As previously announced,TDS will hold a teleconference on August11, 2025, at9:00 a.m. CDT. Listen to the call live via the Events & Presentations page ofinvestors.tdsinc.com.
Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,186 million for the second quarter of 2025, versus $1,238 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(5) million and $(0.05), respectively, for the second quarter of 2025 compared to $(14) million and $(0.13), respectively, in the same period one year ago.
Recent Highlights*
Array
— On August 1, 2025, United States Cellular Corporation changed its name to Array Digital Infrastructure, Inc.SM (ArraySM)
— On August 1, 2025, Array completed the sale of its wireless operations and select spectrum assets to T-Mobile for total consideration of $4.3 billion which includes a combination of cash and assumed debt
— Array declared a $23.00 per share special dividend payable to its shareholders on August 19, 2025
— Third-party tower revenues increased 12%
— Pending AT&T and Verizon spectrum transactions are expected to close in 2H 2025 and Q3 2026, respectively, subject to receipt of regulatory approvals and satisfaction of closing conditions
TDS Telecom
— Ken Dixon joined the organization as TDS Telecom President and CEO
— Executing on fiber broadband strategy
— Delivered 27,000 marketable fiber services addresses in Q2 2025
— Added 3,900 residential broadband net additions; Grew fiber connections -10,300 residential broadband net adds from fiber markets
— TDS Telecom revenues down 1%, impacted by divestitures of non-strategic assets
*Comparisons are 2Q'24 to 2Q'25 unless otherwise noted. Note that in September 2024, TDS sold its Hosted and Managed Services (HMS) operations. This 2024 transaction affects year-over-year revenue comparisons at the consolidated level. HMS operating revenues were $38 million in Q2 2024.
“TDS has made significant progress on its strategic priorities,” said Walter Carlson, TDS President and CEO. “With the successful completion of the T-Mobile transaction, we delivered a key milestone in the company's transformation, and positioned the continuing tower business for growth and value creation. Additionally, we are delighted that Ken Dixon, CEO of TDS Telecom, has joined the organization at a pivotal time for our fiber business. With a growing fiber network and strengthened tower operations, I see tremendous opportunities ahead for the TDS enterprise.”
2025 Estimated Results TDS' current estimates of full-year 2025 results for TDS Telecom are shown below. Such estimates represent management's view as of August11, 2025 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.
Array is not providing 2025 financial guidance.
2025 Estimated ResultsTDS Telecom Previous Current(Dollars in millions)Total operating revenues $1,030-$1,070 $1,030-$1,050Adjusted OIBDA1 (Non-GAAP) $310-$350 $310-$340Adjusted EBITDA1(Non-GAAP) $320-$360 $320-$350Capital expenditures $375-$425 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 2025 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.
2025 Estimated Actual Results ResultsTDS Telecom Six Months Ended Year Ended June 30, 2025 December 31, 2024(Dollars in millions)Net income (GAAP) N/A $ 20 $ 85Add back:Income tax expense N/A 3 35Income before income taxes (GAAP) $20-$50 $ 23 $ 120Add back:Interest expense – (2) (5)Depreciation, amortization and accretion expense 300 145 271EBITDA (Non-GAAP)1 $320-$350 $ 165 $ 385Add back or deduct:Loss on impairment of intangible assets – – 1(Gain) loss on asset disposals, net – 8 12(Gain) loss on sale of business and other exit costs, net – (8) (49)Adjusted EBITDA (Non-GAAP)1 $320-$350 $ 165 $ 350Deduct:Interest and dividend income 5 3 5Other, net 5 4 4Adjusted OIBDA (Non-GAAP)1 $310-$340 $ 158 $ 340
Numbers may not foot due to rounding.1 EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income 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. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes.
Conference Call Information TDS will hold a conference call on August11, 2025 at 9:00 a.m. Central Time.
— Access the live call on the Events & Presentations page of investors.tdsinc.com or at https://events.q4inc.com/attendee/378403075
— Access the call by phone at (888)330-2384, conference ID: 1328528.
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 and voicethrough its TDS Telecom business. Its Array business leases and offers tower space to third-party carriers. 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: the manner in which Array's remaining business is conducted; whether the previously announced spectrum license sales to Verizon and AT&T will be consummated; whether Array can monetize its remaining spectrum assets; strategic decisions regarding the tower business; intense competition; 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; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems 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; the effect on TDS' business if the collateral securing its secured term loan is foreclosed upon; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities 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; extreme weather events; and the impact, duration and severity of public health emergencies. 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 Array: investors.arrayinc.com TDS Telecom: www.tdstelecom.com
Array Digital Infrastructure, Inc.Summary Operating Data (Unaudited)As of or for the Quarter Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024Retail ConnectionsPostpaidTotal at end of period 3,904,000 3,946,000 3,985,000 3,999,000 4,027,000Gross additions 109,000 105,000 140,000 123,000 117,000Handsets 70,000 68,000 93,000 84,000 73,000Connected devices 39,000 37,000 47,000 39,000 44,000Net additions (losses) (42,000) (39,000) (14,000) (28,000) (24,000)Handsets (44,000) (38,000) (19,000) (28,000) (29,000)Connected devices 2,000 (1,000) 5,000 – 5,000ARPU1 $ 51.91 $ 52.06 $ 51.73 $ 52.04 $ 51.45ARPA2 $ 131.89 $ 132.25 $ 131.10 $ 131.81 $ 130.41Handset upgrade rate3 4.2% 3.1% 4.8% 3.5% 4.1%Churn rate4 1.29% 1.21% 1.29% 1.25% 1.16%Handsets 1.12% 1.03% 1.08% 1.07% 0.97%Connected devices 2.36% 2.40% 2.67% 2.47% 2.47%PrepaidTotal at end of period 429,000 431,000 448,000 452,000 439,000Gross additions 43,000 38,000 46,000 57,000 50,000Net additions (losses) (2,000) (17,000) (4,000) 13,000 3,000ARPU1 $ 31.72 $ 30.76 $ 30.59 $ 32.01 $ 32.37Churn rate4 3.58% 4.17% 3.70% 3.30% 3.60%Market penetration at end of periodConsolidated operating population 31,390,000 31,390,000 32,550,000 32,550,000 32,550,000Consolidated operating penetration5 14% 14% 14% 14% 14%Capital expenditures (millions) $ 80 $ 53 $ 162 $ 120 $ 165Total cell sites in service 7,061 7,009 7,010 7,007 6,990Owned towers 4,418 4,413 4,409 4,407 4,388Number of colocations6 2,527 2,469 2,444 2,418 2,392Tower tenancy rate7 1.57 1.56 1.55 1.55 1.55
1 Average Revenue Per User (ARPU) – metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period.These revenue bases and connection populations are shown below: • Postpaid ARPU consists of total postpaid service revenues and postpaid connections. • Prepaid ARPU consists of total prepaid service revenues and prepaid connections.2 Average Revenue Per Account (ARPA) – metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.3 Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.4 Churn rate represents the percentage of the connections that disconnect service each month.These rates represent the average monthly churn rate for each respective period.5 Market penetration is calculated by dividing the number of retail wireless connections at the end of the period by the total estimated population of consolidated operating markets. The methodology for the calculation was updated in the second quarter of 2025 and prior periods were revised to reflect this change.6 Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower.7 Average number of tenants that lease space on company-owned towers, measured on a per-tower basis.
TDS TelecomSummary Operating Data (Unaudited)As of or for the Quarter Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024Residential connectionsBroadbandIncumbent Fiber 121,200 119,700 118,500 115,900 113,100Incumbent Copper 106,500 112,600 116,900 125,600 130,600Expansion Fiber 141,800 133,200 126,100 115,300 107,800Cable 188,200 190,200 191,500 195,900 198,500Total Broadband 557,700 555,800 553,000 552,700 550,000Video 116,500 118,700 121,000 122,100 124,800Voice 248,700 256,900 261,600 271,300 275,600Wireless 1,600 900 100 – -Total Residential connections 924,500 932,300 935,700 946,100 950,400Commercial connections 184,300 187,600 190,500 197,200 201,500Total connections1 1,108,800 1,119,900 1,126,300 1,143,300 1,152,000Total residential fiber net adds 10,300 8,300 13,600 10,400 10,700Total residential broadband net adds 3,900 2,800 7,900 2,700 2,100Residential fiber churn2 1.1% 0.9% 1.0% 1.3% 1.2%Total residential broadband churn 1.5% 1.3% 1.4% 1.7% 1.7%Residential revenue per connection3 $ 65.85 $ 65.67 $ 64.72 $ 65.41 $ 65.26Capital expenditures (millions) $ 90 $ 59 $ 82 $ 78 $ 78
Numbers may not foot due to rounding.1 Q2 2024 total connections include 23,700 connections that were part of subsequent divestitures.2 Residential fiber churn represents the percentage of incumbent and expansion fiber connections that disconnected service each month. These rates represent the average monthly churn rate for each respective period.3 Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.
Telephone and Data Systems, Inc.Consolidated Statement of Operations Highlights(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2025 2024 2025 vs. 2024 vs. 2024(Dollars and shares in millions, except per share amounts)Operating revenuesArray $ 916 $ 927 (1)% $ 1,807 $ 1,877 (4)%TDS Telecom 265 267 (1)% 522 534 (2)%All Other1 5 44 (88)% 12 89 (88)% 1,186 1,238 (4)% 2,341 2,500 (6)%Operating expensesArrayExpenses excluding depreciation, amortization and accretion 720 713 1% 1,407 1,442 (2)%Depreciation, amortization and accretion 163 165 (1)% 325 329 (2)%(Gain) loss on asset disposals, net 2 5 (53)% 4 11 (60)%(Gain) loss on license sales and exchanges, net (4) 8 N/M (5) 7 N/M 881 891 (1)% 1,731 1,789 (3)%TDS TelecomExpenses excluding depreciation, amortization and accretion 180 178 1% 364 351 4%Depreciation, amortization and accretion 73 67 10% 145 131 10%(Gain) loss on asset disposals, net 6 4 61% 8 6 39%(Gain) loss on sale of business and other exit costs, net (8) – N/M (8) – N/M 251 248 1% 508 488 4%All Other1Expenses excluding depreciation and amortization 13 58 (77)% 26 111 (77)%Depreciation and amortization – 1 (65)% 2 7 (70)%(Gain) loss on asset disposals, net 1 – N/M – (1) (23)%(Gain) loss on sale of business and other exit costs, net – – N/M (1) – N/M 14 60 (77)% 28 117 (77)%Total operating expenses 1,146 1,199 (4)% 2,267 2,394 (5)%Operating income (loss)Array 35 36 (4)% 76 88 (13)%TDS Telecom 14 19 (27)% 14 46 (70)%All Other1 (9) (16) 45% (16) (28) 42% 40 39 2% 74 106 (30)%Other income (expense)Equity in earnings of unconsolidated entities 43 39 9% 79 82 (3)%Interest and dividend income 6 7 (18)% 13 12 1%Interest expense (70) (73) 5% (129) (131) 2%Other, net 2 1 N/M 5 2 N/MTotal other expense (19) (26) 28% (32) (35) 8%Income before income taxes 21 13 61% 42 71 (41)%Income tax expense 3 6 (46)% 12 26 (54)%Net income 18 7 N/M 30 45 (34)%Less: Net income attributable to noncontrolling interests, net of tax 6 4 61% 11 13 (16)%Net income attributable to TDS shareholders 12 3 N/M 19 32 (41)%TDS Preferred Share dividends 17 17 – 35 35 -Net income (loss) attributable to TDS common shareholders $ (5) $ (14) 60% $ (16) $ (3) N/MBasic weighted average shares outstanding 115 114 1% 115 113 1%Basic earnings (loss) per share attributable to TDS common $ (0.05) $ (0.13) 61% $ (0.14) $ (0.02) N/MshareholdersDiluted weighted average shares outstanding 115 114 1% 115 113 1%Diluted earnings (loss) per share attributable to TDS common $ (0.05) $ (0.13) 58% $ (0.15) $ (0.03) N/Mshareholders
N/M – Percentage change not meaningful.Numbers may not foot due to rounding.1 Consists of TDS corporate, intercompany eliminations and all other business operations not included in the Array and TDS Telecom segments.
Telephone and Data Systems, Inc.Consolidated Statement of Cash Flows(Unaudited) Six Months Ended June 30, 2025 2024(Dollars in millions)Cash flows from operating activitiesNet income $ 30 $ 45Add (deduct) adjustments to reconcile net income to net cash flows from operating activitiesDepreciation, amortization and accretion 472 467Bad debts expense 45 51Stock-based compensation expense 44 29Deferred income taxes, net 2 16Equity in earnings of unconsolidated entities (79) (82)Distributions from unconsolidated entities 88 80(Gain) loss on asset disposals, net 12 16(Gain) loss on sale of business and other exit costs, net (9) -(Gain) loss on license sales and exchanges, net (5) 7Other operating activities 6 5Changes in assets and liabilities from operationsAccounts receivable (29) 6Equipment installment plans receivable 44 5Inventory 52 54Accounts payable (1) (14)Customer deposits and deferred revenues (14) 7Accrued taxes 4 7Accrued interest (1) 5Other assets and liabilities (54) (78)Net cash provided by operating activities 607 626Cash flows from investing activitiesCash paid for additions to property, plant and equipment (286) (451)Cash paid for licenses (4) (15)Cash received from divestitures 24 -Other investing activities 2 1Net cash used in investing activities (264) (465)Cash flows from financing activitiesIssuance of long-term debt – 440Repayment of long-term debt (17) (401)Tax withholdings, net of cash receipts, for TDS stock-based compensation awards (25) (10)Tax withholdings, net of cash receipts, for Array stock-based compensation awards (36) (12)Repurchase of Array Common Shares (21) -Dividends paid to TDS shareholders (44) (61)Payment of debt issuance costs (2) (16)Distributions to noncontrolling interests (2) (3)Cash paid for software license agreements (20) (21)Other financing activities (1) (1)Net cash used in financing activities (168) (85)Net increase in cash, cash equivalents and restricted cash 175 76Cash, cash equivalents and restricted cashBeginning of period 384 270End of period $ 559 $ 346
Telephone and Data Systems, Inc.Consolidated Balance Sheet Highlights(Unaudited)ASSETS June 30, 2025 December 31, 2024(Dollars in millions)Current assetsCash and cash equivalents $ 540 $ 364Accounts receivable, net 1,006 1,041Inventory, net 130 183Prepaid expenses 76 72Income taxes receivable 2 2Other current assets 32 33Total current assets 1,786 1,695Licenses 4,592 4,588Other intangible assets, net 146 161Investments in unconsolidated entities 493 500Property, plant and equipment, net 4,808 4,994Operating lease right-of-use assets 975 982Other assets and deferred charges 726 762Total assets $ 13,526 $ 13,682
Telephone and Data Systems, Inc.Consolidated Balance Sheet Highlights(Unaudited)LIABILITIES AND EQUITY June 30, 2025 December 31, 2024(Dollars in millions, except per share amounts)Current liabilitiesCurrent portion of long-term debt $ 37 $ 31Accounts payable 268 280Customer deposits and deferred revenues 270 283Accrued interest 15 16Accrued taxes 39 39Accrued compensation 97 150Short-term operating lease liabilities 148 153Other current liabilities 127 138Total current liabilities 1,001 1,090Deferred liabilities and creditsDeferred income tax liability, net 982 981Long-term operating lease liabilities 867 867Other deferred liabilities and credits 815 809Long-term debt, net 4,030 4,051Noncontrolling interests with redemption features 16 16EquityTDS shareholders' equitySeries A Common and Common Shares, par value $0.01 per share 1 1Capital in excess of par value 2,535 2,574Preferred Shares, par value $0.01 per share 1,074 1,074Treasury shares, at cost (389) (425)Accumulated other comprehensive income 18 18Retained earnings 1,765 1,849Total TDS shareholders' equity 5,004 5,091Noncontrolling interests 811 777Total equity 5,815 5,868Total liabilities and equity $ 13,526 $ 13,682
Balance Sheet Highlights(Unaudited) June 30, 2025 TDS TDS Intercompany TDS Corporate Array Telecom & Other Eliminations Consolidated(Dollars in millions)Cash and cash equivalents $ 386 $ 164 $ 153 $ (163) $ 540Licenses and other intangible assets $ 4,583 $ 150 $ 5 $ – $ 4,738Investment in unconsolidated entities 444 4 52 (7) 493 $ 5,027 $ 154 $ 57 $ (7) $ 5,231Property, plant and equipment, net $ 2,313 $ 2,479 $ 16 $ – $ 4,808Long-term debt, net:Current portion $ 28 $ – $ 9 $ – $ 37Non-current portion 2,819 3 1,208 – 4,030 $ 2,847 $ 3 $ 1,217 $ – $ 4,067
Array Digital Infrastructure, Inc.Segment Results(Unaudited) Three Months Ended Six Months Ended June 30, June 30,Array 2025 2024 2025 2025 2024 2025 vs. 2024 vs. 2024(Dollars in millions)Operating RevenuesWireless $ 888 $ 902 (1)% $ 1,751 $ 1,826 (4)%Towers 62 58 7% 123 116 6%Intra-company eliminations (34) (33) (3)% (67) (65) (3)%Total operating revenues 916 927 (1)% 1,807 1,877 (4)%Operating expensesWireless 874 885 (1)% 1,717 1,779 (3)%Towers 41 39 5% 81 75 8%Intra-company eliminations (34) (33) (3)% (67) (65) (3)%Total operating expenses 881 891 (1)% 1,731 1,789 (3)%Operating income $ 35 $ 36 (4)% $ 76 $ 88 (13)%Adjusted OIBDA (Non-GAAP) $ 208 $ 227 (9)% $ 422 $ 456 (7)%Adjusted EBITDA (Non-GAAP) $ 254 $ 268 (6)% $ 506 $ 542 (7)%Capital expenditures $ 80 $ 165 (52)% $ 132 $ 295 (55)%
Array Digital Infrastructure, Inc.Segment Results(Unaudited) Three Months Ended Six Months Ended June 30, June 30,Array Wireless 2025 2024 2025 2025 2024 2025 vs. 2024 vs. 2024(Dollars in millions)Retail service $ 652 $ 666 (2)% $ 1,312 $ 1,344 (2)%Other 56 52 7% 109 102 7%Service revenues 708 718 (1)% 1,421 1,446 (2)%Equipment sales 180 184 (2)% 330 380 (13)%Total operating revenues 888 902 (1)% 1,751 1,826 (4)%System operations (excluding Depreciation, amortizationand 197 194 1% 387 390 (1)%accretion reported below)Cost of equipment sold 209 211 (1)% 387 427 (9)%Selling, general and administrative 319 313 2% 643 637 1%Depreciation, amortization and accretion 151 154 (2)% 302 308 (2)%(Gain) loss on asset disposals, net 2 5 (59)% 3 10 (66)%(Gain) loss on license salesand exchanges, net (4) 8 N/M (5) 7 N/MTotal operating expenses 874 885 (1)% 1,717 1,779 (3)%Operating income $ 14 $ 17 (21)% $ 34 $ 47 (27)%Adjusted OIBDA (Non-GAAP) $ 174 $ 196 (11)% $ 355 $ 392 (9)%Adjusted EBITDA (Non-GAAP) $ 174 $ 196 (11)% $ 355 $ 392 (9)%Capital expenditures $ 77 $ 160 (52)% $ 127 $ 286 (55)% Three Months Ended Six Months Ended June 30, June 30,Array Towers 2025 2024 2025 2025 2024 2025 vs. 2024 vs. 2024(Dollars in millions)Third-party revenues $ 28 $ 25 12% $ 56 $ 51 9%Intra-company revenues 34 33 3% 67 65 3%Total tower revenues 62 58 7% 123 116 6%System operations (excluding Depreciation, amortization and 20 19 6% 39 37 5%accretion reported below)Selling, general and administrative 9 9 (1)% 18 16 14%Depreciation, amortization and accretion 12 11 7% 23 21 6%(Gain) loss on asset disposals, net – – 14% 1 1 60%Total operating expenses 41 39 5% 81 75 8%Operating income $ 21 $ 19 11% $ 42 $ 41 2%Adjusted OIBDA (Non-GAAP) $ 34 $ 31 9% $ 67 $ 64 4%Adjusted EBITDA (Non-GAAP) $ 34 $ 31 9% $ 67 $ 64 4%Capital expenditures $ 3 $ 5 (51)% $ 5 $ 9 (47)%
TDS Telecom Highlights(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2025 2024 2025 vs. 2024 vs. 2024(Dollars in millions)Operating revenuesResidentialIncumbent $ 85 $ 90 (6)% $ 170 $ 180 (5)%Expansion 37 28 31% 71 54 32%Cable 62 69 (10)% 126 138 (9)%Total residential 183 186 (2)% 367 372 (1)%Commercial 35 37 (6)% 69 74 (6)%Wholesale 47 44 7% 85 88 (3)%Total service revenues 265 267 (1)% 522 534 (2)%Equipment revenues – – (14)% – – 2%Total operating revenues 265 267 (1)% 522 534 (2)%Cost of services 97 98 (1)% 198 196 1%Cost of equipment and products – – (6)% – – 25%Selling, general and administrative expenses 83 80 3% 166 155 7%Depreciation, amortization and accretion 73 67 10% 145 131 10%(Gain) loss on asset disposals, net 6 4 61% 8 6 39%(Gain) loss on sale of business and other exit costs, net (8) – N/M (8) – N/MTotal operating expenses 251 248 1% 508 488 4%Operating income $ 14 $ 19 (27)% $ 14 $ 46 (70)%
N/M – Percentage change not meaningfulNumbers may not foot due to rounding.
Telephone and Data Systems, Inc.Financial Measures(Unaudited)Free Cash Flow Three Months Ended Six Months Ended June 30, June 30,TDS CONSOLIDATED 2025 2024 2025 2024(Dollars in millions)Cash flows from operating activities (GAAP) $ 422 $ 403 $ 607 $ 626Cash paid for additions to property, plant and equipment (157) (216) (286) (451)Cash paid for software license agreements (11) (11) (20) (21)Free cash flow (Non-GAAP)1 $ 254 $ 176 $ 301 $ 154 Three Months Ended Six Months Ended June 30, June 30,Array 2025 2024 2025 2024(Dollars in millions)Cash flows from operating activities (GAAP) $ 325 $ 313 $ 485 $ 516Cash paid for additions to property, plant and equipment (75) (137) (147) (270)Cash paid for software license agreements (11) (11) (20) (20)Free cash flow (Non-GAAP)1 $ 239 $ 165 $ 318 $ 226
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 and Adjusted OIBDA (Unaudited)
The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income before income taxes. Income and expense items below Operating income are not provided at the individual segment level for Array Wireless and Array Towers; therefore, the reconciliations begin with EBITDA and the most directly comparable GAAP measure is Operating income rather than Net income at the segment level.
Three Months Ended Six Months Ended June 30, June 30,Array 2025 2024 2025 2024(Dollars in millions)Net income (GAAP) $ 32 $ 18 $ 52 $ 42Add back or deduct:Income tax expense 4 14 24 41Income before income taxes (GAAP) 36 32 76 83Add back:Interest expense 45 45 84 91Depreciation, amortization and accretion expense 163 165 325 329EBITDA (Non-GAAP) 244 242 485 503Add back or deduct:Expenses related to strategic alternatives review 12 13 22 21(Gain) loss on asset disposals, net 2 5 4 11(Gain) loss on license sales and exchanges, net (4) 8 (5) 7Adjusted EBITDA (Non-GAAP) 254 268 506 542Deduct:Equity in earnings of unconsolidated entities 42 38 78 80Interest and dividend income 4 3 6 6Adjusted OIBDA (Non-GAAP) $ 208 $ 227 $ 422 $ 456 Three Months Ended Six Months Ended June 30, June 30,Array Wireless 2025 2024 2025 2024(Dollars in millions)EBITDA (Non-GAAP) $ 165 $ 171 $ 336 $ 355Add back or deduct:Expenses related to strategic alternatives review 11 12 21 20(Gain) loss on asset disposals, net 2 5 3 10(Gain) loss on license sales and exchanges, net (4) 8 (5) 7Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) 174 196 355 392Deduct:Depreciation, amortization and accretion 151 154 302 308Expenses related to strategic alternatives review 11 12 21 20(Gain) loss on asset disposals, net 2 5 3 10(Gain) loss on license sales and exchanges, net (4) 8 (5) 7Operating income (GAAP) $ 14 $ 17 $ 34 $ 47 Three Months Ended Six Months Ended June 30, June 30,Array Towers 2025 2024 2025 2024(Dollars in millions)EBITDA (Non-GAAP) $ 33 $ 30 $ 65 $ 62Add back or deduct:Expenses related to strategic alternatives review 1 1 1 1(Gain) loss on asset disposals, net – – 1 1Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) 34 31 67 64Deduct:Depreciation, amortization and accretion 12 11 23 21Expenses related to strategic alternatives review 1 1 1 1(Gain) loss on asset disposals, net – – 1 1Operating income (GAAP) $ 21 $ 19 $ 42 $ 41 Three Months Ended Six Months Ended June 30, June 30,TDS Telecom 2025 2024 2025 2024(Dollars in millions)Net income (GAAP) $ 16 $ 18 $ 20 $ 42Add back or deduct:Income tax expense 2 3 3 10Income before income taxes (GAAP) 18 21 23 52Add back:Interest expense (1) – (2) (2)Depreciation, amortization and accretion expense 73 67 145 131EBITDA (Non-GAAP) 90 88 165 181Add back or deduct:(Gain) loss on asset disposals, net 6 4 8 6(Gain) loss on sale of business and other exit costs, net (8) – (8) -Adjusted EBITDA (Non-GAAP) 89 91 165 187Deduct:Interest and dividend income 2 1 3 2Other, net 2 1 4 2Adjusted OIBDA (Non-GAAP) $ 85 $ 89 $ 158 $ 183
Numbers may not foot due to rounding.
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SOURCE Telephone and Data Systems, Inc.
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