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TDS

Telephone and Data Systems, Inc.

TDS

Telephone and Data Systems, Inc. • NYSE
$40.27 ▲ 1.38% (+0.55)
Market Cap $4.35 B
52w High $42.74
52w Low $31.07
Dividend Yield 0.16%
P/E -64.95
Volume 338.75K
Outstanding Shares 108.00M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $308.521M ▼ $141.675M ▼ $-81.75M ▼ -26.497% ▼ $0 ▲ $140.652M ▼
Q2-2025 $1.186B ▲ $654M ▼ $12M ▲ 1.012% ▲ $-0.043 ▲ $275M ▼
Q1-2025 $1.154B ▼ $661M ▲ $7M ▲ 0.607% ▲ $-0.087 ▲ $315M ▼
Q4-2024 $1.24B ▲ $640M ▼ $6M ▲ 0.484% ▲ $-0.097 ▲ $323M ▲
Q3-2024 $1.224B $788M $-66M -5.392% $-0.73 $210M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $932.994M ▲ $8.532B ▼ $3.247B ▼ $4.467B ▼
Q2-2025 $540M ▲ $13.526B ▼ $7.695B ▲ $5.004B ▼
Q1-2025 $348M ▼ $13.536B ▼ $7.668B ▼ $5.078B ▼
Q4-2024 $364M ▼ $13.683B ▼ $7.799B ▼ $5.091B ▲
Q3-2024 $451M $13.726B $7.837B $5.075B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $57.545M ▲ $-34.687M ▼ $2.493B ▲ $-2.079B ▼ $378.192M ▲ $-10.746M ▼
Q2-2025 $18M ▲ $421M ▲ $-141M ▼ $-92M ▼ $188M ▲ $262M ▲
Q1-2025 $12M ▲ $186M ▼ $-123M ▲ $-76M ▲ $-13M ▲ $55M ▲
Q4-2024 $8M ▲ $212M ▼ $-174M ▼ $-126M ▼ $-88M ▼ $-20M ▼
Q3-2024 $-79M $307M $-115M $-66M $126M $101M

Revenue by Products

Product Q3-2024Q4-2024Q2-2025Q3-2025
Product
Product
 $200.00M ▲$450.00M ▲$190.00M ▼$10.00M ▼
Service
Service
 $1.03Bn ▲$2.05Bn ▲$1.00Bn ▼$260.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Revenue has been generally flat to slightly down over the past few years, which suggests a mature, competitive business rather than a high‑growth story. Gross profit has held steady, but operating profit has been thin and volatile, with a clear setback recently when the company slipped into an operating loss. Even though cash earnings before interest, taxes, and depreciation improved in the most recent year, net income has been negative for two years in a row after being modestly profitable before that. Overall, the income statement shows a company under earnings pressure, investing heavily, and still working to convert that investment into consistent, bottom‑line profitability.

Balance Sheet

Balance Sheet The balance sheet shows a sizable asset base and fairly steady total assets over time, reflecting a capital‑intensive network business. Debt levels are meaningful and have crept up compared with earlier years, while shareholders’ equity has stayed relatively stable, indicating the company is leveraged but not yet heavily strained. Cash on hand is modest, especially compared to past levels, which limits flexibility and makes continued access to funding important. In short, the balance sheet looks adequate but not overly conservative, and it needs ongoing healthy cash generation to remain comfortable given the scale of infrastructure spending.

Cash Flow

Cash Flow Operating cash flow has been relatively steady and solid, which is a key strength: the core business generates cash even when accounting profits are under pressure. However, capital spending has been very heavy for several years as TDS builds out its fiber network, and that has frequently pushed free cash flow into negative territory. The most recent year shows some improvement, with free cash flow turning modestly positive as spending eased a bit, but the overall pattern is one of cash being absorbed by expansion. This means the strategy depends on either continued borrowing or other funding sources until the new network begins to materially lift revenue and margins.

Competitive Edge

Competitive Edge TDS competes in a tough telecom market but has carved out a more defensible niche by focusing on smaller cities, suburbs, and rural areas that are often overlooked by national giants. In many of these markets it can be the first, or one of the few, providers to offer true fiber‑to‑the‑home, giving it a speed and reliability advantage over legacy cable and copper networks. Local presence and customer service awards add to its stickiness with communities. The flip side is that TDS is still relatively small compared with national players, faces the risk of competitors eventually overbuilding its fiber, and operates in a sector where pricing pressure and high regulatory and investment requirements are constant. Its moat is meaningful in selected regions, but not unassailable.

Innovation and R&D

Innovation and R&D The company’s main innovation focus is on building a modern fiber‑centric network and layering new services on top of it. Investments in fiber‑to‑the‑home, use of digital planning tools with partners, and participation in federal broadband programs all support a more efficient and subsidized rollout in rural areas. TDS is also expanding its product set with app‑based TV, hosted voice solutions for businesses, whole‑home Wi‑Fi, and a growing suite of cloud and cybersecurity services. The recent move into mobile as a virtual operator lets it bundle wireless with home broadband, deepening customer relationships. These steps show a clear innovation roadmap, but they also raise execution risk: TDS needs to control build costs, hit its ambitious fiber coverage targets, and prove that newer offerings like TDS Mobile and business digital services can scale and improve profitability.

Summary

TDS is in the middle of a major transition from a traditional telecom operator to a fiber‑driven connectivity and services company. Financially, the business still generates solid operating cash but has thin profit margins, recent net losses, and heavy capital needs, which together put pressure on the balance sheet and increase dependence on external funding. Strategically, the focus on underserved markets, fiber‑to‑the‑home, and an expanding bundle of services gives TDS a differentiated position in many of its territories and a reasonable foundation for long‑term growth. The key uncertainties are whether customer adoption and pricing power in its fiber footprint will be strong enough and fast enough to offset high investment costs, stabilize earnings, and reduce leverage over time. Observers may want to watch trends in fiber subscriber growth, pricing, churn, capital spending discipline, and interest costs as indicators of how well this transformation is progressing.

NEWS

November 21, 2025 · 8:00 AM UTC

TDS announces fourth quarter 2025 dividends

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November 7, 2025 · 7:30 AM UTC

Array Appoints Anthony Carlson President and CEO

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October 29, 2025 · 4:05 PM UTC

TDS and Array to release third quarter operating results and host conference call on November 7, 2025

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September 3, 2025 · 11:58 AM UTC

TDS Telecom Surpasses 1 Million Fiber Addresses

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