Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Q3 2025 Earnings Presentation
30 slides from Telephone And Data Systems's earnings presentation, Nov 7, 2025
Slide 1: Third Quarter 2025 Results
Third Quarter 2025 Results November 7, 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: Corporate Update - 2025 Priorities
Corporate Update - 2025 Priorities Successfully closed the T-Mobile transaction Position tower company for success Investing in fiber expansion at TDS Telecom Optimize post-transaction capital structure Ensure culture remains strong 3
Slide 4: Enterprise Update
Enterprise Update Financial Policy – Repaid substantial debt at TDS and Array – Established new leverage targets (1) of ~3.0x at Array and ~1.5x for TDS – Plan to retain $1.1B of preferred equity Future Capital Allocation Priorities – Invest in Fiber Expansion – Disciplined, Synergistic M&A – Shareh
Slide 5: Slide 5
Slide 6: Quarterly Highlights
Quarterly Highlights Deployed 42,000 new marketable fiber addresses Exceeded 1 million fiber addresses during the quarter Grew fiber connections; 11,200 net broadband adds from fiber markets E-ACAM construction underway in 16 states 6
Slide 7: E-ACAM program will be transformative
E-ACAM program will be transformative Extends current ~300,000 ACAM funding Majority of builds addresses to be through 2038 Expect penetration completed over the upgraded from totalling over $1.2 rates of 65% - 75% next 3 years copper to fiber billion in revenues (2024 - 2038) 7
Slide 8: Progress on long-term fiber program
Progress on long-term fiber program Deployed 42,000 marketable fiber service addresses in Q3'25 Goal: Goal: Goal: 1.8 million 80% 95% marketable of service addresses to service addresses with fiber service addresses** be served by fiber speeds of 1 Gig+ Where are we: Where are we: Where are we: 1 mi
Slide 9: Fiber drives footprint growth
Fiber drives footprint growth New Marketable Fiber Addresses Total Fiber Service Addresses (2022 - 2025) 50,000 30% 1,250,000 93% 40,000 1,000,000 750,000 30,000 500,000 20,000 250,000 10,000 — Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'22 Q3'23 Q3'24 Q3'25 9
Slide 10: Fiber drives residential connection growth
Fiber drives residential connection growth Residential Fiber Connections Residential Fiber Net Additions (2022 - 2025) 8% 1.9x 300,000 15,000 250,000 10,000 200,000 150,000 5,000 100,000 — 50,000 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'22 Q3'23 Q3'24 Q3'25 10
Slide 11: Quarterly revenue results
Quarterly revenue results Residential Revenue per Operating Revenues ($M) Connection $300 $67.50 Note: Divested markets $263 $255 accounted for a $6M $29 decrease year-over-year. $65.66 $40 $65.41 $65.00 $200 $90 $82 $67 $62.50 $100 $60 $36 $34 $40 $39 $60.00 $— Q3'24 Q3'25 Q3'24 Q3'25 11
Slide 12: TDS Telecom operating performance
TDS Telecom operating performance ($M) Q3’25 Q3’24 % Change Total operating revenues $ 255 $ 263 (3)% Cash expenses (1) 182 182 — Adjusted EBITDA (2) (Non-GAAP) $ 80 $ 83 (3)% Capital expenditures $ 102 $ 78 31 % 12 (1) Expenses related to the strategic alternatives review were $3.5 M in Q3'25 and $
Slide 13: 2025 TDS Telecom guidance
2025 TDS Telecom guidance* ($M) 2025 2025 As of November 7, 2025 2024 Actual Previous Estimates Current Estimates Total operating revenues $1,061 $1,030-$1,050 Unchanged Adjusted EBITDA (1) (Non-GAAP) $350 $320-$350 Unchanged Adjusted OIBDA (1) (Non-GAAP) $340 $310-$340 Unchanged Capital expenditure
Slide 14: Digital Infrastructure
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Slide 15: Quarterly Highlights
Quarterly Highlights • Closed T-Mobile transaction on August 1, 2025 • Returned value to shareholders • Paid a $23 per share special dividend on August 19, 2025 • Established and branded separate tower company, Array Digital Infrastructure • Commenced 15-year initial term under T-Mobile MLA on 2,015
Slide 16: Array Value Pillars
Array Value Pillars Non-controlling Spectrum Growing Tower Business Investment Interests Non-controlling investment Continue to interests generate meaningful opportunistically monetize 100% U.S. income and distributions 4,449 Owned towers $169 million cash distributions Principally C-Band in 2024 16
Slide 17: Strategic Imperatives
Strategic Imperatives • T-Mobile MLA integration • Grow colocation revenue • Ground lease optimization • Close pending spectrum transactions • Opportunistically monetize remaining spectrum 17
Slide 18: Opportunistically monetizing spectrum
Opportunistically monetizing spectrum Reached agreements to monetize over 70% of Array's total spectrum holdings, measured on a MHz-Pops basis, including the T-Mobile transaction Band MHz-Pops Band MHz-Pops AWS 13 August 2025 CBRS 75 Band MHz-Pops 600 MHz (1) 361 700 MHz (A Block) 319 C-Band 1,640 C
Slide 19: Tower Locations
Tower Locations Array
Slide 20: Towers – Q3 2025 operating highlights
Towers – Q3 2025 operating highlights T-Mobile MLA September 2025 Tower Rental Tower Metrics Revenue Distribution (1) Sept 30, 2024 • Commenced August 1, 2025 (proforma) eliminating Sept 30, UScellular • T-Mobile committed to colocate on 7% 2025 as a tenant 2,015 incremental towers for 15 15% Owned
Slide 21: Site rental revenues
Site rental revenues (Dollars in thousands) Q3'25 Q3'24 Total Cash Site Rental Revenues ($ thousands) Cash site rental revenue $41,966 Existing leases (1) $26,162 $ 25,051 New leases since October 1, 2024 938 $25,051 + 68% total T-Mobile MLA - Committed Sites 9,425 T-Mobile MLA - Interim Sites 5,440
Slide 22: Array operating performance
Array operating performance ($ thousands) Q3'25 Q3'24 % Change Site rental $ 45,838 $ 25,669 79 % Services 1,281 70 NM Total operating revenues 47,119 25,739 83 % Cost of operations (1) 20,976 18,263 15 % Selling, general and administrative (2) 20,525 21,176 (3)% Expenses related to strategic altern
Slide 23: Capital Expenditures - Towers
Capital Expenditures - Towers ($ in thousands) Nine months ended September 30% 30, 2025 Tower builds and augmentation (1) 9,816 58% Purchase of land interests 2,074 12% Maintenance and other 5,088 Total (2) 16,978 Tower builds and augmentations Purchase of land interests Maintenance and other 23 (1)
Slide 24: 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 Assess long-term Ongoing lease up Ground rent alternatives, efforts rationalizat
Slide 25: Noncontrolling investment interests provide significant cash flow
Noncontrolling investment interests provide significant cash flow Nine Four entities historically contribute >80% of equity income and months distributions (2022 - 2024) ended Sept. 30, (Dollars in 2025 millions) 2022 2023 2024 (1)(2)(3) Equity in earnings of unconsolidated $158 $158 $161 $ 147 enti
Slide 26: Appendix
Appendix
Slide 27: Adjusted OIBDA and Adjusted EBITDA Reconciliation
Adjusted OIBDA and Adjusted EBITDA Reconciliation Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 ($ in thousands) Array TDS Telecom TDS* Array TDS Telecom TDS* Net income (loss) from continuing operations (GAAP) $ 109,920 $ (282) $ 78,781 $ (95,701) $ 9,391 $ (99,364) Ad
Slide 28: 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 29: Adjusted Free Cash Flow
Adjusted Free Cash Flow (Dollars in thousands) Q3'25 Net income from continuing operations - Array (GAAP) $ 109,920 Add back or deduct: Deferred income taxes (80,572) Short-term imputed spectrum lease income (30,413) Amortization of deferred debt charges 274 Equity in earnings of unconsolidated enti
Slide 30: 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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