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TDS Reports Third Quarter 2025 Results

Telephone and Data Systems, Inc. (TDS) released its financial performance metrics for the third quarter of 2025, demonstrating significant developments and challenges within the company. The results reflect TDS's ongoing strategic focus on enhancing its telecommunications infrastructure and operational efficiencies.

On November 7, 2025, TDS held a teleconference at 9:00 a.m. CST to discuss these quarterly results, which showcased a total operating revenue of $308.5 million. This figure represents a decrease compared to the $327.5 million reported during the same quarter last year, indicative of a competitive and dynamic market.

Despite the drop in revenues, TDS reported a net income of $40.2 million, or $0.33 per share, marking a significant turnaround from the loss of $100.4 million, or $0.88 per share, seen in the third quarter of 2024. This recovery reflects TDS's efforts in managing its expenses and optimizing operational strategies.

Key Highlights from Q3 2025

1. Share Repurchase Authorization: The TDS Board has approved a new $500 million share repurchase program, adding to the existing authorizations. This initiative signifies the company’s confidence in its long-term strategic direction.

2. Fiber Broadband Development: TDS Telecom is enhancing its fiber broadband strategy, delivering services to an additional 42,000 potential customer addresses in Q3 2025. The segment added 11,200 new residential fiber connections, expanding its customer base amidst a backdrop of increasing demand for high-speed internet services.

3. Divestitures Impact: The company’s revenues were slightly affected by $6 million due to the divestiture of non-strategic assets. However, TDS Telecom is continuing to pivot from these changes toward future growth, underscoring its commitment to innovation and infrastructure enhancement.

4. Transaction with T-Mobile: TDS recently closed the sale of its wireless operations and certain spectrum assets to T-Mobile on August 1, 2025. This transaction has enabled TDS to refocus its business strategy and is expected to positively influence its rental revenue streams from tower leases.

5. Leadership Changes: TDS has announced the appointment of Anthony Carlson as the new President and CEO of Array, effective November 16, 2025. Carlson's extensive experience positions him to guide Array in its next growth phase as it solidifies its presence within the telecommunications tower segment.

Looking Ahead

Moving forward, TDS has set estimated full-year results for TDS Telecom, aiming for total revenues between $1,030 million and $1,050 million, with adjusted EBITDA (Non-GAAP) expected to reach between $320 million and $350 million. These benchmarks indicate TDS’s determination to manage financial health while investing in future growth opportunities.

TDS’s approach to revamping its business model through strategic divestitures and a focus on fiber-based services underlines the company's adaptability in a competitive telecommunications landscape. As the market continues to evolve, TDS remains committed to leveraging its assets to drive sustainable growth and create value for its shareholders.

For additional details about these results, interested parties can access the archived teleconference and supplementary financial information at investors.tdsinc.com.

Conclusion

In conclusion, TDS's third-quarter performance shows resilience and a proactive approach toward navigating the changing telecommunication environment. By doubling down on its fiber solutions and share repurchase initiatives, TDS is strategically positioning itself to take advantage of future opportunities while addressing the challenges presented in the current market.