Significant Market Share Gains in Europe and U.S. Tier 2 Carriers
European market strength, particularly in Germany and Italy, with ongoing momentum and new customer wins.
U.S. Tier 2 carriers contributed to market share growth, with approximately 10-11 new carriers added in fiber access during the quarter.
Strategic focus on replacing Eastern vendors and expanding customer base in Tier 2 and Tier 3 segments, with about 50% of new business involving cross-selling of optical and fiber access products.
Arlo announced a strategic partnership with ADT, the largest security company in North America, in June.
The partnership involves device and service revenue, with a unique structure that is not comparable to previous deals like Verisure or Nest.
Details of the partnership are expected to be announced closer to the end of 2025 or early 2026, with a significant impact on revenue starting in 2026.
The move away from bulk hardware sales is part of a broader effort to align revenue with customer buying cycles, which should benefit revenue predictability starting in 2026.
This transition has caused a temporary decline in hardware margins but is expected to improve overall margin profile as SaaS and recurring revenues grow.
The company booked over 24,000 new units in Q2, the highest in over a year, indicating early positive traction from the new sales approach.
The sale involved extensive negotiations over several years, highlighting a major strategic pivot for the company.
The transaction included spectrum assets, which are expected to be monetized further through upcoming sales to AT&T and Verizon, projected to generate $2 billion in proceeds.
The completion of this sale is seen as a key milestone in the company's transformation and focus on infrastructure assets.
Array's third-party tower revenues increased by 12% year-over-year, with third-party colocations up 6%.
Capital expenditures increased primarily due to spending on the E-ACAM fiber program.
Cash expenses increased 1% year-over-year, aligned with 2025 priorities including sales, marketing, and transformation efforts.
Distributions from noncontrolling investment interests increased from $58 million to $77 million year-over-year, including $23 million from Verizon wireless partnerships.
S&P upgraded TDS credit rating to BBB- from BB, removing it from credit watch.
TDS closed the $4.3 billion sale of UScellular wireless business and certain spectrum assets to T-Mobile, significantly strengthening balance sheets.
TDS Telecom delivered 27,000 new fiber service addresses in Q2, with 10,300 fiber net additions, representing 19% growth in total fiber connections year-over-year.
Total operating revenues were down 1% year-over-year, but excluding divestitures, revenue increased 1%, driven by fiber subscriber growth and higher residential revenue per connection.
ARPA growth was over 5%, the highest in 8 years, driven by customers self-selecting premium rate plans, including the new Experience Beyond plan.
Core adjusted EBITDA grew 6% year-over-year, and adjusted free cash flow reached a Q2 record of $4.6 billion, with a 26% conversion rate from service revenues.
Fiber broadband is ramping up with the launch of T-Fiber and acquisitions of Lumos and Metronet, targeting 100,000 fiber net additions this year.
Postpaid service revenues grew 9% year-over-year, accelerating from Q1, while total service revenues grew 6%, more than double the rate of closest competitors.
The business group led the industry in net additions, and 5G broadband led the industry for the 14th consecutive quarter in net additions.
T-Mobile delivered its best Q2 ever with record growth in postpaid phone nets, total postpaid net additions, and gross additions, all up double digits year-over-year.
Dafinchi