This article first appeared on GuruFocus .
Release Date: November 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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TDS Telecom delivered a record 76,000 marketable fiber service addresses in Q3 2026, the best third quarter in company history, with fiber now passing 63% of its footprint.
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Residential fiber net adds reached approximately 17,000 in Q3, up 50% year over year and the highest quarterly result in company history, driven by footprint expansion and copper-to-fiber conversions.
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Fiber revenue grew 14% year over year, largely offsetting legacy revenue pressures, and fiber connections have grown 81% over the past three years, outpacing fiber footprint growth.
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TDS virtually exhausted its prior $520 million share repurchase authorization and the board approved an additional $250 million open authorization, reflecting confidence in intrinsic value.
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Array Digital Infrastructure achieved 20% year-over-year growth in cash site rental revenue (adjusted for DISH and T-Mobile interim site revenue), with 7% organic growth excluding the T-Mobile MLA, and refined its tenantless tower estimate to 1,200-1,600.
Negative Points
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TDS Telecom lowered its 2026 total revenue guidance to $990 million-$1.01 billion and adjusted EBITDA guidance to $290 million-$310 million, as fiber revenue growth has not yet offset legacy declines.
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Total operating revenues declined 3% in the quarter (1% excluding divestitures) due to continued legacy revenue stream pressures, and cash expenses increased 4% on inflation and expansion costs.
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Capital expenditures guidance increased by $100 million to approximately $750 million, driven by pull-forward spend, higher EACAM build costs, and a shift to more buried construction.
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Cable revenues declined 7% year over year (10% excluding a one-time benefit), reflecting continued competitive pressures in cable markets.
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TDS withdrew its offer to acquire the minority interest of Array in an all-stock transaction after the parties could not agree on value and consideration, leaving strategic benefits unrealized for now.
Q & A Highlights
Q: On the TDS Telecom side, copper revenue is down about $10 million year over year and down sequentially. How do you stem that trend, and when does the total business inflect to revenue and EBITDA growth? A: Ken Dixon, President and CEO of TDS Telecom, said the EACAM program is core to the strategydeploying fiber into EACAM markets and picking up copper-served addresses along the route. He noted record construction crews and the largest pipeline of addresses going into Q4. Chris Bothfeld, VP of Financial Analysis and Strategic Planning, added that fiber revenue growth was expected to more than offset legacy declines in the second half of 2026, but the company is still working toward that inflection point, which he said is "around the corner," not years away.
Q: How do you think about EBITDA turning around and returning to growth given the heavy CapEx investment? A: Chris Bothfeld explained that revenue growth is key to EBITDA, and the company is working toward the revenue inflection point that will drop to the bottom line. He also noted TDS remains on pace to deliver $100 million in run-rate benefits from transformation initiatives by year-end 2028, which along with accelerated fiber revenue growth should help turn EBITDA around.
Q: How many DISH sites did Array have, and how might satellite companies entering terrestrial networks impact the tower business? A: Anthony Carlson, President and CEO of Array, said Array had about 330 DISH sites that are no longer paying and are in the process of being decommissioned. He declined to comment on specific satellite companies but said Array's assets are attractive to anyone building terrestrial networks. He views additional major terrestrial carriers as broadly bullishmore carriers means more tower leasing revenueand said satellite direct-to-device services are complementary rather than a replacement for terrestrial networks.
Q: What is the competitive landscape from fixed wireless and satellite, and how do you view long-term penetration and ARPU? A: Ken Dixon said TDS is not seeing a material impact from satellite where it has deployed fiber, pointing to a 20-basis-point year-over-year improvement in fiber churn during mover season and a record ~17,000 fiber net adds. He said data consumption is growing double digits and fiber is the best solution, especially with AI usage in the home, and that multi-gig PON capabilities should support ARPU increases over time. Chris Bothfeld added that expansion markets consistently hit ~25% penetration by month 12, with a 40% steady-state target in mature markets and 65%75% targeted penetration in EACAM markets.
Q: Given the failed TDS-Array combination, what circumstances could lead TDS to try again, and would Array monetizing its spectrum make a deal easier? A: Walter Carlson, President and CEO of TDS, declined to comment on specific future plans but said the benefits of a combination would be meaningful, which is why TDS made the offer. He said TDS does not proceed when terms and price cannot be agreed, and while he cannot predict the future, there may be circumstances where it makes sense to try again. He emphasized TDS is now focused on building both businesses successfully and has already removed significant duplicative costs from running Array and TDS separately.
Q: Are there concerns about building fiber too fast, and how do you balance build pace with go-to-market execution? A: Ken Dixon said EACAM milestonesincluding another 25% of locations next yearset the build pace, and the program comes at the perfect time to address copper revenue challenges. He said the strategy is to be first to fiber, including 300,000 additional edge-out addresses, and that TDS has added door-to-door vendor capacity, shifted volume toward the lowest-cost dot-com channel, and brought in new MDU leadership, with benefits already emerging.
Q: Can you provide more color on spectrum monetization efforts, interest in C-band, and how SpaceX's potential terrestrial ambitions affect buyer discussions? A: Anthony Carlson said there is no further specific update on monetization efforts but reiterated that C-band is a very attractive assetavailable now, with an existing ecosystem and an expanded position that creates opportunity around the upcoming auction. He said Array continues to view it as attractive to a wide range of potential buyers.
Q: What drove the updated 2026 guidance for TDS Telecom, including lower revenue and EBITDA and higher CapEx? A: Chris Bothfeld said total telecom revenue is now projected at $990 million to $1.01 billion, with adjusted EBITDA of $290 million to $310 million, as lower revenue falls to the bottom line and costs rise to support extended service hours in fiber build areas. CapEx guidance rose by $100 million to approximately $750 million, with nearly half of the increase a pull-forward of future spend expected to contribute to 2027 address delivery, and the remainder largely from higher EACAM build costs and a pivot to more buried construction in expansion markets.
Q: What is the status of Array's tenantless tower estimate and ground lease optimization efforts? A: Anthony Carlson said Array refined its estimate to 1,200 to 1,600 tenantless towers following T-Mobile's integration, noting T-Mobile has until January 2028 to designate committed sites under the new MLA. He said Array is focused on ground lease optimizationreducing lease costs on likely tenantless towers, identifying uneconomic sites for decommissioning, and accelerating its ground lease buyout program to expand tower-level margins and reduce portfolio risk.
Q: How is Array's revenue trending when adjusting for DISH and the T-Mobile MLA? A: Anthony Carlson said that adjusting for DISH and excluding T-Mobile interim site revenue, cash site rental revenue increased 20% year over year, and grew 7% year over year after also fully excluding the T-Mobile MLA, demonstrating strong organic growth. He said the leasing pipeline and sustained application activity support healthy revenue growth expected to partially offset declining interim site revenue over time.
Q: What is the status of TDS's share repurchase program following the termination of the Array offer? A: Vicki Villacrez, Executive Vice President and CFO of TDS, said TDS has virtually exhausted its prior $520 million share repurchase authorization, viewing the buybacks as an excellent use of capital given recent share prices and intrinsic value. The TDS board approved an additional $250 million open authorization that
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
