Array Digital's Site Revenue Growth Hits 95% as Spectrum Sales Fund Payout
Array Digital Infrastructure posted $333.8 million in net income after closing more than $1.1 billion in spectrum sales during the quarter, funding an $11.00-a-share special dividend even as a take-private bid from TDS remains under review.
Array Digital Infrastructure (AD) reported site rental revenue growth of 95% year over year in the second quarter, accelerating from 92% in the first quarter and well above the 51% pace for full-year 2025, as the tower operator's underlying leasing business kept building even while its spectrum-sale program dominated the headline numbers.
The quarter's defining feature was the scale of asset monetization layered on top of that organic growth. Array recognized a $409.8 million gain on license sales and exchanges in the quarter alone, bringing the cumulative gain to $566.5 million for the first six months of 2026, after closing a $74.8 million sale of 700MHz spectrum, an $86.4 million sale of 600MHz spectrum, and a $1 billion cellular and other spectrum sale on June 1.
Total operating revenue from continuing operations rose to $54.1 million from $28.5 million a year earlier, a 90% increase that followed 92% growth in the first quarter and a jump to $60.3 million in the fourth quarter of 2025 from $26.1 million a year prior. Net income attributable to Array shareholders reached $333.8 million, or $3.86 a share on a diluted basis, up from $14.8 million, or $0.17 a share, a year ago, and above the $179.8 million, or $2.08 a share, reported in the first quarter. Adjusted EBITDA climbed to $56.2 million from $35.9 million, and Adjusted OIBDA, a measure the company introduced after selling its T-Mobile wireless business, improved to $15.1 million from a loss of $9.5 million.
On the leasing side, tower tenancy rose to 0.98 from 0.96 in the first quarter, marking a second straight quarter of sequential improvement, and colocations increased to 4,362 from 4,290, recovering part of the decline from 4,572 at the end of 2025. Services revenue, by contrast, fell 31% year over year to $0.9 million, a segment weak spot the company had not previously flagged in its quarterly highlights. Capital expenditures from continuing operations fell to $3.9 million from $8.6 million in the first quarter and $12.9 million in the fourth quarter of 2025, even as full-year capex guidance held at $25 million to $35 million.
Array narrowed its 2026 revenue guidance to a range of $205 million to $215 million, from $200 million to $215 million, citing higher interim site rental revenue, and raised its Adjusted EBITDA guidance to $220 million to $235 million from $200 million to $215 million. The revenue recognized from DISH Wireless remained suspended after DISH disputed its obligations under the companies' master lease agreement in September 2025; DISH filed for bankruptcy in June 2026.
The spectrum proceeds funded a $11.00-a-share special dividend declared June 25, on top of $1.836 billion in dividends paid during the first half of the year, following a $10.25-a-share special dividend in February and a $23-a-share special dividend in August 2025. Cash and equivalents grew nearly fourfold to $416.4 million at June 30 from $113.4 million at the end of 2025, reflecting $2.19 billion of investing inflows from the divestitures partly offset by $1.84 billion in financing outflows tied to the dividends. Total assets fell to $3.37 billion from $4.68 billion and total equity dropped to $1.27 billion from $2.57 billion as the license sales removed spectrum assets from the balance sheet.
A non-binding take-private proposal from TDS to acquire the remaining shares of Array, first disclosed in the first-quarter release on May 8, remained under review by a special committee. Array recognized $7.4 million in strategic-alternatives-review expenses during the quarter, up from $0.7 million a year earlier.