Telephone and Data Systems (TDS) Q1 2025 earnings summary

Executive summary

• Progress continues on the $4.4 billion sale of UScellular wireless operations and select spectrum assets to T-Mobile, expected to close mid-2025, with additional spectrum sales to Verizon ($1.0 billion) and AT&T ($1.018 billion) pending regulatory approval.

• TDS Telecom is executing on its fiber broadband strategy, deploying 14,000 new marketable fiber addresses and 2,800 residential broadband net additions in Q1 2025, with a target of 150,000 new fiber addresses for the year.

• Q1 2025 total operating revenues declined 9% year-over-year to $1,154 million, with a net loss attributable to common shareholders of $10 million, or $(0.09) per diluted share.

• Free cash flow improved to $47 million in Q1 2025, compared to $(20) million in Q1 2024, driven by lower capital expenditures.

• Special dividends are anticipated for UScellular shareholders upon closing of the T-Mobile transaction.

Financial highlights

• UScellular Q1 2025 operating revenues declined 6% year-over-year to $891 million; service revenues down 2% to $741 million; equipment sales down 24% to $150 million.

• TDS Telecom Q1 2025 operating revenues decreased 3% year-over-year to $257 million; Adjusted EBITDA up 6% to $76 million.

• UScellular Adjusted EBITDA was $254 million, down 7% year-over-year; Adjusted OIBDA was $215 million, down 6%.

• Capital expenditures dropped 49% to $112 million, reflecting reduced investment in wireless and telecom segments.

• Residential revenue per connection at TDS Telecom rose to $65.67 in Q1 2025 from $64.58 a year ago.

Outlook and guidance

• Sale of UScellular wireless operations to T-Mobile expected to close mid-2025, with no 2025 financial guidance provided for UScellular due to the pending transaction.

• TDS Telecom 2025 full-year guidance unchanged: operating revenues $1,030–$1,070 million; Adjusted OIBDA $310–$350 million; Adjusted EBITDA $320–$360 million; capital expenditures $375–$425 million.

• Fiber expansion and eACAM programs remain central, with a goal of 1.8 million marketable fiber addresses and 80% of total addresses served by fiber.

• Business Transformation program aims for $100 million annual cost savings by year-end 2028.