At a glance
Telephone and Data Systems Inc is worth $3.97B. Revenue fell 5.3% to $1.23B in fiscal 2025, at a loss. It pays a 0.46% dividend yield, and returned $776.7M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −12.4% over the past year with dividends reinvested and +16.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 39.5% in the 2020 crash (S&P 500: 33.7%) and 33.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 14 months and 11 months after the lows.
The business in plain English
Telephone and Data Systems (TDS) is a U.S. communications company with two businesses. The larger one, TDS Telecom, sells internet, TV, phone and wireless service to homes and to small and medium-sized businesses. As of December 31, 2025, it had 1.1 million connections in 30 states. Most are in small and mid-sized cities, suburbs and rural towns. Its main strategy is building fiber-optic lines with internet speeds of up to 8 gigabits per second. TV and landline phone connections are shrinking as customers cut the cord. TDS Telecom also earns wholesale revenue from other carriers and from government programs that support service in high-cost areas.
The second business is Array Digital Infrastructure, which used to be called United States Cellular. It rents space on 4,450 cell towers in 19 states to wireless carriers. Its largest tenants include T-Mobile, AT&T and Verizon. Array left the wireless phone business through a deal with T-Mobile that closed August 1, 2025. It has also agreed to sell spectrum licenses (rights to use radio airwaves) to Verizon and T-Mobile. TDS owned 82.0% of Array as of December 31, 2025.
TDS had $1.23 billion in revenue in fiscal 2025. TDS Telecom brought in about 84% of it and Array about 13%. All of the company's operations are in the United States.
Price history
The interactive chart needs JavaScript.
TDS -12.4% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Service | $1.04B | 85% |
| Site Rental | $154.7M | 12.6% |
| Equipment and product sales | $29.7M | 2.4% |
By business segment
| T D S Telecom Segment | $1.04B | 84.4% |
| Array | $162.8M | 13.3% |
| Array | $8.3M | 0.7% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $309.3M, up 3.6% from a year earlier, and net income was $298.4M (+2478.6%).
- For fiscal 2025, revenue was $1.23B (-5.3% year over year) with a -0.5% net margin.
Financial health check
| Operating margin | -7.9% weak |
|---|---|
| Free cash flow margin | 16.2% good |
| Return on equity (FY2025) | -0.1% weak |
| Return on assets (FY2025) | -0.1% weak |
| Net cash (cash minus debt) | $1.51B good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $5.22B | $226.0M | $194.0M |
| FY2021 | $5.33B | $156.0M | $-28.0M |
| FY2022 | $5.41B | $62.0M | $-6.0M |
| FY2023 | $1.36B | $-500.0M | $498.1M |
| FY2024 | $1.30B | $-27.7M | $780.4M |
| FY2025 | $1.23B | $-6.2M | $199.4M |
Valuation snapshot
| Market value | $3.97B |
|---|---|
| P/E ratio | — |
| Dividend yield | 0.46% |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| TDS price data to Oct 28, 2026 | -15.6% | -12.4% | +26.1% | +16.5% | +5.9% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -15.6% |
| 2025 | +20.7% |
| 2024 | +89.1% |
| 2023 | +86.6% |
| 2022 | -45.3% |
| 2021 | +12.2% |
| 2020 | -24.3% |
| 2019 | -19.9% |
| 2018 | +19.6% |
| 2017 | -1.4% |
| 2016 | +13.9% |
| 2015 | +4.7% |
| 2014 | +0.0% |
| 2013 | +18.9% |
| 2012 | -12.7% |
| 2011 | -27.9% |
| 2010 | +9.2% |
| 2009 | +8.4% |
| 2008 | -48.7% |
| 2007 | +16.0% |
| 2006 | +52.1% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 64.7% over that stretch · deepest drop along the way 67.6%, back to its old high 207.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 37.6% over that stretch · deepest drop along the way 39.5%, back to its old high 13.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 28.2% over that stretch · deepest drop along the way 33%, back to its old high 10.7 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 1 sales ($3.0M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 11, 2026 | Leroy T Jr Carlson Vice Chair, Director | sell | $3.0M |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 13.8% | Mar 31, 2025 |
| PICTON MAHONEY ASSET MANAGEMENT | 11.2% | Jun 30, 2026 |
| Picton Mahoney Asset Management | 10.06% | Mar 31, 2026 |
| Vanguard Portfolio Management | 5.92% | Mar 31, 2026 |
| Third Point LLC | 5.7% | Dec 17, 2024 |
ETFs with the most weight in TDS
| PSCU Invesco S&P SmallCap Utilities & Communication Services ETF | 5.36% |
| XTL SPDR S&P Telecom ETF | 4.49% |
| PTF Invesco Dorsey Wright Technology Momentum ETF | 3.77% |
| BOUT Innovator IBD Breakout Opportunities ETF | 2.73% |
| NIXT Research Affiliates Deletions ETF | 1.86% |
| FDLS Inspire Fidelis Multi Factor ETF | 1.08% |
| BSVO EA Bridgeway Omni Small-Cap Value ETF | 1.08% |
| AVUV Avantis U.S. Small Cap Value ETF | 0.82% |
What could go wrong
- Tower business leans heavily on T-Mobile. When the T-Mobile deal closed on August 1, 2025, T-Mobile signed a master lease for Array towers. Its leases run at least 15 years. Array's business depends heavily on T-Mobile keeping those commitments.
- Empty towers could be costly to retire. It is unclear which towers T-Mobile will keep. Array may have to pay to take down towers left without tenants, including leftover ground-lease payments. Restructuring and wind-down costs add to this.
- Spectrum sales might not close. Array agreed to sell spectrum licenses (rights to radio airwaves) to Verizon and T-Mobile. Its annual report filed February 24, 2026 warned these deals might not be completed. Unsold spectrum keeps costing money.
- Fiber build-out could be delayed or fall short. TDS is building fiber and upgrading its IT systems. If these projects are delayed or fail, operations and growth could suffer. It competes with cable companies, newer fiber networks and wireless providers.
- Small player with shrinking legacy lines. TDS is much smaller than rivals that have more money. Its TV connections are falling as customers cut the cord. Landline phone use keeps shrinking, and competitors push prices down.
- Voting trust controls the company. Trustees of the TDS Voting Trust hold over 50% of the votes that elect a majority of directors. Outside shareholders have little say, and this setup can discourage a takeover.
Recent events
- Other company announcement
- Quarterly results released
- Acquisition or sale of assets completed; Other company announcement
- Shareholder vote results
- Quarterly results released
- Other company announcement
- Executive or board change
- Executive or board change
- Quarterly results released
- Acquisition or sale of assets completed; Other company announcement
For income and retirement investors
TDS pays a dividend, but it has been shrinking. Regular dividends per share fell from $0.74 in 2023 to $0.31 in 2024 and $0.16 in 2025. That is a drop of about 25% a year since 2020. The yield was 0.46% as of October 28, 2026. TDS lost money in 2025, so earnings did not cover the dividend. Dividends did use about 44% of free cash flow (cash from operations left after capital spending). TDS also spent $108 million buying back shares in 2025. Investors who rely on rising income may find little here.
The share price has fallen hard in market slumps. It dropped about 68% in the 2008 financial crisis and did not get back to its 2007 peak until January 30, 2026. It fell about 40% in the 2020 COVID crash and 33% in the 2022 bear market. It recovered in roughly 14 and 11 months. Single stocks carry more risk than diversified funds.
Questions investors ask
How does TDS make money?
Mostly by selling internet, TV, phone and wireless service through its TDS Telecom unit. TDS had $1.23 billion in revenue in fiscal 2025. Service revenue made up 85%, cell tower rent 12.6% and equipment and product sales 2.4%. By segment, TDS Telecom brought in about 84% and Array, the tower business, about 13%. As of December 31, 2025, TDS Telecom had 1.1 million connections in 30 states, mostly in small and mid-sized towns, suburbs and rural areas.
What happened to U.S. Cellular?
It became Array Digital Infrastructure. United States Cellular took the Array name on August 1, 2025. That was the same day it closed a deal with T-Mobile and left the wireless phone business. Array rents out space on its towers, and T-Mobile committed to leases of at least 15 years. As of December 31, 2025, Array owned 4,450 towers in 19 states. TDS owned 82.0% of Array's shares and controlled 95.9% of the vote. Array trades on the New York Stock Exchange as AD.
Did TDS cut its dividend?
Yes. TDS paid regular dividends of $0.74 per share in 2023, then $0.31 in 2024 and $0.16 in 2025. Before the cuts, the dividend had risen a little each year from $0.68 in 2020. The yield was 0.46% as of October 28, 2026. In 2025, dividends used about 44% of free cash flow. The company also spent $108 million buying back its own shares that year.
Is TDS profitable?
Not in fiscal 2025. TDS reported a net loss of $6.2 million, or $0.65 per diluted share. Its operating loss was $97 million on revenue of $1.23 billion, which was down 5.3%. It also lost money in 2023 and 2024. Still, it produced $199 million of free cash flow (cash left after capital spending). For the quarter ended June 30, 2026, net income was $298 million on revenue of $309 million. On that date, cash and investments of $2.19 billion were more than its $680 million of debt.
Who controls TDS?
The TDS Voting Trust. Its trustees hold over 50% of the votes that elect a majority of TDS's directors. That makes TDS a “controlled company” under New York Stock Exchange rules, and it limits the say of outside shareholders. Large investment firms also hold big stakes. BlackRock reported 13.8% as of March 31, 2025. Picton Mahoney Asset Management reported 11.2% as of June 30, 2026, and Vanguard reported 5.92% as of March 31, 2026.