Business Context and Reporting Period
Company: Array Digital Infrastructure, Inc. (formerly United States Cellular Corporation)
Reporting Period: Fiscal Year Ended December 31, 2025
Business Model: Array operates as a digital infrastructure company, primarily leasing tower space to wireless carriers and providing ancillary services. As of December 31, 2025, it owns 4,450 towers across 19 states. The company is an 82.0%-owned subsidiary of Telephone and Data Systems, Inc. (TDS).
Strategic Shift: On August 1, 2025, Array sold its wireless operations and select spectrum assets to T-Mobile US, Inc. for total consideration of $4.29 billion. These operations are now reported as discontinued operations. The company's future focus is on tower colocation, spectrum monetization, and noncontrolling interests in wireless entities.
Key Financial Metrics
| Metric (in millions) | 2025 | 2024 |
|---|---|---|
| Total Operating Revenues (Continuing) | $163.0 | $102.9 |
| Net Income (Continuing Operations) | $172.3 | $(80.5) |
| Net Income (Total, incl. Discontinued) | $69.2 | $(31.6) |
| Net Income Attributable to Array Shareholders | $48.8 | $(39.4) |
| Adjusted EBITDA (Continuing) | $194.3 | $121.9 |
| Adjusted OIBDA (Continuing) | $1.5 | $(51.1) |
| Cash and Cash Equivalents (Year End) | $113.4 | $143.7 |
| Long-Term Debt (Net) | $670.3 | $1,201.7 |
| Capital Expenditures (Continuing) | $29.9 | $19.1 |
Material Changes vs. Prior Period
- Revenue Growth: Total operating revenues from continuing operations increased 58% to $163.0 million, driven primarily by the execution of a Master License Agreement (MLA) with T-Mobile, which added lease revenue from 2,015 committed sites and interim leases.
- Profitability Turnaround: Net income from continuing operations swung from a loss of $80.5 million in 2024 to a profit of $172.3 million in 2025. This was largely due to a $173.8 million increase in "Equity in earnings of unconsolidated entities" (including a $33.4 million gain share from the sale of Iowa wireless entities) and a reduction in spectrum license impairments ($47.7 million in 2025 vs. $136.2 million in 2024).
- Discontinued Operations: The sale of wireless operations to T-Mobile resulted in a net loss from discontinued operations of $120.9 million attributable to Array shareholders, primarily due to a $242.2 million loss on the sale transaction.
- Debt Reduction: Long-term debt decreased significantly by approximately $531 million due to the repayment of term loans and the exchange of $1.68 billion of debt for T-Mobile debt as part of the transaction.
- Dividends: The company declared and paid a special dividend of $23.00 per share in August 2025 ($1.99 billion total) and a subsequent special dividend of $10.25 per share in February 2026 ($885.5 million total) following the AT&T spectrum sale.
Guidance, Outlook, and Risks
- Spectrum Monetization: Array is actively pursuing the sale of remaining spectrum assets. Agreements are in place to sell licenses to Verizon ($1.0 billion), AT&T ($1.02 billion, closed Jan 2026), and T-Mobile ($85.0 million). Proceeds from these sales are expected to fund future special dividends.
- Tower Strategy: Management expects to have 800–1,800 towers without tenants post-T-Mobile integration. The strategy involves increasing leasing, rationalizing ground rents, and potentially divesting or decommissioning non-viable sites.
- Capital Expenditures: 2026 capital expenditures are expected to range between $25.0 million and $35.0 million, focused on land interest purchases, maintenance, and tower builds.
- Key Risks:
- Customer Concentration: Heavy reliance on T-Mobile for tower lease revenue following the MLA.
- Transaction Uncertainty: Pending spectrum sales to Verizon and T-Mobile are subject to regulatory approval; failure to close could impact liquidity and stock price.
- Decommissioning Costs: Potential significant costs associated with retiring towers without tenants and fulfilling ground lease obligations.
- Legal Proceedings: Ongoing False Claims Act litigation regarding FCC auction participation, though recent court rulings have been favorable.
Investor Verification Checklist
- Regulatory Approvals: Verify the status of FCC approvals required for the pending Verizon and T-Mobile spectrum license sales.
- T-Mobile MLA Execution: Confirm the actual number of sites leased under the T-Mobile Master License Agreement and the duration of interim leases.
- Decommissioning Liability: Review the estimated costs and timeline for decommissioning the 800–1,800 towers expected to remain without tenants.
- Ground Lease Terms: Assess the expiration dates and renewal terms of ground leases for the tower portfolio, particularly for sites with no tenants.
- Legal Contingencies: Monitor the status of the Advantage Spectrum False Claims Act litigation remanded to the district court.