How does Telephone and Data Systems (TDS) make money?

Telephone and Data Systems (TDS) generates revenue primarily from Service, which accounted for 88.2% of total revenue in TTM through Q1 2026. The company reported $2.13B in revenue and converted 6.2% of it into net profit, equivalent to roughly $132.21M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Telephone and Data Systems (TDS)?

Telephone and Data Systems (TDS) reported a gross profit margin of 41% in TTM through Q1 2026, equivalent to $874.89M in gross profit on $2.13B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Telephone and Data Systems (TDS)?

Telephone and Data Systems (TDS) reported an operating profit margin of -1.1% in TTM through Q1 2026, equivalent to −$23.49M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Telephone and Data Systems (TDS)?

Telephone and Data Systems (TDS) reported a net profit margin of 6.2% in TTM through Q1 2026, equivalent to $132.21M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Telephone and Data Systems (TDS) profitable?

Yes. Telephone and Data Systems (TDS) reported $132.21M in net income for TTM through Q1 2026, with a net profit margin of 6.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Telephone and Data Systems (TDS) spend on capital expenditures?

Telephone and Data Systems (TDS) spent $416.75M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 19.5% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Telephone and Data Systems (TDS) generate?

Telephone and Data Systems (TDS) generated $56.60M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 2.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Telephone and Data Systems (TDS)?

Telephone and Data Systems (TDS) had an effective tax rate of 2.2% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Telephone and Data Systems (TDS)?

Telephone and Data Systems (TDS) reports revenue across 2 reportable product segments, led by Service at 88.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Telephone and Data Systems Makes Money: 2026 Visual Revenue Map

Telephone and Data Systems (TDS) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 8, 2026).

Telephone and Data Systems discloses geographic revenue only in annual filings. to view the full breakdown.

Telephone and Data Systems (TDS) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Telephone and Data Systems (TDS) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Service	$1.88B	88.2%
Product	$251.04M	11.8%
Total	$2.13B	100%

Service$1.88B
Product$251.04M
Total$2.13B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Telephone and Data Systems (TDS) reports revenue across 2 operating segments; the largest segment was Service at 88.2%, followed by Product (11.8%).

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