Telephone and Data Systems, Inc. · NYSE:TDS
Telephone and Data Systems — Q3 2026 Earnings Presentation
29 slides from Telephone and Data Systems's earnings presentation, Nov 6, 2026
Slide 1: Third Quarter 2026 Results
Third Quarter 2026 Results November 6, 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 on the goal to deliver 2.1 million marketable fiber service Deployment addresses; delivering 76,000 in the quarter 4 (1) Leverage measured as gross bank leverage (Total Debt / Adjusted EBITDA) Invested $520M ($218M in the quarter) repurchasing 14.7M shares YTD
Slide 5: TDS Telecom
5 Telephone and Data Systems. All Rights Reserved.
Slide 6: TDS Telecom Value Drivers
TDS Telecom Value Drivers Service Address Footprint Key Metrics Total Service Addresses 2.00M 6 19% Fiber Service Addresses 1.26M 18% 63% Q3 Residential Fiber $97M Revenue 1 Residential Fiber BB 335K Connections 1 Fiber Copper Coax (1) Fiber revenue and connections excludes fiber in cable markets. 6
Slide 7: Q3 2026 Highlights
Q3 2026 Highlights Delivered approximately 76,000 new marketable fiber addresses in Q3 2026, largest third quarter in company history; up ~82% from Q3 2025 Added approximately 17,000 net residential fiber connections in Q3 7 2026, largest quarter in company history; up 50% from Q3 2025 Continued eff
Slide 8: Update on Long-Term Goals
Update on Long-Term Goals We continue to make progress toward our long-term goals Goal: Goal: Goal: 2.1 million 80% 95% 8 marketable service addresses service addresses with fiber service served by fiber multi-gig speeds addresses(1) Where we are: Where we are: Where we are: 1.26 million 63% 82% (1)
Slide 9: Fiber drives footprint growth
Fiber drives footprint growth New Marketable Fiber Addresses * Total Marketable Fiber Service Addresses * + 82% 77% 80,000 YOY 1,400,000 + 150% 70,000 YOY 1,200,000 9 60,000 1,000,000 50,000 + 180% 800,000 YOY 40,000 600,000 30,000 400,000 20,000 200,000 10,000 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q3
Slide 10: Fiber drives residential connection growth
Fiber drives residential connection growth Residential Fiber Net Additions * Residential Fiber Connections * 81% 20,000 400,000 + 50% 18,000 YOY 350,000 + 47% 16,000 YOY 10 300,000 14,000 + 31% 250,000 12,000 YOY 10,000 200,000 8,000 150,000 6,000 100,000 4,000 50,000 2,000 Q1'25 Q2'25 Q3'25 Q4'25 Q
Slide 11: Quarterly revenue results
Quarterly revenue results Residential Revenue Residential Revenue per Connection by Technology ($M) $200 $67.50 $182 $179 $66.88 $175 Note: Divested markets 11 $65.66 2% $150 accounted for a $85 $2M decrease in $65.00 $97 residential revenue $125 year-over-year $100 $75 $62.50 $60 Fiber(1) $50 $56 C
Slide 12: TDS Telecom financial performance
TDS Telecom financial performance % ($M) Q3’26 Q3’25 Change Total operating revenues (1) $ 247 $ 255 (3)% 12 (1) Expenses related to the strategic alternatives review were $3.5 M in Q3'25 and $0 in Q3'24. (2) See appendix for explanation. Cash expenses (2),(3) 188 182 4% Adjusted EBITDA (2) (Non-GAA
Slide 13: 2026 TDS Telecom guidance
2026 TDS Telecom guidance(1) ($M) 2026 Previous 2026 Current As of November 6, 2026 Estimates Estimates 13 Total operating revenues $1,000-$1,025 $990-$1,010 Adjusted EBITDA (2) (Non-GAAP) $310-$330 $290-$310 Adjusted OIBDA (2) (Non-GAAP) $300-$320 $280-$300 Capital expenditures $625-$675 Approx. $7
Slide 14: Array
14 Telephone and Data Systems. All Rights Reserved.
Slide 15: Array Value Pillars
Array Value Pillars Growing Tower Non-controlling Spectrum Business Investment Interests 15 Non-controlling 100% U.S. investment interests Principally C-Band generate meaningful Remains 4,455 Owned towers income and distributions 15 Telephone and Data Systems. All Rights Reserved.
Slide 16: Q3 2026 Highlights
Q3 2026 Highlights Cash site rental revenue increased 20% over prior year (excludes T-Mobile Interim revenues and DISH revenues) 16 Sequential increase in tower colocations (excludes T-Mobile interim) Continue to monetize spectrum • Received regulatory approval on 600MHz and 700MHz licenses as well
Slide 17: Towers – Q3 2026 operating highlights
Towers – Q3 2026 operating highlights Q3 2026 Tower Rental Revenue Distribution Tower Metrics(2) 4% 0.98 0.98 18% 0.96 (1) For the month of September 2025 which is a full period after implementation of the T-Mobile MLA 0.95 17 (2) Includes ~600 existing pre-MLA sites and the 2,015 MLA Committed Site
Slide 18: Site rental revenues
Site rental revenues Total Cash Site Rental Revenues ($ thousands) $46,458 (Dollars in thousands) Q3'26 Q3'25 $4,898 YOY Change $41,966 (excluding DISH) Cash site rental revenue $5,440 Existing leases (1,2) $25,833 $27,101 + 16% total $14,365 New leases since September 30, 2025 (1) Existing leases i
Slide 19: 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 1,200 - 1,600 tenantless (naked) towers Tenantless (naked) towers 19 Assess alternatives, Ongoing lease up efforts Ground rent rationalization incl
Slide 20: 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 21: Non-controlling investment interests provide significant cash flow
Non-controlling investment interests provide significant cash flow Nine months ended (Dollars in millions) 2023 2024 2025 (1)(2)(3) September 30, 2026(4) Equity in earnings of 21 $158 $161 $174 $116 unconsolidated entities Distributions from $150 $169 $216 $90 unconsolidated entities (1) Array has i
Slide 22: Capital Expenditures - Towers
Capital Expenditures - Towers (Dollars in thousands) Year-to-date September 30, 2026 31% Tower builds and augmentation (1) $ 7,525 22 46% Purchase of land interests 3,759 23% Maintenance and other 5,172 Total $ 16,456 Tower builds and augmentations Purchase of land interests Maintenance and other (1
Slide 23: Array operating performance
Array operating performance ($ thousands) Q3'26 Q3'25 Change Site rental $ 52,475 $ 45,838 14 % Services 1,395 1,281 9% Total operating revenues 53,870 47,119 14 % Cost of operations 23,349 20,976 11 % 23 Selling, general and administrative 18,200 20,525 (11)% Expenses related to strategic alternati
Slide 24: 2026 Array guidance
2026 Array guidance(1) ($M) 2026 Previous 2026 Current As of November 6, 2026 Estimates Estimates 24 Total operating revenues $205-$215 Unchanged Adjusted EBITDA (2) (Non-GAAP) $220-$235 Unchanged Adjusted OIBDA (2) (Non-GAAP) $60-$75 Unchanged Capital expenditures $25-$35 Unchanged (1) There can be
Slide 25: Appendix
Appendix
Slide 26: Adjusted OIBDA and Adjusted EBITDA Reconciliation
Adjusted OIBDA and Adjusted EBITDA Reconciliation Three Months Ended September 30, 2026 Three Months Ended September 30, 2025 ($ in thousands) TDS Telecom Array TDS* TDS Telecom Array TDS* Net income (loss) from continuing operations (GAAP) $ (11,954) $ 69,978 $ 59,888 $ (282) $ 109,920 $ 78,781 Add
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, 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 28: 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 29: Cash Expenses
Cash Expenses Total cash expenses represent total operating expenses as shown in the 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 and Adjusted O
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