Telephone and Data : First Quarter 2026 TDS First Quarter 2026 Presentation

Published: 2026-05-08 07:53:16 ET TDS

Published on 05/08/2026 at 07:53 am EDT

May 8, 2026

Strengthen TDS' corporate and capital structure

Grow TDS Telecom's fiber business

Opportunistically

monetize remaining spectrum

Support Array's

success as a tower company

Continue to

strengthen TDS' culture

2026 Enterprise - Priorities

Fiber Deployment

Continued progress to deliver 2.1 million marketable fiber service addresses; delivering 40,000 in the quarter

Disciplined, Synergistic M&A

Announced agreement to acquire 11,000 fiber addresses in New Hampshire(1) and continue to review funnel of attractive opportunities

Shareholder Return

No repurchases in the quarter; ~$520M remaining under the current authorizations

(1) Subsequent Event: Announced agreement to acquire Granite State Communications in April, expect transaction to close 3Q'26, subject to regulatory approval

Capital Update

Delivered 40,000 new marketable fiber addresses in Q1 2026; up

~180% from Q1 2025

Added 10,900 residential fiber connections in Q1 2026; up over 30% from Q1 2025

Continued operational transformation efforts to drive efficiencies and improvements

Announced Granite State Communications acquisition in April(1)

(1) Subsequent Event: Announced agreement to acquire Granite State Communications in April, expect transaction to close 3Q'26, subject to regulatory approval

Q1 2026 Highlights

Goal:

2.1 million

marketable

fiber service addresses(1)

Goal:

80%

service addresses

served by fiber

Goal:

95%

service addresses with

multi-gig speeds

Where we are:

(1) Marketable service addresses includes single residence homes, multi-dwelling units, and business locations that are capable of being connected to the TDS network, based on best available information.

Update on Long-Term Goals

New Marketable Fiber Addresses

Total Marketable Fiber Service

Addresses

81%

~180%

70,000 1,200,000

60,000

1,000,000

50,000

800,000

40,000

600,000

30,000

20,000

10,000

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

400,000

200,000

Q1'23 Q1'24 Q1'25 Q1'26

Fiber drives footprint growth

Residential Fiber Net Additions Residential Fiber Connections

1.9x

32%

16,000 350,000

14,000

300,000

12,000

250,000

10,000

8,000

6,000

200,000

150,000

4,000

100,000

2,000

50,000

Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q1'23 Q1'24 Q1'25 Q1'26

Fiber drives residential connection growth

$67.50

$65.00

Residential Revenue

per Connection

$200

$175

$150

$125

$100

Residential Revenue

by Technology ($M)

$184

$179

$31

$41

$58

$64

$90

$79

Note:

Divested markets accounted for a

$3M decrease in residential revenue year-over-year

$62.50

$60.00

$66.41

$65.67

Q1'25 Q1'26

$75

$50

$25

Q1'25 Q1'26

Fiber includes revenue from customers at fiber-capable addresses in non-cable markets.

Cable includes revenue from cable markets served using coaxial cable and fiber technologies.

Fiber(1) Cable(2) Copper

Quarterly revenue results

($M)

Q1'26

Q1'25

Change

Total operating revenues (1) $ 250 $ 257 (3)%

Cash expenses

$ 178

$ 184

(3)%

Adjusted EBITDA (2) (Non-GAAP)

$ 74

$ 76

(3)%

Capital expenditures

$ 126

$ 59

N/M

Divestitures in 2025 drove a decrease of $6M year-over-year.

See appendix for explanation and reconciliation to most directly comparable GAAP measure.

TDS Telecom financial performance

($M)

As of May 8, 2026

2026

Estimates

Total operating revenues

$1,015-$1,055

Adjusted EBITDA (2) (Non-GAAP)

$310-$350

Adjusted OIBDA (2) (Non-GAAP) $300-$340 Capital expenditures $550-$600

There can be no assurance that final results will not differ materially from such estimated results. See Safe Harbor Statement on Slide 2.

See appendix for explanation and reconciliation to most directly comparable GAAP measure.

2026 TDS Telecom guidance(1)

Growing Tower Business

Spectrum

Non-controlling Investment Interests

100% U.S.

4,452 Owned towers

Continue to

opportunistically monetize

Principally C-Band

Non-controlling investment interests generate meaningful income and distributions

Array Value Pillars

Cash site rental revenue increased 64% over prior year

(excludes T-Mobile Interim revenues and DISH revenues)

Sequential growth in tower tenancy ratio, excluding DISH Continue to monetize spectrum

Closed transaction with AT&T in January 2026 - $1.018 billion; issued $10.25 special dividend

Closed on certain 700 MHz spectrum licenses with T-Mobile on May 5 - $74.8 million

Expect to close on certain 600 MHz spectrum licenses with T-Mobile May 2026 - $86.4 million

Expect to close transaction with Verizon in Q2/Q3 2026 - $1 billion

Q1 2026 Highlights

0.96

0.95

0.94

16%

47%

18%

15%

AT&T Verizon

Other (2)

Q3 25 Q4 25 Q1 26

Owned Towers

4,449

4,450

4,452

Number of Colocations (3)

4,184

4,239

4,290

Tower Tenancy Rate (3)

0.94

0.95

0.96

Includes ~600 existing pre-MLA sites and the 2,015 MLA Committed Sites

Excludes DISH

Excludes DISH across all periods as well as T-Mobile Interim sites; includes T-Mobile Committed sites

Towers - Q1 2026 operating highlights

(Dollars in thousands) Q1'26 Q1'25

Total Cash Site Rental Revenues

Cash site rental revenue

New leases since March 31, 2025

1,135

T-Mobile MLA - Committed Sites

14,153

T-Mobile MLA - Interim Sites

8,133

Total cash site rental revenue

$48,151

$25,859

Non-cash revenue

Straight line revenue adjustment

2,143

342

Amortization of prepaid rent

730

394

Total non-cash site revenue

$2,873

$736

Existing leases (1,2) $24,730 $25,859

$24,366

$1,493

$25,859

($ thousands)

$48,151

YOY Change

$25,865

$14,153

$8,133

(excluding DISH)

+ 98% total

+ 64%

excluding Interim Sites

+ 6% excluding Committed and Interim Sites

Site rental revenues $51,024 $26,595

Q1'25 Q1'26

Existing Base

DISH

Existing leases includes the impact of escalators and amendments to existing leases.

Includes ~600 T-Mobile pre-MLA existing sites; 2025 incudes ~$1.5M of DISH revenue, DISH has been removed starting Q1 '26.

Site rental revenues

T-Mobile has until January 2028 to finalize Committed Site selection, after which Array estimates owning between 800 - 1,800 tenantless (naked) towers

Tenantless (naked) towers

Ongoing lease up efforts

Ground rent rationalization

Assess alternatives, including decommissioning

Executing simultaneously - Multi-year process

Tower tenancy post T-Mobile integration

Reached agreements to monetize over 70% of Array's total spectrum holdings, measured on a MHz-Pops basis, including the T-Mobile transaction

CLOSED

PENDING

FUTURE

OPPORTUNITIES

T-Mobile

Type MHz-Pop

AT&T

Type MHz-Pop

August 2025

January 2026

600 MHz (1)

361

3.45 GHz

1,250

700 MHz (A Block)

319

700 MHz B/C

331

AWS

563

PCS

443

2.5 GHz

24 GHz (2)

May 2026

700 MHz (A Block) 89

Other

September 2025

700 MHz 2

CBRS 3

C-Band 7

Verizon

Type MHz-Pop

October 2024

Cellular

663

AWS

PCS

T-Mobile

Type MHz-Pop

August 2025

700 MHz (A Block)

October 2025

600 MHz (1)

195

AWS

Type

MHz-Pop

CBRS

C-Band (3.7 GHz)

1,640

28 GHz (2)

37/39 GHz (2)

33 MHz and $20M of 600 MHz Put/Call remains

Included in sale to Verizon Subsequent T-Mobile transactions (Announced Oct. 18, 2024)

Gross proceeds: $1 billion Gross proceeds: $103 million Array cash taxes: $210-$260 million Array cash taxes: ~$15 million Expected close: 2Q/3Q 2026 Expected close: 2026

Quantification of mmWave MHz-Pops not included in the table

Opportunistically monetizing spectrum

(Dollars in millions)

2023

2024

2025 (1)(2)(3)

Three months ended March 31, 2026(4)

Equity in earnings of unconsolidated entities

$158

$161

$174

$40

Distributions from unconsolidated entities

$150

$169

$216 $18

Array has investments in three companies in the state of Iowa. On August 1, 2025, in three separate transactions, these entities sold their wireless operations to T-Mobile. Array recognized $33 million of equity income and received $42 million of distributions in the third quarter of 2025 related to these three transactions.

Certain Array investments in Verizon wireless operating companies were subject to Verizon's prepaid lease transaction with Vertical Bridge. Array received distributions from these investments in the aggregate amount of $25 million in the first half of 2025 related to this transaction.

Prior period adjustments made by the managers of certain investee entities had the impact of reducing distributions from investee operations in 2025.

In the first quarter 2026, equity income was elevated due to prior-period adjustments recorded by the managers of certain investee entities. Regarding distributions, certain entities distribute cash only twice per year, resulting in an uneven distribution pattern throughout the year.

Non-controlling investment interests provide significant cash flow

(Dollars in thousands)

Quarter ended March

31, 2026

16%

25%

59%

Tower builds and augmentation (1) $ 5,132 Purchase of land interests 2,125

Maintenance and other 1,388

Total $ 8,645

For Q1 this includes primarily non-recurring costs associated with installing tower lighting equipment after certain equipment conveyed to T-Mobile upon the sale of Array's wireless operations.

Capital Expenditures - Towers

($ thousands)

Q1'26

Q1'25

Change

Site rental

$ 51,024

$ 26,595

92 %

N/M

Services

988

389

Total operating revenues

52,012

26,984

93 %

Cost of operations

21,609

16,290

33 %

Selling, general and administrative

12,745

29,202

(56)%

Expenses related to strategic alternatives review

(187)

(1,145)

84 %

Total cash expenses

(1)

34,167

44,347

(23)%

Adjusted OIBDA (1) (Non-GAAP)

17,845

(17,363)

N/M

Equity in earnings of unconsolidated entities

40,408

35,927

12 %

Interest and dividend income

4,223

2,658

59 %

Other, net

(14)

N/M

Adjusted EBITDA (1) (Non-GAAP)

$ 62,462 $

21,222

N/M

Adjusted Free Cash Flow (1)

30,653

See appendix for explanation and reconciliation to most directly comparable GAAP measure.

Array operating performance

($M)

As of May 8, 2026

2026

Estimates

Total operating revenues

$200-$215

Adjusted EBITDA (2) (Non-GAAP)

$200-$215

Adjusted OIBDA (2) (Non-GAAP)

$50-$65

Capital expenditures

$25-$35

There can be no assurance that final results will not differ materially from such estimated results. See Safe Harbor Statement on Slide 2.

See appendix for explanation.

2026 Array guidance(1)

‌($ in thousands)

TDS Telecom

Array

TDS*

TDS Telecom

Array

TDS*

Net income (loss) from continuing operations (GAAP)

$ 1,047

$ 180,024

$ 179,427

$ 3,527

$ 5,483

$ (4,207)

Add back:

Income tax expense (benefit)

(2,089)

52,398

54,408

1,135

(192)

(8,123)

Income (loss) before income taxes (GAAP)

$ (1,042)

$ 232,422

$ 233,835

$ 4,662

$ 5,291

$ (12,330)

Add back:

Interest expense

(157)

7,180

5,321

(1,465)

3,667

23,909

Depreciation, amortization and accretion expense

72,555

12,604

85,943

71,440

11,993

84,329

EBITDA (1) (Non-GAAP)

$ 71,356

$ 252,206

$ 325,099

$ 74,637

$ 20,951

$ 95,908

Add back or deduct:

Expenses related to strategic alternatives review

187

1,148

1,145

1,301

(Gain) loss on asset disposals, net

833

904

1,810

1,662

226

1,888

(Gain) loss on sale of business and other exit costs, net

1,562

(998)

(Gain) loss on license sales and exchanges, net

(156,635)

(150,878)

(1,100)

Short-term imputed spectrum lease income

(34,200)

Adjusted EBITDA (1) (Non-GAAP)

73,838

62,462

144,541

76,323

21,222

96,999

Deduct:

Equity in earnings of unconsolidated entities

40,408

41,902

35,927

36,518

Interest and dividend income

1,145

4,223

13,786

1,401

2,658

6,270

Other, net

1,388

(14)

5,450

1,937

2,725

Adjusted OIBDA (1) (Non-GAAP)

$ 71,305

$ 17,845 $

83,403

$ 72,985

$ (17,363) $

51,486

* The TDS column includes TDS Telecom, Array, corporate and other operations and intercompany eliminations.

(1) See final slide for explanation.

Adjusted OIBDA and Adjusted EBITDA Reconciliation

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

Adjusted OIBDA and Adjusted EBITDA Reconciliation -2026 Estimated Results and 2025 Actual Results

In providing 2026 estimated results, TDS has not completed the below reconciliation to net income because it does not provide guidance for income taxes. TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, the company is unable to provide such guidance.

2026 Estimated Results

December 31, 2025

($M)

Net income (GAAP)

Add back:

TDS Telecom

N/A

TDS Telecom

$28

Income tax expense

N/A

Income (loss) before income taxes (GAAP)

($15)-$25

$38

Add back:

Interest expense

(7)

Depreciation, amortization and accretion expense

325

300

EBITDA (1) (Non-GAAP)

$310-$350

$331

Add back or deduct:

Expenses related to strategic alternatives review

Loss on impairment of intangible assets

(Gain) loss on asset disposals, net

(Gain) loss on sale of business and other exit costs, net

(23)

Adjusted EBITDA (1) (Non-GAAP)

$310-$350

$330

Deduct:

Interest and dividend income

Other, net

Adjusted OIBDA (1) (Non-GAAP)

$300-$340

$319

Numbers may not foot due to rounding.

(1) See final slide for explanation.

Actual Results Year ended

Adjusted OIBDA and Adjusted EBITDA Reconciliation -2026 Estimated Results and 2025 Actual Results

In providing 2026 estimated results, Array has not completed the below reconciliation to net income because it does not provide guidance for income taxes. Array believes that the impact of income taxes cannot be reasonably predicted; therefore, the company is unable to provide such guidance.

2026 Estimated Results

December 31, 2025

($M)

Net income from continuing operations (GAAP)

Add back:

Array

N/A

Array

$172

Income tax expense (benefit)

N/A

(31)

Income before income taxes (GAAP)

$770-$785

$141

Add back:

Interest expense

Depreciation, amortization and accretion expense

EBITDA (1) (Non-GAAP)

$865-$880

$218

Add back or deduct:

Expenses related to strategic alternatives review

Loss on impairment of licenses

(Gain) loss on asset disposals, net

(Gain) loss on license sales and exchanges, net

(590)

(6)

Short-term imputed spectrum lease income

(75)

(69)

Adjusted EBITDA (1) (Non-GAAP)

$200-$215

$194

Deduct:

Equity in earnings of unconsolidated entities

140

174

Interest and dividend income

Adjusted OIBDA (1) (Non-GAAP)

$50-$65

Numbers may not foot due to rounding.

(1) See final slide for explanation.

Actual Results Year ended

Adjusted Free Cash Flow

(Dollars in thousands) Q1'26

Net income from continuing operations - Array (GAAP)

$ 180,024

Add back or deduct:

Income tax expense

52,398

Cash paid for income taxes

(220)

Stock-based compensation expense

227

Short-term imputed spectrum lease income

(34,200)

Amortization of deferred debt charges

319

Equity in earnings of unconsolidated entities

(40,408)

Distributions from unconsolidated entities

18,373

(Gain) loss on license sales and exchanges, net

(156,635)

(Gain) loss on asset disposals, net

904

Depreciation and accretion

12,604

Expenses related to strategic alternatives review

187

Straight line and other non-cash revenue adjustments

(2,874)

Straight line expense adjustment

1,342

Maintenance and other capital expenditures

(1,388)

Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP)

(1)

30,653

(1) See final slide for explanation.

Cash Expenses

Total cash expenses represent total operating expenses as shown in the Consolidated Statement of Operations Highlights in the TDS and Array SEC Forms 8-K, less depreciation, amortization and accretion and gain/losses.

EBITDA, Adjusted EBITDA and Adjusted OIBDA

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliations on slides 25 through 27. 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 and Array do not intend to imply that any such items set forth in the reconciliations on slides 25 through 27 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' and Array's operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as it provides additional relevant and useful information to investors and other users of TDS' and Array's 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, and expenses related to the strategic alternatives review. The tables on slides 25 through 27 reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for December 31, 2025, can be found on TDS' and Array's websites at investors.tdsinc.com and investors.arrayinc.com.

Adjusted Free Cash Flow (AFCF)

AFCF is a non-GAAP measure defined as Net income from continuing operations adjusted for the items set forth in the reconciliation on slide 28. AFCF is not a measure of financial performance under GAAP and should not be considered as an alternative to Net income from continuing operations or as an indicator of cash flows. Management believes AFCF is a useful measure of Array's cash generated from operations and its noncontrolling investment interests. The table on slide 28 reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure is presented following the sale of Array's wireless operations to T-Mobile on August 1, 2025, at which time the primary business operations for Array changed from providing wireless communications services to a standalone tower company.

Disclaimer

TDS - Telephone and Data Systems Inc. published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 11:52 UTC.