Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Q1 2026 Earnings Presentation
29 slides from Telephone And Data Systems's earnings presentation, May 8, 2026
Slide 1: First Quarter 2026 Results
First Quarter 2026 Results May 8, 2026
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: 2026 Enterprise - Priorities
2026 Enterprise - Priorities Strengthen TDS' corporate and capital structure 3 Grow TDS Telecom's Opportunistically fiber business monetize remaining spectrum Support Array's Continue to success as a tower strengthen TDS' company culture 3 Telephone and Data Systems. All Rights Reserved.
Slide 4: Capital Update
Capital Update Fiber Continued progress to deliver 2.1 million marketable fiber service addresses; Deployment delivering 40,000 in the quarter 4 (1) Leverage measured as gross bank leverage (Total Debt / Adjusted EBITDA) Disciplined, Announced agreement to acquire 11,000 fiber addresses in New Hamps
Slide 5: Telephone and Data Systems. All Rights Reserved.
5 Telephone and Data Systems. All Rights Reserved.
Slide 6: Q1 2026 Highlights
Q1 2026 Highlights Delivered 40,000 new marketable fiber addresses in Q1 2026; up ~180% from Q1 2025 Added 10,900 residential fiber connections in Q1 2026; up over 30% 6 from Q1 2025 Continued operational transformation efforts to drive efficiencies and improvements Announced Granite State Communica
Slide 7: Update on Long-Term Goals
Update on Long-Term Goals We continue to make progress toward our long-term goals Goal: Goal: Goal: 2.1 million 80% 95% 7 marketable service addresses service addresses with fiber service served by fiber multi-gig speeds addresses(1) Where we are: Where we are: Where we are: 1.10 million 58% 79% (1)
Slide 8: Fiber drives footprint growth
Fiber drives footprint growth New Marketable Fiber Addresses Total Marketable Fiber Service Addresses ~180% 81% 70,000 1,200,000 60,000 1,000,000 8 50,000 800,000 40,000 600,000 30,000 400,000 20,000 200,000 10,000 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q1'23 Q1'24 Q1'25 Q1'26 8 Telephone and Data Systems. A
Slide 9: Fiber drives residential connection growth
Fiber drives residential connection growth Residential Fiber Net Additions Residential Fiber Connections 32% 1.9x 16,000 350,000 14,000 300,000 9 12,000 250,000 10,000 200,000 8,000 150,000 6,000 100,000 4,000 2,000 50,000 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q1'23 Q1'24 Q1'25 Q1'26 9 Telephone and Data Sy
Slide 10: Quarterly revenue results
Quarterly revenue results Residential Revenue Residential Revenue per Connection by Technology ($M) $200 $67.50 $184 $179 $175 Note: $66.41 Divested markets 10 $65.67 1% $150 accounted for a $79 $3M decrease in $90 $65.00 $125 residential revenue year-over-year $100 $75 $64 $62.50 Fiber(1) $58 $50 C
Slide 11: TDS Telecom financial performance
TDS Telecom financial performance % ($M) Q1’26 Q1’25 Change Total operating revenues (1) $ 250 $ 257 (3)% 11 (1) Expenses related to the strategic alternatives review were $3.5 M in Q3'25 and $0 in Q3'24. (2) See appendix for explanation. Cash expenses $ 178 $ 184 (3)% Adjusted EBITDA (2) (Non-GAAP)
Slide 12: 2026 TDS Telecom guidance
2026 TDS Telecom guidance(1) ($M) 2026 As of May 8, 2026 Estimates Total operating revenues $1,015-$1,055 12 Adjusted EBITDA (2) (Non-GAAP) $310-$350 Adjusted OIBDA (2) (Non-GAAP) $300-$340 Capital expenditures $550-$600 (1) There can be no assurance that final results will not differ materially fro
Slide 13: Telephone and Data Systems. All Rights Reserved.
13 Telephone and Data Systems. All Rights Reserved.
Slide 14: Array Value Pillars
Array Value Pillars Growing Tower Non-controlling Spectrum Business Investment Interests 14 Continue to Non-controlling 100% U.S. opportunistically investment interests monetize generate meaningful 4,452 Owned towers income and Principally C-Band distributions 14 Telephone and Data Systems. All Righ
Slide 15: Q1 2026 Highlights
Q1 2026 Highlights Cash site rental revenue increased 64% over prior year (excludes T-Mobile Interim revenues and DISH revenues) 15 Sequential growth in tower tenancy ratio, excluding DISH Continue to monetize spectrum • Closed transaction with AT&T in January 2026 - $1.018 billion; issued $10.25 sp
Slide 16: Towers – Q1 2026 operating highlights
Towers – Q1 2026 operating highlights Q1 2026 Tower Rental Revenue Distribution Tower Metrics(3) 4% 0.96 16% (1) For the month of September 2025 which is a full period after implementation of the T-Mobile MLA 0.95 16 (2) Includes ~600 existing pre-MLA sites and the 2,015 MLA Committed Sites (3) Excl
Slide 17: Site rental revenues
Site rental revenues Total Cash Site Rental Revenues ($ thousands) YOY Change (Dollars in thousands) Q1'26 Q1'25 $48,151 (excluding DISH) Cash site rental revenue $8,133 + 98% total Existing leases (1,2) $24,730 $25,859 New leases since March 31, 2025 1,135 + 64% 17 (1) Existing leases includes the
Slide 18: Tower tenancy post T-Mobile integration
Tower tenancy post T-Mobile integration T-Mobile has until January 2028 to finalize Committed Site selection, after which Array estimates owning between 800 - 1,800 tenantless (naked) towers Tenantless (naked) towers 18 Assess alternatives, Ongoing lease up efforts Ground rent rationalization includ
Slide 19: Opportunistically monetizing spectrum
Opportunistically monetizing spectrum Reached agreements to monetize over 70% of Array's total spectrum holdings, measured on a MHz-Pops basis, including the T-Mobile transaction Band MHz-Pops Band MHz-Pops 3.45 GHz 700 MHz B/C 1,250 331 Band MHz-Pops August 2025 700 MHZ (A Block) 133 FUTURE Cellula
Slide 20: Non-controlling investment interests provide significant cash flow
Non-controlling investment interests provide significant cash flow Three months ended (Dollars in millions) 2023 2024 2025 (1)(2)(3) March 31, 2026(4) Equity in earnings of 20 $158 $161 $174 $40 unconsolidated entities Distributions from $150 $169 $216 $18 unconsolidated entities (1) Array has inves
Slide 21: Capital Expenditures - Towers
Capital Expenditures - Towers (Dollars in thousands) Quarter ended March 16% 31, 2026 Tower builds and augmentation (1) $ 5,132 25% 59% 21 Purchase of land interests 2,125 Maintenance and other 1,388 Total $ 8,645 Tower builds and augmentations Purchase of land interests Maintenance and other (1) Fo
Slide 22: Array operating performance
Array operating performance ($ thousands) Q1'26 Q1'25 Change Site rental $ 51,024 $ 26,595 92 % Services 988 389 N/M Total operating revenues 52,012 26,984 93 % Cost of operations 21,609 16,290 33 % Selling, general and administrative 12,745 29,202 (56)% 22 Expenses related to strategic alternatives
Slide 23: 2026 Array guidance
2026 Array guidance(1) ($M) 2026 As of May 8, 2026 Estimates Total operating revenues $200-$215 23 Adjusted EBITDA (2) (Non-GAAP) $200-$215 Adjusted OIBDA (2) (Non-GAAP) $50-$65 Capital expenditures $25-$35 (1) There can be no assurance that final results will not differ materially from such estimat
Slide 24: Appendix
Appendix
Slide 25: Adjusted OIBDA and Adjusted EBITDA Reconciliation
Adjusted OIBDA and Adjusted EBITDA Reconciliation Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 ($ in thousands) TDS Telecom Array TDS* TDS Telecom Array TDS* Net income (loss) from continuing operations (GAAP) $ 1,047 $ 180,024 $ 179,427 $ 3,527 $ 5,483 $ (4,207) Add back: Inc
Slide 26: Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2026 Estimated Results and 2025 Actual Results
Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2026 Estimated Results and 2025 Actual Results In providing 2026 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: Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2026 Estimated Results and 2025 Actual Results
Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2026 Estimated Results and 2025 Actual Results In providing 2026 estimated results, Array has not completed the below reconciliation to net income because it does not provide guidance for income taxes. Array believes that the impact of income taxes
Slide 28: Adjusted Free Cash Flow
Adjusted Free Cash Flow (Dollars in thousands) Q1'26 Net income from continuing operations - Array (GAAP) $ 180,024 Add back or deduct: Income tax expense 52,398 Cash paid for income taxes (220) 28 (1) See final slide for explanation. Stock-based compensation expense 227 Short-term imputed spectrum
Slide 29: 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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