Revenue plummeted 94.2% in 2026Q1 as the company pivoted to infrastructure, with gross margins compressing to 34.2% from historical levels exceeding 50%.
| Sales/Revenue | 1.08B | 162.96M | 3.77B | 3.91B | 4.17B | 4.12B | 4.04B | 4.02B | 3.97B | 3.89B | 3.99B | 4.03B | 3.89B |
| Revenue Growth % | -71.02% | -95.68% | -3.48% | -6.31% | 1.14% | 2.11% | 0.37% | 1.39% | 1.98% | -2.51% | -1.02% | 3.54% | - |
| Cost of Goods Sold | 494.28M | 127.75M | 1.63B | 1.73B | 1.97B | 1.91B | 1.79B | 1.78B | 1.79B | 1.8B | 1.84B | 1.83B | 1.96B |
| COGS % of Revenue | - | 78.39% | 43.24% | 44.24% | 47.28% | 46.29% | 44.41% | 44.36% | 45.1% | 46.35% | 46.14% | 45.35% | 50.42% |
| Gross Profit | 581.18M | 35.21M | 2.14B | 2.18B | 2.2B | 2.21B | 2.24B | 2.24B | 2.18B | 2.09B | 2.15B | 2.2B | 1.93B |
| Gross Margin % | 54.04% | 21.61% | 56.76% | 55.76% | 52.72% | 53.71% | 55.59% | 55.64% | 54.9% | 53.65% | 53.86% | 54.65% | 49.58% |
| Gross Profit Growth % | - | -98.35% | -1.74% | -0.91% | -0.72% | -1.34% | 0.27% | 2.75% | 4.36% | -2.89% | -2.45% | 14.15% | - |
| Operating Expenses | 537.65M | 84.44M | 2.15B | 2.04B | 2.13B | 2.04B | 2.07B | 2.13B | 2.02B | 2.39B | 2.1B | 1.86B | 2.07B |
| OpEx % of Revenue | - | 51.82% | 57.08% | 52.2% | 51.07% | 49.59% | 51.3% | 52.86% | 50.92% | 61.47% | 52.66% | 46.04% | 53.25% |
| Selling, General & Admin | 376.65M | 84.44M | 1.33B | 1.37B | 1.41B | 1.34B | 1.37B | 1.41B | 1.39B | 1.41B | 1.48B | 1.49B | 1.59B |
| SG&A % of Revenue | - | 51.82% | 35.28% | 35.02% | 33.77% | 32.63% | 33.89% | 34.96% | 34.99% | 36.3% | 37.09% | 37.06% | 40.89% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 43.53M | -49.23M | -12M | 139M | 69M | 170M | 173M | 112M | 158M | -304M | 48M | 347M | -143M |
| Operating Margin % | 4.05% | -30.21% | -0.32% | 3.56% | 1.66% | 4.12% | 4.29% | 2.78% | 3.98% | -7.81% | 1.2% | 8.61% | -3.67% |
| Operating Income Growth % | - | -310.25% | -108.63% | 101.45% | -59.41% | -1.73% | 54.46% | -29.11% | 151.97% | -733.33% | -86.17% | 342.66% | - |
| EBITDA | 243.4M | -968K | 653M | 795M | 769M | 848M | 856M | 814M | 798M | 311M | 666M | 954M | 463M |
| EBITDA Margin % | 22.63% | -0.59% | 17.32% | 20.35% | 18.45% | 20.57% | 21.2% | 20.24% | 20.12% | 7.99% | 16.69% | 23.67% | 11.89% |
| EBITDA Growth % | -62.09% | -100.15% | -17.86% | 3.38% | -9.32% | -0.93% | 5.16% | 2% | 156.59% | -53.3% | -30.19% | 106.05% | - |
| D&A (Non-Cash Add-back) | 199.87M | 48.26M | 665M | 656M | 700M | 678M | 683M | 702M | 640M | 615M | 618M | 607M | 606M |
| EBIT | 151.85M | -49.23M | 161M | 307M | 235M | 355M | 193M | 130M | 150M | 60M | 51M | 102M | -268M |
| Net Interest Income | -52.24M | -9.3M | -171M | -186M | -155M | -169M | -104M | -93M | -101M | -105M | -107M | -84M | -45M |
| Interest Income | 20.78M | 18.92M | 12M | 10M | 8M | 6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 380.74M | 141.12M | -22M | 111M | 72M | 180M | 250M | 185M | 215M | -272M | 82M | 404M | -59M |
| Pretax Margin % | 35.4% | 86.6% | -0.58% | 2.84% | 1.73% | 4.37% | 6.19% | 4.6% | 5.42% | -6.99% | 2.06% | 10.02% | -1.52% |
| Income Tax | 17.03M | -31.15M | 10M | 53M | 37M | 20M | 17M | 52M | 51M | -287M | 33M | 157M | -12M |
| Effective Tax Rate % | 4.47% | -22.07% | -45.45% | 47.75% | 51.39% | 11.11% | 6.8% | 28.11% | 23.72% | 105.51% | 40.24% | 38.86% | 20.34% |
| Net Income | 450.36M | 290.92M | -39M | 54M | 30M | 155M | 229M | 127M | 150M | 12M | 48M | 241M | -43M |
| Net Margin % | 41.88% | 178.52% | -1.03% | 1.38% | 0.72% | 3.76% | 5.67% | 3.16% | 3.78% | 0.31% | 1.2% | 5.98% | -1.1% |
| Net Income Growth % | 1254.78% | 845.95% | -172.22% | 80% | -80.65% | -32.31% | 80.31% | -15.33% | 1150% | -75% | -80.08% | 660.47% | - |
| Net Income (Continuing) | 363.71M | 172.27M | -32M | 58M | 35M | 160M | 233M | 133M | 164M | 15M | 49M | 247M | -47M |
| Discontinued Operations | -983K | 121.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 6.16M | 6.93M | 31M | 28M | 28M | 27M | 25M | 24M | 21M | 11M | 12M | 11M | 11.76M |
| EPS (Diluted) | 5.21 | 3.33 | -0.46 | 0.63 | 0.35 | 1.77 | 2.62 | 1.44 | 1.72 | 0.14 | 0.56 | 2.84 | -0.51 |
| EPS Growth % | 1253.33% | 823.91% | -173.02% | 80% | -80.23% | -32.44% | 81.94% | -16.28% | 1128.57% | -75% | -80.28% | 656.86% | - |
| EPS (Basic) | - | 3.39 | -0.45 | 0.64 | 0.35 | 1.80 | 2.66 | 1.48 | 1.74 | 0.14 | 0.56 | 2.87 | -0.51 |
| Diluted Shares Outstanding | 86.49M | 87.29M | 86M | 87M | 86M | 87M | 87M | 88M | 87M | 86M | 85M | 85M | 84M |
| Basic Shares Outstanding | 86.42M | 85.91M | 86M | 85M | 85M | 86M | 87.4M | 88.19M | 87.21M | 85.71M | 85.71M | 84.86M | 84M |
| Dividend Payout Ratio | - | 682.91% | - | - | - | - | - | - | - | - | - | - | - |
Post-divestiture revenue base instability
As reported in recent financial statements, AD's revenue plummeted by 94.2% in 2026Q1, reflecting the fundamental shift from a wireless carrier to a niche infrastructure provider following the divestiture of its core retail operations to T-Mobile, which has effectively reset the company's entire top-line growth profile.
The massive decline in revenue suggests that the company is no longer comparable to its historical performance as a wireless carrier. Investors should monitor whether the remaining tower leasing revenue can stabilize at a higher margin, as the current top-line trajectory is dominated by the loss of high-volume service fees.
Based on the provided income statement data, gross margins have compressed to 34.2% in 2026Q1 from historical levels exceeding 50%, indicating that the company has yet to fully shed the legacy cost burdens associated with its former wireless service business model.
The current margin profile appears inconsistent with pure-play tower infrastructure peers, which typically command significantly higher profitability. This suggests that lingering operational costs from the divestiture process may be masking the true underlying margin potential of the remaining physical tower assets.
According to the latest quarterly filings, AD reported an operating margin of 9.7% in 2026Q1, which, while improved from recent negative periods, highlights the difficulty of scaling corporate overhead against a significantly smaller revenue base following the strategic pivot to infrastructure.
The company's ability to achieve meaningful operating leverage appears limited by the current size of its SG&A expenses relative to its reduced revenue. Further investigation is warranted to determine if management can successfully right-size the corporate structure to align with the lower-volume, high-margin infrastructure business model.
As indicated by the 178.52% net margin reported in 2026Q1, the company's bottom-line performance is heavily skewed by non-operating gains from asset sales, which obscures the underlying profitability of the ongoing tower leasing operations and complicates standard earnings quality assessments.
The extreme volatility in net income suggests that investors should focus on adjusted metrics that exclude one-time divestiture impacts to gauge true operational health. The reliance on non-recurring items to drive net income warrants caution, as it does not reflect the sustainable earning power of the infrastructure assets.
Data from recent filings suggests that AD faces significant execution risk, as the company's transition to an infrastructure-only model is currently characterized by negative operating margins in several recent quarters and a high dependency on T-Mobile as a primary tenant for its tower assets.
Short-term observers may argue that the company's current cost structure is unsustainable without a rapid increase in tower tenancy ratios. If the company fails to attract additional carriers to its regional tower footprint, the current infrastructure-focused strategy may struggle to generate the returns necessary to justify its valuation.
Quick answers to the most common questions about buying AD stock.
For fiscal year 2025, Array Digital Infrastructure, Inc. (AD) reported total revenue of $163.0M. This represents a 95.8% decline compared to $3.89B in 2014.
Array Digital Infrastructure, Inc. (AD) is profitable, generating $290.9M in net income for the fiscal year ending 2025 with a net profit margin of 178.5%.
Array Digital Infrastructure, Inc. (AD) reported an operating income of $-49.2M, resulting in an operating profit margin of -30.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Array Digital Infrastructure, Inc. (AD) generated $35.2M in gross profit for the year, representing a gross profit margin of 21.6%. This demonstrates the company's core pricing power and production efficiency.