Array Digital Infrastructure (AD) AI Stock Analysis

• Market Cap: $4.56B
• Dividend Yield: 42.91%
• Average Volume (3M): 190.51K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.70
• Revenue Growth: -25.64%
• EPS Growth: N/A
• Country: US
• Employees: 4,100
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.44
• Shares Outstanding: 53,400,000
• 10 Day Avg. Volume: 109,155
• 30 Day Avg. Volume: 190,512
• PEG Ratio: 0.81
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 1.43
• P/FCF Ratio: 16.55
• Enterprise Value/Market Cap: 1.99
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 5.71
• Enterprise Value/Ebitda: 12.04
• 1Y Price Target: $61.00
• Price Target Upside: 15.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $56.00 ▲(6.14% Upside)

The score is held back primarily by weakening financial performance (declining revenue, negative net margins, and deteriorating free cash flow). Offsetting this are a supportive technical backdrop (price above key moving averages with neutral momentum) and a strong positive corporate catalyst from the $1.018B asset sale paired with a large special dividend. Valuation appears reasonable but not distinctly cheap, and dividend yield data is unavailable.

Positive Factors

Asset monetization and capital return

The $1.018B spectrum sale and $10.25/share special dividend convert non-core spectrum into cash, materially boosting liquidity and enabling immediate capital returns. This structural monetization improves balance sheet flexibility, funds strategic priorities, and reduces asset complexity over the medium term.

Credit agreement extension and flexibility

The Fifth Amendment lengthening the credit maturity to five years and revising borrowing capacity extends the company’s funding runway and lowers near-term refinancing risk. Greater term stability and adjusted capacity provide management time and optionality to execute restructuring or growth plans without imminent liquidity pressure.

Management continuity and industry experience

Promoting Anthony Carlson, who has prior roles at Array and TDS, supplies continuity and sector expertise. Familiar leadership can more rapidly implement the company’s asset-monetization and core growth strategies, align stakeholders, and improve execution quality, supporting operational stability over the next several quarters.

Negative Factors

Declining revenue and negative net margins

A sharp TTM revenue decline with negative net margins indicates structural demand, pricing, or operating issues that impair core profitability. Persistent top-line weakness and margin erosion reduce retained earnings and ROE, forcing trade-offs between investment, maintenance capex, and corrective cost actions needed to restore sustainable earnings.

Negative free cash flow growth

Negative free cash flow growth despite positive operating cash flow signals capital intensity or working capital strain that undermines self-funded investment. If FCF trends do not improve, the company will be reliant on asset sales or external financing to fund capex, dividends, and debt service, limiting sustainable long-term growth.

Negative return on equity with leverage

A moderate leverage profile combined with negative TTM ROE means capital is currently destroying value. Even manageable debt levels become riskier when profitability falters, constraining financial flexibility, increasing the cost of capital, and raising the likelihood of covenant or refinancing stress if operational performance doesn't recover.

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

Array Digital Infrastructure is facing declining revenues and profitability pressures, with a negative revenue growth rate and net profit margin. However, it maintains a strong gross profit margin and a stable balance sheet with manageable leverage. Cash flow generation is improving, providing a solid foundation for potential recovery.

Income Statement

Array Digital Infrastructure has experienced a decline in revenue over the TTM period, with a negative revenue growth rate of -29.6%. The gross profit margin remains strong at 71.7%, indicating efficient cost management. However, the company is facing challenges with profitability, as evidenced by a negative net profit margin of -0.68% and negative EBIT margin. The EBITDA margin is relatively healthy at 22.57%, suggesting potential for operational improvements.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.22 in the TTM period, reflecting a manageable level of leverage. However, the return on equity is negative at -0.55%, indicating challenges in generating returns for shareholders. The equity ratio stands at 44.3%, suggesting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

Array Digital Infrastructure shows a positive free cash flow growth rate of 21.97% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is above 1, demonstrating strong cash flow relative to earnings. The free cash flow to net income ratio is 0.51, suggesting that a significant portion of earnings is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.83B	3.77B	3.91B	4.17B	4.12B	4.04B
Gross Profit	1.59B	2.14B	2.18B	2.20B	2.21B	2.24B
EBITDA	752.94M	826.00M	963.00M	935.00M	1.03B	876.00M
Net Income	254.80M	-39.00M	54.00M	30.00M	155.00M	229.00M
Balance Sheet
Total Assets	4.92B	10.45B	10.75B	11.12B	10.34B	9.68B
Cash, Cash Equivalents and Short-Term Investments	325.63M	144.00M	150.00M	273.00M	156.00M	1.27B
Total Debt	1.20B	3.82B	4.03B	4.18B	3.75B	3.48B
Total Liabilities	2.38B	5.84B	6.10B	6.54B	5.77B	5.25B
Stockholders Equity	2.53B	4.58B	4.63B	4.55B	4.55B	4.41B
Cash Flow
Free Cash Flow	361.30M	326.00M	128.00M	-355.00M	-1.24B	248.00M
Operating Cash Flow	524.90M	883.00M	866.00M	832.00M	802.00M	1.24B
Investing Cash Flow	2.31B	-556.00M	-721.00M	-1.18B	-2.04B	-1.16B
Financing Cash Flow	-2.79B	-347.00M	-274.00M	456.00M	142.00M	926.00M

Array Digital Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.76
• 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 Positive. The current price of 52.76 is above the 20-day moving average (MA) of 52.66, above the 50-day MA of 49.71, and above the 200-day MA of 48.24, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 54.44 is Neutral, neither overbought nor oversold. The STOCH value of 18.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$4.73B	9.28	25.22%	7.78%	0.59%	8.86%
TKC	74 Outperform	$4.97B	11.92	7.60%	5.57%	19.02%	9.26%
AD	63 Neutral	$4.56B	18.03	4.11%	42.91%	-25.64%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TDS	60 Neutral	$4.49B	-39.06	1.73%	0.39%	-22.79%	79.90%
LBTYA	57 Neutral	$3.55B	-0.97	―	―	―	―
LUMN	53 Neutral	$8.11B	-4.79	―	―	-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.

Array Digital Infrastructure Appoints New CEO Anthony Carlson

On November 6, 2025, Array Digital Infrastructure, Inc. announced the appointment of Anthony Carlson as President and CEO, effective November 16, 2025. Mr. Carlson, who previously held various roles at Array and TDS Telecommunications LLC, will succeed Douglas W. Chambers, who will remain as a Senior Advisor until December 9, 2025. This leadership change is expected to influence Array’s strategic direction, given Mr. Carlson’s extensive experience and family ties within the company.

The most recent analyst rating on (AD) stock is a Hold with a $51.00 price target. To see the full list of analyst forecasts on Array Digital Infrastructure stock, see the AD Stock Forecast page.