Executive Summary

Q2 2025 revenue was $1.186B and diluted EPS was $(0.05), a revenue beat versus consensus but an EPS miss; year-over-year revenue fell 4% largely due to prior divestitures, while losses narrowed versus Q2 2024 . Consensus was $1.169B revenue and $(0.02) EPS; actuals: revenue beat, EPS missed (values from S&P Global)*.
Strategic transformation advanced: UScellular completed the $4.3B sale of wireless operations and select spectrum to T-Mobile on Aug 1; Array now operates the retained tower and spectrum assets and declared a $23.00 special dividend, with additional spectrum deals pending .
TDS Telecom continued fiber execution: 27,000 marketable addresses delivered in Q2; residential broadband net adds 3,900, fiber net adds 10,300; revenue down ~1% y/y due to non-strategic divestitures .
2025 guidance for TDS Telecom was trimmed on revenue and profit ranges (OIBDA/EBITDA) amid sales/marketing investments and copper/cable declines; capex unchanged with >80% targeted to fiber .
Near-term stock narrative drivers: transaction closings and cash returns (Array special dividend), towers tenancy growth under the 15-year T-Mobile MLA, fiber scaling and MVNO launch, and trimmed telecom ranges (guidance reset) .

What Went Well and What Went Wrong

What Went Well

“With the successful completion of the T‑Mobile transaction, we delivered a key milestone in the company’s transformation, and positioned the continuing tower business for growth and value creation.” — Walter Carlson, President & CEO .
Array third‑party tower revenues rose 12% y/y in Q2; towers operating income increased 11% y/y; adjusted EBITDA up 9% y/y, signaling healthy infrastructure demand .
TDS Telecom fiber execution: 27,000 marketable fiber addresses, 3,900 residential broadband net adds, and 10,300 fiber net adds; residential revenue per connection improved to $65.85 .

What Went Wrong

Consolidated revenue fell 4% y/y to $1.186B; EPS of $(0.05) missed consensus; telecom operating income declined y/y (14 vs 19) reflecting divestiture impact and elevated SG&A for growth initiatives .
Array Wireless service revenues declined (708 vs 718, -1% y/y) with continued handset net losses; adjusted EBITDA fell 11% y/y in the wireless segment .
TDS Telecom revenue down ~1% y/y and operating income down 27% y/y as copper/cable attrition and costs tied to transformation/sales efforts outweighed fiber gains .

Financial Results

Consolidated performance vs prior quarters and estimates

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$1.240	$1.154	$1.186
Diluted EPS ($USD)	$(0.10)	$(0.09)	$(0.05)
Net Income to Common ($USD Millions)	$(11)	$(10)	$(5)
Operating Income (EBIT) ($USD Millions)	$37	$35	$40
EBIT Margin %	2.98% (37/1240)	3.03% (35/1154)	3.37% (40/1186)
Revenue Consensus ($USD Billions)	—	—	$1.169*
EPS Consensus ($USD)	—	—	$(0.02)*

Values marked with * retrieved from S&P Global.

Segment breakdown (Q2 2025 vs Q2 2024)

Segment	Q2 2024 Revenues ($MM)	Q2 2025 Revenues ($MM)	YoY	Q2 2024 Op Income ($MM)	Q2 2025 Op Income ($MM)	YoY
Array	$927	$916	(1%)	$36	$35	(4%)
Array Wireless	$902	$888	(1%)	$17	$14	(21%)
Array Towers (Total)	$58	$62	7%	$19	$21	11%
TDS Telecom	$267	$265	(1%)	$19	$14	(27%)
All Other	$44	$5	(88%)	$(16)	$(9)	45%

KPIs

KPI	Q4 2024	Q1 2025	Q2 2025
Array Postpaid Connections (000s)	3,985	3,946	3,904
Array Postpaid ARPU ($)	51.73	52.06	51.91
Array Postpaid Churn (%)	1.29	1.21	1.29
Array Owned Towers	4,409	4,413	4,418
Array Tenancy Rate	1.55	1.56	1.57
TDS Telecom Total Broadband Connections	553,000	555,800	557,700
TDS Telecom Res. Revenue / Connection ($)	64.72	65.67	65.85
TDS Telecom Res. Broadband Net Adds	7,900	2,800	3,900
TDS Telecom Res. Fiber Net Adds	13,600	8,300	10,300

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
TDS Telecom Total Operating Revenues ($MM)	FY 2025	$1,030–$1,070	$1,030–$1,050	Lowered
TDS Telecom Adjusted OIBDA ($MM, Non-GAAP)	FY 2025	$310–$350	$310–$340	Lowered
TDS Telecom Adjusted EBITDA ($MM, Non-GAAP)	FY 2025	$320–$360	$320–$350	Lowered
TDS Telecom Capital Expenditures ($MM)	FY 2025	$375–$425	Unchanged	Maintained
TDS Common Dividend ($/share)	Q3 2025	—	$0.04 declared	Announced
Array Guidance	FY 2025	—	Not providing guidance	—

Notes: Non‑GAAP definitions and reconciliations provided in the release .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Strategic transactions (T-Mobile sale; spectrum)	On track mid‑2025; spectrum deals above book	Still expect mid‑2025 close; refined proceeds, employee/severance costs	Closed $4.3B sale Aug 1; pending AT&T/Verizon spectrum closings 2H’25/3Q’26	Progressed/closing
Towers MLA & tenancy	Preparing tower reporting; AFFO post‑close considered	Expect AFFO reporting post close; 6% tower revenue growth	12% third‑party tower revenue growth; 15‑year T‑Mobile MLA adds ~2,015 towers	Strengthening
Fiber expansion (addresses, penetration, churn)	Raised long‑term fiber targets (1.8M addresses)	14k addresses; 2.8k net adds; fiber churn 0.9%	27k addresses; 3.9k net adds; fiber net adds 10.3k; res. churn 1.5%; fiber churn 1.1%	Accelerating
Capital allocation, balance sheet	Debt paydown; free cash flow improvement	Plan to repay bank debt with proceeds; preferentials not redeemed	Special dividend at Array; credit rating improved; proceeds support fiber capex [Internet: Nasdaq/MF links]
MVNO launch / product strategy	Planned MVNO expansion	—	MVNO rollout referenced; entry‑level aggressive pricing with later step‑up [Internet: Motley/Nasdaq]	Rolling out
Regulatory approvals (FCC/DOJ)	Active engagement	Ongoing interactions with regulators	DOJ closed investigation; FCC approved transaction July 11	Completed approvals

Citations for Q2 call content: .

Management Commentary

“With a growing fiber network and strengthened tower operations, I see tremendous opportunities ahead for the TDS enterprise.” — Walter Carlson (CEO) .
Array: “Third‑party tower revenues increased 12%… pending AT&T and Verizon spectrum transactions are expected to close in 2H 2025 and Q3 2026…” .
TDS Telecom: “Executing on fiber broadband strategy… delivered 27,000 marketable fiber service addresses… revenues down 1% impacted by divestitures of non‑strategic assets” .
Conference call highlights referenced guidance updates, MVNO rollout, and post‑close tower reporting orientation (AFFO metrics), underscoring a pivot to infrastructure‑led growth .

Q&A Highlights

Guidance reset: Management updated TDS Telecom 2025 ranges to reflect divestitures and ongoing cable/copper declines; capex focus remains >80% on fiber .
Towers tenancy and reporting: Post‑close, tower reporting will emphasize AFFO and tenancy normalization; MLA with T‑Mobile provides long‑term contracted growth .
MVNO pricing strategy: Aggressive entry‑level gig pricing with step‑ups after two years; tactics aimed at reducing barriers and driving penetration .
Capital allocation: Proceeds used to delever and fund fiber program; special dividend at Array declared; ongoing evaluation of shareholder returns .

Estimates Context

Q2 2025 actuals vs consensus: Revenue $1.186B vs $1.169B* (beat); EPS $(0.05) vs $(0.02)* (miss). Miss primarily reflects telecom margin pressure and preferred dividends ($17M), while revenue benefited from towers growth offset by wireless declines and divestitures . Values marked with * retrieved from S&P Global.

Metric	Consensus	Actual	Result
Revenue ($USD Billions)	$1.169*	$1.186	Beat
EPS ($USD)	$(0.02)*	$(0.05)	Miss

Key Takeaways for Investors

Transformation is now live: Wireless operations divested; Array transitions to “pure‑play” towers/spectrum monetization underpinned by a 15‑year MLA with T‑Mobile .
Infra growth vector: Towers third‑party revenue +12% y/y, tenancy rate up to 1.57; expect normalized reporting and longer‑term contracted revenue flows .
Fiber scaling continues: 27k Q2 address deliveries and improving revenue per connection position TDS Telecom to offset legacy copper/cable attrition over time; expect capex ramp tied to E‑ACAM .
Guidance prudence: FY25 telecom ranges narrowed (revenue and profit), reflecting divestitures and near‑term investment intensity; capex unchanged and focused on penetration gains .
Near‑term catalysts: Pending spectrum closings (AT&T/Verizon), continued tower colocation under MLA, and MVNO commercialization can support narrative momentum .
Trading lens: Expect volatility around estimate revisions (EPS miss vs revenue beat) and capital return visibility (Array special dividend, TDS dividends); monitor tower tenancy updates and fiber net adds cadence .
Watch the “why”: Telecom pressures (legacy product declines and higher SG&A for growth) and wireless device economics drove margin compression; non‑GAAP adjustments isolate gains/losses from asset sales and strategic costs .

Non‑GAAP note: Adjusted EBITDA/OIBDA exclude items such as gains/losses on asset disposals/sales and strategic review expenses; reconciliations provided in exhibits .