company_name (TDS) quarter year Financial Results Summary
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Telephone and Data Systems, Inc. (TDS) Q4 2025 Financial Results Summary
Release Date: February 20, 2026
Telephone and Data Systems, Inc. (TDS) reported its financial results for the fourth quarter and full year of 2025, revealing significant changes and improvements in several areas:
Overview
- TDS is undergoing major transformations, including:
- Sale of its wireless business.
- Launch of a new tower company named Array.
- Increased focus on its fiber broadband strategy with the deployment of new service addresses.
Highlights
- Share Repurchase:
-
TDS repurchased 1,765,863 Common Shares for $67.4 million in Q4 2025.
-
Debt Repayment:
- Repaid $150 million of Export Development Canada debt in January 2026.
TDS Telecom Performance
- Fiber Strategy Achievements:
- Fiber net additions grew by 44,900 in 2025.
- 140,000 new marketable fiber service addresses deployed during the year.
- Marketable Fiber Service Goal:
- Increased the target to 2.1 million addresses, an addition of 300,000 addresses.
Array Performance
- Site Rental Revenue Growth:
- Achieved a 51% growth in site rental revenues compared to the previous year.
- Spectrum Sale:
- Closed on the sale of wireless spectrum with AT&T on January 13, 2026, for $1.018 billion.
- Special Dividend:
- Paid $10.25 per share as a special dividend on February 2, 2026.
Financial Results
Q4 2025 vs. Q4 2024
- Total Operating Revenues:
- Q4 2025: $330.7 million
- Q4 2024: $295.3 million
-
Growth: 12%
-
Net Income:
- Q4 2025: $37.2 million
- Q4 2024: $1.0 million
-
Growth: N/M (Net income from continuing operations grew significantly.)
-
Diluted Earnings Per Share (EPS):
- Q4 2025: $0.32
- Q4 2024: $0.01
- Growth: N/M
Full Year Results 2025 vs. 2024
- Total Operating Revenues:
- 2025: $1,228.2 million
- 2024: $1,297.0 million
-
Decrease: 5%
-
Net Income:
- 2025: $48.2 million
- 2024: $(141.4) million
-
Recovery: Significant improvement year-over-year.
-
Diluted EPS:
- 2025: $0.39
- 2024: $(1.24)
- Recovery: Marked increase illustrating return to profitability.
Future Guidance for 2026
- 2026 Estimated Results for TDS Telecom and Array:
- Total Operating Revenues: TDS Telecom estimated between $1,015-$1,055 million.
- Adjusted OIBDA: Estimated at $300-$340 million.
- Capital Expenditures: Expected to range from $550-$600 million.
Churn and Revenue Management
- Residential Fiber Connections:
- Noted a 1.2% churn rate for residential fiber, which is an improvement from previous periods.
- Residential Revenue per Connection: Increased to $65.95.
Summary
TDS’s Q4 and full-year 2025 results illustrate important strategic shifts, improved financial outcomes, and a clear focus on growth through fiber deployment and its tower subsidiary, Array. The declared quarterly dividend and share repurchase reflect the company’s commitment to returning value to shareholders while managing debt effectively.
Telephone and Data Systems, Inc. Consolidated Statement of Operations Highlights
(Unaudited, Dollars and shares in thousands, except per share amounts)
| Three Months Ended | Year Ended | |||
|---|---|---|---|---|
| December 31, 2025 | vs. 2024 | December 31, 2025 | vs. 2024 | |
| Operating revenues | ||||
| TDS Telecom | $260,956 | $264,295 | $1,038,358 | $1,060,857 |
| Array | $60,328 | $26,089 | $162,961 | $102,933 |
| All Other1 | $9,428 | $4,964 | $26,888 | $133,188 |
| Total Operating Revenues | $330,712 | $295,348 | $1,228,207 | $1,296,978 |
| Operating expenses | ||||
| TDS Telecom | ||||
| Expenses excluding depreciation, amortization and accretion | $179,941 | $187,101 | $725,672 | $720,517 |
| Depreciation, amortization and accretion | $76,720 | $71,713 | $300,196 | $270,660 |
| Loss on impairment of intangible assets | $900 | $1,103 | $900 | $1,103 |
| (Gain) loss on asset disposals, net | $7,163 | $4,032 | $15,054 | $12,376 |
| (Gain) loss on sale of business and other exit costs, net | -$17,886 | -$49,108 | -$23,121 | -$49,108 |
| Total operating expenses | $313,882 | $278,469 | $1,325,592 | $1,488,237 |
| Operating income (loss) | ||||
| TDS Telecom | $14,118 | $49,454 | $19,657 | $105,309 |
| Array | $8,597 | -$29,119 | -$92,532 | -$260,335 |
| All Other1 | -$5,885 | -$3,456 | -$24,510 | -$36,233 |
| Total Operating Income | $16,830 | $16,879 | -$97,385 | -$191,259 |
| Other income (expense) | ||||
| Equity in earnings of unconsolidated entities | $26,792 | $38,506 | $176,101 | $163,623 |
| Interest and dividend income | $12,263 | $6,933 | $40,307 | $27,201 |
| Interest expense | -$12,316 | -$29,657 | -$112,668 | -$108,575 |
| Short-term imputed spectrum lease income | $38,619 | — | $69,033 | — |
| Other, net | $3,112 | $2,541 | $13,574 | $5,622 |
| Total other income | $68,470 | $18,323 | $186,347 | $87,871 |
| Income (loss) before income taxes | $85,300 | $35,202 | $88,962 | -$103,388 |
| Income tax expense (benefit) | $22,936 | $14,728 | -$62,184 | -$22,067 |
| Net income (loss) from continuing operations | $62,364 | $20,474 | $151,146 | -$81,321 |
| Less: | ||||
| Net income (loss) from continuing operations attributable to noncontrolling interests, net of tax | $7,839 | $2,163 | $33,742 | -$9,150 |
| Net income (loss) from continuing operations attributable to TDS shareholders | $54,525 | $18,311 | $117,404 | -$72,171 |
Telephone and Data Systems, Inc. Consolidated Balance Sheet Highlights
(Unaudited, Dollars in thousands)
| December 31, 2025 | December 31, 2024 | ||
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash and cash equivalents | $765,952 | $363,612 | |
| Accounts receivable, net | $109,981 | $98,552 | |
| Inventory, net | $4,062 | $4,052 | |
| Prepaid expenses | $28,206 | $32,367 | |
| Income taxes receivable | $1,292 | $2,487 | |
| Current assets of discontinued operations | — | $1,163,032 | |
| Other current assets | $13,976 | $31,088 | |
| Total current assets | $923,469 | $1,695,190 | |
| Non-current assets held for sale | $1,598,131 | $12 | |
| Non-current assets of discontinued operations | — | $4,499,561 | |
| Licenses | $1,642,972 | $3,289,648 | |
| Other intangible assets, net | $131,673 | $160,804 | |
| Investments in unconsolidated entities | $461,922 | $500,471 | |
| Property, plant and equipment, net | $2,965,455 | $2,876,214 | |
| Operating lease right-of-use assets | $515,081 | $520,902 | |
| Other assets and deferred charges | $159,600 | $139,430 | |
| Total assets | $8,398,303 | $13,682,232 | |
| Liabilities and Equity | |||
| Current liabilities | |||
| Current portion of long-term debt | $5,274 | $31,131 | |
| Accounts payable | $115,822 | $74,866 | |
| Customer deposits and deferred revenues | $125,140 | $46,992 | |
| Accrued interest | $2,836 | $8,999 | |
| Accrued taxes | $46,721 | $36,561 | |
| Accrued compensation | $56,774 | $147,061 | |
| Short-term operating lease liabilities | $26,180 | $27,529 | |
| Current liabilities of discontinued operations | $20,242 | $671,575 | |
| Other current liabilities | $41,322 | $44,980 | |
| Total current liabilities | $440,311 | $1,089,694 | |
| Non-current liabilities of discontinued operations | — | $2,310,660 | |
| Deferred liabilities and credits | |||
| Deferred income tax liability, net | $743,633 | $980,769 | |
| Long-term operating lease liabilities | $549,617 | $540,904 | |
| Other deferred liabilities and credits | $574,025 | $460,676 | |
| Long-term debt, net | $823,364 | $2,415,686 | |
| Noncontrolling interests with redemption features | — | $15,831 | |
| Total equity | $5,267,353 | $5,868,012 | |
| Total liabilities and equity | $8,398,303 | $13,682,232 |