Form 8-K

8-K — TELEPHONE & DATA SYSTEMS INC /DE/

Accession: 0001051512-26-000043

Filed: 2026-05-08

Period: 2026-05-08

CIK: 0001051512

SIC: 4813 (TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE))

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — tds-20260508.htm (Primary)

EX-99.1 (tdsq120268kex991.htm)

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XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: tds-20260508.htm · Sequence: 1

tds-20260508

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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): May 8, 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 May 8, 2026, Telephone and Data Systems, Inc. (TDS) issued a news release announcing its results of operations for the period ended March 31, 2026. 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 May 8, 2026

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: May 8, 2026 By: /s/ Vicki L. Villacrez

Vicki L. Villacrez

Executive Vice President and Chief Financial Officer

EX-99.1

Filename: tdsq120268kex991.htm · Sequence: 2

Document

Exhibit 99.1

NEWS RELEASE

As previously announced, TDS will hold a teleconference on May 8, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com.

TDS reports first quarter 2026 results

TDS Telecom and Array both reaffirm guidance for 2026

CHICAGO (May 8, 2026) — Telephone and Data Systems, Inc. (NYSE: TDS) reported first quarter 2026 operating results.

“TDS Telecom and Array entered 2026 with momentum,” said Walter Carlson, TDS President and CEO. “Both business units are making meaningful progress toward their strategic objectives. During the quarter, TDS Telecom expanded its marketable fiber service footprint to 1.1 million addresses, while Array continued to optimize its operations and secure healthy application volume.”

“As part of our fiber growth strategy, we recently announced the acquisition of Granite State Communications in New Hampshire," continued Carlson. "Located adjacent to our existing operations, Granite State further expands our fiber footprint, adding approximately 11,000 additional fiber service addresses.”

Highlights*

TDS Telecom

•Executing on fiber broadband strategy

◦Delivered 40,000 marketable fiber services addresses in Q1 2026

◦Grew fiber connections —10,900 residential fiber net additions

◦TDS Telecom revenues down 3%, reduced by $6 million due to divestitures of non-strategic assets

•Expanding fiber footprint

◦Entered into agreement to acquire Granite State Communications in New Hampshire — 11,000 fiber service addresses; transaction expected to close in the third quarter of 2026

Array

•Optimizing tower operations

◦Site rental revenues grew 92% year over year

◦Excluding the impact of DISH, continuing to grow tower tenancy and secure healthy application volume

•Continuing to close pending sales of wireless spectrum

◦Closed on sale of certain 700 MHz wireless spectrum licenses for total proceeds of $74.8 million on May 5, 2026

*Comparisons are 1Q’25 to 1Q’26 unless otherwise noted.

TDS reported total operating revenues from continuing operations of $309.5 million for the first quarter of 2026, versus $290.4 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 $129.3 million and $1.11, respectively, for the first quarter of 2026 compared to $(23.2) million and $(0.20), respectively, in the same period one year ago.

On January 13, 2026, Array closed on the sale of certain 3.45 GHz and 700 MHz wireless spectrum licenses for $1,018.0 million and TDS recorded a book gain of $150.9 million ($114.7 million net of tax expense) during the first quarter of 2026.

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 May 8, 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 Previous Current

(Dollars in millions)

Total operating revenues $1,015-$1,055 Unchanged

Adjusted OIBDA1 (Non-GAAP)

$300-$340 Unchanged

Adjusted EBITDA1 (Non-GAAP)

$310-$350 Unchanged

Capital expenditures $550-$600 Unchanged

Array Previous Current

(Dollars in millions)

Total operating revenues $200-$215 Unchanged

Adjusted OIBDA1 (Non-GAAP)

$50-$65 Unchanged

Adjusted EBITDA1 (Non-GAAP)

$200-$215 Unchanged

Capital expenditures $25-$35 Unchanged

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.

2026 Estimated Results

TDS

Telecom Array

(Dollars in millions)

Net income from continuing operations (GAAP) N/A N/A

Add back:

Income tax expense N/A N/A

Income (loss) before income taxes (GAAP) ($15)-$25 $770-$785

Add back:

Interest expense — 45

Depreciation, amortization and accretion expense 325 50

EBITDA (Non-GAAP)1

$310-$350 $865-$880

Add back or deduct:

(Gain) loss on license sales and exchanges, net — (590)

Short-term imputed spectrum lease income — (75)

Adjusted EBITDA (Non-GAAP)1

$310-$350 $200-$215

Deduct:

Equity in earnings of unconsolidated entities — 140

Interest and dividend income 5 10

Other, net 5 —

Adjusted OIBDA (Non-GAAP)1

$300-$340 $50-$65

Actual Results

Three Months Ended

March 31, 2026 Year Ended

December 31, 2025

TDS

Telecom Array TDS

Telecom Array

(Dollars in millions)

Net income from continuing operations (GAAP) $ 1 $ 180 $ 28 $ 172

Add back:

Income tax expense (benefit) (2) 52 10 (31)

Income (loss) before income taxes (GAAP) $ (1) $ 232 $ 38 $ 141

Add back:

Interest expense — 7 (7) 28

Depreciation, amortization and accretion expense 73 13 300 48

EBITDA (Non-GAAP)1

$ 71 $ 252 $ 331 $ 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 1 1 15 2

(Gain) loss on sale of business and other exit costs, net 2 — (23) —

(Gain) loss on license sales and exchanges, net — (157) — (6)

Short-term imputed spectrum lease income — (34) — (69)

Adjusted EBITDA (Non-GAAP)1

$ 74 $ 62 $ 330 $ 194

Deduct:

Equity in earnings of unconsolidated entities — 40 — 174

Interest and dividend income 1 4 6 19

Other, net 1 — 5 —

Adjusted OIBDA (Non-GAAP)1

$ 71 $ 18 $ 319 $ 1

Numbers may not foot due to rounding.

1EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income from continuing operations 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.

Conference Call Information

TDS will hold a conference call on May 8, 2026 at 9:00 a.m. CT.

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

https://events.q4inc.com/attendee/890846584

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

Karen Samples, Corporate Finance and Investor Relations Senior Manager

karen.samples@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: 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 TDS or its shareholders and whether the process could result in adverse impacts on TDS' businesses; 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 sale 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 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

TDS Telecom

Summary Operating Data (Unaudited)

As of or for the Quarter Ended 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025

Residential connections

Broadband

Incumbent Fiber 130,200 127,300 123,500 121,200 119,700

Incumbent Copper 84,200 91,200 102,000 106,500 112,600

Expansion Fiber 168,500 160,600 150,700 141,800 133,200

Cable 179,100 182,800 186,100 188,200 190,200

Total Broadband 561,900 561,900 562,400 557,700 555,800

Video 107,200 111,500 114,300 116,500 118,700

Voice 216,900 228,900 242,200 248,700 256,900

Wireless 5,300 3,300 2,200 1,600 900

Total Residential connections 891,400 905,600 921,100 924,500 932,300

Commercial connections 166,500 173,900 180,300 184,300 187,600

Total connections1

1,058,000 1,079,500 1,101,300 1,108,800 1,119,900

Total residential fiber net adds 10,900 15,100 11,200 10,300 8,300

Total residential broadband net adds 100 4,500 4,600 3,900 2,800

Residential fiber churn2

1.3 % 1.2 % 1.5 % 1.1 % 0.9 %

Total residential broadband churn 1.8 % 1.6 % 1.7 % 1.5 % 1.3 %

Residential revenue per connection3

$ 66.41 $ 65.95 $ 65.66 $ 65.85 $ 65.67

Capital expenditures (thousands) $ 125,963 $ 154,904 $ 102,429 $ 90,187 $ 58,870

Numbers may not foot due to rounding.

1Divestitures in 2025 resulted in a decrease of 19,000 connections, including 7,500 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.

Array Digital Infrastructure, Inc.

Summary Operating Data (Unaudited)

As of or for the Quarter Ended 3/31/2026 12/31/2025 9/30/2025

Capital expenditures from continuing operations (thousands) $ 8,645 $ 12,933 $ 7,927

Owned towers 4,452 4,450 4,449

Number of colocations1

4,290 4,572 4,517

Tower tenancy rate2

0.96 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. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless due to the low probability of collection on outstanding amounts.

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. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless due to the low probability of collection on outstanding amounts. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94, respectively in prior periods.

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

Three Months Ended

March 31,

2026 2025 2026

vs. 2025

(Dollars and shares in thousands, except per share amounts)

Operating revenues

TDS Telecom $ 249,572 $ 257,360 (3) %

Array 52,012 26,984 93 %

All Other1

7,866 6,089 29 %

Total operating revenues 309,450 290,433 7 %

Operating expenses

TDS Telecom 253,304 257,501 (2) %

Array (108,773) 56,611 N/M

All other1

21,101 10,255 N/M

Total operating expenses 165,632 324,367 (49) %

Operating income (loss)

TDS Telecom (3,732) (141) N/M

Array 160,785 (29,627) N/M

All Other1

(13,235) (4,166) N/M

Total operating income (loss) 143,818 (33,934) N/M

Other income (expense)

Equity in earnings of unconsolidated entities 41,902 36,518 15 %

Interest and dividend income 13,786 6,270 N/M

Interest expense (5,321) (23,909) 78 %

Short-term imputed spectrum lease income 34,200 — N/M

Other, net 5,450 2,725 N/M

Total other income 90,017 21,604 N/M

Income (loss) before income taxes 233,835 (12,330) N/M

Income tax expense (benefit) 54,408 (8,123) N/M

Net income (loss) from continuing operations 179,427 (4,207) N/M

Less: Net income from continuing operations attributable to noncontrolling interests, net of tax 32,813 1,724 N/M

Net income (loss) from continuing operations attributable to TDS shareholders 146,614 (5,931) N/M

Net income (loss) from discontinued operations (2,389) 16,171 N/M

Less: Net income (loss) from discontinued operations attributable to noncontrolling interests, net of tax (369) 2,770 N/M

Net income (loss) from discontinued operations attributable to TDS shareholders (2,020) 13,401 N/M

Net income 177,038 11,964 N/M

Less: Net income attributable to noncontrolling interests, net of tax 32,444 4,494 N/M

Net income attributable to TDS shareholders 144,594 7,470 N/M

TDS Preferred Share dividends 17,306 17,306 —

Net income (loss) attributable to TDS common shareholders $ 127,288 $ (9,836) N/M

Telephone and Data Systems, Inc.

Consolidated Statement of Operations Highlights

(Unaudited)

Three Months Ended

March 31,

2026 2025 2026

vs. 2025

(Dollars and shares in thousands, except per share amounts)

Basic weighted average shares outstanding 113,882 114,582 (1) %

Basic earnings (loss) per share from continuing operations attributable to TDS common shareholders $ 1.14 $ (0.20) N/M

Basic earnings (loss) per share from discontinued operations attributable to TDS common shareholders $ (0.02) $ 0.11 N/M

Basic earnings (loss) per share attributable to TDS common shareholders $ 1.12 $ (0.09) N/M

Diluted weighted average shares outstanding 116,651 114,582 2 %

Diluted earnings (loss) per share from continuing operations attributable to TDS common shareholders $ 1.11 $ (0.20) N/M

Diluted earnings (loss) per share from discontinued operations attributable to TDS common shareholders $ (0.02) $ 0.11 N/M

Diluted earnings (loss) per share attributable to TDS common shareholders $ 1.09 $ (0.09) N/M

N/M - Percentage change not meaningful.

1Consists of corporate and other operations and intercompany eliminations.

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Three Months Ended

March 31,

2026 2025

(Dollars in thousands)

Cash flows from operating activities

Net income $ 177,038 $ 11,964

Net income (loss) from discontinued operations (2,389) 16,171

Net income (loss) from continuing operations 179,427 (4,207)

Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities

Depreciation, amortization and accretion 85,943 84,329

Bad debts expense 3,383 1,380

Stock-based compensation expense 4,159 12,749

Deferred income taxes, net (38,825) (6,519)

Equity in earnings of unconsolidated entities (41,902) (36,518)

Distributions from unconsolidated entities 18,373 11,254

(Gain) loss on asset disposals, net 1,810 1,888

(Gain) loss on sale of business and other exit costs, net 1,562 (998)

(Gain) loss on license sales and exchanges, net (150,878) (1,100)

Other operating activities 42 1,141

Changes in assets and liabilities from operations

Accounts receivable 2,787 (12,530)

Inventory 316 (229)

Accounts payable (7,881) 1,844

Customer deposits and deferred revenues (33,593) 108

Accrued taxes 91,865 (264)

Accrued interest 580 343

Other assets and liabilities (49,074) (95,131)

Net cash provided by (used in) operating activities - continuing operations 68,094 (42,460)

Net cash provided by (used in) operating activities - discontinued operations (633) 228,069

Net cash provided by operating activities 67,461 185,609

Cash flows from investing activities

Cash paid for additions to property, plant and equipment (149,041) (64,391)

Cash paid for licenses — (2,072)

Cash received from divestitures 1,016,478 8,042

Other investing activities 396 80

Net cash provided by (used in) investing activities - continuing operations 867,833 (58,341)

Net cash used in investing activities - discontinued operations — (64,337)

Net cash provided by (used in) investing activities 867,833 (122,678)

Cash flows from financing activities

Issuance of long-term debt 1,300 —

Repayment of long-term debt (150,314) (7,736)

Tax withholdings, net of cash receipts, for TDS stock-based compensation awards (1,710) (5,639)

Tax withholdings, net of cash receipts, for Array stock-based compensation awards (1,373) (6,579)

Repurchase of Array Common Shares — (21,360)

Dividends paid to TDS shareholders (21,860) (21,896)

Array dividends paid to noncontrolling public shareholders (159,890) —

Distributions to noncontrolling interests (638) (1,639)

Cash paid for software license agreements (166) (839)

Other financing activities 9 (452)

Net cash used in financing activities - continuing operations (334,642) (66,140)

Net cash used in financing activities - discontinued operations — (8,826)

Net cash used in financing activities $ (334,642) $ (74,966)

Telephone and Data Systems, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

Three Months Ended

March 31,

2026 2025

(Dollars in thousands)

Net increase (decrease) in cash, cash equivalents and restricted cash $ 600,652 $ (12,035)

Cash, cash equivalents and restricted cash

Beginning of period 770,150 383,222

End of period $ 1,370,802 $ 371,187

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

ASSETS

March 31, 2026 December 31, 2025

(Dollars in thousands)

Current assets

Cash and cash equivalents $ 1,366,604 $ 765,952

Accounts receivable, net 102,884 109,981

Inventory, net 3,746 4,062

Prepaid expenses 33,858 28,206

Income taxes receivable — 1,292

Other current assets 12,987 13,976

Total current assets 1,520,079 923,469

Non-current assets held for sale 737,437 1,598,131

Licenses 1,642,824 1,642,972

Other intangible assets, net 124,391 131,673

Investments in unconsolidated entities 486,132 461,922

Property, plant and equipment, net

3,025,322 2,965,455

Operating lease right-of-use assets 513,237 515,081

Other assets and deferred charges 161,905 159,600

Total assets $ 8,211,327 $ 8,398,303

Telephone and Data Systems, Inc.

Consolidated Balance Sheet Highlights

(Unaudited)

LIABILITIES AND EQUITY

March 31, 2026 December 31, 2025

(Dollars in thousands, except per share amounts)

Current liabilities

Current portion of long-term debt $ 7,515 $ 5,274

Accounts payable 97,068 115,822

Customer deposits and deferred revenues 84,165 125,140

Accrued interest 3,415 2,836

Accrued taxes 138,488 46,721

Accrued compensation 27,630 56,774

Short-term operating lease liabilities 26,297 26,180

Current liabilities of discontinued operations 20,242 20,242

Other current liabilities 38,855 41,322

Total current liabilities 443,675 440,311

Deferred liabilities and credits

Deferred income tax liability, net 699,150 743,633

Long-term operating lease liabilities 548,420 549,617

Other deferred liabilities and credits 584,484 574,025

Long-term debt, net 672,700 823,364

Total equity 5,262,898 5,267,353

Total liabilities and equity $ 8,211,327 $ 8,398,303

Balance Sheet Highlights

(Unaudited)

March 31, 2026

TDS TDS Corporate Intercompany TDS

Telecom Array & Other Eliminations Consolidated

(Dollars in thousands)

Cash and cash equivalents $ 55,212 $ 253,638 $ 1,113,325 $ (55,571) $ 1,366,604

Licenses and other intangible assets $ 124,543 $ 1,642,039 $ 633 $ — $ 1,767,215

Investment in unconsolidated entities 3,947 435,061 57,500 (10,376) 486,132

$ 128,490 $ 2,077,100 $ 58,133 $ (10,376) $ 2,253,347

Property, plant and equipment, net $ 2,623,432 $ 386,727 $ 15,163 $ — $ 3,025,322

Long-term debt, net:

Current portion $ 162 $ 6,094 $ 1,259 $ — $ 7,515

Non-current portion 2,865 668,499 1,336 — 672,700

$ 3,027 $ 674,593 $ 2,595 $ — $ 680,215

TDS Telecom Highlights

(Unaudited)

Three Months Ended

March 31,

2026 2025 2026

vs. 2025

(Dollars in thousands)

Operating revenues

Residential

Incumbent $ 77,292 $ 85,594 (10) %

Expansion 43,562 34,406 27 %

Cable 57,742 63,847 (10) %

Total residential 178,596 183,847 (3) %

Commercial 32,795 34,634 (5) %

Wholesale 38,117 38,677 (1) %

Total service revenues 249,508 257,158 (3) %

Equipment revenues 64 202 (68) %

Total operating revenues 249,572 257,360 (3) %

Cost of operations (excluding Depreciation, amortization and accretion reported below) 97,182 100,964 (4) %

Cost of equipment and products 111 263 (58) %

Selling, general and administrative 81,061 83,148 (3) %

Depreciation, amortization and accretion 72,555 71,440 2 %

(Gain) loss on asset disposals, net 833 1,662 (50) %

(Gain) loss on sale of business and other exit costs, net 1,562 24 N/M

Total operating expenses 253,304 257,501 (2) %

Operating income (loss) $ (3,732) $ (141) N/M

N/M - Percentage change not meaningful

Array Digital Infrastructure, Inc. Highlights

(Unaudited)

Three Months Ended

March 31,

2026 2025 2026

vs. 2025

(Dollars in thousands)

Operating revenues

Site rental $ 51,024 $ 26,595 92 %

Services 988 389 N/M

Total operating revenues 52,012 26,984 93 %

Operating expenses

Cost of operations (excluding Depreciation and accretion reported below) 21,609 16,290 33 %

Selling, general and administrative 12,745 29,202 (56) %

Depreciation and accretion 12,604 11,993 5 %

(Gain) loss on asset disposals, net 904 226 N/M

(Gain) loss on license sales and exchanges, net (156,635) (1,100) N/M

Total operating expenses (108,773) 56,611 N/M

Operating income (loss) $ 160,785 $ (29,627) N/M

N/M - Percentage change not meaningful

Telephone and Data Systems, Inc.

Financial Measures

(Unaudited)

Free Cash Flow

Three Months Ended

March 31,

TDS CONSOLIDATED 2026 2025

(Dollars in thousands)

Cash flows from operating activities - continuing operations (GAAP) $ 68,094 $ (42,460)

Cash paid for additions to property, plant and equipment (149,041) (64,391)

Cash paid for software license agreements (166) (839)

Free cash flow - continuing operations (Non-GAAP)1

$ (81,113) $ (107,690)

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)

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.

Three Months Ended

March 31,

TDS Telecom 2026 2025

(Dollars in thousands)

Net income (GAAP) $ 1,047 $ 3,527

Add back or deduct:

Income tax expense (benefit) (2,089) 1,135

Income (loss) before income taxes (GAAP) (1,042) 4,662

Add back:

Interest expense (157) (1,465)

Depreciation, amortization and accretion expense 72,555 71,440

EBITDA (Non-GAAP) 71,356 74,637

Add back or deduct:

Expenses related to strategic alternatives review 87 —

(Gain) loss on asset disposals, net 833 1,662

(Gain) loss on sale of business and other exit costs, net 1,562 24

Adjusted EBITDA (Non-GAAP) 73,838 76,323

Deduct:

Interest and dividend income 1,145 1,401

Other, net 1,388 1,937

Adjusted OIBDA (Non-GAAP) $ 71,305 $ 72,985

Three Months Ended

March 31,

Array 2026 2025

(Dollars in thousands)

Net income from continuing operations (GAAP) $ 180,024 $ 5,483

Add back or deduct:

Income tax expense (benefit) 52,398 (192)

Income before income taxes (GAAP) 232,422 5,291

Add back:

Interest expense 7,180 3,667

Depreciation and accretion expense 12,604 11,993

EBITDA (Non-GAAP) 252,206 20,951

Add back or deduct:

Expenses related to strategic alternatives review 187 1,145

(Gain) loss on asset disposals, net 904 226

(Gain) loss on license sales and exchanges, net (156,635) (1,100)

Short-term imputed spectrum lease income (34,200) —

Adjusted EBITDA (Non-GAAP) 62,462 21,222

Deduct:

Equity in earnings of unconsolidated entities 40,408 35,927

Interest and dividend income 4,223 2,658

Other, net (14) —

Adjusted OIBDA (Non-GAAP) $ 17,845 $ (17,363)

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.

Three Months Ended March 31, 2026

(Dollars in thousands)

Net income from continuing operations - Array (GAAP) $ 180,024

Add back or deduct:

Income tax expense 52,398

Cash paid for income taxes (220)

Stock-based compensation expense 227

Short-term imputed spectrum lease income (34,200)

Amortization of deferred debt charges 319

Equity in earnings of unconsolidated entities (40,408)

Distributions from unconsolidated entities 18,373

(Gain) loss on license sales and exchanges, net (156,635)

(Gain) loss on asset disposals, net 904

Depreciation and accretion 12,604

Expenses related to strategic alternatives review 187

Straight line and other non-cash revenue adjustments (2,874)

Straight line expense adjustment 1,342

Maintenance and other capital expenditures (1,388)

Adjusted Free Cash Flow from continuing operations - Array (Non-GAAP) $ 30,653

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