Telephone and Data Systems (TDS) Q4 2025 earnings summary

Executive summary

• 2025 was a transformative year, marked by the divestiture of wireless operations, major spectrum sales, and the launch of Array as a standalone tower company, strengthening the balance sheet and positioning for fiber and tower growth.

• Closed a $1.018 billion spectrum sale to AT&T in January 2026, enabling a $10.25/share special dividend and significant debt repayment.

• TDS Telecom expanded its fiber footprint to 1.06 million addresses, delivering 140,000 new marketable fiber addresses in 2025, with a strong acceleration in the second half.

• Array's tower business saw robust growth, with cash site rental revenue up 64% year-over-year and a strong pipeline for new colocation applications.

• Focused on strengthening corporate culture and capital structure, with new CEOs appointed across divisions.

Financial highlights

• TDS Telecom's Q4 2025 operating revenues were $261M, down 1% year-over-year; full-year 2025 revenues were $1.038B, down 2%.

• Adjusted EBITDA for TDS Telecom was $85M in Q4 2025 (up 6% YoY) and $330M for the year (down 6% YoY), mainly due to divestitures and compensation adjustments.

• Array Q4 2025 site rental revenues rose 96% YoY to $49.8M; total operating revenues for 2025 were $163M, up 58%.

• TDS invested $67 million in Q4 to repurchase 1.8 million shares, with $524 million remaining on its repurchase authorization.

• Q4 2025 net income attributable to common shareholders was $37.2M ($0.32/share), up from $1.0M ($0.01/share) year-over-year.

Outlook and guidance

• TDS Telecom 2026 guidance: total revenues of $1.015–$1.055 billion, Adjusted EBITDA of $310–$350 million, and CapEx of $550–$600 million.

• Targeting 200,000–250,000 new marketable fiber addresses in 2026, up from 140,000 in 2025.

• Array 2026 guidance: total operating revenue of $200–$215 million, Adjusted EBITDA of $200–$215 million, and CapEx of $25–$35 million.

• Guidance excludes DISH revenue due to ongoing payment disputes; any settlement would be upside.

• Strategic focus on expanding fiber business and monetizing remaining spectrum assets.