Financial Performance - TDS reported total operating revenues of $308.5 million for Q3 2025, a decrease of 5.5% from $327.5 million in Q3 2024[2][4] - Net income attributable to TDS common shareholders was $40.2 million, with diluted earnings per share of $0.33, compared to a net loss of $100.4 million and a loss per share of $0.88 in the same period last year[2][4] - Operating revenues for TDS Telecom were $255,111, down 3% from $262,662 year-over-year[28] - Total operating revenues for TDS Telecom decreased by 3% to $255,111 for the three months ended September 30, 2025, compared to $262,662 in 2024[42] - Array's operating revenues surged by 83% to $47,119 from $25,739 year-over-year[28] - Operating revenues for the three months ended September 30, 2025, increased by 83% to $47,119,000 compared to $25,739,000 in 2024[44] - Site rental revenue rose by 79% to $45,838,000 for the three months ended September 30, 2025, compared to $25,669,000 in 2024[44] - The company reported a 30% increase in site rental revenue for the nine months ended September 30, 2025, totaling $99,663,000 compared to $76,591,000 in 2024[44] Operational Highlights - TDS Telecom experienced a 3% decline in revenues, impacted by $6 million due to divestitures of non-strategic assets[8] - The company crossed the milestone of 1 million fiber passings and delivered 42,000 marketable fiber services addresses in Q3 2025[5][8] - TDS Telecom reported 11,200 residential fiber net additions in Q3 2025, reflecting ongoing growth in fiber connections[8] - Total residential connections decreased to 921,100 from 924,500, a decline of 0.5% quarter-over-quarter[24] - Total broadband connections increased to 562,400, up from 557,700, representing a growth of 0.3%[24] - Residential fiber net adds for the quarter were 11,200, compared to 10,300 in the previous quarter, an increase of 8.7%[24] - TDS Telecom's residential expansion revenues increased by 37% to $39,610 for the three months ended September 30, 2025, compared to $28,878 in 2024[42] Shareholder Actions - TDS repurchased 1,077,564 common shares for $40.7 million during the third quarter and announced a new $500 million share repurchase program[14] - The company paid a special dividend of $23 per share on August 19, 2025, as part of its capital allocation strategy[8] Debt and Cash Management - The total assets as of September 30, 2025, were $8,532,378, a decrease from $13,682,232 as of December 31, 2024[38] - The total current liabilities decreased to $571,358 as of September 30, 2025, from $1,089,694 at the end of 2024[38] - The long-term debt, net, decreased to $825,312 as of September 30, 2025, from $2,415,686 at the end of 2024[38] - Cash and cash equivalents increased to $932,994 as of September 30, 2025, from $363,612 at the end of 2024[36] - The total equity decreased to $5,284,975 as of September 30, 2025, from $5,868,012 at the end of 2024[38] Earnings and Cash Flow - Net income from continuing operations attributable to TDS shareholders was $57,545, a significant recovery from a loss of $83,142 in the previous year[28] - Basic earnings per share from continuing operations attributable to TDS common shareholders improved to $0.35 from a loss of $0.88 year-over-year[30] - For the nine months ended September 30, 2025, the net income from continuing operations was $88,782, compared to a loss of $101,795 in the same period of 2024[33] - Cash provided by operating activities for continuing operations was $224,840 for the nine months ended September 30, 2025, up from $145,896 in 2024[33] - Free cash flow from continuing operations for the nine months ended September 30, 2025, was $(38,655,000), an improvement from $(124,027,000) in 2024[46] Impairment and Losses - Loss on impairment of licenses decreased by 65% to $47,679,000 for the three months ended September 30, 2025, compared to $136,234,000 in 2024[44] - The operating loss improved by 67% to $(53,313,000) for the three months ended September 30, 2025, compared to $(160,167,000) in 2024[44] - Adjusted EBITDA for the three months ended September 30, 2025, was $80,491,000, slightly down from $82,796,000 in 2024[48] - Array's net income from continuing operations for the three months ended September 30, 2025, was $109,920,000, a significant recovery from a loss of $(95,701,000) in 2024[49] - Adjusted Free Cash Flow from continuing operations for Array was $45,925,000 for the three months ended September 30, 2025[52] Leadership Changes - The appointment of Anthony Carlson as President and CEO of Array is effective November 16, 2025, to lead the growing tower business[6][8]

Core Insights - Anthony Carlson will become the President and CEO of Array Digital Infrastructure, Inc. on November 16, 2025, and will also join the Board of Directors [1][2] - Array Digital Infrastructure operates a portfolio of 4,400 owned towers and has noncontrolling investment interests in wireless partnerships and retained wireless spectrum [2] Leadership Transition - Doug Chambers, the Interim President and CEO of Array, will step down from the Board on November 16, 2025, but will remain as a Senior Advisor until December 9, 2025, to ensure a smooth transition [4] - Doug Chambers has been with TDS since 2007 and played a key role in the transformational sale of UScellular's wireless operations to T-Mobile US, Inc. [4][5] Company Background - Array Digital Infrastructure, Inc. is a leading owner and operator of shared wireless communications infrastructure in the United States, with over 4,400 cell towers supporting the deployment of 5G and other wireless technologies [5] - As of September 30, 2025, Telephone and Data Systems, Inc. owned approximately 82% of Array [5]

Core Insights - TDS announced a new $500 million share repurchase authorization, reflecting the Board's confidence in the company's long-term strategy and capital allocation approach [6][11] - TDS reported total operating revenues of $308.5 million for Q3 2025, a decrease of 6% from $327.5 million in Q3 2024 [19] - The company achieved a net income of $40.2 million for Q3 2025, a significant improvement compared to a net loss of $100.4 million in the same quarter last year [19] Financial Performance - TDS Telecom's operating revenues decreased by 3% year-over-year, impacted by $6 million due to divestitures of non-strategic assets [8] - Array, the standalone tower company, reported an 83% increase in operating revenues to $47.1 million in Q3 2025 compared to $25.7 million in Q3 2024 [19] - Total operating expenses for TDS decreased by 21% to $376.5 million in Q3 2025 from $477.2 million in Q3 2024 [19] Operational Highlights - TDS Telecom crossed the milestone of 1 million fiber passings and continued to execute its fiber expansion strategy, delivering 42,000 marketable fiber service addresses in Q3 2025 [3][8] - The company reported 11,200 residential fiber net additions in Q3 2025, indicating growth in fiber connections [8][17] - TDS completed the sale of wireless operations and select spectrum assets to T-Mobile, which is expected to enhance its financial flexibility [8] Leadership Changes - Anthony Carlson was appointed as President and CEO of Array, effective November 16, 2025, succeeding Doug Chambers [4][8] - Doug Chambers was recognized for his contributions in establishing Array as a standalone tower business [5] Future Outlook - TDS maintains its full-year 2025 revenue estimates for TDS Telecom at $1,030-$1,050 million, with adjusted OIBDA and EBITDA estimates unchanged at $310-$340 million and $320-$350 million, respectively [7][19] - The company is expected to continue its capital expenditures in the range of $375-$425 million for 2025 [7]

Core Viewpoint - Telephone and Data Systems, Inc. (TDS) and Array Digital Infrastructure (Array) will announce their third quarter operating results on November 7, 2025, with a conference call scheduled for 9:00 a.m. Central Time [1]. Group 1 - The financial results will be released on November 7, 2025 [1]. - The conference call will be available via webcast, both live and on-demand [1]. - Participants are advised to register at least 15 minutes prior to the presentation to ensure proper setup of multimedia streaming software [1]. Group 2 - TDS was founded in 1969 and provides broadband services and wireless infrastructure through its subsidiaries, TDS Telecom and Array Digital Infrastructure, Inc. [1].

Core Insights - The article discusses the economic momentum projected for Q2 2026, highlighting various factors influencing fiscal policies and geopolitical stability [1][2]. Economic Momentum - The anticipated economic momentum for Q2 2026 is projected at $4,400 billion, indicating a significant growth potential in the upcoming fiscal period [1][2]. Fiscal Policies - The article emphasizes the importance of fiscal policies in shaping economic outcomes, particularly in the context of ongoing geopolitical tensions and market volatility [1][2]. Geopolitical Factors - Geopolitical factors are identified as critical elements that could impact economic stability and growth, necessitating close monitoring by investors and policymakers [1][2]. Market Volatility - The discussion includes the potential for market volatility, which could arise from both domestic and international events, affecting investor confidence and economic forecasts [1][2]. Deficits - The article also touches on the implications of fiscal deficits, suggesting that managing these deficits will be crucial for maintaining economic momentum and stability in the future [1][2].

Summary of Telephone and Data Systems Conference Call Company Overview - **Company**: Array Digital Infrastructure, a tower company that emerged from UScellular after selling its wireless operations to T-Mobile on August 1, 2025. The company retained 4,400 towers and approximately 30% of its spectrum, along with minority stakes in wireless operating companies, generating annual income of about $150 million to $160 million [4][18]. Core Strategies and Financial Performance - **Revenue Growth**: Array reported a 12% revenue growth in Q2 2025, with a 7% growth when excluding application fees. Colocation applications increased over 100% in the first half of 2025 compared to the same period in 2024 [8][15][30]. - **Colocation Focus**: The company is focusing on colocation growth, particularly with T-Mobile committing to colocate on 2,015 sites, which is expected to increase cash revenue by 50% starting August 1, 2025 [9][11]. - **Operational Efficiency**: Array has brought its sales team in-house, which has contributed to improved performance. The company operates with a lean organizational structure, relying on TDS for back-office functions [12][13]. Market Position and Competitive Advantage - **Rural Focus**: Array's towers are primarily located in rural areas, with one-third of them lacking competing towers within a two-mile radius. This positioning is advantageous as carriers expand their mid-band footprint [14][15]. - **Spectrum Value**: The company retains valuable C-band spectrum, which is immediately deployable and attractive to carriers. The first build-out deadline for this spectrum is in 2029, with a second in 2031 [18]. Future Outlook and Industry Trends - **Colocation Demand**: The demand for colocation is expected to remain robust, driven by carrier investments and mid-band rollouts. The company anticipates continued growth in colocations and amendment activities [15][16]. - **Spectrum Transactions**: Array has pending spectrum transactions with AT&T and Verizon, expected to close by the end of 2025 and in Q3 2026, respectively. The company plans to declare special dividends upon closing these transactions [19][22]. Financial Strategy and Leverage - **Leverage Ratio**: Array is comfortable with a leverage ratio of three times, which allows for future flexibility in investments. The company has been upgraded to investment grade by S&P and has received positive news from Moody's regarding credit ratings [24][25]. Additional Considerations - **REIT Status**: Array is not a REIT due to asset and income tests that it does not meet. The company is exploring structural changes to potentially become a REIT in the future, which is seen as desirable for shareholders [22][23]. - **Long-term Investments**: In the short to medium term, Array is not planning significant capital investments but may consider opportunities in established rural clusters in the long term [20]. This summary encapsulates the key points discussed during the conference call, highlighting Array Digital Infrastructure's strategic focus, financial performance, market positioning, and future outlook.

Group 1 - The presentation is part of Citi's Global TMT Conference, focusing on TDS Telecom and Array Digital Infrastructure [1] - Kris Bothfeld, CFO of TDS Telecom, and Doug Chambers, Interim President and CEO of Array Digital Infrastructure, are the key speakers [1] - The discussion includes an update on the T-Mobile U.S. mobile deal that closed on August 1, with insights from the month following the deal [2]

Summary of Telephone and Data Systems (TDS) Conference Call Company and Industry Overview - **Company**: Telephone and Data Systems (TDS) and its subsidiary Array Digital Infrastructure - **Industry**: Telecommunications, specifically focusing on fiber and tower operations Key Points and Arguments TDS and Array Digital Infrastructure - The deal with T-Mobile to sell wireless operations closed on August 1, 2025, marking a significant transition for TDS and Array [2][3] - Array now operates as a separate entity, owning 4,400 towers, making it the fifth largest tower company in the U.S. [4] Spectrum Sales and Financial Outlook - TDS is pursuing pending spectrum sales worth $1 billion each with AT&T and Verizon, expecting regulatory approval soon [5][14] - The company has sold 70% of its spectrum and has remaining C band spectrum, which has no build requirements until 2029 [6][16] - Anticipation of special dividends from the proceeds of spectrum sales, with the AT&T deal expected to close by the end of 2025 [14][15] Colocation Growth - Colocation revenues grew by 12% in Q2 2025, with a significant increase in application fees contributing to this growth [7] - T-Mobile has committed to 2,015 colocations, which is expected to increase cash revenues by approximately 50% [8] Fiber Expansion Strategy - TDS aims to double its fiber footprint from 900,000 to 1,800,000 addresses over the next five years, having surpassed 1 million fiber addresses recently [12][13] - The company is focused on two major build programs: expansion into new communities and converting existing copper addresses to fiber [35][36] Financial Management and Capital Return - TDS has a leverage ratio target of 3x, providing flexibility for future growth [24] - Plans for special dividends following spectrum sales, with expectations for a regular recurring dividend by late 2026 or early 2027 [28] Market Position and Competitive Landscape - The company does not view fixed wireless or satellite-based broadband (e.g., Starlink) as significant threats to its fiber business [46][78] - Increased competition from overbuilders in cable markets is noted, but TDS remains confident in its competitive product offerings [73][75] Operational Improvements and AI Utilization - TDS is implementing operational improvements and utilizing AI to enhance efficiency and customer experience [66][67] - The company is focused on streamlining back-office operations and enhancing customer service through technology [64] Customer Behavior and Economic Impact - No significant changes in customer payment behavior or churn rates have been observed due to macroeconomic conditions [71] - The company remains optimistic about its product demand, which is considered recession-resistant [71] Future Plans and Investor Relations - TDS plans to provide clearer disclosures regarding its tower business and fiber operations in upcoming earnings calls [83][84] - The company is evaluating additional opportunities for growth, including potential M&A, while maintaining financial discipline [37][62] Additional Important Content - The company is focused on enhancing its fiber network efficiency, which is expected to improve margins over time [63] - TDS is committed to maintaining a strong balance sheet, having paid off most of its debt post-deal [57][58] - The management team is in place, with a focus on operational success and strategic growth [32]

Core Insights - TDS Telecommunications LLC has surpassed 1 million fiber passings, solidifying its position as a national leader in fiber broadband services [1][2] - The company aims to reach a long-term target of 1.8 million fiber addresses, with 95% of the footprint offering speeds of at least 1 Gigabit [2][6] - TDS Telecom is set to deliver approximately 150,000 marketable fiber service addresses in 2025 [2] Company Operations - TDS Telecom operates in 31 states and is involved in fiber expansion projects in nearly 100 communities across the U.S. [3] - The fiber expansion is supported by private investments and participation in the federal Enhanced Alternative Connect America Cost Model (E-ACAM) program [3] - Major fiber expansion projects are currently taking place in the Pacific Northwest and Wisconsin [3] Construction and Services - Network construction is carried out through various construction partners and TDS Telecom's internal construction crews, which will account for over one-third of new fiber addresses this year [4][5] - TDS Telecom offers symmetrical fiber internet products with speeds available up to 8 Gigabits, and businesses can opt for a dedicated 10 Gig connection [5] - The company provides a low-cost product called TDS Connect for qualifying customers [5] Future Outlook - TDS Telecom emphasizes that fiber internet is essential for modern services, including smart homes and remote work [6] - The company remains committed to achieving its goal of 1.8 million marketable fiber addresses [6] Company Profile - TDS Telecom delivers high-speed internet, TV entertainment, and phone services to small to mid-sized urban, suburban, and rural communities [7] - The company has 1.1 million connections and aims to enhance communication services through fiber-optics and advanced technologies [7] - TDS Telecom is a subsidiary of Telephone and Data Systems, Inc., which serves approximately 5 million connections nationwide [8]

Core Insights - The significant decline in Array Digital Infrastructure's fixed-income securities following the sale of UScellular to T-Mobile is perceived as excessive, creating a new investment opportunity for holders of Telephone and Data Systems' preferred shares [1] Group 1: Market Dynamics - The equity market is characterized by daily price fluctuations that can lead to substantial wealth creation or destruction over the long term [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Group 2: Company Specifics - The sale of UScellular to T-Mobile is a pivotal event impacting Array Digital Infrastructure's securities [1] - Telephone and Data Systems' preferred shares are highlighted as a potential investment opportunity in the current market context [1]