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Array Digital Infrastructure
(NYSE:AD)
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Rating:60Neutral
Price Target:
$36.00
▲(0.39% Upside)
Action:Reiterated
Date:09/07/26
The score is primarily held back by financial quality concerns—especially the sharp revenue collapse and negative operating/free cash flow in TTM—despite strong reported profitability and improved leverage. Technicals are supportive but look overbought, while valuation is a key positive due to the very low P/E.
Positive Factors
Improved Profitability
The sharp improvement in operating and net margins indicates stronger reported earnings power than in prior years. If maintained, better profitability can support reinvestment, strengthen resilience, and improve returns, although its durability depends on stabilizing revenue.
Negative Factors
Severe Revenue Contraction
An approximately 80% revenue decline is a major threat to the durability of the business model and reported earnings. Shrinking scale can weaken operating leverage, reduce reinvestment capacity, and make recent profitability harder to sustain over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
The sharp improvement in operating and net margins indicates stronger reported earnings power than in prior years. If maintained, better profitability can support reinvestment, strengthen resilience, and improve returns, although its durability depends on stabilizing revenue.
Read all positive factors
Array Digital Infrastructure (AD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.92B
Dividend Yield110.32%
Average Volume (3M)255.81K
Price to Earnings (P/E)3.8
Beta (1Y)0.66
Revenue Growth-94.23%
EPS GrowthN/A
CountryUS
Employees60
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)9.01
Shares Outstanding53,500,000
10 Day Avg. Volume324,945
30 Day Avg. Volume255,814
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.79
Price to Sales (P/S)28.27
P/FCF Ratio26.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$41.42Price Target Upside15.51% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)4.83
Revenue Forecast (FY)$210.36M
Array Digital Infrastructure Business Overview & Revenue Model
Company Description
Array Digital Infrastructure, Inc. owns and operates shared wireless communications infrastructure in the United States. The company deploys 5G and other wireless technologies through its 4,400 cell towers. It also leases tower space to tenants. I...
Array Digital Infrastructure Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call highlighted meaningful operational progress and strategic momentum: record fiber build velocity (40,000 addresses in Q1), strong fiber customer growth (+32% net adds) and fiber revenue (+13%), solid tower rental growth for Array (55%–64% normalized) and substantial spectrum monetization progress (~70% monetized). Management reiterated disciplined capital allocation (Granite State tuck-in, $520M buyback authorization) and a $100M cost-savings target by 2028 with early benefits appearing in 2026. Offsetting these positives are persistent legacy revenue pressures (cable -10%, total revenues -3%), modest adjusted EBITDA decline (-3%), uncertainty and reserves related to DISH nonpayment at Array, and ongoing wind-down/transition costs that compress near-term margins and widen guidance ranges. On balance, the operational wins, growth in fiber and tower cash rents, advance on spectrum monetization, and strategic M&A/structural proposal outweigh the short-term transitional headwinds.Positive Updates
All-Stock Proposal to Acquire Remaining Array Digital Infrastructure Shares
TDS proposed to acquire the remaining public shares of Array Digital Infrastructure in an all-stock merger at an exchange ratio of 0.86 TDS shares per Array share (assuming $10.40 per share dividend from spectrum monetization), aimed at simplifying corporate structure, eliminating duplicative costs, increasing share liquidity and strengthening capital structure.
Negative Updates
Overall Revenue and Adjusted EBITDA Declines
TDS total operating revenues declined 3% in Q1 (1% decline excluding divestitures). Adjusted EBITDA declined 3% year over year, largely driven by revenue losses from divested copper-heavy markets.
Read all updates
Q1-2026 Updates
Positive
Negative
All-Stock Proposal to Acquire Remaining Array Digital Infrastructure Shares
TDS proposed to acquire the remaining public shares of Array Digital Infrastructure in an all-stock merger at an exchange ratio of 0.86 TDS shares per Array share (assuming $10.40 per share dividend from spectrum monetization), aimed at simplifying corporate structure, eliminating duplicative costs, increasing share liquidity and strengthening capital structure.
Read all positive updates
Company Guidance
The companies reiterated unchanged 2026 guidance: TDS Telecom projects total telecom revenues of $1.015 billion to $1.055 billion (with current copper/cable headwinds biasing toward the lower half), adjusted EBITDA of $310 million to $350 million, and capital expenditures of $550 million to $600 million to fund a plan to deliver 200,000–250,000 new fiber service addresses (after delivering 40,000 in Q1 and serving ~1.1 million fiber addresses today); Array Digital Infrastructure said its guidance for total operating revenue, adjusted EBITDA, OIBDA and capital expenditures is also unchanged (with wider-than-normal ranges due to T‑Mobile MLA timing and interim site uncertainty).Array Digital Infrastructure Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 213.53M | 162.96M | 3.77B | 3.91B | 4.17B | 4.12B |
| Gross Profit | 87.75M | 35.21M | 2.14B | 2.18B | 2.20B | 2.21B |
| EBITDA | 888.24M | 217.60M | 826.00M | 963.00M | 935.00M | 1.03B |
| Net Income | 778.06M | 290.92M | -39.00M | 54.00M | 30.00M | 155.00M |
Balance Sheet | ||||||
| Total Assets | 3.37B | 4.94B | 10.45B | 10.75B | 11.12B | 10.34B |
| Cash, Cash Equivalents and Short-Term Investments | 416.44M | 113.40M | 144.00M | 150.00M | 273.00M | 156.00M |
| Total Debt | 1.20B | 1.71B | 3.82B | 4.03B | 4.18B | 3.75B |
| Total Liabilities | 2.10B | 2.37B | 5.84B | 6.10B | 6.54B | 5.77B |
| Stockholders Equity | 1.27B | 2.57B | 4.58B | 4.63B | 4.55B | 4.55B |
Cash Flow | ||||||
| Free Cash Flow | -202.98M | 173.64M | 326.00M | 128.00M | -355.00M | -1.24B |
| Operating Cash Flow | -303.15M | 200.84M | 883.00M | 866.00M | 832.00M | 802.00M |
| Investing Cash Flow | 4.75B | 2.44B | -556.00M | -721.00M | -1.18B | -2.04B |
| Financing Cash Flow | -4.44B | -2.68B | -347.00M | -274.00M | 456.00M | 142.00M |
Array Digital Infrastructure Technical Analysis
Negative
35.86
Price Trends
35.82
Negative
37.00
Negative
37.28
Negative
Market Momentum
-0.73
Positive
35.21
Neutral
22.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AD, the sentiment is Negative. The current price of 35.86 is below the 20-day moving average (MA) of 36.35, above the 50-day MA of 35.82, and below the 200-day MA of 37.28, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 35.21 is Neutral, neither overbought nor oversold. The STOCH value of 22.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AD.
Array Digital Infrastructure Risk Analysis
Array Digital Infrastructure disclosed 22 risk factors in its most recent earnings report. Array Digital Infrastructure reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Array Digital Infrastructure Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $2.92B | 3.81 | 37.85% | 110.32% | -94.23% | ― | |
59 Neutral | $428.52M | 2.67 | 34.33% | 4.03% | 2.02% | ― | |
58 Neutral | $2.83B | 20.33 | -74.58% | ― | -10.28% | 27.67% | |
47 Neutral | $398.97M | -4.60 | 140.52% | 0.97% | -4.54% | 79.01% | |
47 Neutral | $621.19M | -13.87 | -4.77% | 0.99% | 5.01% | -23.53% | |
43 Neutral | $965.55M | -100.34 | -4.89% | 1.26% | 5.88% | ― |
* Communication Services Sector Average
AD
Array Digital Infrastructure
34.17
1.22
3.71%
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CCOI
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8.23
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SHEN
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11.15
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-14.89%
SIFY
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13.10
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IHS
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22.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.