$AD earnings report

Array reported third quarter 2026 total operating revenues from continuing operations of $53.9 million, up 14% from $47.1 million a year earlier. Site rental revenue rose 14% to $52,475 thousand, and the company states it delivered consecutive quarter-over-quarter colocation growth. Services revenue rose 9%. The revenue growth came with lower operating expense in total: total operating expenses fell 44% to $56,196 thousand, mainly because the prior-year quarter included a $47,679 thousand loss on impairment of licenses, which is not repeated in the current quarter. Selling, general and administrative expense fell 11%, while cost of operations rose 11% and depreciation, amortization and accretion rose 13%. Operating loss narrowed to $(2,326) thousand from $(53,313) thousand.

Below the operating line, the picture is weaker. Equity in earnings of unconsolidated entities fell 41% to $41,009 thousand, interest and dividend income fell 50%, short-term imputed spectrum lease income fell 75% to $7,669 thousand, and interest expense rose 24% to $(10,972) thousand. Income tax moved to a benefit of $(30,121) thousand from a benefit of $(62,701) thousand in the prior-year quarter. Net income from continuing operations attributable to Array shareholders was $69.6 million, or $0.81 per diluted share, compared with $108.8 million, or $1.25, a year earlier. The filing does not give a cause for each of these declines, so the reader should weigh them against the reported figures directly.

On the non-GAAP measures, Adjusted OIBDA rose to $18,255 thousand from $6,107 thousand, while Adjusted EBITDA fell to $63,741 thousand from $85,081 thousand. Adjusted EBITDA excludes the prior-year and current-quarter items shown in the reconciliation, including expenses related to the strategic alternatives review of $5,934 thousand in Q3 2026. The company does not print a year-over-year change for either non-GAAP measure in the quarter, so none is given here.

The nine-month figures are dominated by the 2026 spectrum sales. Operating income for nine months 2026 was $557,722 thousand, driven by a $(566,459) thousand gain on license sales and exchanges, and net income attributable to Array shareholders was $605,286 thousand, or $7.00 per diluted share. Cash received from divestitures was $2,185,801 thousand, and cash paid for income taxes was $(274,270) thousand, which the company says is substantially related to the 2026 spectrum license sales. Adjusted Free Cash Flow from continuing operations was $(161,996) thousand for nine months 2026, and no prior-year comparison is printed for that measure. Dividends paid to shareholders were $(1,836,737) thousand, and total equity declined to $1,337,479 thousand from $2,574,557 thousand at December 31, 2025.

The company reaffirmed 2026 guidance, with every figure unchanged: total operating revenues of $205-$215 million, Adjusted OIBDA of $60-$75 million, Adjusted EBITDA of $220-$235 million and capital expenditures of $25-$35 million. Remaining spectrum closings of about $30 million are expected in 2026, subject to FCC finality. Tower metrics were mixed: owned towers stood at 4,455, colocations at 4,372 (up from 4,362 in the prior quarter but below 4,517 a year earlier), and the tenancy rate at 0.98 (flat on the prior quarter, down from 1.02 a year earlier). The colocation and tenancy figures carry footnotes on excluded sites and the DISH Wireless exclusion that the reader should review.

Array reported total operating revenues from continuing operations of $54.1 million for the second quarter of 2026, compared with $28.5 million in the same period one year ago. Site rental revenues grew 95% year over year. Tower operating indicators also improved sequentially: the number of colocations was 4,362 versus 4,290 as of 3/31/2026, while the tower tenancy rate was 0.98 versus 0.96. Owned towers increased to 4,456 from 4,452 over the same dates.

Net income attributable to Array shareholders from continuing operations was $333.8 million, or $3.86 per diluted share, compared with $14.8 million and $0.17 in the same period one year ago. The period included substantial spectrum monetization activity. Array closed sales of specified 700 MHz licenses for $74.8 million, specified 600 MHz licenses for $86.4 million, and certain cellular and other spectrum licenses for $1 billion. The company also issued a special dividend of $11 per common share.

The full-year outlook reflects a narrowed revenue range and higher profitability expectations. Array narrowed total operating revenue guidance to $205-$215 from $200-$215, citing higher interim site revenue. It increased Adjusted EBITDA guidance to $220-$235 from $200-$215 and increased Adjusted OIBDA guidance to $60-$75 from $50-$65. Capital-expenditure guidance remained $25-$35. For the six months ended June 30, 2026, Array reported Adjusted EBITDA of $119 and Adjusted OIBDA of $33.

The key operating issue is the loss of recognized revenue associated with DISH. Array stopped recognizing DISH revenue beginning in the first quarter of 2026 after DISH asserted that its Master Lease Agreement obligations were excused, and DISH Wireless and other DISH entities filed for bankruptcy in June 2026. Array also has approximately $30 million of additional 600 MHz and 700 MHz license sales pending, subject to regulatory approval and customary closing conditions.

Capital allocation and strategic activity remain central to the investment case described in the release. The company used proceeds from completed spectrum sales to support the special dividend, while maintaining capital-expenditure guidance. Separately, TDS submitted a non-binding proposal to acquire Array Common Shares not owned by TDS, and Array's board formed a special committee to evaluate that proposal. Management's ability to sustain tower-tenancy improvement, complete the remaining spectrum sales, and manage the DISH situation will be the principal reported items to follow through the rest of 2026.