TDS Q4 2025 Earnings Analysis

And I'm Jordan. Before we jump in, I want to remind everyone that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

Absolutely, Alex. TDS is in the middle of a complete metamorphosis. They've essentially split into two focused businesses - TDS Telecom, which is all about fiber expansion, and Array, their new tower company. The big headline here is they closed that massive spectrum sale to AT&T for over $1 billion in January 2026.

Speaking of putting cash to work, here's where it gets interesting for growth investors. TDS is dramatically expanding their fiber ambitions. They're raising their long-term fiber address target from 1.8 million to 2.1 million - that's 300,000 additional addresses they've identified in about 50 new communities where they think they can be first to market.

Exactly. And Ken Dixon, who runs TDS Telecom, seems confident about their competitive positioning. In Q4 2025, they added 58,000 new marketable fiber addresses - that was up 39% year-over-year and their strongest build quarter since 2023. But here's the thing - they still missed their annual target of 150,000 addresses, delivering 140,000 instead.

Great question. Dixon mentioned they hit record crew counts in Q4 and importantly, they kept those crews through the winter months. Historically, they'd lose external contractors during winter and struggle to get them back for spring construction season. They've also made strategic investments in internal construction capacity and equipment.

That CapEx increase tells the growth story. They're investing heavily in those EACAM markets - which are rural areas getting federal funding support - plus their expansion markets and these new edge-out opportunities. It's a significant capital commitment, but the potential returns look attractive if they execute.

Sure. Array has over 4,400 towers, and about one-third have no competing tower within a two-mile radius - that's valuable real estate. T-Mobile has a master lease agreement where they're committed to 2,015 sites, but they have until January 2028 to finalize which towers they want. This could leave Array with 800 to 1,800 "naked towers" with no tenants.

He did! He called these naked towers "an option" with "significant latent value." The strategy is to reduce the holding costs while they work to lease them up to other carriers. They're insourcing their sales team and signed a new deal with Verizon that's already showing results.

Oh yeah, this is messy. DISH basically stopped paying Array, claiming their lease agreement was impacted by "unforeseeable FCC circumstances." Array's management was pretty blunt - they think DISH's claims are "without merit" and they're taking action to protect their rights. Array completely excluded DISH revenue from their 2026 guidance.

Right, and they acknowledged their guidance ranges are wider than industry norms because of all this uncertainty around T-Mobile site selections and the timing of various transitions. Plus they still have elevated costs from winding down the legacy wireless operations.

That C-band decision is interesting. Anthony made it clear they don't feel like forced sellers. They believe it's highly attractive spectrum for 5G with an existing ecosystem, and the first build-out requirement doesn't kick in until 2029. So they have time to optimize the monetization.

This is definitely a "show me" story. The fiber expansion plan is ambitious and capital-intensive, but if they execute, the returns could be substantial, especially in those first-to-market scenarios. The tower business has good bones, but there's execution risk around leasing up those naked towers and managing the T-Mobile transition.

Absolutely. The balance sheet transformation gives them financial flexibility they haven't had before. Whether they can translate that into operational execution and profitable growth - that's the key question for 2026 and beyond.

This is a complex transformation story with multiple moving parts. The fiber opportunity is real, but it requires significant capital and flawless execution. The tower business has potential, but it's early days. Investors need to be comfortable with execution risk in exchange for what could be substantial growth.

Of course. Everything we've discussed today is AI-generated analysis for educational purposes. Past performance doesn't guarantee future results. Please do your own due diligence before making any investment decisions.

See you next time! ---