Core Insights - Telephone and Data Systems, Inc. (TDS) reported mixed results for Q2 2025, with revenues exceeding estimates but net income falling short [1][10] - The company experienced a year-over-year revenue decline due to demand softness across various sectors, although growth in residential broadband and tower business provided some support [1][10] Financial Performance - TDS reported a net loss of $5 million, or 5 cents per share, an improvement from a net loss of $14 million, or 13 cents per share, in the same quarter last year [2] - Total revenues were $1.18 billion, down from $1.23 billion year-over-year, but exceeded the Zacks Consensus Estimate by $18 million [3][10] - Operating income was $35 million, slightly down from $36 million in the prior-year quarter [5] Segment Performance - Revenues from Array Digital Infrastructure (formerly U.S. Cellular) were $916 million, a 1% decline year-over-year, impacted by reduced postpaid and prepaid connections, although tower revenue growth was a positive factor [4] - TDS Telecom contributed $265 million to revenues, slightly down from $266 million in the prior-year quarter, but also beat revenue estimates [6] Operating Metrics - Total operating expenses were $1.14 billion, down 4% from the previous year, with a total operating income of $40 million compared to $39 million [8] - Adjusted EBITDA for TDS Telecom was $89 million, down 3% year-over-year, while Array Digital's adjusted EBITDA declined to $254 million from $268 million [8] Customer Metrics - Total residential connections decreased to 924,500 from 950,400 year-over-year, while residential revenues per connection increased to $65.85 from $65.26 [6] - Broadband expansion rose to 141,800 from 107,800 a year ago, with 26% of customers opting for 1 Gigabit+ speed compared to 19% in the prior year [7] Cash Flow and Outlook - TDS generated $422 million in net cash from operating activities, up from $403 million in the prior-year quarter, with $540 million in cash and cash equivalents as of June 30, 2025 [11] - For 2025, management expects total operating revenues for TDS Telecom to be in the range of $1.03-$1.07 billion, with adjusted EBITDA estimated between $320-$360 million [12]