Telephone and Data Systems (TDS) Q1 2026 earnings summary

Executive summary

• Operating revenues rose 7% year-over-year to $309.5 million in Q1 2026, with net income attributable to shareholders at $144.6 million, reversing a prior-year loss, driven by spectrum sales and improved segment performance.

• TDS Telecom delivered 40,000 new marketable fiber addresses and 10,900 residential fiber net additions, while Array's site rental revenues surged up to 92% year-over-year.

• Major spectrum sales to AT&T and T-Mobile closed, with pending transactions with Verizon, resulting in substantial cash inflows and special dividends.

• A non-binding proposal was made for TDS to acquire all outstanding Array shares not already owned, aiming to simplify structure and enhance growth.

• Announced acquisition of Granite State Communications, expected to add 11,000 fiber addresses in New Hampshire and close in Q3 2026.

Financial highlights

• Adjusted EBITDA from continuing operations was $144.5 million, up 49% year-over-year; TDS Telecom Q1 2026 adjusted EBITDA was $74 million, down 3% year-over-year.

• Net income from continuing operations attributable to shareholders was $146.6 million, compared to a loss of $5.9 million in Q1 2025.

• Capital expenditures for Q1 2026 were $126 million for TDS Telecom and $8.6 million for Array, reflecting higher construction and tower build activity.

• Array's Q1 2026 operating revenues were $52 million, up 93% year-over-year, with adjusted EBITDA of $62 million.

• Cash and cash equivalents increased to $1.37 billion as of March 31, 2026.

Outlook and guidance

• 2026 guidance reaffirmed: TDS Telecom expects operating revenues of $1,015–$1,055 million, adjusted EBITDA $310–$350 million, and capex $550–$600 million.

• Array's 2026 guidance: operating revenues $200–$215 million, adjusted EBITDA $200–$215 million, capex $25–$35 million, with wider ranges due to T-Mobile MLA uncertainty.

• The company anticipates further proceeds and potential special dividends from pending spectrum sales to Verizon and T-Mobile.