second quarter 2026
Filed Aug 7, 2026TDS reports second quarter 2026 results; TDS Telecom and Array both update guidance for 2026
Total operating revenues from continuing operations increased to $309.3 million from $298.5 million, while the $260.6 million of net income attributable to TDS common shareholders included a period in which Array closed spectrum-license sales totaling $1 billion and other disclosed spectrum sales. TDS Telecom reported service revenue down 6%, while Array reported 95% year-over-year site rental revenue growth and sequential tower tenancy growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues from continuing operationsGAAP | $309.3 million | – | – |
| Net income attributable to TDS common shareholders from continuing operationsGAAP | $260.6 million | – | – |
| Diluted earnings per share from continuing operationsGAAP | $2.24 | – | – |
| TDS Telecom service revenue changeother | down 6% | – | down 6% |
| TDS Telecom residential fiber revenue growthother | 13% | – | 13% |
| Marketable fiber service addresses deliveredother | approximately 66,000 addresses | – | – |
| Residential fiber net additionsother | 15,100 | – | – |
| Array site rental revenues growthother | 95% | – | 95% |
| TDS Telecom net income (loss) from continuing operations, six months ended June 30, 2026GAAP | $ (4) | – | – |
| Array net income (loss) from continuing operations, six months ended June 30, 2026GAAP | $ 517 | – | – |
| TDS Telecom income (loss) before income taxes, six months ended June 30, 2026GAAP | $ (8) | – | – |
| Array income (loss) before income taxes, six months ended June 30, 2026GAAP | $ 686 | – | – |
| TDS Telecom EBITDA, six months ended June 30, 2026non-GAAP | $ 138 | – | – |
| Array EBITDA, six months ended June 30, 2026non-GAAP | $ 731 | – | – |
| TDS Telecom adjusted EBITDA, six months ended June 30, 2026non-GAAP | $ 144 | – | – |
| Array adjusted EBITDA, six months ended June 30, 2026non-GAAP | $ 119 | – | – |
| TDS Telecom adjusted OIBDA, six months ended June 30, 2026non-GAAP | $ 140 | – | – |
| Array adjusted OIBDA, six months ended June 30, 2026non-GAAP | $ 33 | – | – |
| TDS Telecom depreciation, amortization and accretion expense, six months ended June 30, 2026GAAP | 146 | – | – |
| Array depreciation, amortization and accretion expense, six months ended June 30, 2026GAAP | 27 | – | – |
| TDS Telecom gain on license sales and exchanges, net, six months ended June 30, 2026GAAP | (2) | – | – |
| Array gain on license sales and exchanges, net, six months ended June 30, 2026GAAP | (566) | – | – |
| Array short-term imputed spectrum lease income, six months ended June 30, 2026GAAP | (58) | – | – |
full-year 2026 outlook
- NoteTDS Telecom total operating revenues: $1,000-$1,025 million
- NoteTDS Telecom adjusted OIBDA (Non-GAAP): $300-$320 million
- NoteTDS Telecom adjusted EBITDA (Non-GAAP): $310-$330 million
- NoteTDS Telecom capital expenditures: $625-$675 million
- NoteTDS Telecom marketable fiber service addresses: 250,000 - 300,000
- NoteArray total operating revenues: $205-$215 million
- NoteArray adjusted OIBDA (Non-GAAP): $60-$75 million
- NoteArray adjusted EBITDA (Non-GAAP): $220-$235 million
- NoteArray capital expenditures: $25-$35 million
- NoteTDS Telecom income (loss) before income taxes (GAAP): ($15)-$5 million
- NoteArray income (loss) before income taxes (GAAP): $775-$790 million
- NoteTDS Telecom EBITDA (Non-GAAP): $310-$330 million
- NoteArray EBITDA (Non-GAAP): $870-$885 million
- NoteArray gain on license sales and exchanges, net: (585) million
- NoteArray short-term imputed spectrum lease income: (65) million
- NoteArray equity in earnings of unconsolidated entities: 145 million
- NoteArray interest and dividend income: 15 million
Capital returns
- Array issued a special dividend of $11 per common share on June 25, 2026.
What drove it
- TDS Telecom delivered approximately 66,000 marketable fiber service addresses.
- TDS Telecom recorded 15,100 residential fiber net additions.
- Residential fiber revenue growth of 13% more than offset impacts of divestitures and continued legacy declines.
- Array site rental revenues grew 95% year over year.
- Array delivered consecutive quarter over quarter tower tenancy growth.
- Array completed transactions to monetize virtually all of its spectrum outside of the C-Band.
Concerns
- TDS Telecom service revenue was down 6%.
- The release states that final results may differ materially from estimated results.
- TDS has not completed a reconciliation of estimated results to net income because it does not provide guidance for income taxes.
- The Array Proposal is non-binding, and a special committee of independent and disinterested Array directors has been formed to evaluate it.
What to watch
- TDS Telecom's delivery against guidance of 250,000 - 300,000 marketable fiber service addresses.
- TDS Telecom's capital expenditures guidance of $625-$675 million.
- TDS Telecom's ability to address divestiture impacts and continued legacy declines cited in the release.
- Array's delivery against revenue guidance of $205-$215 million and adjusted EBITDA guidance of $220-$235 million.
- The evaluation of TDS' non-binding proposal to acquire Array Common Shares not owned by TDS.
- The closing of additional spectrum license sales to T-Mobile and Array's ability to monetize remaining spectrum assets, as cited in the release's risk factors.
Balance sheet and cash flow
- Array closed on the sale of certain 700 MHz wireless spectrum licenses for total proceeds of $74.8 million on May 5, 2026.
- Array closed on the sale of certain 600 MHz wireless spectrum licenses for total proceeds of $86.4 million on May 12, 2026.
- Array closed on the sale of certain cellular and other spectrum licenses for total proceeds of $1 billion on June 1, 2026.
Analysis
TDS reported total operating revenues from continuing operations of $309.3 million for the second quarter of 2026, compared with $298.5 million in the same period one year ago. Net income attributable to TDS common shareholders from continuing operations was $260.6 million, or $2.24 per diluted share, compared with a loss of $(6.0) million, or $(0.05) per diluted share, in the same period one year ago. The filing separately identifies substantial Array spectrum-sale activity during the quarter, including sales with total proceeds of $74.8 million, $86.4 million and $1 billion.
TDS Telecom's operating indicators were mixed. The business delivered approximately 66,000 marketable fiber service addresses and 15,100 residential fiber net additions. Residential fiber revenue growth of 13% more than offset impacts of divestitures and continued legacy declines, but the release reports that service revenue was down 6%. Management increased its full-year marketable fiber service address outlook to 250,000 - 300,000 and increased capital expenditures guidance to $625-$675 million.
Array reported 95% year-over-year growth in site rental revenues and consecutive quarter-over-quarter tower tenancy growth. Its full-year revenue outlook was narrowed to $205-$215 million on higher interim site revenue, while adjusted EBITDA guidance was increased to $220-$235 million. The six-month reconciliation shows Array adjusted EBITDA of $119 million and adjusted OIBDA of $33 million, after disclosed gains on license sales and exchanges, net, and short-term imputed spectrum lease income.
Capital allocation during the period included Array's $11 per common share special dividend issued on June 25, 2026. TDS also disclosed its May 7, 2026 non-binding proposal to acquire Array Common Shares that TDS does not own; an Array special committee is evaluating the proposal. Investors will focus on TDS Telecom's fiber build execution and spending, the persistence of Array's tower-tenancy and site-rental trends, remaining spectrum monetization, and the outcome of the Array Proposal.
The full-year outlook for TDS Telecom was reduced for total operating revenues to $1,000-$1,025 million, with adjusted OIBDA narrowed to $300-$320 million and adjusted EBITDA narrowed to $310-$330 million. Array's revenue range was narrowed from $200-$215 million to $205-$215 million, while its adjusted OIBDA range increased to $60-$75 million and adjusted EBITDA range increased to $220-$235 million. The release says TDS does not provide income-tax guidance and therefore has not completed a reconciliation of estimated results to net income.
Management, verbatim
I am pleased with the progress our teams continue to make in executing our strategic objectives.
Walter Carlson, TDS President and CEO
During the quarter, TDS Telecom expanded its marketable fiber service footprint by approximately 66,000 addresses and increased its fiber service address guidance for the year.
Walter Carlson, TDS President and CEO
Array delivered another quarter of sequential tower tenancy growth, highlighting the value of our assets.
Walter Carlson, TDS President and CEO
Not in the filing
stated, not guessed- Actual second-quarter revenue by TDS Telecom.
- Actual second-quarter revenue by Array.
- Actual second-quarter gross profit and gross margin.
- Actual second-quarter operating income or loss.
- Actual second-quarter GAAP and non-GAAP EBITDA and adjusted OIBDA for consolidated TDS.
- Actual second-quarter operating cash flow and free cash flow.
- Quarter-end cash, cash equivalents, debt and net debt.
- Share repurchases and regular dividend information.
- Actual second-quarter capital expenditures.
- Actual second-quarter tax rate.
- Prior-quarter comparisons for reported second-quarter metrics.
- Previous-release outlook for formal actual-versus-prior-guidance comparisons.
- TDS Telecom and Array actual second-quarter segment operating income, EBITDA and OIBDA.
- TDS Telecom and Array actual second-quarter capital expenditures.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.