Telephone and Data Systems (TDS) Q3 2025 earnings summary

Executive summary

• Closed the sale of wireless operations and select spectrum assets to T-Mobile on August 1, 2025, for $4.29 billion, including $2.63 billion in cash and $1.67 billion in debt assumed by T-Mobile, enabling significant strategic progress and value creation.

• Paid a $23 per share special dividend on August 19, 2025, following the transaction.

• Array Digital Infrastructure transitioned to an independent tower company, now focusing on tower leasing, noncontrolling interests, and spectrum monetization.

• TDS Telecom surpassed 1 million fiber addresses, advancing its fiber transformation strategy and exploring strategic alternatives post-divestiture.

• Monetized over 70% of Array's total spectrum holdings, with major sales to T-Mobile, Verizon, and AT&T.

Financial highlights

• Q3 2025 consolidated operating revenues declined 6% year-over-year to $308.5 million; TDS Telecom revenues declined 3% to $255.1 million, while Array revenues increased 83% to $47.1 million.

• Adjusted EBITDA from continuing operations rose 53% year-over-year to $168.7 million in Q3 2025; TDS Telecom Adjusted EBITDA was $80 million, down 3%.

• Net income from continuing operations attributable to shareholders was $57.5 million in Q3 2025, compared to a loss of $83.1 million in Q3 2024.

• Paid a $1.6 billion special dividend from Array and authorized a $500 million share repurchase program.

• Cash and cash equivalents increased to $933 million as of September 30, 2025, from $364 million at year-end 2024.

Outlook and guidance

• 2025 guidance for TDS Telecom remains unchanged: operating revenues of $1,030–$1,050 million, Adjusted EBITDA of $320–$350 million, and capital expenditures of $375–$425 million.

• Capital expenditures for 2025 expected between $375 million and $425 million, focused on fiber expansion and infrastructure.

• E-ACAM program expected to upgrade 300,000 addresses from copper to fiber, with most builds over the next 3 years and $1.2 billion in revenues through 2038.

• Expect to close $1 billion AT&T spectrum transaction in Q4 2025 or H1 2026, with additional spectrum sales closing in 2026.

• Array expects further special dividends upon closing pending spectrum sales to AT&T and Verizon.