Revenue contraction of 73.2% year-over-year in 2026Q1 highlights a radical business model shift, while operating margins remain pressured at -1.2% due to ongoing restructuring costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.13B | 1.23B | 4.96B | 5.16B | 5.41B | 5.33B | 5.22B | 5.18B | 5.11B | 5.04B | 5.1B | 5.18B | 5.01B | 4.9B | 5.35B | 5.18B | 4.99B | 5.02B | 5.09B | 4.83B | 4.36B | 3.96B | 3.72B | 3.45B | 2.99B | 2.59B | 2.33B | 1.96B | 1.81B | 1.47B | 1.21B |
| Revenue Growth % | -56.04% | -75.26% | -3.8% | -4.67% | 1.58% | 1.99% | 0.95% | 1.31% | 1.29% | -1.18% | -1.4% | 3.33% | 2.21% | -8.31% | 3.18% | 3.88% | -0.67% | -1.4% | 5.45% | 10.64% | 10.21% | 6.44% | 7.99% | 15.4% | 15.33% | 11.25% | 18.53% | 8.72% | 22.71% | 21.15% | 27.26% |
| Cost of Goods Sold | 1.26B | 1.29B | 2.13B | 2.33B | 2.56B | 2.47B | 2.35B | 2.34B | 2.34B | 2.36B | 2.43B | 2.41B | 2.51B | 2.23B | 2.27B | 2.04B | 1.91B | 1.86B | 1.85B | 1.7B | 1.54B | 1.42B | 1.3B | 1.18B | 2.6B | 2.15B | 1.51B | 1.25B | 1.42B | 1.17B | 828.9M |
| COGS % of Revenue | - | 105.05% | 43.01% | 45.23% | 47.39% | 46.39% | 45.05% | 45.15% | 45.72% | 46.77% | 47.59% | 46.65% | 50.13% | 45.4% | 42.52% | 39.4% | 38.33% | 37.13% | 36.4% | 35.13% | 35.32% | 35.87% | 35.05% | 34.33% | 87.06% | 83.15% | 64.79% | 63.79% | 78.48% | 79.76% | 68.24% |
| Gross Profit | 874.89M | -62M | 2.83B | 2.83B | 2.85B | 2.86B | 2.87B | 2.84B | 2.77B | 2.69B | 2.67B | 2.76B | 2.5B | 2.68B | 3.07B | 3.14B | 3.08B | 3.16B | 3.24B | 3.13B | 2.82B | 2.54B | 2.42B | 2.26B | 386.36M | 436.15M | 819.21M | 710.8M | 388.6M | 297.9M | 385.7M |
| Gross Margin % | 40.98% | -5.05% | 56.99% | 54.77% | 52.61% | 53.61% | 54.95% | 54.85% | 54.28% | 53.23% | 52.41% | 53.35% | 49.87% | 54.6% | 57.48% | 60.6% | 61.67% | 62.87% | 63.6% | 64.87% | 64.68% | 64.13% | 64.95% | 65.67% | 12.94% | 16.85% | 35.21% | 36.21% | 21.52% | 20.24% | 31.76% |
| Gross Profit Growth % | - | -102.19% | 0.11% | -0.77% | -0.32% | -0.49% | 1.13% | 2.38% | 3.28% | 0.37% | -3.13% | 10.54% | -6.65% | -12.91% | -2.12% | 2.08% | -2.57% | -2.53% | 3.38% | 10.97% | 11.15% | 5.11% | 6.8% | 485.56% | -11.42% | -46.76% | 15.25% | 82.91% | 30.45% | -22.76% | 15.79% |
| Operating Expenses | 898.38M | 0 | 2.77B | 3.24B | 2.73B | 2.6B | 2.61B | 2.66B | 4.91B | 4.89B | 5.04B | 5.04B | 5.21B | 5.19B | 2.85B | 4.82B | 4.7B | 2.72B | 4.55B | 2.6B | 2.41B | 2.14B | 2.2B | 1.95B | 984.95M | 1.26M | 399.14M | 353.3M | 409.5M | 301.6M | 231.6M |
| OpEx % of Revenue | - | - | 55.72% | 62.79% | 50.36% | 48.71% | 49.99% | 51.39% | 96.16% | 96.93% | 98.69% | 97.36% | 104.08% | 105.92% | 53.27% | 93.02% | 94.18% | 54.11% | 89.35% | 53.94% | 55.22% | 54.08% | 59.01% | 56.51% | 32.99% | 0.05% | 17.15% | 18% | 22.68% | 20.5% | 19.07% |
| Selling, General & Admin | 0 | 0 | 1.72B | 1.75B | 1.77B | 1.68B | 1.68B | 1.72B | 1.69B | 1.69B | 1.76B | 1.78B | 1.87B | 1.95B | 2.03B | 4.05B | 2.01B | 1.97B | 1.92B | 1.8B | 1.67B | 1.51B | 1.42B | 1.3B | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | - | 34.67% | 33.97% | 32.66% | 31.47% | 32.17% | 33.17% | 33.16% | 33.43% | 34.46% | 34.4% | 37.25% | 39.74% | 38.05% | 78.24% | 40.34% | 39.17% | 37.73% | 37.22% | 38.33% | 38.1% | 38.19% | 37.68% | - | - | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -23.49M | -62M | 63M | -414M | 122M | 261M | 259M | 179M | 205M | -105M | 60M | 397.07M | -189.86M | 235.36M | 183.86M | 362.5M | 289.99M | 407.81M | 128.15M | 527.9M | 412.78M | 398.01M | 220.75M | 315.54M | 386.36M | 434.89M | 420.07M | 357.5M | -20.9M | -3.7M | 154.1M |
| Operating Margin % | -1.1% | -5.05% | 1.27% | -8.02% | 2.25% | 4.9% | 4.96% | 3.46% | 4.01% | -2.08% | 1.18% | 7.67% | -3.79% | 4.8% | 3.44% | 7% | 5.82% | 8.12% | 2.52% | 10.93% | 9.46% | 10.05% | 5.93% | 9.16% | 12.94% | 16.8% | 18.05% | 18.21% | -1.16% | -0.25% | 12.69% |
| Operating Income Growth % | - | -198.41% | 115.22% | -439.34% | -53.26% | 0.77% | 44.69% | -12.68% | 295.24% | -275% | -84.89% | 309.13% | -180.67% | 28.01% | -49.28% | 25% | -28.89% | 218.22% | -75.72% | 27.89% | 3.71% | 80.3% | -30.04% | -18.33% | -11.16% | 3.53% | 17.5% | 1810.53% | -464.86% | -102.4% | 16.74% |
| EBITDA | 477.6M | 289.88M | 1.01B | 501M | 1.05B | 1.16B | 1.17B | 1.11B | 1.09B | 739M | 910M | 1.24B | 646.67M | 1.25B | 997.49M | 1.13B | 1.05B | 1.16B | 878.23M | 1.28B | 1.15B | 1.08B | 888.71M | 911.28M | 896.8M | 884.91M | 819.21M | 710.8M | 388.6M | 297.9M | 385.7M |
| EBITDA Margin % | 22.37% | 23.6% | 20.27% | 9.71% | 19.42% | 21.69% | 22.35% | 21.46% | 21.3% | 14.65% | 17.83% | 23.98% | 12.91% | 25.57% | 18.66% | 21.78% | 21.09% | 23.06% | 17.25% | 26.51% | 26.35% | 27.16% | 23.89% | 26.45% | 30.04% | 34.19% | 35.21% | 36.21% | 21.52% | 20.24% | 31.76% |
| EBITDA Growth % | -50.96% | -71.18% | 100.8% | -52.33% | -9.08% | -1.03% | 5.13% | 2.11% | 47.23% | -18.79% | -26.7% | 91.97% | -48.41% | 25.66% | -11.59% | 7.28% | -9.16% | 31.83% | -31.39% | 11.29% | 6.96% | 21.01% | -2.48% | 1.61% | 1.34% | 8.02% | 15.25% | 82.91% | 30.45% | -22.76% | 15.79% |
| D&A (Non-Cash Add-back) | 501.1M | 351.88M | 943M | 915M | 929M | 895M | 909M | 932M | 883M | 844M | 850M | 844.36M | 836.53M | 1.02B | 813.63M | 765.78M | 761.75M | 749.97M | 750.08M | 752.22M | 737.48M | 677.44M | 667.96M | 595.73M | 510.44M | 450.02M | 399.14M | 353.3M | 409.5M | 301.6M | 231.6M |
| EBIT | 184.22M | 201.63M | 259M | -233M | 151M | 285M | 281M | 190M | 196M | 48M | 114M | 576.32M | -41M | 391.68M | 282.98M | 481.95M | 396.49M | 511.66M | 290.9M | 894.19M | 557.88M | 380.7M | 348.05M | 261.59M | 386.36M | 436.15M | 420.07M | 370.3M | 270.4M | 222.9M | 185.5M |
| Net Interest Income | -87.2M | -72.36M | -252M | -224M | -157M | -221M | -153M | -136M | -146M | -155M | -159M | -137M | -94M | -89.72M | -77.5M | -109.06M | -106.3M | -115.09M | -98.77M | -9.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 47.71M | 40.31M | 27M | 20M | 17M | 11M | 15M | 29M | 26M | 15M | 11M | 5M | 16.96M | 9.09M | 9.25M | 9.14M | 10.51M | 11.12M | 39.13M | 70.94M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 346.14M | 88.96M | -20M | -477M | 125M | 221M | 288M | 211M | 221M | -122M | 92M | 434.6M | -152.22M | 292.86M | 196.24M | 363.75M | 281.26M | 387.1M | 153.01M | 685.45M | 278.22M | 396.14M | 149.35M | 178.39M | -1.56B | -172M | 295.01M | 542.4M | 133.7M | 19.1M | 251.7M |
| Pretax Margin % | 16.22% | 7.24% | -0.4% | -9.24% | 2.31% | 4.15% | 5.51% | 4.08% | 4.33% | -2.42% | 1.8% | 8.4% | -3.04% | 5.98% | 3.67% | 7.02% | 5.64% | 7.71% | 3% | 14.19% | 6.37% | 10% | 4.01% | 5.18% | -52.11% | -6.64% | 12.68% | 27.63% | 7.4% | 1.3% | 20.72% |
| Income Tax | 7.57M | -62.18M | 6M | 10M | 53M | 33M | 19M | 64M | 46M | -279M | 40M | 171.99M | -4.93M | 126.04M | 73.58M | 113.5M | 92.28M | 133.38M | 30.09M | 269.05M | 116.46M | 140.57M | 78.65M | 79.89M | -577M | -44.91M | 149.48M | 228.2M | 69.3M | 28.6M | 123.6M |
| Effective Tax Rate % | 2.19% | -69.9% | -30% | -2.1% | 42.4% | 14.93% | 6.6% | 30.33% | 20.81% | 228.69% | 43.48% | 39.57% | 3.24% | 43.04% | 37.5% | 31.2% | 32.81% | 34.46% | 19.67% | 39.25% | 41.86% | 35.49% | 52.66% | 44.78% | 37.09% | 26.11% | 50.67% | 42.07% | 51.83% | 149.74% | 49.11% |
| Net Income | 132.21M | -6.24M | -28M | -500M | 62M | 156M | 226M | 121M | 135M | 153M | 43M | 219.04M | -136.35M | 141.93M | 81.86M | 200.57M | 143.86M | 193.9M | 93.54M | 386.11M | 161.76M | 222.54M | 49M | 61.49M | -984.37M | -198.06M | 2.24B | 230M | 64.4M | -9.5M | 128.1M |
| Net Margin % | 6.19% | -0.51% | -0.56% | -9.69% | 1.15% | 2.93% | 4.33% | 2.34% | 2.64% | 3.03% | 0.84% | 4.23% | -2.72% | 2.9% | 1.53% | 3.87% | 2.88% | 3.86% | 1.84% | 8% | 3.71% | 5.62% | 1.32% | 1.78% | -32.97% | -7.65% | 96.14% | 11.72% | 3.57% | -0.65% | 10.55% |
| Net Income Growth % | 364.41% | 77.73% | 94.4% | -906.45% | -60.26% | -30.97% | 86.78% | -10.37% | -11.76% | 255.81% | -80.37% | 260.64% | -196.07% | 73.38% | -59.19% | 39.42% | -25.81% | 107.29% | -75.77% | 138.7% | -27.31% | 354.13% | -20.31% | 106.25% | -397.02% | -108.85% | 872.61% | 257.14% | 777.89% | -107.42% | 23.17% |
| Net Income (Continuing) | 338.57M | 151.15M | -26M | -487M | 72M | 188M | 269M | 147M | 175M | 157M | 52M | 262.61M | -147M | 166.82M | 122.65M | 250.24M | 188.98M | 253.73M | 122.91M | 416.4M | 206.88M | 683.95M | 70.69M | 45.52M | -987.74M | -173.96M | 145.53M | 291.3M | 185.2M | 99.7M | 128.1M |
| Discontinued Operations | -1000K | -130.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 997K | 6.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 338.62M | 0 | 793M | 806M | 766M | 818M | 799M | 762M | 744M | 624M | 606M | 578.87M | 529.06M | 551.97M | 644.46M | 639.69M | 646.06M | 665.09M | 649.7M | 651.54M | 609.72M | 552.88M | 499.31M | 508.19M | 489.74M | 467.7M | 431.11M | 509.7M | 440.2M | 416.6M | 432.3M |
| EPS (Diluted) | 1.13 | -0.66 | -0.85 | -5.04 | -0.07 | 1.00 | 1.93 | 1.03 | 1.18 | 1.37 | 0.39 | 1.99 | -1.26 | 1.30 | 0.75 | 1.69 | 1.25 | 1.63 | 0.74 | 2.98 | 1.27 | 1.76 | 0.39 | 0.49 | -7.72 | -1.55 | 16.97 | 2.17 | 0.39 | -0.07 | 0.97 |
| EPS Growth % | 266.09% | 22.35% | 83.13% | -7079.49% | -107.02% | -48.19% | 87.38% | -12.71% | -13.87% | 251.28% | -80.4% | 257.94% | -196.92% | 73.33% | -55.62% | 35.2% | -23.31% | 120.27% | -75.17% | 134.65% | -27.84% | 351.28% | -20.41% | 106.35% | -398.06% | -109.13% | 682.03% | 456.41% | 640.17% | -107.44% | 18.29% |
| EPS (Basic) | - | -0.66 | -0.85 | -5.04 | -0.07 | 1.02 | 1.98 | 1.06 | 1.21 | 1.38 | 0.39 | 2.02 | -1.26 | 1.31 | 0.75 | 1.70 | 1.26 | 1.63 | 0.74 | 3.02 | 1.28 | 1.78 | 0.39 | 0.49 | -7.72 | -1.55 | 17.17 | 2.20 | 0.40 | -0.07 | 0.98 |
| Diluted Shares Outstanding | 117.52M | 115.18M | 114M | 113M | 114M | 116M | 115M | 116M | 114M | 112M | 111M | 109.91M | 108.48M | 109.13M | 108.94M | 118.59M | 114.69M | 119.11M | 126.37M | 129.49M | 127.01M | 126.18M | 125.15M | 125.49M | 127.49M | 127.53M | 131.82M | 105.86M | 164.66M | 131.58M | 132.44M |
| Basic Shares Outstanding | 114.77M | 115.18M | 114M | 113M | 114M | 115M | 114M | 114M | 112M | 111M | 110M | 108.64M | 107.94M | 108.49M | 108.67M | 118.01M | 114.26M | 118.85M | 125.89M | 127.86M | 125.99M | 125.33M | 124.56M | 125.49M | 127.49M | 127.53M | 130.27M | 104.43M | 161.47M | 131.58M | 131.17M |
| Dividend Payout Ratio | - | - | - | - | 243.55% | 76.28% | 34.51% | 61.98% | 53.33% | 45.1% | 151.16% | 27.95% | - | 38.96% | 64.95% | 24.27% | 32.81% | 24.11% | 50.53% | 11.86% | 26.51% | 18.14% | 77.64% | 58.86% | - | - | 1.36% | 12.78% | 44.25% | - | 20.45% |
Structural Revenue Erosion
As indicated by the most recent quarterly filings, TDS experienced a staggering 73.2% year-over-year revenue decline, signaling a fundamental transformation of the business model that likely involves the divestiture or deconsolidation of its primary wireless operations rather than organic market share loss in its core segments.
The precipitous drop in top-line figures suggests that the company is no longer operating as the integrated wireless and wireline entity it was in previous periods. Investors should monitor whether the remaining revenue base can achieve sufficient scale to support the high fixed-cost infrastructure required for its fiber-to-the-home expansion strategy.
According to the provided financial data, gross margins have fluctuated wildly from a peak of 60.3% in early 2025 to a compressed 32.0% in the most recent quarter, reflecting the extreme accounting volatility inherent in the company's ongoing corporate restructuring and asset transition efforts.
The compression in gross margins suggests that the company is struggling to maintain profitability as it sheds its legacy wireless assets. This volatility makes it difficult to discern the true underlying margin profile of the remaining fiber-focused business, warranting further investigation into the cost-to-serve metrics for new fiber subscribers.
Based on reported income statements, the company's operating income has frequently dipped into negative territory, with the most recent quarter showing an operating margin of -1.2%, suggesting that the firm has yet to achieve the necessary scale to cover its substantial fixed operating expenses.
The inability to consistently scale operating income relative to gross profit indicates that the company's cost structure remains bloated relative to its current revenue generation. This lack of operating leverage may persist until the company completes its transition and rightsizes its overhead to match the smaller, more focused business footprint.
As reported in financial statements, TDS recorded a net income of $145.5 million in 2026Q1 despite negative operating income, which implies that non-operating gains or tax-related adjustments are currently driving the bottom line rather than core operational performance or sustainable business growth.
The disconnect between operating losses and positive net income suggests that investors should be cautious about relying on EPS as a measure of operational health. These non-operating items appear to be masking the underlying challenges in the core business, making it difficult to assess the true earnings power of the firm.
Financial data suggests that the company's reliance on non-operating income to bolster net results, combined with a 73% revenue decline, presents a significant risk that the current business model may not be self-sustaining without further asset sales or significant capital injections to fund fiber expansion.
Short-sellers would likely focus on the erosion of the core revenue base and the potential for continued margin compression as the company attempts to pivot toward fiber. The lack of consistent operating profitability raises questions about the long-term viability of the current strategy in a high-interest-rate environment.
Quick answers to the most common questions about buying TDS stock.
For fiscal year 2025, Telephone and Data Systems, Inc. (TDS) reported total revenue of $1.23B. This represents a 1.1% increase compared to $1.21B in 1996.
Telephone and Data Systems, Inc. (TDS) reported a net loss of $6.2M for the fiscal year ending 2025.
Telephone and Data Systems, Inc. (TDS) reported an operating income of $-62.0M, resulting in an operating profit margin of -5.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Telephone and Data Systems, Inc. (TDS) generated $-62.0M in gross profit for the year, representing a gross profit margin of -5.0%. This demonstrates the company's core pricing power and production efficiency.