Array Digital (NYSE: AD) Q1 profit surges as spectrum deals close
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Array Digital Infrastructure, Inc. reported very strong first quarter 2026 results driven by major spectrum monetization while reaffirming its full‑year outlook. Total operating revenues from continuing operations were $52.0 million, up from $27.0 million a year earlier, as site rental revenues rose 92% to $51.0 million.
Net income attributable to shareholders from continuing operations jumped to $179.8 million, or $2.08 diluted earnings per share, compared with $4.7 million and $0.05 a year ago, largely reflecting a $156.6 million gain on the $1,018.0 million sale of certain 3.45 GHz and 700 MHz spectrum licenses closed on January 13, 2026.
Array reaffirmed its 2026 guidance, including 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. The company continued to execute additional spectrum transactions, closing a $74.8 million 700 MHz spectrum sale on May 5, 2026, and highlighted a pending $1,000.0 million spectrum sale to Verizon expected to close in Q2/Q3 2026. Telephone and Data Systems, Inc., which owned about 81.9% of Array as of March 31, 2026, submitted a non‑binding proposal to acquire the remaining Array common shares, and a special committee of independent directors is evaluating this proposal.
Positive
- Strong revenue and profitability growth from continuing operations – Q1 2026 total operating revenues from continuing operations were $52.0 million versus $27.0 million a year earlier, while net income from continuing operations attributable to shareholders rose to $179.8 million and diluted EPS to $2.08, reflecting both tower growth and spectrum gains.
- Significant spectrum monetization and cash generation – Array closed a $1,018.0 million sale of 3.45 GHz and 700 MHz spectrum with a $156.6 million gain, plus a $74.8 million 700 MHz sale to T‑Mobile, and highlighted a pending $1,000.0 million spectrum sale to Verizon expected to close in Q2/Q3 2026.
- Reaffirmed full‑year 2026 guidance with higher-quality earnings metrics – Management maintained 2026 estimates for 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, indicating confidence in the tower-focused business plan.
Negative
- None.
Insights
Array’s Q1 shows strong tower growth, large spectrum gains, and steady 2026 guidance.
Array Digital is transitioning into a focused tower company while monetizing spectrum. In Q1 2026, total operating revenues from continuing operations were $52.0 million, almost double the prior year, with site rental revenues up 92% to $51.0 million, showing early traction in tower tenancy.
Profitability was dominated by asset sales. Net income from continuing operations reached $180.0 million, helped by a $156.6 million gain on a $1,018.0 million spectrum sale. Adjusted EBITDA, which strips out these gains and other items, was $62.5 million versus $21.2 million a year earlier, and Adjusted OIBDA improved to $17.8 million from a loss.
For full‑year 2026, Array reaffirmed estimated total operating revenues of $200–$215 million, Adjusted EBITDA of $200–$215 million, and Adjusted OIBDA of $50–$65 million. Additional spectrum deals include a $1,000.0 million pending sale to Verizon expected to close in Q2/Q3 2026 and $178 million of transactions with T‑Mobile, of which $74.8 million closed on May 5, 2026. A non‑binding proposal from TDS to buy the minority stake introduces potential corporate‑structure change, with outcomes dependent on special committee review and future negotiations.
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, and exhibit attachments filed with this report.
Key Figures
Total operating revenues (continuing ops): $52.0 million
Site rental revenues: $51.0 million
Net income from continuing operations: $180.0 million
+5 more
8 metrics
Total operating revenues (continuing ops)
$52.0 million
Quarter ended March 31, 2026, vs $27.0 million in Q1 2025
Site rental revenues
$51.0 million
Q1 2026, 92% year-over-year growth
Net income from continuing operations
$180.0 million
Q1 2026 attributable to Array shareholders vs $4.7 million in Q1 2025
Diluted EPS from continuing operations
$2.08 per share
Quarter ended March 31, 2026, vs $0.05 in prior-year quarter
Spectrum sale proceeds (T‑Mobile January deal)
$1,018.0 million
Closed January 13, 2026; gain of $156.6 million recorded in Q1 2026
Pending Verizon spectrum sale
$1,000.0 million
Purchase price for AWS, Cellular and PCS licenses; expected close in Q2/Q3 2026
2026 Adjusted EBITDA guidance
$200–$215 million
Full-year 2026 estimate, unchanged as of May 8, 2026
Cash and cash equivalents
$253.6 million
Balance at March 31, 2026, up from $113.4 million at December 31, 2025
Key Terms
Adjusted EBITDA, Adjusted OIBDA, short-term imputed spectrum lease income, Adjusted Free Cash Flow, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA (Non-GAAP) 1 | $200-$215 | | $62 |"
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 1 (Non-GAAP) | $50-$65 | Unchanged"
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.
short-term imputed spectrum lease income financial
"Short-term imputed spectrum lease income | (75) | | | (34) |"
Adjusted Free Cash Flow financial
"Adjusted Free Cash Flow from continuing operations (Non-GAAP) | $ | 30,653 |"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
non-binding proposal regulatory
"TDS delivered to the Array Board of Directors a letter setting forth a non-binding proposal"
A non-binding proposal is an offer or plan presented by one party that outlines terms they would like to pursue but does not create a legally enforceable obligation. Think of it like a detailed handshake or a draft invitation to negotiate: it signals intent and frames possible outcomes, but either side can walk away or change terms without legal penalty. Investors watch these because they can move a stock’s price by suggesting a possible deal, yet they carry higher uncertainty than formal agreements.
Master Lease Agreement financial
"its obligations under its Master Lease Agreement with Array were excused"
A master lease agreement is an umbrella contract that sets the rules for a group of related leases between an owner and a renter, so new individual leases can be added quickly without renegotiating basic terms. For investors it matters because it fixes payment schedules, responsibilities for maintenance and default remedies across multiple assets, which directly affects a company’s cash flow predictability, liability exposure and the value of leased properties or equipment—like a standard template that speeds deals but locks in terms.
Earnings Snapshot
Total operating revenues (continuing ops): $52.0 million · Guidance included
Q1 2026
Total operating revenues (continuing ops)
$52.0 million
+93% vs Q1 2025
Net income from continuing operations attributable to shareholders
$179.8 million
N/M vs $4.7 million in Q1 2025
Diluted EPS from continuing operations
$2.08
N/M vs $0.05 in Q1 2025
Adjusted EBITDA
$62.5 million
vs $21.2 million in Q1 2025
Adjusted OIBDA
$17.8 million
vs $(17.4) million in Q1 2025
Guidance
For full-year 2026, Array estimates 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; all ranges are unchanged.
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): May 8, 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 May 8, 2026, Array Digital Infrastructure, Inc. issued a news release announcing its results of operations for the period ended March 31, 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 May 8, 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: | May 8, 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 May 8, 2026, at 9:00 a.m. CT. Listen to the call live via the Events & Presentations page of investors.arrayinc.com.
Array reports first quarter 2026 results
Array reaffirms 2026 guidance
CHICAGO (May 8, 2026) — Array Digital Infrastructure, Inc. (NYSE:AD) reported first quarter operating results.
“Array is executing on its 2026 priorities,” said Anthony Carlson, President and CEO. “Since standing-up Array just eight months ago, we remain laser-focused on optimizing our tower operations, including securing new colocation applications and delivering steady tower tenancy growth. And we are continuing to close our pending spectrum transactions and support T-Mobile’s integration.”
Highlights*
•Optimizing tower operations
◦Site rental revenues grew 92% year over year
◦Excluding the impact of DISH, continued to grow tower tenancy and secure healthy application volume
•Continuing to close pending sales of wireless spectrum
◦Closed on sale of certain 700 MHz wireless spectrum licenses for total proceeds of $74.8 million on May 5, 2026
* Comparisons are 1Q’25 to 1Q’26 unless otherwise noted.
Array reported total operating revenues from continuing operations of $52.0 million for the first quarter of 2026, versus $27.0 million for the same period one year ago. Net income attributable to Array shareholders and diluted earnings per share from continuing operations were $179.8 million and $2.08, respectively, for the first quarter of 2026 compared to $4.7 million and $0.05, respectively, in the same period one year ago.
On January 13, 2026, Array closed on the sale of certain 3.45 GHz and 700 MHz wireless spectrum licenses for $1,018.0 million and recorded a book gain of $156.6 million ($117.5 million net of tax expense) during the first quarter of 2026.
Pending transactions
Subsequent to the August 1, 2025 close of the sale of wireless operations, Array has reached additional agreements with T-Mobile for the sale of 700 MHz spectrum licenses, AWS and a portion of the 600 MHz put/call totaling $178 million in aggregate expected proceeds, subject to closing conditions and regulatory approvals. On May 5, 2026, Array closed on the sale of certain 700MHz wireless spectrum licenses related to this agreement for total proceeds of $74.8 million.
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 for a purchase price of $1,000.0 million, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. We expect this transaction to close in Q2/Q3 2026.
DISH Wireless
In 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. DISH Wireless has subsequently failed to make certain payments due to Array under their contractual commitment. Array believes that DISH Wireless' claim that its obligations under its Agreement with Array are excused is without merit.
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.
1
2026 Estimated Results
Array’s current estimates of full-year 2026 results are shown below. Such estimates represent management’s view as of May 8, 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 | $200-$215 | Unchanged | ||||||
Adjusted OIBDA1 (Non-GAAP) | $50-$65 | Unchanged | ||||||
Adjusted EBITDA1 (Non-GAAP) | $200-$215 | 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 | Three Months Ended March 31, 2026 | Year Ended December 31, 2025 | |||||||||||||||
| (Dollars in millions) | |||||||||||||||||
| Net income from continuing operations (GAAP) | N/A | $180 | $172 | ||||||||||||||
| Add back: | |||||||||||||||||
| Income tax expense (benefit) | N/A | 52 | (31) | ||||||||||||||
| Income before income taxes (GAAP) | $770-$785 | $232 | $141 | ||||||||||||||
| Add back or deduct: | |||||||||||||||||
| Interest expense | 45 | 7 | 28 | ||||||||||||||
| Depreciation, amortization and accretion expense | 50 | 13 | 48 | ||||||||||||||
EBITDA (Non-GAAP)1 | $865-$880 | $252 | $218 | ||||||||||||||
| Add back or deduct: | |||||||||||||||||
| Expenses related to strategic alternatives review | — | — | 2 | ||||||||||||||
| Loss on impairment of licenses | — | — | 48 | ||||||||||||||
| (Gain) loss on asset disposals, net | — | 1 | 2 | ||||||||||||||
| (Gain) loss on license sales and exchanges, net | (590) | (157) | (6) | ||||||||||||||
| Short-term imputed spectrum lease income | (75) | (34) | (69) | ||||||||||||||
Adjusted EBITDA (Non-GAAP)1 | $200-$215 | $62 | $194 | ||||||||||||||
| Deduct: | |||||||||||||||||
| Equity in earnings of unconsolidated entities | 140 | 40 | 174 | ||||||||||||||
| Interest and dividend income | 10 | 4 | 19 | ||||||||||||||
Adjusted OIBDA (Non-GAAP)1 | $50-$65 | $18 | $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.
2
Conference Call Information
Array will hold a conference call on May 8, 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/890846584
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 4,452 cell towers in 19 states and enables the deployment of 5G and other wireless technologies throughout the country. As of March 31, 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 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 and the previously announced spectrum license sale to Verizon 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 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 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 | 3/31/2026 | 12/31/2025 | 9/30/2025 | ||||||||||||||
| Capital expenditures from continuing operations (thousands) | $ | 8,645 | 12,933 | 7,927 | |||||||||||||
| Owned towers | 4,452 | 4,450 | 4,449 | ||||||||||||||
Number of colocations1 | 4,290 | 4,572 | 4,517 | ||||||||||||||
Tower tenancy rate2 | 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 due to the low probability of collection on outstanding amounts.
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 collection on outstanding amounts. Normalized to exclude DISH, tenancy ratios would have been 0.95 and 0.94, respectively in prior periods.
4
| Array Digital Infrastructure, Inc. | |||||||||||||||||
| Consolidated Statement of Operations Highlights | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
| Operating revenues | |||||||||||||||||
| Site rental | $ | 51,024 | $ | 26,595 | 92 | % | |||||||||||
| Services | 988 | 389 | N/M | ||||||||||||||
| Total operating revenues | 52,012 | 26,984 | 93 | % | |||||||||||||
| Operating expenses | |||||||||||||||||
| Cost of operations (excluding Depreciation and accretion reported below) | 21,609 | 16,290 | 33 | % | |||||||||||||
| Selling, general and administrative | 12,745 | 29,202 | (56) | % | |||||||||||||
| Depreciation and accretion | 12,604 | 11,993 | 5 | % | |||||||||||||
| (Gain) loss on asset disposals, net | 904 | 226 | N/M | ||||||||||||||
| (Gain) loss on license sales and exchanges, net | (156,635) | (1,100) | N/M | ||||||||||||||
| Total operating expenses | (108,773) | 56,611 | N/M | ||||||||||||||
| Operating income (loss) | 160,785 | (29,627) | N/M | ||||||||||||||
| Other income (expense) | |||||||||||||||||
| Equity in earnings of unconsolidated entities | 40,408 | 35,927 | 12 | % | |||||||||||||
| Interest and dividend income | 4,223 | 2,658 | 59 | % | |||||||||||||
| Interest expense | (7,180) | (3,667) | (96) | % | |||||||||||||
| Short-term imputed spectrum lease income | 34,200 | — | N/M | ||||||||||||||
| Other, net | (14) | — | N/M | ||||||||||||||
| Total other income | 71,637 | 34,918 | N/M | ||||||||||||||
| Income before income taxes | 232,422 | 5,291 | N/M | ||||||||||||||
| Income tax expense (benefit) | 52,398 | (192) | N/M | ||||||||||||||
| Net income from continuing operations | 180,024 | 5,483 | N/M | ||||||||||||||
| Less: Net income from continuing operations attributable to noncontrolling interests, net of tax | 193 | 799 | (76) | % | |||||||||||||
| Net income from continuing operations attributable to Array shareholders | 179,831 | 4,684 | N/M | ||||||||||||||
| Net income (loss) from discontinued operations | (2,036) | 14,202 | N/M | ||||||||||||||
| Less: Net income from discontinued operations attributable to noncontrolling interests, net of tax | — | 639 | N/M | ||||||||||||||
| Net income (loss) from discontinued operations attributable to Array shareholders | (2,036) | 13,563 | N/M | ||||||||||||||
| Net income | 177,988 | 19,685 | N/M | ||||||||||||||
| Less: Net income attributable to noncontrolling interests, net of tax | 193 | 1,438 | (87) | % | |||||||||||||
| Net income attributable to Array shareholders | $ | 177,795 | $ | 18,247 | N/M | ||||||||||||
5
| Array Digital Infrastructure, Inc. | |||||||||||||||||
| Consolidated Statement of Operations Highlights | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | 2026 vs. 2025 | |||||||||||||||
| (Dollars and shares in thousands, except per share amounts) | |||||||||||||||||
| Basic weighted average shares outstanding | 86,416 | 85,137 | 2 | % | |||||||||||||
| Basic earnings per share from continuing operations attributable to Array shareholders | $ | 2.08 | $ | 0.05 | N/M | ||||||||||||
| Basic earnings (loss) per share from discontinued operations attributable to Array shareholders | $ | (0.02) | $ | 0.16 | N/M | ||||||||||||
| Basic earnings per share attributable to Array shareholders | $ | 2.06 | $ | 0.21 | N/M | ||||||||||||
| Diluted weighted average shares outstanding | 86,488 | 88,166 | (2) | % | |||||||||||||
| Diluted earnings per share from continuing operations attributable to Array shareholders | $ | 2.08 | $ | 0.05 | N/M | ||||||||||||
| Diluted earnings (loss) per share from discontinued operations attributable to Array shareholders | $ | (0.02) | $ | 0.16 | N/M | ||||||||||||
| Diluted earnings per share attributable to Array shareholders | $ | 2.06 | $ | 0.21 | N/M | ||||||||||||
N/M - Percentage change not meaningful
6
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Statement of Cash Flows | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Dollars in thousands) | |||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 177,988 | $ | 19,685 | |||||||
| Net income (loss) from discontinued operations | (2,036) | 14,202 | |||||||||
| Net income from continuing operations | 180,024 | 5,483 | |||||||||
| Add (deduct) adjustments to reconcile net income to net cash flows from operating activities | |||||||||||
| Depreciation and accretion | 12,604 | 11,993 | |||||||||
| Bad debts expense | (264) | 182 | |||||||||
| Stock-based compensation expense | 227 | 1,036 | |||||||||
| Deferred income taxes, net | (62,256) | 835 | |||||||||
| Equity in earnings of unconsolidated entities | (40,408) | (35,927) | |||||||||
| Distributions from unconsolidated entities | 18,373 | 11,254 | |||||||||
| (Gain) loss on asset disposals, net | 904 | 226 | |||||||||
| (Gain) loss on license sales and exchanges, net | (156,635) | (1,100) | |||||||||
| Other operating activities | (111) | 32 | |||||||||
| Changes in assets and liabilities from operations | |||||||||||
| Accounts receivable | 9,512 | (12,408) | |||||||||
| Accounts payable | (7,329) | 1,248 | |||||||||
| Customer deposits and deferred revenues | (33,349) | (93) | |||||||||
| Accrued taxes | 112,171 | 1,000 | |||||||||
| Accrued interest | 756 | 891 | |||||||||
| Other assets and liabilities | (9,741) | (55,869) | |||||||||
| Net cash provided by (used in) operating activities - continuing operations | 24,478 | (71,217) | |||||||||
| Net cash provided by (used in) operating activities - discontinued operations | (652) | 230,490 | |||||||||
| Net cash provided by operating activities | 23,826 | 159,273 | |||||||||
| Cash flows from investing activities | |||||||||||
| Cash paid for additions to property, plant and equipment | (13,822) | (7,513) | |||||||||
| Cash paid for licenses | — | (2,072) | |||||||||
| Cash received from divestitures | 1,018,044 | — | |||||||||
| Net cash provided by (used in) investing activities - continuing operations | 1,004,222 | (9,585) | |||||||||
| Net cash used in investing activities - discontinued operations | — | (64,337) | |||||||||
| Net cash provided by (used in) investing activities | 1,004,222 | (73,922) | |||||||||
| Cash flows from financing activities | |||||||||||
| Repayment of long-term debt | — | (5,000) | |||||||||
| Tax withholdings, net of cash receipts, for stock-based compensation awards | (1,374) | (6,579) | |||||||||
| Repurchase of Common Shares | — | (21,360) | |||||||||
| Dividends paid to Array shareholders | (885,472) | — | |||||||||
| Distributions to noncontrolling interests | (964) | (1,639) | |||||||||
| Other financing activities | — | (589) | |||||||||
| Net cash used in financing activities - continuing operations | (887,810) | (35,167) | |||||||||
| Net cash used in financing activities - discontinued operations | — | (8,826) | |||||||||
| Net cash used in financing activities | (887,810) | (43,993) | |||||||||
| Net increase in cash, cash equivalents and restricted cash | 140,238 | 41,358 | |||||||||
| Cash, cash equivalents and restricted cash | |||||||||||
| Beginning of period | 113,400 | 159,142 | |||||||||
| End of period | $ | 253,638 | $ | 200,500 | |||||||
7
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Balance Sheet Highlights | |||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Dollars in thousands) | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 253,638 | $ | 113,400 | |||||||
| Accounts receivable, net | 13,339 | 21,656 | |||||||||
| Prepaid expenses | 3,273 | 3,216 | |||||||||
| Other current assets | 3,813 | 6,515 | |||||||||
| Total current assets | 274,063 | 144,787 | |||||||||
| Non-current assets held for sale | 731,678 | 1,591,675 | |||||||||
| Licenses | 1,642,039 | 1,642,187 | |||||||||
| Investments in unconsolidated entities | 435,061 | 412,608 | |||||||||
| Property, plant and equipment, net | 386,727 | 388,999 | |||||||||
| Operating lease right-of-use assets | 473,383 | 472,995 | |||||||||
| Other assets and deferred charges | 21,736 | 24,837 | |||||||||
| Total assets | $ | 3,964,687 | $ | 4,678,088 | |||||||
8
| Array Digital Infrastructure, Inc. | |||||||||||
| Consolidated Balance Sheet Highlights | |||||||||||
| (Unaudited) | |||||||||||
| LIABILITIES AND EQUITY | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| Current liabilities | |||||||||||
| Current portion of long-term debt | $ | 6,094 | $ | 4,063 | |||||||
| Accounts payable | 32,495 | 38,395 | |||||||||
| Customer deposits and deferred revenues | 45,213 | 85,945 | |||||||||
| Accrued taxes | 131,650 | 16,884 | |||||||||
| Accrued compensation | 558 | 4,322 | |||||||||
| Short-term operating lease liabilities | 15,640 | 15,294 | |||||||||
| Current liabilities of discontinued operations | 20,242 | 20,242 | |||||||||
| Other current liabilities | 13,708 | 14,843 | |||||||||
| Total current liabilities | 265,600 | 199,988 | |||||||||
| Deferred liabilities and credits | |||||||||||
| Deferred income tax liability, net | 320,533 | 387,030 | |||||||||
| Long-term operating lease liabilities | 511,639 | 509,876 | |||||||||
| Other deferred liabilities and credits | 333,360 | 336,379 | |||||||||
| Long-term debt, net | 668,499 | 670,258 | |||||||||
| Total equity | 1,865,056 | 2,574,557 | |||||||||
| Total liabilities and equity | $ | 3,964,687 | $ | 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Dollars in thousands) | |||||||||||
| Net income from continuing operations (GAAP) | $ | 180,024 | $ | 5,483 | |||||||
| Add back or deduct: | |||||||||||
| Income tax expense (benefit) | 52,398 | (192) | |||||||||
| Income before income taxes (GAAP) | 232,422 | 5,291 | |||||||||
| Add back: | |||||||||||
| Interest expense | 7,180 | 3,667 | |||||||||
| Depreciation and accretion expense | 12,604 | 11,993 | |||||||||
| EBITDA (Non-GAAP) | 252,206 | 20,951 | |||||||||
| Add back or deduct: | |||||||||||
| Expenses related to strategic alternatives review | 187 | 1,145 | |||||||||
| (Gain) loss on asset disposals, net | 904 | 226 | |||||||||
| (Gain) loss on license sales and exchanges, net | (156,635) | (1,100) | |||||||||
| Short-term imputed spectrum lease income | (34,200) | — | |||||||||
| Adjusted EBITDA (Non-GAAP) | 62,462 | 21,222 | |||||||||
| Deduct: | |||||||||||
| Equity in earnings of unconsolidated entities | 40,408 | 35,927 | |||||||||
| Interest and dividend income | 4,223 | 2,658 | |||||||||
| Other, net | (14) | — | |||||||||
| Adjusted OIBDA (Non-GAAP) | $ | 17,845 | $ | (17,363) | |||||||
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.
| Three Months Ended March 31, 2026 | |||||
| (Dollars in thousands) | |||||
| Net income from continuing operations (GAAP) | $ | 180,024 | |||
| Add back or deduct: | |||||
| Income tax expense | 52,398 | ||||
| Cash paid for income taxes | (220) | ||||
| Stock-based compensation expense | 227 | ||||
| Short-term imputed spectrum lease income | (34,200) | ||||
| Amortization of deferred debt charges | 319 | ||||
| Equity in earnings of unconsolidated entities | (40,408) | ||||
| Distributions from unconsolidated entities | 18,373 | ||||
| (Gain) loss on license sales and exchanges, net | (156,635) | ||||
| (Gain) loss on asset disposals, net | 904 | ||||
| Depreciation and accretion | 12,604 | ||||
| Expenses related to strategic alternatives review | 187 | ||||
| Straight line and other non-cash revenue adjustments | (2,874) | ||||
| Straight line expense adjustment | 1,342 | ||||
| Maintenance and other capital expenditures | (1,388) | ||||
| Adjusted Free Cash Flow from continuing operations (Non-GAAP) | $ | 30,653 | |||
11
FAQ
How did Array Digital Infrastructure, Inc. (AD) perform in Q1 2026?
Array reported strong Q1 2026 results, with total operating revenues from continuing operations of $52.0 million versus $27.0 million a year earlier. Net income from continuing operations attributable to shareholders rose to $179.8 million, or $2.08 diluted EPS, helped by significant spectrum-sale gains.
What drove Array Digital’s (AD) profit increase in the first quarter of 2026?
Profit growth was driven mainly by spectrum monetization. On January 13, 2026, Array closed the sale of certain 3.45 GHz and 700 MHz spectrum licenses for $1,018.0 million, recording a $156.6 million gain. Core site rental revenues also increased 92% year over year to $51.0 million.
What is Array Digital’s (AD) 2026 financial guidance after Q1 2026?
Array reaffirmed its 2026 outlook, guiding to total operating revenues of $200–$215 million, Adjusted EBITDA of $200–$215 million, and Adjusted OIBDA of $50–$65 million. Estimated capital expenditures remain $25–$35 million, reflecting planned investment in tower infrastructure while the company monetizes spectrum assets.
What major spectrum transactions has Array Digital (AD) announced?
Array closed a $1,018.0 million sale of 3.45 GHz and 700 MHz spectrum licenses in January 2026 and a $74.8 million 700 MHz spectrum sale on May 5, 2026. It also has a pending $1,000.0 million sale of AWS, Cellular and PCS licenses to Verizon, expected to close in Q2/Q3 2026.
How is Array Digital’s tower business performing after the wireless sale?
Array reported site rental revenues of $51.0 million in Q1 2026, up 92% year over year, indicating solid growth in tower tenancy. The company owned 4,452 towers across 19 states as of March 31, 2026, supporting 5G and other wireless deployments for its tenants.