Revenue fell short of the published expectation. Second-quarter revenue was $309.3 million, up 4% year over year but below the published consensus of roughly $321 million; the $2.24 continuing-operations EPS is not a clean comparison because it includes substantial spectrum-sale effects. (Consolidated Statement of Operations Highlights)
| Metric | Q2 2026 | Prior comparison / expectation |
|---|---|---|
| Consolidated revenue | $309.3 million | $298.5 million in Q2 2025; published consensus ~ $321 million (Consolidated Statement of Operations Highlights) |
| Diluted EPS from continuing operations | $2.24 | $(0.05) in Q2 2025; heavily affected by spectrum-related gains (Consolidated Statement of Operations Highlights) |
| TDS Telecom adjusted OIBDA | $68.7 million | $85.2 million in Q2 2025 (TDS Telecom reconciliation) |
| Six-month continuing-operations free cash flow | $(168.0) million | $(25.4) million in 2025 (Free Cash Flow reconciliation) |
| Fiber net adds | 15,100 | 10,300 in Q2 2025 (TDS Telecom Summary Operating Data) |
| Broadband net adds | 5,700 | 3,900 in Q2 2025 (TDS Telecom Summary Operating Data) |
The core Telecom business is being reset lower despite better fiber execution. TDS Telecom cut full-year revenue guidance to $1.000-$1.025 billion from $1.015-$1.055 billion and narrowed adjusted OIBDA guidance to $300-$320 million from $300-$340 million. The fiber rollout is delivering faster than planned—marketable fiber address guidance rises to 250,000-300,000—but the higher build pace lifts capital-expenditure guidance to $625-$675 million from $550-$600 million. (2026 Estimated Results; TDS Telecom Summary Operating Data)
Array is the offset, but its biggest earnings driver is largely monetization rather than recurring operations. Array raised revenue guidance modestly to $205-$215 million and adjusted OIBDA to $60-$75 million from $50-$65 million, while adjusted EBITDA rose to $220-$235 million from $200-$215 million. However, the quarter's headline profit was dominated by a $409.8 million license-sale gain, and the six-month reconciliation includes $566.5 million of license-sale gains; adjusted free cash flow was only $6.6 million. (Array Highlights; Array Adjusted Free Cash Flow reconciliation)
The operational signal is mixed rather than broadly improving. Array tenancy increased sequentially to 0.98 from 0.96, but remains below 1.03 at December 31, 2025. TDS Telecom added fiber customers, yet total connections declined to 1.054 million from 1.058 million in the prior quarter and 1.109 million a year earlier, while Telecom adjusted OIBDA fell 18% year over year to $68.7 million. (TDS Telecom and Array Summary Operating Data; TDS Telecom reconciliation)
Net, the filing leans negative versus expectations. Array's guidance raise and stronger fiber deployment are genuine positives, but they are outweighed by the Telecom revenue and profit reset, a much larger capital program, and continuing-operations free cash flow deterioration. The spectrum-sale completion was previously announced, so the large GAAP earnings jump adds less new information than the underlying guidance and cash-flow changes. (2026 Estimated Results; Cash Flow statement; Consolidated Statement of Operations Highlights)
Read the original 8-K on SEC EDGAR ↗