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Telephone and Data Systems, Inc. (TDS) provides high-quality communications services to customers through its wholly-owned subsidiary TDS Telecommunications LLC (TDS Telecom) with 1.1 million broadband, video, voice and wireless connections at December 31, 2025. TDS leases tower space to tenants and provides ancillary services, holds noncontrolling interests in primarily wireless operating comp…
The business is unprofitable at the operating level (-7.93% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 5.3% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 74% versus the prior year, cash generation momentum has weakened.
Profitability & Returns
Revenue (TTM)
$1.25B
▼ -5.3% YoY
Net Income (TTM)
$131M
▲ +77.5% YoY
Op. Margin
6.44%
▲ +6.8pp YoY
ROIC
1.13%
▲ +0.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$3M
▼ -74.5% YoY
Op. Cash Flow (TTM)
$472M
▼ -48.5% YoY
Net Debt
-$112M
Net Cash Position
Cash & Equiv.
$1.37B
5Y CAGR: -25.1%
5Y CAGR: +0.5%
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