Telephone and Data Systems, Inc. (NYSE: TDS) reported fourth-quarter and full-year 2025 results on February 20, 2026. For the fourth quarter ended December 31, 2025, total operating revenues from continuing operations reached $330.7 million, up 12% year over year from $295.3 million. Net income attributable to TDS common shareholders from continuing operations totaled $37.2 million, or $0.32 per diluted share. For the full year 2025, operating revenues from continuing operations were $1,228.2 million, down from $1,297.0 million in 2024, while net income attributable to TDS common shareholders from continuing operations improved to $48.2 million, or $0.39 per diluted share, from a loss of $141.4 million, or $1.24 per share.
Company Description
Telephone and Data Systems, Inc. provides broadband, video, and voice services primarily through its TDS Telecom segment, focusing on fiber expansion to residential and business customers in rural and suburban markets across the United States. Following the divestiture of its wireless operations, the company also operates Array Digital Infrastructure, Inc., which manages tower assets and spectrum leasing. The business targets connectivity solutions in underserved areas, emphasizing fiber-to-the-premises growth and infrastructure monetization.
Stock Reaction
TDS shares rose following the earnings release. The stock closed at $45.18 on February 18, 2026, prior to the announcement. Post-results trading showed gains, with shares advancing over 5% in pre-market and early trading on February 20, reflecting the EPS beat, revenue increase in the quarter, and positive fiber outlook amid the profitability improvement.
Fourth-Quarter 2025 Results
Total operating revenues from continuing operations increased 12% year over year to $330.7 million from $295.3 million, driven by fiber subscriber growth and contributions from the repositioned business post-wireless divestiture. Telecom operating revenues decreased 1% year over year, though adjusted metrics showed resilience excluding divestitures. Adjusted EBITDA improved 6% in the quarter due to lower expenses. Net income from continuing operations reflected the strong turnaround.
Full-Year 2025 Results
Total operating revenues from continuing operations declined to $1,228.2 million from $1,297.0 million in 2024, impacted by legacy declines, divestitures, and copper/cable market pressures. Adjusted EBITDA declined 6% for the year, influenced by divestiture effects and a first-quarter non-cash stock-based compensation adjustment. The company achieved a significant profit swing, with net income from continuing operations at $48.2 million compared with a prior-year loss, supported by strategic restructuring including spectrum sales and share repurchases.
Earnings Call Highlights
Chief executives emphasized the transformative year, including the wireless divestiture, creation of Array as a standalone tower and spectrum platform, and acceleration of fiber expansion. Key themes included fiber program advancement despite missing the 2025 address goal by 10,000, benefits from transformation initiatives mitigating pressures, and strong fourth-quarter adjusted EBITDA gains from cost controls. Management highlighted share repurchases totaling 2.8 million shares in 2025 and the $10.25 per share special dividend paid in early 2026 from spectrum proceeds. Discussions focused on fiber as the core growth driver and positioning for sustainable broadband in targeted markets.
Outlook
For 2026, TDS Telecom guides total operating revenues of $1,015 million to $1,055 million and adjusted OIBDA of $300 million to $340 million, with adjusted EBITDA in the $310 million to $350 million range in some references. The company targets 200,000 to 250,000 new marketable fiber addresses, representing a significant increase from 2025 additions. Array projects revenues of $200 million to $215 million and adjusted EBITDA of $50 million to $65 million.
Geopolitical and Tariff Exposure
TDS maintains limited direct exposure to geopolitical risks or tariff impacts. Operations are primarily domestic, focused on U.S. broadband and infrastructure. No material effects from trade tensions, tariffs, or international supply-chain disruptions were noted in the results, guidance, or call commentary, though broader macroeconomic factors could influence capital spending or customer demand.
SWOT Analysis
Strengths
Accelerating fiber expansion and subscriber growth; successful pivot post-wireless divestiture with improved profitability; strong cash generation from spectrum sales enabling dividends and repurchases; focused on high-growth broadband in rural/suburban markets.
Weaknesses
Revenue pressure from legacy copper/cable declines and divestiture impacts; shortfalls in prior fiber address addition targets; dependency on continued execution in fiber buildout amid higher capex.
Opportunities
Significant upside in fiber penetration and marketable addresses; potential for infrastructure monetization via Array; demand for reliable broadband in underserved U.S. regions; benefits from transformation cost savings.
Threats
Competitive pressures in telecom from larger providers; macroeconomic slowdowns affecting consumer spending on services; regulatory or funding changes impacting broadband expansion; execution risks on ambitious 2026 fiber goals.
