Telephone and Data Systems (TDS) investor relations material

Executive summary

• Achieved record fiber address delivery in Q2 2026, with 66,000 new addresses and 15,100 residential fiber net adds, up 47% year-over-year, and 106,000 year-to-date, supporting increased guidance.

• Net income attributable to common shareholders was $281.1 million for Q2 2026, a turnaround from a $5.7 million loss in Q2 2025, driven by spectrum sales and improved operations.

• Array Digital Infrastructure saw strong tower tenancy growth, completed major spectrum monetization transactions, and issued a special $11 per share dividend.

• Ongoing operational transformation focused on efficiency, customer experience, and sales capacity expansion, particularly in fiber and cable markets.

• A non-binding proposal was made to acquire all outstanding Array shares not owned by the company, under review by a special committee.

Financial highlights

• Q2 2026 total operating revenues were $309.3 million, up 4% year-over-year; TDS Telecom revenues declined 6% to $248 million, while Array revenues rose 90% to $54.1 million.

• Net income attributable to common shareholders was $281.1 million for Q2 2026, with diluted EPS from continuing operations at $2.24.

• Adjusted EBITDA from continuing operations was $139.2 million for Q2 2026, with TDS Telecom at $70.4 million and Array at $56.2 million.

• Free cash flow for the first half of 2026 was negative $168.0 million, reflecting high capital expenditures.

• Cash and cash equivalents at June 30, 2026, were $2.19 billion, up from $765.95 million at year-end 2025, mainly due to spectrum sales.

Outlook and guidance

• TDS Telecom 2026 revenue guidance is $1.0–$1.025 billion, with adjusted EBITDA at $310–$330 million and capital expenditures raised to $625–$675 million, focused on fiber deployment.

• Fiber service address delivery guidance for 2026 raised to 250,000–300,000, up by 50,000.

• Array's 2026 revenue guidance is $205–$220 million, with adjusted EBITDA raised to $220–$235 million.

• The company continues to explore strategic alternatives, including a proposal to acquire all outstanding Array shares not owned by TDS.