Slides
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Third Quarter 2025 Results November 7, 2025
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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 All information set forth in this presentation about Telephone and Data Systems, Inc., including its subsidiaries Array and TDS Telecom, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: the manner in which Array's remaining business is conducted; whether the additional spectrum license sales to T-Mobile and the previously announced spectrum license sales to Verizon and AT&T will be consummated and the impact of the ongoing government shutdown on timing of these transactions; whether Array can monetize its remaining spectrum assets; strategic decisions regarding the tower business; intense competition; high inflation may increase costs beyond what TDS can recover through price increases; Array's reliance on a small number of tenants for a substantial portion of its revenue; the ability to attract people of outstanding talent throughout all levels of the organization; TDS' lack of scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties and/or expansion of TDS’ businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties with which TDS does business; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and Array indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities that Array does not control; the state and federal regulatory environment, including changes in regulatory support received and the ability to pass through certain regulatory fees to customers; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the TDS Voting Trust; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and extreme weather events. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of TDS’ Form 10-K as updated by any TDS Form 10-Q filed subsequent to such Form 10-K. 2 This presentation contains certain non-GAAP financial measures. Information about these non-GAAP financial measures and reconciliations between each non-GAAP financial measure and the most directly comparable GAAP measure are contained in the appendix to this presentation.
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3 Corporate Update - 2025 Priorities Successfully closed the T-Mobile transaction Position tower company for success Investing in fiber expansion at TDS Telecom Optimize post-transaction capital structure Ensure culture remains strong
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4 Enterprise Update Financial Policy – Repaid substantial debt at TDS and Array – Established new leverage targets (1) of ~3.0x at Array and ~1.5x for TDS – Plan to retain $1.1B of preferred equity Future Capital Allocation Priorities – Invest in Fiber Expansion – Disciplined, Synergistic M&A – Shareholder Returns (1) Leverage measured as gross bank leverage (Total Debt / Adjusted EBITDA)
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Quarterly Highlights 6 Deployed 42,000 new marketable fiber addresses Exceeded 1 million fiber addresses during the quarter Grew fiber connections; 11,200 net broadband adds from fiber markets E-ACAM construction underway in 16 states
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E-ACAM program will be transformative 7 Majority of builds completed over the next 3 years ~300,000 addresses to be upgraded from copper to fiber Extends current ACAM funding through 2038 totalling over $1.2 billion in revenues (2024 - 2038) Expect penetration rates of 65% - 75%
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Goal: 1.8 million marketable fiber service addresses** Goal: 80% of service addresses to be served by fiber Goal: 95% service addresses with speeds of 1 Gig+ Where are we: 1 million Where are we: 55% **Marketable service addresses includes single residence homes, multi-dwelling units, and business locations that are capable of being connected to the TDS network, based on best available information. Progress on long-term fiber program Where are we: 76% 8 Deployed 42,000 marketable fiber service addresses in Q3'25
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Fiber drives footprint growth 9 Q3'22 Q3'23 Q3'24 Q3'25 — 250,000 500,000 750,000 1,000,000 1,250,000 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 10,000 20,000 30,000 40,000 50,000 30% 93% New Marketable Fiber Addresses Total Fiber Service Addresses (2022 - 2025)
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Fiber drives residential connection growth 10 Q3'22 Q3'23 Q3'24 Q3'25 50,000 100,000 150,000 200,000 250,000 300,000 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 — 5,000 10,000 15,000 8% 1.9x Residential Fiber Connections (2022 - 2025)Residential Fiber Net Additions
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11 $263 $255 $40 $39 $36 $34 $67 $60 $90 $82 $29 $40 Q3'24 Q3'25 $— $100 $200 $300 Operating Revenues ($M) $65.41 $65.66 Q3'24 Q3'25 $60.00 $62.50 $65.00 $67.50Residential Revenue per Connection Quarterly revenue results Note: Divested markets accounted for a $6M decrease year-over-year.
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TDS Telecom operating performance ($M) Q3’25 Q3’24 % Change Total operating revenues $ 255 $ 263 (3) % Cash expenses (1) 182 182 — Adjusted EBITDA (2) (Non-GAAP) $ 80 $ 83 (3) % Capital expenditures $ 102 $ 78 31 % 12 (1) Expenses related to the strategic alternatives review were $3.5 M in Q3'25 and $0 in Q3'24. (2) See appendix for explanation.
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2025 TDS Telecom guidance* ($M) As of November 7, 2025 2024 Actual 2025 Previous Estimates 2025 Current Estimates Total operating revenues $1,061 $1,030-$1,050 Unchanged Adjusted EBITDA (1) (Non-GAAP) $350 $320-$350 Unchanged Adjusted OIBDA (1) (Non-GAAP) $340 $310-$340 Unchanged Capital expenditures $324 $375-$425 Unchanged (1) See appendix for explanation. *There can be no assurance that final results will not differ materially from such estimated results. See Safe Harbor Statement on Slide 2.13
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Quarterly Highlights 15 • Closed T-Mobile transaction on August 1, 2025 • Returned value to shareholders • Paid a $23 per share special dividend on August 19, 2025 • Established and branded separate tower company, Array Digital Infrastructure • Commenced 15-year initial term under T-Mobile MLA on 2,015 new sites and 600 existing sites • Entered into agreements to sell additional spectrum
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Spectrum Growing Tower Business Non-controlling Investment Interests Continue to opportunistically monetize Principally C-Band 100% U.S. 4,449 Owned towers Non-controlling investment interests generate meaningful income and distributions $169 million cash distributions in 2024 Array Value Pillars 16
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Strategic Imperatives 17 • T-Mobile MLA integration • Grow colocation revenue • Ground lease optimization • Close pending spectrum transactions • Opportunistically monetize remaining spectrum
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(1) 33 MHz and $20M of 600 MHz Put/Call remains (2) Quantification of mmWave MHz-Pops not included in the graph (3) Array expects the timing of regulatory approval to be impacted by the duration of the ongoing shutdown of the U.S. federal government. 18 Reached agreements to monetize over 70% of Array's total spectrum holdings, measured on a MHz-Pops basis, including the T-Mobile transaction Band MHz-Pops AWS 13 CBRS 75 C-Band 1,640 28 GHz (2) 37/39 GHz (2) Opportunistically monetizing spectrum Band MHz-Pops August 2025 600 MHz (1) 361 700 MHz (A Block) 319 AWS 563 PCS 443 2.5 GHz 50 24 GHz (2) September 2025 700 MHz 2 CBRS 3 C-Band 7 Band MHz-Pops Cellular 663 AWS 11 PCS 19 Band MHz-Pops 3.45 GHz 1,250 700 MHz B/C 331 Band MHz-Pops August 2025 700 MHZ (A Block) 133 September 2025 600 MHz (1) 200 October 2025 AWS 13 Band MHz-Pops CBRS 75 C-Band 1,640 28 GHz (2) 37/39 GHz (2)
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Tower Locations 19
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Towers – Q3 2025 operating highlights September 2025 Tower Rental Revenue Distribution (1) 20 Sept 30, 2025 Sept 30, 2024 (proforma) eliminating UScellular as a tenant Owned Towers 4,449 4,407 Tower Tenancy Rate (3) 1.02 0.55 Number of Colocations (3) 4,517 2,418 Tower Metrics (1) For the month of September 2025 which is a full period after implementation of the T-Mobile MLA (2) Includes ~600 existing pre-MLA sites and the 2,015 MLA Committed Sites (3) Excludes T-Mobile Interim Sites 45% 15% 18% 15% 7% T-Mobile (2) T-Mobile Interim Sites AT&T Verizon Other • Commenced August 1, 2025 • T-Mobile committed to colocate on 2,015 incremental towers for 15 years • T-Mobile to colocate on 1,800 Interim Sites for up to 30 months, T-Mobile has option to terminate earlier on a tower-by-tower basis • 600 existing sites leased by T-Mobile extended 15 years T-Mobile MLA
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(1) Existing leases includes the impact of escalators and amendments to existing leases. (2) Includes ~600 T-Mobile pre-MLA existing sites. Site rental revenues 21 Total Cash Site Rental Revenues ($ thousands) Site rental revenue - base (2) T-Mobile Committed Sites T-Mobile Interim Sites (temporary) Q3'24 Q3'25 (Dollars in thousands) Q3'25 Q3'24 Cash site rental revenue Existing leases (1) $26,162 $ 25,051 New leases since October 1, 2024 938 T-Mobile MLA - Committed Sites 9,425 T-Mobile MLA - Interim Sites 5,440 Total cash site rental revenue $41,966 $ 25,051 Non-cash revenue Straight line revenue adjustment 3,284 248 Amortization of prepaid rent 588 370 Total non-cash site revenue $3,872 $618 Site rental revenues $45,838 $ 25,669 + 68% total + 46% excluding Interim Sites + 8% excluding Committed and Interim Sites $25,051 $41,966
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($ thousands) Q3'25 Q3'24 % Change Site rental $ 45,838 $ 25,669 79 % Services 1,281 70 NM Total operating revenues 47,119 25,739 83 % Cost of operations (1) 20,976 18,263 15 % Selling, general and administrative (2) 20,525 21,176 (3) % Expenses related to strategic alternatives review (489) (1,253) (61) % Total cash expenses (3) 41,012 38,186 7 % Adjusted OIBDA (3) (Non-GAAP) 6,107 (12,447) N/M Equity in earnings of unconsolidated entities 69,811 43,109 62 % Interest and dividend income 8,909 3,552 N/M Other, net 254 — N/M Adjusted EBITDA (3) (Non-GAAP) $ 85,081 $ 34,214 N/M Adjusted Free Cash Flow (3) $ 45,925 Array operating performance (1) Approximately 5% of Cost of operations for the three months ended September 30, 2025 represent costs to manage spectrum assets. (2) Approximately 40% of SG&A expenses for the three months ended September 30, 2025 include costs to support the following activities: wireless operations prior to divestiture that are not reflected as discontinued operations, wireless operations winddown costs incurred after the August 1 close date, administrative expenses associated with managing spectrum assets, and expenses associated with the ongoing strategic alternatives review. Array expects legacy wireless operations winddown expenses to persist into the first half of 2026 at levels similar to the third quarter of 2025, and while some winddown expenses will remain after that time, Array expects such expenses to begin declining in the second half of 2026. (3) See appendix for explanation. 22
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Capital Expenditures - Towers 23 ($ in thousands) Nine months ended September 30, 2025 Tower builds and augmentation (1) 9,816 Purchase of land interests 2,074 Maintenance and other 5,088 Total (2) 16,978 58% 12% 30% Tower builds and augmentations Purchase of land interests Maintenance and other (1) Primarily includes costs to build new towers, augment existing towers to facilitate increased loading, and non-recurring costs associated with installing tower lighting equipment after certain equipment conveyed to T-Mobile upon the sale of Array's wireless operations. As it relates to tower augmentations, a large portion of this cost is reimbursed by tenants, and such tenant reimbursements are amortized as Site rental revenues over the initial term of the underlying colocation agreement.
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• T-Mobile has until January 2028 to finalize Committed Site selection, after which Array estimates owning between 800 - 1,800 tenantless (naked) towers. Tower tenancy post T-Mobile integration 24 Tenantless (naked) towers Ongoing lease up efforts Assess long-term alternatives, including decommissioning Ground rent rationalization Multi-year process
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Noncontrolling investment interests provide significant cash flow Four entities historically contribute >80% of equity income and distributions (2022 - 2024) (Dollars in millions) 2022 2023 2024 Nine months ended Sept. 30, 2025 (1)(2)(3) Equity in earnings of unconsolidated entities $158 $158 $161 $ 147 Distributions from unconsolidated entities $145 $150 $169 $ 150 25 (1) Array has investments in three companies in the state of Iowa. On August 1, 2025, in three separate transactions, these entities sold their wireless operations to T-Mobile. Array recognized $34 million of equity income and received $42 million of distributions in the third quarter of 2025 related to these three transactions. (2) Certain Array investments in Verizon wireless operating companies were subject to Verizon's prepaid lease transaction with Vertical Bridge, and Array received distributions from these investments in the aggregate amount of $25 million in the first half of 2025 related to this transaction. (3) Prior period adjustments made by the managers of certain investee entities had the impact of reducing distributions from investee operations in 2025.
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Appendix
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Adjusted OIBDA and Adjusted EBITDA Reconciliation Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 ($ in thousands) Array TDS Telecom TDS* Array TDS Telecom TDS* Net income (loss) from continuing operations (GAAP) $ 109,920 $ (282) $ 78,781 $ (95,701) $ 9,391 $ (99,364) Add back: Income tax expense (benefit) (62,701) (2,748) (72,772) (22,046) 4,323 (30,656) Income (loss) before income taxes (GAAP) $ 47,219 $ (3,030) $ 6,009 $ (117,747) $ 13,714 $ (130,020) Add back: Interest expense 8,855 (1,743) 47,278 4,241 (1,262) 32,694 Depreciation, amortization and accretion expense 11,868 78,901 91,746 12,237 67,664 80,882 EBITDA (1) (Non-GAAP) $ 67,942 $ 74,128 $ 145,033 $ (101,269) $ 80,116 $ (16,444) Add back or deduct: Expenses related to strategic alternatives review 489 3,497 4,132 1,253 — 1,538 Loss on impairment of licenses 47,679 — 47,679 136,234 — 136,234 (Gain) loss on asset disposals, net 707 22 729 196 2,680 2,823 (Gain) loss on sale of business and other exit costs, net — 2,844 2,844 — — (11,733) (Gain) loss on license sales and exchanges, net (1,323) — (1,323) (2,200) — (2,200) Short-term imputed spectrum lease income (30,413) — (30,413) — — — Adjusted EBITDA (1) (Non-GAAP) $ 85,081 $ 80,491 $ 168,681 $ 34,214 $ 82,796 $ 110,218 Deduct: Equity in earnings of unconsolidated entities 69,811 3 69,838 43,109 1 43,415 Interest and dividend income 8,909 1,824 15,663 3,552 1,368 7,952 Other, net 254 1,692 5,347 — 897 1,035 Adjusted OIBDA (1) (Non-GAAP) $ 6,107 $ 76,972 $ 77,833 $ (12,447) $ 80,530 $ 57,816 27 * The TDS column includes Array, TDS Telecom and also the impacts of consolidating eliminations, corporate operations and non-reportable segments. (1) See final slide for explanation.
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Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2025 Estimated Results and 2024 Actual Results 2025 Estimated Results Actual Results Year ended December 31, 2024 ($M) TDS Telecom TDS Telecom Net income (GAAP) N/A $85 Add back: Income tax expense N/A 35 Income before income taxes (GAAP) $20-$50 $120 Add back: Interest expense — (5) Depreciation, amortization and accretion expense 300 271 EBITDA (1) (Non-GAAP) $320-$350 $385 Add back or deduct: Loss on impairment of intangible assets — 1 (Gain) loss on asset disposals, net — 12 (Gain) loss on sale of business and other exit costs, net — (49) Adjusted EBITDA (1) (Non-GAAP) $320-$350 $350 Deduct: Interest and dividend income 5 5 Other, net 5 4 Adjusted OIBDA (1) (Non-GAAP) $310-$340 $340 28 In providing 2025 estimated results, TDS has not completed the below reconciliation to net income because it does not provide guidance for income taxes. TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, the company is unable to provide such guidance. Numbers may not foot due to rounding. (1) See final slide for explanation.
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Adjusted Free Cash Flow (1) See final slide for explanation. 29 (Dollars in thousands) Q3'25 Net income from continuing operations - Array (GAAP) $ 109,920 Add back or deduct: Deferred income taxes (80,572) Short-term imputed spectrum lease income (30,413) Amortization of deferred debt charges 274 Equity in earnings of unconsolidated entities (69,811) Distributions from unconsolidated entities 61,794 (Gain) loss on license sales and exchanges, net (1,323) (Gain) loss on asset disposals, net 707 Loss on impairment of licenses 47,679 Depreciation, amortization and accretion 11,868 Expenses related to strategic alternatives review 489 Straight line and other non-cash revenue adjustments (3,872) Straight line expense adjustment 1,559 Maintenance and other capital expenditures (2,374) Adjusted Free Cash Flow from continuing operations (Non-GAAP) (1) $ 45,925 29
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Cash Expenses Total cash expenses represent total operating expenses as shown in the Consolidated Statement of Operations Highlights in the TDS and Array SEC Forms 8-K, less depreciation, amortization and accretion and gain/losses. EBITDA, Adjusted EBITDA and Adjusted OIBDA EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliations on slides 27 through 28. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS and Array do not intend to imply that any such items set forth in the reconciliations on slides 27 through 28 are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS’ and Array's operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as it provides additional relevant and useful information to investors and other users of TDS’ and Array's financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of Array. The tables on slides 27 through 28 reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non- GAAP financial measures for September 30, 2025, can be found on TDS’ and Array's websites at investors.tdsinc.com and investors.arrayinc.com. Adjusted Free Cash Flow (AFCF) AFCF is a non-GAAP measure defined as Net income from continuing operations adjusted for the items set forth in the reconciliation on slide 29. AFCF is not a measure of financial performance under GAAP and should not be considered as an alternative to Net income from continuing operations or as an indicator of cash flows. Management believes AFCF is a useful measure of Array’s cash generated from operations and investments. The table on slide 29 reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure will only be presented prospectively as following the sale of Array's wireless operations to T-Mobile on August 1, 2025, the primary business operations for Array changed from providing wireless communication services to a standalone tower company. In addition, Array continues to own noncontrolling interests in investments that earn significant income, and generate significant cash flows. 30