Cash flow conversion remains inconsistent, with AFFO falling to $217.7M in 2026Q1, resulting in a dividend payout ratio relative to AFFO of 0.51.
| 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 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 1.25B | 1.29B | 1.33B | 1.54B | 1.29B | 1.19B | 1.13B | 984.89M | 852.14M | 819.61M | 729.03M | 737.17M | 684.66M | 496.81M | 343.21M | 249.06M | 201.16M | 222.56M | 173.7M | 122.93M | 75.96M | 49.77M | 14.22M | -29.81M | 1.55M | 13M | 47.52M | 23.1M | 7.5M |
| Operating CF Growth % | -26.4% | -3.26% | -13.57% | 20.12% | 8.05% | 5.67% | 14.33% | 15.58% | 3.97% | 12.42% | -1.11% | 7.67% | 37.81% | 44.75% | 37.8% | 23.81% | -9.62% | 28.13% | 41.29% | 61.84% | 52.63% | 250.08% | 147.69% | -2018.15% | -88.05% | -72.64% | 105.7% | 208% | - |
| Operating CF / Revenue % | 43.63% | 45.87% | 49.82% | 56.96% | 48.82% | 51.54% | 54.05% | 48.89% | 45.67% | 47.44% | 44.64% | 44.99% | 44.84% | 38.07% | 35.97% | 35.67% | 32.1% | 40.06% | 36.57% | 30.12% | 21.63% | 19.14% | 6.14% | -14.06% | 0.59% | 5.35% | 28.3% | 26.55% | 12.69% |
| Net Income | 1.02B | 1.03B | 748.68M | 501.81M | 459.8M | 237.62M | 24.05M | 147.28M | 47.45M | 103.65M | 76.24M | -175.65M | -24.3M | -55.91M | -183.69M | -126.89M | -194.42M | -141.12M | -46.76M | -77.88M | -133.45M | -94.71M | -147.28M | -172.17M | -273.17M | -125.14M | -28.92M | -33.4M | -19.9M |
| Depreciation & Amortization | 308.55M | 292.29M | 269.52M | 736.51M | 707.58M | 700.16M | 721.97M | 697.08M | 672.11M | 643.1M | 638.19M | 660.02M | 627.07M | 533.33M | 408.47M | 309.15M | 278.73M | 258.54M | 211.44M | 177.2M | 149.15M | 115.96M | 120.7M | 94.72M | 135.71M | 80.47M | 34.83M | 38.6M | 21.6M |
| Stock-Based Compensation | 78.96M | 75.73M | 74.37M | 87.92M | 99.91M | 84.4M | 68.89M | 73.21M | 42.33M | 38.25M | 32.92M | 28.75M | 22.67M | 17.21M | 13.97M | 11.47M | 10.5M | 8.2M | 7.21M | 0 | 5.41M | 462K | 470K | 832K | 2.02M | 3.33M | 0 | 0 | 0 |
| Other Non-Cash Items | -44.23M | 77.43M | 398.44M | 149.05M | 98.64M | 211.21M | 327.22M | 41.33M | 125.85M | 28.33M | 30.44M | 249.97M | 90.66M | 60.24M | 138.14M | 80.75M | 124.25M | 70.45M | -6.18M | 22.75M | 56.61M | 29.82M | 49.3M | 60.51M | 158.44M | -73.57M | 27.98M | 700K | 100K |
| Working Capital Changes | -206.77M | -179.63M | -143.06M | 64.47M | -113.12M | -34.98M | 47.09M | 10.05M | -46.91M | -28.53M | -50.18M | -25.91M | -31.98M | -51.4M | -35.04M | -23.73M | -17.17M | 26.76M | 7.83M | 263K | -1.8M | -1.29M | -8.51M | -12.86M | -19.43M | 127.94M | 13.62M | 17.2M | 1.5M |
| Cash from Investing | -1.14B | -601.83M | -809.31M | -468.25M | -1.39B | -1.42B | -446.37M | -947.02M | -618.35M | -606.24M | -428.25M | -734.52M | -1.78B | -825.75M | -2.28B | -507.89M | -425.04M | -229.07M | -580.55M | -301.88M | -739.88M | -99.28M | 1.33M | 155.46M | -98.01M | -530.27M | -445.28M | -208.9M | -138.1M |
| Acquisitions (Net) | -103.72M | 0 | -299.81M | -129.96M | -1.18B | -1.26B | -271.42M | -773.82M | -451.83M | -441.55M | -276.85M | -609.53M | -1.59B | -686.73M | -2.16B | -379.32M | -328.05M | -180.8M | -584.5M | -201.47M | -725.53M | -61.33M | -1.79M | -3.13M | 0 | -530.27M | -445.28M | 0 | 0 |
| Purchase of Investments | -775.07M | -1.17B | -1.8B | -1.34B | -881.78M | -1.73B | -1.29B | -638.96M | -156.98M | -1.37M | -490K | -7.79M | 0 | 802K | 0 | -6.33M | -36.87M | -9.16M | 51K | -208.25M | 265K | -34.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 413.86M | 1.4B | 1.54B | 1.34B | 878.14M | 1.73B | 1.24B | 625.81M | 150.89M | 231K | 712K | 89.73M | 0 | 26M | 0 | 4.58M | 7.11M | 980K | 41.04M | 137.55M | 19.9M | 15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -50.48M | 443.87M | -17.42M | -19.3M | 524K | -31.23M | 3.12M | -5.81M | -10.61M | -15.38M | -11.64M | 1.78M | 23.13M | 2.27M | -3.13M | 119K | -617K | 6.65M | -980K | -1.95M | -5.54M | 1.32M | 10.33M | 173.72M | 5.37M | -530.27M | 0 | 0 | 0 |
| Cash from Financing | -451.05M | -1.66B | 645.74M | -1.02B | -135.47M | 339.26M | -469.02M | -62.31M | -148.54M | -294.57M | -802.62M | 75.75M | 996.84M | 220.16M | 2.12B | 242.05M | 126.82M | 88.98M | 415.44M | 203.07M | 664.13M | 25.82M | 45.75M | -178.45M | 143.69M | 516.2M | 409.61M | 162.1M | 151.3M |
| Dividends Paid | -491.93M | -479.01M | -424.19M | -369.96M | -306.77M | -253.58M | -207.69M | -83.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Common Dividends | -491.93M | -479.01M | -424.19M | -369.96M | -306.77M | -253.58M | -207.69M | -83.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 4M | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K |
| Share Repurchases | -497.81M | -497.81M | -200.02M | -100.01M | -431.67M | -582.58M | -859.34M | -466.98M | -795.58M | -854.53M | -545.69M | -450.07M | 0 | 0 | 0 | -225.07M | -107.43M | -51.72M | -120M | -91.24M | -707K | 0 | 0 | -296.93M | 0 | 0 | 0 | -32.8M | 0 |
| Other Financing | 16.87M | -29.31M | 29.76M | -7.25M | 57.07M | 73.86M | -202.28M | 90.6M | 55.36M | 49.09M | 8.39M | -138.16M | -19.58M | 98.17M | -5.79M | 14.1M | 11.83M | 98.11M | 52.92M | 22.31M | -27.26M | 390.17M | 0 | -936K | 11.55M | 0 | 0 | -14.5M | -6.3M |
| Net Change in Cash | -331.62M | -964.12M | 1.15B | 61.66M | -246.34M | 92.82M | 201.69M | -37.18M | 74M | -81.67M | 67.93M | 78.6M | -82.67M | -110.99M | 185.78M | -16.94M | -97.06M | 82.46M | 8.58M | 24.12M | 214K | -23.69M | 61.29M | -52.8M | 47.24M | -1.08M | 11.85M | -23.6M | 151.3M |
| Exchange Rate Effect | 11.09M | 9.95M | -21.59M | 2.73M | -2.92M | -13.1M | -8.96M | -12.74M | -11.26M | -464K | 14.07M | -12.99M | 13.98M | -2.21M | 1.21M | -155K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 130.6M |
| Cash at Beginning | 437.02M | 1.4B | 250.95M | 189.28M | 435.63M | 342.81M | 141.12M | 178.3M | 104.3M | 185.97M | 118.04M | 39.44M | 122.11M | 233.1M | 47.32M | 64.25M | 161.32M | 78.86M | 70.27M | 46.15M | 45.93M | 69.63M | 8.34M | 61.14M | 13.9M | 14.98M | 3.13M | 26.7M | 6.1M |
| Cash at End | 332.51M | 432.37M | 1.4B | 250.95M | 189.28M | 435.63M | 342.81M | 141.12M | 178.3M | 104.3M | 185.97M | 118.04M | 39.44M | 122.11M | 233.1M | 47.32M | 64.25M | 161.32M | 78.86M | 70.27M | 46.15M | 45.93M | 69.63M | 8.34M | 61.14M | 13.9M | 14.98M | 3.1M | 157.4M |
| Free Cash Flow | 1.02B | 1.07B | 1.11B | 1.31B | 1.07B | 1.06B | 997.47M | 830.66M | 702.33M | 671.43M | 589.04M | 528.47M | 473.41M | 328.72M | 229.94M | 122.12M | 134.54M | 175.81M | 137.53M | 95.16M | 46.99M | 30.12M | 7M | -44.94M | -101.83M | 13M | 47.52M | -185.8M | -130.6M |
| FCF Growth % | -9.5% | -3.63% | -15.37% | 22.07% | 1.42% | 5.89% | 20.08% | 18.27% | 4.6% | 13.99% | 11.46% | 11.63% | 44.02% | 42.96% | 88.29% | -9.23% | -23.48% | 27.84% | 44.52% | 102.51% | 56.02% | 330.15% | 115.58% | 55.86% | -883.27% | -72.64% | 125.57% | -42.27% | - |
| FCF / Revenue % | 35.67% | 37.88% | 41.3% | 48.23% | 40.68% | 45.75% | 47.88% | 41.23% | 37.64% | 38.86% | 36.07% | 32.25% | 31% | 25.19% | 24.1% | 17.49% | 21.47% | 31.65% | 28.96% | 23.31% | 13.38% | 11.58% | 3.02% | -21.19% | -38.47% | 5.35% | 28.3% | -213.56% | -220.98% |
Elevated carrier churn headwinds
Based on the company's reported financial statements, the dividend payout ratio relative to AFFO has fluctuated significantly, reaching 0.51 in 2026Q1, which suggests that while the dividend remains covered, the margin of safety is narrowing as AFFO volatility persists across recent reporting periods.
The variability in AFFO, which dropped to 217.7M in 2026Q1 from a 2025Q3 peak of 253.6M, indicates that the company's ability to sustain dividend growth may be constrained by operational headwinds. Investors should monitor whether this payout ratio trend reflects a permanent shift in cash generation capacity or merely temporary timing differences in leasing activity.
As reported in recent SEC filings, the company's recurring capital expenditures, including tenant improvements and leasing commissions, appear to be exerting consistent pressure on free cash flow, with maintenance-related outflows remaining a critical component of the gap between FFO and the final AFFO figure.
The persistent need for capital reinvestment to secure and maintain tenant leases suggests that the company's cash flow is sensitive to the pace of carrier network upgrades. This ongoing requirement for capital deployment may limit the amount of discretionary cash available for debt reduction or shareholder returns in the near term.
According to the provided financial data, the divergence between GAAP Net Income and FFO remains substantial, with FFO/NI ratios reaching as high as 3.95 in 2023Q4, highlighting the significant impact of non-cash depreciation charges on the company's reported earnings profile.
This wide gap confirms that GAAP Net Income is an unreliable metric for assessing the company's true cash-generating potential. Analysts should continue to prioritize FFO and AFFO as the primary indicators of performance, as these metrics better reflect the underlying cash flow reality of the tower leasing business.
Based on the quarterly cash flow data, the conversion of GAAP operating cash flow into FFO has shown inconsistency, with the FFO/NI ratio fluctuating significantly, which may indicate that working capital changes and non-cash adjustments are creating noise in the company's reported cash flow metrics.
The volatility in the relationship between operating cash flow and FFO suggests that investors should be cautious when interpreting short-term cash flow trends. It appears that the company's cash conversion quality is heavily influenced by the timing of lease payments and the accounting treatment of long-term contracts.
Quick answers to the most common questions about buying SBAC stock.
SBA Communications Corporation (SBAC) generated $1.29B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SBA Communications Corporation (SBAC) generated $1.07B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
SBA Communications Corporation (SBAC) spent $1.28B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, SBA Communications Corporation (SBAC) returned $479.0M to shareholders via cash dividends and spent $497.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.