Array Digital Q3 continuing-operations profit falls 36%
Array's operating data listed 4,455 owned towers and 4,372 colocations as of September 30, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Array Digital Infrastructure, Inc. (AD) reported third-quarter 2026 total operating revenues of $53.9 million, up 14% year over year; site rental revenue was $52.5 million, also up 14%. Net income from continuing operations attributable to Array shareholders fell 36% to $69.6 million, and diluted continuing-operations earnings per share fell 36% to $0.81.
For the first nine months of 2026, operating activities from continuing operations used $188.2 million in cash, compared with $22.5 million provided in the same 2025 period. Array reaffirmed its full-year 2026 estimates, which management described as its view as of November 6, 2026: revenues of $205-$215 million, Adjusted EBITDA of $220-$235 million, Adjusted OIBDA of $60-$75 million, and capital expenditures of $25-$35 million.
Approximately $30 million related to 600 MHz and 700 MHz licenses remained in pending sales to T-Mobile. The remaining transactions received regulatory approval on October 7, 2026 and are expected to close in 2026, subject to FCC finality and other customary closing conditions. Telephone and Data Systems, Inc. announced September 1, 2026, that it was no longer pursuing its non-binding proposal to acquire Array shares it did not own.
1 point · 0 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointContinuing-operations revenue rose 14% to $53.9 million in Q3 2026.
Negative
- Moderate pointArray shareholders’ continuing-operations net income fell 36% to $69.6 million.
- Moderate pointContinuing-operations operating cash flow was -$188.2 million for the first nine months of 2026.
Filing Explained
Array received
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total operating revenues: $53.9 million
Net income from continuing operations attributable to Array shareholders: $69.6 million
Diluted earnings per share from continuing operations: $0.81
+5 more
8 metrics
Total operating revenues
$53.9 million
Third quarter 2026; $47.1 million in third quarter 2025 (+14%)
Net income from continuing operations attributable to Array shareholders
$69.6 million
Third quarter 2026; $108.8 million in third quarter 2025 (-36%)
Diluted earnings per share from continuing operations
$0.81
Third quarter 2026; $1.25 in third quarter 2025 (-36%)
Continuing-operations operating cash flow
-$188.2 million
Nine months ended September 30, 2026; $22.5 million provided in the same 2025 period
Total operating revenues estimate
$205-$215 million
Current full-year 2026 estimate; unchanged
Adjusted EBITDA estimate
$220-$235 million
Current full-year 2026 estimate; unchanged
Adjusted OIBDA estimate
$60-$75 million
Current full-year 2026 estimate; unchanged
Capital expenditures estimate
$25-$35 million
Current full-year 2026 estimate; unchanged
Key Terms
Adjusted EBITDA, Adjusted OIBDA, Adjusted Free Cash Flow (AFCF), short-term imputed spectrum lease income, +1 more
5 terms
Adjusted EBITDA financial
"Adjusted EBITDA (Non-GAAP)"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted OIBDA financial
"Adjusted OIBDA (Non-GAAP)"
Adjusted OIBDA is a company’s core operating profit before subtracting depreciation and amortization, further cleaned up by removing one-time or unusual items so it shows recurring cash-earning power. Think of it like measuring a car’s steady fuel efficiency after ignoring a flat tire or a rare detour—investors use it to compare underlying operational performance across periods and companies without distortion from non-recurring events or accounting timing.
Adjusted Free Cash Flow (AFCF) financial
"Adjusted Free Cash Flow (AFCF)"
short-term imputed spectrum lease income financial
"Short-term imputed spectrum lease income"
Tower tenancy rate technical
"Tower tenancy rate"
Earnings Snapshot
Total operating revenues: $53.9 million · Guidance included
Third quarter 2026
Total operating revenues
$53.9 million
+14% year over year
Net income from continuing operations attributable to Array shareholders
$69.6 million
-36% year over year
Diluted earnings per share from continuing operations
$0.81
-36% year over year
Guidance
Affirms full-year 2026 estimates: total operating revenues of $205-$215 million; Adjusted EBITDA of $220-$235 million; Adjusted OIBDA of $60-$75 million; capital expenditures of $25-$35 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were AD's third-quarter 2026 revenue and earnings?
AD reported $53.9 million in total operating revenues, up 14% year over year. Net income from continuing operations attributable to Array shareholders was $69.6 million, down 36%, and diluted earnings per share from continuing operations was $0.81, down 36%.
What are AD's 2026 financial estimates?
Array reaffirmed current full-year estimates of $205-$215 million in total operating revenues, $220-$235 million in Adjusted EBITDA, $60-$75 million in Adjusted OIBDA, and $25-$35 million in capital expenditures. Management described these estimates as its view as of November 6, 2026.
Why doesn't AD provide net income guidance?
Array said it did not complete a reconciliation of its 2026 estimated results to net income because it does not provide income-tax guidance. It stated that the impact of income taxes cannot be reasonably predicted.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 6, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (866) 573-4544
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company | |||||
| ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||
Item 2.02. Results of Operations and Financial Condition
On November 6, 2026, Array Digital Infrastructure, Inc. issued a news release announcing its results of operations for the period ended September 30, 2026. A copy of the news release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
The information in this Item 2.02 of Form 8-K is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor will any such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d) The following exhibits are being filed herewith:
| Exhibit Number | Description of Exhibits | |||||||
| 99.1 | Earnings Press Release dated November 6, 2026 | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
| SIGNATURES | |||||||||||
| Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. | |||||||||||
| ARRAY DIGITAL INFRASTRUCTURE, INC. | |||||||||||
| Date: | November 6, 2026 | By: | /s/ Vicki L. Villacrez | ||||||||
| Vicki L. Villacrez | |||||||||||
| Executive Vice President, Chief Financial Officer and Treasurer | |||||||||||
| (principal financial officer) | |||||||||||
Exhibit 99.1
NEWS RELEASE
As previously announced, Array will hold a teleconference on November 6, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.arrayinc.com.
Array reports third quarter 2026 results
Affirms guidance for 2026
CHICAGO (November 6, 2026) — Array Digital Infrastructure, Inc. (NYSE:AD) reported third quarter operating results.
“As Array marks its first year as a tower company, we continue to make meaningful progress against our 2026 strategic priorities,” said Anthony Carlson, President and CEO. “Our team remains intensely focused on maximizing the value of our tower portfolio by driving tenant growth and enhancing operational efficiency. These efforts are strengthening the earnings power of our assets and positioning the company for long-term value creation."
Highlights*
•Optimizing tower operations
◦Site rental revenues grew 14% year over year
◦Delivered consecutive quarter-over-quarter colocation growth
•Continuing to close pending sales of wireless spectrum
◦Received regulatory approval for remaining pending transactions in October, closings remain subject to FCC finality and other customary closing conditions
•Reaffirming 2026 financial guidance
* Comparisons are 3Q’25 to 3Q’26 unless otherwise noted.
Array reported total operating revenues from continuing operations of $53.9 million for the third quarter of 2026, versus $47.1 million for the same period one year ago. Net income attributable to Array shareholders and diluted earnings per share from continuing operations were $69.6 million and $0.81, respectively, for the third quarter of 2026 compared to $108.8 million and $1.25, respectively, in the same period one year ago.
Pending transactions
Subsequent to the August 1, 2025 close of the sale of its wireless operations, Array reached additional agreements with T-Mobile for the sale of spectrum. A significant portion of these closed in May 2026 with approximately $30 million related to 600 MHz and 700 MHz licenses remaining. These remaining transactions received regulatory approval on October 7, 2026 and are expected to close in 2026, subject to FCC finality and other customary closing conditions.
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”). On September 1, 2026, TDS announced that it is no longer pursuing the Array Proposal. For additional information, see TDS' Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on September 2, 2026.
1
2026 Estimated Results
Array’s current estimates of full-year 2026 results are shown below. Such estimates represent management’s view as of November 6, 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 Results | ||||||||
| Previous | Current | |||||||
| (Dollars in millions) | ||||||||
| Total operating revenues | $205-$215 | Unchanged | ||||||
Adjusted OIBDA1 (Non-GAAP) | $60-$75 | Unchanged | ||||||
Adjusted EBITDA1 (Non-GAAP) | $220-$235 | Unchanged | ||||||
| Capital expenditures | $25-$35 | Unchanged | ||||||
The 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 Results | |||||||||||||||||
| 2026 Estimated Results | Nine Months Ended September 30, 2026 | Year Ended December 31, 2025 | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Net income from continuing operations (GAAP) | N/A | $587 | $172 | ||||||||||||||
| Add back: | |||||||||||||||||
| Income tax expense (benefit) | N/A | 138 | (31) | ||||||||||||||
| Income before income taxes (GAAP) | $775-$790 | $726 | $141 | ||||||||||||||
| Add back or deduct: | |||||||||||||||||
| Interest expense | 45 | 29 | 28 | ||||||||||||||
| Depreciation, amortization and accretion | 50 | 40 | 48 | ||||||||||||||
EBITDA (Non-GAAP)1 | $870-$885 | $795 | $218 | ||||||||||||||
| Add back or deduct: | |||||||||||||||||
| Expenses related to strategic alternatives review | — | 14 | 2 | ||||||||||||||
| Loss on impairment of licenses | — | — | 48 | ||||||||||||||
| (Gain) loss on asset disposals, net | — | 6 | 2 | ||||||||||||||
| (Gain) loss on license sales and exchanges, net | (585) | (566) | (6) | ||||||||||||||
| Short-term imputed spectrum lease income | (65) | (66) | (69) | ||||||||||||||
Adjusted EBITDA (Non-GAAP)1 | $220-$235 | $182 | $194 | ||||||||||||||
| Deduct: | |||||||||||||||||
| Equity in earnings of unconsolidated entities | 145 | 116 | 174 | ||||||||||||||
| Interest and dividend income | 15 | 15 | 19 | ||||||||||||||
Adjusted OIBDA (Non-GAAP)1 | $60-$75 | $51 | $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, expenses related to strategic alternatives review, 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, expenses related to the strategic alternatives review and short-term imputed spectrum lease income, 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.
2
Conference Call Information
Array will hold a conference call on November 6, 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/505221542
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 Array
Array leases tower space to tenants and provides ancillary services, holds noncontrolling interests in primarily wireless operating companies and holds certain wireless spectrum licenses. Array owns 4,455 towers in 19 states and enables the deployment of 5G and other wireless technologies throughout the country. As of September 30, 2026, Telephone and Data Systems, Inc. owned approximately 81.9% of Array.
Contacts
John Toomey, Treasurer and Vice President - Corporate Relations
john.toomey@tdsinc.com
Karen Samples, Corporate Finance and Investor Relations Senior Manager
karen.samples@tdsinc.com
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 Array'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: 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.
3
| Array Digital Infrastructure, Inc. | |||||||||||||||||||||||||||||
| Summary Operating Data (Unaudited) | |||||||||||||||||||||||||||||
| As of or for the Quarter Ended | 9/30/2026 | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||||||||||||||||||||||
| Capital expenditures from continuing operations (thousands) | $ | 3,915 | $ | 3,895 | $ | 8,645 | $ | 12,933 | $ | 7,927 | |||||||||||||||||||
| Owned towers | 4,455 | 4,456 | 4,452 | 4,450 | 4,449 | ||||||||||||||||||||||||
Number of colocations1 | 4,372 | 4,362 | 4,290 | 4,572 | 4,517 | ||||||||||||||||||||||||
Tower tenancy rate2 | 0.98 | 0.98 | 0.96 | 1.03 | 1.02 | ||||||||||||||||||||||||
1Represents 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.
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. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94 for December 31, 2025 and September 30, 2025, respectively.
4
| Array Digital Infrastructure, Inc. | |||||||||||||||||||||||||||||||||||
| Consolidated Statement of Operations Highlights | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 vs. 2025 | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||||||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Operating revenues | |||||||||||||||||||||||||||||||||||
| Site rental | $ | 52,475 | $ | 45,838 | 14 | % | $ | 156,674 | $ | 99,663 | 57 | % | |||||||||||||||||||||||
| Services | 1,395 | 1,281 | 9 | % | 3,278 | 2,969 | 10 | % | |||||||||||||||||||||||||||
| Total operating revenues | 53,870 | 47,119 | 14 | % | 159,952 | 102,632 | 56 | % | |||||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||||||||
| Cost of operations (excluding Depreciation, amortization and accretion reported below) | 23,349 | 20,976 | 11 | % | 68,455 | 56,662 | 21 | % | |||||||||||||||||||||||||||
| Selling, general and administrative | 18,200 | 20,525 | (11) | % | 53,851 | 69,063 | (22) | % | |||||||||||||||||||||||||||
| Depreciation, amortization and accretion | 13,405 | 11,868 | 13 | % | 40,437 | 35,860 | 13 | % | |||||||||||||||||||||||||||
| Loss on impairment of licenses | — | 47,679 | N/M | — | 47,679 | N/M | |||||||||||||||||||||||||||||
| (Gain) loss on asset disposals, net | 1,233 | 707 | 74 | % | 5,946 | 620 | N/M | ||||||||||||||||||||||||||||
| (Gain) loss on license sales and exchanges, net | 9 | (1,323) | N/M | (566,459) | (6,123) | N/M | |||||||||||||||||||||||||||||
| Total operating expenses | 56,196 | 100,432 | (44) | % | (397,770) | 203,761 | N/M | ||||||||||||||||||||||||||||
| Operating income (loss) | (2,326) | (53,313) | 96 | % | 557,722 | (101,129) | N/M | ||||||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||||||||
| Equity in earnings of unconsolidated entities | 41,009 | 69,811 | (41) | % | 116,144 | 147,453 | (21) | % | |||||||||||||||||||||||||||
| Interest and dividend income | 4,442 | 8,909 | (50) | % | 15,095 | 15,267 | (1) | % | |||||||||||||||||||||||||||
| Interest expense | (10,972) | (8,855) | (24) | % | (29,013) | (16,233) | (79) | % | |||||||||||||||||||||||||||
| Short-term imputed spectrum lease income | 7,669 | 30,413 | (75) | % | 65,639 | 30,413 | N/M | ||||||||||||||||||||||||||||
| Other, net | 35 | 254 | (86) | % | 9 | 253 | (97) | % | |||||||||||||||||||||||||||
| Total other income | 42,183 | 100,532 | (58) | % | 167,874 | 177,153 | (5) | % | |||||||||||||||||||||||||||
| Income before income taxes | 39,857 | 47,219 | (16) | % | 725,596 | 76,024 | N/M | ||||||||||||||||||||||||||||
| Income tax expense (benefit) | (30,121) | (62,701) | 52 | % | 138,147 | (54,479) | N/M | ||||||||||||||||||||||||||||
| Net income from continuing operations | 69,978 | 109,920 | (36) | % | 587,449 | 130,503 | N/M | ||||||||||||||||||||||||||||
| Less: Net income from continuing operations attributable to noncontrolling interests, net of tax | 395 | 1,084 | (64) | % | 4,264 | 2,210 | 93 | % | |||||||||||||||||||||||||||
| Net income from continuing operations attributable to Array shareholders | 69,583 | 108,836 | (36) | % | 583,185 | 128,293 | N/M | ||||||||||||||||||||||||||||
| Net income (loss) from discontinued operations | (788) | (130,492) | 99 | % | 22,290 | (99,193) | N/M | ||||||||||||||||||||||||||||
| Less: Net income from discontinued operations attributable to noncontrolling interests, net of tax | — | 16,809 | N/M | 189 | 17,822 | (99) | % | ||||||||||||||||||||||||||||
| Net income (loss) from discontinued operations attributable to Array shareholders | (788) | (147,301) | 99 | % | 22,101 | (117,015) | N/M | ||||||||||||||||||||||||||||
| Net income (loss) | 69,190 | (20,572) | N/M | 609,739 | 31,310 | N/M | |||||||||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests, net of tax | 395 | 17,893 | (98) | % | 4,453 | 20,032 | (78) | % | |||||||||||||||||||||||||||
| Net income (loss) attributable to Array shareholders | $ | 68,795 | $ | (38,465) | N/M | $ | 605,286 | $ | 11,278 | N/M | |||||||||||||||||||||||||
5
| Array Digital Infrastructure, Inc. | |||||||||||||||||||||||||||||||||||
| Consolidated Statement of Operations Highlights | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 vs. 2025 | 2026 | 2025 | 2026 vs. 2025 | ||||||||||||||||||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Basic weighted average shares outstanding | 86,489 | 86,251 | — | 86,462 | 85,726 | 1 | % | ||||||||||||||||||||||||||||
| Basic earnings per share from continuing operations attributable to Array shareholders | $ | 0.81 | $ | 1.26 | (36) | % | $ | 6.74 | $ | 1.50 | N/M | ||||||||||||||||||||||||
| Basic earnings (loss) per share from discontinued operations attributable to Array shareholders | $ | (0.01) | $ | (1.71) | 99 | % | $ | 0.26 | $ | (1.37) | N/M | ||||||||||||||||||||||||
| Basic earnings (loss) per share attributable to Array shareholders | $ | 0.80 | $ | (0.45) | N/M | $ | 7.00 | $ | 0.13 | N/M | |||||||||||||||||||||||||
| Diluted weighted average shares outstanding | 86,523 | 86,846 | — | 86,506 | 87,842 | (2) | % | ||||||||||||||||||||||||||||
| Diluted earnings per share from continuing operations attributable to Array shareholders | $ | 0.81 | $ | 1.25 | (36) | % | $ | 6.74 | $ | 1.46 | N/M | ||||||||||||||||||||||||
| Diluted earnings (loss) per share from discontinued operations attributable to Array shareholders | $ | (0.01) | $ | (1.69) | 99 | % | $ | 0.26 | $ | (1.33) | N/M | ||||||||||||||||||||||||
| Diluted earnings (loss) per share attributable to Array shareholders | $ | 0.80 | $ | (0.44) | N/M | $ | 7.00 | $ | 0.13 | N/M | |||||||||||||||||||||||||
N/M - Percentage change not meaningful
6
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Statement of Cash Flows | |||||||||||
| (Unaudited) | |||||||||||
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Dollars in thousands) | |||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 609,739 | $ | 31,310 | |||||||
| Net income (loss) from discontinued operations | 22,290 | (99,193) | |||||||||
| Net income from continuing operations | 587,449 | 130,503 | |||||||||
| Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | |||||||||||
| Depreciation, amortization and accretion | 40,437 | 35,860 | |||||||||
| Bad debts expense | 253 | 1,655 | |||||||||
| Stock-based compensation expense | 879 | 1,560 | |||||||||
| Deferred income taxes, net | (200,187) | (81,087) | |||||||||
| Equity in earnings of unconsolidated entities | (116,144) | (147,453) | |||||||||
| Distributions from unconsolidated entities | 89,584 | 149,732 | |||||||||
| Loss on impairment of licenses | — | 47,679 | |||||||||
| (Gain) loss on asset disposals, net | 5,946 | 620 | |||||||||
| (Gain) loss on license sales and exchanges, net | (566,459) | (6,123) | |||||||||
| Other operating activities | 561 | 338 | |||||||||
| Changes in assets and liabilities from operations | |||||||||||
| Accounts receivable | 8,635 | (5,157) | |||||||||
| Accounts payable | (10,487) | 22,231 | |||||||||
| Customer deposits and deferred revenues | (64,239) | (28,880) | |||||||||
| Accrued taxes | 57,916 | (11,713) | |||||||||
| Accrued interest | 429 | 2,372 | |||||||||
| Other assets and liabilities | (22,764) | (89,627) | |||||||||
| Net cash provided by (used in) operating activities - continuing operations | (188,191) | 22,510 | |||||||||
| Net cash provided by (used in) operating activities - discontinued operations | (6,375) | 380,388 | |||||||||
| Net cash provided by (used in) operating activities | (194,566) | 402,898 | |||||||||
| Cash flows from investing activities | |||||||||||
| Cash paid for additions to property, plant and equipment | (21,014) | (18,597) | |||||||||
| Cash paid for licenses | — | (4,175) | |||||||||
| Cash received from divestitures | 2,185,801 | 5,439 | |||||||||
| Other investing activities | — | 1,301 | |||||||||
| Net cash provided by (used in) investing activities - continuing operations | 2,164,787 | (16,032) | |||||||||
| Net cash provided by investing activities - discontinued operations | — | 2,462,399 | |||||||||
| Net cash provided by investing activities | 2,164,787 | 2,446,367 | |||||||||
| Cash flows from financing activities | |||||||||||
| Issuance of long-term debt | — | 325,000 | |||||||||
| Repayment of long-term debt | (2,031) | (875,250) | |||||||||
| Tax withholdings, net of cash receipts, for stock-based compensation awards | (2,068) | (63,506) | |||||||||
| Repurchase of Common Shares | — | (21,360) | |||||||||
| Dividends paid to Array shareholders | (1,836,737) | (1,986,719) | |||||||||
| Payment of debt issuance costs | — | (5,668) | |||||||||
| Distributions to noncontrolling interests | (8,624) | (26,811) | |||||||||
| Payments to acquire additional interest in subsidiaries | (593) | — | |||||||||
| Other financing activities | — | (7,930) | |||||||||
| Net cash used in financing activities - continuing operations | (1,850,053) | (2,662,244) | |||||||||
| Net cash used in financing activities - discontinued operations | — | (20,537) | |||||||||
| Net cash used in financing activities | (1,850,053) | (2,682,781) | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 120,168 | 166,484 | |||||||||
| Cash, cash equivalents and restricted cash | |||||||||||
| Beginning of period | 113,400 | 159,142 | |||||||||
| End of period | $ | 233,568 | $ | 325,626 | |||||||
7
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Balance Sheet Highlights | |||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| (Dollars in thousands) | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 233,568 | $ | 113,400 | |||||||
| Accounts receivable, net | 11,897 | 21,656 | |||||||||
| Prepaid expenses | 2,330 | 3,216 | |||||||||
| Other current assets | 2,011 | 6,515 | |||||||||
| Total current assets | 249,806 | 144,787 | |||||||||
| Non-current assets held for sale | 57,366 | 1,591,675 | |||||||||
| Licenses | 1,584,674 | 1,642,187 | |||||||||
| Investments in unconsolidated entities | 439,585 | 412,608 | |||||||||
| Property, plant and equipment, net | 384,149 | 388,999 | |||||||||
| Operating lease right-of-use assets | 459,705 | 472,995 | |||||||||
| Other assets and deferred charges | 32,444 | 24,837 | |||||||||
| Total assets | $ | 3,207,729 | $ | 4,678,088 | |||||||
8
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Balance Sheet Highlights | |||||||||||
| (Unaudited) | |||||||||||
| LIABILITIES AND EQUITY | |||||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| Current liabilities | |||||||||||
| Current portion of long-term debt | $ | 8,125 | $ | 4,063 | |||||||
| Accounts payable | 35,671 | 38,395 | |||||||||
| Customer deposits and deferred revenues | 20,011 | 85,945 | |||||||||
| Accrued taxes | 93,152 | 16,884 | |||||||||
| Accrued compensation | 1,365 | 4,322 | |||||||||
| Short-term operating lease liabilities | 16,538 | 15,294 | |||||||||
| Current liabilities of discontinued operations | 24,304 | 20,242 | |||||||||
| Other current liabilities | 26,087 | 14,843 | |||||||||
| Total current liabilities | 225,253 | 199,988 | |||||||||
| Deferred liabilities and credits | |||||||||||
| Deferred income tax liability, net | 173,221 | 387,030 | |||||||||
| Long-term operating lease liabilities | 499,418 | 509,876 | |||||||||
| Other deferred liabilities and credits | 307,342 | 336,379 | |||||||||
| Long-term debt, net | 665,016 | 670,258 | |||||||||
| Total equity | 1,337,479 | 2,574,557 | |||||||||
| Total liabilities and equity | $ | 3,207,729 | $ | 4,678,088 | |||||||
9
Array Digital Infrastructure, Inc.
EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations
(Unaudited)
EBITDA, Adjusted EBITDA and Adjusted OIBDA
The 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 Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Net income from continuing operations (GAAP) | $ | 69,978 | $ | 109,920 | $ | 587,449 | $ | 130,503 | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Income tax expense (benefit) | (30,121) | (62,701) | 138,147 | (54,479) | |||||||||||||||||||
| Income before income taxes (GAAP) | 39,857 | 47,219 | 725,596 | 76,024 | |||||||||||||||||||
| Add back: | |||||||||||||||||||||||
| Interest expense | 10,972 | 8,855 | 29,013 | 16,233 | |||||||||||||||||||
| Depreciation, amortization and accretion | 13,405 | 11,868 | 40,437 | 35,860 | |||||||||||||||||||
| EBITDA (Non-GAAP) | 64,234 | 67,942 | 795,046 | 128,117 | |||||||||||||||||||
| Add back or deduct: | |||||||||||||||||||||||
| Expenses related to strategic alternatives review | 5,934 | 489 | 13,512 | 2,349 | |||||||||||||||||||
| Loss on impairment of licenses | — | 47,679 | — | 47,679 | |||||||||||||||||||
| (Gain) loss on asset disposals, net | 1,233 | 707 | 5,946 | 620 | |||||||||||||||||||
| (Gain) loss on license sales and exchanges, net | 9 | (1,323) | (566,459) | (6,123) | |||||||||||||||||||
| Short-term imputed spectrum lease income | (7,669) | (30,413) | (65,639) | (30,413) | |||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | 63,741 | 85,081 | 182,406 | 142,229 | |||||||||||||||||||
| Deduct: | |||||||||||||||||||||||
| Equity in earnings of unconsolidated entities | 41,009 | 69,811 | 116,144 | 147,453 | |||||||||||||||||||
| Interest and dividend income | 4,442 | 8,909 | 15,095 | 15,267 | |||||||||||||||||||
| Other, net | 35 | 254 | 9 | 253 | |||||||||||||||||||
| Adjusted OIBDA (Non-GAAP) | $ | 18,255 | $ | 6,107 | $ | 51,158 | $ | (20,744) | |||||||||||||||
10
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.
| Nine Months Ended September 30, 2026 | |||||
| (Dollars in thousands) | |||||
| Net income from continuing operations (GAAP) | $ | 587,449 | |||
| Add back or deduct: | |||||
| Income tax expense | 138,147 | ||||
Cash paid for income taxes1 | (274,270) | ||||
| Stock-based compensation expense | 879 | ||||
| Short-term imputed spectrum lease income | (65,639) | ||||
| Amortization of deferred debt charges | 991 | ||||
| Equity in earnings of unconsolidated entities | (116,144) | ||||
| Distributions from unconsolidated entities | 89,584 | ||||
| (Gain) loss on license sales and exchanges, net | (566,459) | ||||
| (Gain) loss on asset disposals, net | 5,946 | ||||
| Depreciation, amortization and accretion | 40,437 | ||||
| Expenses related to strategic alternatives review | 13,512 | ||||
| Straight line and other non-cash revenue adjustments | (14,327) | ||||
| Straight line expense adjustment | 3,070 | ||||
| Maintenance and other capital expenditures | (5,172) | ||||
| Adjusted Free Cash Flow from continuing operations (Non-GAAP) | $ | (161,996) | |||
1Substantially all of the cash paid for income taxes are related to the sale of various wireless spectrum licenses in 2026.
11