UZD Q1 2026 Earnings Call Summary

Total Operating Revenues: Declined 3% year-over-year, or 1% excluding divestitures.
Adjusted EBITDA: Decreased by 3%, primarily due to revenue losses from divestitures.
Capital Expenditures: Totaled $126 million, reflecting increased construction activity.
Fiber Service Addresses: 40,000 new addresses delivered in Q1, nearly tripling from 2025.
Residential Fiber Net Adds: Approximately 11,000, a 32% increase year-over-year.
Total Residential Revenue: Declined by $5 million, with fiber revenue up 13% but cable revenue down 10%.

Acquisition Proposal: TDS proposed to acquire the remaining shares of Array Digital Infrastructure, Inc. not owned by TDS, aiming to simplify corporate structure and enhance growth potential.
Fiber Expansion: TDS Telecom is focused on increasing fiber service addresses, with a target of 200,000 to 250,000 new addresses for the year.
Granite State Communications Acquisition: Agreement to acquire this fully fibered company, adding over 11,000 service addresses, expected to close in Q3 2026.
Operational Improvements: TDS Telecom is investing in internal construction teams and modernizing systems to enhance efficiency and customer experience.

Revenue Guidance: Projecting total telecom revenues between $1.015 billion and $1.055 billion for 2026, leaning towards the lower end due to headwinds in copper and cable markets.
Adjusted EBITDA Guidance: Expected to be between $310 million and $350 million.
Capital Expenditures for 2026: Anticipated to be between $550 million and $600 million.

Legacy Revenue Pressures: Continued declines in copper and cable revenues, with total residential revenue down $5 million.
DISH Revenue Impact: Array Digital Infrastructure ceased recognizing revenue from DISH due to nonpayment, fully reserving unpaid amounts from 2025.
Market Competition: Increasing competitive pressures in the cable market, with ongoing declines in video attachment rates affecting revenue.

Fiber REIT Structure: TDS has considered REIT structures for fiber but finds current options not optimal.
Ownership of Array Digital: TDS currently holds approximately 81.9% of Array Digital Infrastructure, Inc.
Sales and Customer Experience: TDS Telecom is enhancing its sales capabilities, particularly in door-to-door sales and online channels, to improve customer acquisition.
Cost Transformation: TDS remains on track to achieve $100 million in run-rate savings by 2028, with some benefits starting to materialize in 2026.
C-band Spectrum Monetization: Array Digital Infrastructure is optimistic about the value of its C-band spectrum but is not in a rush to sell, focusing on optimizing existing assets.

This summary encapsulates the key points from the earnings call, highlighting both the positive developments and challenges faced by UZD in Q1 2026.

UZD — Array Digital Infrastructure, Inc. 6.250% Senior Notes due 2069