TELEPHONE & DATA SYSTEMS INC /DE/ (Form: 8-K, Received: 02/20/2026 07:38:53)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 20, 2026

TELEPHONE AND DATA SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-14157

36-2669023

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

30 North LaSalle Street, Suite 4000, Chicago, Illinois 60602

(Address of principal executive offices and zip code)

Registrant's telephone number, including area code: (312) 630-1900

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Shares, $.01 par value

TDS

New York Stock Exchange

Depositary Shares each representing a 1/1000th interest in a share of 6.625% Series UU Cumulative Redeemable Perpetual Preferred Stock, $.01 par value

TDSPrU

New York Stock Exchange

Depositary Shares each representing a 1/1000th interest in a share of 6.000% Series VV Cumulative Redeemable Perpetual Preferred Stock, $.01 par value

TDSPrV

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


☐			Emerging growth company


☐			If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02. Results of Operations and Financial Condition

On February 20, 2026, Telephone and Data Systems, Inc. (TDS) issued a news release announcing its results of operations for the period ended December 31, 2025. A copy of the news release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information in this Item 2.02 of Form 8-K is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor will any such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d) The following exhibits are being filed herewith:


Exhibit Number						Description of Exhibits

99.1						Earnings Press Release dated February 2 0 , 202 6

104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		TELEPHONE AND DATA SYSTEMS, INC.

Date:	February 20, 2026	By:	/s/ Vicki L. Villacrez
			Vicki L. Villacrez
			Executive Vice President and Chief Financial Officer

Exhibit 99.1

NEWS RELEASE

As previously announced, TDS will hold a teleconference on February 20, 2026, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

TDS reports fourth quarter and full year 2025 results

TDS Telecom increases its long-term marketable fiber service goal to 2.1 million addresses

TDS Telecom and Array provide 2026 guidance

CHICAGO (February 20, 2026) — Telephone and Data Systems, Inc. (NYSE:TDS) reported results for the fourth quarter and full year 2025.

“2025 was a year of significant transformation for TDS,” said Walter Carlson, President and CEO. “We completed the largest transaction in our history with the sale of our wireless business, launched a new tower company now operating as Array, and ended the year with 1.06 million marketable fiber service addresses at TDS Telecom. These actions strengthened our balance sheet and positioned the company for sustainable growth."

Highlights

TDS

•Repurchased 1,765,863 Common Shares for $67.4 million in the fourth quarter of 2025

•Repaid $150 million of Export Development Canada debt in January 2026

TDS Telecom

•Executed on fiber broadband strategy

◦Grew fiber net additions 44,900 in 2025

◦Deployed 140,000 new marketable fiber service addresses in 2025

•Increased long-term marketable fiber service address goal to 2.1 million, an increase of 300,000 addresses

Array

•Grew site rental revenues 51% year over year

•Closed on the sale of wireless spectrum with AT&T on January 13, 2026, for $1.018 billion

•Paid a $10.25 per share special dividend on February 2, 2026

TDS reported total operating revenues from continuing operations of $330.7 million for the fourth quarter of 2025, versus $295.3 million for the same period one year ago. Net income attributable to TDS common shareholders and related diluted earnings per share from continuing operations were $37.2 million and $0.32, respectively, for the fourth quarter of 2025 compared to $1.0 million and $0.01, respectively, in the same period one year ago.

TDS reported total operating revenues from continuing operations of $1,228.2 million and $1,297.0 million for the years ended 2025 and 2024, respectively. Net income (loss) attributable to TDS common shareholders and related diluted earnings (loss) per share from continuing operations were $48.2 million and $0.39, respectively, for the year ended 2025 compared to $(141.4) million and $(1.24), respectively, for the year ended 2024.

“In 2026, we intend to continue to advance our strategic priorities by investing in the expansion of TDS Telecom’s fiber business and supporting co‑location and profitability initiatives at Array. We also expect to close our pending spectrum transactions and pursue opportunities to further monetize our remaining spectrum,” Carlson added.

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 February 20, 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.




TDS Telecom	2026 Estimated Results	Actual Results for the Year Ended December 31, 2025*
(Dollars in millions)
Total operating revenues	$1,015-$1,055	$1,038
Adjusted OIBDA1 (Non-GAAP)	$300-$340	$319
Adjusted EBITDA1 (Non-GAAP)	$310-$350	$330
Capital expenditures	$550-$600	$406
* The 2025 divestitures at TDS Telecom impact year-over-year comparisons. The divested markets contributed $19M in annual revenues in 2025.

Array	2026 Estimated Results	Actual Results for the Year Ended December 31, 2025
(Dollars in millions)
Total operating revenues	$200-$215	$163
Adjusted OIBDA1 (Non-GAAP)	$50-$65	$1
Adjusted EBITDA1 (Non-GAAP)	$200-$215	$194
Capital expenditures	$25-$35	$30

The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income 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.


	TDS Telecom		Array
	2026 Estimated Results	Actual Results for the Year Ended December 31, 2025	2026 Estimated Results	Actual Results for the Year Ended December 31, 2025
(Dollars in millions)
Net income from continuing operations (GAAP)	N/A	$28	N/A	$172
Add back:
Income tax expense (benefit)	N/A	10	N/A	(31)
Income (loss) before income taxes (GAAP)	($15)-$25	$38	$780-$795	$141
Add back or deduct:
Interest expense	—	(7)	45	28
Depreciation, amortization and accretion	325	300	50	48
EBITDA (Non-GAAP)1	$310-$350	$331	$875-$890	$218
Add back or deduct:
Expenses related to strategic alternatives review	—	6	—	2
Loss on impairment of intangible assets	—	1	—	48
(Gain) loss on asset disposals, net	—	15	—	2
(Gain) loss on sale of business and other exit costs, net	—	(23)	—	—
(Gain) loss on license sales and exchanges, net	—	—	(595)	(6)

Short-term imputed spectrum lease income	—	—	(80)	(69)
Adjusted EBITDA (Non-GAAP)1	$310-$350	$330	$200-$215	$194
Deduct:
Equity in earnings of unconsolidated entities	—	—	140	174
Interest and dividend income	5	6	10	19
Other, net	5	5	—	—
Adjusted OIBDA (Non-GAAP)1	$300-$340	$319	$50-$65	$1

Numbers may not foot due to rounding.

1EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS’ operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS’ financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes.

Conference Call Information

TDS will hold a conference call on February 20, 2026 at 9:00 a.m. Central Time.

•Access the live call on the Events & Presentations page of investors.tdsinc.com or at

https://events.q4inc.com/attendee/189864142

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 TDS

Telephone 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.

Contacts

John Toomey, Treasurer and Vice President - Corporate Relations

john.toomey@tdsinc.com

Julie Mathews, Director - Investor Relations

julie.mathews@tdsinc.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, 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: 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 and the previously announced spectrum license sales to Verizon are consummated; whether Array can monetize its remaining spectrum assets; intense competition; 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 revenues; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; inability to protect TDS' real estate rights, with respect to land leases; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances or changes in technology; impacts of costs, integration problems 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 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.

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com

TDS Telecom: www.tdstelecom.com

Array: investors.arrayinc.com

Array Digital Infrastructure, Inc.

Summary Operating Data (Unaudited)


As of or for the Quarter Ended	12/31/2025		9/30/2025
Capital expenditures from continuing operations (thousands)	$	12,933	$	7,927
Owned towers	4,450		4,449
Number of colocations1	4,572		4,517
Tower tenancy rate2	1.03		1.02

1Represents instances where a third-party leases space on a company-owned tower. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA.

2Calculated as total number of colocations divided by total number of towers. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA.

TDS Telecom

Summary Operating Data (Unaudited)


As of or for the Quarter Ended	12/31/2025			9/30/2025			6/30/2025			3/31/2025			12/31/2024
Residential connections
Broadband
Incumbent Fiber	127,300			123,500			121,200			119,700			118,500
Incumbent Copper	91,200			102,000			106,500			112,600			116,900
Expansion Fiber	160,600			150,700			141,800			133,200			126,100
Cable	182,800			186,100			188,200			190,200			191,500
Total Broadband	561,900			562,400			557,700			555,800			553,000
Video	111,500			114,300			116,500			118,700			121,000
Voice	228,900			242,200			248,700			256,900			261,600
Wireless	3,300			2,200			1,600			900			100
Total Residential connections	905,600			921,100			924,500			932,300			935,700
Commercial connections	173,900			180,300			184,300			187,600			190,500
Total connections1	1,079,500			1,101,300			1,108,800			1,119,900			1,126,300

Total residential fiber net adds	15,100			11,200			10,300			8,300			13,600
Total residential broadband net adds	4,500			4,600			3,900			2,800			7,900

Residential fiber churn2	1.2		%	1.5		%	1.1		%	0.9		%	1.0		%
Total residential broadband churn	1.6		%	1.7		%	1.5		%	1.3		%	1.4		%

Residential revenue per connection3	$	65.95		$	65.66		$	65.85		$	65.67		$	64.72

Capital expenditures (thousands)	$	154,904		$	102,429		$	90,187		$	58,870		$	81,743

Numbers may not foot due to rounding.

1Divestitures in 2025 resulted in a decrease of 19,400 connections, including 7,700 residential broadband connections.

2Residential fiber churn represents the percentage of incumbent and expansion fiber connections that disconnected service each month. These rates represent the average monthly churn rate for each respective period.

3Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.


Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars and shares in thousands, except per share amounts)
Operating revenues
TDS Telecom	$	260,956	$	264,295	(1)	%	$	1,038,358	$	1,060,857	(2)	%
Array	60,328		26,089		N/M		162,961		102,933		58	%
All Other1	9,428		4,964		90	%	26,888		133,188		(80)	%
	330,712		295,348		12	%	1,228,207		1,296,978		(5)	%
Operating expenses
TDS Telecom
Expenses excluding depreciation, amortization and accretion	179,941		187,101		(4)	%	725,672		720,517		1	%
Depreciation, amortization and accretion	76,720		71,713		7	%	300,196		270,660		11	%
Loss on impairment of intangible assets	900		1,103		(18)	%	900		1,103		(18)	%
(Gain) loss on asset disposals, net	7,163		4,032		78	%	15,054		12,376		22	%
(Gain) loss on sale of business and other exit costs, net	(17,886)		(49,108)		64	%	(23,121)		(49,108)		53	%

	246,838		214,841		15	%	1,018,701		955,548		7	%
Array
Expenses excluding depreciation, amortization and accretion	38,204		43,733		(13)	%	163,929		175,553		(7)	%
Depreciation, amortization and accretion	12,402		12,156		2	%	48,262		47,212		2	%
Loss on impairment of intangible assets	—		—		N/M		47,679		136,234		(65)	%
(Gain) loss on asset disposals, net	1,125		219		N/M		1,746		809		N/M

(Gain) loss on license sales and exchanges, net	—		(900)		—		(6,123)		3,460		N/M
	51,731		55,208		(6)	%	255,493		363,268		(30)	%
All Other1
Expenses excluding depreciation, amortization and accretion	14,610		14,989		(3)	%	48,721		180,882		(73)	%
Depreciation, amortization and accretion	667		950		(30)	%	3,427		7,825		(56)	%

(Gain) loss on asset disposals, net	36		(9)		N/M		47		(44)		N/M
(Gain) loss on sale of business and other exit costs, net	—		(7,510)		N/M		(797)		(19,242)		96	%

	15,313		8,420		82	%	51,398		169,421		(70)	%
Total operating expenses	313,882		278,469		13	%	1,325,592		1,488,237		(11)	%

Operating income (loss)
TDS Telecom	14,118		49,454		(71)	%	19,657		105,309		(81)	%
Array	8,597		(29,119)		N/M		(92,532)		(260,335)		64	%
All Other1	(5,885)		(3,456)		(70)	%	(24,510)		(36,233)		(32)	%
	16,830		16,879		—		(97,385)		(191,259)		49	%
Other income (expense)
Equity in earnings of unconsolidated entities	26,792		38,506		(30)	%	176,101		163,623		8	%
Interest and dividend income	12,263		6,933		77	%	40,307		27,201		48	%

Interest expense	(12,316)		(29,657)		58	%	(112,668)		(108,575)		(4)	%
Short-term imputed spectrum lease income	38,619		—		N/M		69,033		—		N/M
Other, net	3,112		2,541		22	%	13,574		5,622		N/M
Total other income	68,470		18,323		N/M		186,347		87,871		N/M
Income (loss) before income taxes	85,300		35,202		N/M		88,962		(103,388)		N/M
Income tax expense (benefit)	22,936		14,728		56	%	(62,184)		(22,067)		N/M
Net income (loss) from continuing operations	62,364		20,474		N/M		151,146		(81,321)		N/M
Less: Net income (loss) from continuing operations attributable to noncontrolling interests, net of tax	7,839		2,163		N/M		33,742		(9,150)		N/M
Net income (loss) from continuing operations attributable to TDS shareholders	$	54,525	$	18,311	N/M		$	117,404	$	(72,171)	N/M


Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars and shares in thousands, except per share amounts)
Net income (loss) from discontinued operations	$	1,246	$	(13,313)	N/M		$	(130,904)	$	54,840	N/M
Less: Net income (loss) from discontinued operations attributable to noncontrolling interests, net of tax	(701)		(865)		(19)	%	(7,264)		10,374		N/M
Net income (loss) from discontinued operations attributable to TDS shareholders	1,947		(12,448)		N/M		(123,640)		44,466		N/M

Net income (loss)	63,610		7,161		N/M		20,242		(26,481)		N/M
Less: Net income attributable to noncontrolling interests, net of tax	7,138		1,298		N/M		26,478		1,224		N/M
Net income (loss) attributable to TDS shareholders	56,472		5,863		N/M		(6,236)		(27,705)		77	%
TDS Preferred Share dividends	17,306		17,306		—		69,225		69,225		—
Net income (loss) attributable to TDS common shareholders	$	39,166	$	(11,443)	N/M		$	(75,461)	$	(96,930)	22	%

Basic weighted average shares outstanding	114,767		114,282		–		115,179		113,714		1	%

Basic earnings (loss) per share from continuing operations attributable to TDS common shareholders	$	0.32	$	0.01	N/M		$	0.42	$	(1.24)	N/M
Basic earnings (loss) per share from discontinued operations attributable to TDS common shareholders	$	0.02	$	(0.11)	N/M		$	(1.08)	$	0.39	N/M
Basic earnings (loss) per share attributable to TDS common shareholders	$	0.34	$	(0.10)	N/M		$	(0.66)	$	(0.85)	23	%

Diluted weighted average shares outstanding	117,516		118,273		(1)	%	118,563		113,714		4	%

Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders	$	0.32	$	0.01	N/M		$	0.39	$	(1.24)	N/M
Diluted earnings (loss) per share from discontinued operations attributable to TDS common shareholders	$	0.01	$	(0.11)	N/M		$	(1.04)	$	0.39	N/M
Diluted earnings (loss) per share attributable to TDS common shareholders	$	0.33	$	(0.10)	N/M		$	(0.65)	$	(0.85)	23	%

N/M - Percentage change not meaningful.

1 Consists of TDS corporate, intercompany eliminations and all other business operations not included in the Array and TDS Telecom segments.

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)


Year Ended December 31,	2025		2024
(Dollars in thousands)
Cash flows from operating activities
Net income (loss)	$	20,242	$	(26,481)
Net income (loss) from discontinued operations	(130,904)		54,840
Net income (loss) from continuing operations	151,146		(81,321)
Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities
Depreciation, amortization and accretion	351,885		325,697
Bad debts expense	8,172		7,424
Stock-based compensation expense	27,174		18,335
Deferred income taxes, net	(66,190)		(20,978)
Equity in earnings of unconsolidated entities	(176,101)		(163,623)
Distributions from unconsolidated entities	215,599		168,701
Loss on impairment of intangible assets	48,579		137,337
(Gain) loss on asset disposals, net	16,847		13,141
(Gain) loss on sale of business and other exit costs, net	(23,918)		(68,350)
(Gain) loss on license sales and exchanges, net	(6,123)		3,460


Other operating activities	29,617		4,576
Changes in assets and liabilities from operations
Accounts receivable	(24,189)		6,185

Inventory	(10)		(327)
Accounts payable	(9,830)		(56,066)
Customer deposits and deferred revenues	(70,569)		399
Accrued taxes	(19,837)		(5,105)

Other assets and liabilities	(113,968)		6,295
Net cash provided by operating activities - continuing operations	338,284		295,780
Net cash provided by operating activities - discontinued operations	251,605		850,093
Net cash provided by operating activities	589,889		1,145,873

Cash flows from investing activities
Cash paid for additions to property, plant and equipment	(390,529)		(365,446)
Cash paid for licenses	(4,175)		(19,198)
Cash received from divestitures	72,342		147,267

Other investing activities	4,067		1,449
Net cash used in investing activities - continuing operations	(318,295)		(235,928)
Net cash provided by (used in) investing activities - discontinued operations	2,462,399		(518,572)
Net cash provided by (used in) investing activities	2,144,104		(754,500)

Cash flows from financing activities
Issuance of long-term debt	325,000		440,000
Repayment of long-term debt	(1,962,116)		(455,548)



Tax withholdings, net of cash receipts, for TDS stock-based compensation awards	(1,275)		(2,308)
Tax withholdings, net of cash receipts, for Array stock-based compensation awards	(63,446)		(11,246)
Repurchase of TDS Common Shares	(108,129)		—
Repurchase of Array Common Shares	(21,360)		(54,091)
Dividends paid to TDS shareholders	(87,670)		(104,383)
Array dividends paid to noncontrolling public shareholders	(358,579)		—
Payment of debt issuance costs	(8,830)		(16,170)
Distributions to noncontrolling interests	(21,932)		(4,716)

Cash paid for software license agreements	(1,933)		(1,251)
Other financing activities	(16,258)		(1,115)
Net cash used in financing activities - continuing operations	(2,326,528)		(210,828)
Net cash used in financing activities - discontinued operations	(20,537)		(66,631)
Net cash used in financing activities	(2,347,065)		(277,459)

Net increase in cash, cash equivalents and restricted cash	386,928		113,914

Cash, cash equivalents and restricted cash
Beginning of period	383,222		269,308
End of period	$	770,150	$	383,222

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS


December 31,	2025		2024
(Dollars in thousands)
Current assets
Cash and cash equivalents	$	765,952	$	363,612

Accounts receivable, net	109,981		98,552
Inventory, net	4,062		4,052
Prepaid expenses	28,206		32,367
Income taxes receivable	1,292		2,487

Current assets of discontinued operations	—		1,163,032
Other current assets	13,976		31,088
Total current assets	923,469		1,695,190

Non-current assets held for sale	1,598,131		12

Non-current assets of discontinued operations	—		4,499,561

Licenses	1,642,972		3,289,648



Other intangible assets, net	131,673		160,804

Investments in unconsolidated entities	461,922		500,471

Property, plant and equipment, net	2,965,455		2,876,214

Operating lease right-of-use assets	515,081		520,902

Other assets and deferred charges	159,600		139,430

Total assets	$	8,398,303	$	13,682,232

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY


December 31,	2025		2024
(Dollars in thousands, except per share amounts)
Current liabilities
Current portion of long-term debt	$	5,274	$	31,131
Accounts payable	115,822		74,866
Customer deposits and deferred revenues	125,140		46,992
Accrued interest	2,836		8,999
Accrued taxes	46,721		36,561
Accrued compensation	56,774		147,061
Short-term operating lease liabilities	26,180		27,529

Current liabilities of discontinued operations	20,242		671,575
Other current liabilities	41,322		44,980
Total current liabilities	440,311		1,089,694



Non-current liabilities of discontinued operations	—		2,310,660

Deferred liabilities and credits
Deferred income tax liability, net	743,633		980,769
Long-term operating lease liabilities	549,617		540,904
Other deferred liabilities and credits	574,025		460,676

Long-term debt, net	823,364		2,415,686

Noncontrolling interests with redemption features	—		15,831













Total equity	5,267,353		5,868,012

Total liabilities and equity	$	8,398,303	$	13,682,232

Balance Sheet Highlights

(Unaudited)


	December 31, 2025
	TDS Telecom		Array		TDS Corporate & Other		Intercompany Eliminations		TDS Consolidated
(Dollars in thousands)
Cash and cash equivalents	$	144,968	$	113,400	$	655,894	$	(148,310)	$	765,952



Licenses and other intangible assets	$	131,826	$	1,642,187	$	632	$	—	$	1,774,645
Investment in unconsolidated entities	3,947		412,608		55,868		(10,501)		461,922
	$	135,773	$	2,054,795	$	56,500	$	(10,501)	$	2,236,567

Property, plant and equipment, net	$	2,562,057	$	388,999	$	14,399	$	—	$	2,965,455

Long-term debt, net:
Current portion	$	160	$	4,063	$	1,051	$	—	$	5,274
Non-current portion	2,887		670,258		150,219		—		823,364
	$	3,047	$	674,321	$	151,270	$	—	$	828,638

TDS Telecom Highlights

(Unaudited)


	Three Months Ended December 31,						Year Ended December 31,
	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars in thousands)
Operating revenues
Residential
Incumbent	$	80,179	$	86,164	(7)	%	$	332,347	$	355,395	(6)	%
Expansion	41,935		31,373		34	%	152,531		114,113		34	%
Cable	58,847		64,787		(9)	%	245,100		270,444		(9)	%
Total residential	180,961		182,324		(1)	%	729,978		739,952		(1)	%
Commercial	33,941		37,374		(9)	%	137,258		147,564		(7)	%
Wholesale	45,965		44,363		4	%	170,499		172,520		(1)	%
Total service revenues	260,867		264,061		(1)	%	1,037,735		1,060,036		(2)	%
Equipment revenues	89		234		(62)	%	623		821		(24)	%
Total operating revenues	260,956		264,295		(1)	%	1,038,358		1,060,857		(2)	%

Cost of operations (excluding Depreciation, amortization and accretion reported below)	99,351		103,047		(4)	%	399,616		399,815		—
Cost of equipment and products	193		208		(8)	%	754		723		4	%
Selling, general and administrative expenses	80,397		83,846		(4)	%	325,302		319,979		2	%
Depreciation, amortization and accretion	76,720		71,713		7	%	300,196		270,660		11	%
Loss on impairment of intangible assets	900		1,103		(18)	%	900		1,103		(18)	%
(Gain) loss on asset disposals, net	7,163		4,032		78	%	15,054		12,376		22	%
(Gain) loss on sale of business and other exit costs, net	(17,886)		(49,108)		64	%	(23,121)		(49,108)		53	%
Total operating expenses	246,838		214,841		15	%	1,018,701		955,548		7	%

Operating income	$	14,118	$	49,454	(71)	%	$	19,657	$	105,309	(81)	%


Array Digital Infrastructure, Inc. Highlights
(Unaudited)

	Three Months Ended December 31,						Year Ended December 31,
Array	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
(Dollars in thousands)
Operating revenues
Site rental	$	54,990	$	26,019	N/M		$	154,654	$	102,610	51	%
Services	5,338		70		N/M		8,307		323		N/M
Total operating revenues	60,328		26,089		N/M		162,961		102,933		58	%

Operating expenses
Cost of operations (excluding Depreciation, amortization and accretion reported below)	22,823		20,174		13	%	79,485		72,997		9	%

Selling, general and administrative	15,381		23,559		(35)	%	84,444		102,556		(18)	%
Depreciation, amortization and accretion	12,402		12,156		2	%	48,262		47,212		2	%
Loss on impairment of licenses	—		—		N/M		47,679		136,234		(65)	%
(Gain) loss on asset disposals, net	1,125		219		N/M		1,746		809		N/M

(Gain) loss on license sales and exchanges, net	—		(900)		N/M		(6,123)		3,460		N/M
Total operating expenses	51,731		55,208		(6)	%	255,493		363,268		(30)	%

Operating income (loss)	$	8,597	$	(29,119)	N/M		$	(92,532)	$	(260,335)	64	%

N/M - Percentage change not meaningful

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)

Free Cash Flow


	Year Ended December 31,
TDS Consolidated		2025		2024
(Dollars in thousands)
Cash flows from operating activities - continuing operations (GAAP)		$	338,284	$	295,780
Cash paid for additions to property, plant and equipment		(390,529)		(365,446)
Cash paid for software license agreements		(1,933)		(1,251)
Free cash flow - continuing operations (Non-GAAP)1		$	(54,178)	$	(70,917)

1Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.

Telephone and Data Systems, Inc.

EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations

(Unaudited)

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) and Income (loss) before income taxes.


	Three Months Ended December 31,				Year Ended December 31,
TDS Telecom	2025		2024		2025		2024
(Dollars in thousands)
Net income (GAAP)	$	8,187	$	34,008	$	27,516	$	84,901
Add back or deduct:
Income tax expense (benefit)	9,595		20,301		10,157		35,040
Income before income taxes (GAAP)	17,782		54,309		37,673		119,941
Add back or deduct:
Interest expense	(2,487)		(1,676)		(6,654)		(5,197)
Depreciation, amortization and accretion expense	76,720		71,713		300,196		270,660
EBITDA (Non-GAAP)	92,015		124,346		331,215		385,404
Add back or deduct:
Expenses related to strategic alternatives review	2,711		—		6,207		—
Loss on impairment of intangible assets	900		1,103		900		1,103
(Gain) loss on asset disposals, net	7,163		4,032		15,054		12,376
(Gain) loss on sale of business and other exit costs, net	(17,886)		(49,108)		(23,121)		(49,108)

Adjusted EBITDA (Non-GAAP)	84,903		80,373		330,255		349,775
Deduct:
Equity in earnings of unconsolidated entities	—		(8)		4		(7)
Interest and dividend income	1,522		1,892		6,440		5,483
Other, net	(345)		1,295		4,918		3,959
Adjusted OIBDA (Non-GAAP)	$	83,726	$	77,194	$	318,893	$	340,340


	Three Months Ended December 31,				Year Ended December 31,
Array	2025		2024		2025		2024
(Dollars in thousands)
Net income (loss) from continuing operations (GAAP)	$	41,764	$	11,832	$	172,267	$	(80,464)
Add back or deduct:
Income tax expense (benefit)	23,332		(3,656)		(31,148)		(19,256)
Income (loss) before income taxes (GAAP)	65,096		8,176		141,119		(99,720)
Add back:
Interest expense	11,989		3,203		28,222		12,405
Depreciation, amortization and accretion expense	12,402		12,156		48,262		47,212
EBITDA (Non-GAAP)	89,487		23,535		217,603		(40,103)
Add back or deduct:
Expenses related to strategic alternatives review	95		1,607		2,444		21,521
Loss on impairment of licenses	—		—		47,679		136,234
(Gain) loss on asset disposals, net	1,125		219		1,746		809

(Gain) loss on license sales and exchanges, net	—		(900)		(6,123)		3,460
Short-term imputed spectrum lease income	(38,619)		—		(69,033)		—
Adjusted EBITDA (Non-GAAP)	52,088		24,461		194,316		121,921
Deduct:
Equity in earnings of unconsolidated entities	26,301		37,919		173,754		161,364
Interest and dividend income	3,649		2,579		18,917		11,656
Other, net	(81)		—		169		—
Adjusted OIBDA (Non-GAAP)	$	22,219	$	(16,037)	$	1,476	$	(51,099)

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. Array modified its AFCF metric for the three months ended December 31, 2025 to adjust for cash taxes paid in the quarter, which management believes best reflects cash generated from operations and investments. Under the modified presentation, the comparative calculation of AFCF for the three months ended September 30, 2025 would have been $63.4 million.


	Three Months Ended December 31, 2025
(Dollars in thousands)
Net income from continuing operations - Array (GAAP)	$	41,764
Add back or deduct:
Income tax expense	23,332
Cash paid for income taxes	(191)
Stock-based compensation expense	259
Short-term imputed spectrum lease income	(38,619)
Amortization of deferred debt charges	946
Equity in earnings of unconsolidated entities	(26,301)
Distributions from unconsolidated entities	65,867

(Gain) loss on asset disposals, net	1,125

Depreciation, amortization and accretion	12,402
Expenses related to strategic alternatives review	95
Straight line and other non-cash revenue adjustments	(5,190)
Straight line expense adjustment	1,398
Maintenance and other capital expenditures	(2,025)
Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP)	$	74,862