Array Digital Infrastructure: Pending Spectrum Sales And Positive Free Cash Flow From Towers

2025-11-17 17:13:36 ET

Array Digital Infrastructure ( AD ), a subsidiary of Telephone and Data Systems ( TDS ), is a profitable cell tower owner with a growing revenue and operating cash flow profile that possibly sets up its leaner operations for healthy near-term returns following the completion of the sale of US Cellular ("USC") to T-Mobile ( TMUS ). AD's fiscal 2025 third quarter was its first without USC, with the tower owner generating third quarter revenue of $47.12 million , up 83.1% over its year-ago comp and a beat by $970,000 on consensus estimates. While the market will find it hard to assign a value to the commons of AD post-USC sale, the focus should be on operating cash flow and the cadence of liquidity versus total debt. AD owned 4,449 towers at the end of its third quarter, up by 42 towers over its year-ago comp. Revenue from towers does have a TMUS bias, with the company forming 60% of AD's September tower rental revenue. The bulk of this, around 45% of September tower rental revenue, is formed from 15-year lease master license agreement ("MLA") committed sites and 600 existing sites leased by TMUS. The other 15% of September revenue is interim sites that TMUS will co-locate for up to 30 months, but with an option to terminate earlier on a tower-by-tower basis. ...

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