TDS reports third quarter 2025 results

Announces new $500 million share repurchase authorization , /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 Repurchased over one million TDS Common Shares during the third quarter  Board approved new $500 million share repurchase program, additive to current authorization balance   TDS Telecom Executing on fiber broadband strategy Delivered 42,000 marketable fiber services addresses in Q3 2025 Grew fiber connections —11,200 residential fiber net additions TDS Telecom revenues down 3%, impacted by $6 million due to divestitures of non-strategic assets Array Closed on the sale of wireless operations and select spectrum assets to T-Mobile on August 1, 2025 Paid a $23 per share special dividend on August 19, 2025 Commenced T-Mobile MLA on August 1, 2025, helping to drive a 68% increase in Site rental revenues, excluding non-cash amortization Entered into additional spectrum sales expected to result in aggregate proceeds of $178 million Announced appointment of Anthony Carlson as President and CEO effective November 16, 2025 *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 ResultsTDS' 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 Previous Current (Dollars in millions) Total operating revenues $1,030-$1,050 Unchanged Adjusted OIBDA1 (Non-GAAP) $310-$340 Unchanged Adjusted EBITDA1 (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 — 4 (7) Interest and dividend income 5 4,918 5,483 Other, net 5 5,262 3,959 Adjusted OIBDA (Non-GAAP)1 $310-$340 $ 235,168 $ 340,340 1 EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS' operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Stock RepurchaseDuring 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 InformationTDS will hold a conference call on November 7, 2025 at 9:00 a.m. Central Time. Access the live call on the Events & Presentations page of investors.tdsinc.com or athttps://events.q4inc.com/attendee/604881005 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 TDSTelephone 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.comArray: 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 colocations1 4,517 Tower tenancy rate2 1.02 1 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. 2 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 connections1 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 churn2 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 connection3 $ 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. 1 Q3 2024 total connections include 22,600 connections that were part of subsequent divestitures. 2 Residential fiber churn represents the percentage of incumbent and expansion fiber connections that disconnected service each month. These rates represent the average monthly churn rate for each respective period. 3 Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period. Telephone and Data Systems, Inc. Consolidated Statement of Operations Highlights (Unaudited) Three Months Ended 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 Other1 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 22 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 Other1 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 % 14 (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 Other1 (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 17,306 — 51,919 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. 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) 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 14 (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 12 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 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 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 22 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 2025vs. 2024 2025 2024 2025vs. 2024 (Dollars in thousands) Operating revenues Site rental $ 45,838 $ 25,669 79 % $ 99,663 $ 76,591 30 % Services 1,281 70 NM 2,969 254 NM 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) 1 Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements. Telephone and Data Systems, Inc. EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations (Unaudited) EBITDA, Adjusted EBITDA and Adjusted OIBDA The following 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 22 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 3 1 4 1 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.

TDS reports third quarter 2025 results

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