Array Digital Infrastructure (AD) Q4 2025 earnings summary

Executive summary

• 2025 was a transformative year, highlighted by the divestiture of wireless operations, major spectrum monetization, special dividends, and strategic repositioning, including new CEO appointments and Array's setup as a standalone tower company.

• Closed $1.018 billion Array spectrum sale to AT&T in January 2026, enabling a $10.25/share special dividend and significant debt repayment; also issued a $23/share special dividend from the T-Mobile transaction.

• TDS Telecom expanded its fiber footprint to 1.06 million addresses, delivering 140,000 new marketable fiber addresses in 2025, with a target of 200,000–250,000 for 2026.

• Array's tower business saw strong growth, with Q4 marking the first full quarter of T-Mobile MLA revenue, a 64% year-over-year increase in cash site rental revenue, and tenancy rate rising to 1.03.

• Monetized over 70% of Array's spectrum holdings, with major transactions closed or pending with AT&T, Verizon, and T-Mobile.

Financial highlights

• TDS repaid $150 million in term loan debt and invested $67 million to repurchase 1.8 million shares in Q4, with $524 million remaining in the repurchase authorization.

• TDS Telecom's Q4 2025 operating revenues were $261 million, down 1% year-over-year; full year 2025: $1.038 billion, down 2%.

• Adjusted EBITDA for TDS Telecom Q4 2025 was $85 million (up 6%); full year: $330 million (down 6%).

• Array's Q4 2025 site rental revenues were $54.99 million, up 96% year-over-year; full year operating revenues: $162.96 million, up 58%.

• Adjusted EBITDA for Array in 2025 was $194 million, up from $122 million in 2024.

Outlook and guidance

• TDS Telecom 2026 guidance: revenues of $1.015–$1.055 billion, Adjusted EBITDA of $310–$350 million, and CapEx of $550–$600 million.

• Array 2026 guidance: operating revenue of $200–$215 million, Adjusted EBITDA of $200–$215 million, and CapEx of $25–$35 million.

• Fiber address delivery target for 2026 is 200,000–250,000, with a long-term goal raised to 2.1 million addresses by 2029–2030.