FT Markets Data
Telephone and Data Systems Inc, Array Digital Infrastructure Inc

TDS reports first quarter 2026 results

TDS Telecom and Array both reaffirm guidance for 2026

CHICAGO , May 8, 2026 /PRNewswire/ -- 

As previously announced, TDS will hold a teleconference on May 8, 2026, at9:00 a.m. CT. Listen to the call live via the Events & Presentations page ofinvestors.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.

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 connections 1

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 churn 2

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 connection 3

$     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

 

Cision View original content:https://www.prnewswire.com/news-releases/tds-reports-first-quarter-2026-results-302766869.html

SOURCE Telephone and Data Systems, Inc.