Key Takeaways USMs Q2 net income rose to $31M, or $0.36 per share, beating estimates by $0.03.Revenues slipped to $916M on lower postpaid and prepaid retail connections.Tower business revenues climbed 7% year over year to $62M on healthy demand trends.Array Digital Infrastructure, Inc. (USM) reported strong second-quarter 2025 results, with both top and bottom lines surpassing the respective Zacks Consensus Estimate. However, the company reported a revenue decline year over year, owing to a decrease in post ...

Financial Performance - For the quarter ended June 2025, United States Cellular (USM) reported revenue of $916 million, down 1.2% year-over-year, with EPS at $0.36 compared to $0.20 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $904.19 million by +1.31%, while the EPS surprise was +9.09% against the consensus estimate of $0.33 [1] Key Metrics - U.S. Cellular's shares returned +6.1% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The company experienced net losses in retail connections, with postpaid at -42 million versus an estimate of -30 million, and prepaid at -2 million against an estimate of 4 million [4] - Gross additions for postpaid retail connections were 109 million, exceeding the average estimate of 101.81 million [4] Customer and Revenue Insights - Total connections stood at 4.33 million, slightly below the average estimate of 4.39 million [4] - Average Revenue Per User (ARPU) for prepaid was $31.72, above the average estimate of $31.08, while postpaid ARPU was $51.91, also exceeding the estimate of $51.77 [4] - Operating revenues from service were reported at $736 million, surpassing the estimate of $728.62 million, but reflecting a -0.9% change year-over-year [4] - Net operating revenues from service retail were $652 million, compared to an estimate of $650.86 million, indicating a -2.1% year-over-year change [4] - Equipment sales generated $180 million, exceeding the estimate of $175.58 million, with a -2.2% change year-over-year [4]

Financial Performance - U.S. Cellular reported quarterly earnings of $0.36 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and up from $0.20 per share a year ago [1] - The earnings surprise was +9.09%, while the previous quarter saw a surprise of -43.24% with actual earnings of $0.21 per share against an expectation of $0.37 [2] - The company posted revenues of $916 million for the quarter, surpassing the Zacks Consensus Estimate by 1.31%, but down from $927 million year-over-year [3] Market Performance - U.S. Cellular shares have increased approximately 18.4% since the beginning of the year, compared to an 8.6% gain for the S&P 500 [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $899.42 million, and for the current fiscal year, it is $0.61 on revenues of $3.64 billion [8] - The Wireless National industry is ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9]

Financial Data and Key Metrics Changes - The company completed the sale of its U.S. Cellular wireless business and certain spectrum assets to T-Mobile for $4.3 billion, which is expected to unlock significant value for shareholders and strengthen the balance sheets of both Array and TDS [5][11]. - Following the transaction, approximately $364 million remains on the Array balance sheet, with $1.7 billion in debt assumed by T-Mobile [11]. - A special dividend of $23 per share was declared, with TDS expected to receive approximately $1.63 billion [12]. - The company anticipates annual interest savings of about $80 million, reducing TDS's average cost of debt to just over 6% [12][14]. - S&P raised TDS's credit rating to BBB- from BB, reflecting a strong balance sheet and growth outlook [18]. Business Line Data and Key Metrics Changes - Array's tower business operates approximately 4,400 towers and has a new master license agreement with T-Mobile, which is expected to enhance revenue and profitability [8][25]. - Third-party tower revenues increased by 12%, and the number of third-party colocations grew by 6% year-over-year [25][26]. - TDS Telecom added 27,000 new fiber service addresses, with a total of 10,300 fiber net additions leading to a 19% growth in total fiber connections since last year [32][33]. Market Data and Key Metrics Changes - The company is focusing on expanding its fiber footprint, targeting 1.8 million marketable fiber service addresses, with 968,000 addresses at the end of the quarter [34]. - The company expects to achieve 150,000 new fiber addresses this year, with significant growth anticipated in the second half of the year [32][37]. - Demand for higher broadband speeds remains strong, with 83% of residential broadband customers taking 100 meg or higher, and 26% taking one gig or higher [39]. Company Strategy and Development Direction - The company aims to focus on its tower and fiber businesses, believing it is well-positioned to win in these areas [6][8]. - A capital allocation strategy is being developed, focusing on fiber investments, M&A opportunities, and shareholder returns [15][18]. - The company plans to maintain a conservative balance sheet while targeting a three times bank leverage ratio at Array [14]. Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the new chapter for the company following the T-Mobile transaction, emphasizing the focus on tower and fiber businesses [6][10]. - The management team is optimistic about growth opportunities in the tower business due to increasing demand for data and communication services [8][25]. - The company expects to incur additional wind-down costs as it transitions from a wireless service provider to an independent tower company, which may negatively impact profitability in the short term [29]. Other Important Information - The company is working to opportunistically monetize its remaining spectrum, with significant proceeds expected from pending spectrum sales to AT&T and Verizon [21][22]. - The company has a strong sales leadership team in place, which is expected to drive future revenue growth [26][90]. Q&A Session Summary Question: Update on TDS Telecom's fiber expansion plans - Management indicated that there is significant opportunity to expand the fiber footprint and that updates will be shared in upcoming quarters [50][52]. Question: Long-term leverage expectations for TDS Telecom - Management expects to maintain leverage below 1.5 times while evaluating opportunities for both fiber and tower businesses [54]. Question: Access to construction resources for fiber expansion - Management expressed confidence in meeting the 150,000 service address goal for the year, with significant ramp-up in construction efforts expected [56][57]. Question: Insights on fiber market penetration and competitive landscape - Management shared that they expect high presales penetration and are focusing on markets with favorable competitive dynamics [60][73]. Question: Update on mobile launch and pricing strategy - The company launched its MVNO product TDS Mobile in select markets and is testing aggressive pricing strategies [81][84]. Question: M&A opportunities and focus areas - Management is considering fiber opportunities that would synergize with existing properties and footprint [85]. Question: Growth strategy for the tower business - Management highlighted the importance of bringing sales operations in-house and the positive impact on revenue growth [90].

Financial Data and Key Metrics Changes - The company completed the sale of its U.S. Cellular wireless business and certain spectrum assets to T-Mobile for $4.3 billion, which strengthens the balance sheets of both Array and TDS [5][12] - Following the transaction, approximately $364 million remains on Array's balance sheet, with $1.7 billion in debt assumed by T-Mobile [12] - A special dividend of $23 per share was declared, with TDS receiving approximately $1.63 billion [13] - The company expects to achieve annual interest savings of about $80 million, reducing the average cost of debt to just over 6% [13][15] - S&P raised TDS' credit rating to BBB- from BB, reflecting a strong balance sheet and growth outlook [18] Business Line Data and Key Metrics Changes - Array's tower business consists of approximately 4,400 towers, with a new master license agreement (MLA) with T-Mobile expected to significantly increase revenue and profitability [6][26] - Third-party tower revenues increased by 12%, and the number of third-party colocations rose by 6% year-over-year [26] - Distributions from noncontrolling investment interests increased from $58 million to $77 million [29] Market Data and Key Metrics Changes - The company anticipates receiving $2 billion from previously announced spectrum sales, with a portion expected later this year [15] - The AT&T and Verizon transactions are expected to close in 2025 and 2026, respectively, subject to regulatory approval [21][22] Company Strategy and Development Direction - The company aims to focus on its tower and fiber businesses, believing it is well-positioned for growth in these areas [6][10] - Key strategic priorities include closing pending spectrum transactions and optimizing ground lease agreements [24] - The company plans to develop a capital allocation strategy focusing on fiber investments, M&A opportunities, and shareholder returns [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of colocations and margins due to increasing demand for data and communication services [6] - The company is optimistic about its future as an independent tower company, with a strong management team in place [19][24] - Management acknowledged the challenges of transitioning from a wireless service provider to an independent tower company, expecting wind-down costs to impact profitability in the near term [30] Other Important Information - The company is developing a regular dividend policy once spectrum transactions are completed [16] - The transition to an independent tower company is expected to enhance focus and operational efficiency [19][24] Q&A Session Summary Question: Update on TDS Telecom's fiber expansion - Management indicated that there is significant opportunity to expand the fiber footprint and will provide updates in upcoming quarters [54][55] Question: Long-term leverage stabilization for TDS Telecom - Management expects to maintain leverage under 1.5 times while evaluating opportunities for growth [56] Question: Access to construction resources for fiber expansion - Management remains confident in achieving the target of 150,000 new fiber service addresses for the year, with ramping construction efforts [59] Question: Cohort analysis for fiber penetration - Management is working on providing cohort penetration reporting and expects high presales penetration in new markets [63][66] Question: Update on mobile launch and pricing strategy - The company launched TDS Mobile in select markets and is testing various pricing strategies to optimize customer acquisition [85][86] Question: M&A opportunities - Management is beginning to consider M&A opportunities focused on fiber assets that synergize with existing properties [88]

Array Transaction and Debt - The T-Mobile transaction closed on August 1, 2025 [15] - $1.7 billion of Array debt was exchanged into T-Mobile debt [8] - TDS is expected to receive $1.6 billion from Array special dividend [8] - Array is expected to have $700 million debt [8] - Array's board approved a special dividend of $23.00 per Common Share and Series A Common Share, totaling $2.0 billion [9] Spectrum Monetization - Agreements reached to monetize approximately 70% of Array's total spectrum holdings, based on MHz-Pops, including the T-Mobile transaction [14] - AT&T spectrum sale gross purchase price is $1.018 billion [12] - Verizon spectrum sale gross purchase price is $1.0 billion [12] Tower Business - The company owns 4,418 towers in the U S [18, 22] - Third-party tower revenue distribution: AT&T 34%, Verizon 27%, T-Mobile 25%, Other 14% in Q2 2025 [22] - Tower tenancy rate was 1.57, with 2,527 colocations as of June 30, 2025 [22] - Third-party revenues for the towers segment were $28 million in Q2 2025, a 12% increase year-over-year [23] TDS Telecom Fiber Expansion - Deployed 27,000 new marketable fiber addresses in Q2 2025 [24, 25] - The company is on track for 150,000 marketable fiber addresses in 2025 [24] - Residential fiber connections have grown 1.9x from Q2 2022 to Q2 2025 [34] TDS Telecom Financials - Total operating revenues for TDS Telecom were $265 million in Q2 2025, a 1% decrease year-over-year [44] - Capital expenditures for TDS Telecom were $90 million in Q2 2025, a 16% increase year-over-year [44] - Adjusted EBITDA for TDS Telecom was $89 million in Q2 2025, a 3% decrease year-over-year [44]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-09712 ARRAY DIGITAL INFRASTRUCTURE, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of i ...

NEWS RELEASE Exhibit 99.1 On August 1, 2025, United States Cellular Corporation changed its name to Array Digital Infrastructure, Inc. (Array ) SM SM As previously announced, Array 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.arrayinc.com or investors.tdsinc.com. 1 • 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 w ...

Core Insights - Array Digital Infrastructure, Inc. reported total operating revenues of $916 million for Q2 2025, a decrease of 1% from $927 million in Q2 2024 [1][10] - Service revenues were $736 million, down from $743 million year-over-year [1][10] - Net income attributable to Array shareholders increased to $31 million, up 80% from $17 million in the same period last year, with diluted earnings per share rising to $0.36 from $0.20 [1][10][15] Financial Performance - Total operating revenues for the first half of 2025 were $1.807 billion, a decline of 4% compared to $1.877 billion in the first half of 2024 [15] - Operating income for Q2 2025 was $35 million, down 4% from $36 million in Q2 2024 [15] - Adjusted EBITDA for Q2 2025 was $254 million, a decrease of 6% from $268 million in Q2 2024 [21][25] Operational Highlights - The company completed the sale of its wireless operations and select spectrum assets to T-Mobile for $4.3 billion, which includes cash and assumed debt [10] - Array has 4,400 towers and a new Master License Agreement with T-Mobile, providing a stable revenue stream and growth opportunities [3][7] - Third-party tower revenues increased by 12% year-over-year [10] Future Transactions - Pending spectrum transactions with Verizon and AT&T are expected to close in the second half of 2025 and Q3 2026, respectively, subject to regulatory approvals [4][5][10] - The company is not providing financial guidance for 2025 [5] Shareholder Returns - A special dividend of $23.00 per share was declared, payable on August 19, 2025 [10]

Company Overview - Array Digital Infrastructure, Inc., formerly known as United States Cellular Corporation, has declared a special cash dividend of $23.00 per Common Share and Series A Common Share, payable on August 19, 2025, to shareholders of record on August 11, 2025 [1] - The company has recently completed the sale of its wireless operations to T-Mobile and has changed its name to Array Digital Infrastructure, Inc. [4] - Array is a leading owner and operator of shared wireless communications infrastructure in the United States, with over 4,400 cell towers facilitating the deployment of 5G and other wireless technologies [5] Dividend Details - The special dividend represents more than 25% of the current stock price, leading the NYSE to implement "due bills" for shares traded until the payment date [2] - The ex-dividend date is set for August 20, 2025, meaning stockholders who sell their shares on or before the payment date will not receive the special dividend [2] - Due bills are settled between brokers, and Array has no obligations regarding the amount or processing of the due bill [3] Ownership Structure - Array is approximately 81% owned by Telephone and Data Systems, Inc. [6]