Third quarter 2026
Filed Nov 2, 2026SBA Communications Corporation Reports Third Quarter 2026 Results; Updates Full Year 2026 Outlook; and Declares Quarterly Cash Dividend
International site leasing growth and expanded Adjusted EBITDA margin offset declines in domestic site leasing, site development revenue, Adjusted EBITDA and AFFO. Full-year revenue outlook was reduced, while AFFO and AFFO per share outlook increased from the August 3, 2026 outlook midpoint.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $713.9M | – | – |
| Q3 2026 site leasing revenueGAAP | $665.4M | – | 1.4% |
| Q3 2026 site development revenueGAAP | $48.5M | – | (36.0%) |
| Q3 2026 cost of site leasingGAAP | $133.7M | – | – |
| Q3 2026 cost of site developmentGAAP | $37.87M | – | – |
| Q3 2026 selling, general, and administrative expensesGAAP | $68.01M | – | – |
| Q3 2026 acquisition and new business initiatives related adjustments and expensesGAAP | $8.76M | – | – |
| Q3 2026 asset impairment and decommission costsGAAP | $13.46M | – | – |
| Q3 2026 depreciation, accretion, and amortizationGAAP | $84.43M | – | – |
| Q3 2026 total operating expensesGAAP | $346.2M | – | – |
| Q3 2026 operating incomeGAAP | $367.7M | – | – |
| Q3 2026 interest incomeGAAP | $7.89M | – | – |
| Q3 2026 interest expenseGAAP | −$126.8M | – | – |
| Q3 2026 non-cash interest income (expense)GAAP | $16.45M | – | – |
| Q3 2026 amortization of deferred financing feesGAAP | −$5.58M | – | – |
| Q3 2026 loss from extinguishment of debt, netGAAP | −$20.08M | – | – |
| Q3 2026 other income, netGAAP | $15.01M | – | – |
| Q3 2026 income before income taxesGAAP | $254.6M | – | – |
| Q3 2026 provision for income taxesGAAP | −$22.23M | – | – |
| Q3 2026 net incomeGAAP | $232.4M | – | (3.3%) |
| Q3 2026 net income attributable to SBA Communications CorporationGAAP | $231.3M | – | – |
| Q3 2026 diluted earnings per shareGAAP | $2.19 | – | (0.6%) |
| Q3 2026 tower cash flownon-GAAP | $526.9M | – | 0.1% |
| Q3 2026 tower cash flow marginnon-GAAP | 79.7% | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $488.1M | – | (1.1%) |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 68.8% | – | – |
| Q3 2026 FFOnon-GAAP | $328.6M | – | – |
| Q3 2026 AFFOnon-GAAP | $337.3M | – | (5.0%) |
| Q3 2026 AFFO per sharenon-GAAP | $3.19 | – | (3.3%) |
| Nine months 2026 total revenuesGAAP | $2.13B | – | – |
| Nine months 2026 site leasing revenueGAAP | $1.99B | – | – |
| Nine months 2026 site development revenueGAAP | $147.2M | – | – |
| Nine months 2026 total operating expensesGAAP | $1.07B | – | – |
| Nine months 2026 operating incomeGAAP | $1.06B | – | – |
| Nine months 2026 net incomeGAAP | $613.7M | – | – |
| Nine months 2026 net income attributable to SBA Communications CorporationGAAP | $614.9M | – | – |
| Nine months 2026 diluted earnings per shareGAAP | $ 5.80 | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | $325.1M | – | – |
| Q3 2026 total capital expendituresGAAP | $72.78M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Domestic site leasingDomestic cash site leasing revenue was $ 453.6 million, with a (3.7%) change. | $454.4M | – | (3.4%) |
| International site leasingInternational cash site leasing revenue increased 12.7%, or 9.2% excluding FX. | $211M | – | 13.3% |
| Site developmentNo qualitative segment-specific driver was provided. | $48.5M | – | (36.0%) |
Full Year 2026 outlook
- RevenueTotal revenues $ 2,833.0 to $ 2,858.0
- NoteSite leasing revenue $ 2,643.0 to $ 2,658.0
- NoteSite development revenue $ 190.0 to $ 200.0
- NoteTower Cash Flow $ 2,083.0 to $ 2,098.0
- NoteAdjusted EBITDA $ 1,918.0 to $ 1,928.0
- NoteNet cash interest expense $ 487.0 to $ 493.0
- NoteNon-discretionary cash capital expenditures $ 61.0 to $ 65.0
- NoteAFFO $ 1,284.0 to $ 1,308.0
- NoteAFFO per share $ 12.15 to $ 12.37
- NoteDiscretionary cash capital expenditures $ 480.0 to $ 490.0
- NoteNet income $ 794.0 to $ 839.0
- NoteFFO $ 1,207.5 to $ 1,242.5
- NoteAFFO attributable to SBA Communications Corporation $ 1,277.0 to $ 1,301.0
- NoteDiluted weighted average number of common shares 105.7 to 105.7
Capital returns
- Repurchased 1.7 million shares of its Class A common stock for $300.0 million at an average price per share of $179.68 during the third quarter of 2026.
- $0.8 billion of authorization remained under the $1.5 billion stock repurchase plan as of the date of the press release.
- Declared and paid a cash dividend of $131.3 million in the third quarter of 2026.
- The Board declared a quarterly cash dividend of $1.25 per share, payable December 10, 2026 to shareholders of record at the close of business on November 12, 2026.
What drove it
- Management said demand for tower assets remained strong as wireless carriers expand and upgrade their networks.
- International site leasing revenue increased 13.3%, or 9.8% excluding FX.
- SBA built 213 towers during the third quarter of 2026 and acquired 7 communication sites for total cash consideration of $10.8 million.
- The Company sold all towers and related assets in Chile and Ecuador on September 10, 2026 and agreed to sell all towers and related assets in Peru, subject to regulatory approval.
- SBA owned or operated 45,252 communication sites at September 30, 2026, including 17,340 in the United States and its territories and 27,912 internationally.
Concerns
- Domestic site leasing revenue declined (3.4%), while domestic cash site leasing revenue declined (3.7%).
- Site development revenue declined (36.0%).
- Adjusted EBITDA declined (1.1%), AFFO declined (5.0%), and AFFO per share declined (3.3%).
- The Chile and Ecuador asset sales negatively impacted full-year 2026 outlook by approximately $10.0 million for Site leasing revenue, $6.0 million for Tower Cash Flow, and $4.0 million for Adjusted EBITDA.
- The Peru asset sale remains subject to regulatory approval and is expected to close during the fourth quarter of 2026; the Company made no adjustment to its full-year outlook for that transaction given uncertainty of the closing date.
- The Company recorded a $ (20,082) (in thousands) loss from extinguishment of debt, net, during the quarter.
What to watch
- Closing of the Peru tower sale, which is subject to regulatory approval and expected during the fourth quarter of 2026.
- Refinancing of the $1,165.0 million 2021-1C Tower Securities, which have an anticipated repayment date of November 9, 2026.
- Execution against full-year site leasing revenue outlook of $ 2,643.0 to $ 2,658.0 and Adjusted EBITDA outlook of $ 1,918.0 to $ 1,928.0.
- The Company expects to close purchases of, or has contracts to purchase, 69 communication sites for aggregate cash consideration of $17.9 million by the end of the fourth quarter of 2026.
- Domestic leasing trends, including the outlook bridge items for Sprint Consolidation Churn of $(56) to $(55) and EchoStar Churn of $(56) to $(56).
Balance sheet and cash flow
- Ended the third quarter with $13.0 billion of total debt, $6.5 billion of total secured debt, $0.5 billion of cash and cash equivalents, short-term restricted cash, and short-term investments, and $12.5 billion of Net Debt.
- Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 6.4x and 3.1x, respectively.
- Cash and cash equivalents were $ 417,532 (in thousands) at September 30, 2026.
- Net cash provided by operating activities was $ 325,096 (in thousands) in the third quarter of 2026.
- Net cash provided by investing activities was $ 40,053 (in thousands), including $ 145,805 (in thousands) of proceeds from sale of assets.
- Net cash used in financing activities was $ (291,011) (in thousands).
- Total cash capital expenditures were $105.2 million, consisting of $14.1 million of non-discretionary cash capital expenditures and $91.1 million of discretionary cash capital expenditures.
Analysis
SBA reported modest consolidated site leasing growth in the third quarter, with site leasing revenue of $ 665.4 million, up 1.4%, and tower cash flow of $ 526.9 million, up 0.1%. This growth was entirely shaped by diverging regional trends. Domestic site leasing revenue declined (3.4%) to $ 454.4 million, while international site leasing revenue increased 13.3% to $ 211.0 million, or 9.8% excluding FX. Site development revenue fell (36.0%) to $ 48.5 million, driving total revenues to $ 713,924 (in thousands), below the $ 732,327 (in thousands) reported in the prior-year quarter.
Profitability was mixed. Tower cash flow margin declined to 79.7% from 80.4%, but Adjusted EBITDA margin expanded to 68.8% from 67.5%. GAAP operating income was $ 367,737 (in thousands), compared with $ 374,169 (in thousands) a year ago. Net income was $ 232.4 million, down (3.3%), and diluted earnings per share was $2.19, down (0.6%). Adjusted EBITDA declined (1.1%) to $ 488.1 million, while AFFO declined (5.0%) to $ 337.3 million and AFFO per share declined (3.3%) to $3.19.
The Company continued to invest in portfolio development and reposition its international footprint. It acquired 7 sites for $10.8 million, built 213 towers, and spent $105.2 million on total cash capital expenditures. It sold its Chile and Ecuador towers and entered into an agreement to sell its Peru towers, completing its exit from South America outside Brazil if the Peru transaction closes. The site count declined to 45,252 at quarter end from 46,390 at June 30, 2026, reflecting 1,358 sites decommissioned, reclassified, or sold during the quarter.
Capital allocation was active. SBA repurchased 1.7 million shares for $300.0 million and declared and paid $131.3 million of cash dividends during the quarter. It ended the quarter with $13.0 billion of total debt and a 6.4x Net Debt to Annualized Adjusted EBITDA leverage ratio. The Company also established a $2.5 billion commercial paper program and had no amounts outstanding under either the Revolving Credit Facility or Commercial Paper Program as of the release date.
Full-year 2026 outlook calls for site leasing revenue of $ 2,643.0 to $ 2,658.0, total revenues of $ 2,833.0 to $ 2,858.0, Adjusted EBITDA of $ 1,918.0 to $ 1,928.0, and AFFO per share of $ 12.15 to $ 12.37. The midpoint changes from the August 3, 2026 outlook were negative for site leasing revenue, site development revenue, total revenues, Tower Cash Flow, and Adjusted EBITDA, while AFFO and AFFO per share increased. The Company stated that the completed Chile and Ecuador sales reduced outlook by approximately $10.0 million for Site leasing revenue, $6.0 million for Tower Cash Flow, and $4.0 million for Adjusted EBITDA.
Management, verbatim
Demand for our tower assets remains strong as wireless carriers continue to expand and upgrade their networks.
Brendan Cavanagh, President and Chief Executive Officer
Internationally, we continued to sharpen our focus, agreeing to sell our towers in three South American markets, completing our exit from the region outside of Brazil, while more than doubling our new tower builds in the markets where we have scale.
Brendan Cavanagh, President and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP gross margin was not reported.
- Free cash flow was not reported.
- A GAAP or non-GAAP tax rate was not reported.
- Prior-quarter comparisons were not reported for the presented metrics.
- The previous release's outlook ranges were not provided, so reported actual results cannot be evaluated against prior guidance under vs_prior_guidance.
- Fourth-quarter 2026 standalone financial guidance was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.