Summary of TDS Enderae Q4 2025 Earnings Call

1Key Financial Results and Metrics

Total Operating Revenues: Decreased by 1% in Q4 and 2% for the full year, with flat revenues when excluding divestitures.

Adjusted EBITDA: Increased by 6% in Q4 but declined by 6% for the full year, primarily due to divestitures and a noncash adjustment in Q1.

Cash Expenses: Decreased by 4% in Q4 but increased by 1% for the full year.

Capital Expenditures: Totaled $406 million for the year, with a forecasted increase to $550-$600 million for 2026.

Share Repurchase: Invested $67 million to repurchase 1.8 million shares in Q4, totaling 2.8 million shares for 2025.

2Strategic Updates and Business Highlights

Divestiture of Wireless Operations: Completed the largest transaction in company history, strengthening the balance sheet and positioning Array Digital Infrastructure for growth.

Fiber Expansion: Added 58,000 new marketable fiber addresses in Q4, totaling 140,000 for the year. The long-term goal for fiber addresses was raised from 1.8 million to 2.1 million.

Business Transformation: Continued focus on operational improvements, with a goal of achieving $100 million in savings by 2028.

Spectrum Monetization: Closed a $1.018 billion spectrum sale to AT&T, with ongoing efforts to monetize remaining spectrum holdings.

3Forward Guidance and Outlook

2026 Revenue Guidance: Projected telecom revenues of $1.015 billion to $1.055 billion, with adjusted EBITDA expected between $310 million and $350 million.

Fiber Address Goals: Aim to deliver 200,000 to 250,000 new marketable fiber addresses in 2026.

Array Digital Infrastructure Guidance: Forecasting total operating revenue of $200 million to $215 million and adjusted EBITDA of $100 million to $215 million, excluding DISH revenues due to uncertainty.

4Bad News, Challenges, or Points of Concern

Revenue Declines: Continued secular declines in cable and copper markets impacting overall revenue.

DISH Revenue Uncertainty: DISH Wireless has failed to make required payments under their master lease agreement, leading to exclusion from future revenue guidance.

Execution Risks: Although there was strong performance in Q4, the company did not meet its fiber address goal of 150,000 for 2025, indicating potential execution challenges moving forward.

Competitive Pressures: The need to be first to market in fiber expansion markets is critical, with ongoing competition from other carriers.

5Notable Q&A Insights

DISH Revenue Impact: Clarified that DISH revenue is completely excluded from 2026 guidance, with any settlements considered upside.

Fiber Strategy: Management emphasized the importance of maintaining high crew counts to ensure successful fiber builds and highlighted the focus on sales channel development.

Spectrum Monetization: Management expressed optimism about the value of C-band spectrum and indicated that they are not in a hurry to sell but are actively pursuing monetization opportunities.

Video Bundling Strategy: Management remains committed to maintaining video services as part of their offering, citing strong margins and customer retention benefits. Overall, TDS Enderae's Q4 2025 results reflect a transformative year with significant strategic moves, although challenges remain in execution and revenue stability amidst competitive pressures.