TDS Q2 Earnings Flat, YTD Net Income Dips to $0.08/Share

TL;DR

**TDS is treading water with flat Q2 earnings and a significant YTD profit drop, signaling a cautious hold for investors.**

AI Summary

TELEPHONE & DATA SYSTEMS INC (TDS) reported a net income of $0.04 per share for the second quarter of 2025, consistent with the prior year's second quarter. For the six months ended June 30, 2025, net income was $0.08 per share, a decrease from $0.23 per share in the same period of 2024. Total service revenues for Q2 2025 were $414 million, matching Q2 2024, while product revenues were $6 million, down from $1 million in Q2 2024. Year-to-date service revenues reached $828 million, identical to the first six months of 2024, and product revenues were $1 million, a significant decrease from $6 million in the prior year. The company maintained its number of towers at 300 as of June 30, 2025. Strategic outlook remains focused on maintaining service revenue stability despite a notable decline in product revenue year-over-year. The company's financial position shows consistent preferred stock levels at $375 million for Preferred Stock 1 and $750 million for Preferred Stock 2 as of June 30, 2025.

Why It Matters

TDS's flat Q2 net income and declining year-to-date earnings per share from $0.23 to $0.08 signal a challenging environment for investors, suggesting limited growth potential in the near term. The stability in service revenue at $414 million for Q2 2025, alongside a sharp drop in product revenue from $6 million to $1 million year-to-date, indicates a shift in revenue mix and potential competitive pressures in the product segment. This could impact employee morale and future investment in product development. For customers, consistent service revenue might imply stable service offerings, but the overall financial performance could affect long-term innovation and network upgrades, potentially lagging behind more aggressive competitors.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant year-over-year decline in net income per share from $0.23 to $0.08 for the six months ended June 30, 2025, despite stable service revenues. This indicates potential margin compression or increased operating costs not immediately apparent. The sharp drop in product revenue from $6 million to $1 million year-to-date also points to a weakening segment.

Analyst Insight

Investors should hold TDS shares and monitor future filings closely for signs of improved profitability or further margin erosion. Focus on the company's ability to grow or diversify its service revenue streams to offset product segment weakness and improve overall net income per share.

Financial Highlights

debt To Equity

N/A

revenue

$420 million

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$0.04 per share

eps

$0.04

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $0.04 — Q2 2025 Net Income Per Share (Consistent with Q2 2024)
• $0.08 — YTD 2025 Net Income Per Share (Down from $0.23 in YTD 2024)
• $414 million — Q2 2025 Service Revenue (Stable compared to Q2 2024)
• $6 million — Q2 2025 Product Revenue (Up from $1 million in Q2 2024)
• $1 million — YTD 2025 Product Revenue (Down significantly from $6 million in YTD 2024)
• $828 million — YTD 2025 Service Revenue (Stable compared to YTD 2024)
• 300 — Number of Towers (Consistent as of June 30, 2025)
• $375 million — Preferred Stock 1 (Consistent as of June 30, 2025)
• $750 million — Preferred Stock 2 (Consistent as of June 30, 2025)

Key Players & Entities

• TELEPHONE & DATA SYSTEMS INC /DE/ (company) — Filer of the 10-Q
• TDS-PV (company) — Ticker symbol for TELEPHONE & DATA SYSTEMS INC /DE/
• $0.04 (dollar_amount) — Net income per share for Q2 2025
• $0.08 (dollar_amount) — Net income per share for the six months ended June 30, 2025
• $0.23 (dollar_amount) — Net income per share for the six months ended June 30, 2024
• $414 million (dollar_amount) — Service revenues for Q2 2025 and Q2 2024
• $6 million (dollar_amount) — Product revenues for Q2 2025
• $1 million (dollar_amount) — Product revenues for Q2 2024 and year-to-date 2025
• $828 million (dollar_amount) — Year-to-date service revenues for 2025 and 2024
• 300 (dollar_amount) — Number of towers as of June 30, 2025

FAQ

Industry Context

The telecommunications industry is characterized by significant capital expenditures, evolving technologies, and intense competition. Companies like TDS operate in a space that requires continuous investment in infrastructure to maintain service quality and expand coverage, while facing pressure from larger players and new entrants.

Regulatory Implications

As a telecommunications provider, TDS is subject to various regulatory frameworks governing service provision, spectrum allocation, and data privacy. Changes in these regulations, such as net neutrality rules or data security mandates, can impact operational costs and business strategies.

What Investors Should Do

1. Monitor product revenue trends closely.
2. Analyze the drivers of service revenue stability.
3. Investigate the decrease in YTD net income per share.

Key Dates

• 2025-06-30: End of Q2 2025 — Reporting period for the 10-Q filing, showing stable service revenue but a decline in product revenue and YTD net income.
• 2025-08-11: Filing Date of 10-Q — Indicates the company has submitted its quarterly financial report to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This document is the source of the financial data and analysis presented.)

Service Revenue

Revenue generated from the core services provided by the company, as opposed to product sales. (Represents the primary and stable revenue stream for TDS, showing consistency year-over-year.)

Product Revenue

Revenue generated from the sale of physical products. (A smaller and more volatile revenue stream for TDS, showing a significant year-over-year decline in the year-to-date period.)

Net Income Per Share

The portion of a company's profit allocated to each outstanding share of common stock. (Indicates profitability on a per-share basis, showing a decrease year-to-date for TDS.)

Year-Over-Year Comparison

Compared to the previous year's filings, Telephone & Data Systems Inc. (TDS) shows a mixed financial picture. While Q2 2025 service revenue remains stable at $414 million, mirroring Q2 2024, the year-to-date net income per share has decreased significantly from $0.23 to $0.08. Product revenue also experienced a notable decline year-over-year, with YTD product revenue falling to $1 million from $6 million. The company's infrastructure, represented by its 300 towers, remains consistent, as do its preferred stock levels.

Key Financial Figures

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• $586 million — reless spectrum licenses to be sold was $586 million. The transaction is expected to close i
• $1,018 m — transaction close for total proceeds of $1,018 million, subject to certain purchase pric
• $860 million — reless spectrum licenses to be sold was $860 million. The transaction is expected to close i
• $16 million — ns and strategic alternatives review of $16 million and $32 million for the three and six m
• $32 million — alternatives review of $16 million and $32 million for the three and six months ended June
• $21 million — s ended June 30, 2025, respectively and $21 million and $33 million for the three and six m
• $33 million — 2025, respectively and $21 million and $33 million for the three and six months ended June
• $17 m — rum, Inc. for a total purchase price of $17 million, of which $10 million was paid in
• $10 million — purchase price of $17 million, of which $10 million was paid in prior periods and $7 millio
• $7 million — 0 million was paid in prior periods and $7 million was paid at time of closing. Following
• $50 million — ete income tax benefit of approximately $50 million during the three months ending Septembe
• $2,629 million — sed and Array received cash proceeds of $2,629 million. TDS expects a cash income tax liabilit
• $125 million — on the T-Mobile transaction of between $125 million and $175 million. The transaction inclu
• $175 million — transaction of between $125 million and $175 million. The transaction included a debt exchan

Filing Documents

• tds-20250630.htm (10-Q) — 2504KB
• tds6302025ex45.htm (EX-4.5) — 827KB
• tds6302025ex101.htm (EX-10.1) — 105KB
• tds6302025ex102.htm (EX-10.2) — 58KB
• tds6302025ex311.htm (EX-31.1) — 9KB
• tds6302025ex312.htm (EX-31.2) — 10KB
• tds6302025ex321.htm (EX-32.1) — 5KB
• tds6302025ex322.htm (EX-32.2) — 5KB
• tds-20250630_g1.jpg (GRAPHIC) — 9KB
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• tds-20250630_g11.jpg (GRAPHIC) — 51KB
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• tds-20250630_g6.jpg (GRAPHIC) — 46KB
• tds-20250630_g7.jpg (GRAPHIC) — 50KB
• tds-20250630_g8.jpg (GRAPHIC) — 18KB
• tds-20250630_g9.jpg (GRAPHIC) — 89KB
• 0001051512-25-000062.txt ( ) — 12815KB
• tds-20250630.xsd (EX-101.SCH) — 44KB
• tds-20250630_cal.xml (EX-101.CAL) — 70KB
• tds-20250630_def.xml (EX-101.DEF) — 343KB
• tds-20250630_lab.xml (EX-101.LAB) — 638KB
• tds-20250630_pre.xml (EX-101.PRE) — 505KB
• tds-20250630_htm.xml (XML) — 1688KB

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 45

Financial Statements (Unaudited)

Financial Statements (Unaudited) 46 Consolidated Statement of Operations 46 Consolidated Statement of Cash Flows 47 Consolidated Balance Sheet 48 Consolidated Statement of Changes in Equity 50

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 54

Controls and Procedures

Controls and Procedures 71

Legal Proceedings

Legal Proceedings 72 Unregistered Sales of Equity Securities and Use of Proceeds 73 Other Information 74 Exhibits 75 Form 10-Q Cross Reference Index 76

Signatures

Signatures 77 Table of Contents Telephone and Data Systems, Inc.

Management's Discussion and Analysis of

Management's Discussion and Analysis of Financial Condition and Results of Operations Executive Overview The following discussion and analysis compares Telephone and Data Systems, Inc.'s (TDS) financial results for the three and six months ended June 30, 2025, to the three and six months ended June 30, 2024. It should be read in conjunction with TDS' interim consolidated financial statements and notes included herein, and with the description of TDS' business, its audited consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) included in TDS' Annual Report on Form 10-K (Form 10-K) for the year ended December 31, 2024. Certain numbers included herein are rounded to millions for ease of presentation; however, certain calculated amounts and percentages are determined using the unrounded numbers. This report contains statements that are not based on historical facts, which may be identified by words such as "believes," "anticipates," "estimates," "expects," "plans," "intends," "projects," "will" and similar expressions. These statements constitute and represent "forward looking statements" as this term is defined in the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be significantly different from any future results, events or developments expressed or implied by such forward looking statements. See the disclosure under the heading Private Securities Litigation Reform Act of 1995 Safe Harbor Cautionary Statement elsewhere in this report for additional information. The accounting policies of TDS conform to accounting principles generally accepted in the United States of America (GAAP). However, TDS uses certain "non-GAAP financial measures" in the MD&A and the business segment information. A discussion of the reasons TDS determines thes

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View this 10-Q filing on SEC EDGAR