TDS Telecom and Array provide 2026 guidance
CHICAGO, Feb. 20, 2026 /PRNewswire/ --
As previously announced, TDS will hold a teleconference on February 20, 2026, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.
Telephone and Data Systems, Inc. (NYSE:TDS) reported results for the fourth quarter and full year 2025.
"2025 was a year of significant transformation for TDS," said Walter Carlson, President and CEO. "We completed the largest transaction in our history with the sale of our wireless business, launched a new tower company now operating as Array, and ended the year with 1.06 million marketable fiber service addresses at TDS Telecom. These actions strengthened our balance sheet and positioned the company for sustainable growth."
Highlights
TDS
Repurchased 1,765,863 Common Shares for $67.4 million in the fourth quarter of 2025
Repaid $150 million of Export Development Canada debt in January 2026
TDS Telecom
Executed on fiber broadband strategy
Grew fiber net additions 44,900 in 2025
Deployed 140,000 new marketable fiber service addresses in 2025
Increased 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 billion
Paid 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 EstimatedResults
Actual Results forthe Year EndedDecember 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 InformationTDS 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 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; 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.comTDS Telecom: www.tdstelecom.comArray: 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
