United States Cellular (USM 3.57%), Now solely a tower operator following the sale of its wireless operations to T-Mobile, delivered its second quarter earnings release on August 11, 2025. The company reported a key transition quarter, having closed its $4.3 billion wireless operations sale to T-Mobile. Earnings per share (GAAP) reached $0.36 for Q2 2025, beating GAAP estimates of $0.29, while revenue (GAAP) came in at $916 million versus $907.6 million expected. Despite headline beats, legacy wireless metrics declined as the company pivots to a wireless infrastructure focus. A $23.00 per share special dividend was declared, payable on August 19, 2025, in connection with the T-Mobile transaction. The quarter signaled the company’s exit from consumer wireless and a new focus on tower operations.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $0.36 | $0.29 | $0.20 | 80 % |
| Revenue (GAAP) | $916 million | $907.63 million | $927 million | (1.2%) |
| Adjusted EBITDA (Non-GAAP) | $254 million | $268 million | (5.2 %) | |
| Free Cash Flow (Non-GAAP) | $239 million | $165 million | 44.8 % | |
| Service Revenue | $736 million | $743 million | (0.9 %) |
Source: Analyst estimates for the quarter provided by FactSet.
Company Background and Key Success Factors
United States Cellular (USM 3.57%) has long operated as a regional wireless carrier, serving millions of postpaid and prepaid customers with voice, messaging, and data services. In addition to its wireless offerings, it owns and operates a portfolio of wireless towers across several states. For many years, its mix of direct-to-consumer mobile services and wireless infrastructure, such as tower leasing, provided a diversified revenue base.
The company’s recent strategy has focused on improving network technology and expanding its tower leasing business. With industry competition intensifying and customer losses mounting, the company repositioned itself. The tower segment, supported by new agreements with national carriers, allows it to focus on recurring business-to-business infrastructure leases. These changes, and the completion of the T-Mobile sale, set a new direction as a dedicated communication infrastructure operator.
Quarterly Highlights and Segment Performance
The most significant development this quarter was the closure of the $4.3 billion wireless operations sale to T-Mobile. This transaction included transferring most wireless retail assets and select spectrum, resulting in a $23.00 per share special dividend payable on August 19, 2025. The company is now known as Array Digital Infrastructure, Inc, reflecting this change in strategic direction.
Earnings per share (GAAP) reached $0.36 for Q2 2025, up from $0.20 (GAAP) in Q2 2024. Net income attributable to shareholders (GAAP) increased approximately 82% to $31 million. The revenue figure (GAAP) edged past analyst consensus by 0.9%, though it was down 1% year-over-year. Adjusted EBITDA (non-GAAP) fell 6%.
Total postpaid connections declined 3.1% to 3.9 million compared to Q2 2024. Net postpaid additions were negative 42,000, indicating higher disconnections than activations. Postpaid churn, which tracks the percentage of subscribers leaving each month, increased to 1.29%. Prepaid metrics also slipped, with a 2.3% decline in connections year over year.
The tower business, now the company’s main focus, showed year-over-year growth. Total tower revenue climbed 7% year-over-year. Revenue from third-party tenants on the tower portfolio, such as wireless carriers renting space to install their network antennas, rose 12% compared to Q2 2024. The tower tenancy rate improved to 1.57. Operating income in the towers segment grew 11%, with non-GAAP EBITDA rising 9% year-over-year. These results reflect progress in signing new lease agreements and expanding the tower customer base, supported by recently closed Master License Agreements like the one with T-Mobile.
On the capital allocation side, the company’s focus shifted sharply after the asset sale. Capital expenditures fell 52% to $80 million compared to Q2 2024. Pending spectrum sales to AT&T and Verizon are expected to close in 2H 2025 and Q3 2026, respectively, subject to regulatory approvals and satisfaction of closing conditions. Management also noted pending cash tax liabilities from the transaction and ongoing efforts to adjust the company’s cost structure to match its new infrastructure profile.
Looking Ahead: Strategic Priorities and Guidance
Management did not issue formal financial guidance for either the third quarter or the full fiscal year 2025. Leadership cited ongoing restructuring activity and the pending closing of additional spectrum asset sales. They highlighted that future reporting would emphasize tower-industry metrics, such as Adjusted Funds From Operations (AFFO), now that the consumer wireless business has been sold.
For the quarters ahead, investors should watch three key areas: progress in closing additional spectrum transactions, the pace of new tenant additions (colocations) on the existing tower footprint, and the company’s ability to streamline costs as a stand-alone tower business. Execution risk still exists around regulatory approvals and achieving the expected sale proceeds. The company expects leverage, or the ratio of net debt to earnings, to remain near 3 times following the close of the T-Mobile transaction, subject to completion of a debt exchange offer.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
