Executive Summary

Q3 2025 marked Array’s first quarter operating as a standalone tower company: total operating revenues rose 83% year over year to $47.1M, and diluted EPS from continuing operations was $1.25, driven by T‑Mobile MLA ramp, special tax benefits, and equity income from unconsolidated entities .
Site rental revenue increased 79% YoY to $45.8M as the new T‑Mobile MLA (effective Aug 1) and stronger non‑T‑Mobile leasing drove growth; Adjusted EBITDA was $85.1M and Adjusted Free Cash Flow was $45.9M (non‑GAAP) .
Management highlighted near‑term SG&A elevation (wind‑down, spectrum management, structural costs) but expects improvement through 1H26; 40% of Q3 SG&A related to non‑tower items, with a plan to rationalize costs and ground rents over time .
Capital returns outlook is a key catalyst: upon closing the $1.0B AT&T spectrum sale (expected Q4’25/1H’26), Array’s board is anticipated to declare an approx. $10 per share special dividend; additional $1.0B Verizon and $178M T‑Mobile spectrum transactions remain pending regulatory approval (timelines impacted by the federal government shutdown) .

What Went Well and What Went Wrong

What Went Well
- MLA launch drove strong leasing: “Site rental revenue, excluding non‑cash amortization, grew 68% YoY,” reflecting T‑Mobile MLA plus growth from other tenants; insourcing sales boosted non‑T‑Mobile colocation applications +125% YTD through Sept 30 .
- Tower footprint and KPIs stable: 4,449 owned towers, 4,517 colocations, tenancy rate 1.02; Adjusted EBITDA of $85.1M and AFCF of $45.9M (non‑GAAP) underscore cash generation as a pure‑play tower entity .
- Equity income tailwinds: $34M equity income from Iowa partnership sales to T‑Mobile plus higher interest income on T‑Mobile proceeds bolstered earnings .
What Went Wrong
- Elevated non‑operating items: $47.7M impairment of high‑band spectrum due to lower fair values; short‑term imputed spectrum lease income ($30.4M) and tax effects complicate comparability .
- SG&A still inflated: ~40% of SG&A tied to wireless wind‑down, spectrum management, and strategic review, with structural cost work ahead; management expects wind‑down costs to persist through 1H26 before declining .
- DISH MLA dispute: DISH claims its obligations are excused; Array deems the claim without merit; 2025 DISH site rental revenue expected at ~$7M, with similar commitments through 2031, creating contract enforcement/collection risk .

Financial Results

Overall results vs prior year and estimates

Metric	Q3 2024	Q3 2025	YoY Δ	Vs. Prior Q	Vs. S&P Global Consensus
Total Operating Revenues ($M)	$25.739	$47.119	+83%	N/A	Unavailable (S&P Global consensus not available)
Site Rental Revenues ($M)	$25.669	$45.838	+79%	N/A	Unavailable
Services Revenues ($M)	$0.070	$1.281	N/M	N/A	Unavailable
Net Income – Continuing Ops ($M)	$(95.701)	$109.920	N/M	N/A	Unavailable
Diluted EPS – Continuing Ops ($)	$(1.12)	$1.25	N/M	N/A	Unavailable
Adjusted EBITDA (Non‑GAAP, $M)	$34.214	$85.081	N/M	N/A	Unavailable
Adjusted OIBDA (Non‑GAAP, $M)	$(12.447)	$6.107	N/M	N/A	Unavailable
Short‑term Imputed Spectrum Lease Income ($M)	—	$30.413	N/M	N/A	Unavailable

Notes:

Prior quarter comparisons are not presented due to the August 1, 2025 disposal of the wireless operations and the structural change to a standalone tower company; sequential comparability is not meaningful .
Consensus estimates via S&P Global could not be retrieved for AD this quarter (mapping unavailable).

Segment/Revenue composition

Revenue Detail ($M)	Q3 2024	Q3 2025	YoY Δ
Site Rental	$25.669	$45.838	+79%
Services	$0.070	$1.281	N/M
Total Operating Revenues	$25.739	$47.119	+83%

KPIs and cash metrics

KPI / Cash Metric	Q3 2025	Prior Reference
Owned Towers	4,449	—
Number of Colocations	4,517	—
Tower Tenancy Rate	1.02	—
Capex (Continuing Ops, $k)	$7,927	—
Adjusted Free Cash Flow (Non‑GAAP, $k)	$45,925	—

Cross-references and drivers

MLA impact: Year‑over‑year site rental growth reflects MLA plus broader leasing; excluding interim‑site revenue, site rental grew 46% YoY; insourcing sales increased non‑T‑Mobile application volume +125% YTD .
Tax and equity income tailwinds: A discrete tax benefit (valuation allowance reductions) and equity income from Iowa entities strengthened continuing EPS .
Non‑cash/one‑time items: $47.7M high‑band spectrum impairment; $30.4M short‑term imputed spectrum lease income recognized over one year .

Guidance Changes

Metric/Item	Period	Previous Guidance	Current Update	Change
Special Dividend (upon AT&T close)	After AT&T $1.0B spectrum sale closes	None	Board anticipated to declare approx. $10/share special dividend following AT&T closing (timing expected Q4’25 or 1H’26)	New
AT&T Spectrum Sale Proceeds	Q4’25 – 1H’26	Previously signed	$1,018M proceeds expected, timing subject to regulatory approval and shutdown impacts	Timing reiterated/at risk
Verizon Spectrum Sale Proceeds	Target Q3’26	Previously signed	$1,000M proceeds expected, contingent on termination of T‑Mobile short‑term spectrum lease and regulatory approvals	Maintained
T‑Mobile Additional Spectrum (700 MHz and 600 MHz put/call)	2026	Newly signed Aug/Oct 2025	Aggregate ~$178M expected proceeds, subject to approvals	New
T‑Mobile MLA Commitments	Through Jan 2028 site selection; 30‑month interim	N/A	2,015 committed sites (15‑year); ~1,800 interim sites up to 30 months; cancellations possible per tower on short notice	Operating framework
DISH MLA Revenue Outlook	2025–2035	N/A	~ $7M 2025 expected; similar commitments 2026–2031, declining 2032–2035; Array will enforce MLA after DISH dispute	New risk disclosure

Note: Management emphasized regulatory timing uncertainty (ongoing federal government shutdown) could affect closing timelines for spectrum transactions .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2, Q‑1)	Current Period (Q3 2025)	Trend
T‑Mobile MLA execution	Not comparable (pre‑divestiture)	MLA began Aug 1; strong integration; 68% YoY site rental growth excl. non‑cash amortization; 46% YoY excluding interim sites	Improving
Spectrum monetization	Not comparable	Agreements signed/expanded: AT&T $1.018B, Verizon $1.0B, T‑Mobile ~$178M; 70% of spectrum monetized (closed/signed); timing subject to approvals/shutdown	Advancing
SG&A/wind‑down costs	Not comparable	~40% of SG&A tied to wind‑down/spectrum/strategic review; high through 1H26 then declining; structural IT and overhead rationalization underway	Transitory headwind
Naked towers plan	Not comparable	Expect 800–1,800 tenantless towers by final T‑Mobile selections (by Jan 2028); lease‑up focus, ground rent rationalization, potential decommissioning	In progress
DISH MLA dispute	Not comparable	DISH claims relief from obligations; Array disputes; ~$7M 2025 revenue expected; obligations similar through 2031	Legal risk
Margin trajectory	Not comparable	Management outlined drivers to raise margins: grow colo revenue, reduce SG&A, ground rent rationalization, potential decommissions; analyst referenced 45–50% long‑term margin frame	Positive path

Management Commentary

“We are off to a great start as an independent tower company.” — Doug Chambers, Interim President & CEO .
“Site rental revenue, excluding non‑cash amortization, grew 68% year‑over‑year… [and] excluding the impact of T‑Mobile revenue on interim sites, grew 46%.” — Doug Chambers .
“Approximately 40% of SG&A… include[s]… wireless operations wind‑down… [and] spectrum assets management… We expect legacy wireless operations wind‑down expenses to persist into the first half of 2026… and… begin declining in the second half of 2026.” — Doug Chambers .
“We expect to recognize approximately $7 million of site rental revenue from the DISH MLA in 2025… and [DISH has] obligations at similar levels from 2026 through 2031…” — Doug Chambers .
Capital return outlook: “At Array… cash received upon closing of the AT&T and Verizon transactions will be used… primarily to fund ongoing business operations and special dividends… following the closing of the AT&T transaction… [we] would declare a special dividend… approximately $10 per share.” — Vicki Villacrez (TDS CFO) .

Q&A Highlights

Margin uplift roadmap: Management emphasized margin expansion from colocation growth, SG&A reduction, and ground rent rationalization, with interim‑site revenues declining over time as T‑Mobile cancels interim sites; analyst referenced 45–50% longer‑term margin ambition .
Naked towers/leasing: Multi‑year process focused on lease‑up, negotiating lower ground rents, and tower‑by‑tower economic evaluation; many ground leases have short‑notice termination rights .
M&A focus: Near‑term emphasis is operational execution; inorganic tower M&A or tower disposals are not current priorities while MLA integration and lease‑up efforts progress .

Estimates Context

Wall Street consensus (S&P Global) for AD’s Q3 2025 revenue/EPS/EBITDA was unavailable via our S&P Global integration this quarter; therefore, we cannot present a versus‑consensus comparison. If you want, we can source third‑party consensus snapshots separately, but S&P Global is our default benchmark.

Key Takeaways for Investors

The T‑Mobile MLA is the primary growth engine near term; non‑T‑Mobile leasing momentum (applications +125% YTD) supports diversification and organic growth beyond MLA economics .
Earnings quality mix is complex this quarter (equity income gains, tax benefits, non‑cash spectrum items); focus on recurring site rental growth, Adjusted EBITDA ($85.1M), and AFCF ($45.9M) to assess underlying tower performance .
Cost normalization is a 2026 story: SG&A elevated through 1H26 due to wind‑down/spectrum/structural IT costs; expect sequential improvement into 2H26 as programs roll off .
Capital returns are a tangible catalyst: pending AT&T close could unlock an approx. $10/share special dividend; progress on Verizon/T‑Mobile spectrum deals adds optionality, though timing depends on regulatory processes .
Risk monitor: DISH MLA dispute and potential revenue enforcement; naked tower economics (lease‑up vs. decommission); interim‑site revenue attrition; and spectrum market conditions for remaining C‑Band .
Balance sheet and liquidity: $325.6M cash, new $325M term loan (SOFR+2.50%); covenant headroom and credit rating stability support investment flexibility .

Appendix: Additional Data and Reconciliations

Non‑GAAP reconciliations for Adjusted EBITDA and Adjusted OIBDA are provided in the 10‑Q and press release .
Cash flow details and balance sheet highlights, including deferred revenue from short‑term spectrum lease and tax accruals tied to the T‑Mobile transaction, are in the 10‑Q .

ARRAY DIGITAL INFRASTRUCTURE, INC. (AD)·Q3 2025 Earnings Summary