Array Digital Infrastructure Reports Mixed Q2 Results Amid Strategic Changes and Wireless Sale

Array Digital Infrastructure, Inc. reported its financial results for the second quarter and first half of 2025, revealing a mixed performance amid significant strategic changes. For the three months ended June 30, 2025, the company generated total operating revenues of $916 million, a slight decrease of 1% compared to $927 million in the same period of 2024. The wireless segment contributed $888 million, down from $902 million, while the towers segment saw a 7% increase in revenue to $62 million from $58 million. For the first half of 2025, total revenues were $1.807 billion, down 4% from $1.877 billion in the prior year.

The company's net income for the second quarter was $32 million, a significant increase of 77% from $18 million in the same quarter of 2024. This growth was attributed to a decrease in income tax expenses and an increase in equity earnings from unconsolidated entities. However, operating income fell slightly to $35 million from $36 million year-over-year. The adjusted EBITDA for the quarter was $254 million, down 6% from $268 million in the previous year, reflecting ongoing challenges in the wireless market.

A major strategic development occurred with the completion of the sale of Array's wireless operations to T-Mobile on August 1, 2025, for cash proceeds of $2.629 billion. This transaction is expected to significantly alter Array's operational landscape, as it transitions to focus primarily on its tower operations and spectrum assets. Following the sale, Array entered into a Master License Agreement with T-Mobile, which includes leasing space on over 2,000 towers for a minimum of 15 years. The company also announced a special dividend of $23 per share, payable on August 19, 2025, reflecting its strong cash position post-transaction.

Operationally, Array's wireless segment reported a decline in retail connections, with total postpaid connections decreasing to 3.904 million from 4.027 million year-over-year. The churn rate for postpaid handsets increased to 1.12%, up from 0.97% in the prior year, indicating heightened competition in the wireless market. In contrast, the towers segment reported an increase in the number of colocations, rising to 2,527 from 2,392, and a tower tenancy rate of 1.57, up from 1.55.

Looking ahead, Array's management expressed optimism about future growth opportunities, particularly in its tower operations and spectrum monetization efforts. The company is actively pursuing the sale of additional spectrum licenses to Verizon and AT&T, which could provide substantial cash inflows. However, the ongoing strategic alternatives review process and the need to manage operational costs post-wireless divestiture present challenges that could impact Array's financial performance in the near term.