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TELEPHONE & DATA SYSTEMS INC /DE/

For the period ended Mar 31, 2026. Filed May 8, 2026.

View on SEC.gov

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2026 · Filed May 8, 2026

TDS$32.77-3.2%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

See the whole filing, with its images and exhibits

Supplemental Information Relating to Non-GAAP Financial Measures

TDS sometimes uses information derived from consolidated financial information but not presented in its financial statements prepared in accordance with GAAP to evaluate the performance of its business. Specifically, TDS has referred to the following measures in this report:

EBITDA

Adjusted EBITDA

Adjusted OIBDA

Free cash flow

These measures are considered “non-GAAP financial measures” under U.S. Securities and Exchange Commission Rules. Following are explanations of each of these measures.

EBITDA, Adjusted EBITDA and Adjusted OIBDA

EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as Net income (loss) from continuing operations adjusted for the items set forth in the reconciliation below. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under GAAP and should not be considered as alternatives to Net income (loss) from continuing operations or Cash flows from operating activities - continuing operations, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation below are non-recurring, infrequent or unusual; such items may occur in the future.

Adjusted EBITDA is a segment measure reported to the chief operating decision maker for purposes of assessing the segments' performance. See Note 11 — Business Segment Information in the Notes to Consolidated Financial Statements for additional information.

Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to applicable GAAP income measures are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS’ operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented below as it provides additional relevant and useful information to investors and other users of TDS’ financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, expenses related to the strategic alternatives review and short-term imputed spectrum lease income, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) from continuing operations and/or Operating income (loss).

Three Months EndedMarch 31,
TDS - CONSOLIDATED20262025
(Dollars in thousands)
Net income (loss) from continuing operations (GAAP)$179,427$(4,207)
Add back:
Income tax expense (benefit)54,408(8,123)
Interest expense5,32123,909
Depreciation, amortization and accretion85,94384,329
EBITDA (Non-GAAP)325,09995,908
Add back or deduct:
Expenses related to strategic alternatives review1,1481,301
(Gain) loss on asset disposals, net1,8101,888
(Gain) loss on sale of business and other exit costs, net1,562(998)
(Gain) loss on license sales and exchanges, net(150,878)(1,100)
Short-term imputed spectrum lease income(34,200)—
Adjusted EBITDA (Non-GAAP)144,54196,999
Deduct:
Equity in earnings of unconsolidated entities41,90236,518
Interest and dividend income13,7866,270
Other, net5,4502,725
Adjusted OIBDA (Non-GAAP)83,40351,486
Deduct:
Depreciation, amortization and accretion85,94384,329
Expenses related to strategic alternatives review1,1481,301
(Gain) loss on asset disposals, net1,8101,888
(Gain) loss on sale of business and other exit costs, net1,562(998)
(Gain) loss on license sales and exchanges, net(150,878)(1,100)
Operating income (loss) (GAAP)$143,818$(33,934)
Three Months EndedMarch 31,
TDS TELECOM20262025
(Dollars in thousands)
Net income (GAAP)$1,047$3,527
Add back:
Income tax expense (benefit)(2,089)1,135
Interest expense(157)(1,465)
Depreciation, amortization and accretion72,55571,440
EBITDA (Non-GAAP)71,35674,637
Add back or deduct:
Expenses related to strategic alternatives review87—
(Gain) loss on asset disposals, net8331,662
(Gain) loss on sale of business and other exit costs, net1,56224
Adjusted EBITDA (Non-GAAP)73,83876,323
Deduct:
Interest and dividend income1,1451,401
Other, net1,3881,937
Adjusted OIBDA (Non-GAAP)71,30572,985
Deduct:
Depreciation, amortization and accretion72,55571,440
Expenses related to strategic alternatives review87—
(Gain) loss on asset disposals, net8331,662
(Gain) loss on sale of business and other exit costs, net1,56224
Operating income (loss) (GAAP)$(3,732)$(141)
Three Months EndedMarch 31,
ARRAY20262025
(Dollars in thousands)
Net income from continuing operations (GAAP)$180,024$5,483
Add back:
Income tax expense (benefit)52,398(192)
Interest expense7,1803,667
Depreciation and accretion12,60411,993
EBITDA (Non-GAAP)252,20620,951
Add back or deduct:
Expenses related to strategic alternatives review1871,145
(Gain) loss on asset disposals, net904226
(Gain) loss on license sales and exchanges, net(156,635)(1,100)
Short-term imputed spectrum lease income(34,200)—
Adjusted EBITDA (Non-GAAP)62,46221,222
Deduct:
Equity in earnings of unconsolidated entities40,40835,927
Interest and dividend income4,2232,658
Other, net(14)—
Adjusted OIBDA (Non-GAAP)17,845(17,363)
Deduct:
Depreciation and accretion12,60411,993
Expenses related to strategic alternatives review1871,145
(Gain) loss on asset disposals, net904226
(Gain) loss on license sales and exchanges, net(156,635)(1,100)
Operating income (loss) (GAAP)$160,785$(29,627)

Free Cash Flow

The following table presents Free cash flow from continuing operations, which is defined as Cash flows from operating activities less Cash paid for additions to property, plant and equipment and Cash paid for software license agreements. Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by continuing business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements.

Three Months EndedMarch 31,
TDS - CONSOLIDATED20262025
(Dollars in thousands)
Cash flows from operating activities - continuing operations (GAAP)$68,094$(42,460)
Cash paid for additions to property, plant and equipment(149,041)(64,391)
Cash paid for software license agreements(166)(839)
Free cash flow - continuing operations (Non-GAAP)$(81,113)$(107,690)
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