v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Note 3 Revenue Recognition
Disaggregation of Revenue
In the following table, TDS' revenues are disaggregated by type of service, which represents the relevant categorization of revenues for TDS' reportable segments, and timing of recognition. Service revenues are recognized over time and Equipment and product sales are recognized at a point in time.
Three Months Ended June 30, 2026TDS TelecomArrayAll OtherTotal
(Dollars in thousands)
Revenues from contracts with customers:
Type of service:
Residential$177,764 $— $— $177,764 
Commercial32,776 — — 32,776 
Wholesale37,006 — — 37,006 
Other service— 895 (24)871 
Service revenues from contracts with customers247,546 895 (24)248,417 
Equipment and product sales49 — 6,878 6,927 
Total revenues from contracts with customers247,595 895 6,854 255,344 
Operating lease income811 53,175 (49)53,937 
Total operating revenues$248,406 $54,070 $6,805 $309,281 
Three Months Ended June 30, 2025TDS TelecomArrayAll OtherTotal
(Dollars in thousands)
Revenues from contracts with customers:
Type of service:
Residential$183,419 $— $— $183,419 
Commercial34,617 — — 34,617 
Wholesale45,960 — — 45,960 
Other service— 1,299 (816)483 
Service revenues from contracts with customers263,996 1,299 (816)264,479 
Equipment and product sales191 — 5,992 6,183 
Total revenues from contracts with customers264,187 1,299 5,176 270,662 
Operating lease income744 27,230 (95)27,879 
Total operating revenues$264,931 $28,529 $5,081 $298,541 
Six Months Ended June 30, 2026TDS TelecomArrayAll OtherTotal
(Dollars in thousands)
Revenues from contracts with customers:
Type of service:
Residential$356,360 $— $— $356,360 
Commercial65,571 — — 65,571 
Wholesale74,380 — — 74,380 
Other service— 1,883 (50)1,833 
Service revenues from contracts with customers496,311 1,883 (50)498,144 
Equipment and product sales113 — 14,819 14,932 
Total revenues from contracts with customers496,424 1,883 14,769 513,076 
Operating lease income1,554 104,199 (98)105,655 
Total operating revenues$497,978 $106,082 $14,671 $618,731 
Six Months Ended June 30, 2025TDS TelecomArrayAll OtherTotal
(Dollars in thousands)
Revenues from contracts with customers:
Type of service:
Residential$367,267 $— $— $367,267 
Commercial69,251 — — 69,251 
Wholesale83,882 — — 83,882 
Other service— 1,688 (1,644)44 
Service revenues from contracts with customers520,400 1,688 (1,644)520,444 
Equipment and product sales392 — 13,013 13,405 
Total revenues from contracts with customers520,792 1,688 11,369 533,849 
Operating lease income1,499 53,825 (199)55,125 
Total operating revenues$522,291 $55,513 $11,170 $588,974 

The following table provides balances for contract assets from contracts with customers, which are recorded in Other current assets and Other assets and deferred charges in the Consolidated Balance Sheet, and contract liabilities from contracts with customers, which are recorded in Customer deposits and deferred revenues and Other deferred liabilities and credits in the Consolidated Balance Sheet.
June 30, 2026December 31, 2025
(Dollars in thousands)
Contract assets$11,152 $3,508 
Contract liabilities$50,749 $39,936 
Revenue recognized related to contract liabilities existing at January 1, 2026 was $36.1 million for the six months ended June 30, 2026.
Transaction price allocated to the remaining performance obligations
TDS Telecom provides residential internet, video, mobile, and voice services primarily through monthly subscription arrangements. Each subscription period is treated as a distinct performance obligation, with revenue recognized on a straight-line basis over the service period as the services are delivered. Customers are typically billed in advance and may cancel their subscriptions at the end of any monthly term without incurring penalties.
In addition, as of June 30, 2026, TDS Telecom expects to recognize approximately $70.2 million of revenue in the future related to performance obligations associated with existing circuit contracts that are partially or wholly unsatisfied. As of June 30, 2026, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the remainder of 2026, 2027 and thereafter was $16.3 million, $25.5 million, and $28.4 million, respectively.
Contract Cost Assets
TDS Telecom expects that commission fees paid as a result of obtaining contracts are recoverable, and therefore TDS defers and amortizes these costs. As a practical expedient, costs with an amortization period of one year or less are expensed as incurred. TDS also incurs fulfillment costs, such as installation costs, where there is an expectation that a future benefit will be realized. Deferred commission fees and fulfillment costs are amortized based on the timing of transfer of the goods or services to which the assets relate, typically the contract term. Contract cost asset balances, which are recorded in Other assets and deferred charges in the Consolidated Balance Sheet, were as follows:
June 30, 2026December 31, 2025
(Dollars in thousands)
Costs to obtain contracts
Sales commissions$18,498 $14,770 
Fulfillment costs
Installation costs1,769 1,872 
Total contract cost assets$20,267 $16,642 
Amortization of contract cost assets was $2.4 million and $4.8 million for the three and six months ended June 30, 2026, respectively and $2.6 million and $5.1 million for the three and six months ended June 30, 2025, respectively, and was included in Selling, general and administrative expenses and Cost of operations expenses.