Array Digital Infrastructure, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total operating revenues from continuing operations were $54.1 million for Q2 2026, compared to $28.5 million in Q2 2025, representing a 90% year-over-year increase.
• Site rental revenues grew 95% year-over-year to $53.2 million in Q2 2026.
• Net income attributable to Array shareholders from continuing operations was $333.8 million for Q2 2026, compared to $14.8 million in Q2 2025.
• Diluted earnings per share from continuing operations were $3.86 for Q2 2026, compared to $0.17 in Q2 2025.
• Adjusted EBITDA for the six months ended June 30, 2026, was $118.7 million, compared to $57.1 million in the same period of 2025.
• Adjusted OIBDA for the six months ended June 30, 2026, was $32.9 million, compared to a loss of $26.9 million in the same period of 2025.
• Cash paid for additions to property, plant, and equipment was $19.6 million for the six months ended June 30, 2026.
• Cash received from divestitures was $2.17 billion for the six months ended June 30, 2026.
• Net cash used in financing activities was $1.84 billion for the six months ended June 30, 2026, primarily driven by dividends paid to Array shareholders of $1.84 billion.
• Cash and cash equivalents increased to $416.4 million as of June 30, 2026, from $113.4 million as of December 31, 2025.
• Long-term debt, net, was $666.8 million as of June 30, 2026, compared to $670.3 million as of December 31, 2025.

Guidance and Future Outlook

• Updated 2026 total operating revenue guidance to a range of $205 million to $215 million, up from the previous range of $200 million to $215 million.
• Updated 2026 Adjusted EBITDA guidance to a range of $220 million to $235 million, up from the previous range of $200 million to $215 million.
• Updated 2026 Adjusted OIBDA guidance to a range of $60 million to $75 million, up from the previous range of $50 million to $65 million.
• Capital expenditures guidance for 2026 remains unchanged at $25 million to $35 million.
• Pending spectrum sales to T-Mobile involving approximately $30 million in 600 MHz and 700 MHz licenses are expected to close in 2026, subject to regulatory approval.

Business Segments and Product Lines

• Delivered consecutive quarter-over-quarter tower tenancy growth.
• Tower tenancy rate was 0.98 as of June 30, 2026, compared to 0.96 as of March 31, 2026.
• Closed on the sale of certain 700 MHz wireless spectrum licenses for $74.8 million on May 5, 2026.
• Closed on the sale of certain 600 MHz wireless spectrum licenses for $86.4 million on May 12, 2026.
• Closed on the sale of certain cellular and other spectrum licenses for $1 billion on June 1, 2026.
• Issued a special dividend of $11 per common share on June 25, 2026.
• Array owns 4,456 cell towers in 19 states as of June 30, 2026.

Market and Competitive Landscape

• Array continues to support T-Mobile's integration and monetize remaining spectrum assets.
• Telephone and Data Systems, Inc. owned approximately 81.9% of Array as of June 30, 2026.
• The company faces risks related to reliance on a small number of tenants for a substantial portion of revenue.

Risks and Challenges

• DISH Wireless filed for bankruptcy in June 2026; Array no longer recognizes revenue from DISH Wireless as of Q1 2026 following a letter claiming lease obligations were excused.
• Risks include the uncertainty of the TDS non-binding proposal to acquire all outstanding Array Common Shares not owned by TDS.
• Potential risks include changes in demand, price competition, technology advances, and the ability to protect land rights under towers.
• Risks also include the inability to predict income tax impacts on future results and potential adverse impacts on businesses if the TDS transaction is not completed.

Management Commentary and Tone

• Anthony Carlson, President and CEO, stated the organization remains "laser-focused on optimizing our tower operations" and noted "nice progress executing across our 2026 priorities."
• Management highlighted sequential tower tenancy growth and the continued monetization of remaining spectrum assets.

Other Key Points

• TDS delivered a non-binding proposal to acquire all outstanding Array Common Shares not owned by TDS on May 7, 2026.
• A special committee of independent and disinterested directors has been formed to evaluate the TDS proposal.
• The sale of wireless operations to T-Mobile closed on August 1, 2025, shifting Array's primary business to a standalone tower company.
• Adjusted Free Cash Flow from continuing operations for the six months ended June 30, 2026, was $6.6 million.
• The company does not provide guidance for income taxes due to the inability to reasonably predict their impact.