TDS reports fourth quarter and full year 2025 results

TDS Telecom increases its long-term marketable fiber service goal to 2.1 million addresses

TDS Telecom and Array provide 2026 guidance

CHICAGO, Feb. 20, 2026 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on February 20, 2026, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

Telephone and Data Systems, Inc. (NYSE: TDS) reported results for the fourth quarter and full year 2025.

"2025 was a year of significant transformation for TDS," said Walter Carlson, President and CEO. "We completed the largest transaction in our history with the sale of our wireless business, launched a new tower company now operating as Array, and ended the year with 1.06 million marketable fiber service addresses at TDS Telecom. These actions strengthened our balance sheet and positioned the company for sustainable growth."

Highlights

TDS

TDS Telecom

Array

TDS reported total operating revenues from continuing operations of $330.7 million for the fourth quarter of 2025, versus $295.3 million for the same period one year ago. Net income attributable to TDS common shareholders and related diluted earnings per share from continuing operations were $37.2 million and $0.32, respectively, for the fourth quarter of 2025 compared to $1.0 million and $0.01, respectively, in the same period one year ago.

TDS reported total operating revenues from continuing operations of $1,228.2 million and $1,297.0 million for the years ended 2025 and 2024, respectively. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share from continuing operations were $48.2 million and $0.39, respectively, for the year ended 2025 compared to $(141.4) million and $(1.24), respectively, for the year ended 2024.

"In 2026, we intend to continue to advance our strategic priorities by investing in the expansion of TDS Telecom's fiber business and supporting co‑location and profitability initiatives at Array. We also expect to close our pending spectrum transactions and pursue opportunities to further monetize our remaining spectrum," Carlson added.

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 February 20, 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

2026 Estimated

Results

Actual Results for

the Year Ended

December 31, 2025*

(Dollars in millions)

Total operating revenues

$1,015-$1,055

$1,038

Adjusted OIBDA 1 (Non-GAAP)

$300-$340

$319

Adjusted EBITDA 1 (Non-GAAP)

$310-$350

$330

Capital expenditures

$550-$600

$406

* The 2025 divestitures at TDS Telecom impact year-over-year comparisons. The divested markets contributed $19M in annual revenues in 2025.

Array

2026 Estimated

Results

Actual Results for

the Year Ended

December 31, 2025

(Dollars in millions)

Total operating revenues

$200-$215

$163

Adjusted OIBDA 1 (Non-GAAP)

$50-$65

Adjusted EBITDA 1 (Non-GAAP)

$200-$215

$194

Capital expenditures

$25-$35

$30

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.

TDS Telecom

Array

2026 Estimated

Results

Actual Results for

the Year Ended

December 31, 2025

2026 Estimated

Results

Actual Results for

the Year Ended

December 31, 2025

(Dollars in millions)

Net income from continuing operations (GAAP)

N/A

$28

N/A

$172

Add back:

Income tax expense (benefit)

N/A

(31)

Income (loss) before income taxes (GAAP)

($15)-$25

$38

$780-$795

$141

Add back or deduct:

Interest expense

—

(7)

Depreciation, amortization and accretion

325

300

EBITDA (Non-GAAP) 1

$310-$350

$331

$875-$890

$218

Add back or deduct:

Expenses related to strategic alternatives review

—

Loss on impairment of intangible assets

—

(Gain) loss on asset disposals, net

—

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

—

(23)

—

(Gain) loss on license sales and exchanges, net

—

(595)

(6)

Short-term imputed spectrum lease income

—

(80)

(69)

Adjusted EBITDA (Non-GAAP) 1

$310-$350

$330

$200-$215

$194

Deduct:

Equity in earnings of unconsolidated entities

—

140

174

Interest and dividend income

Other, net

—

Adjusted OIBDA (Non-GAAP) 1

$300-$340

$319

$50-$65

Numbers may not foot due to rounding.

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 February 20, 2026 at 9:00 a.m. Central Time.

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: the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; whether the additional spectrum license sales to T-Mobile and the previously announced spectrum license sales to Verizon 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 churn rates; advances or changes 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; 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; 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.

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com

TDS Telecom: www.tdstelecom.com

Array: investors.arrayinc.com

Array Digital Infrastructure, Inc.

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

12/31/2025

9/30/2025

Capital expenditures from continuing operations (thousands)

$ 12,933

$ 7,927

Owned towers

4,450

4,449

Number of colocations 1

4,572

4,517

Tower tenancy rate 2

1.03

1.02

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.

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.

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Residential connections

Broadband

Incumbent Fiber

127,300

123,500

121,200

119,700

118,500

Incumbent Copper

91,200

102,000

106,500

112,600

116,900

Expansion Fiber

160,600

150,700

141,800

133,200

126,100

Cable

182,800

186,100

188,200

190,200

191,500

Total Broadband

561,900

562,400

557,700

555,800

553,000

Video

111,500

114,300

116,500

118,700

121,000

Voice

228,900

242,200

248,700

256,900

261,600

Wireless

3,300

2,200

1,600

900

100

Total Residential connections

905,600

921,100

924,500

932,300

935,700

Commercial connections

173,900

180,300

184,300

187,600

190,500

Total connections 1

1,079,500

1,101,300

1,108,800

1,119,900

1,126,300

Total residential fiber net adds

15,100

11,200

10,300

8,300

13,600

Total residential broadband net adds

4,500

4,600

3,900

2,800

7,900

Residential fiber churn 2

1.2 %

1.5 %

1.1 %

0.9 %

1.0 %

Total residential broadband churn

1.6 %

1.7 %

1.5 %

1.3 %

1.4 %

Residential revenue per connection 3

$ 65.95

$ 65.66

$ 65.85

$ 65.67

$ 64.72

Capital expenditures (thousands)

$ 154,904

$ 102,429

$ 90,187

$ 58,870

$ 81,743

Numbers may not foot due to rounding.

Divestitures in 2025 resulted in a decrease of 19,400 connections, including 7,700 residential broadband connections.

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.

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

December 31,

Year Ended

December 31,

2025

2024

2025

vs. 2024

2025

2024

2025

vs. 2024

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

Operating revenues

TDS Telecom

$ 260,956

$ 264,295

(1) %

$ 1,038,358

$ 1,060,857

(2) %

Array

60,328

26,089

N/M

162,961

102,933

58 %

All Other 1

9,428

4,964

90 %

26,888

133,188

(80) %

330,712

295,348

12 %

1,228,207

1,296,978

(5) %

Operating expenses

TDS Telecom

Expenses excluding depreciation, amortization and accretion

179,941

187,101

(4) %

725,672

720,517

1 %

Depreciation, amortization and accretion

76,720

71,713

7 %

300,196

270,660

11 %

Loss on impairment of intangible assets

900

1,103

(18) %

900

1,103

(18) %

(Gain) loss on asset disposals, net

7,163

4,032

78 %

15,054

12,376

22 %

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

(17,886)

(49,108)

64 %

(23,121)

(49,108)

53 %

246,838

214,841

15 %

1,018,701

955,548

7 %

Array

Expenses excluding depreciation, amortization and accretion

38,204

43,733

(13) %

163,929

175,553

(7) %

Depreciation, amortization and accretion

12,402

12,156

2 %

48,262

47,212

2 %

Loss on impairment of intangible assets

—

N/M

47,679

136,234

(65) %

(Gain) loss on asset disposals, net

1,125

219

N/M

1,746

809

N/M

(Gain) loss on license sales and exchanges, net

—

(900)

—

(6,123)

3,460

N/M

51,731

55,208

(6) %

255,493

363,268

(30) %

All Other 1

Expenses excluding depreciation, amortization and accretion

14,610

14,989

(3) %

48,721

180,882

(73) %

Depreciation, amortization and accretion

667

950

(30) %

3,427

7,825

(56) %

(Gain) loss on asset disposals, net

(9)

N/M

(44)

N/M

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

—

(7,510)

N/M

(797)

(19,242)

96 %

15,313

8,420

82 %

51,398

169,421

(70) %

Total operating expenses

313,882

278,469

13 %

1,325,592

1,488,237

(11) %

Operating income (loss)

TDS Telecom

14,118

49,454

(71) %

19,657

105,309

(81) %

Array

8,597

(29,119)

N/M

(92,532)

(260,335)

64 %

All Other 1

(5,885)

(3,456)

(70) %

(24,510)

(36,233)

(32) %

16,830

16,879

—

(97,385)

(191,259)

49 %

Other income (expense)

Equity in earnings of unconsolidated entities

26,792

38,506

(30) %

176,101

163,623

8 %

Interest and dividend income

12,263

6,933

77 %

40,307

27,201

48 %

Interest expense

(12,316)

(29,657)

58 %

(112,668)

(108,575)

(4) %

Short-term imputed spectrum lease income

38,619

—

N/M

69,033

—

N/M

Other, net

3,112

2,541

22 %

13,574

5,622

N/M

Total other income

68,470

18,323

N/M

186,347

87,871

N/M

Income (loss) before income taxes

85,300

35,202

N/M

88,962

(103,388)

N/M

Income tax expense (benefit)

22,936

14,728

56 %

(62,184)

(22,067)

N/M

Net income (loss) from continuing operations

62,364

20,474

N/M

151,146

(81,321)

N/M

Less: Net income (loss) from continuing operations

attributable to noncontrolling interests, net of tax

7,839

2,163

N/M

33,742

(9,150)

N/M

Net income (loss) from continuing operations attributable

to TDS shareholders

$ 54,525

$ 18,311

N/M

$ 117,404

$ (72,171)

N/M

Net income (loss) from discontinued operations

$ 1,246

$ (13,313)

N/M

$ (130,904)

$ 54,840

N/M

Less: Net income (loss) from discontinued

operations attributable to noncontrolling interests, net of tax

(701)

(865)

(19) %

(7,264)

10,374

N/M

Net income (loss) from discontinued operations attributable

to TDS shareholders

1,947

(12,448)

N/M

(123,640)

44,466

N/M

Net income (loss)

63,610

7,161

N/M

20,242

(26,481)

N/M

Less: Net income attributable to noncontrolling interests,

net of tax

7,138

1,298

N/M

26,478

1,224

N/M

Net income (loss) attributable to TDS shareholders

56,472

5,863

N/M

(6,236)

(27,705)

77 %

TDS Preferred Share dividends

17,306

—

69,225

—

Net income (loss) attributable to TDS common shareholders

$ 39,166

$ (11,443)

N/M

$ (75,461)

$ (96,930)

22 %

Basic weighted average shares outstanding

114,767

114,282

–

115,179

113,714

1 %

Basic earnings (loss) per share from continuing

operations attributable to TDS common shareholders

$ 0.32

$ 0.01

N/M

$ 0.42

$ (1.24)

N/M

Basic earnings (loss) per share from discontinued

operations attributable to TDS common shareholders

$ 0.02

$ (0.11)

N/M

$ (1.08)

$ 0.39

N/M

Basic earnings (loss) per share attributable to TDS

common shareholders

$ 0.34

$ (0.10)

N/M

$ (0.66)

$ (0.85)

23 %

Diluted weighted average shares outstanding

117,516

118,273

(1) %

118,563

113,714

4 %

Diluted earnings (loss) per share from continuing

operations attributable to TDS common shareholders

$ 0.32

$ 0.01

N/M

$ 0.39

$ (1.24)

N/M

Diluted earnings (loss) per share from discontinued

operations attributable to TDS common shareholders

$ 0.01

$ (0.11)

N/M

$ (1.04)

$ 0.39

N/M

Diluted earnings (loss) per share attributable to TDS

common shareholders

$ 0.33

$ (0.10)

N/M

$ (0.65)

$ (0.85)

23 %

N/M - Percentage change not meaningful.

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)

Year Ended December 31,

2025

2024

(Dollars in thousands)

Cash flows from operating activities

Net income (loss)

$ 20,242

$ (26,481)

Net income (loss) from discontinued operations

(130,904)

54,840

Net income (loss) from continuing operations

151,146

(81,321)

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

Depreciation, amortization and accretion

351,885

325,697

Bad debts expense

8,172

7,424

Stock-based compensation expense

27,174

18,335

Deferred income taxes, net

(66,190)

(20,978)

Equity in earnings of unconsolidated entities

(176,101)

(163,623)

Distributions from unconsolidated entities

215,599

168,701

Loss on impairment of intangible assets

48,579

137,337

(Gain) loss on asset disposals, net

16,847

13,141

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

(23,918)

(68,350)

(Gain) loss on license sales and exchanges, net

(6,123)

3,460

Other operating activities

29,617

4,576

Changes in assets and liabilities from operations

Accounts receivable

(24,189)

6,185

Inventory

(10)

(327)

Accounts payable

(9,830)

(56,066)

Customer deposits and deferred revenues

(70,569)

399

Accrued taxes

(19,837)

(5,105)

Other assets and liabilities

(113,968)

6,295

Net cash provided by operating activities - continuing operations

338,284

295,780

Net cash provided by operating activities - discontinued operations

251,605

850,093

Net cash provided by operating activities

589,889

1,145,873

Cash flows from investing activities

Cash paid for additions to property, plant and equipment

(390,529)

(365,446)

Cash paid for licenses

(4,175)

(19,198)

Cash received from divestitures

72,342

147,267

Other investing activities

4,067

1,449

Net cash used in investing activities - continuing operations

(318,295)

(235,928)

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

2,462,399

(518,572)

Net cash provided by (used in) investing activities

2,144,104

(754,500)

Cash flows from financing activities

Issuance of long-term debt

325,000

440,000

Repayment of long-term debt

(1,962,116)

(455,548)

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

(1,275)

(2,308)

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

(63,446)

(11,246)

Repurchase of TDS Common Shares

(108,129)

—

Repurchase of Array Common Shares

(21,360)

(54,091)

Dividends paid to TDS shareholders

(87,670)

(104,383)

Array dividends paid to noncontrolling public shareholders

(358,579)

—

Payment of debt issuance costs

(8,830)

(16,170)

Distributions to noncontrolling interests

(21,932)

(4,716)

Cash paid for software license agreements

(1,933)

(1,251)

Other financing activities

(16,258)

(1,115)

Net cash used in financing activities - continuing operations

(2,326,528)

(210,828)

Net cash used in financing activities - discontinued operations

(20,537)

(66,631)

Net cash used in financing activities

(2,347,065)

(277,459)

Net increase in cash, cash equivalents and restricted cash

386,928

113,914

Cash, cash equivalents and restricted cash

Beginning of period

383,222

269,308

End of period

$ 770,150

$ 383,222

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS

December 31,

2025

2024

(Dollars in thousands)

Current assets

Cash and cash equivalents

$ 765,952

$ 363,612

Accounts receivable, net

109,981

98,552

Inventory, net

4,062

4,052

Prepaid expenses

28,206

32,367

Income taxes receivable

1,292

2,487

Current assets of discontinued operations

—

1,163,032

Other current assets

13,976

31,088

Total current assets

923,469

1,695,190

Non-current assets held for sale

1,598,131

Non-current assets of discontinued operations

—

4,499,561

Licenses

1,642,972

3,289,648

Other intangible assets, net

131,673

160,804

Investments in unconsolidated entities

461,922

500,471

Property, plant and equipment, net

2,965,455

2,876,214

Operating lease right-of-use assets

515,081

520,902

Other assets and deferred charges

159,600

139,430

Total assets

$ 8,398,303

$ 13,682,232

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY

December 31,

2025

2024

(Dollars in thousands, except per share amounts)

Current liabilities

Current portion of long-term debt

$ 5,274

$ 31,131

Accounts payable

115,822

74,866

Customer deposits and deferred revenues

125,140

46,992

Accrued interest

2,836

8,999

Accrued taxes

46,721

36,561

Accrued compensation

56,774

147,061

Short-term operating lease liabilities

26,180

27,529

Current liabilities of discontinued operations

20,242

671,575

Other current liabilities

41,322

44,980

Total current liabilities

440,311

1,089,694

Non-current liabilities of discontinued operations

—

2,310,660

Deferred liabilities and credits

Deferred income tax liability, net

743,633

980,769

Long-term operating lease liabilities

549,617

540,904

Other deferred liabilities and credits

574,025

460,676

Long-term debt, net

823,364

2,415,686

Noncontrolling interests with redemption features

—

15,831

Total equity

5,267,353

5,868,012

Total liabilities and equity

$ 8,398,303

$ 13,682,232

Balance Sheet Highlights

(Unaudited)

December 31, 2025

TDS

Telecom

Array

TDS

Corporate

& Other

Intercompany

Eliminations

TDS

Consolidated

(Dollars in thousands)

Cash and cash equivalents

$ 144,968

$ 113,400

$ 655,894

$ (148,310)

$ 765,952

Licenses and other intangible assets

$ 131,826

$ 1,642,187

$ 632

$ —

$ 1,774,645

Investment in unconsolidated entities

3,947

412,608

55,868

(10,501)

461,922

$ 135,773

$ 2,054,795

$ 56,500

$ (10,501)

$ 2,236,567

Property, plant and equipment, net

$ 2,562,057

$ 388,999

$ 14,399

$ —

$ 2,965,455

Long-term debt, net:

Current portion

$ 160

$ 4,063

$ 1,051

$ —

$ 5,274

Non-current portion

2,887

670,258

150,219

—

823,364

$ 3,047

$ 674,321

$ 151,270

$ —

$ 828,638

TDS Telecom Highlights

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025 vs.

2024

2025

2024

2025 vs.

2024

(Dollars in thousands)

Operating revenues

Residential

Incumbent

$ 80,179

$ 86,164

(7) %

$ 332,347

$ 355,395

(6) %

Expansion

41,935

31,373

34 %

152,531

114,113

34 %

Cable

58,847

64,787

(9) %

245,100

270,444

(9) %

Total residential

180,961

182,324

(1) %

729,978

739,952

(1) %

Commercial

33,941

37,374

(9) %

137,258

147,564

(7) %

Wholesale

45,965

44,363

4 %

170,499

172,520

(1) %

Total service revenues

260,867

264,061

(1) %

1,037,735

1,060,036

(2) %

Equipment revenues

234

(62) %

623

821

(24) %

Total operating revenues

260,956

264,295

(1) %

1,038,358

1,060,857

(2) %

Cost of operations (excluding Depreciation,

amortization and accretion reported below)

99,351

103,047

(4) %

399,616

399,815

—

Cost of equipment and products

193

208

(8) %

754

723

4 %

Selling, general and administrative expenses

80,397

83,846

(4) %

325,302

319,979

2 %

Depreciation, amortization and accretion

76,720

71,713

7 %

300,196

270,660

11 %

Loss on impairment of intangible assets

900

1,103

(18) %

900

1,103

(18) %

(Gain) loss on asset disposals, net

7,163

4,032

78 %

15,054

12,376

22 %

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

(17,886)

(49,108)

64 %

(23,121)

(49,108)

53 %

Total operating expenses

246,838

214,841

15 %

1,018,701

955,548

7 %

Operating income

$ 14,118

$ 49,454

(71) %

$ 19,657

$ 105,309

(81) %

Array Digital Infrastructure, Inc. Highlights

(Unaudited)

Three Months Ended

December 31,

Year Ended

December 31,

Array

2025

2024

2025

vs. 2024

2025

2024

2025

vs. 2024

(Dollars in thousands)

Operating revenues

Site rental

$ 54,990

$ 26,019

N/M

$ 154,654

$ 102,610

51 %

Services

5,338

N/M

8,307

323

N/M

Total operating revenues

60,328

26,089

N/M

162,961

102,933

58 %

Operating expenses

Cost of operations (excluding Depreciation,

amortization and accretion reported below)

22,823

20,174

13 %

79,485

72,997

9 %

Selling, general and administrative

15,381

23,559

(35) %

84,444

102,556

(18) %

Depreciation, amortization and accretion

12,402

12,156

2 %

48,262

47,212

2 %

Loss on impairment of licenses

—

N/M

47,679

136,234

(65) %

(Gain) loss on asset disposals, net

1,125

219

N/M

1,746

809

N/M

(Gain) loss on license sales and exchanges, net

—

(900)

N/M

(6,123)

3,460

N/M

Total operating expenses

51,731

55,208

(6) %

255,493

363,268

(30) %

Operating income (loss)

$ 8,597

$ (29,119)

N/M

$ (92,532)

$ (260,335)

64 %

N/M - Percentage change not meaningful

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)

Free Cash Flow

Year Ended

December 31,

TDS Consolidated

2025

2024

(Dollars in thousands)

Cash flows from operating activities - continuing operations (GAAP)

$ 338,284

$ 295,780

Cash paid for additions to property, plant and equipment

(390,529)

(365,446)

Cash paid for software license agreements

(1,933)

(1,251)

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

$ (54,178)

$ (70,917)

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)

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures,

Net income (loss) and Income (loss) before income taxes.

Three Months Ended

December 31,

Year Ended

December 31,

TDS Telecom

2025

2024

2025

2024

(Dollars in thousands)

Net income (GAAP)

$ 8,187

$ 34,008

$ 27,516

$ 84,901

Add back or deduct:

Income tax expense (benefit)

9,595

20,301

10,157

35,040

Income before income taxes (GAAP)

17,782

54,309

37,673

119,941

Add back or deduct:

Interest expense

(2,487)

(1,676)

(6,654)

(5,197)

Depreciation, amortization and accretion expense

76,720

71,713

300,196

270,660

EBITDA (Non-GAAP)

92,015

124,346

331,215

385,404

Add back or deduct:

Expenses related to strategic alternatives review

2,711

—

6,207

—

Loss on impairment of intangible assets

900

1,103

900

1,103

(Gain) loss on asset disposals, net

7,163

4,032

15,054

12,376

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

(17,886)

(49,108)

(23,121)

(49,108)

Adjusted EBITDA (Non-GAAP)

84,903

80,373

330,255

349,775

Deduct:

Equity in earnings of unconsolidated entities

—

(8)

(7)

Interest and dividend income

1,522

1,892

6,440

5,483

Other, net

(345)

1,295

4,918

3,959

Adjusted OIBDA (Non-GAAP)

$ 83,726

$ 77,194

$ 318,893

$ 340,340

Three Months Ended

December 31,

Year Ended

December 31,

Array

2025

2024

2025

2024

(Dollars in thousands)

Net income (loss) from continuing operations (GAAP)

$ 41,764

$ 11,832

$ 172,267

$ (80,464)

Add back or deduct:

Income tax expense (benefit)

23,332

(3,656)

(31,148)

(19,256)

Income (loss) before income taxes (GAAP)

65,096

8,176

141,119

(99,720)

Add back:

Interest expense

11,989

3,203

28,222

12,405

Depreciation, amortization and accretion expense

12,402

12,156

48,262

47,212

EBITDA (Non-GAAP)

89,487

23,535

217,603

(40,103)

Add back or deduct:

Expenses related to strategic alternatives review

1,607

2,444

21,521

Loss on impairment of licenses

—

47,679

136,234

(Gain) loss on asset disposals, net

1,125

219

1,746

809

(Gain) loss on license sales and exchanges, net

—

(900)

(6,123)

3,460

Short-term imputed spectrum lease income

(38,619)

—

(69,033)

—

Adjusted EBITDA (Non-GAAP)

52,088

24,461

194,316

121,921

Deduct:

Equity in earnings of unconsolidated entities

26,301

37,919

173,754

161,364

Interest and dividend income

3,649

2,579

18,917

11,656

Other, net

(81)

—

169

—

Adjusted OIBDA (Non-GAAP)

$ 22,219

$ (16,037)

$ 1,476

$ (51,099)

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. Array modified its AFCF metric for the three months ended December 31, 2025 to adjust for cash taxes paid in the quarter, which management believes best reflects cash generated from operations and investments. Under the modified presentation, the comparative calculation of AFCF for the three months ended September 30, 2025 would have been $63.4 million.

Three Months Ended

December 31, 2025

(Dollars in thousands)

Net income from continuing operations - Array (GAAP)

$ 41,764

Add back or deduct:

Income tax expense

23,332

Cash paid for income taxes

(191)

Stock-based compensation expense

259

Short-term imputed spectrum lease income

(38,619)

Amortization of deferred debt charges

946

Equity in earnings of unconsolidated entities

(26,301)

Distributions from unconsolidated entities

65,867

(Gain) loss on asset disposals, net

1,125

Depreciation, amortization and accretion

12,402

Expenses related to strategic alternatives review

Straight line and other non-cash revenue adjustments

(5,190)

Straight line expense adjustment

1,398

Maintenance and other capital expenditures

(2,025)

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

$ 74,862

SOURCE Telephone and Data Systems, Inc.