Highlights

  • Second quarter 2026 revenue rose 90% to $54.1 million, and net income attributable to shareholders reached $358.7 million.
  • Array closed spectrum sales to AT&T, Verizon and T-Mobile in 2026 and paid special dividends of $10.25 and $11.00.
  • TDS, which owns 81.9%, submitted a non-binding proposal on May 7, 2026 to buy the remaining common shares.
  • Array no longer recognizes DISH Wireless revenue after missed payments, and DISH entities filed for bankruptcy in June 2026.

Array Digital Infrastructure (NYSE:AD) shares were trading near their 52-week low at USD 32.07 on October 21, 2026, down 3.29%. The tower company reported second quarter 2026 results in a Form 10-Q filed on August 7, 2026, covering spectrum license sales, two special dividends and a non-binding proposal from its parent, TDS.

Based in Chicago, Illinois, Array is a Delaware corporation that says it connects America through digital infrastructure by leasing tower space to tenants and providing ancillary services. As of June 30, 2026, it owned 4,456 towers in 19 states, held noncontrolling interests in wireless operating companies and owned spectrum licenses. It is an 81.9%-owned subsidiary of Telephone and Data Systems, Inc. (TDS). Array sold its wireless operations and select spectrum assets to T-Mobile on August 1, 2025, and presents them as discontinued operations. Its fiscal year ends December 31.

Tower Revenue Up 90% and Spectrum Sale Gains

Total operating revenues for the quarter ended June 30, 2026 were $54.1 million, compared with $28.5 million a year earlier. Site rental revenue rose 95% to $53.2 million, mainly because of a master lease agreement with T-Mobile covering at least 2,015 additional Array towers for a minimum of 15 years, plus interim leases on about 1,800 towers. Interim lease revenue, $6.7 million in the quarter, is expected to decline as T-Mobile can cancel those leases tower by tower during a period ending January 2028.

Operating income was $399.3 million, compared with a $18.2 million loss, because of a $409.8 million net gain on license sales. Selling, general and administrative expense rose 18% to $22.9 million, including $7.4 million of third-party costs for the strategic alternatives review. Equity in earnings of unconsolidated entities fell 17% to $34.7 million, and interest expense rose to $10.9 million from $3.7 million. Net income attributable to Array shareholders was $358.7 million, and diluted EPS was $4.15 versus $0.36; continuing operations contributed $3.86 per share. Adjusted EBITDA from continuing operations, a non-GAAP measure, was $56.2 million versus $35.9 million.

Tower colocations numbered 4,362, a tenancy rate of 0.98, excluding DISH Wireless given the low probability it fulfills its lease commitments. DISH claimed in September 2025 that its obligations were excused and missed certain payments, so Array stopped recognizing its revenue in 2026. DISH contributed $6.5 million in 2025, and Array is monitoring its bankruptcy proceedings.

Spectrum Sales, Dividends and the TDS Proposal

In 2026, Array closed the sale of 3.45 GHz and 700 MHz licenses to AT&T for $1.02 billion on January 13 and of AWS, Cellular and PCS licenses to Verizon for $1.0 billion on June 1, plus T-Mobile transactions in May. Some T-Mobile license sales still need regulatory approval. Retained spectrum, mainly C-Band, has a book value of $1,584.7 million, and Array seeks to monetize it opportunistically.

It declared special dividends of $10.25 per share, totaling $885.5 million, in January and $11.00 per share, totaling $951.3 million, in June. The payments moved Array to an accumulated deficit at June 30. It expects a cash income tax liability of about $250.0 million on the second quarter sales, mostly payable in the third quarter.

On May 7, 2026, TDS delivered a non-binding proposal to buy all Array common shares it does not own. A special committee of independent directors is evaluating it.

Liquidity, Legal Matters and Outlook

Cash and cash equivalents were $416.4 million, up from $113.4 million at year-end. Borrowings totaled $325.0 million under a CoBank term loan due June 2030, and a $100.0 million revolver was undrawn apart from letters of credit. Array believed it complied with its covenants.

Array disclosed private False Claims Act litigation tied to spectrum auction bid credits, which it says lacks merit, and a stockholder derivative suit with a motion to dismiss pending. It cannot yet determine whether the outcomes would be material.

Array expects 2026 capital expenditures of $25.0 million to $35.0 million. The strategic alternatives review is ongoing, and management expects costs of winding down legacy wireless operations to persist at a declining rate. The filing gives no revenue or earnings guidance.