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• Fiber Network Expansion and Transformation (TDS Telecom)

  • Delivered ~66,000 new marketable fiber service addresses in Q2 2026, bringing the first half total to ~106,000 — the strongest first half delivery in company history, exceeding the build volume of H2 2025 (the typical peak construction period).
  • TDS is the largest recipient of the federal EACAM program, which supports rural broadband deployment. The company already met its 2026 EACAM obligations in three states and has record crew counts in remaining markets to hit 2026 milestones, with plans to pass 300,000 total addresses in its incumbent footprint via the program.
  • Operational transformation initiatives are on track: technicians now use a unified platform across all markets to simplify back-office processes and improve customer experience, with additional enhancements scheduled for completion in H2 2026.
  • Fiber expansion breakdown: new expansion markets are 100% fiber; 52% of incumbent market addresses are already fiber-overbuilt, with 300,000 additional addresses scheduled for fiber upgrade over the next two years; 22% of cable market addresses are already fiber-served, with continued economical expansion planned.

• M&A and Shareholder Returns (TDS)

  • TDS remains committed to disciplined, accretive M&A aligned with its fiber clustering strategy, focused on small-to-medium sized opportunities that are already fully fibered or have an accretive path to all-fiber. A binding agreement to acquire Granite State Communications was announced in mid-April, on track for a Q3 2026 close, which will add 11,000 fully fibered service addresses.
  • TDS paid a steady modest quarterly dividend; Array issued a special $11 per common share dividend in the quarter. TDS suspended share repurchases in Q2 due to legal restrictions tied to its pending offer for outstanding Array shares, with $520 million remaining in repurchase authorization to be executed once restrictions lift and market conditions permit.

• Tower and Spectrum Operations (Array)

  • Array is focused on optimizing tower operations and monetizing its remaining spectrum holdings. DISH stopped contract payments in December 2025 and filed for bankruptcy, so Array ceased recognizing DISH revenue in Q1 2026 and fully reserved all outstanding DISH balances, removing DISH co-locations from tenancy ratio calculations.
  • T-Mobile integration is progressing per plan, with T-Mobile required to complete its 2015 committed sites under the new MLA by January 2028. Array narrowed its projected range of tenantless towers post-integration to 1,000 to 1,700.
  • Ground lease optimization for tenantless towers is a top priority, a multi-year effort focused on cost avoidance, lease up, and decommissioning sites with no path to economic viability, which is already underway.
  • The special committee of independent directors is evaluating TDS's proposal to acquire outstanding Array shares, with no further comment available on the process during the call.
  • Array insourced its sales team over the past 18 months and launched a new vertical sales business for non-carrier tenants (including high-speed traders, WISPs, and utilities), driving solid traction for new co-locations.

• TDS Telecom 2026 guidance: Total projected revenues were revised downward to $1 billion to $1.025 billion, driven by faster-than-expected legacy copper and cable revenue declines. Adjusted EBITDA guidance was narrowed to $310 million to $330 million, reflecting the impact of legacy headwinds on the bottom line.
• TDS Telecom increased 2026 new fiber service address delivery guidance by 50,000, to a new range of 250,000 to 300,000 addresses. Capital expenditure guidance was increased to $625 million to $675 million to support this accelerated build.
• Array 2026 guidance: Total operating revenue guidance was adjusted to a new range of $205 million to $215 million (up from $200 million to $215 million, increasing the lower bound) driven by higher-than-expected T-Mobile entrance site revenue. Capital expenditure guidance remained unchanged.
• Array increased adjusted OIBDA guidance to $60 million to $75 million, up from $50 million to $65 million, reflecting higher revenue and modestly lower operating expenses tied to the current pace of T-Mobile integration. Adjusted EBITDA guidance was increased to $220 million to $235 million, up from $200 million to $215 million, driven by higher OIBDA, higher expected equity income, and higher expected interest/dividend income.

TDS Telecom:

• Total operating revenues declined 6% year-over-year (4% when excluding divestiture impacts). Half of the year-over-year decline comes from discrete 2025 wholesale revenue adjustments, with the remainder driven by legacy copper and cable revenue declines, partially offset by fiber growth.
• Residential fiber revenue grew 13% ($11 million) year-over-year, while cable revenues declined 10% and copper revenues continued to decline faster than expected. Total residential revenue declined $6 million year-over-year, $2 million of which came from copper-focused divestitures.
• Residential fiber net adds were 15,100 in the quarter, up 47% year-over-year. Residential fiber connections have nearly doubled over the past three years, outpacing fiber footprint growth.
• Residential revenue per fiber connection increased 1% year-over-year, as annual price increases offset industry-wide video attachment rate declines.
• Cash expenses were flat year-over-year: cost savings from transformation initiatives offset higher expansion support costs and inflation. Adjusted EBITDA declined due to top-line pressure from divestitures and legacy revenue headwinds.
• Capital expenditures totaled $179 million in the quarter, driven by higher fiber construction activity.
• TDS Telecom ended the quarter with nearly 1.2 million fiber service addresses, representing 60% of its total footprint, with 80% of addresses capable of gigabit speeds.

Array (tower and spectrum business):

• Cash site rental revenue increased 55% year-over-year, and 65% when normalized for the DISH bankruptcy impact. Including T-Mobile interim site revenue, growth was 81% year-over-year (92% normalized for DISH).
• Sequential tenancy ratio growth continued after excluding non-revenue DISH co-locations, with steady underlying improvement in tenant demand.
• Array closed $1.168 billion in spectrum transactions during the quarter: a $168 million sale to T-Mobile and a $1 billion sale to Verizon, bringing total closed monetization of Array's spectrum holdings to ~70%.
• Adjusted OIBDA benefited from higher expected revenue and lower operating expenses tied to T-Mobile integration pacing, driving upward guidance revision.

• Faster-than-expected revenue declines in legacy copper and cable segments create ongoing top-line and adjusted EBITDA headwinds for TDS Telecom.
• Satellite broadband could create incremental competitive pressure for TDS's rural fiber deployments, though management has not observed material impact to date in already fiber-deployed markets.
• Increased fiber overbuild activity in TDS's existing cable footprints creates incremental competitive risk, though management still sees viable economical paths to fiber expansion in most of these markets.
• DISH's bankruptcy removed all expected revenue from DISH co-locations, requiring a full reserve of outstanding balances and distorting near-term tenancy ratio metrics for Array.
• T-Mobile integration pacing creates interim revenue volatility for Array, as interim site revenue is expected to decline as T-Mobile completes its network integration.
• There is ongoing bid-ask spread for existing minority infrastructure investments held by Array, limiting near-term monetization options for these assets at valuations management considers fair.

Q: What competitive impact does satellite broadband have on TDS's fiber business and Array's tower business, particularly in rural markets? / A: TDS has not seen material competitive impact from satellite in markets where it has already deployed fiber, and continues to see strong fiber demand, especially in EACAM rural copper markets. TDS is accelerating its fiber build to be first to market in these areas, which it views as the best strategic response to any new competition. Array notes that terrestrial macro towers remain the most efficient and reliable foundation for mobile data delivery, and it sees ongoing strong demand for its rural tower assets.

Q: When will TDS resume share repurchases, and what is the status of Array's remaining C-band spectrum monetization? / A: TDS remains committed to resuming its $520 million remaining share repurchase authorization as soon as legal restrictions from the pending Array acquisition are lifted and market conditions allow, but cannot speculate on timing. Array says C-band is a valuable 5G asset with a mature existing ecosystem, is not a forced seller, and will opportunistically pursue sales when permitted by regulation. It is encouraged by recent auction results that support strong C-band valuations.

Q: What is the outlook for the implied EBITDA inflection in the second half of 2026 for TDS Telecom, and will this momentum persist? / A: The inflection is driven by two key factors: accelerating 13% year-over-year fiber revenue growth that will pick up further with increased fiber address delivery in H2, and cost savings from TDS's operational transformation that offset inflation and sales investment costs, guiding to a 2% full-year cost reduction. Management confirms that this momentum from fiber growth and cost transformation is expected to persist into 2027.

Q: How has fiber M&A valuation changed, and what is Array's approach to tower M&A? / A: TDS continues to actively pursue small-to-medium fiber opportunities, focusing on assets with strong density, favorable clustering opportunities, and a viable accretive path to full fiber. The recent signed agreement for Granite State Communications reflects TDS's discipline on valuation, only pursuing deals that meet its financial criteria. Array says private market tower valuations are currently too high to justify acquisitions, and it prefers to deploy capital to internal initiatives like ground lease optimization instead.