TDS reports third quarter 2025 results

Announces new $500 million share repurchase authorization

CHICAGO, Nov. 7, 2025 /PRNewswire/ --

As previously announced, TDS will hold a teleconference on November 7, 2025, 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 total operating revenues from continuing operations of $308.5 million for the third quarter of 2025, versus $327.5 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share from continuing operations were $40.2 million and $0.33, respectively, for the third quarter of 2025 compared to $(100.4) million and $(0.88), respectively, in the same period one year ago.

Recent Highlights*

TDS

TDS Telecom

Array

*Comparisons are 3Q'24 to 3Q'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 $34 million in Q3 2024.

"With a strong portfolio and increased financial flexibility, we see tremendous opportunities ahead for the TDS enterprise," said Walter Carlson, TDS President and CEO. "We crossed the 1 million fiber passings milestone at TDS Telecom in the quarter and are continuing to execute on our robust fiber strategy through ongoing fiber expansion and E-ACAM programs.

"Now that we have Array established as a standalone tower company, we are ready to announce its next step in leadership, selecting Anthony Carlson to be Array's President and CEO. Anthony's substantial and increasing responsibilities at UScellular and TDS Telecom over the past six years provide him with the right foundation to lead Array's growing tower business and provide strategic vision to its operations.

"We are extremely grateful to Doug Chambers for his nearly two decades of contributions, most recently overseeing the successful launch of Array as a new tower business. We wish Doug great success in his new endeavors.

"Further, the TDS Board adopted a $500 million share repurchase program as part of our overall capital allocation plan. The timing will be determined at the Company's discretion and dependent upon successful closings of the announced spectrum transactions. This authorization reflects the Board's confidence in the Company's long-term strategy and demonstrates our balanced approach to capital allocation."

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 November 7, 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.

2025 Estimated Results

TDS Telecom

Current

(Dollars in millions)

Total operating revenues

$1,030-$1,050

Unchanged

Adjusted OIBDA 1 (Non-GAAP)

$310-$340

Unchanged

Adjusted EBITDA 1 (Non-GAAP)

$320-$350

Unchanged

Capital 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

Results

Actual Results

TDS Telecom

Nine Months Ended

September 30, 2025

Year Ended

December 31, 2024

(Estimated Results in millions; Actual Results in thousands)

Net income (GAAP)

N/A

$ 19,329

$ 84,901

Add back:

Income tax expense

N/A

561

35,040

Income before income taxes (GAAP)

$20-$50

$ 19,890

$ 119,941

Add back:

Interest expense

—

(4,168)

(5,197)

Depreciation, amortization and accretion expense

300

223,478

270,660

EBITDA (Non-GAAP) 1

$320-$350

$ 239,200

$ 385,404

Add back or deduct:

Expenses related to strategic alternatives review

—

3,497

—

Loss on impairment of intangible assets

—

1,103

(Gain) loss on asset disposals, net

—

7,890

12,376

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

—

(5,235)

(49,108)

Adjusted EBITDA (Non-GAAP) 1

$320-$350

$ 245,352

$ 349,775

Deduct:

Equity in earnings of unconsolidated entities

—

(7)

Interest and dividend income

4,918

5,483

Other, net

5,262

3,959

Adjusted OIBDA (Non-GAAP) 1

$310-$340

$ 235,168

$ 340,340

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.

Stock Repurchase

During the third quarter, TDS repurchased 1,077,564 Common Shares for $40.7 million. In addition, the TDS Board authorized a new share repurchase program under which the Company may repurchase up to $500 million of its outstanding Common stock. This new repurchase program does not have an expiration and is additive to the existing share repurchase authorization.

Conference Call Information

TDS will hold a conference call on November 7, 2025 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; whether the additional spectrum license sales to T-Mobile and the previously announced spectrum license sales to Verizon and AT&T will be consummated and the impact of the ongoing government shutdown on timing of closing these transactions; whether Array can monetize its remaining spectrum assets; strategic decisions regarding the tower business; intense competition; high inflation may increase costs beyond what TDS can recover through price increases; 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; 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

TDS Telecom: www.tdstelecom.com

Array: investors.arrayinc.com

Array Digital Infrastructure, Inc.

Summary Operating Data (Unaudited)

Three Months Ended

September 30, 2025

Capital expenditures from continuing operations (thousands)

$ 7,927

Owned towers

4,449

Number of colocations 1

4,517

Tower tenancy rate 2

1.02

Represents instances where a third-party rents or leases space on a company-owned tower. 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. 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

9/30/2025

6/30/2025

3/31/2025

12/31/2024

9/30/2024

Residential connections

Broadband

Incumbent Fiber

123,500

121,200

119,700

118,500

115,900

Incumbent Copper

102,000

106,500

112,600

116,900

125,600

Expansion Fiber

150,700

141,800

133,200

126,100

115,300

Cable

186,100

188,200

190,200

191,500

195,900

Total Broadband

562,400

557,700

555,800

553,000

552,700

Video

114,300

116,500

118,700

121,000

122,100

Voice

242,200

248,700

256,900

261,600

271,300

Wireless

2,200

1,600

900

100

—

Total Residential connections

921,100

924,500

932,300

935,700

946,100

Commercial connections

180,300

184,300

187,600

190,500

197,200

Total connections 1

1,101,300

1,108,800

1,119,900

1,126,300

1,143,300

Total residential fiber net adds

11,200

10,300

8,300

13,600

10,400

Total residential broadband net adds

4,600

3,900

2,800

7,900

2,700

Residential fiber churn 2

1.5 %

1.1 %

0.9 %

1.0 %

1.3 %

Total residential broadband churn

1.7 %

1.5 %

1.3 %

1.4 %

1.7 %

Residential revenue per connection 3

$ 65.66

$ 65.85

$ 65.67

$ 64.72

$ 65.41

Capital expenditures (thousands)

$ 102,429

$ 90,187

$ 58,870

$ 81,743

$ 77,904

Numbers may not foot due to rounding.

Q3 2024 total connections include 22,600 connections that were part of subsequent divestitures.

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

September 30,

Nine Months Ended

September 30,

2025

2024

2025

vs. 2024

2025

2024

2025

vs. 2024

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

Operating revenues

TDS Telecom

$ 255,111

$ 262,662

(3) %

$ 777,403

$ 796,562

(2) %

Array

47,119

25,739

83 %

102,632

76,845

34 %

All Other 1

6,291

39,096

(84) %

17,460

128,223

(86) %

308,521

327,497

(6) %

897,495

1,001,630

(10) %

Operating expenses

TDS Telecom

Expenses excluding depreciation, amortization

and accretion

181,636

182,132

—

545,732

533,416

2 %

Depreciation, amortization and accretion

78,901

67,664

17 %

223,478

198,947

12 %

(Gain) loss on asset disposals, net

2,680

(99) %

7,890

8,344

(5) %

(Gain) loss on sale of business and other exit

costs, net

2,844

—

N/M

(5,235)

—

N/M

263,403

252,476

4 %

771,865

740,707

4 %

Array

Expenses excluding depreciation, amortization

and accretion

41,501

39,439

5 %

125,725

131,819

(5) %

Depreciation, amortization and accretion

11,868

12,237

(3) %

35,860

35,058

2 %

Loss on impairment of licenses

47,679

136,234

(65) %

47,679

136,234

(65) %

(Gain) loss on asset disposals, net

707

196

N/M

620

590

5 %

(Gain) loss on license sales and exchanges, net

(1,323)

(2,200)

40 %

(6,123)

4,360

N/M

100,432

185,906

(46) %

203,761

308,061

(34) %

All Other 1

Expenses excluding depreciation and

amortization

11,683

49,648

(76) %

34,110

165,894

(79) %

Depreciation and amortization

977

981

—

2,757

6,875

(60) %

(Gain) loss on asset disposals, net

—

(53)

99 %

(36)

N/M

(Gain) loss on sale of business and other exit

costs, net

—

(11,733)

N/M

(797)

(11,733)

93 %

12,660

38,843

(67) %

36,084

161,000

(78) %

Total operating expenses

376,495

477,225

(21) %

1,011,710

1,209,768

(16) %

Operating income (loss)

TDS Telecom

(8,292)

10,186

N/M

5,538

55,855

(90) %

Array

(53,313)

(160,167)

67 %

(101,129)

(231,216)

56 %

All Other 1

(6,369)

253

N/M

(18,624)

(32,777)

43 %

(67,974)

(149,728)

55 %

(114,215)

(208,138)

45 %

Other income (expense)

Equity in earnings of unconsolidated entities

69,838

43,415

61 %

149,309

125,117

19 %

Interest and dividend income

15,663

7,952

97 %

28,044

20,268

38 %

Interest expense

(47,278)

(32,694)

(45) %

(100,352)

(78,918)

(27) %

Short-term imputed spectrum lease income

30,413

—

N/M

30,413

—

N/M

Other, net

5,347

1,035

N/M

10,464

3,081

N/M

Total other expense

73,983

19,708

N/M

117,878

69,548

69 %

Income (loss) before income taxes

6,009

(130,020)

N/M

3,663

(138,590)

N/M

Income tax expense (benefit)

(72,772)

(30,656)

N/M

(85,119)

(36,795)

N/M

Net income (loss) from continuing operations

78,781

(99,364)

N/M

88,782

(101,795)

N/M

Less: Net income (loss) from continuing operations

attributable to noncontrolling interests, net of tax

21,236

(16,222)

N/M

25,903

(11,313)

N/M

Net income (loss) from continuing operations

attributable to TDS shareholders

$ 57,545

$ (83,142)

N/M

$ 62,879

$ (90,482)

N/M

Net income (loss) from discontinued operations

$ (151,899)

$ 20,825

N/M

$ (132,150)

$ 68,153

N/M

Less: Net income (loss) from discontinued operations

attributable to noncontrolling interests, net of tax

(12,604)

3,421

N/M

(6,563)

11,238

N/M

Net income (loss) from discontinued operations

attributable to TDS shareholders

(139,295)

17,404

N/M

(125,587)

56,915

N/M

Net income (loss)

(73,118)

(78,539)

7 %

(43,368)

(33,642)

(29) %

Less: Net income (loss) attributable to noncontrolling

interests, net of tax

8,632

(12,801)

N/M

19,340

(75)

N/M

Net income (loss) attributable to TDS shareholders

(81,750)

(65,738)

(24) %

(62,708)

(33,567)

(87) %

TDS Preferred Share dividends

17,306

—

51,919

—

Net income (loss) attributable to TDS common

shareholders

$ (99,056)

$ (83,044)

(19) %

$ (114,627)

$ (85,486)

(34) %

Basic weighted average shares outstanding

116,126

114,029

2 %

115,318

113,523

2 %

Basic earnings (loss) per share from continuing

operations attributable to TDS common

shareholders

$ 0.35

$ (0.88)

N/M

$ 0.10

$ (1.25)

N/M

Basic earnings (loss) per share from discontinued

operations attributable to TDS common

shareholders

$ (1.20)

$ 0.15

N/M

$ (1.09)

$ 0.50

N/M

Basic earnings (loss) per share attributable to TDS

common shareholders

$ (0.85)

$ (0.73)

(17) %

$ (0.99)

$ (0.75)

(32) %

Diluted weighted average shares outstanding

118,844

114,029

4 %

118,786

113,523

5 %

Diluted earnings (loss) per share from continuing

operations attributable to TDS common

shareholders

$ 0.33

$ (0.88)

N/M

$ 0.07

$ (1.25)

N/M

Diluted earnings (loss) per share from discontinued

operations attributable to TDS common

shareholders

$ (1.17)

$ 0.15

N/M

$ (1.06)

$ 0.50

N/M

Diluted earnings (loss) per share attributable to

TDS common shareholders

$ (0.84)

$ (0.73)

(15) %

$ (0.99)

$ (0.75)

(31) %

N/M - Percentage change not meaningful.

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)

Nine Months Ended

September 30,

2025

2024

(Dollars in thousands)

Cash flows from operating activities

Net income (loss)

$ (43,368)

$ (33,642)

Net income (loss) from discontinued operations

(132,150)

68,153

Net income (loss) from continuing operations

88,782

(101,795)

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

Depreciation, amortization and accretion

262,095

240,880

Bad debts expense

5,951

5,586

Stock-based compensation expense

22,336

12,494

Deferred income taxes, net

(80,486)

(43,957)

Equity in earnings of unconsolidated entities

(149,309)

(125,117)

Distributions from unconsolidated entities

149,732

106,458

Loss on impairment of licenses

47,679

136,234

(Gain) loss on asset disposals, net

8,524

8,898

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

(6,032)

(11,733)

(Gain) loss on license sales and exchanges, net

(6,123)

4,360

Other operating activities

19,451

3,004

Changes in assets and liabilities from operations

Accounts receivable

(8,023)

8,744

Inventory

(1,648)

Accounts payable

29,225

(49,151)

Customer deposits and deferred revenues

(31,105)

267

Accrued taxes

(22,974)

10,579

Accrued interest

(3,741)

5,266

Other assets and liabilities

(101,156)

(63,473)

Net cash provided by operating activities - continuing operations

224,840

145,896

Net cash provided by operating activities - discontinued operations

345,473

787,214

Net cash provided by operating activities

570,313

933,110

Cash flows from investing activities

Cash paid for additions to property, plant and equipment

(262,059)

(269,198)

Cash paid for licenses

(4,175)

(16,563)

Cash received from divestitures

29,389

90,503

Other investing activities

3,168

628

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

(233,677)

(194,630)

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

2,462,399

(385,077)

Net cash provided by (used in) investing activities

2,228,722

(579,707)

Cash flows from financing activities

Issuance of long-term debt

325,000

440,000

Repayment of long-term debt

(1,961,844)

(408,301)

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

(1,234)

(10,599)

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

(63,506)

(11,522)

Repurchase of TDS Common Shares

(40,697)

—

Repurchase of Array Common Shares

(21,360)

(25,628)

Dividends paid to TDS shareholders

(65,801)

(82,503)

Array dividends paid to noncontrolling public shareholders

(358,579)

—

Payment of debt issuance costs

(6,459)

(16,157)

Distributions to noncontrolling interests

(21,131)

(4,060)

Cash paid for software license agreements

(1,436)

(725)

Other financing activities

(7,481)

(84)

Net cash used in financing activities - continuing operations

(2,224,528)

(119,579)

Net cash used in financing activities - discontinued operations

(20,537)

(31,578)

Net cash used in financing activities

(2,245,065)

(151,157)

Net increase in cash, cash equivalents and restricted cash

553,970

202,246

Cash, cash equivalents and restricted cash

Beginning of period

383,222

269,308

End of period

$ 937,192

$ 471,554

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS

September 30, 2025

December 31, 2024

(Dollars in thousands)

Current assets

Cash and cash equivalents

$ 932,994

$ 363,612

Accounts receivable, net

97,737

98,552

Inventory, net

4,039

4,052

Prepaid expenses

29,382

32,367

Income taxes receivable

—

2,487

Current assets held for sale

1,633

—

Current assets of discontinued operations

—

1,163,032

Other current assets

13,959

31,088

Total current assets

1,079,744

1,695,190

Non-current assets held for sale

1,617,872

Non-current assets of discontinued operations

—

4,499,561

Licenses

1,650,288

3,289,648

Other intangible assets, net

138,956

160,804

Investments in unconsolidated entities

500,997

500,471

Property, plant and equipment, net

2,883,529

2,876,214

Operating lease right-of-use assets

523,104

520,902

Other assets and deferred charges

137,888

139,430

Total assets

$ 8,532,378

$ 13,682,232

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY

September 30, 2025

December 31, 2024

(Dollars in thousands, except per share amounts)

Current liabilities

Current portion of long-term debt

$ 3,186

$ 31,131

Accounts payable

120,996

74,866

Customer deposits and deferred revenues

164,582

46,992

Accrued interest

4,224

8,999

Accrued taxes

138,688

36,561

Accrued compensation

51,945

147,061

Short-term operating lease liabilities

26,481

27,529

Current liabilities of discontinued operations

1,228

—

Current liabilities held for sale

20,242

671,575

Other current liabilities

39,786

44,980

Total current liabilities

571,358

1,089,694

Non-current liabilities held for sale

3,599

—

Non-current liabilities of discontinued operations

—

2,310,660

Deferred liabilities and credits

Deferred income tax liability, net

715,086

980,769

Long-term operating lease liabilities

555,101

540,904

Other deferred liabilities and credits

576,947

460,676

Long-term debt, net

825,312

2,415,686

Noncontrolling interests with redemption features

—

15,831

Equity

TDS shareholders' equity

Series A Common and Common Shares, par value $0.01 per share

1,332

Capital in excess of par value

2,478,916

2,574,042

Preferred Shares, par value $0.01 per share

1,073,963

Treasury shares, at cost

(405,489)

(425,342)

Accumulated other comprehensive income

17,274

18,238

Retained earnings

1,301,051

1,849,009

Total TDS shareholders' equity

4,467,047

5,091,242

Noncontrolling interests

817,928

776,770

Total equity

5,284,975

5,868,012

Total liabilities and equity

$ 8,532,378

$ 13,682,232

Balance Sheet Highlights

(Unaudited)

September 30, 2025

TDS

TDS Corporate

Intercompany

TDS

Array

Telecom

& Other

Eliminations

Consolidated

(Dollars in thousands)

Cash and cash equivalents

$ 325,626

$ 148,479

$ 607,893

$ (149,004)

$ 932,994

Licenses and other intangible assets

$ 1,648,604

$ 140,008

$ 632

$ —

$ 1,789,244

Investment in unconsolidated entities

452,174

3,947

55,347

(10,471)

500,997

$ 2,100,778

$ 143,955

$ 55,979

$ (10,471)

$ 2,290,241

Property, plant and equipment, net

$ 386,834

$ 2,481,583

$ 15,112

$ —

$ 2,883,529

Long-term debt, net:

Current portion

$ 2,031

$ 158

$ 997

$ —

$ 3,186

Non-current portion

671,902

2,909

150,501

—

825,312

$ 673,933

$ 3,067

$ 151,498

$ —

$ 828,498

TDS Telecom Highlights

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

vs. 2024

2025

2024

2025

vs. 2024

(Dollars in thousands)

Operating revenues

Residential

Incumbent

$ 81,910

$ 89,682

(9) %

$ 252,168

$ 269,231

(6) %

Expansion

39,610

28,878

37 %

110,596

82,740

34 %

Cable

60,231

67,158

(10) %

186,253

205,657

(9) %

Total residential

181,751

185,718

(2) %

549,017

557,628

(2) %

Commercial

34,066

36,304

(6) %

103,317

110,190

(6) %

Wholesale

39,153

40,438

(3) %

124,534

128,157

(3) %

Total service revenues

254,970

262,460

(3) %

776,868

795,975

(2) %

Equipment revenues

141

202

(30) %

535

587

(9) %

Total operating revenues

255,111

262,662

(3) %

777,403

796,562

(2) %

Cost of operations (excluding Depreciation,

amortization and accretion reported below)

102,253

101,107

1 %

300,265

296,768

1 %

Cost of equipment and products

182

211

(14) %

562

514

9 %

Selling, general and administrative expenses

79,201

80,814

(2) %

244,905

236,134

4 %

Depreciation, amortization and accretion

78,901

67,664

17 %

223,478

198,947

12 %

(Gain) loss on asset disposals, net

2,680

(99) %

7,890

8,344

(5) %

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

2,844

—

N/M

(5,235)

—

N/M

Total operating expenses

263,403

252,476

4 %

771,865

740,707

4 %

Operating income (loss)

$ (8,292)

$ 10,186

N/M

$ 5,538

$ 55,855

(90) %

N/M - Percentage change not meaningful

Array Digital Infrastructure, Inc. Highlights

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

vs. 2024

2025

2024

2025

vs. 2024

(Dollars in thousands)

Operating revenues

Site rental

$ 45,838

$ 25,669

79 %

$ 99,663

$ 76,591

30 %

Services

1,281

2,969

254

Total operating revenues

47,119

25,739

83 %

102,632

76,845

34 %

Operating expenses

Cost of operations (excluding Depreciation,

amortization and accretion reported below)

20,976

18,263

15 %

56,662

52,822

7 %

Selling, general and administrative

20,525

21,176

(3) %

69,063

78,997

(13) %

Depreciation, amortization and accretion

11,868

12,237

(3) %

35,860

35,058

2 %

Loss on impairment of licenses

47,679

136,234

(65) %

47,679

136,234

(65) %

(Gain) loss on asset disposals, net

707

196

N/M

620

590

5 %

(Gain) loss on license sales and exchanges, net

(1,323)

(2,200)

40 %

(6,123)

4,360

N/M

Total operating expenses

100,432

185,906

(46) %

203,761

308,061

(34) %

Operating income (loss)

$ (53,313)

$ (160,167)

67 %

$ (101,129)

$ (231,216)

56 %

N/M - Percentage change not meaningful

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)

Free Cash Flow

Nine Months Ended

September 30,

TDS CONSOLIDATED

2025

2024

(Dollars in thousands)

Cash flows from operating activities - continuing operations (GAAP)

$ 224,840

$ 145,896

Cash paid for additions to property, plant and equipment

(262,059)

(269,198)

Cash paid for software license agreements

(1,436)

(725)

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

$ (38,655)

$ (124,027)

Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.

Telephone and Data Systems, Inc.

EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations

(Unaudited)

EBITDA, Adjusted EBITDA and Adjusted OIBDA

The following 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

September 30,

Nine Months Ended

September 30,

TDS Telecom

2025

2024

2025

2024

(Dollars in thousands)

Net income (loss) (GAAP)

$ (282)

$ 9,391

$ 19,329

$ 50,893

Add back or deduct:

Income tax expense (benefit)

(2,748)

4,323

561

14,739

Income (loss) before income taxes (GAAP)

(3,030)

13,714

19,890

65,632

Add back:

Interest expense

(1,743)

(1,262)

(4,168)

(3,521)

Depreciation, amortization and accretion expense

78,901

67,664

223,478

198,947

EBITDA (Non-GAAP)

74,128

80,116

239,200

261,058

Add back or deduct:

Expenses related to strategic alternatives review

3,497

—

3,497

—

(Gain) loss on asset disposals, net

2,680

7,890

8,344

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

2,844

—

(5,235)

—

Adjusted EBITDA (Non-GAAP)

80,491

—

82,796

245,352

269,402

Deduct:

Equity in earnings of unconsolidated entities

Interest and dividend income

1,824

1,368

4,918

3,591

Other, net

1,692

897

5,262

2,664

Adjusted OIBDA (Non-GAAP)

$ 76,972

$ 80,530

$ 235,168

$ 263,146

Three Months Ended

September 30,

Nine Months Ended

September 30,

Array

2025

2024

2025

2024

(Dollars in thousands)

Net income (loss) from continuing operations (GAAP)

$ 109,920

$ (95,701)

$ 130,503

$ (92,296)

Add back or deduct:

Income tax expense (benefit)

(62,701)

(22,046)

(54,479)

(15,600)

Income (loss) before income taxes (GAAP)

47,219

(117,747)

76,024

(107,896)

Add back:

Interest expense

8,855

4,241

16,233

9,201

Depreciation, amortization and accretion expense

11,868

12,237

35,860

35,058

EBITDA (Non-GAAP)

67,942

(101,269)

128,117

(63,637)

Add back or deduct:

Expenses related to strategic alternatives review

489

1,253

2,349

19,913

Loss on impairment of licenses

47,679

136,234

47,679

136,234

(Gain) loss on asset disposals, net

707

196

620

590

(Gain) loss on license sales and exchanges, net

(1,323)

(2,200)

(6,123)

4,360

Short-term imputed spectrum lease income

(30,413)

—

(30,413)

—

Adjusted EBITDA (Non-GAAP)

85,081

34,214

142,229

97,460

Deduct:

Equity in earnings of unconsolidated entities

69,811

43,109

147,453

123,445

Interest and dividend income

8,909

3,552

15,267

9,076

Other, net

254

—

253

—

Adjusted OIBDA (Non-GAAP)

$ 6,107

$ (12,447)

$ (20,744)

$ (35,061)

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 investments. The following table reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure will only be presented prospectively as following the sale of Array's wireless operations to T-Mobile on August 1, 2025, the primary business operations for Array changed from providing wireless communications services to a standalone tower company. In addition, Array continues to own noncontrolling interests in investments that earn significant income, and generate significant cash flows.

Three Months Ended

September 30, 2025

(Dollars in thousands)

Net income from continuing operations - Array (GAAP)

$ 109,920

Add back or deduct:

Deferred income taxes

(80,572)

Short-term imputed spectrum lease income

(30,413)

Amortization of deferred debt charges

274

Equity in earnings of unconsolidated entities

(69,811)

Distributions from unconsolidated entities

61,794

(Gain) loss on license sales and exchanges, net

(1,323)

(Gain) loss on asset disposals, net

707

Loss on impairment of licenses

47,679

Depreciation, amortization and accretion

11,868

Expenses related to strategic alternatives review

489

Straight line and other non-cash revenue adjustments

(3,872)

Straight line expense adjustment

1,559

Maintenance and other capital expenditures

(2,374)

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

$ 45,925

SOURCE Telephone and Data Systems, Inc.