | — | 116 | — | 174 | |||
Interest and dividend income | 4 | 15 | 6 | 19 | |||
Other, net | 3 | — | 5 | — | |||
Adjusted OIBDA (Non-GAAP)1 | $ 203 | $ 51 | $ 319 | $ 1 | |||
Numbers may not foot due to rounding. | |
1 | EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income from continuing operations adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS' operating results before significant recurring non-cash charges, expenses related to the strategic alternatives review, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, expenses related to the strategic alternatives review and short-term imputed spectrum lease income, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. |
Conference Call Information
TDS will hold a conference call on November 6, 2026 at 9:00 a.m. CT.
- Access the live call on the Events & Presentations page of investors.tdsinc.com or at
https://events.q4inc.com/attendee/505221542
Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com.
About TDS
Telephone and Data Systems, Inc. (TDS) provides broadband, video, voice and wireless services through its TDS Telecom business. Array leases tower space to tenants and provides ancillary services, holds noncontrolling interests in primarily wireless operating companies and holds certain wireless spectrum licenses. Founded in 1969, TDS is headquartered in Chicago.
Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release about Telephone and Data Systems, Inc., including its subsidiaries Array and TDS Telecom, except historical and factual information, represents forward-looking statements. This includes all statements about TDS' plans, beliefs, estimates and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; whether the additional spectrum license sales to T-Mobile are consummated; whether Array can monetize its remaining spectrum assets; intense competition, including fixed wireless and satellite; economic and business risks associated with fixed rate annual escalators on colocation revenue contracts; Array's reliance on a small number of tenants for a substantial portion of its revenue; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; TDS' inability to protect rights to the land under its towers; changes in demand, consumer preferences and perceptions, price competition, or cost; advances or changes in technology; impacts of costs, integration issues or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS' businesses; the ability of TDS to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and Array indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities that Array does not control; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and extreme weather events. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.
For more information about TDS and its subsidiaries, visit:
TDS: www.tdsinc.com
TDS Telecom: www.tdstelecom.com
Array: investors.arrayinc.com
TDS Telecom | |||||||||
Summary Operating Data (Unaudited) | |||||||||
As of or for the Quarter Ended | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||
Residential connections | |||||||||
Broadband | |||||||||
Incumbent Fiber | 144,100 | 134,300 | 130,200 | 127,300 | 123,500 | ||||
Incumbent Copper | 71,100 | 77,700 | 84,200 | 91,200 | 102,000 | ||||
Expansion Fiber | 191,200 | 179,600 | 168,500 | 160,600 | 150,700 | ||||
Cable | 173,200 | 176,100 | 179,100 | 182,800 | 186,100 | ||||
Total Broadband | 579,600 | 567,700 | 561,900 | 561,900 | 562,400 | ||||
Video | 104,000 | 105,600 | 107,200 | 111,500 | 114,300 | ||||
Voice | 204,100 | 209,300 | 216,900 | 228,900 | 242,200 | ||||
Wireless | 10,500 | 8,100 | 5,300 | 3,300 | 2,200 | ||||
Total Residential connections | 898,200 | 890,700 | 891,400 | 905,600 | 921,100 | ||||
Commercial connections | 162,600 | 163,600 | 166,500 | 173,900 | 180,300 | ||||
Total connections1 | 1,060,800 | 1,054,200 | 1,058,000 | 1,079,500 | 1,101,300 | ||||
Total residential fiber net adds | 16,700 | 15,100 | 10,900 | 15,100 | 11,200 | ||||
Total residential broadband net adds | 7,200 | 5,700 | 100 | 4,500 | 4,600 | ||||
Residential fiber churn2 | 1.3 % | 1.2 % | 1.3 % | 1.2 % | 1.5 % | ||||
Total residential broadband churn | 1.7 % | 1.7 % | 1.8 % | 1.6 % | 1.7 % | ||||
Residential revenue per connection3 | $ 66.88 | $ 66.50 | $ 66.41 | $ 65.95 | $ 65.66 | ||||
Capital expenditures (thousands) | $ 251,463 | $ 179,197 | $ 125,963 | $ 154,904 | $ 102,429 | ||||
Numbers may not foot due to rounding. | |
1 | Divestiture in December 2025 resulted in a decrease of 12,500 connections, including 5,100 residential broadband connections. Acquisition in September 2026 resulted in an increase of 7,800 connections, including 4,700 residential broadband connections. |
2 | Residential fiber churn represents the percentage of incumbent and expansion fiber connections that disconnected service each month. These rates represent the average monthly churn rate for each respective period. |
3 | Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period. |
Array Digital Infrastructure, Inc. | |||||||||
Summary Operating Data (Unaudited) | |||||||||
As of or for the Quarter Ended | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||
Capital expenditures from continuing operations (thousands) | $ 3,915 | $ 3,895 | $ 8,645 | $ 12,933 | $ 7,927 | ||||
Owned towers | 4,455 | 4,456 | 4,452 | 4,450 | 4,449 | ||||
Number of colocations1 | 4,372 | 4,362 | 4,290 | 4,572 | 4,517 | ||||
Tower tenancy rate2 | 0.98 | 0.98 | 0.96 | 1.03 | 1.02 | ||||
1 | Represents instances where a third-party leases space on a company-owned tower. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless. |
2 | Calculated as total number of colocations divided by total number of towers. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94 for December 31, 2025 and September 30, 2025, respectively. |
Telephone and Data Systems, Inc. | |||||||||||
Consolidated Statement of Operations Highlights | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2026 | 2025 | 2026 vs. 2025 | 2026 | 2025 | 2026 vs. 2025 | ||||||
(Dollars and shares in thousands, except per share amounts) | |||||||||||
Operating revenues | |||||||||||
TDS Telecom | $ 247,265 | $ 255,111 | (3) % | $ 745,243 | $ 777,403 | (4) % | |||||
Array | 53,870 | 47,119 | 14 % | 159,952 | 102,632 | 56 % | |||||
All Other1 | 5,559 | 6,291 | (12) % | 20,230 | 17,460 | 16 % | |||||
Total operating revenues | 306,694 | 308,521 | (1) % | 925,425 | 897,495 | 3 % | |||||
Operating expenses | |||||||||||
TDS Telecom | 264,736 | 263,403 | 1 % | 774,723 | 771,865 | — | |||||
Array | 56,196 | 100,432 | (44) % | (397,770) | 203,761 | N/M | |||||
All Other1 | 15,775 | 12,660 | 25 % | 61,456 | 36,084 | 70 % | |||||
Total operating expenses | 336,707 | 376,495 | (11) % | 438,409 | 1,011,710 | (57) % | |||||
Operating income (loss) | |||||||||||
TDS Telecom | (17,471) | (8,292) | N/M | (29,480) | 5,538 | N/M | |||||
Array | (2,326) | (53,313) | 96 % | 557,722 | (101,129) | N/M | |||||
All Other1 | (10,216) | (6,369) | (60) % | (41,226) | (18,624) | N/M | |||||
Total operating income (loss) | (30,013) | (67,974) | 56 % | 487,016 | (114,215) | N/M | |||||
Other income (expense) | |||||||||||
Equity in earnings of unconsolidated entities | 41,414 | 69,838 | (41) % | 120,442 | 149,309 | (19) % | |||||
Interest and dividend income | 22,001 | 15,663 | 40 % | 55,418 | 28,044 | 98 % | |||||
Interest expense | (11,575) | (47,278) | 76 % | (28,284) | (100,352) | 72 % | |||||
Short-term imputed spectrum lease income | 7,669 | 30,413 | (75) % | 65,639 | 30,413 | N/M | |||||
Other, net | 4,523 | 5,347 | (15) % | 15,320 | 10,464 | 46 % | |||||
Total other income | 64,032 | 73,983 | (13) % | 228,535 | 117,878 | 94 % | |||||
Income before income taxes | 34,019 | 6,009 | N/M | 715,551 | 3,663 | N/M | |||||
Income tax expense (benefit) | (25,869) | (72,772) | 64 % | 134,950 | (85,119) | N/M | |||||
Net income from continuing operations | 59,888 | 78,781 | (24) % | 580,601 | 88,782 | N/M | |||||
Less: Net income from continuing operations | 12,999 | 21,236 | (39) % | 109,142 | 25,903 | N/M | |||||
Net income from continuing operations attributable | 46,889 | 57,545 | (19) % | 471,459 | 62,879 | N/M | |||||
Net income (loss) from discontinued operations | (1,173) | (151,899) | 99 % | 21,510 | (132,150) | N/M | |||||
Less: Net income (loss) from discontinued operations | (144) | (12,604) | 99 % | 4,148 | (6,563) | N/M | |||||
Net income (loss) from discontinued operations | (1,029) | (139,295) | 99 % | 17,362 | (125,587) | N/M | |||||
Net income (loss) | 58,715 | (73,118) | N/M | 602,111 | (43,368) | N/M | |||||
Less: Net income attributable to noncontrolling | 12,855 | 8,632 | 49 % | 113,290 | 19,340 | N/M | |||||
Net income (loss) attributable to TDS shareholders | 45,860 | (81,750) | N/M | 488,821 | (62,708) | N/M | |||||
TDS Preferred Share dividends | 17,306 | 17,306 | — | 51,919 | 51,919 | — | |||||
Net income (loss) attributable to TDS common | $ 28,554 | $ (99,056) | N/M | $ 436,902 | $ (114,627) | N/M | |||||
Basic weighted average shares outstanding | 114,374 | 116,126 | (2) % | 114,254 | 115,318 | (1) % | |||||
Basic earnings per share from continuing | $ 0.26 | $ 0.35 | (25) % | $ 3.67 | $ 0.10 | N/M | |||||
Basic earnings (loss) per share from discontinued | $ (0.01) | $ (1.20) | 99 % | $ 0.15 | $ (1.09) | N/M | |||||
Basic earnings (loss) per share attributable to TDS | $ 0.25 | $ (0.85) | N/M | $ 3.82 | $ (0.99) | N/M | |||||
Diluted weighted average shares outstanding | 115,000 | 118,844 | (3) % | 115,965 | 118,786 | (2) % | |||||
Diluted earnings per share from continuing | $ 0.26 | $ 0.33 | (23) % | $ 3.62 | $ 0.07 | N/M | |||||
Diluted earnings (loss) per share from discontinued | $ (0.01) | $ (1.17) | 99 % | $ 0.15 | $ (1.06) | N/M | |||||
Diluted earnings (loss) per share attributable to TDS | $ 0.25 | $ (0.84) | N/M | $ 3.77 | $ (0.99) | N/M | |||||
N/M - Percentage change not meaningful. | |
1 | Consists of corporate and other operations and intercompany eliminations. |
Telephone and Data Systems, Inc. | |||
Consolidated Statement of Cash Flows | |||
(Unaudited) | |||
Nine Months Ended September 30, | |||
2026 | 2025 | ||
(Dollars in thousands) | |||
Cash flows from operating activities | |||
Net income (loss) | $ 602,111 | $ (43,368) | |
Net income (loss) from discontinued operations | 21,510 | (132,150) | |
Net income from continuing operations | 580,601 | 88,782 | |
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | |||
Depreciation, amortization and accretion | 264,889 | 262,095 | |
Bad debts expense | 6,026 | 5,951 | |
Stock-based compensation expense | 12,538 | 22,336 | |
Deferred income taxes, net | (121,706) | (80,486) | |
Equity in earnings of unconsolidated entities | (120,442) | (149,309) | |
Distributions from unconsolidated entities | 89,584 | 149,732 | |
Loss on impairment of licenses | — | 47,679 | |
(Gain) loss on asset disposals, net | 13,077 | 8,524 | |
(Gain) loss on sale of business and other exit costs, net | 1,046 | (6,032) | |
(Gain) loss on license sales and exchanges, net | (553,140) | (6,123) | |
Other operating activities | 463 | 19,451 | |
Changes in assets and liabilities from operations | |||
Accounts receivable | (1,558) | (8,023) | |
Inventory | 875 | 14 | |
Accounts payable | 6,788 | 29,225 | |
Customer deposits and deferred revenues | (64,671) | (31,105) | |
Accrued taxes | (5,834) | (22,974) | |
Accrued interest | 259 | (3,741) | |
Other assets and liabilities | (64,069) | (101,156) | |
Net cash provided by operating activities - continuing operations | 44,726 | 224,840 | |
Net cash provided by (used in) operating activities - discontinued operations | (29,554) | 345,473 | |
Net cash provided by operating activities | 15,172 | 570,313 | |
Cash flows from investing activities | |||
Cash paid for additions to property, plant and equipment | (515,583) | (262,059) | |
Cash paid for acquisitions and licenses | (25,092) | (4,175) | |
Cash received from divestitures | 2,188,235 | 29,389 | |
Other investing activities | 2,749 | 3,168 | |
Net cash provided by (used in) investing activities - continuing operations | 1,650,309 | (233,677) | |
Net cash provided by investing activities - discontinued operations | — | 2,462,399 | |
Net cash provided by investing activities | 1,650,309 | 2,228,722 | |
Cash flows from financing activities | |||
Issuance of long-term debt | 1,300 | 325,000 | |
Repayment of long-term debt | (153,104) | (1,961,844) | |
Tax withholdings, net of cash receipts, for TDS stock-based compensation awards | (32,724) | (1,234) | |
Tax withholdings, net of cash receipts, for Array stock-based compensation awards | (2,068) | (63,506) | |
Repurchase of TDS Common Shares | (205,057) | (40,697) | |
Repurchase of Array Common Shares | — | (21,360) | |
Dividends paid to TDS shareholders | (65,610) | (65,801) | |
Array dividends paid to noncontrolling public shareholders | (332,480) | (358,579) | |
Payment of debt issuance costs | — | (6,459) | |
Distributions to noncontrolling interests | (3,964) | (21,131) | |
Cash paid for software license agreements | (1,943) | (1,436) | |
Payments to acquire additional interest in subsidiaries | (593) | — | |
Other financing activities | 212 | (7,481) | |
Net cash used in financing activities - continuing operations | (796,031) | (2,224,528) | |
Net cash used in financing activities - discontinued operations | — | (20,537) | |
Net cash used in financing activities | $ (796,031) | $ (2,245,065) | |
Net increase in cash, cash equivalents and restricted cash | $ 869,450 | $ 553,970 | |
Cash, cash equivalents and restricted cash | |||
Beginning of period | 770,150 | 383,222 | |
End of period | $ 1,639,600 | $ 937,192 | |
Telephone and Data Systems, Inc. | |||
Consolidated Balance Sheet Highlights | |||
(Unaudited) | |||
ASSETS | |||
September 30, 2026 | December 31, 2025 | ||
(Dollars in thousands) | |||
Current assets | |||
Cash and cash equivalents | $ 1,635,402 | $ 765,952 | |
Accounts receivable, net | 101,433 | 109,981 | |
Inventory, net | 3,187 | 4,062 | |
Prepaid expenses | 35,232 | 28,206 | |
Income taxes receivable | 5,012 | 1,292 | |
Other current assets | 12,967 | 13,976 | |
Total current assets | 1,793,233 | 923,469 | |
Non-current assets held for sale | 57,836 | 1,598,131 | |
Licenses | 1,585,374 | 1,642,972 | |
Goodwill | 6,403 | — | |
Other intangible assets, net | 110,231 | 131,673 | |
Investments in unconsolidated entities | 493,930 | 461,922 | |
Property, plant and equipment, net | 3,346,706 | 2,965,455 | |
Operating lease right-of-use assets | 497,077 | 515,081 | |
Other assets and deferred charges | 176,512 | 159,600 | |
Total assets | $ 8,067,302 | $ 8,398,303 | |
Telephone and Data Systems, Inc. | |||
Consolidated Balance Sheet Highlights | |||
(Unaudited) | |||
LIABILITIES AND EQUITY | |||
September 30, 2026 | December 31, 2025 | ||
(Dollars in thousands, except per share amounts) | |||
Current liabilities | |||
Current portion of long-term debt | $ 9,269 | $ 5,274 | |
Accounts payable | 196,646 | 115,822 | |
Customer deposits and deferred revenues | 58,803 | 125,140 | |
Accrued interest | 3,094 | 2,836 | |
Accrued taxes | 26,926 | 46,721 | |
Accrued compensation | 46,657 | 56,774 | |
Short-term operating lease liabilities | 27,404 | 26,180 | |
Current liabilities of discontinued operations | 24,304 | 20,242 | |
Other current liabilities | 54,211 | 41,322 | |
Total current liabilities | 447,314 | 440,311 | |
Deferred liabilities and credits | |||
Deferred income tax liability, net | 615,486 | 743,633 | |
Long-term operating lease liabilities | 532,555 | 549,617 | |
Other deferred liabilities and credits | 579,376 | 574,025 | |
Long-term debt, net | 668,736 | 823,364 | |
Total equity | 5,223,835 | 5,267,353 | |
Total liabilities and equity | $ 8,067,302 | $ 8,398,303 | |
Balance Sheet Highlights | |||||||||
(Unaudited) | |||||||||
September 30, 2026 | |||||||||
TDS | TDS | Intercompany | TDS | ||||||
Telecom | Array | & Other | Eliminations | Consolidated | |||||
(Dollars in thousands) | |||||||||
Cash and cash equivalents | $ 66,276 | $ 233,568 | $ 1,398,955 | $ (63,397) | $ 1,635,402 | ||||
Licenses, goodwill and other intangible assets | $ 116,787 | $ 1,584,674 | $ 547 | $ — | $ 1,702,008 | ||||
Investment in unconsolidated entities | 4,419 | 439,585 | 61,259 | (11,333) | 493,930 | ||||
$ 121,206 | $ 2,024,259 | $ 61,806 | $ (11,333) | $ 2,195,938 | |||||
Property, plant and equipment, net | $ 2,947,663 | $ 384,149 | $ 14,894 | $ — | $ 3,346,706 | ||||
Long-term debt, net: | |||||||||
Current portion | $ 167 | $ 8,125 | $ 977 | $ — | $ 9,269 | ||||
Non-current portion | 2,741 | 665,016 | 979 | — | 668,736 | ||||
$ 2,908 | $ 673,141 | $ 1,956 | $ — | $ 678,005 | |||||
TDS Telecom Highlights | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2026 | 2025 | 2026 vs. 2025 | 2026 | 2025 | 2026 vs. 2025 | ||||||
(Dollars in thousands) | |||||||||||
Operating revenues | |||||||||||
Residential | |||||||||||
Incumbent | $ 74,948 | $ 81,910 | (8) % | $ 228,108 | $ 252,168 | (10) % | |||||
Expansion | 48,310 | 39,610 | 22 % | 137,528 | 110,596 | 24 % | |||||
Cable | 55,909 | 60,231 | (7) % | 169,891 | 186,253 | (9) % | |||||
Total residential | 179,167 | 181,751 | (1) % | 535,527 | 549,017 | (2) % | |||||
Commercial | 32,451 | 34,066 | (5) % | 98,022 | 103,317 | (5) % | |||||
Wholesale | 35,588 | 39,153 | (9) % | 111,522 | 124,534 | (10) % | |||||
Total service revenues | 247,206 | 254,970 | (3) % | 745,071 | 776,868 | (4) % | |||||
Equipment revenues | 59 | 141 | (58) % | 172 | 535 | (68) % | |||||
Total operating revenues | 247,265 | 255,111 | (3) % | 745,243 | 777,403 | (4) % | |||||
Cost of operations (excluding Depreciation, | 103,180 | 102,253 | 1 % | 300,944 | 300,265 | — | |||||
Cost of equipment and products | 173 | 182 | (5) % | 402 | 562 | (28) % | |||||
Selling, general and administrative | 84,648 | 79,201 | 7 % | 244,747 | 244,905 | — | |||||
Depreciation, amortization and accretion | 75,985 | 78,901 | (4) % | 222,127 | 223,478 | (1) % | |||||
(Gain) loss on asset disposals, net | 1,265 | 22 | N/M | 7,057 | 7,890 | (11) % | |||||
(Gain) loss on sale of business and other exit costs, net | (515) | 2,844 | N/M | 1,046 | (5,235) | N/M | |||||
(Gain) loss on license sales and exchanges, net | — | — | — | (1,600) | — | N/M | |||||
Total operating expenses | 264,736 | 263,403 | 1 % | 774,723 | 771,865 | — | |||||
Operating income (loss) | $ (17,471) | $ (8,292) | N/M | $ (29,480) | $ 5,538 | N/M | |||||
N/M - Percentage change not meaningful |
Array Digital Infrastructure, Inc. Highlights | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended September 30, | Nine Months Ended | ||||||||||
2026 | 2025 | 2026 | 2026 | 2025 | 2026 | ||||||
(Dollars in thousands) | |||||||||||
Operating revenues | |||||||||||
Site rental | $ 52,475 | $ 45,838 | 14 % | $ 156,674 | $ 99,663 | 57 % | |||||
Services | 1,395 | 1,281 | 9 % | 3,278 | 2,969 | 10 % | |||||
Total operating revenues | 53,870 | 47,119 | 14 % | 159,952 | 102,632 | 56 % | |||||
Operating expenses | |||||||||||
Cost of operations (excluding Depreciation, amortization | 23,349 | 20,976 | 11 % | 68,455 | 56,662 | 21 % | |||||
Selling, general and administrative | 18,200 | 20,525 | (11) % | 53,851 | 69,063 | (22) % | |||||
Depreciation, amortization and accretion | 13,405 | 11,868 | 13 % | 40,437 | 35,860 | 13 % | |||||
Loss on impairment of licenses | — | 47,679 | N/M | — | 47,679 | N/M | |||||
(Gain) loss on asset disposals, net | 1,233 | 707 | 74 % | 5,946 | 620 | N/M | |||||
(Gain) loss on license sales and exchanges, net | 9 | (1,323) | N/M | (566,459) | (6,123) | N/M | |||||
Total operating expenses | 56,196 | 100,432 | (44) % | (397,770) | 203,761 | N/M | |||||
Operating income (loss) | $ (2,326) | $ (53,313) | 96 % | $ 557,722 | $ (101,129) | N/M | |||||
N/M - Percentage change not meaningful |
Telephone and Data Systems, Inc. | |||
Financial Measures | |||
(Unaudited) | |||
Free Cash Flow | |||
Nine Months Ended September 30, | |||
TDS CONSOLIDATED | 2026 | 2025 | |
(Dollars in thousands) | |||
Cash flows from operating activities - continuing operations (GAAP) | $ 44,726 | $ 224,840 | |
Cash paid for additions to property, plant and equipment | (515,583) | (262,059) | |
Cash paid for software license agreements | (1,943) | (1,436) | |
Free cash flow - continuing operations (Non-GAAP)1 | $ (472,800) | $ (38,655) | |
1 | Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements. |
Telephone and Data Systems, Inc.
EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations
(Unaudited)
EBITDA, Adjusted EBITDA and Adjusted OIBDA
The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income (loss) before income taxes.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
TDS Telecom | 2026 | 2025 | 2026 | 2025 | |||
(Dollars in thousands) | |||||||
Net income (loss) (GAAP) | $ (11,954) | $ (282) | $ (15,900) | $ 19,329 | |||
Add back: | |||||||
Income tax expense (benefit) | (3,306) | (2,748) | (7,305) | 561 | |||
Income (loss) before income taxes (GAAP) | (15,260) | (3,030) | (23,205) | 19,890 | |||
Add back: | |||||||
Interest expense | 155 | (1,743) | 330 | (4,168) | |||
Depreciation, amortization and accretion | 75,985 | 78,901 | 222,127 | 223,478 | |||
EBITDA (Non-GAAP) | 60,880 | 74,128 | 199,252 | 239,200 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | 4,229 | 3,497 | 4,316 | 3,497 | |||
(Gain) loss on asset disposals, net | 1,265 | 22 | 7,057 | 7,890 | |||
(Gain) loss on sale of business and other exit costs, net | (515) | 2,844 | 1,046 | (5,235) | |||
(Gain) loss on license sales and exchanges, net | — | — | (1,600) | — | |||
Adjusted EBITDA (Non-GAAP) | 65,859 | 80,491 | 210,071 | 245,352 | |||
Deduct: | |||||||
Equity in earnings of unconsolidated entities | 2 | 3 | 2 | 4 | |||
Interest and dividend income | 2,126 | 1,824 | 3,734 | 4,918 | |||
Other, net | 238 | 1,692 | 2,869 | 5,262 | |||
Adjusted OIBDA (Non-GAAP) | $ 63,493 | $ 76,972 | $ 203,466 | $ 235,168 | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
Array | 2026 | 2025 | 2026 | 2025 | |||
(Dollars in thousands) | |||||||
Net income from continuing operations (GAAP) | $ 69,978 | $ 109,920 | $ 587,449 | $ 130,503 | |||
Add back: | |||||||
Income tax expense (benefit) | (30,121) | (62,701) | 138,147 | (54,479) | |||
Income before income taxes (GAAP) | 39,857 | 47,219 | 725,596 | 76,024 | |||
Add back: | |||||||
Interest expense | 10,972 | 8,855 | 29,013 | 16,233 | |||
Depreciation, amortization and accretion | 13,405 | 11,868 | 40,437 | 35,860 | |||
EBITDA (Non-GAAP) | 64,234 | 67,942 | 795,046 | 128,117 | |||
Add back or deduct: | |||||||
Expenses related to strategic alternatives review | 5,934 | 489 | 13,512 | 2,349 | |||
Loss on impairment of licenses | — | 47,679 | — | 47,679 | |||
(Gain) loss on asset disposals, net | 1,233 | 707 | 5,946 | 620 | |||
(Gain) loss on license sales and exchanges, net | 9 | (1,323) | (566,459) | (6,123) | |||
Short-term imputed spectrum lease income | (7,669) | (30,413) | (65,639) | (30,413) | |||
Adjusted EBITDA (Non-GAAP) | 63,741 | 85,081 | 182,406 | 142,229 | |||
Deduct: | |||||||
Equity in earnings of unconsolidated entities | 41,009 | 69,811 | 116,144 | 147,453 | |||
Interest and dividend income | 4,442 | 8,909 | 15,095 | 15,267 | |||
Other, net | 35 | 254 | 9 | 253 | |||
Adjusted OIBDA (Non-GAAP) | $ 18,255 | $ 6,107 | $ 51,158 | $ (20,744) | |||
Array Adjusted Free Cash Flow (AFCF)
AFCF is a non-GAAP measure defined as Net income from continuing operations adjusted for the items set forth in the reconciliation below. AFCF is not a measure of financial performance under GAAP and should not be considered as an alternative to Net income from continuing operations or as an indicator of cash flows.
Management believes AFCF is a useful measure of Array's cash generated from operations and its noncontrolling investment interests. The following table reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure is presented following the sale of Array's wireless operations to T-Mobile on August 1, 2025, at which time the primary business operations for Array changed from providing wireless communications services to a standalone tower company.
Nine Months Ended | |
(Dollars in thousands) | |
Net income from continuing operations - Array (GAAP) | $ 587,449 |
Add back or deduct: | |
Income tax expense | 138,147 |
Cash paid for income taxes1 | (274,270) |
Stock-based compensation expense | 879 |
Short-term imputed spectrum lease income | (65,639) |
Amortization of deferred debt charges | 991 |
Equity in earnings of unconsolidated entities | (116,144) |
Distributions from unconsolidated entities | 89,584 |
(Gain) loss on license sales and exchanges, net | (566,459) |
(Gain) loss on asset disposals, net | 5,946 |
Depreciation, amortization and accretion | 40,437 |
Expenses related to strategic alternatives review | 13,512 |
Straight line and other non-cash revenue adjustments | (14,327) |
Straight line expense adjustment | 3,070 |
Maintenance and other capital expenditures | (5,172) |
Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP) | $ (161,996) |
1 | Substantially all of the cash paid for income taxes are related to the sale of various wireless spectrum licenses in 2026. |
SOURCE Telephone and Data Systems, Inc.
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