| Business segment information |
Financial data from continuing operations for TDS’ reportable segments for the three and six months ended June 30, 2026 and 2025, is as follows: | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | TDS Telecom | Array | Total | | (Dollars in thousands) | | | | | Revenues from external customers | $ | 248,402 | | $ | 54,025 | | $ | 302,427 | | | Intersegment revenues | 4 | | 45 | | 49 | | | 248,406 | | 54,070 | | 302,476 | | | Reconciliation of revenue: | | | | All Other revenues1 | | | 6,854 | | | Elimination of intersegment revenues | | | (49) | | | Total operating revenues | | | $ | 309,281 | | | | | | Add back or deduct2: | | | | | Cost of operations (excluding Depreciation, amortization and accretion reported below) | (100,583) | | (23,497) | | | | Cost of equipment and products | (118) | | — | | | | Selling, general and administrative | (79,038) | | (22,906) | | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | — | | 7,391 | | | | Equity in earnings of unconsolidated entities | — | | 34,726 | | | | Interest and dividend income | 463 | | 6,431 | | | | Other segment items | 1,245 | | (13) | | | | Segment Adjusted EBITDA (Non-GAAP) | $ | 70,375 | | $ | 56,202 | | $ | 126,577 | | | | | | | Reconciliation of Segment Adjusted EBITDA to Income before income taxes: | | | | All Other income before income taxes1 | | | 1,282 | | | Short-term imputed spectrum lease income | | | 23,770 | | | Depreciation, amortization and accretion | | | (88,013) | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | | | (7,391) | | | | | | | Loss on asset disposals, net | | | (8,769) | | | | | | | Gain on license sales and exchanges, net | | | 411,433 | | | Interest expense | | | (11,192) | | | Income before income taxes | | | $ | 447,697 | |
| | | | | | | | | | | | | | | | | | | Other segment disclosures | | | | | | | Three Months Ended or as of June 30, 2026 | TDS Telecom | Array | Segment Total | All Other1 | TDS Consolidated Total | | Short-term imputed spectrum lease income | $ | — | | $ | 23,770 | | $ | 23,770 | | $ | — | | $ | 23,770 | | | Depreciation, amortization and accretion | (73,585) | | (14,428) | | (88,013) | | (764) | | (88,777) | | | | | | | | | Loss on asset disposals, net | (4,960) | | (3,809) | | (8,769) | | — | | (8,769) | | | | | | | | | Gain (loss) on license sales and exchanges, net | 1,600 | | 409,833 | | 411,433 | | (9,153) | | 402,280 | | | Interest expense | (332) | | (10,860) | | (11,192) | | (196) | | (11,388) | | | | | | | | | Investments in unconsolidated entities | 3,947 | | 421,607 | | 425,554 | | 49,523 | | 475,077 | | | Total assets | 3,133,568 | | 3,371,359 | | 6,504,927 | | 1,878,413 | | 8,383,340 | | | Capital expenditures from continuing operations | $ | 179,197 | | $ | 3,895 | | $ | 183,092 | | $ | 541 | | $ | 183,633 | |
| | | | | | | | | | | | | Three Months Ended June 30, 2025 | TDS Telecom | Array | Total | | (Dollars in thousands) | | | | | Revenues from external customers | $ | 264,142 | | $ | 28,529 | | $ | 292,671 | | | Intersegment revenues | 789 | | — | | 789 | | | 264,931 | | 28,529 | | 293,460 | | | Reconciliation of revenue: | | | | All Other revenues1 | | | 5,870 | | | Elimination of intersegment revenues | | | (789) | | | Total operating revenues | | | $ | 298,541 | | | | | | Add back or deduct2: | | | | | Cost of operations (excluding Depreciation, amortization and accretion reported below) | (97,049) | | (19,396) | | | | Cost of equipment and products | (116) | | — | | | | Selling, general and administrative | (82,555) | | (19,337) | | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | — | | 715 | | | | Equity in earnings of unconsolidated entities | — | | 41,714 | | | | Interest and dividend income | 1,693 | | 3,701 | | | | Other segment items | 1,633 | | — | | | | Segment Adjusted EBITDA (Non-GAAP) | $ | 88,537 | | $ | 35,926 | | $ | 124,463 | | | | | | | Reconciliation of Segment Adjusted EBITDA to Income before income taxes: | | | | All Other income (loss) before income taxes1 | | | (31,788) | | | Depreciation, amortization and accretion | | | (85,136) | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | | | (715) | | | | | | | Loss on asset disposals, net | | | (5,893) | | | Gain on sale of business and other exit costs, net | | | 8,104 | | | Gain on license sales and exchanges, net | | | 3,700 | | | Interest expense | | | (2,751) | | | Income before income taxes | | | $ | 9,984 | |
| | | | | | | | | | | | | | | | | | | Other segment disclosures | | | | | | | Three Months Ended or as of June 30, 2025 | TDS Telecom | Array | Segment Total | All Other1 | TDS Consolidated Total | | | | | | | | Depreciation, amortization and accretion | $ | (73,137) | | $ | (11,999) | | $ | (85,136) | | $ | (886) | | $ | (86,022) | | | | | | | | | Gain (loss) on asset disposals, net | (6,206) | | 313 | | (5,893) | | (13) | | (5,906) | | | Gain (loss) on sale of business and other exit costs, net | 8,104 | | — | | 8,104 | | (225) | | 7,879 | | | Gain on license sales and exchanges, net | — | | 3,700 | | 3,700 | | — | | 3,700 | | | Interest expense | 960 | | (3,711) | | (2,751) | | (26,415) | | (29,166) | | | | | | | | | Investments in unconsolidated entities | 3,942 | | 444,157 | | 448,099 | | 44,853 | | 492,952 | | | Total assets | 2,903,379 | | 5,024,778 | | 7,928,157 | | 245,856 | | 8,174,013 | | | Capital expenditures from continuing operations | $ | 90,187 | | $ | 4,211 | | $ | 94,398 | | $ | 190 | | $ | 94,588 | |
| | | | | | | | | | | | | Six Months Ended June 30, 2026 | TDS Telecom | Array | Total | | (Dollars in thousands) | | | | | Revenues from external customers | $ | 497,971 | | $ | 105,991 | | $ | 603,962 | | | Intersegment revenues | 7 | | 91 | | 98 | | | 497,978 | | 106,082 | | 604,060 | | | Reconciliation of revenue: | | | | All Other revenues1 | | | 14,769 | | | Elimination of intersegment revenues | | | (98) | | | Total operating revenues | | | $ | 618,731 | | | | | | Add back or deduct2: | | | | | Cost of operations (excluding Depreciation, amortization and accretion reported below) | (197,765) | | (45,106) | | | | Cost of equipment and products | (229) | | — | | | | Selling, general and administrative | (160,098) | | (35,651) | | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | 87 | | 7,578 | | | | Equity earnings of unconsolidated entities | — | | 75,135 | | | | Interest and dividend income | 1,608 | | 10,653 | | | | Other segment items | 2,633 | | (26) | | | | Segment Adjusted EBITDA (Non-GAAP) | $ | 144,214 | | $ | 118,665 | | $ | 262,879 | | | | | | | Reconciliation of Segment Adjusted EBITDA to Income before income taxes: | | | | All Other income before income taxes1 | | | 3,736 | | | Short-term spectrum lease income | | | 57,970 | | | Depreciation, amortization and accretion | | | (173,174) | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | | | (7,665) | | | | | | | Loss on asset disposals, net | | | (10,505) | | | Loss on sale of business and other exit costs, net | | | (1,562) | | | Gain on license sales and exchanges, net | | | 568,068 | | | Interest expense | | | (18,215) | | | Income before income taxes | | | $ | 681,532 | |
| | | | | | | | | | | | | | | | | | | Other segment disclosures | | | | | | | Six Months Ended June 30, 2026 | TDS Telecom | Array | Segment Total | All Other1 | TDS Consolidated Total | | Short-term imputed spectrum lease income | $ | — | | $ | 57,970 | | $ | 57,970 | | $ | — | | $ | 57,970 | | | Depreciation, amortization and accretion | (146,142) | | (27,032) | | (173,174) | | (1,546) | | (174,720) | | | | | | | | | Loss on asset disposals, net | (5,792) | | (4,713) | | (10,505) | | (74) | | (10,579) | | | Loss on sale of business and other exit costs, net | (1,562) | | — | | (1,562) | | — | | (1,562) | | | Gain on license sales and exchanges, net | 1,600 | | 566,468 | | 568,068 | | (14,910) | | 553,158 | | | Interest expense | (175) | | (18,040) | | (18,215) | | 1,506 | | (16,709) | | | | | | | | | | | | | | | | | | | | | Capital expenditures from continuing operations | $ | 305,160 | | $ | 12,541 | | $ | 317,701 | | $ | 2,161 | | $ | 319,862 | |
| | | | | | | | | | | | | Six Months Ended June 30, 2025 | TDS Telecom | Array | Total | | (Dollars in thousands) | | | | | Revenues from external customers | $ | 520,700 | | $ | 55,513 | | $ | 576,213 | | | Intersegment revenues | 1,591 | | — | | 1,591 | | | 522,291 | | 55,513 | | 577,804 | | | Reconciliation of revenue: | | | | All Other revenues1 | | | 12,761 | | | Elimination of intersegment revenues | | | (1,591) | | | Total operating revenues | | | $ | 588,974 | | | | | | Add back or deduct2: | | | | | Cost of operations (excluding Depreciation, amortization and accretion reported below) | (198,013) | | (35,687) | | | | Cost of equipment and products | (380) | | — | | | | Selling, general and administrative | (165,702) | | (48,537) | | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | — | | 1,860 | | | | Equity earnings of unconsolidated entities | — | | 77,641 | | | | Interest and dividend income | 3,094 | | 6,358 | | | | Other segment items | 3,571 | | — | | | | Segment Adjusted EBITDA (Non-GAAP) | $ | 164,861 | | $ | 57,148 | | $ | 222,009 | | | | | | | Reconciliation of Segment Adjusted EBITDA to Income before income taxes: | | | | All Other income (loss) before income taxes1 | | | (54,071) | | | | | | | Depreciation, amortization and accretion | | | (168,569) | | | Expenses related to strategic alternatives review (included in Selling, general and administrative) | | | (1,860) | | | | | | | Loss on asset disposals, net | | | (7,781) | | | Gain on sale of business and other exit costs, net | | | 8,080 | | | Gain on license sales and exchanges, net | | | 4,800 | | | Interest expense | | | (4,954) | | | Income (loss) before income taxes | | | $ | (2,346) | |
| | | | | | | | | | | | | | | | | | | | Other segment disclosures | | | | | | | | Six Months Ended June 30, 2025 | TDS Telecom | Array | Segment Total | | All Other1 | TDS Consolidated Total | | | | | | | | | Depreciation, amortization and accretion | $ | (144,577) | | $ | (23,992) | | $ | (168,569) | | | $ | (1,780) | | $ | (170,349) | | | | | | | | | | Gain (loss) on asset disposals, net | (7,868) | | 87 | | (7,781) | | | (14) | | (7,795) | | | Gain on sale of business and other exit costs, net | 8,080 | | — | | 8,080 | | | 797 | | 8,877 | | | Gain on license sales and exchanges, net | — | | 4,800 | | 4,800 | | | — | | 4,800 | | | Interest expense | 2,424 | | (7,378) | | (4,954) | | | (48,120) | | (53,074) | | | | | | | | | | | | | | | | | | | | | | | | Capital expenditures from continuing operations | $ | 149,056 | | $ | 9,051 | | $ | 158,107 | | | $ | 624 | | $ | 158,731 | |
1"All Other" represents TDS' non-reportable other business activities that do not meet the quantitative thresholds for being a reportable segment and includes cash balances under terms of the TDS cash management arrangement. 2The significant segment expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
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