Capital expenditures vs. prior quarters
In the Q2 2025 release, TDS disclosed that its capital‑expenditure program accelerated, with capex climbing to $1.1 bn for the six‑month period—up from $820 m recorded in Q1 2025 and roughly 15 % higher than the $950 m spent in Q2 2024. The uptick reflects continued rollout of fiber‑to‑the‑home assets and the company’s 2025‑2026 network‑modernisation plan, a signal that management is still prioritising growth over short‑term cash‑preservation.
Free cash flow vs. prior quarters
Free cash flow (FCF) for Q2 2025 came in at $1.3 bn, modestly above the $1.2 bn generated in Q1 2025 but still below the $1.5 bn recorded in Q2 2024. The slight Q2‑2025 lift versus Q1 shows that the higher capex was partially offset by strong operating cash generation, yet the year‑over‑year dip indicates that the expanded investment out‑paced cash‑conversion in the quarter.
Trading implications
The combination of rising capex and a marginally weaker YoY FCF suggests a near‑term cash‑flow drag that could pressure the stock’s valuation if earnings guidance is not adjusted upward. However, the firm’s ability to sustain positive FCF despite heavier spending underlines a solid balance‑sheet and supports a bullish bias on the longer‑term growth narrative. Traders may consider a light‑to‑moderate long position with a stop around the recent low‑volume support at $115 and look for upside if the next earnings update confirms that the capex‑driven network expansion is translating into higher subscriber growth and margin expansion.