TDS (TDS) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 20, 2026

AI-Generated Deep Dive Summary

TDS (TDS) reported strong financial performance during its Q4 2025 earnings call, highlighting key achievements that position the company for long-term growth. The sale of spectrum assets to AT&T in January 2026 generated $1.018 billion, enabling TDS to repay its final $150 million term loan and strengthen its balance sheet. Additionally, the company repurchased 1.8 million shares in Q4, totaling 2.8 million shares for the year, while maintaining $524 million of remaining buyback authorization. These moves underscore TDS's commitment to strategic capital allocation and shareholder value. Fiber expansion remains a key focus, with TDS adding 58,000 new marketable fiber addresses in Q4—a 39% year-over-year increase—and 140,000 for the full year. This growth has expanded their broadband footprint significantly. Notably, the long-term target for marketable fiber addresses was raised from 1.8 million to 2.1 million, reflecting new opportunities in about 50 communities and an additional 300,000 incremental opportunities. The company's telecom operating revenues decreased by 1% in Q4 and 2% for the year, but adjusted EBITDA improved by 6% quarter-over-quarter, despite a 6% decline annually due to divestiture impacts and noncash stock-based compensation adjustments. Capital expenditures (CapEx) for telecom rose to $406 million in 2025, with guidance increasing to $550 million-$600 million for 2026 to support accelerated fiber builds. Array, a key subsidiary, reported strong progress in spectrum monetization, with approximately 70% of holdings either monetized or under agreement. This includes $1 billion transactions each with Verizon and AT&T, and $178 million with T-Mobile. Cash site rental revenue for Array grew by 64% year over year, driven by robust demand from all customers, including a significant contribution from T-Mobile's interim site revenues. However, Array's guidance for 2026 excludes any revenue from DISH Wireless due to non-payment and ongoing disputes. The company recognized $7 million in 2025 but anticipates no future collections.

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Originally published on The Motley Fool on 2/20/2026