Executive Summary

Q2 2025 delivered modest beats: revenue $0.916B vs consensus ~$0.908B and diluted EPS $0.36 vs consensus ~$0.33; net income rose 80% y/y to $31M on lower taxes and higher equity-method earnings *.
Strategic pivot completed: sale of wireless operations and select spectrum to T‑Mobile closed Aug 1; company rebranded to Array Digital Infrastructure, declared a $23.00/share special dividend payable Aug 19, and emphasized tower-led cash flow with 4,400 towers and a new T‑Mobile MLA .
Towers strength: third‑party tower revenues up 12% y/y; segment operating income up 11% y/y; Number of colocations rose to 2,527 and tower tenancy to 1.57 .
Guidance withheld amid transition; pending spectrum transactions with Verizon (expected 2H 2025) and AT&T (expected Q3 2026) remain catalysts for additional monetization and capital returns .
Near-term stock catalysts: special dividend, incremental tower co‑locations under the T‑Mobile MLA, and spectrum deal closings; medium‑term narrative shifts toward AFFO-style tower reporting post-close and stabilizing, contracted revenue streams .

What Went Well and What Went Wrong

What Went Well

Closed T‑Mobile transaction and rebranded; declared $23.00 special dividend supporting near-term shareholder returns: “I am pleased that we have successfully closed the T‑Mobile deal and have declared a special dividend…” (Doug Chambers, Interim CEO) .
Towers momentum: third‑party tower revenues +12% y/y to $28M and segment operating income +11% y/y to $21M in Q2; tenancy improved to 1.57 with colocations reaching 2,527 .
Cash generation and non‑consolidated interests: equity in earnings of unconsolidated entities grew to $42M (+8% y/y) supporting net income, while free cash flow rose to $239M in Q2 on reduced capex and software spend .

What Went Wrong

Core wireless KPIs still pressured pre-sale close: postpaid net losses of (42k) and prepaid net losses of (2k); postpaid churn of 1.29% ticked up vs Q1 and y/y .
Profitability compression pre‑transition: Adjusted EBITDA fell 6% y/y to $254M; Adjusted OIBDA down 9% y/y to $208M, reflecting lower wireless contribution and strategic review expenses .
Revenue contraction y/y: total operating revenues declined 1% to $916M and service revenues fell 1% y/y to $736M amid connection declines and promotional intensity in the industry .

Financial Results

Income Statement vs Prior Periods and Estimates

Metric	Q4 2024	Q1 2025	Q2 2025
Total Operating Revenues ($USD Billions)	$0.970	$0.891	$0.916
Revenue Consensus Mean ($USD Billions)	$0.965*	$0.925*	$0.908*
Diluted EPS ($USD)	$0.05	$0.21	$0.36
Primary EPS Consensus Mean ($USD)	-$0.055*	$0.342*	$0.334*
Operating Income ($USD Millions)	-$9	$41	$35
Net Income Attributable to Shareholders ($USD Millions)	$5	$18	$31
Adjusted EBITDA (Non-GAAP, $USD Millions)	$208	$254	$254
Adjusted OIBDA (Non-GAAP, $USD Millions)	$167	$215	$208

Notes: Asterisks indicate values retrieved from S&P Global.*

Segment Breakdown

Segment Metric ($USD Millions)	Q2 2024	Q1 2025	Q2 2025
Wireless Operating Revenues	$902	$864	$888
Wireless Operating Income	$17	$20	$14
Towers Operating Revenues	$58	$61	$62
Towers Operating Income	$19	$21	$21
Consolidated Operating Revenues	$927	$891	$916
Consolidated Operating Income	$36	$41	$35

KPIs and Operating Data

KPI	Q4 2024	Q1 2025	Q2 2025
Postpaid Net Additions (Losses)	(14,000)	(39,000)	(42,000)
Prepaid Net Additions (Losses)	(4,000)	(17,000)	(2,000)
Postpaid ARPU ($)	$51.73	$52.06	$51.91
Prepaid ARPU ($)	$30.59	$30.76	$31.72
Postpaid Churn (%)	1.29%	1.21%	1.29%
Owned Towers (count)	4,409	4,413	4,418
Colocations (count)	2,444	2,469	2,527
Tower Tenancy Rate	1.55	1.56	1.57
Free Cash Flow ($USD Millions, Non-GAAP)	$ (53) (Q4 only)	$79 (Q1 only)	$239 (Q2 only)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Financial Guidance	FY 2025	Not provided (Q1)	Not providing guidance (Q2)	Maintained (no guidance)
Special Dividend	Aug 19, 2025	n/a	$23.00/share declared	New
Verizon Spectrum Transaction Close	2H 2025	Announced Oct 17, 2024	Expected to close 2H 2025	Maintained timeline
AT&T Spectrum Transaction Close	Q3 2026	Announced Nov 6, 2024	Expected to close Q3 2026	Maintained timeline

Earnings Call Themes & Trends

Note: Q2 2025 earnings call transcript was unavailable due to a document retrieval error. Themes below reflect Q4 2024 and Q1 2025 transcripts and Q2 2025 press release.

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Tower strategy and AFFO reporting	Plan to provide AFFO post T‑Mobile close; straight-line revenue adjustments expected	Confirmed plan to provide AFFO in first full quarter post-close	Tower revenue growth and MLA with T‑Mobile highlighted	Improving clarity
Spectrum monetization	Sold licenses over book/market; remaining C‑band to be monetized opportunistically	Expect spectrum deal closings; taxes $325–$375M on gains	Pending Verizon/AT&T closings remain 2H 2025/Q3 2026	Steady progress
Capital structure/leverage	Target leverage ~2.5–3.0x post-close; debt exchange mechanics outlined	Leverage closer to 3x; exchange ~50 days pre-close	Post-close focus on stable tower cash flows	Stable
Employee/severance and transition costs	Severance and accrued obligations highlighted; special dividend contemplated	Severance $60–$80M; accrued wages/bonuses $30–$40M; stock award vesting cash tax impacts	Transition executed; dividend declared	Executed
Wireless KPIs and competitive environment	Industry promos pressuring subs; fixed wireless growth; mid-band rollout	Promotional intensity persists; ARPU/ARPA stable; focus on cost cuts	Pre-close KPIs remain pressured; post-close tower focus	Transition away from wireless

Management Commentary

“As a tower company with 4,400 towers and a new Master License Agreement with T‑Mobile, Array has strength and stability from its current tower revenue stream, along with an excellent opportunity to grow colocations and revenues, and to expand margins over time.” — Doug Chambers, Interim President & CEO .
“We increased third‑party tower revenue 6% in the quarter due to both new colocations and escalators on renewed leases… we expect the tower business will be strengthened even further upon the anticipated closing of our transaction with T‑Mobile and the initiation of the tower MLA.” — Laurent Therivel (Q1) .
“We expect the UScellular Board to declare a special dividend proximate to the close date… to distribute net proceeds received from this initial transaction.” — Douglas Chambers (Q1) (subsequently executed in Q2) .

Q&A Highlights

The Q2 2025 earnings call transcript could not be retrieved due to a document database error; Q&A highlights are therefore unavailable for the current period.
From Q1 context (for continuity): management confirmed plans for AFFO reporting post-close , outlined leverage targets (~3x) and debt exchange timing , and detailed transition cash obligations (severance, accrued compensation, tax) .

Estimates Context

Results modestly exceeded consensus: revenue $0.916B vs ~$0.908B consensus; diluted EPS $0.36 vs ~$0.33 consensus; both with three estimates tracked, indicating a narrow analyst coverage and light dispersion *.
Implications: consensus may need to reflect the new tower-centric structure and reduced revenue base post disposal; third‑party tower strength (+12% y/y) and MLA co‑location potential argue for upward adjustments to tower revenue run-rate and AFFO proxies once disclosed .

Key Takeaways for Investors

Transition complete: focus shifts to towers and equity-method cash flows; near-term total return augmented by $23.00/share special dividend .
Tower fundamentals strengthening: third‑party growth, rising tenancy, and T‑Mobile MLA should underpin margin expansion and AFFO once reported .
Additional capital returns likely as Verizon/AT&T spectrum transactions close over 2H 2025–Q3 2026, subject to regulatory approvals .
Non‑GAAP profitability dipped y/y in Q2; watch for normalization as wireless operations exit is absorbed and corporate overhead right-sizes .
Monitor upcoming disclosures: post-close AFFO reporting, tower decommissioning strategy for “naked” towers, and MLA occupancy trajectory .
Trading setup: dividend catalyst in August, followed by potential re-rating as the market pivots to tower‑like valuation frameworks and AFFO visibility .
Risk checks: regulatory timing on spectrum sales, reliance on a small tenant base for tower revenues, and residual transition costs flagged in safe-harbor statements .

Footnote: Asterisks indicate values retrieved from S&P Global.

ARRAY DIGITAL INFRASTRUCTURE, INC. (USM)·Q2 2025 Earnings Summary