ARRAY DIGITAL INFRASTRUCTURE, INC.
For the period ended Jun 30, 2025. Filed Aug 11, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 11, 2025
Contents
Financial Overview Array
The following discussion and analysis compares financial results for the three and six months ended June 30, 2025, to the three and six months ended June 30, 2024. The financial results include the wireless operations that were sold to T-Mobile on August 1, 2025.
| Three Months EndedJune 30, · Six Months EndedJune 30, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 vs. 2024 | 2025 | 2024 | 2024 vs. 2023 | |
| (Dollars in millions) | ||||||
| Operating Revenues | ||||||
| Wireless | $888 | $902 | (1)% | $1,751 | $1,826 | (4)% |
| Towers | 62 | 58 | 7% | 123 | 116 | 6% |
| Intra-company eliminations | (34) | (33) | (3)% | (67) | (65) | (3)% |
| Total operating revenues | 916 | 927 | (1)% | 1,807 | 1,877 | (4)% |
| Operating expenses | ||||||
| Wireless | 874 | 885 | (1)% | 1,717 | 1,779 | (3)% |
| Towers | 41 | 39 | 5% | 81 | 75 | 8% |
| Intra-company eliminations | (34) | (33) | (3)% | (67) | (65) | (3)% |
| Total operating expenses | 881 | 891 | (1)% | 1,731 | 1,789 | (3)% |
| Operating income | 35 | 36 | (4)% | 76 | 88 | (13)% |
| Other income (expense) | ||||||
| Equity in earnings of unconsolidated entities | 42 | 38 | 8% | 78 | 80 | (3)% |
| Interest and dividend income | 4 | 3 | 12% | 6 | 6 | 15% |
| Interest expense | (45) | (45) | 5% | (84) | (91) | 7% |
| Total other income (expense) | 1 | (4) | N/M | — | (5) | 99% |
| Income before income taxes | 36 | 32 | 13% | 76 | 83 | (9)% |
| Income tax expense | 4 | 14 | (73)% | 24 | 41 | (42)% |
| Net income | 32 | 18 | 77% | 52 | 42 | 24% |
| Less: Net income attributable to noncontrolling interests, net of tax | 1 | 1 | (5)% | 2 | 7 | (68)% |
| Net income attributable to Array shareholders | $31 | $17 | 80% | $50 | $35 | 41% |
| Adjusted OIBDA (Non-GAAP)1 | $208 | $227 | (9)% | $422 | $456 | (7)% |
| Adjusted EBITDA (Non-GAAP)1 | $254 | $268 | (6)% | $506 | $542 | (7)% |
| Capital expenditures2 | $80 | $165 | (52)% | $132 | $295 | (55)% |
2 Refer to Liquidity and Capital Resources within this MD&A for additional information on Capital expenditures.
Refer to individual segment discussions in this MD&A for additional details on operating revenues and expenses at the segment level.
Equity in earnings of unconsolidated entities
Equity in earnings of unconsolidated entities represents Array’s share of net income from entities in which it has a noncontrolling interest and that are accounted for using the equity method or the net asset value practical expedient. Array’s investment in the Los Angeles SMSA Limited Partnership (LA Partnership) contributed pre-tax income of $20 million and $17 million for the three months ended June 30, 2025 and 2024, respectively and $35 million and $33 million for the six months ended June 30, 2025 and 2024, respectively. See Note 7 — Investments in Unconsolidated Entities in the Notes to Consolidated Financial Statements for additional information.
Interest expense
Interest expense decreased for the three and six months ended June 30, 2025 due primarily to a decrease in the average principal balance outstanding on the term loan and receivables securitization agreements, partially offset by lower capitalized interest. See Market Risk for additional information regarding maturities of long-term debt and weighted average interest rates.
Income tax expense
Income tax expense decreased for the three and six months ended June 30, 2025, due primarily to excess stock compensation deductions for awards vesting in the current period.
On July 4, 2025, H.R.1 – the One big beautiful bill Act (OBBBA) was enacted into law. The OBBBA makes several impactful changes, including 100% bonus depreciation for qualifying assets, domestic research cost expensing, and increasing the business interest expense limitation threshold. Array expects these changes to result in favorable deferral of cash taxes in future periods.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.