Q3 FY2026
Filed Nov 6, 2026TDS Telecom service revenue fell 3% and its updated 2026 guidance was lowered, while Array site rental revenue grew 14% and TDS launched a $250 million incremental buyback.
Array's tower business grew revenue 14% and colocations rose sequentially, and the nine-month results include large gains on license sales. Against that, TDS Telecom service revenue declined 3%, its operating loss widened, continuing net income fell 24% in the quarter, TDS Telecom's full-year revenue, Adjusted OIBDA, Adjusted EBITDA and capex guidance were updated, and free cash flow was negative for the nine months.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, Q3 2026GAAP | $306.7M | – | (1) % |
| Total operating expenses, Q3 2026GAAP | $336.7M | – | (11) % |
| Total operating income (loss), Q3 2026GAAP | −$30.01M | – | 56 % |
| Equity in earnings of unconsolidated entities, Q3 2026GAAP | $41.41M | – | (41) % |
| Interest and dividend income, Q3 2026GAAP | $22.00M | – | 40 % |
| Interest expense, Q3 2026GAAP | −$11.57M | – | 76 % |
| Short-term imputed spectrum lease income, Q3 2026GAAP | $7.67M | – | (75) % |
| Income before income taxes, Q3 2026GAAP | $34.02M | – | N/M |
| Income tax expense (benefit), Q3 2026GAAP | −$25.87M | – | 64 % |
| Net income from continuing operations, Q3 2026GAAP | $59.89M | – | (24) % |
| Net income from continuing operations attributable to TDS shareholders, Q3 2026GAAP | $46.89M | – | (19) % |
| Net income (loss) attributable to TDS common shareholders, Q3 2026GAAP | $28.55M | – | N/M |
| Basic EPS from continuing operations attributable to TDS common shareholders, Q3 2026GAAP | $0.26 | – | (25) % |
| Diluted EPS from continuing operations attributable to TDS common shareholders, Q3 2026GAAP | $0.26 | – | (23) % |
| Diluted EPS attributable to TDS common shareholders, Q3 2026GAAP | $0.25 | – | N/M |
| Total operating revenues, nine months 2026GAAP | $925.4M | – | 3 % |
| Total operating expenses, nine months 2026GAAP | $438.4M | – | (57) % |
| Total operating income (loss), nine months 2026GAAP | $487.0M | – | N/M |
| Net income from continuing operations, nine months 2026GAAP | $580.6M | – | N/M |
| Net income (loss) attributable to TDS common shareholders, nine months 2026GAAP | $436.9M | – | N/M |
| Diluted EPS from continuing operations attributable to TDS common shareholders, nine months 2026GAAP | $3.62 | – | N/M |
| Diluted EPS attributable to TDS common shareholders, nine months 2026GAAP | $3.77 | – | N/M |
| TDS Telecom total operating revenues, Q3 2026GAAP | $247.3M | – | (3) % |
| TDS Telecom total service revenues, Q3 2026GAAP | $247.2M | – | (3) % |
| TDS Telecom expansion revenues, Q3 2026GAAP | $48.31M | – | 22 % |
| TDS Telecom operating income (loss), Q3 2026GAAP | −$17.47M | – | N/M |
| TDS Telecom Adjusted OIBDA, Q3 2026non-GAAP | $63.49M | – | – |
| TDS Telecom Adjusted EBITDA, Q3 2026non-GAAP | $65.86M | – | – |
| TDS Telecom Adjusted OIBDA, nine months 2026non-GAAP | $203.5M | – | – |
| Array total operating revenues, Q3 2026GAAP | $53.87M | – | 14 % |
| Array site rental revenue, Q3 2026GAAP | $52.48M | – | 14 % |
| Array operating income (loss), Q3 2026GAAP | −$2.33M | – | 96 % |
| Array total operating revenues, nine months 2026GAAP | $160.0M | – | 56 % |
| Array operating income (loss), nine months 2026GAAP | $557.7M | – | N/M |
| Array Adjusted OIBDA, Q3 2026non-GAAP | $18.25M | – | – |
| Array Adjusted EBITDA, Q3 2026non-GAAP | $63.74M | – | – |
| Total residential fiber net adds, Q3 2026other | 16,700 | – | – |
| Total residential broadband net adds, Q3 2026other | 7,200 | – | – |
| Residential fiber churn, Q3 2026other | 1.3 % | – | – |
| Total residential broadband churn, Q3 2026other | 1.7 % | – | – |
| Residential revenue per connection, Q3 2026other | $66.88 | – | – |
| Expansion fiber connections, Q3 2026other | 191,200 | – | – |
| Total broadband connections, Q3 2026other | 579,600 | – | – |
| TDS Telecom capital expenditures, Q3 2026GAAP | $251.5M | – | – |
| Array colocations, Q3 2026other | 4,372 | – | – |
| Array tower tenancy rate, Q3 2026other | 0.98 | – | – |
| Net cash provided by operating activities, continuing operations, nine months 2026GAAP | $44.73M | – | – |
| Cash paid for additions to property, plant and equipment, nine months 2026GAAP | −$515.6M | – | – |
| Free cash flow, continuing operations, nine months 2026non-GAAP | −$472.8M | – | – |
| Array Adjusted Free Cash Flow from continuing operations, nine months 2026non-GAAP | −$162.0M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| TDS TelecomCompany explanation: residential fiber revenue growth of 14% more than offset by impacts of divestitures and continued legacy declines. Total residential revenue was $179,167 thousand, down (1) %, commercial $32,451 thousand, down (5) %, and wholesale $35,588 thousand, down (9) %. | $247,265 thousand (Q3 2026) | – | (3) % |
| ArraySite rental revenues of $52,475 thousand grew 14% year over year, per the release. Release states colocations grew sequentially. Operating loss was $(2,326) thousand compared with $(53,313) thousand a year earlier. | $53,870 thousand (Q3 2026) | – | 14 % |
| All OtherFiling defines All Other as corporate and other operations and intercompany eliminations. Operating loss was $(10,216) thousand compared with $(6,369) thousand a year earlier. No further explanation is given. | $5,559 thousand (Q3 2026) | – | (12) % |
FY2026, updated November 6, 2026 (TDS Telecom) outlook
- Revenue$990 million to $1,010 million (previously $1,000 million to $1,025 million)
- NoteAdjusted OIBDA (non-GAAP): $280 million to $300 million (previously $300 million to $320 million)
- NoteAdjusted EBITDA (non-GAAP): $290 million to $310 million (previously $310 million to $330 million)
- NoteCapital expenditures: approximately $750 million (previously $625 million to $675 million)
- NoteArray, FY2026, unchanged: total operating revenues $205 million to $215 million; Adjusted OIBDA (non-GAAP) $60 million to $75 million; Adjusted EBITDA (non-GAAP) $220 million to $235 million; capital expenditures $25 million to $35 million
- NoteRelease headline states 'Reaffirming 2026 financial guidance' in the highlights, alongside the updated TDS Telecom estimates
Capital returns
- Repurchased approximately 6 million TDS shares in Q3 2026 at an average price per share of $36.65 (company release).
- Following the quarter end, TDS continued to repurchase shares, virtually exhausting the existing authorization (company release).
- TDS Board approved an incremental $250 million share repurchase authorization, which the company says provides future flexibility.
- CEO states TDS has repurchased nearly 15 million shares in 2026, returning over $520 million to shareholders.
- Nine-month cash flow: repurchase of TDS Common Shares $(205,057) thousand; dividends paid to TDS shareholders $(65,610) thousand; Array dividends paid to noncontrolling public shareholders $(332,480) thousand.
What drove it
- Company explanation: TDS Telecom service revenue decline is attributed to impacts of divestitures and continued legacy declines, partly offset by residential fiber revenue growth of 14%.
- Company explanation: TDS Telecom expanded its marketable fiber service footprint by approximately 76,000 addresses and grew fiber net adds by approximately 17,000 in the quarter (table shows 16,700 residential fiber net adds).
- Array site rental revenue grew 14% year over year and the release states colocations increased sequentially.
- Q3 2026 continuing operations net income was lower, with equity in earnings of unconsolidated entities down (41) % and short-term imputed spectrum lease income down (75) %, both as printed.
- Nine-month Array results include (Gain) loss on license sales and exchanges, net of $(566,459) thousand, which lifted Array operating income to $557,722 thousand.
- Release states TDS withdrew its offer to acquire the Array minority interest and announced on September 1, 2026 that it is no longer pursuing the Array Proposal.
Concerns
- TDS Telecom operating loss widened to $(17,471) thousand from $(8,292) thousand in Q3 2025, and its nine-month operating income fell to $(29,480) thousand from $5,538 thousand.
- TDS Telecom Adjusted OIBDA and Adjusted EBITDA fell in the quarter to $63,493 thousand and $65,859 thousand from $76,972 thousand and $80,491 thousand.
- TDS Telecom full-year guidance for revenue, Adjusted OIBDA and Adjusted EBITDA was lowered, and capital expenditures guidance rose to approximately $750 million.
- Free cash flow from continuing operations was $(472,800) thousand for nine months 2026 versus $(38,655) thousand a year earlier, as capital expenditures rose to $(515,583) thousand.
- Residential fiber churn and total residential broadband churn were 1.3% and 1.7%; residential broadband churn was flat year over year.
- Array colocations were 4,372, down from 4,517 a year earlier; the company attributes sequential growth to recent additions, and the tenancy rate of 0.98 compares with 1.02 a year earlier.
What to watch
- Closing of the remaining wireless spectrum sales; release states regulatory approval was received in October 2026 and closings remain subject to FCC finality and other customary closing conditions.
- TDS Telecom fiber net adds and residential revenue per connection against the lowered guidance range.
- Pace of share repurchases under the new $250 million authorization after the existing authorization was virtually exhausted.
- Array colocation count and tenancy rate, which the release says increased sequentially in Q3 2026.
- Free cash flow trajectory against the approximately $750 million TDS Telecom capital expenditure estimate.
- Quarterly revenue of TDS Telecom and TDS Telecom Adjusted OIBDA against the full-year estimates in the release.
Balance sheet and cash flow
- Cash and cash equivalents: $1,635,402 thousand at September 30, 2026, compared with $765,952 thousand at December 31, 2025. Cash, cash equivalents and restricted cash end of period was $1,639,600 thousand.
- Nine-month net cash provided by investing activities from continuing operations was $1,650,309 thousand, including cash received from divestitures of $2,188,235 thousand.
- Nine-month gain line for license sales and exchanges was $(553,140) thousand in the cash flow statement and $(566,459) thousand in the Array statement of operations.
- Long-term debt, net: $668,736 thousand at September 30, 2026, compared with $823,364 thousand at December 31, 2025. Current portion of long-term debt: $9,269 thousand compared with $5,274 thousand.
- Total assets: $8,067,302 thousand at September 30, 2026, compared with $8,398,303 thousand at December 31, 2025. Total equity: $5,223,835 thousand compared with $5,267,353 thousand.
- Non-current assets held for sale fell to $57,836 thousand from $1,598,131 thousand at December 31, 2025.
Analysis
TDS reported third quarter 2026 total operating revenues from continuing operations of $306,694 thousand, down (1) % from $308,521 thousand, and diluted EPS from continuing operations attributable to TDS common shareholders of $0.26, compared with $0.33. Net income from continuing operations attributable to TDS shareholders was $46,889 thousand, down (19) % from $57,545 thousand. The two business lines moved in opposite directions. TDS Telecom revenue was $247,265 thousand, down (3) %, and its operating loss widened to $(17,471) thousand. The company attributes the revenue decline to divestitures and continued legacy declines, partly offset by residential fiber revenue growth of 14%. Within the Telecom revenue lines, incumbent revenue was $74,948 thousand, down (8) %, cable $55,909 thousand, down (7) %, and expansion revenue $48,310 thousand, up 22 %.
Array revenue was $53,870 thousand, up 14 %, with site rental revenue of $52,475 thousand, also up 14 %. Array operating loss narrowed to $(2,326) thousand from $(53,313) thousand. The release reports colocations of 4,372 and a tenancy rate of 0.98 at quarter end, with colocations higher than the prior quarter's 4,362 but below the 4,517 reported a year earlier. Array Adjusted OIBDA was $18,255 thousand against $6,107 thousand, while Array Adjusted EBITDA was $63,741 thousand against $85,081 thousand, so the two non-GAAP measures moved differently.
The nine-month figures are shaped by discontinued-line and license transactions. Total operating income was $487,016 thousand against $(114,215) thousand, and the Array statement carries a (gain) on license sales and exchanges of $(566,459) thousand. Nine-month operating cash flow from continuing operations was $44,726 thousand, down from $224,840 thousand, and capital expenditures were $(515,583) thousand, which produced free cash flow from continuing operations (non-GAAP) of $(472,800) thousand. Cash and cash equivalents rose to $1,635,402 thousand from $765,952 thousand at December 31, 2025, and the cash flow statement shows $2,188,235 thousand of cash received from divestitures.
On capital allocation, TDS repurchased approximately 6 million shares in the quarter at an average of $36.65 and approved an incremental $250 million authorization. The CEO states nearly 15 million shares were repurchased in 2026 for over $520 million. Nine-month repurchases of TDS common shares were $(205,057) thousand, and Array dividends to noncontrolling public shareholders were $(332,480) thousand.
For the year, TDS Telecom's guidance was updated: revenue is now $990 million to $1,010 million against a previous $1,000 million to $1,025 million, Adjusted OIBDA $280 million to $300 million against $300 million to $320 million, Adjusted EBITDA $290 million to $310 million against $310 million to $330 million, and capital expenditures approximately $750 million against $625 million to $675 million. Array guidance is unchanged, and the release also says TDS is reaffirming its 2026 financial guidance. The figures to watch are TDS Telecom's fiber net adds (16,700 in the quarter, compared with approximately 17,000 in the text), the cadence of capital spending, and the timing of the remaining spectrum closings, which the release says remain subject to FCC finality.
Management, verbatim
We continue to make progress as our teams execute our strategic objectives.
Walter Carlson, TDS President and CEO
Array increased the number of colocations sequentially, highlighting the value of our assets, and continues to improve profitability.
Walter Carlson, TDS President and CEO
following TDS' withdrawal of the offer to acquire the minority interest in Array, TDS was in the market, and has repurchased nearly 15 million shares in 2026, returning over $520 million to shareholders.
Walter Carlson, TDS President and CEO
Not in the filing
stated, not guessed- No prior-period outlook was supplied with the request, so the vs_prior_guidance comparison is empty; the filing's own Previous and Current estimates are reported in guidance.other.
- Prior-year and prior-quarter comparisons for most Q3 2026 non-GAAP lines (TDS Telecom and Array Adjusted OIBDA and Adjusted EBITDA) and for the nine-month cash flow lines are not printed in the release.
- Quarter-over-quarter values for the consolidated income statement lines are not printed.
- Prior-year values for balance sheet items are printed only at December 31, 2025, not at a prior-year quarter end; they are recorded in balance_sheet_cash_flow rather than in prior_year fields.
- Consolidated free cash flow for Q3 2026 alone is not printed; only the nine-month figure is reported.
- No consensus estimates, analyst expectations or share price reaction are included in the documents.
- Gross margin, operating expense guidance and tax rate guidance are not provided in the release.
- Total debt is not printed as one figure; only the current and non-current portions are shown separately.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.