TDS

Telephone and Data Systems, Inc. TDS reported a sharp improvement in second-quarter 2026 earnings, but the headline gain was driven partly by spectrum monetization at Array Digital Infrastructure. Earnings reached $2.24 per share compared with a loss of 5 cents a year earlier, while operating revenues rose 3.6% to $309.3 million. The quarter also showed faster fiber deployment at TDS Telecom, making the sustainability of the earnings improvement an important consideration for investors. Telephone and Data Systems, Inc. price-consensus-eps-surprise-chart | Telephone and Data Systems, Inc. Quote TDS reported $2.24 per share in second-quarter earnings, up from a loss of 5 cents in the year-ago quarter. Earnings topped the Zacks Consensus Estimate, producing a 100% surprise, while revenues missed the $315 million consensus estimate by 1.83%.Array’s spectrum monetization was a major contributor to the earnings improvement. Array completed a $1 billion spectrum transaction with Verizon Communications Inc. VZ in June and about $168 million of additional spectrum sales to T-Mobile US, Inc. TMUS in May. The transactions helped lift net income attributable to TDS common shareholders to $260.6 million from a $6 million loss a year earlier.The distinction between transaction-related gains and recurring operations is important. Array’s license sales boosted reported results, but TDS excludes the gain on license sales and exchanges when calculating Adjusted EBITDA. That measure provides a clearer view of underlying operating performance. TDS Telecom continued to expand its fiber footprint during the quarter. The business delivered approximately 66,000 new marketable fiber service addresses, bringing the first-half total to about 106,000. Residential fiber net additions reached 15,100, up 47% year over year. Marketable fiber service addresses totaled approximately 1.17 million, with 60% of service addresses served by fiber.Fiber growth is beginning to offset pressure from legacy operations, but it has not yet reversed the broader revenue decline. TDS Telecom generated $248 million of operating revenues, down 6% year over year, as copper and cable declines and divestitures outweighed a 13% increase in fiber revenue. Adjusted EBITDA declined 21% to $70 million, while capital expenditures nearly doubled to $179 million as construction activity accelerated.Management raised its 2026 fiber service address delivery target to 250,000-300,000 from 200,000-250,000 previously. The company continues to target 2.1 million marketable fiber service addresses over the long term. The updated outlook captures the trade-off between faster fiber deployment and weaker near-term financial performance. TDS Telecom’s 2026 revenue guidance was reduced to $1-$1.025 billion from $1.015-$1.055 billion, while Adjusted EBITDA guidance was narrowed to $310-$330 million from $310-$350 million. At the same time, fiber service address guidance increased and capital expenditure guidance rose to $625-$675 million from $550-$600 million.The higher spending reflects the construction required to expand the fiber footprint. TDS Telecom’s second-quarter capital expenditures nearly doubled to $179 million, making cash generation an important measure of whether the additional fiber investment will translate into sustainable operating gains.The earnings picture therefore remains mixed. Fiber deployment and customer additions are accelerating, but legacy revenue declines and higher investment are keeping pressure on the telecom segment’s near-term profitability. Array’s second-quarter results also reflected its transition toward a tower-focused operating model. Operating revenues increased 90% year over year to $54.1 million, while Adjusted EBITDA rose 56% to $56.2 million.The underlying tower indicators improved as well. Cash site rental revenue increased 65% year over year excluding T-Mobile interim revenues and DISH revenues, while the tower tenancy rate increased to 0.98 from 0.96 in the first quarter, excluding DISH colocations.Spectrum monetization is helping Array reduce its exposure to retained wireless licenses while it focuses more heavily on recurring tower operations. TDS said Array completed transactions that monetized virtually all of its spectrum outside the C-Band. The company also issued an $11 special dividend per common share in June. TDS currently carries a Zacks Rank #1 (Strong Buy). Its Zacks Style Scores are Value Score of C, Growth Score of F, Momentum Score of B and VGM Score of F. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Style Scores provide additional context to the Zacks Rank. The Style Score framework uses Value, Growth and Momentum characteristics alongside the Zacks Rank, while the VGM Score combines the three individual styles. The Zacks Style Score Education material emphasizes that earnings estimate revisions remain the key factor behind the Zacks Rank, while favorable Style Scores can provide an additional signal.For TDS, the second-quarter results present both sides of the investment case. The earnings beat, faster fiber deployment and improving tower metrics provide evidence of operational progress. However, a material portion of the earnings increase came from spectrum monetization, while TDS Telecom continues to face legacy declines and higher capital requirements. Investors therefore need to distinguish the one-time benefit from spectrum sales from the recurring earnings potential of the company’s expanding fiber and tower businesses. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report Verizon Communications Inc. (VZ) : Free Stock Analysis Report T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Telephone and Data Systems, Inc. TDS reported second-quarter 2026 earnings of $2.24 per share, up from a loss of $0.05 cents in the year-ago quarter, while total operating revenues rose 3.6% year over year to $309.3 million. Earnings topped the Zacks Consensus Estimate, delivering the 100% surprise provided in the earnings data, while revenue missed the $315 million consensus by 1.83%.The sharp earnings improvement reflected gains from Array Digital Infrastructure’s wireless spectrum sales, while TDS Telecom continued expanding its fiber footprint. TDS Telecom delivered approximately 66,000 marketable fiber service addresses in the quarter, and residential fiber net additions rose 47% year over year to 15,100. Telephone and Data Systems, Inc. price-consensus-eps-surprise-chart | Telephone and Data Systems, Inc. Quote TDS benefited materially from Array’s spectrum monetization during the quarter. Array closed a transaction with Verizon in June for $1 billion and completed additional sales to T-Mobile in May totaling about $168 million. The transactions helped lift TDS’ net income attributable to common shareholders to $260.6 million from a $6.0 million loss in the year-ago period.Array’s license sales also boosted its operating profile. Second-quarter operating revenues rose 90% year over year to $54.1 million, while adjusted EBITDA increased 56% to $56.2 million. The gain on license sales was excluded from adjusted EBITDA, which provides a clearer view of underlying operating performance. TDS Telecom remained focused on its fiber-led transformation. The business added approximately 66,000 marketable fiber service addresses in the second quarter, bringing the first-half total to about 106,000. Management called this the strongest first-half delivery in company history and raised the full-year address target to 250,000-300,000.The fiber build is translating into customer gains. Residential fiber net additions reached 15,100, up 47% year over year. TDS Telecom now serves nearly 1.2 million fiber service addresses, representing 60% of its footprint, while 80% of addresses are capable of gig speeds. TDS Telecom generated $248 million of operating revenues, down 6% year over year. Revenue pressure from copper and cable operations remained the key headwind, while divestitures also reduced the top line. Residential revenues fell to $178 million from $183 million, with fiber revenues rising 13% to help offset declines elsewhere.Cash expenses were $180 million, unchanged from the year-ago quarter, as cost-management savings offset spending tied to expansion markets and inflation. Adjusted EBITDA declined 21% to $70 million, while capital expenditures nearly doubled to $179 million as construction activity accelerated. Array’s tower business continued to improve its operating momentum. Cash site rental revenue increased 65% year over year when excluding T-Mobile interim revenues and DISH revenues. The tower tenancy rate rose to 0.98 from 0.96 in the first quarter, excluding DISH colocations.The company also continued addressing its tenantless tower portfolio. T-Mobile has until January 2028 to finalize committed site selections, after which Array expects to own between 1,000 and 1,700 tenantless towers. Management is pursuing lease-up, ground lease optimization and decommissioning where economic viability is limited. Telephone and Data Systems strengthened its liquidity position during the first half of 2026, helped by proceeds from spectrum monetization. Cash and cash equivalents totaled $2.19 billion as of June 30, 2026, compared with $765.95 million at the end of 2025. Long-term debt, net, declined to $670.65 million from $823.36 million over the same period.Net cash provided by operating activities from continuing operations was $151.07 million in the first half of 2026, up from $125.96 million in the year-ago period. However, free cash flow from continuing operations was negative $168.03 million versus negative $25.36 million a year earlier, reflecting higher capital spending as TDS accelerated its fiber deployment. TDS Telecom lowered its full-year revenue outlook to $1.00 billion-$1.025 billion from $1.015- billion-$1.055 billion and narrowed adjusted EBITDA guidance to $310 million-$330 million from $310 million-$350 million. At the same time, fiber service address guidance increased, prompting a higher capital expenditure range of $625 million-$675 million.Array narrowed revenue guidance to $205 million-$215 million and raised adjusted EBITDA guidance to $220 million-$235 million. Its capital expenditure range remained $25 million-$35 million. Array also paid a special dividend of $11 per common share in June, while TDS had about $520 million remaining under its share repurchase authorization at quarter-end. TDS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Keysight Technologies, Inc. KEYS is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.Analog Devices, Inc. ADI is set to release third-quarter fiscal 2026 earnings on Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.Applied Materials, Inc. AMAT is scheduled to release third-quarter fiscal 2026 earnings on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 35.48% from the year-ago reported figure.Applied Materials has a long-term earnings growth expectation of 32.44%. The company delivered an average earnings surprise of 6.06% in the last four reported quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Telephone and Data Systems, Inc.? Here are five stocks we like better. TDS Telecom accelerated its fiber expansion, raising 2026 delivery guidance to 250,000–300,000 new service addresses and capital-expenditure guidance to $625 million–$675 million. Fiber residential net additions rose 47% year over year in the second quarter. Legacy copper and cable declines continued to weigh on results, prompting TDS to lower 2026 telecom revenue guidance to $1.0 billion–$1.025 billion and narrow adjusted EBITDA guidance to $310 million–$330 million. Array Digital Infrastructure completed $1.17 billion in spectrum sales to T-Mobile and Verizon, has agreements to monetize about 70% of its spectrum holdings, and raised its 2026 revenue and adjusted EBITDA outlooks. 2 Mid-Cap Telecom Stocks Offering Superior Returns Telephone and Data Systems (NYSE:TDS) reported second-quarter progress in its fiber expansion and tower operations, while lowering revenue expectations for its telecom business amid continued pressure from legacy copper and cable services. The company also said Array Digital Infrastructure completed major spectrum transactions during the quarter and raised several elements of its full-year outlook. TDS Chief Executive Officer Walter Carlson said the company would not provide an update on its previously announced all-stock proposal to acquire the Array shares it does not already own. Array’s board has formed an independent special committee to evaluate the proposal. → No Hangover: Revisiting Microsoft One Week After Earnings The Market Is So Over Overstock...But Is It Now Oversold? TDS Telecom delivered approximately 66,000 marketable fiber service addresses during the second quarter, bringing first-half delivery to about 106,000 addresses. Ken Dixon, president and CEO of TDS Telecom, said the first-half performance was the strongest in company history and exceeded the company’s address delivery in the second half of 2025, traditionally its busiest construction period. The company increased its 2026 fiber address delivery guidance by 50,000 addresses and now expects to add between 250,000 and 300,000 new marketable fiber service addresses this year. TDS Telecom also raised its capital-expenditure outlook to a range of $625 million to $675 million to support the accelerated construction activity. → MarketBeat Week in Review – 08/03 - 08/07 These 11 stocks will be Dividend Kings in 5 years or less. TDS Telecom ended the quarter with nearly 1.2 million fiber service addresses, representing 60% of its total footprint, with 80% capable of gigabit speeds. The company said it is using federal Enhanced Alternative Connect America Cost Model, or E-ACAM, support to expand fiber to more than 300,000 addresses in 22 states within its incumbent footprint over the next two years. Dixon said TDS Telecom has already met its 2026 E-ACAM obligations in three states and has its highest crew counts ever in its remaining E-ACAM markets. He added that the company is seeing strong demand when it brings fiber to markets previously served by copper infrastructure. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Residential fiber net additions totaled approximately 15,100 in the second quarter, up 47% from a year earlier. TDS said it has expanded door-to-door sales capacity, added outside sales vendors, and improved performance through its online channel. The company is also adding sales resources in cable and multi-dwelling-unit markets. Despite fiber growth, TDS Telecom reported total operating revenue declined 6% year over year in the second quarter, or 4% excluding divestitures. Kristina Bothfeld, vice president of financial analysis and strategic planning, said approximately half of the year-over-year decline reflected discrete wholesale revenue adjustments that benefited 2025 results. The rest was tied to legacy revenue pressure, partly offset by fiber connection growth and higher revenue per connection. Residential fiber revenue rose 13%, or $11 million, from a year earlier, while cable revenue declined roughly 10%. Total residential revenue decreased by $6 million, including approximately $2 million related to divestitures of primarily copper-based markets. Cash expenses were flat as cost-management savings were offset by expenses tied to expansion markets and inflation. Capital expenditures totaled $179 million during the quarter. TDS Telecom reduced its full-year revenue guidance to $1 billion to $1.025 billion, citing pressure in its copper and cable markets. The company narrowed its adjusted EBITDA outlook to $310 million to $330 million. 2026 telecom revenue guidance: $1.0 billion to $1.025 billion. 2026 adjusted EBITDA guidance: $310 million to $330 million. 2026 fiber address delivery guidance: 250,000 to 300,000. 2026 capital-expenditure guidance: $625 million to $675 million. Chief Financial Officer Vicki Villacrez said the company’s balance sheet has been strengthened by transactions completed during the past year, including Array’s June spectrum sale to Verizon. TDS expects its acquisition of Granite State Communications to close in the third quarter, adding 11,000 fully fibered service addresses for $25 million. Villacrez said TDS continues to evaluate small- and medium-sized fiber acquisition opportunities that fit its clustering strategy and have either existing fiber infrastructure or an economically viable path to full fiber deployment. Array Digital Infrastructure said cash site rental revenue increased 55% year over year from all customers, or 65% when normalized for the impact of DISH. The company stopped recognizing revenue from DISH during the first quarter after DISH generally stopped making payments under its contracts in December and certain DISH entities entered bankruptcy proceedings. Array reported a tenancy ratio of 0.96 at quarter-end, compared with 0.98 at the end of the prior quarter. The company said that, excluding the removal of DISH co-locations from the metric, it continues to see steady tenancy growth. Anthony Carlson, Array’s president and CEO, said T-Mobile interim site revenue drove the year-over-year increase in site rental revenue. That revenue began to decline during the quarter as T-Mobile progresses through its network integration. T-Mobile has until January 2028 to finalize 2,015 committed sites under its master lease agreement with Array. Array narrowed its forecast for tenantless towers following the T-Mobile integration to between 1,000 and 1,700. The company said it is evaluating lease-up opportunities, ground-lease costs, long-term demand and potential decommissioning for sites without a path to economic viability. During the quarter, Array closed a $168 million sale of 600 MHz, 700 MHz and AWS spectrum licenses to T-Mobile and a $1 billion spectrum transaction with Verizon. Array said it has agreements to monetize roughly 70% of its spectrum holdings, with remaining T-Mobile transactions expected to close by the end of 2026, subject to regulatory approval and other closing conditions. The company continues to seek opportunities to monetize its remaining spectrum, primarily C-Band holdings. Carlson said Array is not a forced seller and believes the spectrum has substantial value given its availability for deployment and proximity to Upper C-Band spectrum. Array raised its 2026 total operating revenue outlook to $205 million to $210 million from a prior range beginning at $200 million. It increased adjusted OIBDA guidance to $60 million to $75 million and adjusted EBITDA guidance to $220 million to $235 million. Capital-expenditure guidance was unchanged. Telephone and Data Systems, Inc (NYSE: TDS) is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States. TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Telephone and Data Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

TDS Telecom and Array both update guidance for 2026 CHICAGO, Aug. 7, 2026 /PRNewswire/ -- As previously announced, TDS will hold a teleconference on August 7, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com. Telephone and Data Systems, Inc. (NYSE: TDS) reported second quarter 2026 operating results. "I am pleased with the progress our teams continue to make in executing our strategic objectives," said Walter Carlson, TDS President and CEO. "During the quarter, TDS Telecom expanded its marketable fiber service footprint by approximately 66,000 addresses and increased its fiber service address guidance for the year. Array delivered another quarter of sequential tower tenancy growth, highlighting the value of our assets. In addition, Array completed the previously announced spectrum sale to Verizon, now having completed transactions to monetize virtually all of its spectrum outside of the C-Band." Highlights* TDS Telecom Executing on fiber broadband strategy Service revenue down 6% Updated 2026 Guidance Array Optimizing tower operations Continuing to close pending sales of wireless spectrum Updated 2026 Guidance *Comparisons are 2Q'25 to 2Q'26 unless otherwise noted TDS reported total operating revenues from continuing operations of $309.3 million for the second quarter of 2026, versus $298.5 million for the same period one year ago. Net income (loss) attributable to TDS common shareholders and diluted earnings (loss) per share from continuing operations were $260.6 million and $2.24, respectively, for the second quarter of 2026 compared to $(6.0) million and $(0.05), respectively, in the same period one year ago. Recent Development On May 7, 2026, TDS delivered to the Array Board of Directors a letter setting forth a non-binding proposal to acquire all of the outstanding Array Common Shares that are not owned by TDS (the "Array Proposal"). A special committee of independent and disinterested directors of the Array Board of Directors has been formed to evaluate this proposal. For additional information on the Array Proposal, see TDS' Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on May 8, 2026. 2026 Estimated Results TDS' current estimates of full-year 2026 results for TDS Telecom and Array are shown below. Such estimates represent management's view as of August 7, 2026 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results. The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income (loss) before income taxes. In providing 2026 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance. Conference Call InformationTDS will hold a conference call on August 7, 2026 at 9:00 a.m. CT. Access the live call on the Events & Presentations page of investors.tdsinc.com or athttps://events.q4inc.com/attendee/198119429 Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. About TDSTelephone and Data Systems, Inc. (TDS) provides broadband, video, voice and wireless services through its TDS Telecom business. Array leases tower space to tenants and provides ancillary services, holds noncontrolling interests in primarily wireless operating companies and holds certain wireless spectrum licenses. Founded in 1969, TDS is headquartered in Chicago. Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release about Telephone and Data Systems, Inc., including its subsidiaries Array and TDS Telecom, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether any transaction related to the TDS non-binding proposal delivered to the Array Board of Directors to acquire all of the outstanding Array Common Shares not owned by TDS will be accepted, rejected, consummated, or abandoned; whether any such transaction, if accepted or completed, will result in additional value for shareholders and whether the process could result in adverse effects on either business; the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; whether the additional spectrum license sales to T-Mobile are consummated; whether Array can monetize its remaining spectrum assets; intense competition, including fixed wireless and satellite; economic and business risks associated with fixed rate annual escalators on colocation revenue contracts; Array's reliance on a small number of tenants for a substantial portion of its revenue; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; TDS' inability to protect rights to the land under its towers; changes in demand, consumer preferences and perceptions, price competition, or cost; advances or changes in technology; impacts of costs, integration issues or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS' businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS' future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and Array indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities that Array does not control; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and extreme weather events. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of TDS' Form 10-K as updated by any TDS Form 10-Q filed subsequent to such Form 10-K. For more information about TDS and its subsidiaries, visit:TDS: www.tdsinc.com TDS Telecom: www.tdstelecom.com Array: investors.arrayinc.com 125,959 Net cash provided by (used in) operating activities - discontinued operations(28,037)481,307Net cash provided by operating activities123,028607,266Cash flows from investing activitiesCash paid for additions to property, plant and equipment(317,919)(150,482)Cash paid for licenses—(4,145)Cash received from divestitures2,188,23524,162Other investing activities1,9252,512Net cash provided by (used in) investing activities - continuing operations1,872,241(127,953)Net cash used in investing activities - discontinued operations—(135,561)Net cash provided by (used in) investing activities1,872,241(263,514)Cash flows from financing activitiesIssuance of long-term debt1,300—Repayment of long-term debt(150,729)(17,076)Tax withholdings, net of cash receipts, for TDS stock-based compensation awards(34,219)(24,483)Tax withholdings, net of cash receipts, for Array stock-based compensation awards(2,068)(35,250)Repurchase of Array Common Shares—(21,360)Dividends paid to TDS shareholders(43,771)(43,830)Array dividends paid to noncontrolling public shareholders(332,480)—Payment of debt issuance costs—(2,467)Distributions to noncontrolling interests(3,540)(2,391)Cash paid for software license agreements(1,180)(839)Payments to acquire additional interest in subsidiaries(593)—Other financing activities73(314)Net cash used in financing activities - continuing operations(567,207)(148,010)Net cash used in financing activities - discontinued operations—(19,702)Net cash used in financing activities$ (567,207)$ (167,712)Net increase in cash, cash equivalents and restricted cash$ 1,428,062$ 176,040Cash, cash equivalents and restricted cashBeginning of period770,150383,222End of period$ 2,198,212$ 559,262 Telephone and Data Systems, Inc.EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations(Unaudited) EBITDA, Adjusted EBITDA and Adjusted OIBDA The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income and Income (loss) before income taxes. Array Adjusted Free Cash Flow (AFCF) AFCF is a non-GAAP measure defined as Net income from continuing operations adjusted for the items set forth in the reconciliation below. AFCF is not a measure of financial performance under GAAP and should not be considered as an alternative to Net income from continuing operations or as an indicator of cash flows. Management believes AFCF is a useful measure of Array's cash generated from operations and its noncontrolling investment interests. The following table reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure is presented following the sale of Array's wireless operations to T-Mobile on August 1, 2025, at which time the primary business operations for Array changed from providing wireless communications services to a standalone tower company. View original content:https://www.prnewswire.com/news-releases/tds-reports-second-quarter-2026-results-302845735.html

This article first appeared on GuruFocus. Total Operating Revenues (TDS Telecom): Declined 6% in the quarter, or 4% excluding the impact of divestitures. Residential Fiber Net Adds: Approximately 15,000 in the quarter, up 47% year over year. Residential Revenue per Connection: Increased 1% year over year. Fiber Revenue: Up 13% or $11 million versus prior year. Cable Revenue: Down roughly 10% versus the second quarter of 2025. Total Residential Revenue: Declined $6 million compared to prior year, with roughly $2 million of the decrease reflecting divestitures of primarily copper-based markets. Cash Expenses: Flat, as savings from cost management initiatives were offset by costs to support growing expansion markets and inflationary increases. Adjusted EBITDA (TDS Telecom): Declined in the quarter, reflecting top-line pressure from divestitures and legacy revenue streams. Capital Expenditures (TDS Telecom): Totaled $179 million in the quarter. Fiber Service Addresses: Delivered approximately 66,000 in the quarter, bringing the total to nearly 1.2 million, representing 60% of total footprint. Cash Site Rental Revenue (Array): Increased 65% versus Q2 of last year. Tenancy Ratio (Array): Improved sequentially from 0.98% to 0.96% at the end of the prior quarter. Equity Income (Array): $75 million for the six months ending June 30. Spectrum Monetization: Closed on multiple transactions, including the $168 million sale of 600 MHz, 700 MHz and AWS licenses to T-Mobile in May and the $1 billion transaction with Verizon in June. Warning! GuruFocus has detected 5 Warning Signs with TDS. Is TDS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TDS Telecom delivered approximately 66,000 fiber service addresses in Q2, marking the strongest first-half delivery in company history and exceeding the second half of 2025. Residential fiber net adds increased 47% year-over-year, reaching 15,100 in the quarter, driven by footprint expansion and copper-to-fiber conversions. Array's cash site rental revenue grew 65% year-over-year (normalized for DISH), supported by the T-Mobile MLA and strong pipeline activity. Array successfully monetized approximately 70% of its spectrum holdings, including the $1 billion Verizon transaction and $168 million T-Mobile sale, strengthening the balance sheet. TDS Telecom raised its 2026 fiber service address guidance by 50,000 to 250,000-300,000, reflecting strong execution and expanded construction capacity. Array increased its adjusted OIBDA guidance to $60-$75 million and adjusted EBITDA to $220-$235 million, driven by higher revenue and lower expenses. TDS Telecom's fiber revenue grew 13% year-over-year, helping offset legacy revenue declines, and the company is investing in sales capacity to drive further growth. Total operating revenues declined 6% in Q2, or 4% excluding divestitures, due to legacy revenue stream pressures and discrete wholesale revenue adjustments. TDS Telecom's adjusted EBITDA declined, reflecting top-line pressure from divestitures and legacy copper and cable revenue declines, leading to a narrowed guidance range. Cable revenues decreased roughly 10% year-over-year, prompting increased investment and sales capacity to stem the decline. Array's tenancy ratio remains below 1.0, and the company faces ongoing wind-down costs from legacy wireless operations, which are expected to persist through 2026. TDS was restricted from share repurchases in Q2 due to the pending offer for Array, limiting capital return flexibility. TDS Telecom's total residential revenue declined $6 million year-over-year, with copper declines outpacing fiber growth. Array's strategic alternatives costs related to the TDS proposal are elevated, impacting adjusted OIBDA calculations. Q: Can you elaborate on how satellite competition impacts fiber versus copper versus coax, and what it means for wireless and towers, particularly given TDS and Array's rural focus?A: Ken Dixon (President and CEO, TDS Telecom) stated that in markets where TDS has deployed fiber, there is no material impact from satellite. The company is increasing the pace of its fiber build, particularly in E-ACAM markets, to be first to fiber and is seeing strong demand. An Array representative added that terrestrial networks remain the bedrock of mobile data delivery and macro sites continue to be the most efficient and reliable way to deliver it. Q: When can TDS get back into the stock buyback market given the restrictions from the TDS offer to Array, and is there now an open window for C-band discussions?A: Vicki Villacrez (CFO, TDS) confirmed TDS was not in the market for share repurchases due to the pending offer to Array but remains committed to executing on the $520 million remaining authorization as soon as business and market conditions permit. Regarding C-band, an Array representative noted they are encouraged by the AWS reauction results and believe the spectrum is extremely valuable, but they are not forced sellers and will explore sales whenever permitted by regulation. Q: What is the confidence underlying the TDS Telecom EBITDA guide, which implies a $350 million annualized run rate in the second half?A: Kristina Bothfeld (VP of Financial Analysis and Strategic Planning, TDS) explained that while legacy revenue streams are pressuring results, the company is seeing strong momentum in fiber revenue growth (up 13% in the quarter). The transformation program is delivering cost savings, with a midpoint guiding to a 2% reduction in costs for the full year, which together with fiber revenue growth drives the expected inflection. Q: Have fiber asset valuations changed over the last 6 to 12 months, and how are you thinking about M&A on both the fiber and tower sides?A: Vicki Villacrez (CFO, TDS) highlighted the recent agreement to acquire Granite State Communications (11,000 fiber service addresses for $25 million) as an example of attractive small tuck-ins that make economic sense. Anthony Carlson (President and CEO, Array) noted that private market tower prices are "a bit high" relative to other uses of capital, and Array is more focused on improving operations like ground lease optimization than buying tower assets at current prices. Q: What are you seeing in terms of overbuild activity in your footprint, and do you still deploy fiber in markets where overbuilders are present?A: Ken Dixon (President and CEO, TDS Telecom) stated that while there has been some fiber overbuilder activity in cable markets, TDS's cable markets are already 22% fiber. The company has approved additional fiberization in some cable markets where there is an economical path, and will continue to expand fiber where it makes sense despite competitive activity. Q: What drove the year-over-year increase in broadband churn on both fiber and cable?A: Ken Dixon (President and CEO, TDS Telecom) clarified that fiber churn improved sequentially in the second quarter to 1.2%, and overall churn improved sequentially as well. He stated that the fiber business is very competitive in the marketplace and churn is right where they expected it to be. Q: Can you provide color on the framework used for evaluating fiber asset valuations?A: Vicki Villacrez (CFO, TDS) explained that when evaluating fiber opportunities, TDS looks at location, competition, the percentage already fibered or the economic path to fiber, and whether the opportunity advances the clustering strategy. The company focuses on contiguous tuck-ins that support its anchor market investments and drive strong growth in population and density areas. Q: Can you frame the longer-term leasing opportunity for the tower business in terms of revenue or colocation growth?A: An Array representative indicated that the trend is going up, with demand seen on both towers expected to be tenantless after T-Mobile integration and on towers that already have tenants. There is a significant amount of growth potential from both categories, though the exact endpoint depends on multiple factors. Q: Are there any changes from controlling partners in how they value cellular partnership stakes, and can that help close the bid-ask spread?A: An Array representative acknowledged a persistent bid-ask spread due to low tax bases, but noted that a net present value calculation based on historical growth rates and cost of capital ascribes significantly higher value to these assets than a simple EBITDA multiple approach. Array remains open to offers that reflect the value they see in these businesses. Q: What is your assessment of sales efficiency, and what initiatives could improve conversion of fiber passings into paying customers?A: Ken Dixon (President and CEO, TDS Telecom) highlighted strong address delivery as the primary driver of sales, with robust pre-sale execution achieving low-20% pre-sale penetration. The company has significantly expanded door-to-door sales capacity with both internal teams and new vendors, improved the dot-com channel (the lowest cost acquisition channel), and brought in new leadership for the multi-dwelling unit channel, which represents 22% of new addresses. Q: Do you see potential to expand the universe of parties interested in C-band spectrum given recent satellite player transactions?A: An Array representative stated that there is growing demand for spectrum from a growing number of parties, and Array would not discriminate in who they sell C-band spectrum to. The focus is on achieving the highest possible value, and they would be happy to sell to non-traditional parties if the price is right. Q: What initiatives are driving the improvement in tenancy ratio, and could there be a step change?A: An Array representative cited the in-sourced sales team, the new vertical sales business (serving high-speed traders and other players), and the Verizon deal as stimulating demand. Additionally, the tower count is being actively managed, with economically unviable towers being exited from the portfolio, which reduces the denominator and increases the tenancy ratio. Q: What is the penetration rate in E-ACAM markets, and what is the migration opportunity versus penetration opportunity?A: Ken Dixon (President and CEO, TDS Telecom) declined For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by record fiber address delivery, with the first half of 2026 exceeding the peak construction period of late 2025 due to expanded capacity and strong execution. Management attributed the decline in total operating revenues to discrete adjustments to wholesale revenues and legacy copper and cable pressures, which were partially offset by a 13% increase in residential fiber revenue. The company is leveraging its position as the largest E-ACAM recipient to accelerate fiber deployment in hard-to-reach rural areas, converting copper footprints to fiber to mitigate legacy headwinds. Strategic positioning has shifted toward a fiber-centric model, with 60% of the total footprint now served by fiber and 80% of addresses capable of gigabit speeds. Array Digital Infrastructure successfully monetized approximately 70% of its spectrum holdings through transactions with Verizon and T-Mobile, significantly strengthening the balance sheet. Operational transformation efforts are focused on system modernization and cost management, which helped keep cash expenses flat despite inflationary pressures and footprint expansion. Management increased the 2026 fiber service address guidance to 250,000-300,000, reflecting confidence in build teams and a robust construction pipeline. Revenue guidance was lowered to $1 billion-$1.025 billion due to faster-than-anticipated declines in legacy copper and cable markets. CapEx guidance was raised to $625 million-$675 million to support the accelerated fiber build cadence, which management noted is not currently capital-constrained. The company expects to close the acquisition of Granite State Communications in Q3 2026, adding 11,000 fully fiber addresses to support its clustering strategy. Array expects wind-down costs for legacy wireless operations to persist through 2026 at a declining level, while T-Mobile interim site revenue is projected to decrease as integrations finalize. DISH Wireless and related entities filed for bankruptcy, leading Array to cease revenue recognition and fully reserve all outstanding 2025 balances. TDS is currently restricted from share repurchases due to its pending offer to acquire the minority interest of Array, leaving $520 million remaining under authorization. Management is narrowing the projected tenantless tower range to 1,000-1,700 post-T-Mobile integration and is evaluating decommissioning for sites without economic viability. A prospective classification shift moved property taxes and insurance into cost of operations from SG&A, impacting year-over-year expense comparisons. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated they see no material impact from satellite in fiber markets, emphasizing that being 'first to fiber' remains the primary competitive advantage. For towers, management asserted that terrestrial networks remain the 'bedrock' of mobile data and macro sites are the most efficient delivery method. Management is not a 'forced seller' and believes the cost of building out the spectrum is reasonable relative to its value. They are encouraged by recent AWS re-auction results and believe the C-band's mature ecosystem makes it a highly compelling 5G asset for potential buyers. TDS is significantly expanding door-to-door sales capacity through internal teams and third-party vendors, particularly in cable and ILEC markets. A new leadership role was created to focus specifically on the MDU (multi-dwelling unit) channel, which represents 22% of new addresses. TDS focuses on small-to-medium 'tuck-in' acquisitions that are contiguous to current footprints and have an accretive path to all-fiber. Key metrics include the competitive landscape, current fiber percentage, and the ability to support a clustering strategy.

GCI Liberty, Inc. - Series C GCI Group (GLIBK) came out with quarterly earnings of $0.4 per share, missing the Zacks Consensus Estimate of $1.15 per share. This compares to earnings of $0.94 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -65.22%. A quarter ago, it was expected that this company would post earnings of $1.21 per share when it actually produced earnings of $0.45, delivering a surprise of -62.81%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. GCI Liberty, Inc. - Series C GCI Group, which belongs to the Zacks Wireline - National industry, posted revenues of $261 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $261 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. GCI Liberty, Inc. - Series C GCI Group shares have lost about 36.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While GCI Liberty, Inc. - Series C GCI Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for GCI Liberty, Inc. - Series C GCI Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.97 on $266 million in revenues for the coming quarter and $3.36 on $1.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireline - National is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Telephone & Data Systems (TDS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This parent of U.S. Cellular and TDS Telecom is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +280%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Telephone & Data Systems' revenues are expected to be $315.05 million, down 73.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GCI Liberty, Inc. - Series C GCI Group (GLIBK) : Free Stock Analysis Report Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Southwest Gas (SWX) came out with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.26%. A quarter ago, it was expected that this natural gas company would post earnings of $1.88 per share when it actually produced earnings of $1.91, delivering a surprise of +1.6%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Southwest Gas, which belongs to the Zacks Utility - Gas Distribution industry, posted revenues of $358.15 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 11.91%. This compares to year-ago revenues of $1.12 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Southwest Gas shares have added about 11.3% since the beginning of the year versus the S&P 500's gain of 13%. While Southwest Gas has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Southwest Gas was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $319.09 million in revenues for the coming quarter and $4.27 on $1.83 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Gas Distribution is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Utilities sector, Telephone & Data Systems (TDS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 7. This parent of U.S. Cellular and TDS Telecom is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +280%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Telephone & Data Systems' revenues are expected to be $315.05 million, down 73.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southwest Gas Corporation (SWX) : Free Stock Analysis Report Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research