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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TDS Telecom Operations
Business Overview
TDS Telecom owns, operates and invests in high-quality networks, services and products in a mix of small to mid-sized urban, suburban and rural communities throughout the United States. TDS Telecom is a wholly-owned subsidiary of TDS and provides a wide range of broadband, video, voice and wireless communications services to residential, commercial and wholesale customers, with a constant focus on delivering outstanding customer service.
OPERATIONS
Serves 1.1 million connections in 30 states
Employs approximately 3,600 associates
Operational Overview — TDS Telecom
Total Service Address Mix
As of March 31,
TDS Telecom increased its service addresses 5% from a year ago to 1.9 million as of March 31, 2026 through footprint expansion. TDS Telecom serves 50% of incumbent service addresses with fiber.
TDS Telecom offers 1Gig+ service to 79% of its total footprint as of March 31, 2026, compared to 74% a year ago.
| As of or for the Quarter Ended March 31, · 2026 · 2025 · 2026 vs. 2025 | ||||
|---|---|---|---|---|
| Residential connections | ||||
| Broadband | ||||
| Incumbent Fiber | 130,200 | 119,700 | 9% | |
| Incumbent Copper | 84,200 | 112,600 | (25)% | |
| Expansion Fiber | 168,500 | 133,200 | 26% | |
| Cable | 179,100 | 190,200 | (6)% | |
| Total Broadband | 561,900 | 555,800 | 1% | |
| Video | 107,200 | 118,700 | (10)% | |
| Voice | 216,900 | 256,900 | (16)% | |
| Wireless | 5,300 | 900 | N/M | |
| Total Residential Connections | 891,400 | 932,300 | (4)% | |
| Commercial connections | 166,500 | 187,600 | (11)% | |
| Total connections | 1,058,000 | 1,119,900 | (6)% | |
| Total residential fiber net adds | 10,900 | 8,300 | ||
| Total residential broadband net adds | 100 | 2,800 | ||
| Residential fiber churn | 1.3% | 0.9% | ||
| Total residential broadband churn | 1.8% | 1.3% | ||
N/M - Percentage change not meaningful
Numbers may not foot due to rounding.
Total connections decreased due to legacy voice, video, and competitive local exchange carrier (CLEC) connection declines, partially offset by broadband and wireless connection growth.
Divestitures in 2025 resulted in a decrease of 19,000 connections, including 7,500 residential broadband connections.
Residential Broadband Connections by Speed
As of March 31,
Residential broadband customers continue to take higher speeds with 87% on 100 Mbps or higher products and 47% on 1Gig+ products.
Residential Revenue per Connection
Total residential revenue per connection increased by 1% for the three months ended March 31, 2026, due primarily to price increases, partially offset by customer product mix.
Financial Overview — TDS Telecom
| Three Months EndedMarch 31, | |||
|---|---|---|---|
| 2026 | 2025 | 2026 vs. 2025 | |
| (Dollars in thousands) | |||
| Residential | |||
| Incumbent | $77,292 | $85,594 | (10)% |
| Expansion | 43,562 | 34,406 | 27% |
| Cable | 57,742 | 63,847 | (10)% |
| Total residential | 178,596 | 183,847 | (3)% |
| Commercial | 32,795 | 34,634 | (5)% |
| Wholesale | 38,117 | 38,677 | (1)% |
| Total service revenues | 249,508 | 257,158 | (3)% |
| Equipment revenues | 64 | 202 | (68)% |
| Total operating revenues | 249,572 | 257,360 | (3)% |
| Cost of operations (excluding Depreciation, amortization and accretion reported below) | 97,182 | 100,964 | (4)% |
| Cost of equipment and products | 111 | 263 | (58)% |
| Selling, general and administrative | 81,061 | 83,148 | (3)% |
| Depreciation, amortization and accretion | 72,555 | 71,440 | 2% |
| (Gain) loss on asset disposals, net | 833 | 1,662 | (50)% |
| (Gain) loss on sale of business and other exit costs, net | 1,562 | 24 | N/M |
| Total operating expenses | 253,304 | 257,501 | (2)% |
| Operating income (loss) | $(3,732) | $(141) | N/M |
| Net income | $1,047 | $3,527 | (70)% |
| Adjusted OIBDA (Non-GAAP)1 | $71,305 | $72,985 | (2)% |
| Adjusted EBITDA (Non-GAAP)1 | $73,838 | $76,323 | (3)% |
| Capital expenditures2 | $125,963 | $58,870 | N/M |
N/M - Percentage change not meaningful.
1 Refer to Supplemental Information Relating to Non-GAAP Financial Measures within this MD&A for a reconciliation of this measure.
2 Refer to Liquidity and Capital Resources within this MD&A for additional information on Capital expenditures.
Operating Revenues
Three Months Ended March 31, 2026 and 2025
Residential revenues consist of:
Broadband services
Video services, including IPTV, traditional cable programming and satellite offerings
Voice services
Wireless services
Commercial revenues consist of:
High-speed and dedicated business internet services
Video services
Voice services
Wholesale revenues consist of:
Network access services primarily related to interexchange and wireless carriers for carrying data and voice traffic on TDS Telecom's networks
Federal and state regulatory support, including E-ACAM
Key components of changes in the statement of operations items were as follows:
Total operating revenues
Residential revenues decreased for the three months ended March 31, 2026, due primarily to divestitures and declines in legacy markets, partially offset by growth in expansion markets and price increases.
Commercial revenues decreased for the three months ended March 31, 2026, due primarily to declining connections in legacy markets and divestitures.
Wholesale revenues decreased for the three months ended March 31, 2026, due primarily to divestitures and the continued decline of special access circuits, partially offset by discrete reserve adjustments.
Total operating revenues decreased for the three months ended March 31, 2026 by $5.9 million due to the 2025 divestitures.
Cost of operations
Cost of operations decreased for the three months ended March 31, 2026, due primarily to a decrease in employee-related costs, lower video programming costs, and lower circuit costs, partially offset by higher plant costs.
Selling, general and administrative
Selling, general and administrative expenses decreased for the three months ended March 31, 2026, due primarily to a decrease in employee-related costs, lower IT application costs, and lower regulatory fees, partially offset by higher bad debts expense.
Depreciation, amortization and accretion
Depreciation, amortization and accretion increased for the three months ended March 31, 2026, due primarily to capital expenditures on fiber assets.
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