Array Digital Infrastructure (AD) AI Stock Analysis

• Market Cap: $4.14B
• Dividend Yield: 42.91%
• Average Volume (3M): 303.38K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.67
• Revenue Growth: -25.64%
• EPS Growth: N/A
• Country: US
• Employees: 4,100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.43
• Shares Outstanding: 53,400,000
• 10 Day Avg. Volume: 206,950
• 30 Day Avg. Volume: 303,380
• PEG Ratio: -0.02
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 28.27
• P/FCF Ratio: 26.53
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 9.91
• 1Y Price Target: $56.00
• Price Target Upside: 16.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.26
• Revenue Forecast (FY): $218.49M

• Rating: 60 Neutral
• Price Target: $52.00 ▲(8.47% Upside)
• Action: Reiterated Date: 02/22/26
• Date: Action: Reiterated 02/22/26

Overall score reflects a tug-of-war between weak underlying financial performance (notably the 2025 revenue collapse and negative operating profitability) and more favorable forward-looking factors from the earnings call (material de-risking via spectrum monetization/capital returns and clearer 2026 operational targets). Supportive price trends and a mid-range P/E help, but do not fully offset the elevated fundamental uncertainty.

Positive Factors

Spectrum monetization & capital returns

Converting non-core spectrum into >$1bn cash and returning proceeds via a large special dividend materially de-risks the business. This transaction strengthens liquidity, enables debt paydown or reinvestment, and creates durable optionality for capital allocation over the next several quarters.

Stronger balance sheet flexibility

Debt repayment plus active buybacks and a large remaining repurchase authorization increase financial flexibility. Reduced leverage and available buyback capacity support capital returns and provide headroom to fund operations or strategic moves without relying solely on operating cash.

Tower portfolio scale & tenancy growth

A large tower base with many uniquely positioned sites creates durable recurring cash from colocation and high barriers to entry. Rapid YoY site rental growth and rising new colocation applications point to sustainable tenancy-driven revenue expansion and margin stability over the medium term.

Negative Factors

2025 revenue collapse & weak operating profit

A ~94% revenue decline in 2025 and negative core operating results reveal fragile underlying earnings power. Reliance on one-time items to show net profit undermines sustainable cash generation and complicates forecasting, limiting the company's ability to invest consistently or absorb shocks.

DISH MLA dispute and collection risk

An unresolved contractual dispute with DISH creates legal and cash-collection uncertainty and removes a recurring revenue stream from guidance. Multi-year payment obligations tied to the MLA mean outcomes could materially affect cash flow and revenue visibility if adverse.

Wide guidance range & execution uncertainty

A very wide near-term guidance range signals substantial timing and execution risk—chiefly T‑Mobile MLA integration and legacy wind-down costs. Persistent elevated SG&A and uncertain contract timing reduce margin predictability and make strategic planning and capital allocation harder over the next several quarters.

Array Digital Infrastructure Business Overview & Revenue Model

Company Description

Array Digital Infrastructure, Inc. provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers, as well as wireless essentials, including cases, screen protectors, chargers, and memory cards; and consumer electronics comprising Bluetooth audio, wi-fi enabled cameras, and networking products. In addition, it sells wireless devices to agents and other third-party distributors for resale; and offers option for customers to purchase devices and accessories under installment contracts. Further, the company offers wireless roaming, wireless eligible telecommunications carrier, and tower rental services. It serves consumer, business, and government customers. The company provides its products and services through retail sales, direct sales, telesales, ecommerce, resellers, and independent agents, as well as third-party national retailers. The company was formerly known as United States Cellular Corporation and changed its name to Array Digital Infrastructure, Inc. in August 2025. Array Digital Infrastructure, Inc. was incorporated in 1983 and is headquartered in Chicago, Illinois. As of Novemeber 7, 2024, Array Digital Infrastructure, Inc. operates as a subsidiary of Telephone and Data Systems, Inc.

How the Company Makes Money

Array Digital Infrastructure generates revenue primarily through its core offerings in colocation services, where clients rent space for their servers and equipment within AD's data centers. This constitutes a significant portion of their income, as it provides a steady, recurring revenue stream. Additionally, the company earns money from managed cloud services, offering clients scalable cloud solutions tailored to their specific needs, which typically involves subscription-based pricing models. Networking services, including high-speed internet access and private network solutions, also contribute to revenue, providing both one-time and ongoing fees. Partnerships with technology providers and telecom companies enhance AD's service offerings, enabling bundled solutions that attract more customers and create additional revenue opportunities. Overall, the combination of these revenue streams, along with strategic partnerships, underpins AD's financial growth.

Array Digital Infrastructure Financial Statement Overview

Summary

Financial profile is high-risk: the income statement shows a sharp 2025 revenue collapse and negative core operating profitability (EBIT negative; EBITDA slightly negative), outweighing the more stable balance sheet leverage and generally positive operating cash flow. Free cash flow turned positive but remains volatile, and reported net income appears influenced by non-operating/one-time factors.

Income Statement

Operating performance has deteriorated sharply. Revenue collapsed in 2025 (annual revenue down ~94%), and profitability weakened materially with negative EBIT and slightly negative EBITDA, despite a very high reported net profit margin that appears driven by non-operating or one-time items rather than core earnings power. Prior years (2020–2024) showed relatively stable revenue around ~$4.0–$4.2B with healthy gross margins, but net income was inconsistent (including a loss in 2024), indicating earnings volatility and weakening trajectory.

Balance Sheet

Leverage looks manageable on an equity basis, with debt-to-equity generally in the ~0.67–0.92 range across the period and sizable equity balances. However, total debt remains large in absolute terms (multi-billion in most years), and returns on equity have been low and inconsistent (including negative in 2024), which reduces confidence that the balance sheet is being used efficiently. The sharp scale-down in 2025 also raises questions about asset/earnings stability going forward.

Cash Flow

Cash generation is a relative bright spot: operating cash flow has been consistently positive and, in several years, roughly in line with reported earnings quality. Free cash flow is volatile—strongly negative in 2021–2022, positive in 2023–2025 and 2020—suggesting uneven capital spending or working-capital swings. In 2025, free cash flow was solid and covered a large portion of reported net income, but the year-over-year free cash flow decline (down ~52%) highlights continued variability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	162.96M	3.77B	3.91B	4.17B	4.12B
Gross Profit	35.21M	2.14B	2.18B	2.20B	2.21B
EBITDA	-968.00K	826.00M	963.00M	935.00M	1.03B
Net Income	290.92M	-39.00M	54.00M	30.00M	155.00M
Balance Sheet
Total Assets	4.94B	10.45B	10.75B	11.12B	10.34B
Cash, Cash Equivalents and Short-Term Investments	113.40M	144.00M	150.00M	273.00M	156.00M
Total Debt	1.71B	3.82B	4.03B	4.18B	3.75B
Total Liabilities	2.37B	5.84B	6.10B	6.54B	5.77B
Stockholders Equity	2.57B	4.58B	4.63B	4.55B	4.55B
Cash Flow
Free Cash Flow	173.64M	326.00M	128.00M	-355.00M	-1.24B
Operating Cash Flow	200.84M	883.00M	866.00M	832.00M	802.00M
Investing Cash Flow	2.44B	-556.00M	-721.00M	-1.18B	-2.04B
Financing Cash Flow	-2.68B	-347.00M	-274.00M	456.00M	142.00M

Array Digital Infrastructure Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AD, the sentiment is Neutral. The current price of 47.94 is below the 20-day moving average (MA) of 48.95, above the 50-day MA of 46.42, and above the 200-day MA of 41.48, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 14.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AD.

Array Digital Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHI	77 Outperform	$5.22B	10.07	25.22%	7.78%	0.59%	8.86%
TKC	74 Outperform	$6.05B	14.76	7.60%	5.57%	19.02%	9.26%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AD	60 Neutral	$4.14B	14.37	5.11%	42.91%	-25.64%	―
LBTYA	59 Neutral	$4.24B	-0.61	―	―	―	―
TDS	56 Neutral	$4.81B	-68.11	2.54%	0.39%	-22.79%	79.90%
LUMN	55 Neutral	$7.63B	-4.26	―	―	-4.56%	23.46%

Array Digital Infrastructure Corporate Events

Array Digital Infrastructure Completes Spectrum Sale, Declares Dividend

On January 13, 2026, Array Digital Infrastructure completed the previously announced sale of select spectrum assets, including 700 MHz band licenses, to AT&T’s New Cingular Wireless PCS unit for $1.018 billion in cash, with no portion of the purchase price deferred. The transaction, which follows Array’s August 1, 2025 spectrum sale to T-Mobile and its May 28, 2024 plan to monetize retained spectrum, advances the company’s strategy of extracting value from non-core spectrum holdings and converting it into cash. On the same day, the board declared a special cash dividend of $10.25 per share for holders of Common Stock and Series A Common Stock, payable on February 2, 2026 to shareholders of record as of January 23, 2026, signaling an immediate return of proceeds to investors and underscoring management’s focus on capital returns following the asset sale.

The most recent analyst rating on (AD) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Array Digital Infrastructure stock, see the AD Stock Forecast page.

Array Digital Infrastructure Amends Credit Agreement Terms

On December 8, 2025, Array Digital Infrastructure, Inc. entered into the Fifth Amendment to its First Amended and Restated Credit Agreement with Toronto Dominion (Texas) LLC and other lenders. The amendment reduces Array’s borrowing capacity from $300 million to $100 million and extends the maturity date to five years from the effective date. It also removes the credit spread adjustment for the Term SOFR interest rate and increases the capacity for secured and unsecured debt by $300 million, impacting Array’s financial operations and potential leverage.

The most recent analyst rating on (AD) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Array Digital Infrastructure stock, see the AD Stock Forecast page.