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, supporting increased guidance and operational transformation.

• 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 major spectrum sales and improved operating results.

• Completed major spectrum monetization transactions, including $1 billion to Verizon, $168 million to T-Mobile, and additional sales totaling over $1.16 billion, strengthening the balance sheet.

• Continued focus on operational transformation, sales expansion, and customer experience improvements across business units.

• A non-binding proposal was made to acquire all outstanding Array shares not owned by the company.

Financial highlights

• Q2 2026 total operating revenues were $309.3 million, up 4% year-over-year; TDS Telecom revenues declined 6% to $248 million, offset by 13% fiber revenue growth.

• 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.

• Array's Q2 2026 operating revenues rose 90% year-over-year to $54.1 million, with cash site rental revenue up 65% and tower tenancy rate at 0.98.

• Capital expenditures for TDS Telecom were $179 million in Q2 2026, nearly doubling year-over-year.

• Free cash flow for the first half of 2026 was negative $168 million, reflecting high capital expenditures.

Outlook and guidance

• TDS Telecom 2026 guidance: total revenues of $1.0–$1.025 billion, adjusted EBITDA of $310–$330 million, and CapEx of $625–$675 million, with fiber service address delivery guidance increased to 250,000–300,000.

• Array 2026 guidance: total operating revenue $205–$215 million, adjusted EBITDA $220–$235 million, and capital expenditures projected at $25–$35 million.

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