Revenue plunged 94.1% YoY to $54.1M in 2026Q2, with operating margins of 7.4% masking a -30.2% TTM operating margin and net income inflated by one-time gains.
Array Digital Infrastructure Inc (AD) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Revenue | 213.53M | 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 % | -94.23% | -95.68% | -3.48% | -6.31% | 1.14% | 2.11% | 0.37% | 1.39% | 1.98% | -2.51% | -1.02% | 3.54% | - |
| Cost of Revenue | 125.78M | 127.75M | 1.63B | 1.73B | 1.97B | 1.91B | 1.79B | 1.78B | 1.79B | 1.8B | 1.84B | 1.83B | 1.96B |
| Gross Profit | 87.75M | 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 % | 41.1% | 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 | -320.04M | 84.44M | 2.15B | 2.04B | 2.13B | 2.04B | 2.07B | 2.13B | 2.02B | 2.39B | 2.1B | 1.86B | 2.07B |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 459.09M | -968K | 653M | 795M | 769M | 848M | 856M | 814M | 798M | 311M | 666M | 954M | 463M |
| EBITDA Margin % | 215% | -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 % | -28.15% | -100.15% | -17.86% | 3.38% | -9.32% | -0.93% | 5.16% | 2% | 156.59% | -53.3% | -30.19% | 106.05% | - |
| Depreciation & Amortization | 51.3M | 48.26M | 665M | 656M | 700M | 678M | 683M | 702M | 640M | 615M | 618M | 607M | 606M |
| D&A / Revenue % | 24.03% | 29.62% | 17.64% | 16.79% | 16.79% | 16.45% | 16.92% | 17.45% | 16.13% | 15.81% | 15.49% | 15.06% | 15.57% |
| Operating Income (EBIT) | 407.79M | -49.23M | -12M | 139M | 69M | 170M | 173M | 112M | 158M | -304M | 48M | 347M | -143M |
| Operating Margin % | 190.98% | -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% | - |
| Interest Expense | 4M | 28.22M | 183M | 196M | 163M | 175M | 104M | 93M | 101M | 105M | 107M | 84M | 45M |
| Interest Coverage | - | 6.00x | 0.88x | 1.57x | 1.44x | 2.03x | 1.86x | 1.40x | 1.49x | 0.57x | 0.48x | 1.21x | -5.96x |
| Interest / Revenue % | 1.87% | 17.32% | 4.85% | 5.02% | 3.91% | 4.25% | 2.58% | 2.31% | 2.55% | 2.7% | 2.68% | 2.08% | 1.16% |
| Non-Operating Income | 4M | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 |
| Pretax Income | 798.05M | 141.12M | -22M | 111M | 72M | 180M | 250M | 185M | 215M | -272M | 82M | 404M | -59M |
| Pretax Margin % | 373.74% | 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 | 128.9M | -31.15M | 10M | 53M | 37M | 20M | 17M | 52M | 51M | -287M | 33M | 157M | -12M |
| Effective Tax Rate % | 16.15% | -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 | 778.06M | 290.92M | -39M | 54M | 30M | 155M | 229M | 127M | 150M | 12M | 48M | 241M | -43M |
| Net Margin % | 364.38% | 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 % | 3212.24% | 845.95% | -172.22% | 80% | -80.65% | -32.31% | 80.31% | -15.33% | 1150% | -75% | -80.08% | 660.47% | - |
| EPS (Diluted) | 8.99 | 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 % | 3096.67% | 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 | 86.51M | 87.29M | 86M | 87M | 86M | 87M | 87M | 88M | 87M | 86M | 85M | 85M | 84M |
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.
Key Metrics
Top Statement Risk
Dependence on asset sales
Metrics are mathematically derived from official filings.
Revenue Collapse Post-Divestiture
Revenue plunged 95.7% year-over-year to $162.96M TTM, reflecting the T-Mobile divestiture. According to the latest quarterly data, 2026Q2 revenue was $54.1M, down 94.1% from the prior year.
The revenue trajectory is not a typical utility rate case cycle but a structural shift from wireless service revenue to tower leasing. The remaining revenue base is small and likely recurring, but the transition is incomplete. Investors should monitor whether tower rental income stabilizes and grows through tenancy additions, as the current level is insufficient to cover operating costs.
Negative Operating Margins Persist
Operating margin was -30.2% TTM, with 2026Q2 at 7.4% but 2025Q3 at -13.3%. As reported in the income statement, the core tower business remains unprofitable on an operating basis, despite a one-time net gain.
The negative operating margin indicates that the company has not yet right-sized its cost structure to the post-divestiture revenue base. The gross margin of 21.6% is far below the 60-80% typical of tower peers, suggesting legacy costs or unfavorable lease terms. The path to profitability depends on cost rationalization and tenancy growth, but the timeline is uncertain.
Legacy Costs Weigh on Margins
Gross margin of 21.6% TTM is significantly lower than pure-play tower companies, indicating lingering carrier-related costs. Based on the latest financials, operating expenses remain high relative to the shrunken revenue base.
The cost structure is transitioning from a high-variable-cost wireless model to a high-fixed-cost infrastructure model. The company must shed legacy retail costs and achieve multi-tenant tower utilization to approach industry-standard margins. Until then, operating losses may persist, and the recovery of these costs is not guaranteed by any regulatory mechanism.
Earnings Distorted by One-Time Gains
Net margin of 178.5% TTM is misleading, driven by a one-time gain from the sale of wireless assets. According to the quarterly data, 2026Q2 net income of $358.7M includes significant non-operating items, masking underlying operational weakness.
The reported net income is not indicative of sustainable earnings power. The company's core operations are loss-making, and the positive net income is largely due to asset monetization. Analysts should adjust for discontinued operations and one-time gains to assess the true earning potential of the tower portfolio. The sustainability of earnings is questionable without recurring operational profitability.
CAPEX Not Yet Translating to EPS
Despite a 10.9% EPS growth in 2026Q2, the underlying business is contracting, with revenue down 94.1% year-over-year. As reported in the financial statements, D&A of $14.4M in 2026Q2 is minimal, suggesting limited new investment in the tower base.
The capital expenditure cycle appears to be in a maintenance phase rather than a growth phase. The company is not investing heavily in new towers, and the existing asset base is not generating sufficient operating income to support EPS growth. Future EPS growth will depend on increasing tenancy ratios and possibly selective capital projects, but the current trajectory is not encouraging.
Divestiture Marks a New Era
The sale of wireless operations to T-Mobile is the key inflection, causing a 95.7% revenue decline and a one-time net gain. Based on the data, 2025Q2 revenue was $916M, collapsing to $47.1M in 2025Q3, signaling the completion of the divestiture.
This strategic pivot from an integrated carrier to an infrastructure provider fundamentally changes the earnings profile. The company now relies on tower leasing and spectrum monetization, with a heavy dependence on T-Mobile as a tenant. The durability of this new model is unproven, and the company must demonstrate it can achieve profitability without the scale of its former operations.
Asset Sales Mask Core Weakness
The positive net income and EPS beat in 2026Q2 are largely due to spectrum sales, not operational improvements. As reported in the latest quarter, operating income was $399.3M, but this includes gains from asset disposals, while the core tower business remains unprofitable.
The market may be overestimating the sustainability of earnings if it focuses on headline net income. The company's reliance on non-recurring asset sales to generate profits is a red flag. If spectrum monetization opportunities diminish, the company could face significant losses. Investors should scrutinize the recurring cash flow from tower operations and the pace of cost reduction to justify any valuation premium.