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]

Second Quarter 2025 Financial Results Conference Call Presentation August 5, 2025 Together, Building the Future Safe Harbor Statement 3 Key Priorities This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future and Uniti management's current expectations, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, ...

Financial Data and Key Metrics Changes - Total revenues and adjusted EBITDA each grew by 3.5% year over year during Q2 2025 [15] - Adjusted EPS was $0.54, up approximately 6% from $0.51 the prior year [15] - Free cash flow for Q2 was $4.4 billion, an increase from $4.0 billion the previous year [15] - Capital investment was $5.1 billion, showing modest year-over-year growth [15] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 3.5%, with EBITDA growth of 3.2% year over year [18] - The company added 401,000 postpaid phone customers in Q2, exceeding expectations [18] - Consumer Wireline revenue grew by 5.8%, driven by approximately 19% growth in fiber revenue [22] - Fiber customer additions were 243,000 in Q2, with a convergence rate of 40.9% for fiber and 5G services [23] Market Data and Key Metrics Changes - The company reported a significant increase in Internet Air net additions, exceeding 200,000 for the first time [24] - The mobility subscriber growth is increasingly driven by customers taking both wireless and broadband services [19] - The company expects to reach approximately 50 million customer locations by 2030, doubling its fiber reach [10] Company Strategy and Development Direction - The company aims to become the best connectivity provider in America, focusing on customer-first strategies and advanced technologies [3][4] - Plans to accelerate fiber deployment to 4 million new locations per year by the end of 2026 [10] - The company is transitioning away from legacy copper infrastructure, targeting to discontinue service across the majority of its copper footprint by 2029 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong customer demand and improved operating efficiencies [12][14] - The company anticipates a competitive environment in the second half of the year but remains optimistic about its performance [20] - Management highlighted favorable policy tailwinds for investment, comparing the current environment to the Telecommunications Act of 1996 [11][90] Other Important Information - The company plans to contribute $1.5 billion to its pension plan by the end of next year, enhancing the plan's funded status [12] - The company expects to realize $6.5 billion to $8 billion in cash tax savings from 2025 to 2027 due to recent tax legislation [32] - The company intends to accelerate share repurchases, expecting to buy back $4 billion of stock by year-end [34] Q&A Session Questions and Answers Question: Wireless churn and cost savings from decommissioning wire centers - Management acknowledged the 17 basis point increase in phone churn and noted that they expect a competitive environment in the second half of the year [38][39] - They highlighted ongoing cost savings from legacy transformation and expect to continue driving costs down as more wirelines come offline [41][42] Question: Impact of churn on pricing strategy and spectrum acquisition budget - Management stated that pricing is not the primary issue affecting churn and emphasized their strategy of tying prices to value [48] - They confirmed that they are constantly evaluating spectrum options and have the flexibility to make strategic acquisitions if opportunities arise [51][54] Question: Fiber build returns and mobility customer quality - Management expressed confidence in the profitability of their fiber builds and noted that the returns from new customers are improving due to converged services [60][62] - They emphasized that they are focused on acquiring high-value customers and improving lifetime values [63][66] Question: Mobility margins and macroeconomic impacts - Management indicated that while growth-related spending may be lumpy, they expect operating leverage to remain strong and margins to perform well [88] - They highlighted favorable investment policies and incentives that support organic growth in the telecom sector [90]

Financial Data and Key Metrics Changes - The company reported a year-over-year increase in free cash flow of $79 million for Q1 2025, an increase of $18 million compared to the same quarter last year [14] - Total operating revenues decreased by 3% compared to the prior year, impacted by divestitures and declines in commercial and wholesale revenue [47] - Cash expenses increased by 6% or $11 million in the quarter compared to the prior year, with part of the increase attributed to stock-based compensation adjustments [47] Business Line Data and Key Metrics Changes - The company saw a 6% increase in third-party tower revenues due to new co-locations and escalators on renewed leases [13] - Fiber service addresses grew by 6% year-over-year, with 14,000 new addresses delivered in the quarter [19][36] - Residential broadband net additions were 2,800, with 8,300 coming from fiber markets, lower than prior quarters due to timing of service address delivery [37][40] Market Data and Key Metrics Changes - The company continues to face competitive pressures in the wireless market, with aggressive promotions from competitors impacting service revenues [15] - The fiber strategy is expected to drive growth, with a target of achieving 40% average penetration in steady state within five years after launch [41] Company Strategy and Development Direction - The company is focused on completing the transaction with T-Mobile, which is expected to close in mid-2025, and is preparing for a smooth transition [9][10] - Post-transaction, the company plans to declare a special dividend to shareholders, with proceeds expected to be used to repay outstanding bank debt [11][19] - The company is also investing in its fiber program, aiming to expand its footprint and improve operational efficiency [39][100] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased uncertainties in the broader economy and markets but remains optimistic about the long-term potential of the tower business [13][18] - The company expects to continue facing competitive pressures but believes the T-Mobile transaction will provide better competitive choices and connectivity experiences for customers [16][17] - Management is confident in achieving $100 million in annual cost savings by 2028 through transformation efforts [39][78] Other Important Information - The company does not plan to redeem its Series UU and Series BV preferred stock, viewing them as foundational capital for future operations [11][73] - The company is actively evaluating its portfolio for potential divestitures, particularly in copper markets without an economic path to fiber [99] Q&A Session Summary Question: Timing of designated entity spectrum approval - The timing is uncertain and dependent on regulatory approval by the FCC, but there is optimism for a positive outcome [58] Question: Free cash flow run rate - The reported free cash flow of $79 million is not necessarily a run rate, but capital expenditures are expected to be down in 2025, which is positive for free cash flow [60][61] Question: Debt exchange offer impact - The debt exchange offer will be launched about 50 days before the anticipated close, and the amount of debt exchanged will impact the purchase price [62][111] Question: Fiber net adds and sales efforts - Fiber net adds were lower due to timing of address delivery, but as construction ramps up, net adds are expected to improve [66] Question: Rationale for remaining a public entity - The incremental cost to operate as a public company is minimal, and there are no immediate incentives to collapse the structure [107][108]