Form 8-K

8-K — TELEPHONE & DATA SYSTEMS INC /DE/

Accession: 0001051512-26-000062

Filed: 2026-08-07

Period: 2026-08-07

CIK: 0001051512

SIC: 4813 (TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE))

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — tds-20260807.htm (Primary)

EX-99.1 (tdsq220268kex991.htm)

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XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: tds-20260807.htm · Sequence: 1

tds-20260807

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 7, 2026

TELEPHONE AND DATA SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Delaware 001-14157 36-2669023

(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

30 North LaSalle Street, Suite 4000, Chicago, Illinois 60602

(Address of principal executive offices and zip code)

Registrant's telephone number, including area code: (312) 630-1900

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol Name of each exchange on which registered

Common Shares, $.01 par value TDS New York Stock Exchange

Depositary Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par value TDSPrU New York Stock Exchange

Depositary Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par value TDSPrV New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐

Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02. Results of Operations and Financial Condition

On August 7, 2026, Telephone and Data Systems, Inc. (TDS) issued a news release announcing its results of operations for the period ended June 30, 2026. A copy of the news release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information in this Item 2.02 of Form 8-K is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor will any such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d) The following exhibits are being filed herewith:

Exhibit Number Description of Exhibits

99.1

Earnings Press Release dated August 7, 2026

104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TELEPHONE AND DATA SYSTEMS, INC.

Date: August 7, 2026 By: /s/ Vicki L. Villacrez

Vicki L. Villacrez

Executive Vice President and Chief Financial Officer

EX-99.1

Filename: tdsq220268kex991.htm · Sequence: 2

Document

Exhibit 99.1

NEWS RELEASE

As previously announced, TDS will hold a teleconference on August 7, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

TDS reports second quarter 2026 results

TDS Telecom and Array both update guidance for 2026

CHICAGO (August 7, 2026) — Telephone and Data Systems, Inc. (NYSE: TDS) reported second quarter 2026 operating results.

“I am pleased with the progress our teams continue to make in executing our strategic objectives,” said Walter Carlson, TDS President and CEO. “During the quarter, TDS Telecom expanded its marketable fiber service footprint by approximately 66,000 addresses and increased its fiber service address guidance for the year. Array delivered another quarter of sequential tower tenancy growth, highlighting the value of our assets. In addition, Array completed the previously announced spectrum sale to Verizon, now having completed transactions to monetize virtually all of its spectrum outside of the C-Band.”

Highlights*

TDS Telecom

•Executing on fiber broadband strategy

◦Delivered approximately 66,000 marketable fiber service addresses

◦Grew fiber connections —15,100 residential fiber net additions

•Service revenue down 6%

◦Residential fiber revenue growth of 13% more than offset by impacts of divestitures and continued legacy declines

•Updated 2026 Guidance

◦Current service address delivery momentum drives increase in 2026 guidance to 250,000 - 300,000 marketable fiber service addresses, increased capital expenditure guidance to $625 million - $675 million

◦Updated 2026 Financial guidance

▪Revenues of $1,000 million to $1,025 million

▪Adjusted EBITDA of $310 million to $330 million

▪Adjusted OIBDA of $300 million to $320 million

Array

•Optimizing tower operations

◦Site rental revenues grew 95% year over year

◦Delivered consecutive quarter over quarter tower tenancy growth

•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

◦Closed on sale of certain 600 MHz wireless spectrum licenses for total proceeds of $86.4 million on May 12, 2026

◦Closed on sale of certain cellular and other spectrum licenses for total proceeds of $1 billion on June 1, 2026

◦Issued special dividend of $11 per common share on June 25, 2026

•Updated 2026 Guidance

◦Narrowed Revenue range to $205 million - $215 million on higher interim site revenue

◦Increased Adjusted EBITDA range to $220 million - $235 million

◦Capital expenditures range remains unchanged at $25 million - $35 million

*Comparisons are 2Q’25 to 2Q’26 unless otherwise noted

TDS reported total operating revenues from continuing operations of $309.3 million for the second quarter of 2026, versus $298.5 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 $260.6 million and $2.24, respectively, for the second quarter of 2026 compared to $(6.0) million and $(0.05), respectively, in the same period one year ago.

Recent Development

On May 7, 2026, TDS delivered to the Array Board of Directors a letter setting forth a non-binding proposal to acquire all of the outstanding Array Common Shares that are not owned by TDS (the “Array Proposal”). 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 August 7, 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 $1,000-$1,025

Adjusted OIBDA1 (Non-GAAP)

$300-$340 $300-$320

Adjusted EBITDA1 (Non-GAAP)

$310-$350 $310-$330

Capital expenditures $550-$600 $625-$675

Array Previous Current

(Dollars in millions)

Total operating revenues $200-$215 $205-$215

Adjusted OIBDA1 (Non-GAAP)

$50-$65 $60-$75

Adjusted EBITDA1 (Non-GAAP)

$200-$215 $220-$235

Capital expenditures $25-$35 Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income (loss) before income taxes. In providing 2026 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.

2026 Estimated Results

TDS

Telecom Array

(Dollars in millions)

Net income from continuing operations (GAAP) N/A N/A

Add back:

Income tax expense N/A N/A

Income (loss) before income taxes (GAAP) ($15)-$5 $775-$790

Add back:

Interest expense — 45

Depreciation, amortization and accretion expense 325 50

EBITDA (Non-GAAP)1

$310-$330 $870-$885

Add back or deduct:

(Gain) loss on license sales and exchanges, net — (585)

Short-term imputed spectrum lease income — (65)

Adjusted EBITDA (Non-GAAP)1

$310-$330 $220-$235

Deduct:

Equity in earnings of unconsolidated entities — 145

Interest and dividend income 5 15

Other, net 5 —

Adjusted OIBDA (Non-GAAP)1

$300-$320 $60-$75

Actual Results

Six Months Ended

June 30, 2026 Year Ended

December 31, 2025

TDS

Telecom Array TDS

Telecom Array

(Dollars in millions)

Net income (loss) from continuing operations (GAAP) $ (4) $ 517 $ 28 $ 172

Add back:

Income tax expense (benefit) (4) 168 10 (31)

Income (loss) before income taxes (GAAP) $ (8) $ 686 $ 38 $ 141

Add back:

Interest expense — 18 (7) 28

Depreciation, amortization and accretion expense 146 27 300 48

EBITDA (Non-GAAP)1

$ 138 $ 731 $ 331 $ 218

Add back or deduct:

Expenses related to strategic alternatives review — 8 6 2

(Gain) loss on impairment of intangible assets — — 1 48

(Gain) loss on asset disposals, net 6 5 15 2

(Gain) loss on sale of business and other exit costs, net 2 — (23) —

(Gain) loss on license sales and exchanges, net (2) (566) — (6)

Short-term imputed spectrum lease income — (58) — (69)

Adjusted EBITDA (Non-GAAP)1

$ 144 $ 119 $ 330 $ 194

Deduct:

Equity in earnings of unconsolidated entities — 75 — 174

Interest and dividend income 2 11 6 19

Other, net 3 — 5 —

Adjusted OIBDA (Non-GAAP)1

$ 140 $ 33 $ 319 $ 1

Numbers may not foot due to rounding.

1EBITDA, 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 August 7, 2026 at 9:00 a.m. CT.

▪Access the live call on the Events & Presentations page of investors.tdsinc.com or at

https://events.q4inc.com/attendee/198119429

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.

Contacts

John Toomey, Treasurer and Vice President - Corporate Relations

john.toomey@tdsinc.com

Karen Samples, Corporate Finance and Investor Relations Senior Manager

karen.samples@tdsinc.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release about Telephone and Data Systems, Inc., including its subsidiaries Array and TDS Telecom, except historical and factual information, represents forward-looking statements. This includes all statements about 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 shareholders and whether the process could result in adverse effects on either business; the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; whether the additional spectrum license sales to T-Mobile are consummated; whether Array can monetize its remaining spectrum assets; intense competition, including fixed wireless and satellite; economic and business risks associated with fixed rate annual escalators on colocation revenue contracts; Array's reliance on a small number of tenants for a substantial portion of its revenue; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; TDS' inability to protect rights to the land under its towers; changes in demand, consumer preferences and perceptions, price competition, or cost; advances or changes in technology; impacts of costs, integration issues or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS’ businesses; the ability of 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 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025

Residential connections

Broadband

Incumbent Fiber 134,300 130,200 127,300 123,500 121,200

Incumbent Copper 77,700 84,200 91,200 102,000 106,500

Expansion Fiber 179,600 168,500 160,600 150,700 141,800

Cable 176,100 179,100 182,800 186,100 188,200

Total Broadband 567,700 561,900 561,900 562,400 557,700

Video 105,600 107,200 111,500 114,300 116,500

Voice 209,300 216,900 228,900 242,200 248,700

Wireless 8,100 5,300 3,300 2,200 1,600

Total Residential connections 890,700 891,400 905,600 921,100 924,500

Commercial connections 163,600 166,500 173,900 180,300 184,300

Total connections1

1,054,200 1,058,000 1,079,500 1,101,300 1,108,800

Total residential fiber net adds 15,100 10,900 15,100 11,200 10,300

Total residential broadband net adds 5,700 100 4,500 4,600 3,900

Residential fiber churn2

1.2 % 1.3 % 1.2 % 1.5 % 1.1 %

Total residential broadband churn 1.7 % 1.8 % 1.6 % 1.7 % 1.5 %

Residential revenue per connection3

$ 66.50 $ 66.41 $ 65.95 $ 65.66 $ 65.85

Capital expenditures (thousands) $ 179,197 $ 125,963 $ 154,904 $ 102,429 $ 90,187

Numbers may not foot due to rounding.

1Q2 2025 total connections include 12,900 connections, including 5,300 residential broadband connections, that were part of subsequent divestitures.

2Residential 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.

3Total 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 6/30/2026 3/31/2026 12/31/2025 9/30/2025

Capital expenditures from continuing operations (thousands) $ 3,895 $ 8,645 $ 12,933 $ 7,927

Owned towers 4,456 4,452 4,450 4,449

Number of colocations1

4,362 4,290 4,572 4,517

Tower tenancy rate2

0.98 0.96 1.03 1.02

1Represents 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 fulfilling its lease commitments.

2Calculated 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 fulfilling its lease commitments. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94 for December 31, 2025 and September 30, 2025, respectively.

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 2026

vs. 2025 2026 2025 2026

vs. 2025

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

Operating revenues

TDS Telecom $ 248,406 $ 264,931 (6) % $ 497,978 $ 522,291 (5) %

Array 54,070 28,529 90 % 106,082 55,513 91 %

All Other1

6,805 5,081 34 % 14,671 11,170 31 %

Total operating revenues 309,281 298,541 4 % 618,731 588,974 5 %

Operating expenses

TDS Telecom 256,684 250,959 2 % 509,988 508,460 —

Array (345,193) 46,719 N/M (453,966) 103,329 N/M

All Other1

24,578 13,170 87 % 45,679 23,426 95 %

Total operating expenses (63,931) 310,848 N/M 101,701 635,215 (84) %

Operating income (loss)

TDS Telecom (8,278) 13,972 N/M (12,010) 13,831 N/M

Array 399,263 (18,190) N/M 560,048 (47,816) N/M

All Other1

(17,773) (8,089) N/M (31,008) (12,256) N/M

Total operating income (loss) 373,212 (12,307) N/M 517,030 (46,241) N/M

Other income (expense)

Equity in earnings of unconsolidated entities 37,126 42,952 (14) % 79,028 79,471 (1) %

Interest and dividend income 19,631 6,110 N/M 33,417 12,381 N/M

Interest expense (11,388) (29,166) 61 % (16,709) (53,074) 69 %

Short-term imputed spectrum lease income 23,770 — N/M 57,970 — N/M

Other, net 5,346 2,395 N/M 10,796 5,117 N/M

Total other income 74,485 22,291 N/M 164,502 43,895 N/M

Income (loss) before income taxes 447,697 9,984 N/M 681,532 (2,346) N/M

Income tax expense (benefit) 106,410 (4,224) N/M 160,819 (12,347) N/M

Net income from continuing operations 341,287 14,208 N/M 520,713 10,001 N/M

Less: Net income from continuing operations attributable to noncontrolling interests, net of tax 63,332 2,943 N/M 96,143 4,667 N/M

Net income from continuing operations attributable to TDS shareholders 277,955 11,265 N/M 424,570 5,334 N/M

Net income from discontinued operations 25,071 3,578 N/M 22,683 19,749 15 %

Less: Net income from discontinued operations attributable to noncontrolling interests, net of tax 4,660 3,272 42 % 4,292 6,041 (29) %

Net income from discontinued operations attributable to TDS shareholders 20,411 306 N/M 18,391 13,708 34 %

Net income 366,358 17,786 N/M 543,396 29,750 N/M

Less: Net income attributable to noncontrolling interests, net of tax 67,992 6,215 N/M 100,435 10,708 N/M

Net income attributable to TDS shareholders 298,366 11,571 N/M 442,961 19,042 N/M

TDS Preferred Share dividends 17,306 17,306 — 34,613 34,613 —

Net income (loss) attributable to TDS common shareholders $ 281,060 $ (5,735) N/M $ 408,348 $ (15,571) N/M

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 2026

vs. 2025 2026 2025 2026

vs. 2025

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

Basic weighted average shares outstanding 114,500 115,229 (1) % 114,193 114,908 (1) %

Basic earnings (loss) per share from continuing operations attributable to TDS common shareholders $ 2.28 $ (0.05) N/M $ 3.42 $ (0.25) N/M

Basic earnings from discontinued operations attributable to TDS common shareholders $ 0.17 $ — N/M $ 0.16 $ 0.11 35 %

Basic earnings (loss) per share attributable to TDS common shareholders $ 2.45 $ (0.05) N/M $ 3.58 $ (0.14) N/M

Diluted weighted average shares outstanding 116,291 115,229 1 % 116,465 114,908 1 %

Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders $ 2.24 $ (0.05) N/M $ 3.35 $ (0.26) N/M

Diluted earnings from discontinued operations attributable to TDS common shareholders $ 0.18 $ — N/M $ 0.15 $ 0.12 32 %

Diluted earnings (loss) per share attributable to TDS common shareholders $ 2.42 $ (0.05) N/M $ 3.50 $ (0.14) N/M

N/M - Percentage change not meaningful.

1Consists of corporate and other operations and intercompany eliminations.

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Six Months Ended

June 30,

2026 2025

(Dollars in thousands)

Cash flows from operating activities

Net income $ 543,396 $ 29,750

Net income from discontinued operations 22,683 19,749

Net income from continuing operations 520,713 10,001

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

Depreciation, amortization and accretion 174,720 170,349

Bad debts expense 5,122 2,994

Stock-based compensation expense 8,428 17,502

Deferred income taxes, net (130,935) (14,312)

Equity in earnings of unconsolidated entities (79,028) (79,471)

Distributions from unconsolidated entities 66,553 87,938

(Gain) loss on asset disposals, net 10,579 7,795

(Gain) loss on sale of business and other exit costs, net 1,562 (8,877)

(Gain) loss on license sales and exchanges, net (553,158) (4,800)

Other operating activities 487 2,619

Changes in assets and liabilities from operations

Accounts receivable (3,896) (17,607)

Inventory 287 212

Accounts payable 6,732 415

Customer deposits and deferred revenues (57,165) (724)

Accrued taxes 232,212 (1,911)

Accrued interest (563) (604)

Other assets and liabilities (51,585) (45,560)

Net cash provided by operating activities - continuing operations 151,065 125,959

Net cash provided by (used in) operating activities - discontinued operations (28,037) 481,307

Net cash provided by operating activities 123,028 607,266

Cash flows from investing activities

Cash paid for additions to property, plant and equipment (317,919) (150,482)

Cash paid for licenses — (4,145)

Cash received from divestitures 2,188,235 24,162

Other investing activities 1,925 2,512

Net cash provided by (used in) investing activities - continuing operations 1,872,241 (127,953)

Net cash used in investing activities - discontinued operations — (135,561)

Net cash provided by (used in) investing activities 1,872,241 (263,514)

Cash flows from financing activities

Issuance of long-term debt 1,300 —

Repayment of long-term debt (150,729) (17,076)

Tax withholdings, net of cash receipts, for TDS stock-based compensation awards (34,219) (24,483)

Tax withholdings, net of cash receipts, for Array stock-based compensation awards (2,068) (35,250)

Repurchase of Array Common Shares — (21,360)

Dividends paid to TDS shareholders (43,771) (43,830)

Array dividends paid to noncontrolling public shareholders (332,480) —

Payment of debt issuance costs — (2,467)

Distributions to noncontrolling interests (3,540) (2,391)

Cash paid for software license agreements (1,180) (839)

Payments to acquire additional interest in subsidiaries (593) —

Other financing activities 73 (314)

Net cash used in financing activities - continuing operations (567,207) (148,010)

Net cash used in financing activities - discontinued operations — (19,702)

Net cash used in financing activities $ (567,207) $ (167,712)

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Six Months Ended

June 30,

2026 2025

(Dollars in thousands)

Net increase in cash, cash equivalents and restricted cash $ 1,428,062 $ 176,040

Cash, cash equivalents and restricted cash

Beginning of period 770,150 383,222

End of period $ 2,198,212 $ 559,262

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS

June 30, 2026 December 31, 2025

(Dollars in thousands)

Current assets

Cash and cash equivalents $ 2,194,014 $ 765,952

Accounts receivable, net 105,830 109,981

Inventory, net 3,775 4,062

Prepaid expenses 33,697 28,206

Income taxes receivable — 1,292

Other current assets 13,314 13,976

Total current assets 2,350,630 923,469

Non-current assets held for sale 47,475 1,598,131

Licenses 1,595,349 1,642,972

Other intangible assets, net 117,108 131,673

Investments in unconsolidated entities 475,077 461,922

Property, plant and equipment, net

3,123,477 2,965,455

Operating lease right-of-use assets 506,665 515,081

Other assets and deferred charges 167,559 159,600

Total assets $ 8,383,340 $ 8,398,303

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY

June 30, 2026 December 31, 2025

(Dollars in thousands, except per share amounts)

Current liabilities

Current portion of long-term debt $ 9,444 $ 5,274

Accounts payable 130,314 115,822

Customer deposits and deferred revenues 66,280 125,140

Accrued interest 2,273 2,836

Accrued taxes 260,113 46,721

Accrued compensation 40,335 56,774

Short-term operating lease liabilities 27,634 26,180

Current liabilities of discontinued operations 24,856 20,242

Other current liabilities 54,387 41,322

Total current liabilities 615,636 440,311

Deferred liabilities and credits

Deferred income tax liability, net 600,947 743,633

Long-term operating lease liabilities 541,268 549,617

Other deferred liabilities and credits 552,629 574,025

Long-term debt, net 670,646 823,364

Total equity 5,402,214 5,267,353

Total liabilities and equity $ 8,383,340 $ 8,398,303

Balance Sheet Highlights

(Unaudited)

June 30, 2026

TDS TDS Corporate Intercompany TDS

Telecom Array & Other Eliminations Consolidated

(Dollars in thousands)

Cash and cash equivalents $ 222,844 $ 416,436 $ 1,780,879 $ (226,145) $ 2,194,014

Licenses and other intangible assets $ 117,260 $ 1,594,649 $ 548 $ — $ 1,712,457

Investment in unconsolidated entities 3,947 421,607 60,838 (11,315) 475,077

$ 121,207 $ 2,016,256 $ 61,386 $ (11,315) $ 2,187,534

Property, plant and equipment, net $ 2,733,837 $ 374,700 $ 14,940 $ — $ 3,123,477

Long-term debt, net:

Current portion $ 164 $ 8,125 $ 1,155 $ — $ 9,444

Non-current portion 2,765 666,757 1,124 — 670,646

$ 2,929 $ 674,882 $ 2,279 $ — $ 680,090

TDS Telecom Highlights

(Unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 2026

vs. 2025 2026 2025 2026

vs. 2025

(Dollars in thousands)

Operating revenues

Residential

Incumbent $ 75,868 $ 84,665 (10) % $ 153,160 $ 170,259 (10) %

Expansion 45,656 36,580 25 % 89,218 70,986 26 %

Cable 56,240 62,174 (10) % 113,982 126,022 (10) %

Total residential 177,764 183,419 (3) % 356,360 367,267 (3) %

Commercial 32,776 34,617 (5) % 65,571 69,251 (5) %

Wholesale 37,817 46,704 (19) % 75,934 85,381 (11) %

Total service revenues 248,357 264,740 (6) % 497,865 521,899 (5) %

Equipment revenues 49 191 (74) % 113 392 (71) %

Total operating revenues 248,406 264,931 (6) % 497,978 522,291 (5) %

Cost of operations (excluding Depreciation, amortization and accretion reported below) 100,583 97,049 4 % 197,765 198,013 —

Cost of equipment and products 118 116 2 % 229 380 (40) %

Selling, general and administrative 79,038 82,555 (4) % 160,098 165,702 (3) %

Depreciation, amortization and accretion 73,585 73,137 1 % 146,142 144,577 1 %

(Gain) loss on asset disposals, net 4,960 6,206 (20) % 5,792 7,868 (26) %

(Gain) loss on sale of business and other exit costs, net — (8,104) N/M 1,562 (8,080) N/M

(Gain) loss on license sales and exchanges, net (1,600) — N/M (1,600) — N/M

Total operating expenses 256,684 250,959 2 % 509,988 508,460 —

Operating income (loss) $ (8,278) $ 13,972 N/M $ (12,010) $ 13,831 N/M

N/M - Percentage change not meaningful

Array Digital Infrastructure, Inc. Highlights

(Unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2026 2025 2026

vs. 2025 2026 2025 2026

vs. 2025

(Dollars in thousands)

Operating revenues

Site rental $ 53,175 $ 27,230 95 % $ 104,199 $ 53,825 94 %

Services 895 1,299 (31) % 1,883 1,688 12 %

Total operating revenues 54,070 28,529 90 % 106,082 55,513 91 %

Operating expenses

Cost of operations (excluding Depreciation, amortization and accretion reported below) 23,497 19,396 21 % 45,106 35,687 26 %

Selling, general and administrative 22,906 19,337 18 % 35,651 48,537 (27) %

Depreciation, amortization and accretion 14,428 11,999 20 % 27,032 23,992 13 %

(Gain) loss on asset disposals, net 3,809 (313) N/M 4,713 (87) N/M

(Gain) loss on license sales and exchanges, net (409,833) (3,700) N/M (566,468) (4,800) N/M

Total operating expenses (345,193) 46,719 N/M (453,966) 103,329 N/M

Operating income (loss) $ 399,263 $ (18,190) N/M $ 560,048 $ (47,816) N/M

N/M - Percentage change not meaningful

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)

Free Cash Flow

Six Months Ended

June 30,

TDS CONSOLIDATED 2026 2025

(Dollars in thousands)

Cash flows from operating activities - continuing operations (GAAP) $ 151,065 $ 125,959

Cash paid for additions to property, plant and equipment (317,919) (150,482)

Cash paid for software license agreements (1,180) (839)

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

$ (168,034) $ (25,362)

1Free 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

June 30, Six Months Ended

June 30,

TDS Telecom 2026 2025 2026 2025

(Dollars in thousands)

Net income (loss) (GAAP) $ (4,993) $ 16,084 $ (3,946) $ 19,611

Add back:

Income tax expense (benefit) (1,909) 2,174 (3,998) 3,309

Income (loss) before income taxes (GAAP) (6,902) 18,258 (7,944) 22,920

Add back:

Interest expense 332 (960) 175 (2,424)

Depreciation, amortization and accretion 73,585 73,137 146,142 144,577

EBITDA (Non-GAAP) 67,015 90,435 138,373 165,073

Add back or deduct:

Expenses related to strategic alternatives review — — 87 —

(Gain) loss on asset disposals, net 4,960 6,206 5,792 7,868

(Gain) loss on sale of business and other exit costs, net — (8,104) 1,562 (8,080)

(Gain) loss on license sales and exchanges, net (1,600) — (1,600) —

Adjusted EBITDA (Non-GAAP) 70,375 88,537 144,214 164,861

Deduct:

Interest and dividend income 463 1,693 1,608 3,094

Other, net 1,245 1,633 2,633 3,571

Adjusted OIBDA (Non-GAAP) $ 68,667 $ 85,211 $ 139,973 $ 158,196

Three Months Ended

June 30, Six Months Ended

June 30,

Array 2026 2025 2026 2025

(Dollars in thousands)

Net income from continuing operations (GAAP) $ 337,447 $ 15,099 $ 517,472 $ 20,583

Add back:

Income tax expense 115,870 8,415 168,268 8,222

Income before income taxes (GAAP) 453,317 23,514 685,740 28,805

Add back:

Interest expense 10,860 3,711 18,040 7,378

Depreciation, amortization and accretion 14,428 11,999 27,032 23,992

EBITDA (Non-GAAP) 478,605 39,224 730,812 60,175

Add back or deduct:

Expenses related to strategic alternatives review 7,391 715 7,578 1,860

(Gain) loss on asset disposals, net 3,809 (313) 4,713 (87)

(Gain) loss on license sales and exchanges, net (409,833) (3,700) (566,468) (4,800)

Short-term imputed spectrum lease income (23,770) — (57,970) —

Adjusted EBITDA (Non-GAAP) 56,202 35,926 118,665 57,148

Deduct:

Equity in earnings of unconsolidated entities 34,726 41,714 75,135 77,641

Interest and dividend income 6,431 3,701 10,653 6,358

Other, net (13) — (26) —

Adjusted OIBDA (Non-GAAP) $ 15,058 $ (9,489) $ 32,903 $ (26,851)

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.

Six Months Ended June 30, 2026

(Dollars in thousands)

Net income from continuing operations - Array (GAAP) $ 517,472

Add back or deduct:

Income tax expense 168,268

Cash paid for income taxes (78,623)

Stock-based compensation expense 540

Short-term imputed spectrum lease income (57,970)

Amortization of deferred debt charges 655

Equity in earnings of unconsolidated entities (75,135)

Distributions from unconsolidated entities 66,553

(Gain) loss on license sales and exchanges, net (566,468)

(Gain) loss on asset disposals, net 4,713

Depreciation, amortization and accretion 27,032

Expenses related to strategic alternatives review 7,578

Straight line and other non-cash revenue adjustments (8,310)

Straight line expense adjustment 2,811

Maintenance and other capital expenditures (2,511)

Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP) $ 6,605

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