Array reports second quarter 2026 results

Array reports second quarter 2026 results

PR Newswire

CHICAGO, Aug. 7, 2026

Array updates 2026 guidanceCHICAGO, Aug. 7, 2026 /PRNewswire/ --

As previously announced, Array will hold a teleconference on August 7, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.arrayinc.com.Array Digital Infrastructure, Inc. (NYSE:AD) reported second quarter operating results."Array continues to make nice progress executing across our 2026 priorities," said Anthony Carlson, President and CEO. "The organization remains laser-focused on optimizing our tower operations - as evidenced by our sequential tower tenancy growth. And we continue to monetize our remaining spectrum assets as well as support T-Mobile's integration." Highlights*Optimizing tower operationsSite rental revenues grew 95% year over yearDelivered consecutive quarter over quarter tower tenancy growthContinuing to close pending sales of wireless spectrumClosed on sale of certain 700 MHz wireless spectrum licenses for total proceeds of $74.8 million on May 5, 2026Closed on sale of certain 600 MHz wireless spectrum licenses for total proceeds of $86.4 million on May 12, 2026Closed on sale of certain cellular and other spectrum licenses for total proceeds of $1 billion on June 1, 2026Issued special dividend of $11 per common share on June 25, 2026Updated 2026 GuidanceNarrowed Revenue range to $205 million - $215 million on higher interim site revenueIncreased Adjusted EBITDA range to $220 million - $235 millionCapital expenditures range remains unchanged at $25 million - $35 million* Comparisons are 2Q'25 to 2Q'26 unless otherwise noted.Array reported total operating revenues from continuing operations of $54.1 million for the second quarter of 2026, versus $28.5 million for the same period one year ago. Net income attributable to Array shareholders and diluted earnings per share from continuing operations were $333.8 million and $3.86, respectively, for the second quarter of 2026 compared to $14.8 million and $0.17, respectively, in the same period one year ago. Pending transactions Subsequent to the August 1, 2025 close of the sale of wireless operations, Array reached additional agreements with T-Mobile for the sale of additional spectrum. A significant portion of these closed in May 2026 with approximately $30 million related to 600 MHz and 700 MHz licenses remaining. These additional transactions are expected to close yet in 2026, subject to regulatory approval and customary closing conditions.DISH WirelessIn September 2025, Array received a letter from DISH Wireless claiming that its obligations under its Master Lease Agreement with Array were excused due to actions taken by the FCC and subsequent agreements to sell spectrum assets. Beginning in the first quarter of 2026, Array no longer recognizes revenue in connection with DISH. In June 2026, DISH Wireless and other DISH entities filed for bankruptcy and Array is monitoring those proceedings.Recent Development On May 7, 2026, TDS delivered to the Array Board of Directors a letter setting forth a non-binding proposal to acquire all of the outstanding Array Common Shares that are not owned by TDS (the "Array Proposal"). A special committee of independent and disinterested directors of the Array Board of Directors has been formed to evaluate this proposal. For additional information on the Array Proposal, see TDS' Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission on May 8, 2026.2026 Estimated ResultsArray's current estimates of full-year 2026 results are shown below. Such estimates represent management's view as of August 7, 2026 and should not be assumed to be current as of any future date. Array undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.2026 Estimated ResultsPreviousCurrent(Dollars in millions)Total operating revenues$200-$215$205-$215Adjusted OIBDA1 (Non-GAAP)$50-$65$60-$75Adjusted EBITDA1 (Non-GAAP)$200-$215$220-$235Capital expenditures$25-$35UnchangedThe following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income from continuing operations or Income before income taxes. In providing 2026 estimated results, Array has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, Array believes that the impact of income taxes cannot be reasonably predicted; therefore, Array is unable to provide such guidance.Actual Results2026 Estimated ResultsSix Months EndedJune 30, 2026Year EndedDecember 31, 2025(Dollars in millions)Net income from continuing operations (GAAP)N/A$517$172Add back:Income tax expense (benefit)N/A168(31)Income before income taxes (GAAP)$775-$790$686$141Add back or deduct:Interest expense451828Depreciation, amortization and accretion502748EBITDA (Non-GAAP)1$870-$885$731$218Add back or deduct:Expenses related to strategic alternatives review—82Loss on impairment of licenses——48(Gain) loss on asset disposals, net—52(Gain) loss on license sales and exchanges, net(585)(566)(6)Short-term imputed spectrum lease income(65)(58)(69)Adjusted EBITDA (Non-GAAP)1$220-$235$119$194Deduct:Equity in earnings of unconsolidated entities14575174Interest and dividend income151119Adjusted OIBDA (Non-GAAP)1$60-$75$33$1 Numbers may not foot due to rounding.1EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income from continuing operations adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. Array does not intend to imply that any such items set forth in the reconciliation above are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of Array's operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of Array's financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities.Conference Call InformationArray will hold a conference call on August 7, 2026 at 9:00 a.m. CT.Access the live call on the Events & Presentations page of investors.arrayinc.com or at https://events.q4inc.com/attendee/198119429 Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.arrayinc.com. The call will be archived on the Events & Presentations page of investors.arrayinc.com.About ArrayArray Digital Infrastructure, Inc. is a leading owner and operator of shared wireless communications infrastructure in the United States. Array owns 4,456 cell towers in 19 states and enables the deployment of 5G and other wireless technologies throughout the country. As of June 30, 2026, Telephone and Data Systems, Inc. owned approximately 81.9% of Array.Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: whether any transaction related to the TDS non-binding proposal delivered to the Array Board of Directors to acquire all of the outstanding Array Common Shares not owned by TDS will be accepted, rejected, consummated, or abandoned; whether any such transaction, if accepted or completed, will result in additional value for Array or its shareholders and whether the process could result in adverse impacts on Array's businesses; the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; whether the additional spectrum license sales to T-Mobile are consummated; whether Array can monetize its remaining spectrum assets; competition in the tower industry; economic and business risks associated with fixed rate annual escalators on colocation revenue contracts; Array's reliance on a small number of tenants for a substantial portion of its revenue; the ability to attract people of outstanding talent; inability to protect rights to the land under towers; changes in demand, consumer preferences and perceptions, price competition, or cost; advances or changes in technology; impacts of costs, integration issues or other factors associated with acquisitions, divestitures or exchanges of properties; uncertainties in Array's future cash flows and liquidity and access to the capital markets; the ability to make payments on indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments, including significant investments in wireless operating entities that Array does not control; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by TDS; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; and extreme weather events. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of Array's Form 10-K as updated by any Form 10-Q filed subsequent to such Form 10-K.Array Digital Infrastructure, Inc.Summary Operating Data (Unaudited)As of or for the Quarter Ended6/30/20263/31/202612/31/20259/30/2025Capital expenditures from continuing operations (thousands)$ 3,8958,64512,9337,927Owned towers4,4564,4524,4504,449Number of colocations14,3624,2904,5724,517Tower tenancy rate20.980.961.031.021Represents instances where a third-party leases space on a company-owned tower. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless due to the low probability of fulfilling its lease commitments.2Calculated as total number of colocations divided by total number of towers. Includes T-Mobile MLA committed site minimum of 2,015. Excludes Interim Sites whereby T-Mobile is leasing up to 1,800 sites for a period of up to 30 months subject to the terms and conditions of the MLA. As of March 31, 2026, the Number of colocations and the Tower tenancy rate exclude DISH Wireless due to the low probability of fulfilling its lease commitments. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94 for December 31, 2025 and September 30, 2025, respectively.Array Digital Infrastructure, Inc.Consolidated Statement of Operations Highlights(Unaudited)Three Months EndedJune 30,Six Months EndedJune 30,202620252026vs. 2025202620252026vs. 2025(Dollars and shares in thousands, except per share amounts)Operating revenuesSite rental$53,175$27,23095 %$104,199$53,82594 %Services8951,299(31) %1,8831,68812 %Total operating revenues54,07028,52990 %106,08255,51391 %Operating expensesCost of operations (excluding Depreciation, amortization and accretion reported below)23,49719,39621 %45,10635,68726 %Selling, general and administrative22,90619,33718 %35,65148,537(27) %Depreciation, amortization and accretion14,42811,99920 %27,03223,99213 %(Gain) loss on asset disposals, net3,809(313)N/M4,713(87)N/M(Gain) loss on license sales and exchanges, net(409,833)(3,700)N/M(566,468)(4,800)N/MTotal operating expenses(345,193)46,719N/M(453,966)103,329N/MOperating income (loss)399,263(18,190)N/M560,048(47,816)N/MOther income (expense)Equity in earnings of unconsolidated entities34,72641,714(17) %75,13577,641(3) %Interest and dividend income6,4313,70174 %10,6536,35868 %Interest expense(10,860)(3,711)N/M(18,040)(7,378)N/MShort-term imputed spectrum lease income23,770—N/M57,970—N/MOther, net(13)—N/M(26)—N/MTotal other income54,05441,70430 %125,69276,62164 %Income before income taxes453,31723,514N/M685,74028,805N/MIncome tax expense115,8708,415N/M168,2688,222N/MNet income from continuing operations337,44715,099N/M517,47220,583N/MLess: Net income from continuing operations attributable to noncontrolling interests, net of tax3,677326N/M3,8701,127N/MNet income from continuing operations attributable to Array shareholders333,77014,773N/M513,60219,456N/MNet income from discontinued operations25,11417,09847 %23,07731,300(26) %Less: Net income from discontinued operations attributable to noncontrolling interests, net of tax188375(50) %1881,013(81) %Net income from discontinued operations attributable to Array shareholders24,92616,72349 %22,88930,287(24) %Net income362,56132,197N/M540,54951,883N/MLess: Net income attributable to noncontrolling interests, net of tax3,865701N/M4,0582,14090 %Net income attributable to Array shareholders$ 358,696$ 31,496N/M$ 536,491$ 49,743N/MBasic weighted average shares outstanding86,48285,7791 %86,44985,4591 %Basic earnings per share from continuing operations attributable to Array shareholders$ 3.86$ 0.17N/M$ 5.94$ 0.23N/MBasic earnings per share from discontinued operations attributable to Array shareholders$ 0.29$ 0.2048 %$ 0.27$ 0.35(25) %Basic earnings per share attributable to Array shareholders$ 4.15$ 0.37N/M$ 6.21$ 0.58N/MDiluted weighted average shares outstanding86,51087,784(1) %86,49987,947(2) %Diluted earnings per share from continuing operations attributable to Array shareholders$ 3.86$ 0.17N/M$ 5.94$ 0.22N/MDiluted earnings per share from discontinued operations attributable to Array shareholders$ 0.29$ 0.1951 %$ 0.26$ 0.35(23) %Diluted earnings per share attributable to Array shareholders$ 4.15$ 0.36N/M$ 6.20$ 0.57N/MN/M - Percentage change not meaningfulArray Digital Infrastructure, Inc.Consolidated Statement of Cash Flows(Unaudited)Six Months EndedJune 30,20262025(Dollars in thousands)Cash flows from operating activitiesNet income$ 540,549$ 51,883Net income from discontinued operations23,07731,300Net income from continuing operations517,47220,583Add (deduct) adjustments to reconcile net income to net cash flows from operating activitiesDepreciation, amortization and accretion27,03223,992Bad debts expense196415Stock-based compensation expense5401,694Deferred income taxes, net(203,326)(1,050)Equity in earnings of unconsolidated entities(75,135)(77,641)Distributions from unconsolidated entities66,55387,938(Gain) loss on asset disposals, net4,713(87)(Gain) loss on license sales and exchanges, net(566,468)(4,800)Other operating activities22567Changes in assets and liabilities from operationsAccounts receivable4,367(10,279)Accounts payable(3,431)(2,254)Customer deposits and deferred revenues(56,735)194Accrued taxes288,663(11,980)Accrued interest(390)(8)Other assets and liabilities(17,473)(26,864)Net cash used in operating activities - continuing operations(13,197)(80)Net cash provided by (used in) operating activities - discontinued operations(5,791)484,669Net cash provided by (used in) operating activities(18,988)484,589Cash flows from investing activitiesCash paid for additions to property, plant and equipment(19,629)(11,463)Cash paid for licenses—(4,145)Cash received from divestitures2,185,801—Other investing activities—1,301Net cash provided by (used in) investing activities - continuing operations2,166,172(14,307)Net cash used in investing activities - discontinued operations—(135,561)Net cash provided by (used in) investing activities 2,166,172(149,868)Cash flows from financing activitiesRepayment of long-term debt—(12,000)Tax withholdings, net of cash receipts, for stock-based compensation awards(2,068)(35,250)Repurchase of Common Shares—(21,360)Dividends paid to Array shareholders(1,836,737)—Payment of debt issuance costs—(1,676)Distributions to noncontrolling interests(4,750)(2,391)Payments to acquire additional interest in subsidiaries(593)—Other financing activities—(589)Net cash used in financing activities - continuing operations(1,844,148)(73,266)Net cash used in financing activities - discontinued operations—(19,703)Net cash used in financing activities(1,844,148)(92,969)Net increase in cash, cash equivalents and restricted cash303,036241,752Cash, cash equivalents and restricted cashBeginning of period113,400159,142End of period$ 416,436$ 400,894Array Digital Infrastructure, Inc.Consolidated Balance Sheet Highlights(Unaudited)ASSETSJune 30, 2026December 31, 2025(Dollars in thousands)Current assetsCash and cash equivalents$ 416,436$ 113,400Accounts receivable, net17,83121,656Prepaid expenses2,0453,216Other current assets2,4346,515Total current assets438,746144,787Non-current assets held for sale47,3901,591,675Licenses1,594,6491,642,187Investments in unconsolidated entities421,607412,608Property, plant and equipment, net374,700388,999Operating lease right-of-use assets467,590472,995Other assets and deferred charges26,67724,837Total assets$ 3,371,359$ 4,678,088Array Digital Infrastructure, Inc.Consolidated Balance Sheet Highlights(Unaudited)LIABILITIES AND EQUITYJune 30, 2026December 31, 2025(Dollars in thousands, except per share amounts)Current liabilitiesCurrent portion of long-term debt$ 8,125$ 4,063Accounts payable41,04138,395Customer deposits and deferred revenues27,51585,945Accrued taxes317,40716,884Accrued compensation1,0704,322Short-term operating lease liabilities16,76715,294Current liabilities of discontinued operations24,85620,242Other current liabilities24,87514,843Total current liabilities461,656199,988Deferred liabilities and creditsDeferred income tax liability, net169,509387,030Long-term operating lease liabilities505,936509,876Other deferred liabilities and credits295,715336,379Long-term debt, net666,757670,258Total equity1,271,7862,574,557Total liabilities and equity$ 3,371,359$ 4,678,088Array Digital Infrastructure, Inc.EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations(Unaudited)EBITDA, Adjusted EBITDA and Adjusted OIBDAThe following table reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income from continuing operations and Income before income taxes.Three Months EndedJune 30,Six Months EndedJune 30,2026202520262025(Dollars in thousands)Net income from continuing operations (GAAP)$ 337,447$ 15,099$ 517,472$ 20,583Add back:Income tax expense115,8708,415168,2688,222Income before income taxes (GAAP)453,31723,514685,74028,805Add back:Interest expense10,8603,71118,0407,378Depreciation, amortization and accretion14,42811,99927,03223,992EBITDA (Non-GAAP)478,60539,224730,81260,175Add back or deduct:Expenses related to strategic alternatives review7,3917157,5781,860(Gain) loss on asset disposals, net3,809(313)4,713(87)(Gain) loss on license sales and exchanges, net(409,833)(3,700)(566,468)(4,800)Short-term imputed spectrum lease income(23,770)—(57,970)—Adjusted EBITDA (Non-GAAP)56,20235,926118,66557,148Deduct:Equity in earnings of unconsolidated entities34,72641,71475,13577,641Interest and dividend income6,4313,70110,6536,358Other, net(13)—(26)—Adjusted OIBDA (Non-GAAP)$ 15,058$ (9,489)$ 32,903$ (26,851)Adjusted Free Cash Flow (AFCF)AFCF is a non-GAAP measure defined as Net income from continuing operations adjusted for the items set forth in the reconciliation below. AFCF is not a measure of financial performance under GAAP and should not be considered as an alternative to Net income from continuing operations or as an indicator of cash flows.Management believes AFCF is a useful measure of Array's cash generated from operations and its noncontrolling investment interests. The following table reconciles AFCF to the corresponding GAAP measure, Net income from continuing operations. This measure is presented following the sale of Array's wireless operations to T-Mobile on August 1, 2025, at which time the primary business operations for Array changed from providing wireless communications services to a standalone tower company.Six Months Ended June 30, 2026(Dollars in thousands)Net income from continuing operations (GAAP)$ 517,472Add back or deduct:Income tax expense168,268Cash paid for income taxes(78,623)Stock-based compensation expense540Short-term imputed spectrum lease income(57,970)Amortization of deferred debt charges655Equity in earnings of unconsolidated entities(75,135)Distributions from unconsolidated entities66,553(Gain) loss on license sales and exchanges, net(566,468)(Gain) loss on asset disposals, net4,713Depreciation, amortization and accretion27,032Expenses related to strategic alternatives review7,578Straight line and other non-cash revenue adjustments(8,310)Straight line expense adjustment2,811Maintenance and other capital expenditures(2,511)Adjusted Free Cash Flow from continuing operations (Non-GAAP)$ 6,605