TDS reports second quarter 2025 results
CHICAGO, Aug. 11, 2025 /PRNewswire/ --
As previously announced, TDS will hold a teleconference on August 11, 2025, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.
Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,186 million for the second quarter of 2025, versus $1,238 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share were $(5) million and $(0.05), respectively, for the second quarter of 2025 compared to $(14) million and $(0.13), respectively, in the same period one year ago.
Recent Highlights*
Array
On August 1, 2025, United States Cellular Corporation changed its name to Array Digital Infrastructure, Inc.SM (ArraySM)
On August 1, 2025, Array completed the sale of its wireless operations and select spectrum assets to T-Mobile for total consideration of $4.3 billion which includes a combination of cash and assumed debt
Array declared a $23.00 per share special dividend payable to its shareholders on August 19, 2025
Third-party tower revenues increased 12%
Pending AT&T and Verizon spectrum transactions are expected to close in 2H 2025 and Q3 2026, respectively, subject to receipt of regulatory approvals and satisfaction of closing conditions
TDS Telecom
Ken Dixon joined the organization as TDS Telecom President and CEO
Executing on fiber broadband strategy
Delivered 27,000 marketable fiber services addresses in Q2 2025
Added 3,900 residential broadband net additions; Grew fiber connections, 10,300 residential broadband net adds from fiber markets
TDS Telecom revenues down 1%, impacted by divestitures of non-strategic assets
*Comparisons are 2Q'24 to 2Q'25 unless otherwise noted. Note that in September 2024, TDS sold its Hosted and Managed Services (HMS) operations. This 2024 transaction affects year-over-year revenue comparisons at the consolidated level. HMS operating revenues were $38 million in Q2 2024.
"TDS has made significant progress on its strategic priorities," said Walter Carlson, TDS President and CEO. "With the successful completion of the T-Mobile transaction, we delivered a key milestone in the company's transformation, and positioned the continuing tower business for growth and value creation. Additionally, we are delighted that Ken Dixon, CEO of TDS Telecom, has joined the organization at a pivotal time for our fiber business. With a growing fiber network and strengthened tower operations, I see tremendous opportunities ahead for the TDS enterprise."
2025 Estimated ResultsTDS' current estimates of full-year 2025 results for TDS Telecom are shown below. Such estimates represent management's view as of August 11, 2025 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.
Array is not providing 2025 financial guidance.
2025 Estimated Results
TDS Telecom
Previous
Current
(Dollars in millions)
Total operating revenues
$1,030-$1,070
$1,030-$1,050
Adjusted OIBDA1 (Non-GAAP)
$310-$350
$310-$340
Adjusted EBITDA1 (Non-GAAP)
$320-$360
$320-$350
Capital expenditures
$375-$425
Unchanged
The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2025 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.
2025 Estimated Results
Actual Results
TDS Telecom
Six Months Ended
June 30, 2025
Year Ended
December 31, 2024
(Dollars in millions)
Net income (GAAP)
N/A
$ 20
$ 85
Add back:
Income tax expense
N/A
3
35
Income before income taxes (GAAP)
$20-$50
$ 23
$ 120
Add back:
Interest expense
—
(2)
(5)
Depreciation, amortization and accretion expense
300
145
271
EBITDA (Non-GAAP)1
$320-$350
$ 165
$ 385
Add back or deduct:
Loss on impairment of intangible assets
—
—
1
(Gain) loss on asset disposals, net
—
8
12
(Gain) loss on sale of business and other exit costs, net
—
(8)
(49)
Adjusted EBITDA (Non-GAAP)1
$320-$350
$ 165
$ 350
Deduct:
Interest and dividend income
5
3
5
Other, net
5
4
4
Adjusted OIBDA (Non-GAAP)1
$310-$340
$ 158
$ 340
Numbers may not foot due to rounding.
1
EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS' operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS' financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes.
Conference Call InformationTDS will hold a conference call on August 11, 2025 at 9:00 a.m. Central Time.
Access the live call on the Events & Presentations page of investors.tdsinc.com or athttps://events.q4inc.com/attendee/378403075
Access the call by phone at (888)330-2384, conference ID: 1328528.
Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com.
About TDSTelephone and Data Systems, Inc. (TDS) provides broadband, video and voice through its TDS Telecom business. Its Array business leases and offers tower space to third-party carriers. Founded in 1969, TDS is headquartered in Chicago.
Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: the manner in which Array's remaining business is conducted; whether the previously announced spectrum license sales to Verizon and AT&T will be consummated; whether Array can monetize its remaining spectrum assets; strategic decisions regarding the tower business; intense competition; Array's reliance on a small number of tenants for a substantial portion of its revenues; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and Array indebtedness or comply with the terms of debt covenants; the effect on TDS' business if the collateral securing its secured term loan is foreclosed upon; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities Array does not control; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; extreme weather events; and the impact, duration and severity of public health emergencies. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.
For more information about TDS and its subsidiaries, visit:TDS: www.tdsinc.com Array: investors.arrayinc.comTDS Telecom: www.tdstelecom.com
Array Digital Infrastructure, Inc.
Summary Operating Data (Unaudited)
As of or for the Quarter Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
Retail Connections
Postpaid
Total at end of period
3,904,000
3,946,000
3,985,000
3,999,000
4,027,000
Gross additions
109,000
105,000
140,000
123,000
117,000
Handsets
70,000
68,000
93,000
84,000
73,000
Connected devices
39,000
37,000
47,000
39,000
44,000
Net additions (losses)
(42,000)
(39,000)
(14,000)
(28,000)
(24,000)
Handsets
(44,000)
(38,000)
(19,000)
(28,000)
(29,000)
Connected devices
2,000
(1,000)
5,000
—
5,000
ARPU1
$ 51.91
$ 52.06
$ 51.73
$ 52.04
$ 51.45
ARPA2
$ 131.89
$ 132.25
$ 131.10
$ 131.81
$ 130.41
Handset upgrade rate3
4.2 %
3.1 %
4.8 %
3.5 %
4.1 %
Churn rate4
1.29 %
1.21 %
1.29 %
1.25 %
1.16 %
Handsets
1.12 %
1.03 %
1.08 %
1.07 %
0.97 %
Connected devices
2.36 %
2.40 %
2.67 %
2.47 %
2.47 %
Prepaid
Total at end of period
429,000
431,000
448,000
452,000
439,000
Gross additions
43,000
38,000
46,000
57,000
50,000
Net additions (losses)
(2,000)
(17,000)
(4,000)
13,000
3,000
ARPU1
$ 31.72
$ 30.76
$ 30.59
$ 32.01
$ 32.37
Churn rate4
3.58 %
4.17 %
3.70 %
3.30 %
3.60 %
Market penetration at end of period
Consolidated operating population
31,390,000
31,390,000
32,550,000
32,550,000
32,550,000
Consolidated operating penetration5
14 %
14 %
14 %
14 %
14 %
Capital expenditures (millions)
$ 80
$ 53
$ 162
$ 120
$ 165
Total cell sites in service
7,061
7,009
7,010
7,007
6,990
Owned towers
4,418
4,413
4,409
4,407
4,388
Number of colocations6
2,527
2,469
2,444
2,418
2,392
Tower tenancy rate7
1.57
1.56
1.55
1.55
1.55
1
Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:
•
Postpaid ARPU consists of total postpaid service revenues and postpaid connections.
•
Prepaid ARPU consists of total prepaid service revenues and prepaid connections.
2
Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.
3
Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections.
4
Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.
5
Market penetration is calculated by dividing the number of retail wireless connections at the end of the period by the total estimated population of consolidated operating markets. The methodology for the calculation was updated in the second quarter of 2025 and prior periods were revised to reflect this change.
6
Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower.
7
Average number of tenants that lease space on company-owned towers, measured on a per-tower basis.
TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
Residential connections
Broadband
Incumbent Fiber
121,200
119,700
118,500
115,900
113,100
Incumbent Copper
106,500
112,600
116,900
125,600
130,600
Expansion Fiber
141,800
133,200
126,100
115,300
107,800
Cable
188,200
190,200
191,500
195,900
198,500
Total Broadband
557,700
555,800
553,000
552,700
550,000
Video
116,500
118,700
121,000
122,100
124,800
Voice
248,700
256,900
261,600
271,300
275,600
Wireless
1,600
900
100
—
—
Total Residential connections
924,500
932,300
935,700
946,100
950,400
Commercial connections
184,300
187,600
190,500
197,200
201,500
Total connections1
1,108,800
1,119,900
1,126,300
1,143,300
1,152,000
Total residential fiber net adds
10,300
8,300
13,600
10,400
10,700
Total residential broadband net adds
3,900
2,800
7,900
2,700
2,100
Residential fiber churn2
1.1 %
0.9 %
1.0 %
1.3 %
1.2 %
Total residential broadband churn
1.5 %
1.3 %
1.4 %
1.7 %
1.7 %
Residential revenue per connection3
$ 65.85
$ 65.67
$ 64.72
$ 65.41
$ 65.26
Capital expenditures (millions)
$ 90
$ 59
$ 82
$ 78
$ 78
Numbers may not foot due to rounding.
1
Q2 2024 total connections include 23,700 connections that were part of subsequent divestitures.
2
Residential fiber churn represents the percentage of incumbent and expansion fiber connections that disconnected service each month. These rates represent the average monthly churn rate for each respective period.
3
Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.
Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
vs. 2024
2025
2024
2025
vs. 2024
(Dollars and shares in millions, except per share amounts)
Operating revenues
Array
$ 916
$ 927
(1) %
$ 1,807
$ 1,877
(4) %
TDS Telecom
265
267
(1) %
522
534
(2) %
All Other1
5
44
(88) %
12
89
(88) %
1,186
1,238
(4) %
2,341
2,500
(6) %
Operating expenses
Array
Expenses excluding depreciation, amortization and accretion
720
713
1 %
1,407
1,442
(2) %
Depreciation, amortization and accretion
163
165
(1) %
325
329
(2) %
(Gain) loss on asset disposals, net
2
5
(53) %
4
11
(60) %
(Gain) loss on license sales and exchanges, net
(4)
8
N/M
(5)
7
N/M
881
891
(1) %
1,731
1,789
(3) %
TDS Telecom
Expenses excluding depreciation, amortization and accretion
180
178
1 %
364
351
4 %
Depreciation, amortization and accretion
73
67
10 %
145
131
10 %
(Gain) loss on asset disposals, net
6
4
61 %
8
6
39 %
(Gain) loss on sale of business and ...
