Array Digital Infrastructure, Inc. Q1 FY2026 earnings call

• TDS proposed to acquire the remaining shares of Array Digital Infrastructure, Inc. in an all - stock transaction, aiming to simplify corporate structure and enhance growth ability. - TDS Telecom continued to add fiber addresses and customers, delivered 40,000 fiber service addresses in the quarter, and signed an agreement to acquire Granite State Communications. - Array Digital Infrastructure, Inc. had cash site rental revenue growth, made progress in tower tenancy and spectrum monetization, with some spectrum transactions moving forward. - TDS Telecom focused on fiber growth plan, including building fiber addresses, driving fiber sales, and operational transformation, and completed billing conversion in cable markets and introduced new FieldForce platform.

TDS Telecom: In the first quarter, delivered 40,000 marketable fiber service addresses, the highest first - quarter total in company history, nearly three times that of 2025. Residential fiber net adds were approximately 11,000 in the first quarter, a 32% increase compared to prior year. Fiber revenue was up 13% versus prior year, an uplift of approximately $11 million. Cable revenues were down roughly 10% versus 2025. Array Digital Infrastructure, Inc.: Cash site rental revenue was up 64% over Q1 of last year, and saw sequential tower tenancy growth when adjusted for DISH.

• TDS projects total telecom revenues of $1.015 billion to $1.055 billion, adjusted EBITDA between $310 million and $350 million, and capital expenditures between $550 million and $600 million to support delivery of 200,000 to 250,000 new fiber service addresses. - Array Digital Infrastructure, Inc. guidance across all metrics - total operating revenue, adjusted EBITDA and OIBDA, and capital expenditures - unchanged, with spectrum transactions progress depending on regulatory approval.

• DISH Wireless' non - payment and breach of master lease agreement impact. - Uncertainty in regulatory approval for spectrum sales. - Market competition pressures on cable business.

Q: On the fiber side, the TDS Telecom side, have you looked at is there an ability to put fiber into a REIT structure or any desire at some point to put fiber into a REIT - like structure to be more tax efficient?

A: Vicki noted they have looked at structural options but not optimal currently, focused on funding fiber with cash, and added disclosures on residential revenues by technology.

Q: Can you update us as far as the number of shares or percent ownership TDS has of Array Digital Infrastructure, Inc.?

A: Walter said roughly 81.9% ownership.

Q: Any update to what you think you could provide or help people understand what is happening with the fiber business as far as any cohort analysis or any trend lines?

A: Ken mentioned key metrics are build velocity and fiber net performance.

Q: Sticking with TDS Telecom and Ken for a second here. You hired some sales folks and customer experience to help support your priorities. Maybe just help us think about where you are from a process improvement standpoint or trying to instill some of your decades of experience running fiber businesses into TDS Telecom.

A: Ken talked about being in early innings, bullish on service addresses with large funnel, progress in sales and customer experience, and investment in cable business for multi - gig.

Q: For Chris, a question about the cost transformation efforts. Remind us - is that $100 million run - rate by 2028 still the right figure to think about? And are we at a point now where the cost savings are falling to the bottom line here in 2026, or is there some reinvestment going back into the business to contextualize the cost program?

A: Chris said remain on track to hit $100 million run - rate savings by year - end 2028, starting to see benefits in 2026 but some savings reinvested.

Q: The upcoming auction for the AWS - 3 re - auction and then upper C - band coming next year - any change in your conversations regarding monetization of the remaining C - band and CBRS?

A: Anthony said continue to believe C - band spectrum is valuable, not forced seller, no further updates on C - band sale.

Q: Question - just want to make sure on the service addresses, Ken. Is the build plan still this year targeting 200,000 to 250,000 service addresses, and what would cause you to miss it versus hit it or beat it?

A: Ken said still target, confident based on crew counts and funnel.

Q: And, Anthony, one of the themes was the high rent relocation effort some of the carriers are looking at. Assume you do not have a whole lot of high rent locations given the low level of tenancy, but what are you seeing out there on that? Do you have an appetite to do some new builds? What is the ability or capital commitment that you might put to work there?

A: Anthony said laser - focused on optimizing current assets, not seeing high rent relocation impact much, not in a hurry for new builds.

Q: One for Walter - an obligatory satellite question. As you think about your assets, broadband with fiber and towers supporting the wireless world, how are you thinking about the somewhat existential threat of satellite coming into terrestrial?

A: Walter said satellites will influence communications industry, but feel strongly about terrestrial tower portfolio and fiber networks.

Q: First question on the TDS Telecom side. Last quarter, you expanded the fiber build target by 300,000 edge - out passings in, I believe, 50 adjacent markets to your current expansion footprint. How do the demographics and the return profiles of these markets compare to your older cohorts? And among this new cohort of markets, what types of markets are you prioritizing for a build sooner rather than later?

A: Ken said looking at markets where they have planted flag, prioritized based on demographics, market, competitive intensity, build cost and return rates.

Q: In terms of cable, maybe following up on the previous question - can you talk a little bit about what you like the most about your cable footprint? Maybe comment on the competitive environment. And in terms of investments you are planning to make, at a high level, where will the dollars go, and how quickly do you expect those investments to pay off?

A: Ken said focus on multi - gig in cable business, markets are attractive with high housing growth, dollars go to multi - gig, expect to pay off in 2026.

Q: A question on the Array Digital Infrastructure, Inc. side. The wireless partnerships produce nice cash flow for you every year, and you are focused on optimizing your tower business and monetizing spectrum. Any updated thoughts on partnerships? If you look at some recent transactions, the last transaction of size was Verizon acquiring minority stakes in some partnerships consolidated at about 11.5x cash distributions. At this multiple, your stakes could be worth a significant amount. Any updated thoughts on monetizing those stakes, and what could potentially move you closer to taking that step?

A: Anthony said like cash flows from assets, have challenges with transactions due to low tax basis, open to offers delivering full value net of taxes.

Q: Last question also on the Array Digital Infrastructure, Inc. side. EBITDA is expected to be somewhat depressed in the medium term, pressured by transition wind - down costs and some other costs. Can you talk about your targets, qualitatively and quantitatively, in terms of taking cost out of the business and improving margins in 2026 and 2027, and longer term post T - Mobile transition what kind of margins do you believe are realistic for Array Digital Infrastructure, Inc.?

A: Anthony said significant opportunity to improve margins, focus on tower cash flow, opportunities in land ownership and transition from maintenance posture, and expanding margins by increasing collocations.