Financial Performance - For the six months ended June 30, 2025, TDS reported a total revenue of $1,200 million, representing a 5% increase compared to $1,143 million for the same period in 2024[8]. - Total operating revenues for the three months ended June 30, 2025, decreased by 4% to $1,186 million compared to $1,238 million in 2024[28]. - Net income attributable to TDS shareholders for the three months ended June 30, 2025, increased to $12 million from $3 million in 2024, reflecting a significant improvement[28]. - Adjusted EBITDA for the six months ended June 30, 2025, decreased by 8% to $576 million compared to $629 million in 2024[28]. - Operating income for TDS Telecom for the three months ended June 30, 2025, decreased by 27% to $14 million compared to $19 million in 2024[28]. - Total operating revenues decreased by 1% to $916 million for Q2 2025 compared to $927 million in Q2 2024, and by 4% to $1.807 billion for the first half of 2025 compared to $1.877 billion in the same period last year[44]. - Net income increased by 77% to $32 million in Q2 2025 compared to $18 million in Q2 2024, and rose by 24% to $52 million for the first half of 2025 compared to $42 million in the same period last year[44]. - Adjusted EBITDA for TDS consolidated for the six months ended June 30, 2025, was $673 million, down 7.2% from $725 million in the same period of 2024[147]. - Free cash flow (Non-GAAP) increased significantly to $301 million for the six months ended June 30, 2025, compared to $154 million in the same period of 2024, representing a growth of 95%[151]. Capital Expenditures - Capital expenditures for the three months ended June 30, 2025, decreased by 30% to $170 million from $244 million in 2024[28]. - Capital expenditures significantly decreased by 52% to $80 million in Q2 2025 from $165 million in Q2 2024, and by 55% to $132 million for the first half of 2025 compared to $295 million in the same period last year[44]. - Capital expenditures for TDS Telecom increased by 16% to $90 million for the three months ended June 30, 2025[87]. - TDS's capital expenditures for the six months ended June 30, 2025, were $149 million, compared to $164 million in the same period of 2024[124]. - Array's capital expenditures for the six months ended June 30, 2025, were $132 million, down 55% from $295 million in 2024[122][123]. Dividends and Share Repurchases - A special dividend of $23.00 per share was declared on August 1, 2025, for shareholders of record on August 11, 2025[25]. - Array declared a special dividend of $23.00 per common share following the sale of its wireless operations to T-Mobile, payable on August 19, 2025[131]. - TDS paid quarterly dividends of $0.04 per share in Q2 2025, down from $0.19 in Q2 2024[129]. - Array repurchased 328,835 common shares for $21 million at an average cost of $63.49 per share during the six months ended June 30, 2025[127]. Operational Changes and Strategic Focus - TDS Telecom focuses on driving growth by investing in fiber deployment and creating clusters of markets in attractive locations[22]. - Array aims to grow revenue in its Towers operations by increasing third-party colocations on existing towers[22]. - The closing of the T-Mobile transaction on August 1, 2025, will necessitate substantial operational changes, potentially adversely affecting Array's financial condition[157]. - Array's strategic alternatives review process is ongoing, focusing on monetizing spectrum assets not subject to pending sale agreements[20]. - Ongoing costs related to employee compensation and restructuring are anticipated following the T-Mobile transaction, impacting future cash flows[164]. Spectrum and Wireless Operations - As of June 30, 2025, Array's book value of wireless spectrum licenses to be sold was $586 million, with total proceeds expected from the Verizon Purchase Agreement of $1,000 million and from the AT&T Purchase Agreement of $1,018 million[18][19]. - The sale of wireless operations to T-Mobile closed on August 1, 2025, with cash proceeds of $2,629 million, and a carrying value of net assets sold was approximately $2,400 million[25]. - Array entered into agreements to sell wireless spectrum licenses to Verizon and AT&T, with the Verizon Purchase Agreement dated October 17, 2024, and the AT&T Purchase Agreement dated November 6, 2024, both pending regulatory approval[166][167]. - Array expects a significant decrease in intra-company revenues following the disposal of wireless operations to T-Mobile, which will impact future tower rental revenues[68]. - Array's business will become significantly dependent on T-Mobile, which has committed to lease space on certain towers for a minimum of 15 years[165]. Financial Risks and Challenges - TDS continues to monitor potential impacts of proposed increases in tariffs on imported goods, which may affect operations and financial results[24]. - TDS is facing significant compliance challenges with FCC build-out requirements for its retained spectrum licenses, which could adversely affect its financial condition and cash flows[172]. - The inability to monetize remaining spectrum assets could adversely affect TDS' operations, depending on various market factors[171]. - TDS' liquidity may be adversely affected by significant declines in cash flows from operations or inability to obtain financing on acceptable terms[198]. - TDS faces risks related to supply chain disruptions that could impact network equipment availability and customer demand[191]. Customer Metrics and Market Position - The churn rate for residential fiber connections was not specified but is a critical metric for assessing customer retention[28]. - Retail connections decreased to 4,333,000 as of June 30, 2025, down from 4,466,000 in 2024, with postpaid connections declining from 4,027,000 to 3,904,000[46]. - Average Revenue Per User (ARPU) increased by 1% to $51.91 in Q2 2025 compared to $51.45 in Q2 2024, and remained stable at $51.98 for the first half of 2025[49]. - Total residential connections decreased by 3% to 924,500 as of June 30, 2025, primarily due to declines in legacy voice and video services[81]. - A substantial portion of Array's revenues is derived from a small number of tenants in the wireless industry, making it vulnerable to financial difficulties of these tenants[178]. Compliance and Regulatory Issues - The company is subject to regulatory compliance risks that could lead to civil penalties or liabilities if not adhered to[205]. - TDS's credit ratings were upgraded from BB to BBB- by Standard & Poor's with a stable outlook on August 1, 2025[118]. - TDS has entered into a Senior Secured Credit Agreement providing a $300 million secured term loan credit facility for general corporate purposes[201]. Technology and Competitive Landscape - Advances in technology could render TDS' current systems obsolete, increasing operational costs and reducing revenues[187]. - Increased competition in the wireline industry from broadband technologies and MVNO plans is pressuring TDS' revenues and future growth potential[174]. - TDS has introduced MVNO plans for wireless services, but success is uncertain due to reliance on third parties and competition from larger industry players[175]. - TDS' lack of scale compared to larger competitors may lead to increased pricing pressure and limited strategic partnership opportunities[179].

Financial Performance - TDS reported total operating revenues of $1,186 million for Q2 2025, a decrease from $1,238 million in Q2 2024, representing a year-over-year decline of approximately 4.2%[4] - Net income attributable to TDS common shareholders was $(5) million, or $(0.05) per share, compared to $(14) million, or $(0.13) per share in the same period last year, showing an improvement in net loss[4] - Net income for the six months ended June 30, 2025, was $30 million, down 34% from $45 million in 2024[32] - Operating income for the three months ended June 30, 2025, was $40 million, an increase of 2% from $39 million in 2024[29] - TDS Telecom's net income was $16 million in Q2 2025, slightly down from $18 million in Q2 2024, a decrease of 11.1%[50] Revenue and Guidance - TDS has adjusted its full-year 2025 revenue guidance for TDS Telecom to a range of $1,030-$1,050 million, down from the previous estimate of $1,030-$1,070 million[12] - Adjusted EBITDA for TDS Telecom is estimated to be between $320-$350 million for 2025, revised from a previous range of $320-$360 million[12] - Total operating revenues for Array Digital Infrastructure, Inc. decreased by 1% to $916 million for the three months ended June 30, 2025, compared to $927 million in the same period of 2024[40] - Wireless segment revenues declined by 1% to $888 million for the three months ended June 30, 2025, down from $902 million in 2024[42] - TDS Telecom's total operating revenues decreased by 1% to $265 million for the three months ended June 30, 2025, compared to $267 million in 2024[44] Expenses and Cash Flow - Total operating expenses for the three months ended June 30, 2025, were $1,146 million, a decrease of 4% compared to $1,199 million in 2024[29] - Cash flows from operating activities for the six months ended June 30, 2025, were $607 million, compared to $626 million in 2024[32] - Cash flows from operating activities for TDS consolidated increased to $422 million for the three months ended June 30, 2025, compared to $403 million in 2024[46] Capital Expenditures - Capital expenditures for TDS Telecom are expected to remain unchanged at $375-$425 million for 2025[12] - Capital expenditures for Q2 2025 were $80 million, an increase from $53 million in Q1 2025[22] - Capital expenditures for Array Digital Infrastructure, Inc. decreased by 52% to $80 million for the three months ended June 30, 2025, compared to $165 million in 2024[40] Customer Metrics - The company delivered 27,000 marketable fiber service addresses in Q2 2025 and achieved 3,900 residential broadband net additions, with a total of 10,300 net adds from fiber markets[8] - Total broadband connections reached 557,700 in Q2 2025, with residential broadband net additions of 3,900[25] - Postpaid connections at the end of Q2 2025 totaled 3,904,000, a decrease of 42,000 from the previous quarter[22] - Total residential connections decreased to 924,500 in Q2 2025 from 932,300 in Q1 2025[25] Leadership Changes - Ken Dixon has joined TDS as the President and CEO of TDS Telecom, focusing on executing the fiber broadband strategy[8] Market and Operational Highlights - The company completed the sale of its wireless operations and select spectrum assets to T-Mobile for a total consideration of $4.3 billion, which includes cash and assumed debt[8] - Third-party tower revenues increased by 12% year-over-year, indicating growth in the tower business segment[8] - The total number of colocations increased to 2,527 in Q2 2025, up from 2,469 in Q1 2025[22] - The total number of cell sites in service increased to 7,061 in Q2 2025, up from 7,009 in Q1 2025[22] Churn and Revenue Metrics - Average Revenue Per User (ARPU) for postpaid was $51.91, slightly down from $52.06 in Q1 2025[22] - The churn rate for postpaid connections increased to 1.29% in Q2 2025 from 1.21% in Q1 2025[22] - The total residential fiber churn rate was 1.1% in Q2 2025, up from 0.9% in Q1 2025[25] - Residential revenue per connection rose to $65.85 in Q2 2025, compared to $65.67 in Q1 2025[25]

Core Insights - TDS reported total operating revenues of $1,186 million for Q2 2025, a decrease of 4% from $1,238 million in Q2 2024 [1][22] - The net loss attributable to TDS common shareholders was $(5) million, improving from a loss of $(14) million in the same quarter last year, resulting in a diluted loss per share of $(0.05) compared to $(0.13) [1][22] TDS Telecom Performance - TDS Telecom's operating revenues decreased by 1% year-over-year, impacted by the divestiture of non-strategic assets, including the sale of Hosted and Managed Services operations [2][6] - The company added 10,300 residential fiber connections in Q2 2025, with 3,900 net additions in residential broadband [6][20] - The churn rate for residential fiber was 1.1%, while total residential broadband churn was 1.5% [20] Strategic Developments - TDS completed a significant transaction with T-Mobile, selling its wireless operations and select spectrum assets for $4.3 billion, which included cash and assumed debt [6] - The company is focusing on expanding its fiber broadband strategy, with a growing fiber network and strengthened tower operations [3][6] Financial Estimates and Guidance - TDS has revised its full-year 2025 revenue estimates for TDS Telecom to a range of $1,030-$1,050 million, down from the previous estimate of $1,030-$1,070 million [4][5] - Adjusted OIBDA estimates were also adjusted to a range of $310-$340 million, down from $310-$350 million [5] Operating Metrics - TDS reported a total of 924,500 residential connections as of June 30, 2025, with total broadband connections reaching 557,700 [20] - The average revenue per user (ARPU) for residential services was $65.85, showing a slight increase from previous quarters [20]

Core Points - Telephone and Data Systems, Inc. (TDS) has declared dividends for the third quarter of 2025 on its Common Shares, Series A Common Shares, Series UU Preferred Shares, and Series VV Preferred Shares [1][4] Group 1: Dividend Information - TDS will pay a quarterly dividend of $0.04 per Common Share and Series A Common Share, payable on September 30, 2025, to holders of record on September 15, 2025 [4] - The company will pay a quarterly dividend of $414.0625 per share on the 6.625% Series UU Preferred shares, with holders of depositary shares receiving $0.4140625 per depositary share, also payable on September 30, 2025, to holders of record on September 15, 2025 [4] - For the 6.000% Series VV Preferred shares, TDS will pay a quarterly dividend of $375.0000 per share, with holders of depositary shares receiving $0.3750000 per depositary share, payable on September 30, 2025, to holders of record on September 15, 2025 [4] Group 2: Company Overview - TDS was founded in 1969 and provides broadband services and wireless infrastructure through its subsidiaries, TDS Telecom and Array Digital Infrastructure, Inc. [3] - Comprehensive financial information, including earnings releases and filings, can be accessed through TDS's investor relations website [3]

In its upcoming report, Telephone & Data Systems (TDS) is predicted by Wall Street analysts to post quarterly loss of -$0.01 per share, reflecting an increase of 92.3% compared to the same period last year. Revenues are forecasted to be $1.17 billion, representing a year-over-year decrease of 5.7%. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projec ...

Core Viewpoint - The successful divestiture of Array Digital Infrastructure's wireless operations and select spectrum assets to T-Mobile US, Inc. marks a significant milestone, providing substantial shareholder value and positioning the company for future growth [1][2]. Financial Summary - The total consideration for the divestiture was $4.3 billion, comprising $2.6 billion in cash and approximately $1.7 billion in debt assumed by T-Mobile [1]. - The amounts are subject to final adjustment approximately 180 days after the closing date [1]. Operational Changes - Array will retain approximately 4,400 owned towers, making it the fifth largest tower business in the United States [2]. - A 15-year Master License Agreement was established with T-Mobile, ensuring a long-term revenue stream from at least 2,015 incremental towers and extending leases on approximately 600 existing towers [6]. Future Plans - The company intends to opportunistically monetize its retained spectrum holdings not included in the sale to T-Mobile, with agreements already in place with Verizon, AT&T, and two other mobile network operators [3]. - An interim President and CEO, Douglas W. Chambers, has been appointed to lead the company following the transaction [6]. Corporate Identity - The company will change its ticker symbol on the NYSE to "AD" from "USM," with trading under the new name expected to commence on August 12, 2025 [6].

Company Overview - Telephone and Data Systems, Inc. (TDS) provides wireless, broadband, video, and voice services to approximately 5.5 million connections nationwide through its subsidiaries, UScellular and TDS Telecom [2] - TDS was founded in 1969 and is headquartered in Chicago, employing approximately 7,800 associates as of March 31, 2025 [2] Upcoming Financial Events - TDS and United States Cellular Corporation will webcast their second quarter operating results conference call on August 11, 2025, at 9:00 a.m. Central Time [1] - The companies will release their financial results on the same date, August 11, 2025 [1] - Interested parties can access the webcast through the events & presentations pages of their respective investor websites, with a recommendation to register at least 15 minutes prior to the presentation [1]

Core Viewpoint - The Federal Communications Commission has approved the transaction between United States Cellular Corporation and T-Mobile US, Inc., allowing the companies to proceed with the deal upon meeting closing conditions [1]. Company Overview - United States Cellular Corporation provides a wide range of wireless products and services, serving 4.4 million retail connections across 21 states, with a workforce of 4,100 associates as of March 31, 2025 [2]. - Telephone and Data Systems, Inc. operates through UScellular and TDS Telecom, offering wireless, broadband, video, and voice services to approximately 5.5 million connections nationwide, employing around 7,800 associates as of March 31, 2025 [3].

Group 1 - The US Department of Justice Antitrust Division has closed its investigation into the proposed transaction between United States Cellular Corporation and T-Mobile, but the transaction still requires approval from the Federal Communications Commission (FCC) [1] - United States Cellular Corporation serves 4.4 million retail connections across 21 states and had 4,100 employees as of March 31, 2025 [2] - Telephone and Data Systems, Inc. owns approximately 83 percent of United States Cellular Corporation [2] Group 2 - Telephone and Data Systems, Inc. provides services to around 5.5 million connections nationwide through its subsidiaries, including UScellular and TDS Telecom [3] - TDS was founded in 1969 and has approximately 7,800 employees as of March 31, 2025 [3]

Group 1 - The sale of U.S. Cellular by Telephone and Data Systems is expected to close by mid-2025, but this timeline may be affected by disruptions at the Federal Communications Commission (FCC) [1] - The equity market plays a significant role in wealth creation or destruction over the long term, with daily price fluctuations contributing to this dynamic [1] - Pacifica Yield focuses on long-term wealth creation by investing in undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]