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TDS: TDS Surpasses Estimates with Strong Q4 2025 Performance

TDS reported actual EPS of $0.07, beating estimates of -$0.06. Revenue growth is expected to be around 3.0% next year, according to analysts' estimates. The company's financial performance was highlighted by the completion of its largest transaction in history, the divestiture of its wireless operations, and a strengthened balance sheet. TDS Telecom revenues are forecasted to be between $1,015 million and $1,055 million, with adjusted EBITDA ranging from $310 million to $350 million. As Chris Bautfeldt noted, the adjusted EBITDA guidance for 2026 includes an impact from divestitures and legacy revenue stream declines, but there is growth due to investments in fiber markets and business transformation efforts.

TDS

USD 44.5

1.71%

A-Score: 5.3/10

Publication date: February 20, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Spectrum Sale & Debt Repayment Closed $1,018M spectrum sale to AT&T and repaid $150M term loan debt, strengthening balance sheet.
  • Fiber Expansion & CapEx TDS Telecom targets 200,000–250,000 new fiber service addresses in 2026, with $550M–$600M capital expenditure increase.
  • Array Guidance Array forecasts $200–$215M revenue and $200–$215M adjusted EBITDA in 2026, excluding DISH revenue due to contractual dispute.
  • C-Band Monetization C-band spectrum deemed "attractive" with potential upside from acquirers; no immediate plan to sell noncontrolling interests.
  • Telecom Revenue & Growth TDS forecasts $1.015B–$1.055B telecom revenue in 2026; 6% growth expected excluding DISH, flat with DISH inclusion.

Segment Performance and Outlook

TDS Telecom is expected to drive sales and expand fiber customer growth, with a target of delivering 200,000 to 250,000 new marketable fiber addresses in 2026. Array's business portfolio has three significant drivers of value: a portfolio of over 4,400 towers, wireless spectrum, and minority interests in wireless partnerships. Array is forecasting total operating revenue of $200-$215 million and adjusted EBITDA of $200-$215 million. Excluding DISH revenue, Array expects significant same-store growth, with a growth rate of around 6%.

Valuation and Key Metrics

The current valuation metrics for TDS indicate a P/E Ratio of -799.79, P/B Ratio of 0.95, and EV/EBITDA of 7.89. The company's ROE is -0.13%, and Net Debt / EBITDA is 2.18. The dividend yield is 0.37%, and Free Cash Flow Yield is 4.09%. These metrics suggest that the market is pricing in a challenging environment, but the company's efforts to strengthen its balance sheet and drive growth in its fiber business may lead to improved financial performance.

Growth Initiatives and Strategic Focus

TDS is focused on growing its fiber business, with increased capital expenditures to $550-$600 million, and has identified 300,000 additional fiber edge out service address opportunities. Array is focused on optimizing tower operations and monetizing spectrum, with agreements to sell spectrum to Verizon and AT&T. The company is also exploring opportunities to buy back AD shares in the market, given the implied look-through discount.

TDS's A-Score