Slides
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Second Quarter 2026 Results August 7 , 2026 TDS TDS Array DIGITAL INFRASTRUCTURE
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Telephone and Data Systems. All Rights Reserved. 2 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: whether any transaction related to the TDS non-binding proposal delivered to the Array Board of Directors to acquire all of the outstanding Array Common Shares not owned by TDS will be accepted, rejected, consummated, or abandoned; whether any such transaction, if accepted or completed, will result in additional value for shareholders and whether the process could result in adverse effects on either business; the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; whether the additional spectrum license sales to T-Mobile are consummated; whether Array can monetize its remaining spectrum assets; intense competition, including fixed wireless and satellite; economic and business risks associated with fixed rate annual escalators on colocation revenue contracts; 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; TDS' inability to protect rights to the land under its towers; changes in demand, consumer preferences and perceptions, price competition, or cost; advances or changes in technology; impacts of costs, integration issues 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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Telephone and Data Systems. All Rights Reserved. 3 3 2026 Enterprise - Priorities Grow TDS Telecom's fiber business Strengthen TDS' corporate and capital structure Support Array's success as a tower company Continue to strengthen TDS' culture Opportunistically monetize remaining spectrum
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Telephone and Data Systems. All Rights Reserved. 4 4 Capital Update (1) Leverage measured as gross bank leverage (Total Debt / Adjusted EBITDA) Continued progress to deliver 2.1 million marketable fiber service addresses; delivering 66,000 in the quarter, increased fiber service address guidance for 2026 Announced transaction to acquire Granite State Communications(1); continue to review funnel of attractive opportunities No repurchases in the quarter; ~$520M remaining under the current authorizations (1) Transaction expected to close Q3 2026, subject to regulatory and other approvals Fiber Deployment Disciplined, Synergistic M&A Shareholder Return
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5 Telephone and Data Systems. All Rights Reserved.
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Telephone and Data Systems. All Rights Reserved. 6 Q2 2026 Highlights 6 Delivered approximately 66,000 new marketable fiber addresses in Q2 2026; up ~150% from Q2 2025 Added 15,100 residential fiber connections in Q2 2026; up 47% from Q2 2025 Continued operational transformation efforts to drive efficiencies and improvements Record construction crew counts to support E-ACAM
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Telephone and Data Systems. All Rights Reserved. 7 We continue to make progress toward our long-term goals (1) 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. Update on Long-Term Goals 7 Goal: 2.1 million marketable fiber service addresses(1) Where we are: 1.17 million Where we are: 60% Goal: 80% service addresses served by fiber Goal: 95% service addresses with multi-gig speeds Where we are: 80%
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Telephone and Data Systems. All Rights Reserved. 8 Fiber drives footprint growth 8 Q2'23 Q2'24 Q2'25 Q2'26 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Total Marketable Fiber Service Addresses * New Marketable Fiber Addresses * 80% 40k 106k >2.5x 100k + 150% YOY + 180% YOY * Address counts and comparisons may be rounded to the nearest thousand for comparison purposes
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Telephone and Data Systems. All Rights Reserved. 9 Fiber drives residential connection growth 9 Q2'23 Q2'24 Q2'25 Q2'26 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Residential Fiber Connections *Residential Fiber Net Additions * 2x+ 47% YOY + 31% YOY * Address counts and comparisons may be rounded to the nearest thousand for comparison purposes
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Telephone and Data Systems. All Rights Reserved. 10 10 $183 $178 $39 $29 $62 $56 $82 $93 Q2'25 Q2'26 $25 $50 $75 $100 $125 $150 $175 $200 $65.85 $66.50 Q2'25 Q2'26$60.00 $62.50 $65.00 $67.50 Quarterly revenue results Note: Divested markets accounted for a $2M decrease in residential revenue year-over-year 1% Residential Revenue per Connection Residential Revenue by Technology ($M) Fiber(1) Cable(2) Copper (1) Fiber includes revenue from customers at fiber-capable addresses in non-cable markets. (2) Cable includes revenue from cable markets served using coaxial cable and fiber technologies.
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Telephone and Data Systems. All Rights Reserved. 11 TDS Telecom financial performance ($M) Q2’26 Q2’25 % Change Total operating revenues (1) $ 248 $ 265 (6) % Cash expenses $ 180 $ 180 — Adjusted EBITDA (2) (Non-GAAP) $ 70 $ 89 (21) % Capital expenditures $ 179 $ 90 99 % 11 (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. (1) Divestitures in 2025 drove a decrease of $5M year-over-year. (2) See appendix for explanation and reconciliation to most directly comparable GAAP measure.
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Telephone and Data Systems. All Rights Reserved. 12 2026 TDS Telecom guidance(1) ($M) As of August 7, 2026 2026 Previous Estimates 2026 Current Estimates Total operating revenues $1,015-$1,055 $1,000-$1,025 Adjusted EBITDA (2) (Non-GAAP) $310-$350 $310-$330 Adjusted OIBDA (2) (Non-GAAP) $300-$340 $300-$320 Capital expenditures $550-$600 $625-$675 12 (1) There can be no assurance that final results will not differ materially from such estimated results. See Safe Harbor Statement on Slide 2. (2) See appendix for explanation and reconciliation to most directly comparable GAAP measure.
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13 Telephone and Data Systems. All Rights Reserved.
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Telephone and Data Systems. All Rights Reserved. 14 SpectrumGrowing Tower Business Non-controlling Investment Interests Principally C-Band Remains 100% U.S. 4,456 Owned towers Non-controlling investment interests generate meaningful income and distributions Array Value Pillars 14
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Telephone and Data Systems. All Rights Reserved. 15 Q2 2026 Highlights 15 Cash site rental revenue increased 65% over prior year (excludes T-Mobile Interim revenues and DISH revenues) Sequential growth in tower tenancy ratio, excluding DISH Continue to monetize spectrum • Closed on certain 600 MHz, 700 MHz, and AWS licenses to T-Mobile in May 2026 ~ $168 million • Closed transaction with Verizon in June 2026 - $1 billion • Issued special dividend of $11.00 per common share on June 25, 2026
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Telephone and Data Systems. All Rights Reserved. 16 Towers – Q2 2026 operating highlights 16 Tower Metrics(2) (1) For the month of September 2025 which is a full period after implementation of the T-Mobile MLA (2) Includes ~600 existing pre-MLA sites and the 2,015 MLA Committed Sites (3) Excludes T-Mobile Interim Sites (1) Includes ~600 existing pre-MLA sites and the 2,015 MLA Committed Sites (2) Excludes DISH across all periods as well as T-Mobile Interim sites; includes T-Mobile Committed sites T-Mobile (1) T-Mobile Interim Sites AT&T Verizon Other 0.94 0.95 0.96 0.98 Q3 25 Q4 25 Q1 26 Q2 26 Q2 2026 Tower Rental Revenue Distribution Owned Towers 4,449 4,450 4,452 4,456 Number of Colocations (2) 4,184 4,239 4,290 4,362 Tower Tenancy Rate (2) 0.94 0.95 0.96 0.98 48% 13% 18% 17% 4%
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Telephone and Data Systems. All Rights Reserved. 17 (1) Existing leases includes the impact of escalators and amendments to existing leases. (2) Includes ~600 T-Mobile pre-MLA existing sites. Site rental revenues 17 Total Cash Site Rental Revenues ($ thousands) $24,885 $26,854 $1,522 $14,150 $6,735 Q2'25 Q2'26 (Dollars in thousands) Q2'26 Q2'25 Cash site rental revenue Existing leases (1,2) $25,435 $26,407 New leases since March 31, 2025 1,419 T-Mobile MLA - Committed Sites 14,150 T-Mobile MLA - Interim Sites 6,735 Total cash site rental revenue $47,739 $26,407 Non-cash revenue Straight line revenue adjustment 5,066 386 Amortization of prepaid rent 370 437 Total non-cash site revenue $5,436 $823 Site rental revenues $53,175 $27,230 YOY Change (excluding DISH) + 92% total + 65% excluding Interim Sites + 8% excluding Committed and Interim Sites $26,407 $47,739 (1) Existing leases includes the impact of escalators and amendments to existing leases. (2) Includes ~600 T-Mobile pre-MLA existing sites; 2025 includes ~$1.5M of DISH revenue, DISH has been removed starting Q1 '26. Existing Base T-Mobile Committed Sites DISH T-Mobile Interim Sites (temporary)
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Telephone and Data Systems. All Rights Reserved. 18 Tenantless (naked) towers T-Mobile has until January 2028 to finalize Committed Site selection, after which Array estimates owning between 1,000 - 1,700 tenantless (naked) towers Tower tenancy post T-Mobile integration 18 Executing simultaneously - Multi-year process Ongoing lease up efforts Ground rent rationalization Assess alternatives, including decommissioning
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Telephone and Data Systems. All Rights Reserved. 19 (1) 33 MHz and $20M of 600 MHz Put/Call signed in June (2) Quantification of mmWave MHz-Pops not included in the table 19 Reached agreements to monetize over 70% of Array's total spectrum holdings, measured on a MHz-Pops basis, including the T-Mobile transaction Opportunistically monetizing spectrum 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 CLOSED PENDING FUTURE OPPORTUNITIES T-Mobile AT&T Verizon T-Mobile Type MHz-Pop Type MHz-Pop Type MHz-Pop Type MHz-Pop Type MHz-Pop August 2025 January 2026 June 2026 August 2025 600 MHz (1) 361 3.45 GHz 1,250 Cellular 663 700 MHz (A Block) 44 CBRS 75 700 MHz (A Block) 319 700 MHz B/C 331 AWS 11 C-Band (3.7 GHz) 1,640 AWS 563 PCS 19 June 2026 28 GHz (2) PCS 443 600 MHz (1) 33 37/39 GHz (2) 2.5 GHz 50 24 GHz (2) May 2026 AWS 13 600 MHz (1) 200 700 MHz (A Block) 89 Other Companies September 2025 700 MHz 2 CBRS 3 C-Band 7
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Telephone and Data Systems. All Rights Reserved. 20 Non-controlling investment interests provide significant cash flow (Dollars in millions) 2023 2024 2025 (1)(2)(3) Six months ended June 30, 2026(4) Equity in earnings of unconsolidated entities $158 $161 $174 $75 Distributions from unconsolidated entities $150 $169 $216 $67 20 (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 $33 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. 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. ( 4 ) I n t h e f i r s t q u a r t e r 2 0 2 6 , e q u i t y i n c o m e w a s e l e v a t e d d u e t o p r i o r - p e r i o d a d j u s t m e n t s r e c o r d e d b y t h e m a n a g e r s o f c e r t a i n i n v e s t e e e n t i t i e s . R e g a r d i n g d i s t r i b u t i o n s , c e r t a i n entities distribute cash only twice per year, resulting in an uneven distribution pattern throughout the year.
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Telephone and Data Systems. All Rights Reserved. 21 Capital Expenditures - Towers 21 (Dollars in thousands) Year-to-date June 30, 2026 Tower builds and augmentation (1) $ 7,380 Purchase of land interests 2,650 Maintenance and other 2,511 Total $ 12,541 59%21% 20% Tower builds and augmentations Purchase of land interests Maintenance and other (1) This includes ~$5.2M related to one-time migration costs for tower lighting equipment after certain equipment conveyed to T-Mobile upon the sale of Array's wireless operations
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Telephone and Data Systems. All Rights Reserved. 22 ($ thousands) Q2'26 Q2'25 Change Site rental $ 53,175 $ 27,230 95 % Services 895 1,299 (31) % Total operating revenues 54,070 28,529 90 % Cost of operations 23,497 19,396 21 % Selling, general and administrative 22,906 19,337 18 % Expenses related to strategic alternatives review (7,391) (715) N/M Total cash expenses (1) 39,012 38,018 3 % Adjusted OIBDA (1) (Non-GAAP) 15,058 (9,489) N/M Equity in earnings of unconsolidated entities 34,726 41,714 (17) % Interest, dividend, and other income 6,418 3,701 73 % Adjusted EBITDA (1) (Non-GAAP) $ 56,202 $ 35,926 56 % Array operating performance (1) See appendix for explanation and reconciliation to most directly comparable GAAP measure. 22
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Telephone and Data Systems. All Rights Reserved. 23 2026 Array guidance(1) ($M) As of August 7, 2026 2026 Previous Estimates 2026 Current Estimates Total operating revenues $200-$215 $205-$215 Adjusted EBITDA (2) (Non-GAAP) $200-$215 $220-$235 Adjusted OIBDA (2) (Non-GAAP) $50-$65 $60-$75 Capital expenditures $25-$35 $25-$35 (1) There can be no assurance that final results will not differ materially from such estimated results. See Safe Harbor Statement on Slide 2. (2) See appendix for explanation. 23
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Appendix
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25 Adjusted OIBDA and Adjusted EBITDA Reconciliation Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 ($ in thousands) TDS Telecom Array TDS* TDS Telecom Array TDS* Net income (loss) from continuing operations (GAAP) $ (4,993) $ 337,447 $ 341,287 $ 16,084 $ 15,099 $ 14,208 Add back: Income tax expense (benefit) (1,909) 115,870 106,410 2,174 8,415 (4,224) Income (loss) before income taxes (GAAP) $ (6,902) $ 453,317 $ 447,697 $ 18,258 $ 23,514 $ 9,984 Add back: Interest expense 332 10,860 11,388 (960) 3,711 29,166 Depreciation, amortization and accretion expense 73,585 14,428 88,777 73,137 11,999 86,022 EBITDA (1) (Non-GAAP) $ 67,015 $ 478,605 $ 547,862 $ 90,435 $ 39,224 $ 125,172 Add back or deduct: Expenses related to strategic alternatives review — 7,391 8,648 — 715 758 (Gain) loss on asset disposals, net 4,960 3,809 8,769 6,206 (313) 5,906 (Gain) loss on sale of business and other exit costs, net — — — (8,104) — (7,879) (Gain) loss on license sales and exchanges, net (1,600) (409,833) (402,280) — (3,700) (3,700) Short-term imputed spectrum lease income — (23,770) (23,770) — — — Adjusted EBITDA (1) (Non-GAAP) $ 70,375 $ 56,202 $ 139,229 $ 88,537 $ 35,926 $ 120,257 Deduct: Equity in earnings of unconsolidated entities — 34,726 37,126 — 41,714 42,952 Interest and dividend income 463 6,431 19,631 1,693 3,701 6,110 Other, net 1,245 (13) 5,346 1,633 — 2,395 Adjusted OIBDA (1) (Non-GAAP) $ 68,667 $ 15,058 $ 77,126 $ 85,211 $ (9,489) $ 68,800 * The TDS column includes TDS Telecom, Array, corporate and other operations and intercompany eliminations. (1) See final slide for explanation.
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26 Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2026 Estimated Results and 2025 Actual Results 2026 Estimated Results Actual Results Year ended December 31, 2025 ($M) TDS Telecom TDS Telecom Net income (GAAP) N/A $28 Add back: Income tax expense N/A 10 Income (loss) before income taxes (GAAP) ($15)-$5 $38 Add back: Interest expense — (7) Depreciation, amortization and accretion expense 325 300 EBITDA (1) (Non-GAAP) $310-$330 $331 Add back or deduct: Expenses related to strategic alternatives review — 6 Loss on impairment of intangible assets — 1 (Gain) loss on asset disposals, net — 15 (Gain) loss on sale of business and other exit costs, net — (23) Adjusted EBITDA (1) (Non-GAAP) $310-$330 $330 Deduct: Interest and dividend income 5 6 Other, net 5 5 Adjusted OIBDA (1) (Non-GAAP) $300-$320 $319 In providing 2026 estimated results, TDS has not completed the below reconciliation to net income because it does not provide guidance for income taxes. TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, the company is unable to provide such guidance. Numbers may not foot due to rounding. (1) See final slide for explanation.
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27 Adjusted OIBDA and Adjusted EBITDA Reconciliation – 2026 Estimated Results and 2025 Actual Results 2026 Estimated Results Actual Results Year ended December 31, 2025 ($M) Array Array Net income from continuing operations (GAAP) N/A $172 Add back: Income tax expense (benefit) N/A (31) Income before income taxes (GAAP) $775-$790 $141 Add back: Interest expense 45 28 Depreciation, amortization and accretion expense 50 48 EBITDA (1) (Non-GAAP) $870-$885 $218 Add back or deduct: Expenses related to strategic alternatives review — 2 Loss on impairment of licenses — 48 (Gain) loss on asset disposals, net — 2 (Gain) loss on license sales and exchanges, net (585) (6) Short-term imputed spectrum lease income (65) (69) Adjusted EBITDA (1) (Non-GAAP) $220-$235 $194 Deduct: Equity in earnings of unconsolidated entities 145 174 Interest and dividend income 15 19 Adjusted OIBDA (1) (Non-GAAP) $60-$75 $1 In providing 2026 estimated results, Array has not completed the below reconciliation to net income because it does not provide guidance for income taxes. Array 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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28 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 25 through 27. 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 25 through 27 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. The tables on slides 25 through 27 reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes.