TDS TELEPHONE & DATA SYSTEMS INC /DE/

Overview and Growth

In fiscal 2025, TELEPHONE & DATA SYSTEMS INC /DE/ recorded $1.23B of revenue, net loss of $6.24M, and an operating cash inflow of $589.89M. At $1.23B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $4.84B in fiscal 2024, revenue decreased 74.6%, a top-line contraction that reduced operating scale. Diluted earnings per share were -$0.65, translating the period’s attributable earnings into the amount reported for each diluted share. The company employed $8.40B of total assets, the balance-sheet base supporting its current operating and cash-flow results. Asset turnover was 0.15x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Operations produced a $97.39M operating loss before non-operating and tax effects. The operating loss equaled 7.9% of revenue, showing the scale of the operating deficit relative to sales. The company ended the period with a net loss of $6.24M, extending the operating result through all remaining items. Net margin was -0.5%, reflecting a loss equal to 0.5% of reported revenue. EBITDA was $206.01M, adding a pre-interest, tax, depreciation, and amortization view of the company’s earnings capacity. Before income taxes, the company reported $88.96M of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 7.2%, adding a pre-tax profitability layer between revenue and net income. An income-tax benefit of $62.18M improved the final result relative to pretax income or loss. The effective tax-benefit relationship was 69.9% of positive pretax income. Relative to period-end equity, the net loss represented 0.1%. The loss-to-assets relationship was 0.1%, placing the bottom-line deficit against the company’s resource base. The net loss narrowed to $6.24M from $27.70M in fiscal 2024.

Liquidity and Capital Structure

At period end, the $8.40B asset base was financed through $3.13B of liabilities and $5.27B of equity. Current assets were $923.47M against $440.31M of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 2.1x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $765.95M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 174.0% of current liabilities, showing how much near-term coverage came from cash alone. Book equity represented 62.7% of total assets, quantifying the balance-sheet share supported by shareholder capital. The liabilities-to-assets relationship was 37.3%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 9.1%, comparing reported cash and equivalents with the full positive asset balance. The asset base changed 38.6% from $13.68B in fiscal 2024, leaving current total assets lower year over year. Against $5.87B of equity in fiscal 2024, the current book-equity balance moved 10.2% and ended lower. Compared with $363.61M in fiscal 2024, the current cash balance moved 110.7% and finished higher.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $589.89M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Capital expenditures used $390.53M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 66.2% of operating cash flow, leaving the remainder available as free cash flow. After capital spending, free cash flow was $199.36M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 16.2%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 2.4%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.