Array Digital Infrastructure, Inc. · NYSE:AD
Array Digital Infrastructure — United States Cellular — Q2 2025 Earnings Presentation
27 slides from Array Digital Infrastructure's earnings presentation, Aug 11, 2025
Slide 1: Second Quarter 2025 Results
Second Quarter 2025 Results August 11, 2025
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 All information set forth in this presentation about Telephone and Data Systems, Inc., including its subsidiaries Array and TDS Telecom, except historical and factual information, represents forward-looking statements.
Slide 3: TDS 2025 Priorities
TDS 2025 Priorities Successfully closed the T-Mobile transaction Position tower company for success Invest in fiber expansion at TDS Telecom Optimize post-transaction capital structure Ensure culture remains strong 3
Slide 4: Enterprise Update
Enterprise Update Strengthening balance sheet Significant Debt Reduction ($ in millions) • $1.7 billion of Array debt exchanged into $5,000 T-Mobile debt $4,000 • TDS to receive $1.6 billion from Array special dividend $3,000 $3 Billion Positioning TDS for financial flexibility $2,000 • Maintain pre
Slide 5: Array Digital Infrastructure
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Slide 6: Net Proceeds from T-Mobile Transaction
Net Proceeds from T-Mobile Transaction The following table provides a reconciliation between the gross purchase price and net cash available for distribution following the close of the T-Mobile transaction. Certain amounts in the table are estimates: Dollars in millions On August 1, 2025 the Array b
Slide 7: Spectrum sales to AT&T and Verizon
Spectrum sales to AT&T and Verizon (1) AT&T Verizon(2) Gross purchase price $1.018B $1.0B ~$125 M represents the $200 M - $250 M estimated tax liability at represents the Cash taxes the Array level. estimated tax liability at Array remits its taxes to TDS and is included in the TDS consolidated the
Slide 8: Opportunistically monetizing spectrum
Opportunistically monetizing spectrum Reached agreements to monetize ~70% of Array's total spectrum holdings, measured on a MHz-Pops basis, including the T-Mobile transaction Closed Pending Further Opportunity 1,969M MHz-Pops (2) 1,861M MHz-Pops (2) 1,581M MHz-Pops Band MHz-Pops Low & Mid-Band MHz-P
Slide 9: Going Forward
Going Forward Growing Tower Non-controlling Retained Spectrum Business Investment Interests Retained non-controlling 100% U.S. investment interests Will look to generate meaningful opportunistically monetize 4,400 Owned towers income and distributions $169 million cash Principally C-Band distributio
Slide 10: Strategic Priorities
Strategic Priorities • Close pending spectrum transactions • Opportunistically monetize remaining spectrum • Ground lease optimization • Colocation growth 10
Slide 11: T-Mobile MLA
T-Mobile MLA MLA commenced August 1, 2025 • 15 year initial term on a minimum of 2,015 sites • Extended license term on 600 existing sites to a new 15-year term • Provides for interim license for up to 30 months on remaining 1,800 towers to ensure a smooth network transition 11
Slide 12: Towers - Q2 2025 operating metrics
Towers - Q2 2025 operating metrics Tower Locations 2Q 2025 Third-Party Tower Revenue Tower Metrics Distribution 14% June 30, 2025 34% Owned Towers 4,418 25% Tower Tenancy Rate 1.57 Number of 2,527 27% Colocations Proforma tenancy rate after sale of AT&T Verizon T-Mobile Other wireless operations and
Slide 13: Towers segment - operating performance
Towers segment - operating performance ($M) Q2'25 Q2'24 % Change Third-party revenues $ 28 $ 25 12 % Intra-company revenues 34 33 3% Total tower revenues 62 58 7% System operations expense 20 19 6% SG&A expenses (1) 9 9 (1)% Total cash expenses (2) 29 28 4% Adjusted EBITDA (2) (Non-GAAP) 34 31 9% (1
Slide 14: Slide 14
Slide 15: Quarterly Highlights
Quarterly Highlights Ken Dixon appointed as new CEO of TDS Telecom Deployed 27,000 new marketable fiber addresses, on track for 150,000 goal in 2025 Launched E-ACAM construction in multiple states Grew fiber connections; 10,300 net broadband adds from fiber markets 15
Slide 16: Progress on long-term fiber program
Progress on long-term fiber program Deployed 27,000 marketable fiber service addresses in Q2'25 Goal: Goal: Goal: 1.8 million 80% 95% marketable of service addresses to service addresses with fiber service addresses** be served by fiber speeds of 1 Gig+ Where are we: Where are we: Where are we: 968,
Slide 17: Fiber drives footprint growth
Fiber drives footprint growth Total Marketable Service Addresses New Marketable Fiber Addresses (2022 - 2025) 50,000 2,000,000 owth 1,800,000 r in t gr 40,000 tp foo 27% 1,600,000 30,000 1,400,000 20,000 1,200,000 10,000 1,000,000 Q2 2022 Q2 2023 Q2 2024 Q2 2025 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 17
Slide 18: Fiber drives residential connection growth
Fiber drives residential connection growth Residential Fiber Connections Residential Fiber Net Additions (2022 - 2025) 15,000 300,000 rowth 12,500 250,000 i ong c t ne on xc 10,000 1.9 200,000 7,500 150,000 5,000 100,000 2,500 50,000 Q2 2022 Q2 2023 Q2 2024 Q2 2025 — Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 18
Slide 19: Growing fiber footprint driving faster speeds
Growing fiber footprint driving faster speeds Total Service Address Mix Residential Broadband Connections by Speed 1.7M 1.8M 100% 100% 19% 26% Service Addresses 75% 10% 75% 49% 53% 13% 75% 1 Gig+ 5% 50% 50% 50% Y/Y growth 44% 24% 22% 25% 25% 14% 13% 21% 17% 13% 12% 0% 0% Q2'24 Q2'25 Q2'24 Q2'25 Copp
Slide 20: Quarterly revenue results
Quarterly revenue results Residential Revenue per Operating Revenues ($M) Connection $300 $267 $265 $70.00 $28 $37 $65.85 $65.26 $200 $65.00 $90 $85 Note: Divested markets 1% accounted for a $4M decrease year-over-year. Y/Y growth $69 $62 $60.00 $100 $37 $35 $55.00 $44 $47 $— Q2'24 Q2'25 Residential
Slide 21: TDS Telecom operating performance
TDS Telecom operating performance ($M) Q2’25 Q2’24 % Change Total operating revenues $ 265 $ 267 (1)% Cash expenses (1) 180 178 1% Adjusted EBITDA (1) (Non-GAAP) $ 89 $ 91 (3)% Capital expenditures $ 90 $ 78 16 % 21 (1) See appendix for explanation.
Slide 22: 2025 TDS Telecom guidance
2025 TDS Telecom guidance* ($M) 2025 2025 As of August 11, 2025 2024 Actual Previous Estimates Current Estimates Total operating revenues $1,061 $1,030-$1,070 $1,030-$1,050 Adjusted EBITDA (1) (Non-GAAP) $350 $320-$360 $320-$350 Adjusted OIBDA (1) (Non-GAAP) $340 $310-$350 $310-$340 Capital expendit
Slide 23: Appendix
Appendix
Slide 24: Adjusted OIBDA and Adjusted EBITDA Reconciliation
Adjusted OIBDA and Adjusted EBITDA Reconciliation Three Months Ended June 30, 2025 Three Months Ended June 30, 2024 ($M) Array TDS Telecom TDS* Array TDS Telecom TDS* Net income (GAAP) $32 $16 $18 $18 $18 $7 Add back: Income tax expense 4 2 3 14 3 6 Income before income taxes (GAAP) $36 $18 $21 $32
Slide 25: Adjusted OIBDA and Adjusted EBITDA Reconciliation
Adjusted OIBDA and Adjusted EBITDA Reconciliation Three Months Ended Three Months Ended June 30, 2025 June 30, 2024 Array Array ($M) Towers Towers EBITDA (Non-GAAP) (1) $33 $30 Add back or deduct: Expenses related to strategic alternatives review 1 1 Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) (1)
Slide 26: Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2025 Estimated Results and 2024 Actual Results
Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2025 Estimated Results and 2024 Actual Results In providing 2025 estimated results, TDS has not completed the below reconciliation to net income because it does not provide guidance for income taxes. TDS believes that the impact of income taxes can
Slide 27: Cash Expenses
Cash Expenses Total cash expenses represent total operating expenses as shown in the Consolidated Statement of Operations Highlights in the TDS and Array SEC Forms 8-K, less depreciation, amortization and accretion and gain/losses. EBITDA, Adjusted EBITDA and Adjusted OIBDA EBITDA, Adjusted EBITDA a
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