Array Digital Infrastructure (AD) Q1 2026 earnings summary

Executive summary

• Announced a proposal for TDS to acquire remaining Array shares in an all-stock transaction, with a special committee evaluating the offer to simplify structure and enhance growth investment capacity.

• Delivered a record 40,000 new fiber service addresses in Q1 2026, up ~180% year-over-year, and added 10,900 residential fiber connections, a 30% increase from Q1 2025.

• Array reported strong tower tenancy growth, with site rental revenues up 92% year-over-year and significant progress monetizing spectrum assets.

• Closed major spectrum sales, including $1,018.0 million to AT&T in January and $74.8 million to T-Mobile in May 2026, with further sales to T-Mobile and Verizon expected to close in Q2/Q3 2026.

• Guidance for both TDS Telecom and Array remains unchanged for 2026, with significant pending transactions and operational transformation underway.

Financial highlights

• TDS Telecom Q1 2026 operating revenues were $250 million, down 3% year-over-year, with adjusted EBITDA at $74 million, also down 3%.

• Capital expenditures for TDS Telecom were $126 million in Q1, more than double Q1 2025, reflecting higher construction activity.

• Array Q1 2026 total operating revenues were $52 million, up 93% year-over-year, with adjusted EBITDA at $62 million.

• Net income attributable to shareholders was $179.8 million in Q1 2026, up from $4.7 million year-over-year.

• Special dividend of $10.25 per share paid following the AT&T spectrum sale.

Outlook and guidance

• TDS Telecom projects 2026 revenues of $1.015–$1.055 billion, adjusted EBITDA of $310–$350 million, and capital expenditures of $550–$600 million.

• Array's 2026 guidance: operating revenues $200–$215 million, adjusted EBITDA $200–$215 million, and capital expenditures $25–$35 million.

• Targeting 200,000–250,000 new fiber service addresses in 2026.

• Board expects to declare a special dividend upon closure of the Verizon spectrum transaction.