Telephone & Data Systems Q2 2025 Earnings: Revenues Down, Strategic Transformation Ahead

Telephone & Data Systems (TDS) reported Q2 2025 earnings with total operating revenues of $1,186 million, a slight decrease from the previous year. The company announced a net loss of $5 million, an improvement from the $14 million loss in the same quarter of the previous year. TDS also rebranded United States Cellular to Array Digital Infrastructure and completed the sale of its wireless operations to T-Mobile for $4.3 billion. The company is optimistic about its strategic transformation, focusing on expanding its fiber network and strengthening its tower operations to drive future growth and value creation.

Telephone & Data Systems (TDS) reported its Q2 2025 earnings, with total operating revenues of $1,186 million, a slight decrease from the previous year's $1,238 million. The company announced a net loss of $5 million, an improvement from the $14 million loss in the same quarter of the previous year. TDS also rebranded United States Cellular to Array Digital Infrastructure and completed the sale of its wireless operations to T-Mobile for $4.3 billion [1].

The company is optimistic about its strategic transformation, focusing on expanding its fiber network and strengthening its tower operations to drive future growth and value creation. TDS delivered 27,000 new fiber service addresses and generated 10,300 fiber net additions, leading to 19% growth in total fiber connections since last year [2].

TDS expects its revenue to be in the range of $1.03 billion to $1.05 billion for the year, with adjusted EBITDA expected to be $320 million to $350 million [3]. The company plans to redeem approximately $1.1 billion in debt, resulting in approximately $80 million in annual interest savings. Additionally, TDS is expected to receive $2 billion of proceeds from pending spectrum sales with AT&T and Verizon, subject to regulatory approvals [3].

TDS also announced a special dividend of $23 per share, totaling approximately $1.63 billion to TDS. The company's credit rating was upgraded to BBB- from BB by S&P [1].

Despite the challenges posed by the divestiture of its wireless operations, TDS remains committed to its strategic goals. The company is focused on leveraging its tower and fiber businesses to capitalize on the growing demand for data and communication services. TDS expects to deliver 150,000 new fiber service addresses this year, with strong growth in fiber connections and marketable fiber service addresses [2].

References:
[1] https://finance.yahoo.com/news/telephone-data-systems-inc-tds-070423552.html
[2] https://www.marketscreener.com/news/telephone-and-data-systems-inc-reports-earnings-results-for-the-second-quarter-and-six-months-ende-ce7c5ed2d18bf32c
[3] https://seekingalpha.com/news/4483369-tds-outlines-1_03b-1_05b-revenue-target-and-23-share-special-dividend-following-uscellular