TELEPHONE & DATA SYSTEMS INC /DE/
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout 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.
Jun 30, 2026 · Filed Aug 7, 2026
TDS$32.87+1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001051512-26-000045
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewTerms Used by TDSResults of Operations – TDS ConsolidatedTDS Telecom OperationsArray OperationsLiquidity and Capital ResourcesConsolidated Cash Flow AnalysisConsolidated Balance Sheet AnalysisSupplemental Information Relating to Non-GAAP Financial MeasuresApplication of Critical Accounting Policies and EstimatesPrivate Securities Litigation Reform Act of 1995 Safe Harbor Cautionary StatementCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001051512-26-000063
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsExecutive OverviewTerms Used by TDSResults of Operations – TDS ConsolidatedTDS Telecom OperationsArray OperationsLiquidity and Capital ResourcesConsolidated Cash Flow AnalysisConsolidated Balance Sheet AnalysisSupplemental Information Relating to Non-GAAP Financial MeasuresApplication of Critical Accounting Policies and EstimatesPrivate Securities Litigation Reform Act of 1995 Safe Harbor Cautionary StatementThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 264 previous paragraphs and 273 current paragraphs.
186 unchanged; 62 reworded; 23 added; 16 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Net income increased due primarily to gains on the sale of wireless spectrum licenses, short-term imputed spectrum lease income, lower interest expense and higher interest and dividend income, partially offset by higher income tax expense.
Current report
Adjusted EBITDA increased due primarily to higher interest and dividend income and higher operating revenues, partially offset by lower equity in earnings of unconsolidated entities.
Current report
Total connections decreased due to declines in legacy voice and video products, as well as broadband connections in copper and cable markets, partially offset by growth in fiber markets and wireless connections.
Current report
The 2025 divestitures contributed a decrease of $5.3 million in operating revenues from the comparable three months ended June 30, 2025 and a decrease of $11.2 million in operating revenues from the comparable six months ended June 30, 2025.
Current report
Selling, general and administrative expenses decreased for the three months ended June 30, 2026, due primarily to decreases in regulatory fees and employee-related costs.
Current report
Selling, general and administrative expenses decreased for the six months ended June 30, 2026, due primarily to decreases in regulatory fees, employee-related costs, and IT application costs, partially offset by higher bad debt expense and professional service costs.
Current report
Losses on asset disposals decreased for the three and six months ended June 30, 2026 due primarily to the write-off of cancelled projects in 2025.
Current report
Gains on sale of business decreased for the three and six months ended June 30, 2026 due to the divestitures of certain markets in 2025.
Current report
Selling, general and administrative expenses increased for the three months ended June 30, 2026 due primarily to an increase in strategic alternatives review expenses, partially offset by a decrease in shared overhead costs and a change in the classification of property tax and property insurance following the sale of the wireless business.
Current report
(Gain) loss on asset disposals, net increased for the three and six months ended June 30, 2026 due primarily to the disposal of assets no longer required to maintain certain spectrum licenses.
Current report
Array's capital expenditures for the six months ended June 30, 2026 and 2025, were $12.5 million and $9.1 million, respectively.
Current report
See Note 6 — Acquisitions and Divestitures in the Notes to Consolidated Financial Statements for additional information related to acquisitions and divestitures.
Current report
Deferred income tax liability, net decreased $142.7 million due primarily to reversals of temporary differences related to prior amortization of wireless spectrum licenses, triggered by the sale of wireless spectrum licenses to AT&T, Verizon and T-Mobile during 2026.
Removed paragraphs (16)
Previous report
On January 13, 2026, Array closed on the sale of certain 3.45 GHz and 700 MHz wireless spectrum licenses to AT&T for total proceeds of$1,018.0 million and TDS recorded a book gain on the transaction of $150.9 million ($114.7 million net of tax expense) during the first quarter of 2026. The book gain recorded at TDS is lower than the book gain recorded at Array due primarily to transaction costs paid by TDS.
Previous report
3 This license transaction received regulatory approval and is expected to close in May 2026, subject to customary closing conditions.
Previous report
Total connections decreased due to legacy voice, video, and competitive local exchange carrier (CLEC) connection declines, partially offset by broadband and wireless connection growth.
Previous report
Total operating revenues decreased for the three months ended March 31, 2026 by $5.9 million due to the 2025 divestitures.
Previous report
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.
Previous report
Depreciation, amortization and accretion increased for the three months ended March 31, 2026, due primarily to capital expenditures on fiber assets.
Previous report
Services revenues increased for the three months ended March 31, 2026 due primarily to an increase in application and related fees as a result of Array fully insourcing sales and leasing operations in March 2025.
Previous report
Array's capital expenditures for the three months ended March 31, 2026 and 2025, were $8.6 million and $4.8 million, respectively.
Previous report
See Note 6 — Divestitures in the Notes to Consolidated Financial Statements for additional information related to divestitures.
Previous report
Accounts payable decreased $18.8 million due to the timing of vendor payments and reduced capital expenditures.
Reworded paragraphs (62)
Previous wording
The following discussion and analysis compares Telephone and Data Systems, Inc.’s (TDS) financial results for the three months ended March 31, 2026, to the three months ended March 31, 2025. It should be read in conjunction with TDS’ interim consolidated financial statements and notes included herein, and with the description of TDS’ business, its audited consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) included in TDS’ Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2025. Certain numbers included herein are rounded to thousands or millions for ease of presentation; however, certain calculated amounts and percentages are determined using the unrounded numbers.
Current wording
The following discussion and analysis compares Telephone and Data Systems, Inc.’s (TDS) financial results for the three and six months ended June 30, 2026, to the three and six months ended June 30, 2025. It should be read in conjunction with TDS’ interim consolidated financial statements and notes included herein, and with the description of TDS’ business, its audited consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) included in TDS’ Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2025. Certain numbers included herein are rounded to thousands or millions for ease of presentation; however, certain calculated amounts and percentages are determined using the unrounded numbers.
Previous wording
▪TDS Telecom seeks to drive growth by investing in fiber deployment and grow its operations by creating clusters of markets in attractive, growing locations and may seek to acquire and/or divest of assets to support its strategy.
Current wording
▪TDS Telecom seeks to drive growth by investing in fiber deployment and growing its operations by creating clusters of markets in attractive, growing locations and may seek to acquire and/or divest of assets to support its strategy.
Previous wording
On August 1, 2025, Array sold its wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile) under a Securities Purchase Agreement (Securities Purchase Agreement). Total consideration received was $4,293.8 million after adjustments which included a combination of $2,628.8 million in cash proceeds and $1,665.0 million in debt assumed by T-Mobile through the preliminary results of an exchange offer made to Array's debtholders, which subsequently closed on August 5, 2025. The final cash proceeds are subject to adjustment according to the terms and conditions of the Securities Purchase Agreement. As of March 31, 2026, Array recorded an estimated purchase price true-up due to T-Mobile of $20.2 million. At closing, a $16.7 million deferral of the purchase price was recorded related to certain spectrum licenses included in the transaction that did not transfer to T-Mobile and are subject to FCC approval. In addition, at closing, Array and T-Mobile entered into a Short-Term Spectrum Manager Lease Agreement and Short-Term Spectrum Manager Sublease Agreements which provide T-Mobile with an exclusive license to use certain Array spectrum assets and leases at no cost for up to one year from closing for the sole purpose of providing continued, uninterrupted service to customers. Further, at closing, Array and T-Mobile entered into a Master License Agreement (MLA), pursuant to which, among other things, T-Mobile has agreed to license from Array space on towers owned by Array. The wireless operations and select spectrum assets sold to T-Mobile are presented as discontinued operations throughout this report. See Note 2 — Discontinued Operations in the Notes to Consolidated Financial Statements for additional information.
Current wording
On August 1, 2025, Array sold its wireless operations and select spectrum assets to T-Mobile US, Inc. (T-Mobile) under a Securities Purchase Agreement (Securities Purchase Agreement). Total consideration received was $4,293.8 million after adjustments which included a combination of $2,628.8 million in cash proceeds and $1,665.0 million in debt assumed by T-Mobile through an exchange offer made to Array's debtholders. The final cash proceeds are subject to adjustment according to the terms and conditions of the Securities Purchase Agreement. As of June 30, 2026, Array recorded an estimated purchase price true-up payable to T-Mobile of $24.9 million. The wireless operations and select spectrum assets sold to T-Mobile are presented as discontinued operations throughout this report. See Note 2 — Discontinued Operations in the Notes to Consolidated Financial Statements for additional information.
Previous wording
In addition to the sale of Array's wireless operations and select spectrum assets to T-Mobile pursuant to the Securities Purchase Agreement and the sale of certain spectrum assets to AT&T pursuant to a License Purchase Agreement, Array also separately entered into the following material agreements to sell spectrum assets.
Current wording
In addition to the sale of Array's wireless operations and select spectrum assets to T-Mobile pursuant to the Securities Purchase Agreement, Array also separately entered into the following material agreements to sell spectrum assets.
Previous wording
2 This license transaction involves multiple closing dates. The first group of spectrum licenses received regulatory approval and closed on May 5, 2026. The additional spectrum licenses remain subject to regulatory approval and other customary closing conditions.
Current wording
1 This license transaction involves multiple closing dates. The first group of spectrum licenses received regulatory approval and closed on May 5, 2026. The additional spectrum licenses remain subject to regulatory approval and other customary closing conditions.
Previous wording
1 This license transaction remains subject to regulatory approval and other customary closing conditions.
Current wording
2 This license transaction remains subject to regulatory approval and other customary closing conditions.
Previous wording
See Note 6 — Divestitures and Note 12 — Subsequent Events in the Notes to Consolidated Financial Statements for additional information related to the spectrum license transactions.
Current wording
See Note 6 — Acquisitions and Divestitures in the Notes to Consolidated Financial Statements for additional information related to the spectrum license transactions.
Previous wording
The strategic alternatives review process is ongoing as Array works toward closing the Verizon and T-Mobile spectrum transactions signed during 2024 and 2025, and seeks to opportunistically monetize its remaining spectrum assets that are not subject to executed agreements.
Current wording
The strategic alternatives review process is ongoing as Array works toward closing the remaining T-Mobile spectrum transactions signed during 2025 and 2026. Array also continues to seek to opportunistically monetize its remaining spectrum assets that are not subject to executed agreements.
Previous wording
In addition to the transactions at Array and the Array Proposal, TDS continues to explore opportunities to transform its business operations given the change in scale of the overall TDS organization following the divestiture of the wireless operations. Together, these initiatives are referred to as the strategic alternatives review throughout this report.
Current wording
In addition to the spectrum transactions at Array and the Array Proposal, TDS continues to explore opportunities to transform its business operations given the change in scale of the overall TDS organization following the divestiture of the wireless operations. Together, these initiatives are referred to as the strategic alternatives review throughout this report. TDS incurred third-party expenses related to the strategic alternatives review of$8.6 million and$9.8 million for thethree and six months ended June 30, 2026, respectively, and$0.8 million and $2.1 millionfor thethree and six months ended June 30, 2025, respectively, which are included in Selling, general and administrative expenses for continuing operations and excluded from Adjusted OIBDA and Adjusted EBITDA non-GAAP financial measures.
Previous wording
Interest expense decreased for thethree months ended March 31, 2026 due primarily to the repayment of TDS debt facilities in August 2025 and January 2026, partially offset by the new term loan that Array entered into in August 2025 and a decrease in capitalized interest. Interest expense from continuing operations excludes interest costs in all periods associated with Array term loans repaid, and Array debt exchanged, in conjunction with the sale of Array's wireless operations to T-Mobile. See Market Risk for additional information regarding maturities of long-term debt and weighted average interest rates.
Current wording
Interest expense decreased for thethree and six months ended June 30, 2026 due primarily to the repayment of TDS debt facilities in August 2025 and January 2026, partially offset by the new term loan that Array entered into in August 2025 and a decrease in capitalized interest. Interest expense from continuing operations excludes interest costs in all periods associated with Array term loans repaid, and Array debt exchanged, in conjunction with the sale of Array's wireless operations to T-Mobile. See Market Risk for additional information regarding maturities of long-term debt and weighted average interest rates.
Previous wording
Income tax expense on continuing operations increased for the three months ended March 31, 2026, due primarily to the increase in Income before income taxes.
Current wording
Income tax expense on continuing operations increased for the three and six months ended June 30, 2026, due primarily to the increase in Income before income taxes that resulted from the gains on license sales in the current period.
Previous wording
Net income (loss) from discontinued operations attributable to TDS shareholders
Current wording
Net income from discontinued operations attributable to TDS shareholders
Previous wording
See Note 2 —Discontinued Operationsin the Notes to Consolidated Financial Statements for additional information related to the components of Net income (loss) from discontinued operations.
Current wording
See Note 2 —Discontinued Operationsin the Notes to Consolidated Financial Statements for additional information related to the components of Net income from discontinued operations.
Previous wording
Net income increased due primarily to higher operating revenues, lower operating expenses, short-term imputed spectrum lease income and lower interest expense, partially offset by higher income tax expense.
Current wording
Net income increased due primarily to gains on the sale of wireless spectrum licenses, short-term imputed spectrum lease income, lower interest expense, higher operating revenues and higher interest and dividend income, partially offset by higher income tax expense.
Previous wording
Adjusted EBITDA increased due primarily to higher operating revenues and lower operating expenses.
Current wording
Adjusted EBITDA increased due primarily to higher operating revenues, higher interest and dividend income and lower operating expenses.
Previous wording
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.
Current wording
TDS Telecom increased its service addresses 7% from a year ago to 1.9 million as of June 30, 2026 through footprint expansion. TDS Telecom serves 52% of incumbent service addresses with fiber.
Previous wording
TDS Telecom offers 1Gig+ service to 79% of its total footprint as of March 31, 2026, compared to 74% a year ago.
Current wording
TDS Telecom offers 1Gig+ service to 80% of its total footprint as of June 30, 2026, compared to 75% a year ago.
Previous wording
Divestitures in 2025 resulted in a decrease of 19,000 connections, including 7,500 residential broadband connections.
Current wording
Divestitures in 2025 resulted in a decrease of 12,900 connections, including 5,300 residential broadband connections.
Previous wording
Residential broadband customers continue to take higher speeds with 87% on 100 Mbps or higher products and 47% on 1Gig+ products.
Current wording
Residential broadband customers continue to take higher speeds with 89% on 100 Mbps or higher products and 51% on 1Gig+ products.
Previous wording
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.
Current wording
Total residential revenue per connection increased by 1% for the three and six months ended June 30, 2026, due primarily to price increases, partially offset by promotional activity and customer product mix.
Previous wording
•Video services, including IPTV, traditional cable programming and satellite offerings
Current wording
•Video services, including cloud-based video services, IPTV, traditional cable programming and satellite offerings
Previous wording
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.
Current wording
Residential revenues decreased for the three and six months ended June 30, 2026, due primarily to declines in legacy markets and divestitures, partially offset by growth in expansion markets and price increases.
Previous wording
Commercial revenues decreased for the three months ended March 31, 2026, due primarily to declining connections in legacy markets and divestitures.
Current wording
Commercial revenues decreased for the three and six months ended June 30, 2026, due primarily to declining connections in legacy markets and divestitures.
Previous wording
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.
Current wording
Wholesale revenues decreased for the three and six months ended June 30, 2026, due primarily to divestitures, the continued decline of special access circuits and discrete reserve adjustments in the prior year.
Previous wording
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.
Current wording
Cost of operations increased for the three months ended June 30, 2026, due primarily to increased vehicle and plant costs, partially offset by lower video programming and employee-related costs.
Previous wording
Array seeks to grow tower revenue primarily through increasing colocations on existing towers and amendments to existing colocations. Array seeks to provide unique tower locations, attractive terms and streamlined implementation to wireless network operators, internet service providers, government and public safety agencies, broadcast and media companies, and other businesses. As of March 31, 2026, Array owns 4,452 towers in 19 states.
Current wording
Array seeks to grow tower revenue primarily through increasing colocations on existing towers and amendments to existing colocations. Array seeks to provide unique tower locations, attractive terms and streamlined implementation to wireless network operators, internet service providers, government and public safety agencies, broadcast and media companies, and other businesses. As of June 30, 2026, Array owns 4,456 towers in 19 states.
Previous wording
Array holds wireless spectrum that is subject to sale agreements described above, and additional wireless spectrum not subject to pending sale agreements that Array seeks to opportunistically monetize. As of March 31, 2026, the book value of the remaining spectrum not subject to pending sale agreements was $1,584.7 million and includes primarily C-Band spectrum. Array incurred costs related to the management of the retained spectrum of $1.9 million as a standalone tower company during the three months ended March 31, 2026.
Current wording
Array holds wireless spectrum that is subject to sale agreements described above, and additional wireless spectrum not subject to pending sale agreements that Array seeks to opportunistically monetize. As of June 30, 2026, the book value of the remaining spectrum not subject to pending sale agreements was $1,584.7 million and includes primarily C-Band spectrum. Array incurred costs related to the management of the retained spectrum of $2.1 million and $4.0 million as a standalone tower company during the three and six months ended June 30, 2026.
Previous wording
1 Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless due to the low probability of collection on outstanding amounts. See Financial Overview within this MD&A for additional information.
Current wording
1 Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. As of June 30, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless due to the low probability of fulfilling its lease commitments. See Financial Overview within this MD&A for additional information.
Previous wording
Site rental revenues increased for the three months ended March 31, 2026, primarily as a result of the execution of the T-Mobile MLA, pursuant to which T-Mobile leases space on an additional minimum 2,015 Array-owned towers, which were not under existing leases for T-Mobile, for a minimum of 15 years and leases space on approximately 1,800 Array-owned towers on an interim basis. The duration of the interim lease is 30 months, and T-Mobile may cancel such interim leases at their option on a tower-by-tower basis at any time. Array expects revenue will decline in future periods as T-Mobile terminates these interim leases. Further, the MLA extended the license term for approximately 600 existing T-Mobile colocations on Array towers for a new 15-year term that commenced on August 1, 2025.
Current wording
Site rental revenues increased for the three and six months ended June 30, 2026, primarily as a result of the execution of the T-Mobile MLA, pursuant to which T-Mobile leases space on an additional minimum 2,015 Array-owned towers, which were not under existing leases for T-Mobile, for a minimum of 15 years and leases space on approximately 1,800 Array-owned towers on an interim basis. The duration of the interim lease is 30 months, and T-Mobile may cancel such interim leases at their option on a tower-by-tower basis at any time. Array expects interim lease revenue, which was $6.7 million and $14.9 million for the three and six months ended June 30, 2026, respectively, to continue to decline in future periods as T-Mobile terminates these interim leases over the course of the 30-month integration period, which ends January 2028. Further, the MLA extended the license term for approximately 600 existing T-Mobile colocations on Array towers for a new 15-year term that commenced on August 1, 2025.
Previous wording
This was partially offset by a $4.4 million decrease in site rental revenues from DISH Wireless, including a $2.9 million write-off of contractual assets and liabilities. In September 2025, Array received a letter from DISH Wireless claiming that its obligations under its Master Lease Agreement with Array were excused due to actions taken by the FCC and subsequent agreements to sell spectrum assets. DISH Wireless has subsequently failed to make certain payments due to Array under their contractual commitment. Array believes that DISH Wireless' claim that its obligations under its Agreement with Array are excused is without merit. Beginning in the first quarter of 2026, Array cannot predict with certainty that outstanding amounts will be collected and revenue will only be recognized on a cash basis as payments are received. Site rental revenues from DISH Wireless were $6.5 million in 2025. DISH Wireless is contractually committed to levels of revenue commensurate with 2025, subject to escalators, through 2031, and a declining revenue commitment in 2032-2035.
Current wording
This was partially offset by a $1.7 million and $6.0 million decrease in site rental revenues from DISH Wireless for the three and six months ended June 30, 2026, including a $2.9 million write-off of contractual assets and liabilities that was recorded in the first quarter of 2026. In September 2025, Array received a letter from DISH Wireless claiming that its obligations under its Master Lease Agreement with Array were excused due to actions taken by the FCC and subsequent agreements to sell spectrum assets. DISH Wireless subsequently failed to make certain payments due to Array under its contractual commitment. Beginning in the first quarter of 2026, Array is no longer recognizing revenue in connection with DISH. Site rental revenues from DISH Wireless were $6.5 million in 2025. In June 2026, DISH Wireless and other DISH entities filed for bankruptcy and Array is monitoring those proceedings.
Previous wording
Cost of operations increased in the three months ended March 31, 2026 due primarily to the classification of property tax and property insurance following the sale of the wireless business, an increase in maintenance expenses and an increase in cell site ground rent due to incremental expense related to customer growth, new leases, lease amendments and escalations.
Current wording
Cost of operations increased in the three and six months ended June 30, 2026 due primarily to a change in the classification of property tax and property insurance following the sale of the wireless business, an increase in maintenance expenses and an increase in cell site ground rent due to incremental expense related to customer growth, new leases, lease amendments and escalations.
Previous wording
Selling, general and administrative expenses decreased for the three months ended March 31, 2026 due primarily to decreases in shared overhead costs, employee expenses and the classification of property tax and property insurance attributed to the sale of the wireless business. Selling, general and administrative expenses in 2026 include costs to support the winddown of the legacy wireless operations. These expenses are expected to persist at a declining rate into future periods.
Current wording
Selling, general and administrative expenses decreased for the six months ended June 30, 2026 due primarily to decreases in shared overhead costs and employee expenses and a change in the classification of property tax and property insurance following the sale of the wireless business, partially offset by an increase in strategic alternatives review expenses.
Previous wording
(Gain) loss on license sales and exchanges, net increased for the three months ended March 31, 2026 due to the closing of the sale of certain 3.45 GHz and 700 MHz wireless spectrum licenses to AT&T. See Note 6 — Divestitures in the Notes to Consolidated Financial Statements for additional information.
Current wording
(Gain) loss on license sales and exchanges, net increased for the three and six months ended June 30, 2026 due primarily to the sale of certain AWS, Cellular and PCS wireless spectrum licenses to Verizon in the second quarter of 2026 and the sale of certain 3.45 GHz and 700 MHz wireless spectrum licenses to AT&T in the first quarter of 2026. See Note 6 — Acquisitions and Divestitures in the Notes to Consolidated Financial Statements for additional information.
Previous wording
Interest expense from continuing operations excludes interest costs in all periods associated with term loans repaid, and debt exchanged, in conjunction with the sale of Array's wireless operations to T-Mobile. As a result, the increase in interest expense is primarily attributable to the new term loanthat Array entered into in August 2025 and a decrease in capitalized interest.
Current wording
Interest expense from continuing operations excludes interest costs in all periods associated with term loans repaid, and debt exchanged, in conjunction with the sale of Array's wireless operations to T-Mobile. As a result, the increase in interest expense for the three and six months ended June 30, 2026 is primarily attributable to the new term loanthat Array entered into in August 2025 and a decrease in capitalized interest.
Previous wording
Short-term imputed spectrum lease income increased for the three months ended March 31, 2026 due to the execution of the Short-Term Spectrum Manager Lease Agreement and Short-Term Spectrum Manager Sublease Agreements, which provide T-Mobile with an exclusive license to use certain Array spectrum assets and leases at no cost for up to one year from closing. The portion of the purchase price allocated to the use of this spectrum will be amortized over one year following the close. Effective April 1, 2026, the Short-Term Spectrum Manager Lease was terminated for certain spectrum assets. The termination of these leases will result in future imputed spectrum lease income of $11.7 million being recognized to (Gain) loss on sale of business and other exit costs, net within discontinued operations during the second quarter of 2026.
Current wording
Short-term imputed spectrum lease income increased for the three and six months ended June 30, 2026 due to the execution of the Short-Term Spectrum Manager Lease Agreement and Short-Term Spectrum Manager Sublease Agreements, which provide T-Mobile with an exclusive license to use certain Array spectrum assets and leases at no cost for up to one year from closing. The portion of the purchase price allocated to the use of this spectrum will be amortized over one year following the close. See Note 2 — Discontinued Operations in the Notes to Consolidated Financial Statements for additional information related to the spectrum leases.
Previous wording
Income tax expense on continuing operations increased for the three months ended March 31, 2026, due primarily to the increase in Income before income taxes.
Current wording
Income tax expense on continuing operations increased for the three and six months ended June 30, 2026, due primarily to the increase in Income before income taxes that resulted from the gains on license sales in the current period.
Previous wording
In January 2026, Array closed on the sale of certain 3.45 GHz and 700 MHz wireless spectrum licenses to AT&T for total proceeds of $1,018.0 million and expects a cash income tax liability on the transaction of approximately $130.0 million, which will be paid in future quarters in 2026.
Current wording
In the second quarter of 2026, Array closed on various sales of certain wireless spectrum licenses to Verizon and T-Mobile for total proceeds of $1,167.6 million and expects a cash income tax liability on the transactions of approximately $170.0 million, most of which will be paid during the third quarter of 2026.
Previous wording
Capital expenditures for continuing operations (i.e., additions to property, plant and equipment), which include the effects of accruals and capitalized interest, for the three months ended March 31, 2026 and 2025, were as follows:
Current wording
Capital expenditures for continuing operations (i.e., additions to property, plant and equipment), which include the effects of accruals and capitalized interest, for the six months ended June 30, 2026 and 2025, were as follows:
Previous wording
TDS Telecom’s capital expenditures for the three months ended March 31, 2026 and 2025, were $126.0 million and $58.9 million, respectively.
Current wording
TDS Telecom’s capital expenditures for the six months ended June 30, 2026 and 2025, were $305.2 million and $149.1 million, respectively.
Previous wording
Capital expenditures for the full year 2026 are expected to be between $550.0 million and $600.0 million. These expenditures are expected to be used principally for the following purposes:
Current wording
Capital expenditures for the full year 2026 are expected to be between $625.0 million and $675.0 million. These expenditures are expected to be used principally for the following purposes:
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
(Gain) loss on sale of business and other exit costs, net
Current report — wording carried from elsewhere
Selling, general and administrative expenses in 2026 include costs to support the winddown of the legacy wireless operations. These expenses are expected to persist at a declining rate into future periods.