Array Digital Infrastructure (AD) Q1 2026 earnings summary

Executive summary

• TDS proposed to acquire all remaining Array shares in an all-stock transaction, aiming to simplify structure and enhance growth investment flexibility; a special committee is reviewing the non-binding proposal.

• TDS Telecom delivered a record 40,000 new fiber service addresses in Q1 2026, nearly tripling year-over-year, and added 10,900 residential fiber connections, a 30% increase from Q1 2025.

• Array reported strong tower tenancy growth, significant progress monetizing spectrum assets, and site rental revenues surged 92% year-over-year.

• Major spectrum license sales closed, including $1,018.0 million to AT&T in January and $74.8 million to T-Mobile in May 2026; further sales to Verizon and T-Mobile are pending.

• Continued operational transformation to drive efficiencies and enhance digital infrastructure.

Financial highlights

• TDS Telecom Q1 2026 operating revenues were $250 million, down 3% year-over-year; adjusted EBITDA was $74 million, down 3% year-over-year.

• Fiber revenue increased 13% year-over-year, offsetting legacy declines; total residential revenue per connection rose to $67.50.

• Array Q1 2026 operating revenues were $52 million, up 93% year-over-year; adjusted EBITDA was $62 million, up from $21 million in Q1 2025.

• Net income attributable to shareholders was $179.8 million, up from $4.7 million year-over-year.

• Capital expenditures for TDS Telecom were $126 million in Q1, more than double Q1 2025, reflecting higher construction activity.

Outlook and guidance

• TDS Telecom 2026 guidance: operating revenues $1,015–$1,055 million, adjusted EBITDA $310–$350 million, capital expenditures $550–$600 million for 200,000–250,000 new fiber addresses.

• Array 2026 guidance: operating revenues $200–$215 million, adjusted EBITDA $200–$215 million, capital expenditures $25–$35 million; guidance ranges wider due to T-Mobile MLA uncertainty.

• Revenue expected to decline in future periods as interim T-Mobile leases terminate.

• Board expects to declare a special dividend upon closure of the Verizon spectrum transaction.