TDS reports fourth quarter and full year 2025 results

TDS reports fourth quarter and full year 2025 results 02/20/2026 TDS Telecom increases its long-term marketable fiber service goal to 2.1 million addresses TDS Telecom and Array provide 2026 guidance , /PRNewswire/ -- As previously announced, TDS will hold a teleconference on February 20, 2026, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com. Telephone and Data Systems, Inc. (NYSE:TDS) reported results for the fourth quarter and full year 2025. "2025 was a year of significant transformation for TDS," said Walter Carlson, President and CEO. "We completed the largest transaction in our history with the sale of our wireless business, launched a new tower company now operating as Array, and ended the year with 1.06 million marketable fiber service addresses at TDS Telecom. These actions strengthened our balance sheet and positioned the company for sustainable growth." Highlights TDS Repurchased 1,765,863 Common Shares for $67.4 million in the fourth quarter of 2025Repaid $150 million of Export Development Canada debt in January 2026 TDS Telecom Executed on fiber broadband strategyGrew fiber net additions 44,900 in 2025Deployed 140,000 new marketable fiber service addresses in 2025Increased long-term marketable fiber service address goal to 2.1 million, an increase of 300,000 addresses Array Grew site rental revenues 51% year over year Closed on the sale of wireless spectrum with AT&T on January 13, 2026, for $1.018 billionPaid a $10.25 per share special dividend on February 2, 2026 TDS reported total operating revenues from continuing operations of $330.7 million for the fourth quarter of 2025, versus $295.3 million for the same period one year ago. Net income attributable to TDS common shareholders and related diluted earnings per share from continuing operations were $37.2 million and $0.32, respectively, for the fourth quarter of 2025 compared to $1.0 million and $0.01, respectively, in the same period one year ago. TDS reported total operating revenues from continuing operations of $1,228.2 million and $1,297.0 million for the years ended 2025 and 2024, respectively. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share from continuing operations were $48.2 million and $0.39, respectively, for the year ended 2025 compared to $(141.4) million and $(1.24), respectively, for the year ended 2024. "In 2026, we intend to continue to advance our strategic priorities by investing in the expansion of TDS Telecom's fiber business and supporting co‑location and profitability initiatives at Array. We also expect to close our pending spectrum transactions and pursue opportunities to further monetize our remaining spectrum," Carlson added. 2026 Estimated Results TDS' current estimates of full-year 2026 results for TDS Telecom and Array are shown below. Such estimates represent management's view as of February 20, 2026 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results. TDS Telecom 2026 Estimated Results Actual Results for the Year Ended December 31, 2025* (Dollars in millions) Total operating revenues $1,015-$1,055 $1,038 Adjusted OIBDA1 (Non-GAAP) $300-$340 $319 Adjusted EBITDA1 (Non-GAAP) $310-$350 $330 Capital expenditures $550-$600 $406 * The 2025 divestitures at TDS Telecom impact year-over-year comparisons. The divested markets contributed $19M in annual revenues in 2025. Array 2026 Estimated Results Actual Results for the Year Ended December 31, 2025 (Dollars in millions) Total operating revenues $200-$215 $163 Adjusted OIBDA1 (Non-GAAP) $50-$65 $1 Adjusted EBITDA1 (Non-GAAP) $200-$215 $194 Capital expenditures $25-$35 $30 The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2026 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance. TDS Telecom Array 2026 Estimated Results Actual Results for the Year Ended December 31, 2025 2026 Estimated Results Actual Results for the Year Ended December 31, 2025 (Dollars in millions) Net income from continuing operations (GAAP) N/A $28 N/A $172 Add back: Income tax expense (benefit) N/A 10 N/A (31) Income (loss) before income taxes (GAAP) ($15)-$25 $38 $780-$795 $141 Add back or deduct: Interest expense — (7) 45 28 Depreciation, amortization and accretion 325 300 50 48 EBITDA (Non-GAAP)1 $310-$350 $331 $875-$890 $218 Add back or deduct: Expenses related to strategic alternatives review — 6 — 2 Loss on impairment of intangible assets — 1 — 48 (Gain) loss on asset disposals, net — 15 — 2 (Gain) loss on sale of business and other exit costs, net — (23) — — (Gain) loss on license sales and exchanges, net — — (595) (6) Short-term imputed spectrum lease income — — (80) (69) Adjusted EBITDA (Non-GAAP)1 $310-$350 $330 $200-$215 $194 Deduct: Equity in earnings of unconsolidated entities — — 140 174 Interest and dividend income 5 6 10 19 Other, net 5 5 — — Adjusted OIBDA (Non-GAAP)1 $300-$340 $319 $50-$65 $1 Numbers may not foot due to rounding. 1  EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS' operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Conference Call Information TDS will hold a conference call on February 20, 2026 at 9:00 a.m. Central Time. Access the live call on the Events & Presentations page of investors.tdsinc.com or at https://events.q4inc.com/attendee/189864142 Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. About TDS Telephone and Data Systems, Inc. (TDS) provides broadband, video, voice and wireless services through its TDS Telecom business. Array leases tower space to tenants and provides ancillary services, holds noncontrolling interests in primarily wireless operating companies and holds certain wireless spectrum licenses. Founded in 1969, TDS is headquartered in Chicago. Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; whether the additional spectrum license sales to T-Mobile and the previously announced spectrum license sales to Verizon are consummated; whether Array can monetize its remaining spectrum assets; intense competition; economic and business risks associated with fixed rate annual escalators on colocation revenue contracts; Array's reliance on a small number of tenants for a substantial portion of its revenues; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; inability to protect TDS' real estate rights, with respect to land leases; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances or changes in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and Array indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities Array does not control; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and extreme weather events. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K. For more information about TDS and its subsidiaries, visit: TDS: www.tdsinc.com TDS Telecom: www.tdstelecom.com Array: investors.arrayinc.com Array Digital Infrastructure, Inc. Summary Operating Data (Unaudited) As of or for the Quarter Ended 12/31/2025 9/30/2025 Capital expenditures from continuing operations (thousands) $ 12,933 $ 7,927 Owned towers 4,450 4,449 Number of colocations1 4,572 4,517 Tower tenancy rate2 1.03 1.02 1  Represents instances where a third-party leases space on a company-owned tower. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. 2  Calculated as total number of colocations divided by total number of towers. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. TDS Telecom Summary Operating Data (Unaudited) As of or for the Quarter Ended 12/31/2025 9/30/2025 6/30/2025 3/31/2025 12/31/2024 Residential connections Broadband Incumbent Fiber 127,300 123,500 121,200 119,700 118,500 Incumbent Copper 91,200 102,000 106,500 112,600 116,900 Expansion Fiber 160,600 150,700 141,800 133,200 126,100 Cable 182,800 186,100 188,200 190,200 191,500 Total Broadband 561,900 562,400 557,700 555,800 553,000 Video 111,500 114,300 116,500 118,700 121,000 Voice 228,900 242,200 248,700 256,900 261,600 Wireless 3,300 2,200 1,600 900 100 Total Residential connections 905,600 921,100 924,500 932,300 935,700 Commercial connections 173,900 180,300 184,300 187,600 190,500 Total connections1 1,079,500 1,101,300 1,108,800 1,119,900 1,126,300 Total residential fiber net adds 15,100 11,200 10,300 8,300 13,600 Total residential broadband net adds 4,500 4,600 3,900 2,800 7,900 Residential fiber churn2 1.2 % 1.5 % 1.1 % 0.9 % 1.0 % Total residential broadband churn 1.6 % 1.7 % 1.5 % 1.3 % 1.4 % Residential revenue per connection3 $ 65.95 $ 65.66 $ 65.85 $ 65.67 $ 64.72 Capital expenditures (thousands) $ 154,904 $ 102,429 $ 90,187 $ 58,870 $ 81,743 Numbers may not foot due to rounding. 1  Divestitures in 2025 resulted in a decrease of 19,400 connections, including 7,700 residential broadband connections. 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 December 31, Year Ended December 31, 2025 2024 2025 vs. 2024 2025 2024 2025 vs. 2024 (Dollars and shares in thousands, except per share amounts) Operating revenues TDS Telecom $ 260,956 $ 264,295 (1) % $ 1,038,358 $ 1,060,857 (2) % Array 60,328 26,089 N/M 162,961 102,933 58 % All Other1 9,428 4,964 90 % 26,888 133,188 (80) % 330,712 295,348 12 % 1,228,207 1,296,978 (5) % Operating expenses TDS Telecom Expenses excluding depreciation, amortization and accretion 179,941 187,101 (4) % 725,672 720,517 1 % Depreciation, amortization and accretion 76,720 71,713 7 % 300,196 270,660 11 % Loss on impairment of intangible assets 900 1,103 (18) % 900 1,103 (18) % (Gain) loss on asset disposals, net 7,163 4,032 78 % 15,054 12,376 22 % (Gain) loss on sale of business and other exit costs, net (17,886) (49,108) 64 % (23,121) (49,108) 53 % 246,838 214,841 15 % 1,018,701 955,548 7 % Array Expenses excluding depreciation, amortization and accretion 38,204 43,733 (13) % 163,929 175,553 (7) % Depreciation, amortization and accretion 12,402 12,156 2 % 48,262 47,212 2 % Loss on impairment of intangible assets — — N/M 47,679 136,234 (65) % (Gain) loss on asset disposals, net 1,125 219 N/M 1,746 809 N/M (Gain) loss on license sales and exchanges, net — (900) — (6,123) 3,460 N/M 51,731 55,208 (6) % 255,493 363,268 (30) % All Other1 Expenses excluding depreciation, amortization and accretion 14,610 14,989 (3) % 48,721 180,882 (73) % Depreciation, amortization and accretion 667 950 (30) % 3,427 7,825 (56) % (Gain) loss on asset disposals, net 36 (9) N/M 47 (44) N/M (Gain) loss on sale of business and other exit costs, net — (7,510) N/M (797) (19,242) 96 % 15,313 8,420 82 % 51,398 169,421 (70) % Total operating expenses 313,882 278,469 13 % 1,325,592 1,488,237 (11) % Operating income (loss) TDS Telecom 14,118 49,454 (71) % 19,657 105,309 (81) % Array 8,597 (29,119) N/M (92,532) (260,335) 64 % All Other1 (5,885) (3,456) (70) % (24,510) (36,233) (32) % 16,830 16,879 — (97,385) (191,259) 49 % Other income (expense) Equity in earnings of unconsolidated entities 26,792 38,506 (30) % 176,101 163,623 8 % Interest and dividend income 12,263 6,933 77 % 40,307 27,201 48 % Interest expense (12,316) (29,657) 58 % (112,668) (108,575) (4) % Short-term imputed spectrum lease income 38,619 — N/M 69,033 — N/M Other, net 3,112 2,541 22 % 13,574 5,622 N/M Total other income 68,470 18,323 N/M 186,347 87,871 N/M Income (loss) before income taxes 85,300 35,202 N/M 88,962 (103,388) N/M Income tax expense (benefit) 22,936 14,728 56 % (62,184) (22,067) N/M Net income (loss) from continuing operations 62,364 20,474 N/M 151,146 (81,321) N/M Less: Net income (loss) from continuing operations attributable to noncontrolling interests, net of tax 7,839 2,163 N/M 33,742 (9,150) N/M Net income (loss) from continuing operations attributable to TDS shareholders $ 54,525 $ 18,311 N/M $ 117,404 $ (72,171) N/M Net income (loss) from discontinued operations $ 1,246 $ (13,313) N/M $ (130,904) $ 54,840 N/M Less: Net income (loss) from discontinued operations attributable to noncontrolling interests, net of tax (701) (865) (19) % (7,264) 10,374 N/M Net income (loss) from discontinued operations attributable to TDS shareholders 1,947 (12,448) N/M (123,640) 44,466 N/M Net income (loss) 63,610 7,161 N/M 20,242 (26,481) N/M Less: Net income attributable to noncontrolling interests, net of tax 7,138 1,298 N/M 26,478 1,224 N/M Net income (loss) attributable to TDS shareholders 56,472 5,863 N/M (6,236) (27,705) 77 % TDS Preferred Share dividends 17,306 17,306 — 69,225 69,225 — Net income (loss) attributable to TDS common shareholders $ 39,166 $ (11,443) N/M $ (75,461) $ (96,930) 22 % Basic weighted average shares outstanding 114,767 114,282 – 115,179 113,714 1 % Basic earnings (loss) per share from continuing operations attributable to TDS common shareholders $ 0.32 $ 0.01 N/M $ 0.42 $ (1.24) N/M Basic earnings (loss) per share from discontinued operations attributable to TDS common shareholders $ 0.02 $ (0.11) N/M $ (1.08) $ 0.39 N/M Basic earnings (loss) per share attributable to TDS common shareholders $ 0.34 $ (0.10) N/M $ (0.66) $ (0.85) 23 % Diluted weighted average shares outstanding 117,516 118,273 (1) % 118,563 113,714 4 % Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders $ 0.32 $ 0.01 N/M $ 0.39 $ (1.24) N/M Diluted earnings (loss) per share from discontinued operations attributable to TDS common shareholders $ 0.01 $ (0.11) N/M $ (1.04) $ 0.39 N/M Diluted earnings (loss) per share attributable to TDS common shareholders $ 0.33 $ (0.10) N/M $ (0.65) $ (0.85) 23 % N/M - Percentage change not meaningful. 1 Consists of TDS corporate, intercompany eliminations and all other business operations not included in the Array and TDS Telecom segments. Telephone and Data Systems, Inc. Consolidated Statement of Cash Flows (Unaudited) Year Ended December 31, 2025 2024 (Dollars in thousands) Cash flows from operating activities Net income (loss) $ 20,242 $ (26,481) Net income (loss) from discontinued operations (130,904) 54,840 Net income (loss) from continuing operations 151,146 (81,321) Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities Depreciation, amortization and accretion 351,885 325,697 Bad debts expense 8,172 7,424 Stock-based compensation expense 27,174 18,335 Deferred income taxes, net (66,190) (20,978) Equity in earnings of unconsolidated entities (176,101) (163,623) Distributions from unconsolidated entities 215,599 168,701 Loss on impairment of intangible assets 48,579 137,337 (Gain) loss on asset disposals, net 16,847 13,141 (Gain) loss on sale of business and other exit costs, net (23,918) (68,350) (Gain) loss on license sales and exchanges, net (6,123) 3,460 Other operating activities 29,617 4,576 Changes in assets and liabilities from operations Accounts receivable (24,189) 6,185 Inventory (10) (327) Accounts payable (9,830) (56,066) Customer deposits and deferred revenues (70,569) 399 Accrued taxes (19,837) (5,105) Other assets and liabilities (113,968) 6,295 Net cash provided by operating activities - continuing operations 338,284 295,780 Net cash provided by operating activities - discontinued operations 251,605 850,093 Net cash provided by operating activities 589,889 1,145,873 Cash flows from investing activities Cash paid for additions to property, plant and equipment (390,529) (365,446) Cash paid for licenses (4,175) (19,198) Cash received from divestitures 72,342 147,267 Other investing activities 4,067 1,449 Net cash used in investing activities - continuing operations (318,295) (235,928) Net cash provided by (used in) investing activities - discontinued operations 2,462,399 (518,572) Net cash provided by (used in) investing activities 2,144,104 (754,500) Cash flows from financing activities Issuance of long-term debt 325,000 440,000 Repayment of long-term debt (1,962,116) (455,548) Tax withholdings, net of cash receipts, for TDS stock-based compensation awards (1,275) (2,308) Tax withholdings, net of cash receipts, for Array stock-based compensation awards (63,446) (11,246) Repurchase of TDS Common Shares (108,129) — Repurchase of Array Common Shares (21,360) (54,091) Dividends paid to TDS shareholders (87,670) (104,383) Array dividends paid to noncontrolling public shareholders (358,579) — Payment of debt issuance costs (8,830) (16,170) Distributions to noncontrolling interests (21,932) (4,716) Cash paid for software license agreements (1,933) (1,251) Other financing activities (16,258) (1,115) Net cash used in financing activities - continuing operations (2,326,528) (210,828) Net cash used in financing activities - discontinued operations (20,537) (66,631) Net cash used in financing activities (2,347,065) (277,459) Net increase in cash, cash equivalents and restricted cash 386,928 113,914 Cash, cash equivalents and restricted cash Beginning of period 383,222 269,308 End of period $ 770,150 $ 383,222 Telephone and Data Systems, Inc. Consolidated Balance Sheet Highlights (Unaudited) ASSETS December 31, 2025 2024 (Dollars in thousands) Current assets Cash and cash equivalents $ 765,952 $ 363,612 Accounts receivable, net 109,981 98,552 Inventory, net 4,062 4,052 Prepaid expenses 28,206 32,367 Income taxes receivable 1,292 2,487 Current assets of discontinued operations — 1,163,032 Other current assets 13,976 31,088 Total current assets 923,469 1,695,190 Non-current assets held for sale 1,598,131 12 Non-current assets of discontinued operations — 4,499,561 Licenses 1,642,972 3,289,648 Other intangible assets, net 131,673 160,804 Investments in unconsolidated entities 461,922 500,471 Property, plant and equipment, net 2,965,455 2,876,214 Operating lease right-of-use assets 515,081 520,902 Other assets and deferred charges 159,600 139,430 Total assets $ 8,398,303 $ 13,682,232 Telephone and Data Systems, Inc. Consolidated Balance Sheet Highlights (Unaudited) LIABILITIES AND EQUITY December 31, 2025 2024 (Dollars in thousands, except per share amounts) Current liabilities Current portion of long-term debt $ 5,274 $ 31,131 Accounts payable 115,822 74,866 Customer deposits and deferred revenues 125,140 46,992 Accrued interest 2,836 8,999 Accrued taxes 46,721 36,561 Accrued compensation 56,774 147,061 Short-term operating lease liabilities 26,180 27,529 Current liabilities of discontinued operations 20,242 671,575 Other current liabilities 41,322 44,980 Total current liabilities 440,311 1,089,694 Non-current liabilities of discontinued operations — 2,310,660 Deferred liabilities and credits Deferred income tax liability, net 743,633 980,769 Long-term operating lease liabilities 549,617 540,904 Other deferred liabilities and credits 574,025 460,676 Long-term debt, net 823,364 2,415,686 Noncontrolling interests with redemption features — 15,831 Total equity 5,267,353 5,868,012 Total liabilities and equity $ 8,398,303 $ 13,682,232 Balance Sheet Highlights (Unaudited) December 31, 2025 TDS Telecom Array TDS Corporate & Other Intercompany Eliminations TDS Consolidated (Dollars in thousands) Cash and cash equivalents $ 144,968 $ 113,400 $ 655,894 $ (148,310) $ 765,952 Licenses and other intangible assets $ 131,826 $ 1,642,187 $ 632 $ — $ 1,774,645 Investment in unconsolidated entities 3,947 412,608 55,868 (10,501) 461,922 $ 135,773 $ 2,054,795 $ 56,500 $ (10,501) $ 2,236,567 Property, plant and equipment, net $ 2,562,057 $ 388,999 $ 14,399 $ — $ 2,965,455 Long-term debt, net: Current portion $ 160 $ 4,063 $ 1,051 $ — $ 5,274 Non-current portion 2,887 670,258 150,219 — 823,364 $ 3,047 $ 674,321 $ 151,270 $ — $ 828,638 TDS Telecom Highlights (Unaudited) Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 vs. 2024 2025 2024 2025 vs. 2024 (Dollars in thousands) Operating revenues Residential Incumbent $ 80,179 $ 86,164 (7) % $ 332,347 $ 355,395 (6) % Expansion 41,935 31,373 34 % 152,531 114,113 34 % Cable 58,847 64,787 (9) % 245,100 270,444 (9) % Total residential 180,961 182,324 (1) % 729,978 739,952 (1) % Commercial 33,941 37,374 (9) % 137,258 147,564 (7) % Wholesale 45,965 44,363 4 % 170,499 172,520 (1) % Total service revenues 260,867 264,061 (1) % 1,037,735 1,060,036 (2) % Equipment revenues 89 234 (62) % 623 821 (24) % Total operating revenues 260,956 264,295 (1) % 1,038,358 1,060,857 (2) % Cost of operations (excluding Depreciation, amortization and accretion reported below) 99,351 103,047 (4) % 399,616 399,815 — Cost of equipment and products 193 208 (8) % 754 723 4 % Selling, general and administrative expenses 80,397 83,846 (4) % 325,302 319,979 2 % Depreciation, amortization and accretion 76,720 71,713 7 % 300,196 270,660 11 % Loss on impairment of intangible assets 900 1,103 (18) % 900 1,103 (18) % (Gain) loss on asset disposals, net 7,163 4,032 78 % 15,054 12,376 22 % (Gain) loss on sale of business and other exit costs, net (17,886) (49,108) 64 % (23,121) (49,108) 53 % Total operating expenses 246,838 214,841 15 % 1,018,701 955,548 7 % Operating income $ 14,118 $ 49,454 (71) % $ 19,657 $ 105,309 (81) % Array Digital Infrastructure, Inc. Highlights (Unaudited) Three Months Ended December 31, Year Ended December 31, Array 2025 2024 2025 vs. 2024 2025 2024 2025 vs. 2024 (Dollars in thousands) Operating revenues Site rental $ 54,990 $ 26,019 N/M $ 154,654 $ 102,610 51 % Services 5,338 70 N/M 8,307 323 N/M Total operating revenues 60,328 26,089 N/M 162,961 102,933 58 % Operating expenses Cost of operations (excluding Depreciation, amortization and accretion reported below) 22,823 20,174 13 % 79,485 72,997 9 % Selling, general and administrative 15,381 23,559 (35) % 84,444 102,556 (18) % Depreciation, amortization and accretion 12,402 12,156 2 % 48,262 47,212 2 % Loss on impairment of licenses — — N/M 47,679 136,234 (65) % (Gain) loss on asset disposals, net 1,125 219 N/M 1,746 809 N/M (Gain) loss on license sales and exchanges, net — (900) N/M (6,123) 3,460 N/M Total operating expenses 51,731 55,208 (6) % 255,493 363,268 (30) % Operating income (loss) $ 8,597 $ (29,119) N/M $ (92,532) $ (260,335) 64 % N/M - Percentage change not meaningful Telephone and Data Systems, Inc. Financial Measures (Unaudited) Free Cash Flow Year Ended December 31, TDS Consolidated 2025 2024 (Dollars in thousands) Cash flows from operating activities - continuing operations (GAAP) $ 338,284 $ 295,780 Cash paid for additions to property, plant and equipment (390,529) (365,446) Cash paid for software license agreements (1,933) (1,251) Free cash flow - continuing operations (Non-GAAP)1 $ (54,178) $ (70,917) 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) The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) and Income (loss) before income taxes. Three Months Ended December 31, Year Ended December 31, TDS Telecom 2025 2024 2025 2024 (Dollars in thousands) Net income (GAAP) $ 8,187 $ 34,008 $ 27,516 $ 84,901 Add back or deduct: Income tax expense (benefit) 9,595 20,301 10,157 35,040 Income before income taxes (GAAP) 17,782 54,309 37,673 119,941 Add back or deduct: Interest expense (2,487) (1,676) (6,654) (5,197) Depreciation, amortization and accretion expense 76,720 71,713 300,196 270,660 EBITDA (Non-GAAP) 92,015 124,346 331,215 385,404 Add back or deduct: Expenses related to strategic alternatives review 2,711 — 6,207 — Loss on impairment of intangible assets 900 1,103 900 1,103 (Gain) loss on asset disposals, net 7,163 4,032 15,054 12,376 (Gain) loss on sale of business and other exit costs, net (17,886) (49,108) (23,121) (49,108) Adjusted EBITDA (Non-GAAP) 84,903 80,373 330,255 349,775 Deduct: Equity in earnings of unconsolidated entities — (8) 4 (7) Interest and dividend income 1,522 1,892 6,440 5,483 Other, net (345) 1,295 4,918 3,959 Adjusted OIBDA (Non-GAAP) $ 83,726 $ 77,194 $ 318,893 $ 340,340 Three Months Ended December 31, Year Ended December 31, Array 2025 2024 2025 2024 (Dollars in thousands) Net income (loss) from continuing operations (GAAP) $ 41,764 $ 11,832 $ 172,267 $ (80,464) Add back or deduct: Income tax expense (benefit) 23,332 (3,656) (31,148) (19,256) Income (loss) before income taxes (GAAP) 65,096 8,176 141,119 (99,720) Add back: Interest expense 11,989 3,203 28,222 12,405 Depreciation, amortization and accretion expense 12,402 12,156 48,262 47,212 EBITDA (Non-GAAP) 89,487 23,535 217,603 (40,103) Add back or deduct: Expenses related to strategic alternatives review 95 1,607 2,444 21,521 Loss on impairment of licenses — — 47,679 136,234 (Gain) loss on asset disposals, net 1,125 219 1,746 809 (Gain) loss on license sales and exchanges, net — (900) (6,123) 3,460 Short-term imputed spectrum lease income (38,619) — (69,033) — Adjusted EBITDA (Non-GAAP) 52,088 24,461 194,316 121,921 Deduct: Equity in earnings of unconsolidated entities 26,301 37,919 173,754 161,364 Interest and dividend income 3,649 2,579 18,917 11,656 Other, net (81) — 169 — Adjusted OIBDA (Non-GAAP) $ 22,219 $ (16,037) $ 1,476 $ (51,099) Array Adjusted Free Cash Flow (AFCF) AFCF is a non-GAAP measure defined as Net income from continuing operations adjusted for the items set forth in the reconciliation below. AFCF is not a measure of financial performance under GAAP and should not be considered as an alternative to Net income from continuing operations or as an indicator of cash flows. Management believes AFCF is a useful measure of Array's cash generated from operations and its noncontrolling investment interests. The following table reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure is presented following the sale of Array's wireless operations to T-Mobile on August 1, 2025, at which time the primary business operations for Array changed from providing wireless communications services to a standalone tower company. Array modified its AFCF metric for the three months ended December 31, 2025 to adjust for cash taxes paid in the quarter, which management believes best reflects cash generated from operations and investments. Under the modified presentation, the comparative calculation of AFCF for the three months ended September 30, 2025 would have been $63.4 million. Three Months Ended December 31, 2025 (Dollars in thousands) Net income from continuing operations - Array (GAAP) $ 41,764 Add back or deduct: Income tax expense 23,332 Cash paid for income taxes (191) Stock-based compensation expense 259 Short-term imputed spectrum lease income (38,619) Amortization of deferred debt charges 946 Equity in earnings of unconsolidated entities (26,301) Distributions from unconsolidated entities 65,867 (Gain) loss on asset disposals, net 1,125 Depreciation, amortization and accretion 12,402 Expenses related to strategic alternatives review 95 Straight line and other non-cash revenue adjustments (5,190) Straight line expense adjustment 1,398 Maintenance and other capital expenditures (2,025) Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP) $ 74,862 View original content:https://www.prnewswire.com/news-releases/tds-reports-fourth-quarter-and-full-year-2025-results-302693316.html SOURCE Telephone and Data Systems, Inc.