Array Digital Infrastructure (NYSE: AD) surges to 2025 profit and issues 2026 growth guidance
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Array Digital Infrastructure, Inc. reported a major turnaround in 2025 as it shifted to a standalone tower business and detailed 2026 guidance. Total operating revenues from continuing operations rose to $163.0 million from $102.9 million, driven mainly by a 51% increase in site rental revenues. Net income attributable to shareholders from continuing operations swung to a $169.7 million profit, or diluted earnings per share of $1.94, compared with a $(1.00) loss per share in 2024.
The company closed the sale of wireless operations and select spectrum assets to T-Mobile in August 2025 and paid a $23 per share special dividend, then sold 3.45GHz and 700MHz spectrum licenses to AT&T, supporting a further $10.25 special dividend in February 2026. Additional spectrum deals with T-Mobile are expected to generate $178 million in aggregate proceeds, and a separate sale of spectrum licenses to Verizon is expected to close in the second or third quarter of 2026. For 2026, Array guides to total operating revenues of $200–$215 million, Adjusted EBITDA of $200–$215 million, Adjusted OIBDA of $50–$65 million, and capital expenditures of $25–$35 million, reflecting confidence in tower growth and spectrum monetization.
Positive
- Major profitability turnaround: Net income attributable to shareholders from continuing operations improved to $169.7 million, or $1.94 diluted EPS, from a loss of $85.9 million, or $(1.00) per share, in 2024.
- Strong revenue and tower growth: Total operating revenues from continuing operations grew to $163.0 million from $102.9 million, with site rental revenues up 51% and colocations and tower tenancy both increasing.
- Supportive 2026 guidance: Management projects 2026 total operating revenues of $200–$215 million, Adjusted EBITDA of $200–$215 million, and Adjusted OIBDA of $50–$65 million, implying continued growth from the new tower-focused model.
- Large capital returns funded by asset sales: The company closed significant spectrum and wireless operations sales to T-Mobile and AT&T, enabling a $23 per share special dividend in 2025 and a $10.25 special dividend in early 2026.
Negative
- None.
Insights
Array posts sharp 2025 profit and lays out sizable 2026 growth plan.
Array Digital Infrastructure completed a strategic shift from wireless operations to a tower-focused business, using spectrum sales to fund large shareholder returns. 2025 total operating revenues from continuing operations rose to
Profitability improved dramatically. Net income attributable to shareholders from continuing operations reached
Looking ahead, 2026 guidance calls for total operating revenues of
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): February 20, 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
UNITED STATES CELLULAR CORPORATION
8410 West Bryn Mawr, Chicago, Illinois 60631
(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 February 20, 2026, Array Digital Infrastructure, Inc. issued a news release announcing its results of operations for the period ended December 31, 2025. 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 February 20, 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: | February 20, 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 February 20, 2026, at 9:00 a.m. CST. Listen to the call live via the Events & Presentations page of investors.arrayinc.com.
Array reports fourth quarter and full year 2025 results
Array issues 2026 guidance
CHICAGO (February 20, 2026) — Array Digital Infrastructure, Inc.SM (NYSE:AD) reported fourth quarter and full year 2025 operating results.
“After a transformative 2025, Array enters 2026 with strong momentum,” said Anthony Carlson, President and CEO. “The organization remains laser-focused on a smooth T-Mobile MLA integration and increasing tower tenancy. Further, we continue to make progress on monetizing our spectrum, including closing on the previously announced AT&T transaction in mid-January."
Highlights
•Grew and strengthened tower operations*
◦Site rental revenues increased 51%
◦Co-location applications, excluding T-Mobile applications, increased 47%
•Closed on the sale of the previously announced wireless operations and select spectrum assets to T-Mobile in August 2025 and issued $23 per share special dividend
•Closed on previously announced sale of 3.45GHz and 700MHz spectrum licenses to AT&T on January 13, 2026; issued $10.25 special dividend on February 2, 2026
*Comparisons are Year Ended December 31, 2025 to Year Ended December 31, 2024
Array reported total operating revenues from continuing operations of $60.3 million for the fourth quarter of 2025, versus $26.1 million for the same period one year ago. Net income attributable to Array shareholders and related diluted earnings per share from continuing operations were $41.4 million and $0.48, respectively, for the fourth quarter of 2025 compared to $11.7 million and $0.13, respectively, in the same period one year ago.
Array reported total operating revenues from continuing operations of $163.0 million and $102.9 million for the years ended 2025 and 2024, respectively. Net income (loss) attributable to Array shareholders and related diluted earnings (loss) per share from continuing operations were $169.7 million and $1.94, respectively, for the year ended 2025 compared to $(85.9) million and $(1.00), respectively, for the year ended 2024.
"As I look forward, our priorities remain the same – support the T-Mobile integration, grow colocation revenue, optimize our ground leases, and monetize our remaining spectrum,” Carlson continued.
Pending transactions
Subsequent to the August 1, 2025 close of the sale of wireless operations, Array reached additional agreements with T-Mobile for 700 MHz spectrum licenses, AWS and a portion of the 600 MHz put/call totaling $178 million in aggregate expected proceeds, subject to customary closing conditions and regulatory approvals.
On October 17, 2024, Array, and certain subsidiaries of Array, entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. The transaction is expected to close in the second or third quarter of 2026, subject to regulatory approval and other customary closing conditions, and the termination of the T-Mobile Short-Term Spectrum Manager Lease Agreement.
1
2026 Estimated Results
Array's current estimates of full-year 2026 results are shown below. Such estimates represent management’s view as of February 20, 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 | Actual Results for the Year Ended December 31, 2025 | ||||||||||
| (Dollars in millions) | |||||||||||
| Total operating revenues | $200-$215 | $163 | |||||||||
Adjusted OIBDA1 (Non-GAAP) | $50-$65 | $1 | |||||||||
Adjusted EBITDA1 (Non-GAAP) | $200-$215 | $194 | |||||||||
| Capital expenditures | $25-$35 | $30 | |||||||||
The following tables reconcile EBITDA, Adjusted EBITDA, and Adjusted OIBDA to the corresponding GAAP measures, Net income (loss) from continuing operations or Income (loss) 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.
| 2026 Estimated Results | Actual Results for the Year Ended December 31, 2025 | Actual Results for the Year Ended December 31, 2024 | ||||||||||||||||||
| (Dollars in millions) | ||||||||||||||||||||
| Net income (loss) from continuing operations (GAAP) | N/A | $ | 172 | $ | (80) | |||||||||||||||
| Add back: | ||||||||||||||||||||
| Income tax benefit | N/A | (31) | (19) | |||||||||||||||||
| Income (loss) before income taxes (GAAP) | $780-$795 | $ | 141 | $ | (100) | |||||||||||||||
| Add back or deduct: | ||||||||||||||||||||
| Interest expense | 45 | 28 | 12 | |||||||||||||||||
| Depreciation, amortization and accretion | 50 | 48 | 47 | |||||||||||||||||
EBITDA (Non-GAAP)1 | $875-$890 | $ | 218 | $ | (40) | |||||||||||||||
| Add back or deduct: | ||||||||||||||||||||
| Expenses related to strategic alternatives review | — | 2 | 22 | |||||||||||||||||
| Loss on impairment of licenses | — | 48 | 136 | |||||||||||||||||
| (Gain) loss on asset disposals, net | — | 2 | 1 | |||||||||||||||||
| (Gain) loss on license sales and exchanges, net | (595) | (6) | 3 | |||||||||||||||||
| Short-term imputed spectrum lease income | (80) | (69) | — | |||||||||||||||||
Adjusted EBITDA (Non-GAAP)1 | $200-$215 | $ | 194 | $ | 122 | |||||||||||||||
| Deduct: | ||||||||||||||||||||
| Equity in earnings of unconsolidated entities | 140 | 174 | 161 | |||||||||||||||||
| Interest and dividend income | 10 | 19 | 12 | |||||||||||||||||
Adjusted OIBDA (Non-GAAP)1 | $50-$65 | $ | 1 | $ | (51) | |||||||||||||||
Numbers may not foot due to rounding.
1EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income 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.
2
Conference Call Information
Array will hold a conference call on February 20, 2026 at 9:00 a.m. Central Time.
•Access the live call on the Events & Presentations page of investors.arrayinc.com or at
https://events.q4inc.com/attendee/189864142
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 Digital Infrastructure, Inc. is a leading owner and operator of shared wireless communications infrastructure in the United States. Array owns 4,450 cell towers in 19 states and enables the deployment of 5G and other wireless technologies throughout the country. As of December 31, 2025, Telephone and Data Systems, Inc. owned approximately 82.0% of Array.
Contacts
John Toomey, Treasurer and Vice President - Corporate Relations
john.toomey@tdsinc.com
Julie Mathews, Director - Investor Relations of TDS
julie.mathews@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 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: 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 and the previously announced spectrum license sales to Verizon will be consummated; whether Array can monetize the 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 revenues; the ability to attract people of outstanding talent; inability to protect Array’s real estate rights, with respect to land leases; advances or changes in technology; impacts of costs, integration problems 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 Array does not control; pending and future litigation; cyber-attacks or other breaches of network or information technology security; control by the 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.
3
Array Digital Infrastructure, Inc.
Summary Operating Data (Unaudited)
| As of or for the Quarter Ended | 12/31/2025 | 9/30/2025 | |||||||||
| Capital expenditures from continuing operations (thousands) | $ | 12,933 | $ | 7,927 | |||||||
| Owned towers | 4,450 | 4,449 | |||||||||
Number of colocations1 | 4,572 | 4,517 | |||||||||
Tower tenancy rate2 | 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.
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.
4
| Array Digital Infrastructure, Inc. | |||||||||||||||||||||||||||||||||||
| Consolidated Statement of Operations Highlights | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 vs. 2024 | 2025 | 2024 | 2025 vs. 2024 | ||||||||||||||||||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Operating revenues | |||||||||||||||||||||||||||||||||||
| Site rental | $ | 54,990 | $ | 26,019 | N/M | $ | 154,654 | $ | 102,610 | 51 | % | ||||||||||||||||||||||||
| Services | 5,338 | 70 | N/M | 8,307 | 323 | N/M | |||||||||||||||||||||||||||||
| Total operating revenues | 60,328 | 26,089 | N/M | 162,961 | 102,933 | 58 | % | ||||||||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||||||||||||||
| Cost of operations (excluding Depreciation, amortization and accretion reported below) | 22,823 | 20,174 | 13 | % | 79,485 | 72,997 | 9 | % | |||||||||||||||||||||||||||
| Selling, general and administrative | 15,381 | 23,559 | (35) | % | 84,444 | 102,556 | (18) | % | |||||||||||||||||||||||||||
| Depreciation, amortization and accretion | 12,402 | 12,156 | 2 | % | 48,262 | 47,212 | 2 | % | |||||||||||||||||||||||||||
| Loss on impairment of licenses | — | — | N/M | 47,679 | 136,234 | (65) | % | ||||||||||||||||||||||||||||
| (Gain) loss on asset disposals, net | 1,125 | 219 | N/M | 1,746 | 809 | N/M | |||||||||||||||||||||||||||||
| (Gain) loss on license sales and exchanges, net | — | (900) | N/M | (6,123) | 3,460 | N/M | |||||||||||||||||||||||||||||
| Total operating expenses | 51,731 | 55,208 | (6) | % | 255,493 | 363,268 | (30) | % | |||||||||||||||||||||||||||
| Operating income (loss) | 8,597 | (29,119) | N/M | (92,532) | (260,335) | 64 | % | ||||||||||||||||||||||||||||
| Other income (expense) | |||||||||||||||||||||||||||||||||||
| Equity in earnings of unconsolidated entities | 26,301 | 37,919 | (31) | % | 173,754 | 161,364 | 8 | % | |||||||||||||||||||||||||||
| Interest and dividend income | 3,649 | 2,579 | 41 | % | 18,917 | 11,656 | 62 | % | |||||||||||||||||||||||||||
| Interest expense | (11,989) | (3,203) | N/M | (28,222) | (12,405) | N/M | |||||||||||||||||||||||||||||
| Short-term imputed spectrum lease income | 38,619 | — | N/M | 69,033 | — | N/M | |||||||||||||||||||||||||||||
| Other, net | (81) | — | N/M | 169 | — | N/M | |||||||||||||||||||||||||||||
| Total other income | 56,499 | 37,295 | 51 | % | 233,651 | 160,615 | 45 | % | |||||||||||||||||||||||||||
| Income (loss) before income taxes | 65,096 | 8,176 | N/M | 141,119 | (99,720) | N/M | |||||||||||||||||||||||||||||
| Income tax expense (benefit) | 23,332 | (3,656) | N/M | (31,148) | (19,256) | (62) | % | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 41,764 | 11,832 | N/M | 172,267 | (80,464) | N/M | |||||||||||||||||||||||||||||
| Less: Net income from continuing operations attributable to noncontrolling interests, net of tax | 404 | 136 | N/M | 2,615 | 5,411 | (52) | % | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations attributable to Array shareholders | 41,360 | 11,696 | N/M | 169,652 | (85,875) | N/M | |||||||||||||||||||||||||||||
| Net income (loss) from discontinued operations | (3,882) | (6,826) | 43 | % | (103,074) | 48,886 | N/M | ||||||||||||||||||||||||||||
| Less: Net income from discontinued operations attributable to noncontrolling interests, net of tax | — | 322 | N/M | 17,822 | 2,414 | N/M | |||||||||||||||||||||||||||||
| Net income (loss) from discontinued operations attributable to Array shareholders | $ | (3,882) | $ | (7,148) | 46 | % | $ | (120,896) | $ | 46,472 | N/M | ||||||||||||||||||||||||
5
| Array Digital Infrastructure, Inc. | |||||||||||||||||||||||||||||||||||
| Consolidated Statement of Operations Highlights | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 vs. 2024 | 2025 | 2024 | 2025 vs. 2024 | ||||||||||||||||||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 37,882 | $ | 5,006 | N/M | $ | 69,193 | $ | (31,578) | N/M | |||||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests, net of tax | 404 | 458 | (12) | % | 20,437 | 7,825 | N/M | ||||||||||||||||||||||||||||
| Net income (loss) attributable to Array shareholders | $ | 37,478 | $ | 4,548 | N/M | $ | 48,756 | $ | (39,403) | N/M | |||||||||||||||||||||||||
| Basic weighted average shares outstanding | 86,449 | 85,381 | 1 | % | 85,908 | 85,633 | – | ||||||||||||||||||||||||||||
| Basic earnings (loss) per share from continuing operations attributable to Array shareholders | $ | 0.48 | $ | 0.14 | N/M | $ | 1.98 | $ | (1.00) | N/M | |||||||||||||||||||||||||
| Basic earnings (loss) per share from discontinued operations attributable to Array shareholders | $ | (0.05) | $ | (0.09) | 46 | % | $ | (1.41) | $ | 0.54 | N/M | ||||||||||||||||||||||||
| Basic earnings (loss) per share attributable to Array shareholders | $ | 0.43 | $ | 0.05 | N/M | $ | 0.57 | $ | (0.46) | N/M | |||||||||||||||||||||||||
| Diluted weighted average shares outstanding | 86,514 | 88,322 | (2) | % | 87,293 | 85,633 | 2 | % | |||||||||||||||||||||||||||
| Diluted earnings (loss) per share from continuing operations attributable to Array shareholders | $ | 0.48 | $ | 0.13 | N/M | $ | 1.94 | $ | (1.00) | N/M | |||||||||||||||||||||||||
| Diluted earnings (loss) per share from discontinued operations attributable to Array shareholders | $ | (0.04) | $ | (0.08) | 45 | % | $ | (1.38) | $ | 0.54 | N/M | ||||||||||||||||||||||||
| Diluted earnings (loss) per share attributable to Array shareholders | $ | 0.43 | $ | 0.05 | N/M | $ | 0.56 | $ | (0.46) | N/M | |||||||||||||||||||||||||
N/M - Percentage change not meaningful
6
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Statement of Cash Flows | |||||||||||
| (Unaudited) | |||||||||||
| Year Ended December 31, | 2025 | 2024 | |||||||||
| (Dollars in thousands) | |||||||||||
| Cash flows from operating activities | |||||||||||
| Net income (loss) | $ | 69,193 | $ | (31,578) | |||||||
| Net income (loss) from discontinued operations | (103,074) | 48,886 | |||||||||
| Net income (loss) from continuing operations | 172,267 | (80,464) | |||||||||
| Add (deduct) adjustments to reconcile net income (loss) to net cash flows from operating activities | |||||||||||
| Depreciation, amortization and accretion | 48,262 | 47,212 | |||||||||
| Bad debts expense | 1,689 | (1,729) | |||||||||
| Stock-based compensation expense | 1,819 | 2,728 | |||||||||
| Deferred income taxes, net | (37,733) | (16,716) | |||||||||
| Equity in earnings of unconsolidated entities | (173,754) | (161,364) | |||||||||
| Distributions from unconsolidated entities | 215,599 | 168,701 | |||||||||
| Loss on impairment of licenses | 47,679 | 136,234 | |||||||||
| (Gain) loss on asset disposals, net | 1,746 | 809 | |||||||||
| (Gain) loss on license sales and exchanges, net | (6,123) | 3,460 | |||||||||
| Other operating activities | 1,285 | 121 | |||||||||
| Changes in assets and liabilities from operations | |||||||||||
| Accounts receivable | (6,628) | 4,856 | |||||||||
| Accounts payable | (9,339) | (35,473) | |||||||||
| Customer deposits and deferred revenues | (65,025) | (352) | |||||||||
| Accrued taxes | (15,954) | (38,510) | |||||||||
| Other assets and liabilities | (100,661) | 8,857 | |||||||||
| Net cash provided by operating activities - continuing operations | 75,129 | 38,370 | |||||||||
| Net cash provided by operating activities - discontinued operations | 125,707 | 844,095 | |||||||||
| Net cash provided by operating activities | 200,836 | 882,465 | |||||||||
| Cash flows from investing activities | |||||||||||
| Cash paid for additions to property, plant and equipment | (27,200) | (18,466) | |||||||||
| Cash paid for licenses | (4,175) | (19,198) | |||||||||
| Cash received from divestitures | 5,439 | — | |||||||||
| Other investing activities | 1,301 | — | |||||||||
| Net cash used in investing activities - continuing operations | (24,635) | (37,664) | |||||||||
| Net cash provided by (used in) investing activities - discontinued operations | 2,462,399 | (518,572) | |||||||||
| Net cash provided by (used in) investing activities | 2,437,764 | (556,236) | |||||||||
| Cash flows from financing activities | |||||||||||
| Issuance of long-term debt | 325,000 | 40,000 | |||||||||
| Repayment of long-term debt | (875,250) | (248,000) | |||||||||
| Tax withholdings, net of cash receipts, for Array stock-based compensation awards | (63,446) | (11,246) | |||||||||
| Repurchase of Common Shares | (21,360) | (54,091) | |||||||||
| Dividends paid to Array shareholders | (1,986,719) | — | |||||||||
| Payment of debt issuance costs | (6,418) | — | |||||||||
| Distributions to noncontrolling interests | (27,612) | (4,716) | |||||||||
| Other financing activities | (8,000) | (2,316) | |||||||||
| Net cash used in financing activities - continuing operations | (2,663,805) | (280,369) | |||||||||
| Net cash used in financing activities - discontinued operations | (20,537) | (66,632) | |||||||||
| Net cash used in financing activities | (2,684,342) | (347,001) | |||||||||
| Net decrease in cash, cash equivalents and restricted cash | (45,742) | (20,772) | |||||||||
| Cash, cash equivalents and restricted cash | |||||||||||
| Beginning of period | 159,142 | 179,914 | |||||||||
| End of period | $ | 113,400 | $ | 159,142 | |||||||
7
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Balance Sheet Highlights | |||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| December 31, | 2025 | 2024 | |||||||||
| (Dollars in thousands) | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 113,400 | $ | 143,730 | |||||||
| Accounts receivable, net | 21,656 | 12,729 | |||||||||
| Prepaid expenses | 3,216 | 7,060 | |||||||||
| Current assets of discontinued operations | — | 1,163,032 | |||||||||
| Other current assets | 6,515 | 18,319 | |||||||||
| Total current assets | 144,787 | 1,344,870 | |||||||||
| Non-current assets held for sale | 1,591,675 | 12 | |||||||||
| Non-current assets of discontinued operations | — | 4,499,069 | |||||||||
| Licenses | 1,642,187 | 3,281,508 | |||||||||
| Investments in unconsolidated entities | 412,608 | 453,938 | |||||||||
| Property, plant and equipment, net | 388,999 | 384,021 | |||||||||
| Operating lease right-of-use assets | 472,995 | 465,274 | |||||||||
| Other assets and deferred charges | 24,837 | 20,289 | |||||||||
| Total assets | $ | 4,678,088 | $ | 10,448,981 | |||||||
8
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Balance Sheet Highlights | |||||||||||
| (Unaudited) | |||||||||||
| LIABILITIES AND EQUITY | |||||||||||
| December 31, | 2025 | 2024 | |||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| Current liabilities | |||||||||||
| Current portion of long-term debt | $ | 4,063 | $ | 22,000 | |||||||
| Accounts payable | 38,395 | 36,454 | |||||||||
| Customer deposits and deferred revenues | 85,945 | 1,716 | |||||||||
| Accrued taxes | 16,884 | 27,077 | |||||||||
| Accrued compensation | 4,322 | 89,476 | |||||||||
| Short-term operating lease liabilities | 15,294 | 16,133 | |||||||||
| Current liabilities of discontinued operations | 20,242 | 671,575 | |||||||||
| Other current liabilities | 14,843 | 19,340 | |||||||||
| Total current liabilities | 199,988 | 883,771 | |||||||||
| Non-current liabilities of discontinued operations | — | 2,310,660 | |||||||||
| Deferred liabilities and credits | |||||||||||
| Deferred income tax liability, net | 387,030 | 728,229 | |||||||||
| Long-term operating lease liabilities | 509,876 | 495,736 | |||||||||
| Other deferred liabilities and credits | 336,379 | 221,376 | |||||||||
| Long-term debt, net | 670,258 | 1,201,725 | |||||||||
Noncontrolling interests with redemption features | — | 15,831 | |||||||||
| Total equity | 2,574,557 | 4,591,653 | |||||||||
| Total liabilities and equity | $ | 4,678,088 | $ | 10,448,981 | |||||||
9
Array Digital Infrastructure, Inc.
EBITDA, Adjusted EBITDA, Adjusted OIBDA and AFCF Reconciliations
(Unaudited)
EBITDA, Adjusted EBITDA and Adjusted OIBDA
The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income (loss) from continuing operations and Income (loss) before income taxes.
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Net income (loss) from continuing operations (GAAP) | $ | 41,764 | $ | 11,832 | $ | 172,267 | $ | (80,464) | |||||||||||||||
| Add back or deduct: | |||||||||||||||||||||||
| Income tax expense (benefit) | 23,332 | (3,656) | (31,148) | (19,256) | |||||||||||||||||||
| Income (loss) before income taxes (GAAP) | 65,096 | 8,176 | 141,119 | (99,720) | |||||||||||||||||||
| Add back: | |||||||||||||||||||||||
| Interest expense | 11,989 | 3,203 | 28,222 | 12,405 | |||||||||||||||||||
| Depreciation, amortization and accretion | 12,402 | 12,156 | 48,262 | 47,212 | |||||||||||||||||||
| EBITDA (Non-GAAP) | 89,487 | 23,535 | 217,603 | (40,103) | |||||||||||||||||||
| Add back or deduct: | |||||||||||||||||||||||
| Expenses related to strategic alternatives review | 95 | 1,607 | 2,444 | 21,521 | |||||||||||||||||||
| Loss on impairment of licenses | — | — | 47,679 | 136,234 | |||||||||||||||||||
| (Gain) loss on asset disposals, net | 1,125 | 219 | 1,746 | 809 | |||||||||||||||||||
(Gain) loss on license sales and exchanges, net | — | (900) | (6,123) | 3,460 | |||||||||||||||||||
| Short-term imputed spectrum lease income | (38,619) | — | (69,033) | — | |||||||||||||||||||
| Adjusted EBITDA (Non-GAAP) | 52,088 | 24,461 | 194,316 | 121,921 | |||||||||||||||||||
| Deduct: | |||||||||||||||||||||||
| Equity in earnings of unconsolidated entities | 26,301 | 37,919 | 173,754 | 161,364 | |||||||||||||||||||
| Interest and dividend income | 3,649 | 2,579 | 18,917 | 11,656 | |||||||||||||||||||
| Other, net | (81) | — | 169 | — | |||||||||||||||||||
| Adjusted OIBDA (Non-GAAP) | $ | 22,219 | $ | (16,037) | $ | 1,476 | $ | (51,099) | |||||||||||||||
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. Array modified its AFCF metric for the three months ended December 31, 2025 to adjust for cash taxes paid in the quarter, which management believes best reflects cash generated from operations and investments. Under the modified presentation, the comparative calculation of AFCF for the three months ended September 30, 2025 would have been $63.4 million.
| Three Months Ended December 31, 2025 | |||||
| (Dollars in thousands) | |||||
| Net income from continuing operations (GAAP) | $ | 41,764 | |||
| Add back or deduct: | |||||
| Income tax expense | 23,332 | ||||
| Cash paid for income taxes | (191) | ||||
| Stock-based compensation expense | 259 | ||||
| Short-term imputed spectrum lease income | (38,619) | ||||
| Amortization of deferred debt charges | 946 | ||||
| Equity in earnings of unconsolidated entities | (26,301) | ||||
| Distributions from unconsolidated entities | 65,867 | ||||
| (Gain) loss on asset disposals, net | 1,125 | ||||
| Depreciation, amortization and accretion | 12,402 | ||||
| Expenses related to strategic alternatives review | 95 | ||||
| Straight line and other non-cash revenue adjustments | (5,190) | ||||
| Straight line expense adjustment | 1,398 | ||||
| Maintenance and other capital expenditures | (2,025) | ||||
| Adjusted Free Cash Flow from continuing operations (Non-GAAP) | $ | 74,862 | |||
11
FAQ
How did Array Digital Infrastructure (AD) perform financially in 2025?
Array delivered a strong 2025 turnaround, with total operating revenues from continuing operations rising to $163.0 million from $102.9 million. Net income attributable to shareholders from continuing operations improved to $169.7 million, or diluted EPS of $1.94, versus a loss in 2024.
What 2026 financial guidance did Array Digital Infrastructure (AD) provide?
For 2026, Array expects total operating revenues of $200–$215 million, Adjusted EBITDA of $200–$215 million, Adjusted OIBDA of $50–$65 million, and capital expenditures of $25–$35 million. These targets reflect management’s outlook for its tower-focused business following major divestitures.
What major transactions did Array Digital Infrastructure (AD) complete with T-Mobile and AT&T?
Array closed the sale of wireless operations and select spectrum assets to T-Mobile in August 2025 and sold 3.45GHz and 700MHz spectrum licenses to AT&T on January 13, 2026. These transactions supported special dividends and repositioned Array as a standalone tower company.
Are there additional spectrum deals pending for Array Digital Infrastructure (AD)?
Array has further agreements with T-Mobile for 700 MHz, AWS and a portion of 600 MHz spectrum with aggregate expected proceeds of $178 million, subject to customary conditions. A separate license sale to Verizon is expected to close in the second or third quarter of 2026, pending approvals.
What special dividends has Array Digital Infrastructure (AD) paid recently?
Array paid a $23 per share special dividend after closing the T-Mobile wireless operations sale in August 2025. It later issued a $10.25 special dividend on February 2, 2026 following the sale of 3.45GHz and 700MHz spectrum licenses to AT&T.
How did Array Digital Infrastructure’s (AD) tower portfolio change in 2025?
As of December 31, 2025, Array owned 4,450 towers with 4,572 colocations, resulting in a tower tenancy rate of 1.03. This reflects the company’s focus on expanding and utilizing its shared wireless communications infrastructure after divesting wireless operations.
What non-GAAP metrics does Array Digital Infrastructure (AD) emphasize?
Array highlights EBITDA, Adjusted EBITDA, Adjusted OIBDA and Adjusted Free Cash Flow as key non-GAAP measures. For 2025, Adjusted EBITDA from continuing operations was $194.3 million, and Adjusted OIBDA was $1.5 million, providing insight into operating performance excluding certain gains, losses and non-cash items.
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