TDS-PV Q4 2025 Earnings Call Summary

1Key Financial Results and Metrics

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

Adjusted EBITDA: Improved 6% in Q4 but declined 6% for the full year due to divestitures and a noncash stock-based compensation adjustment.

Capital Expenditures: Totaled $406 million for 2025, with a forecast increase to $550 million - $600 million for 2026 due to expanded fiber builds.

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

2Strategic Updates and Business Highlights

Divestiture of Wireless Operations: Completed the largest transaction in company history, divesting wireless operations to focus on fiber and tower businesses.

Fiber Business Growth: Added 58,000 new marketable fiber addresses in Q4, a 39% year-over-year increase. The full year total was 140,000 new addresses.

Expansion Goals: Increased long-term fiber address target from 1.8 million to 2.1 million, identifying 300,000 additional service opportunities across 50 new communities.

Array Digital Infrastructure: Focus on optimizing tower operations and monetizing spectrum holdings, with significant progress in integrating T-Mobile lease agreements.

3Forward Guidance and Outlook

2026 Revenue Forecast: Expected telecom revenues of $1.015 billion to $1.055 billion, reflecting growth from fiber investments but offset by declines in video, voice, and wholesale revenues.

Adjusted EBITDA Guidance: Projected between $310 million and $350 million, factoring in revenue declines from divestitures.

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

4Bad News, Challenges, or Points of Concern

Revenue Declines: Total revenues decreased due to divestitures and ongoing declines in cable and copper markets.

DISH Wireless Lease Issues: DISH has failed to meet contractual obligations, leading to uncertainty in revenue projections for 2026.

Competitive Pressures: The company faces challenges in maintaining video bundling as fewer customers choose to bundle with video, impacting average revenue per connection.

5Notable Q&A Insights

DISH Revenue Exclusion: DISH's revenue is excluded from 2026 guidance, with any settlement viewed as potential upside.

Fiber Delivery Expectations: Confidence in achieving fiber delivery targets for 2026, with a focus on maintaining construction crew levels throughout the winter months.

Monetization of C-band Spectrum: The company remains optimistic about the value of its C-band spectrum and is actively pursuing monetization opportunities without urgency to sell.

Sales Strategy for Towers: Initiatives to improve tenancy ratios include insourcing the sales team and targeting non-tower carriers, with early positive results noted. This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, and challenges faced by TDS-PV, providing a balanced view of the company's performance and outlook.