TDS: A Quiet Signal in the Noise

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It has come to our attention – and the attention of Kerrisdale Advisers, apparently – that Telephone and Data Systems (TDS 0.73%) is, well, still there. Not vanished in a puff of logic, or swallowed by the ever-expanding digital ether, but stubbornly persisting as a provider of…connections. A quaint notion, really. Kerrisdale, those keen-eyed magpies of the investment world, have recently deposited a rather substantial 20.75 million dollars’ worth of shares (506,067 of them, to be precise) into the TDS coffers, as reported in a filing with the Securities and Exchange Commission on February 17, 2026. A sum that, in the grand scheme of things, is less a fortune and more a…significant gesture of continued interest.1

The market, as it often does, has noticed. TDS shares are currently trading at $47.59, a respectable 25% climb over the past year. This puts it a hair ahead of the S&P 500’s own, admittedly robust, 20% gain. One begins to suspect a slow-burning efficiency, a quiet competence in a world obsessed with shouting into the void.

A Company, Briefly Examined

For those unfamiliar with the arcane art of telecommunications (and let’s be honest, who isn’t these days?), Telephone and Data Systems offers a variety of services. Wireless solutions, IoT connectivity (the Internet of Things, naturally. Everything is becoming a thing, and all things must be connected. It’s the natural order, or a marketing scheme, depending on your cynicism level), broadband, cloud TV, and the general business of moving information from one place to another. They do this through two primary divisions: UScellular and TDS Telecom. They serve individuals, businesses, and, presumably, government entities who still require a reliable means of communication. A surprisingly large demographic, as it turns out.

Metric Value
Revenue (TTM) $1.2 billion
Net Income (TTM) ($75.5 million)
Dividend Yield 0.4%
Price (as of market close February 16, 2026) $47.59

What Does it All Mean?

TDS, it seems, has been undergoing something of a metamorphosis. They’ve been shedding parts of their wireless business, focusing instead on fiber broadband and tower infrastructure through their Array unit. A sensible move, really. It’s like a wizard deciding to specialize in practical enchantments instead of summoning demons. Less flashy, perhaps, but considerably more reliable. The results, it must be said, are beginning to show. Fourth-quarter operating revenue hit $330.7 million, up from $295.3 million the previous year. Net income jumped to $37.2 million, a rather dramatic turnaround from barely breaking even. For the full year, they generated $1.23 billion in revenue and, remarkably, returned to profitability after a rather bleak 2024.2

Within Kerrisdale’s portfolio, this investment sits alongside other companies like MercadoLibre and Visa. A curious mix, one might think. But it suggests a strategy focused on businesses that generate cash, not just hype. A rather sensible approach, in a world drowning in both.

  • Top Holdings (as of Feb 17, 2026):
  • NYSE:TDS: $20.75 million (9.8% of AUM)
  • NASDAQ:MELI: $17.25 million (8.1% of AUM)
  • NYSE:SYY: $15.57 million (7.3% of AUM)
  • NYSE:V: $13.84 million (6.5% of AUM)
  • NASDAQ:ACMR: $10.39 million (4.9% of AUM)

For the long-term investor, the story isn’t about explosive growth. It’s about execution. If TDS can continue to expand its fiber network and monetize its assets, this quiet operator could become a surprisingly steady performer. A solid foundation, built on reliable connections. A refreshing change, in a world obsessed with the ephemeral.


1 It’s a well-known fact among financial alchemists that a significant gesture of continued interest is often worth considerably more than its monetary value. The exact ratio is, of course, subject to market fluctuations and the whims of the gods.
2 The return to profitability is particularly noteworthy, given the prevailing narrative of technological disruption. It suggests that some old-fashioned competence still holds value, even in the digital age.

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2026-03-16 00:42