On February 17, 2026, Stonehill Capital Management reported in a Securities and Exchange Commission filing that it sold out of Telephone and Data Systems (TDS -0.70%) in the fourth quarter.
What happened
According to a Securities and Exchange Commission filing dated February 17, 2026, Stonehill Capital Management sold all 320,194 shares of Telephone and Data Systems (TDS -0.70%). The fund’s TDS position value dropped by $12.56 million from the previous quarter as a result.
What else to know
- Top holdings after the filing:
- NASDAQ: SATS: $90.38 million (29.0% of AUM)
- NASDAQ: JOYY: $71.47 million (22.9% of AUM)
- NYSE: ELME: $30.25 million (9.7% of AUM)
- NASDAQ: LBRDK: $21.07 million (6.8% of AUM)
- NYSE: MBC: $19.65 million (6.3% of AUM)
- As of Wednesday, TDS shares were priced at $41.99, up about 19% over the past year, in line with the S&P 500’s gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.23 billion |
| Net income (TTM) | ($75.5 million) |
| Price (as of Wednesday) | $41.99 |
Company snapshot
- TDS has historically provided wireless solutions, broadband internet, cloud-based television, and voice services through its UScellular and TDS Telecom segments.
- The firm has generated revenue primarily from wireless subscriptions, broadband access, and related telecommunications services, leveraging a mix of direct retail, third-party, and digital sales channels.
- It serves consumers, businesses, and government entities across the United States, with a focus on both urban and rural markets.
Telephone and Data Systems is a leading U.S. telecommunications provider with a diversified portfolio that has spanned wireless, broadband, and voice services. It operates at scale, supporting millions of wireless and wireline connections nationwide. Its integrated approach and broad service offering position it to address evolving connectivity needs across a wide customer base.
What this transaction means for investors
Shares of Telephone and Data Systems have done a good job of keeping up with the broader market, so the full sale here begs the question of why a fund would exit now.
TDS is no longer a traditional telecom operator as investors might have once understood it. The company spent 2025 reshaping itself, offloading its wireless business and leaning into fiber and infrastructure. That shift is starting to show up in the numbers. Quarterly revenue rose to about $330.7 million, while net income jumped to $63.6 million from $7.2 million a year ago. For the full year, the company swung to a $20.2 million profit after posting a $26.5 million loss in 2024.
Meanwhile, the company closed a $1.018 billion spectrum deal and paid a $10.25 special dividend, while doubling down on fiber with a long-term goal of reaching 2.1 million serviceable addresses. Placed next to top holdings that skew toward media, international platforms, and real estate, this name stood out as a transitional asset rather than a core conviction. Now, with the business at a pivotal moment, it seems Stonehill decided to turn attention elsewhere.
