Q2 2026 Telephone and Data Systems Inc Earnings Call Transcript
Key Points
- TDS Telecom delivered approximately 66,000 fiber service addresses in Q2, marking the strongest first-half delivery in company history and exceeding the second half of 2025.
- Residential fiber net adds increased 47% year-over-year, reaching 15,100 in the quarter, driven by footprint expansion and copper-to-fiber conversions.
- Array's cash site rental revenue grew 65% year-over-year (normalized for DISH), supported by the T-Mobile MLA and strong pipeline activity.
- Array successfully monetized approximately 70% of its spectrum holdings, including the $1 billion Verizon transaction and $168 million T-Mobile sale, strengthening the balance sheet.
- TDS Telecom raised its 2026 fiber service address guidance by 50,000 to 250,000-300,000, reflecting strong execution and expanded construction capacity.
- Array increased its adjusted OIBDA guidance to $60-$75 million and adjusted EBITDA to $220-$235 million, driven by higher revenue and lower expenses.
- TDS Telecom's fiber revenue grew 13% year-over-year, helping offset legacy revenue declines, and the company is investing in sales capacity to drive further growth.
- Total operating revenues declined 6% in Q2, or 4% excluding divestitures, due to legacy revenue stream pressures and discrete wholesale revenue adjustments.
- TDS Telecom's adjusted EBITDA declined, reflecting top-line pressure from divestitures and legacy copper and cable revenue declines, leading to a narrowed guidance range.
- Cable revenues decreased roughly 10% year-over-year, prompting increased investment and sales capacity to stem the decline.
- Array's tenancy ratio remains below 1.0, and the company faces ongoing wind-down costs from legacy wireless operations, which are expected to persist through 2026.
- TDS was restricted from share repurchases in Q2 due to the pending offer for Array, limiting capital return flexibility.
- TDS Telecom's total residential revenue declined $6 million year-over-year, with copper declines outpacing fiber growth.
- Array's strategic alternatives costs related to the TDS proposal are elevated, impacting adjusted OIBDA calculations.
Ladies and gentlemen, thank you for joining us, and welcome to the TDS and Array second-quarter 2026 operating results conference call. (Operator Instructions)
I will now hand the conference over to John Toomey, Treasurer, Vice President and Head of Corporate Relations. Please go ahead.
Good morning, and thank you for joining us. The presentation we prepared to accompany our comments this morning can be found on the Investor Relations sections of the TDS and Array websites. With me today and offering prepared comments are, on behalf of TDS, Walter Carlson, President and CEO; Vicki Villacrez, Executive Vice President and Chief Financial Officer.
On behalf of TDS Telecom, Ken Dixon, President and CEO of TDS Telecom; Kris Bothfeld, Vice President of Financial Analysis and Strategic Planning of TDS. On behalf of Ray Digital Infrastructure, Anthony Carlson, President and CEO of Array.
This call is being simultaneously webcast on the TDS and
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