TELEPHONE & DATA SYSTEMS INC /DE/
For the period ended Mar 31, 2026. Filed May 8, 2026.
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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
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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 - CONSOLIDATED | 2026 | 2025 |
| (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 expense | 5,321 | 23,909 |
| Depreciation, amortization and accretion | 85,943 | 84,329 |
| EBITDA (Non-GAAP) | 325,099 | 95,908 |
| Add back or deduct: | ||
| Expenses related to strategic alternatives review | 1,148 | 1,301 |
| (Gain) loss on asset disposals, net | 1,810 | 1,888 |
| (Gain) loss on sale of business and other exit costs, net | 1,562 | (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) | 144,541 | 96,999 |
| Deduct: | ||
| Equity in earnings of unconsolidated entities | 41,902 | 36,518 |
| Interest and dividend income | 13,786 | 6,270 |
| Other, net | 5,450 | 2,725 |
| Adjusted OIBDA (Non-GAAP) | 83,403 | 51,486 |
| Deduct: | ||
| Depreciation, amortization and accretion | 85,943 | 84,329 |
| Expenses related to strategic alternatives review | 1,148 | 1,301 |
| (Gain) loss on asset disposals, net | 1,810 | 1,888 |
| (Gain) loss on sale of business and other exit costs, net | 1,562 | (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 TELECOM | 2026 | 2025 |
| (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 accretion | 72,555 | 71,440 |
| EBITDA (Non-GAAP) | 71,356 | 74,637 |
| Add back or deduct: | ||
| Expenses related to strategic alternatives review | 87 | — |
| (Gain) loss on asset disposals, net | 833 | 1,662 |
| (Gain) loss on sale of business and other exit costs, net | 1,562 | 24 |
| Adjusted EBITDA (Non-GAAP) | 73,838 | 76,323 |
| Deduct: | ||
| Interest and dividend income | 1,145 | 1,401 |
| Other, net | 1,388 | 1,937 |
| Adjusted OIBDA (Non-GAAP) | 71,305 | 72,985 |
| Deduct: | ||
| Depreciation, amortization and accretion | 72,555 | 71,440 |
| Expenses related to strategic alternatives review | 87 | — |
| (Gain) loss on asset disposals, net | 833 | 1,662 |
| (Gain) loss on sale of business and other exit costs, net | 1,562 | 24 |
| Operating income (loss) (GAAP) | $(3,732) | $(141) |
| Three Months EndedMarch 31, | ||
|---|---|---|
| ARRAY | 2026 | 2025 |
| (Dollars in thousands) | ||
| Net income from continuing operations (GAAP) | $180,024 | $5,483 |
| Add back: | ||
| Income tax expense (benefit) | 52,398 | (192) |
| Interest expense | 7,180 | 3,667 |
| Depreciation and accretion | 12,604 | 11,993 |
| EBITDA (Non-GAAP) | 252,206 | 20,951 |
| Add back or deduct: | ||
| Expenses related to strategic alternatives review | 187 | 1,145 |
| (Gain) loss on asset disposals, net | 904 | 226 |
| (Gain) loss on license sales and exchanges, net | (156,635) | (1,100) |
| Short-term imputed spectrum lease income | (34,200) | — |
| Adjusted EBITDA (Non-GAAP) | 62,462 | 21,222 |
| Deduct: | ||
| Equity in earnings of unconsolidated entities | 40,408 | 35,927 |
| Interest and dividend income | 4,223 | 2,658 |
| Other, net | (14) | — |
| Adjusted OIBDA (Non-GAAP) | 17,845 | (17,363) |
| Deduct: | ||
| Depreciation and accretion | 12,604 | 11,993 |
| Expenses related to strategic alternatives review | 187 | 1,145 |
| (Gain) loss on asset disposals, net | 904 | 226 |
| (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 - CONSOLIDATED | 2026 | 2025 |
| (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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