Array at a Crossroads: Tower Growth Meets Takeover Bid and Industry Headwinds

CHICAGO, IL – August 07, 2026 – Array Digital Infrastructure (NYSE: AD) today unveiled a second quarter that would, on its surface, be the envy of any company. With total operating revenues nearly doubling year-over-year to $54.1 million and net income skyrocketing to $333.8 million, the numbers paint a picture of resounding success. This performance was fueled by a series of massive spectrum sales, allowing the company to issue a hefty special dividend to shareholders and upgrade its full-year financial guidance.

However, beneath the headline figures lies a company navigating a period of profound strategic transition. While Array is successfully monetizing legacy assets and demonstrating robust health in its core tower business, it is simultaneously grappling with the bankruptcy of a major tenant and weighing a non-binding acquisition proposal from its own majority shareholder, Telephone and Data Systems, Inc. (TDS). It’s a complex narrative of operational success set against a backdrop of strategic uncertainty.

"Array continues to make nice progress executing across our 2026 priorities," said Anthony Carlson, President and CEO, in the company's earnings release. "The organization remains laser-focused on optimizing our tower operations - as evidenced by our sequential tower tenancy growth. And we continue to monetize our remaining spectrum assets as well as support T-Mobile's integration."

A Quarter Defined by Asset Sales

The most dramatic driver of Array's second-quarter results was its successful divestiture of non-core spectrum assets. The company closed on approximately $1.16 billion in spectrum sales during the quarter. This included a colossal $1 billion sale of cellular and other spectrum licenses on June 1, and separate sales of 700 MHz and 600 MHz licenses to T-Mobile in May for a combined $161.2 million. These transactions represent a key step in Array's strategic pivot, completed last year with the sale of its wireless operations, to become a pure-play owner and operator of digital infrastructure.

The immediate effect of this cash infusion was a staggering increase in net income, which reached $333.8 million, or $3.86 per diluted share, compared to just $14.8 million, or $0.17 per share, in the same period last year. Recognizing the one-time nature of these gains, Array moved quickly to return value to its investors, issuing a special dividend of $11 per common share on June 25. This move was a clear signal of management’s commitment to shareholder returns as it streamlines the business.

Buoyed by these results and strong operational performance, Array updated its 2026 guidance, increasing its Adjusted EBITDA forecast to a range of $220 million to $235 million and narrowing its revenue projections to between $205 million and $215 million, reflecting confidence in its ongoing operations.

Core Tower Business Shows Underlying Strength

Beyond the headline-grabbing asset sales, the underlying health of Array's core business of leasing space on its 4,456 cell towers is showing significant strength. Site rental revenues, the lifeblood of the company's recurring income, jumped an impressive 95% year-over-year to $53.2 million. This was not an anomaly, as the company also reported its second consecutive quarter of tower tenancy growth.

The number of colocations—instances where a third party leases space on an Array-owned tower—grew by 72 in the quarter, pushing the overall tower tenancy rate up to 0.98 from 0.96 in the prior quarter. This steady growth is critical, as it demonstrates Array's ability to capitalize on the relentless demand for wireless data and the ongoing 5G network buildouts across the country.

A significant factor in this growth is Array's deep relationship with T-Mobile, which is actively integrating the network assets it acquired from Array's former wireless operations. A master lease agreement provides T-Mobile with access to a minimum of 2,015 committed tower sites and up to 1,800 interim sites through early 2028, creating a predictable and substantial pipeline for Array's colocation business.

The Elephant in the Room: A TDS Takeover Proposal

While Array's management focuses on operations, its future as an independent entity is in question. On May 7, majority owner TDS, which already holds approximately 81.9% of Array's shares, delivered a non-binding proposal to acquire the remaining public float. The all-stock offer would see each remaining Array share exchanged for 0.86 TDS shares.

In response, Array's Board of Directors has formed a special committee of independent directors to evaluate the proposal and determine if it is in the best interests of minority shareholders. The committee's work is ongoing, and its eventual recommendation will be a pivotal moment for the company's future. The proposal introduces a layer of complexity for investors, as it shifts the conversation from Array's operational performance to its valuation within a larger corporate structure.

Market reaction has been cautious. While the stock saw an initial bump, some analysts have since tempered their price targets, citing the strategic uncertainty and its potential impact on future growth models. The situation places Array at a crossroads, forcing it to simultaneously execute a complex operational strategy while its very corporate identity is under review.

Navigating Industry Headwinds

Adding another layer of complexity is the ongoing saga of DISH Wireless, which filed for Chapter 11 bankruptcy on June 30. Array, like other tower operators, has exposure to DISH. In a prudent move, Array's management stopped recognizing revenue from DISH back in the first quarter of 2026 and removed the company from its colocation and tenancy metrics, citing the low probability of collecting lease payments. This proactive write-down provides investors with a clearer, albeit slightly reduced, picture of Array's core tenancy base.

While the financial impact has been preemptively absorbed, the bankruptcy highlights the inherent risks in the tower industry's concentrated customer base. Array is now monitoring the bankruptcy proceedings and exploring avenues for recovery, which could include claims against a $2.4 billion escrow fund established by the FCC as a condition of an EchoStar spectrum transfer. However, accessing these funds is a complex legal process with no guaranteed outcome.

As Array moves forward, it does so from a position of financial strength, bolstered by its asset sales and a healthy core business. Yet, the path ahead is defined by the significant strategic questions posed by the TDS proposal and the lingering fallout from the DISH bankruptcy, making the company a key player to watch in the evolving digital infrastructure landscape.