Array Digital Infrastructure Inc

TDS Telecom reported Q1 total operating revenues down 3% year over year, or down 1% excluding divestitures. Residential fiber revenue increased 13% year over year, about $11 million higher, while total residential revenue declined $5 million, including about $3 million from divestitures of copper-based markets. Cash expenses decreased 3%, adjusted EBITDA declined 3%, and capex was $126 million. For 2026, TDS Telecom reaffirmed revenue guidance of $1.015 billion to $1.055 billion, adjusted EBITDA of $310 million to $350 million, and capex of $550 million to $600 million, with 200,000 to 250,000 new fiber service addresses targeted. Array Digital Infrastructure said Q1 cash site rental revenue rose 55% year over year, or 64% normalized for DISH, and 86% year over year including T-Mobile interim site revenue, or 98% normalized for DISH. Array said guidance for total operating revenue, adjusted EBITDA, OIBDA, and capex was unchanged. No EPS or gross margin figures were stated on the call.

Walter Carlson framed the quarter around execution on TDS’ transformation strategy, emphasizing simplification, capital discipline, and growth in fiber and towers. He also highlighted the proposal to acquire the rest of Array as a way to eliminate duplicative corporate costs, streamline governance, increase liquidity, and strengthen the capital structure. His tone was confident and matter-of-fact, with an emphasis on long-term growth and limited comment beyond the announced transaction.

Vicki Villacrez focused on capital allocation and discipline, saying TDS is prioritizing fiber buildout, disciplined M&A, and share buybacks. She pointed to 40,000 fiber service addresses delivered in the quarter, reiterated the $520 million share repurchase authorization still available at quarter-end, and said the Granite State acquisition is a small, accretive, adjacent fiber tuck-in with over 11,000 service addresses and a third-quarter closing target. Chris Bothfeld added that telecom cash expenses were down 3%, adjusted EBITDA down 3%, and capex was $126 million, while 2026 guidance remained unchanged; he said the company is still on track for $100 million of run-rate savings by year-end 2028, with bigger benefits expected in 2027 and 2028 and some savings being reinvested.

Analysts pressed management on whether TDS fiber could eventually be put into a REIT or REIT-like structure, but Vicki said current structural options are not optimal and declined to speculate on future choices. Questions also focused on disclosure around fiber cohort trends, the ownership percentage TDS holds in Array, and the Granite State deal; management said more fiber metrics were added this quarter, Walter said TDS ownership of Array is roughly 81.9%, and Vicki said Granite is a small, accretive, fully fibered tuck-in aligned with clustering. On the tower side, analysts asked about high-rent relocations, spectrum monetization, and partnership stakes; Anthony Carlson said high-rent relocation economics are not compelling versus optimizing the existing portfolio, that no urgent sale of C-band is planned, and that partnership interests would only be sold for full value net of taxes.