Financial Data and Key Metrics Changes - Total operating revenues decreased by 3% year over year, impacted by divestitures and declines in commercial and wholesale revenue, as well as decreases in residential video and voice connections [44] - Free cash flow for Q1 2025 was $79 million, an increase of $18 million compared to the same quarter last year [13][19] - Cash expenses increased by 6% or $11 million compared to the prior year, with $4 million of this increase attributed to a cumulative non-cash adjustment to stock-based compensation [44] Business Line Data and Key Metrics Changes - Postpaid handset results showed year-over-year improvements, while third-party tower revenues increased by 6% due to new co-locations and escalators on renewed leases [12] - Fiber service addresses grew by 6% year over year, with 14,000 new addresses delivered in the quarter [33][42] - Residential broadband net additions were 2,800, with 8,300 coming from fiber markets, lower than prior quarters due to timing of service address delivery [34][38] Market Data and Key Metrics Changes - The company continues to face aggressive promotional competition in the wireless industry, with competitors offering multi-year price locks and aggressive pricing [14] - Demand for higher broadband speeds remains strong, with 82% of residential broadband customers taking 100 megabits or higher and 24% taking one gig or higher at the end of the quarter [42] Company Strategy and Development Direction - The company is focused on completing the proposed transaction with T-Mobile, which is expected to close in mid-2025, and is preparing for a smooth transition [9][16] - A special dividend to shareholders is anticipated following the closing of the T-Mobile transaction, with proceeds expected to be used to repay outstanding bank debt [10][18] - The fiber program has expanded the company's footprint by over 30% in the last three years, with further growth opportunities identified [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased uncertainties in the broader economy and markets but remains optimistic about the long-term potential of the tower business and fiber expansion [7][12] - The company is focused on cost optimization and expects capital expenditures to decline in 2025 as planned 5G coverage builds are largely completed [13][46] - Management expressed confidence in achieving $100 million in annual cost savings by the end of 2028 through transformation efforts [35][72] Other Important Information - The company does not plan to redeem Series UU and Series BV preferred stock, viewing them as foundational capital for future operations [10][68] - The expected cash income tax obligations related to the T-Mobile transaction are estimated to be between $225 million and $325 million [28][30] Q&A Session Summary Question: Timeline for designated entity spectrum approval - The timing is uncertain and dependent on regulatory approval by the FCC, but there is optimism for a positive outcome [52][54] Question: Free cash flow run rate - The $79 million in free cash flow is not necessarily a run rate, but capital expenditures are expected to be down in 2025, which is positive for free cash flow [55] Question: Debt exchange offer impact - The debt exchange offer will be launched about 50 days before the anticipated close, and the amount of debt exchanged will impact transaction proceeds [56][110] Question: Fiber net adds and sales efforts - Fiber net additions were lower due to timing of address delivery, but management expects improvements as construction activity ramps up [60][62] Question: Divestiture strategy and criteria - The company is focused on divesting non-core assets, particularly isolated copper markets without an economic path to fiber, ensuring that net proceeds exceed the present value of cash flows from continued operations [95][96]

United States Cellular (USM) came out with quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -43.24%. A quarter ago, it was expected that this wireless telecommunications service provider would post a loss of $0.10 per share when it actually produced earnings of $0.05, delivering a surprise of 150%.O ...

Financial Performance - UScellular reported total operating revenues of $891 million for the three months ended March 31, 2025, a decrease of 6% compared to $950 million for the same period in 2024[25]. - Wireless operating revenues decreased by 7% to $864 million, while Towers segment revenues increased by 5% to $61 million[25]. - Operating income fell by 19% to $41 million, with net income attributable to UScellular shareholders remaining flat at $18 million[25]. - Adjusted OIBDA decreased by 6% to $215 million, and Adjusted EBITDA decreased by 7% to $254 million[25]. - Total operating revenues for the three months ended March 31, 2025, were $864 million, a decrease of 7% compared to $925 million in the same period of 2024[34]. - UScellular's net income for the three months ended March 31, 2025, was $20 million, compared to $24 million for the same period in 2024[86]. - Operating income for Q1 2025 was $41 million, a decrease of 19.6% compared to $51 million in Q1 2024[110]. - EBITDA for the three months ended March 31, 2025, was $243 million, compared to $260 million for the same period in 2024[86]. - Service revenues decreased to $741 million in Q1 2025, down from $754 million in Q1 2024, representing a decline of 1.7%[110]. - Equipment sales decreased to $150 million in Q1 2025, compared to $196 million in Q1 2024, reflecting a decline of 23.5%[134]. Capital Expenditures - Capital expenditures significantly decreased by 60% to $53 million compared to $131 million in the prior year[25]. - Capital expenditures for the wireless segment significantly decreased by 60% to $51 million in Q1 2025 from $127 million in Q1 2024[34]. - Capital expenditures decreased by $78 million or 60% year-over-year, aligning with the focus on enhancing speed and capacity for existing 5G services[66]. - The company expects to finance its capital expenditures for 2025 primarily through cash flows from operating activities and existing cash balances[67]. Debt and Financing - UScellular's long-term debt as of March 31, 2025, totaled $2.918 billion, with a weighted average interest rate of 6.1%[107]. - Approximately 70% of UScellular's long-term debt is in fixed-rate senior notes, while 30% is in variable-rate debt[105]. - UScellular's consolidated leverage ratio is required to be maintained at a maximum of 4.00 to 1.00 until March 31, 2025, and then reduced to 3.75 to 1.00 thereafter[62]. - UScellular has an unsecured revolving credit agreement with a maximum borrowing capacity of $300 million, with no outstanding borrowings as of March 31, 2025[160]. - UScellular's outstanding borrowings under term loan agreements were $718 million as of March 31, 2025, with maximum borrowing capacities of $800 million[162]. Shareholder Actions - The company repurchased 328,835 common shares for $21 million at an average cost of $63.49 per share during the three months ended March 31, 2025[71]. - The maximum number of shares that may yet be purchased under the stock repurchase plan is 658,107 shares[197]. - UScellular anticipates declaring special dividends to shareholders following the completion of the T-Mobile transaction, pending regulatory approval[72]. Network and Operations - The company continues to enhance its network capabilities by deploying 5G technology to meet growing customer demand for data services[20]. - UScellular serves approximately 4.4 million retail connections, including about 3.9 million postpaid and 0.4 million prepaid connections[13]. - UScellular incurred third-party expenses related to announced transactions of $10 million for the three months ended March 31, 2025, compared to $7 million in the same period of 2024[21]. - Total tower revenues increased by 5% to $61 million in Q1 2025, up from $58 million in Q1 2024, driven by new colocations and rent escalations[45]. Transactions and Sales - The company is in the process of selling its wireless operations and select spectrum assets to T-Mobile for a total purchase price of $4,400 million, expected to close in mid-2025[15]. - UScellular entered into agreements to sell wireless spectrum licenses to Verizon and AT&T for total proceeds of $1,000 million and $1,018 million, respectively, both transactions subject to regulatory approval[17][18]. - UScellular agreed to sell its wireless operations and select spectrum assets to T-Mobile for a purchase price of $4,400 million, with approximately $2,000 million in debt assumption[151]. - UScellular entered into a License Purchase Agreement with Verizon for certain wireless spectrum licenses, expecting total proceeds of $1,000 million, with a book value of $586 million as of March 31, 2025[152]. - UScellular also signed a License Purchase Agreement with AT&T for certain wireless spectrum licenses, with total proceeds of $1,018 million and a book value of $859 million as of March 31, 2025[153]. Customer Metrics - UScellular's retail connections decreased to 4,377,000 as of March 31, 2025, down from 4,487,000 in 2024, representing a decline of 2.5%[29]. - Postpaid revenue average revenue per user (ARPU) increased slightly to $52.06 in Q1 2025 from $51.96 in Q1 2024, while average revenue per account (ARPA) rose to $132.25 from $132.00[32]. - Total postpaid handset net losses decreased by 11% to 39,000 in Q1 2025 compared to 44,000 in Q1 2024, attributed to increased gross additions and reduced defections[30]. Cash Flow and Assets - Cash flows from operating activities for Q1 2025 were $160 million, down from $203 million in Q1 2024[89]. - Free cash flow for the three months ended March 31, 2025, was $79 million, an increase from $61 million in the same period of 2024[89]. - Total current assets increased to $1,373 million as of March 31, 2025, compared to $1,345 million at the end of 2024, reflecting a growth of 2.08%[114]. - Cash and cash equivalents rose to $182 million, up 26.39% from $144 million at the end of 2024[114]. - Total assets decreased to $10,365 million as of March 31, 2025, from $10,449 million at the end of 2024, a decline of 0.81%[114].

Exhibit 99.1 NEWS RELEASE As previously announced, UScellular will hold a teleconference on May 2, 2025, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.uscellular.com. CHICAGO (May 2, 2025) — United States Cellular Corporation (NYSE:USM) reported total operating revenues of $891 million for the first quarter of 2025, versus $950 million for the same period one year ago. Service revenues totaled $741 million, versus $754 million for the same period one year ago. Ne ...

United States Cellular (USM) shares soared 5.3% in the last trading session to close at $65.94. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3% loss over the past four weeks.U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. Management's efforts to ...

Shares of United States Cellular Corporation (USM) have surged 91.7% over the past year, backed by healthy traction in the wireless business. Earnings estimates for the current and next fiscal years have increased 45% and 40.2%, respectively, since March 2024, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #1 (Strong Buy) stock appears primed for further appreciation.Image Source: Zacks Investment ResearchKey Growth Drivers of USMU.S. Cellular has taken concrete steps ...

Shares of United States Cellular (USM) have gained 3.5% over the past four weeks to close the last trading session at $67.71, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $85.33 indicates a potential upside of 26%.The mean estimate comprises three short-term price targets with a standard deviation of $2.52. While the lowest estimate of $83 indicates a 22.6% increase from the ...

United States Cellular (USM) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this wireless telecommunications service provider is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correla ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Shares of United States Cellular (USM) have gained 3.5% over the past four weeks to close the last trading session at $65, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $85.67 indicates a potential upside of 31.8%.The average comprises three short-term price targets ranging from a low of $85 to a high of $86, with a standard deviation of $0.58. While the lowest estimate indica ...