Telephone and Data Systems Q4 Net Income Jumps to $54.5M; Array Segment Revenue Tops $60M
Telephone and Data Systems reported Q4 net income of $54.5 million, or $0.32 per share, up from $18.3 million a year earlier, beating consensus by $0.23. Revenue rose 12% to $330.7 million, led by Array Digital Infrastructure segment growth to $60.3 million and 44,900 net broadband adds.
1. Q4 Financial Results
Telephone and Data Systems posted net income of $54.5 million, or $0.32 per share, for the fourth quarter, reversing a year-ago profit of $18.3 million and topping estimates by $0.23. Fourth-quarter revenue climbed 12% to $330.7 million.
2. Segment Performance
The Array Digital Infrastructure segment generated $60.3 million in revenue, up from $26.1 million, driven by tower rental growth. TDS Telecom contributed $260.9 million in revenue with 905,600 residential connections averaging $65.95 in revenue per connection.
3. Operating Metrics and Liquidity
Operating expenses climbed 13% to $313.9 million, while segment operating income improved. The company added 44,900 broadband subscribers in 2025 and deployed 140,000 new fiber addresses. At year-end, cash totaled $765.9 million against $823.4 million of long-term debt.
4. 2026 Outlook
For 2026, management expects TDS Telecom revenues of $1.015–$1.055 billion and adjusted EBITDA of $310–$350 million with $550–$600 million in capital expenditures, while Array Digital forecasts $200–$215 million in revenue, $200–$215 million in EBITDA and $25–$35 million in capital expenditures.