Array reaffirms 2026 guidance
CHICAGO, May 8, 2026 /PRNewswire/ --
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 Digital Infrastructure, Inc. $(AD)$ 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.
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 OIBDA(1) (Non-GAAP) $50-$65 Unchanged
Adjusted EBITDA(1) (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
----------------------------------
Three Months Year Ended
2026 Estimated Ended March 31, December 31,
Results 2026 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.
1 EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income from
continuing operations adjusted for the items set forth in the
reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not
measures of financial performance under Generally Accepted Accounting
Principles in the United States (GAAP) and should not be considered as
alternatives to Net income or Cash flows from operating activities, as
indicators of cash flows or as measures of liquidity. Array does not intend
to imply that any such items set forth in the reconciliation above are
infrequent or unusual; such items may occur in the future. Management uses
Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and
therefore reconciliations to Net income are deemed appropriate. Management
believes Adjusted EBITDA and Adjusted OIBDA are useful measures of Array's
operating results before significant recurring non-cash charges,
nonrecurring expenses, gains and losses, and other items as presented above
as they provide additional relevant and useful information to investors and
other users of Array's financial data in evaluating the effectiveness of
its operations and underlying business trends in a manner that is
consistent with management's evaluation of business performance. Adjusted
EBITDA shows adjusted earnings before interest, taxes, depreciation,
amortization and accretion, gains and losses while Adjusted OIBDA reduces
this measure further to exclude Equity in earnings of unconsolidated
entities and Interest and dividend income in order to more effectively show
the performance of operating activities excluding investment activities.
Conference Call 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.
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.
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 colocations(1) 4,290 4,572 4,517
Tower tenancy rate(2) 0.96 1.03 1.02
1 Represents 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.
2 Calculated 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.
Array Digital Infrastructure, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
Three Months Ended
March 31,
--------------------------------
2026
2026 2025 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
========== =========
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
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
=============== ================
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
======================= =======================
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
======================== ========================
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)
============= ==============
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
==========================
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SOURCE Array Digital Infrastructure, Inc.
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