Array Digital Infrastructure (AD) AI Stock Analysis

• Market Cap: $4.22B
• Dividend Yield: 47.03%
• Average Volume (3M): 190.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• 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: 53,373,215
• 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: 2.15
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 5.71
• Enterprise Value/Ebitda: 12.04
• 1Y Price Target: $85.50
• Price Target Upside: 71.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $48.00 ▼(-3.98% Downside)

Array Digital Infrastructure's overall stock score is driven by a positive earnings call that highlights strategic achievements and debt reduction, which are significant positives. However, financial performance remains a concern with declining revenues and profitability, and technical indicators suggest bearish momentum. The high dividend yield is attractive but may not be sustainable given the current financial challenges.

Positive Factors

Strategic Transaction

The $4.3 billion sale to T-Mobile strengthens the balance sheet, allowing Array to focus on growth in its tower and fiber businesses.

Debt Reduction

Redeeming $1.1 billion in debt will save $80 million annually in interest, improving financial flexibility and supporting strategic investments.

Leadership Change

New leadership under Anthony Carlson could drive strategic initiatives and operational improvements, leveraging his experience in growth marketing and organizational transformation.

Negative Factors

Revenue Decline

Declining revenues in legacy markets indicate challenges in maintaining growth, impacting long-term profitability and market position.

Profitability Challenges

Negative net profit margins highlight operational inefficiencies and profitability challenges, potentially affecting future cash flow and investment capacity.

Transition Costs

Transition costs as Array shifts to an independent tower company could strain resources and negatively impact adjusted EBITDA in the short to medium term.

Array Digital Infrastructure Business Overview & Revenue Model

Company Description

Array Digital Infrastructure (AD) is a leading provider of innovative digital infrastructure solutions, specializing in data centers, cloud computing, and network services. The company serves a diverse range of industries, including technology, finance, healthcare, and telecommunications, offering core products such as colocation services, managed cloud solutions, and high-performance networking. With a focus on scalability, security, and efficiency, AD is committed to empowering businesses with the digital backbone necessary for success in a rapidly evolving technological landscape.

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: 49.99
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 49.99 is above the 20-day moving average (MA) of 46.84, above the 50-day MA of 48.38, and above the 200-day MA of 47.40, indicating a bullish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 59.75 is Neutral, neither overbought nor oversold. The STOCH value of 93.21 is Negative, 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	$4.76B	9.45	25.22%	7.56%	0.59%	8.86%
TKC	74 Outperform	$5.00B	11.43	7.60%	5.79%	19.02%	9.26%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AD	60 Neutral	$4.22B	-160.26	4.11%	47.03%	-25.64%	―
TDS	56 Neutral	$4.35B	―	1.73%	0.42%	-22.79%	79.90%
LBTYA	55 Neutral	$3.61B	-0.97	―	―	―	―
LUMN	51 Neutral	$8.32B	―	―	―	-4.56%	23.46%

Array Digital Infrastructure Corporate Events

Array Digital Infrastructure Reports Strong Q3 2025 Results

Array Digital Infrastructure, Inc. is a prominent owner and operator of shared wireless communications infrastructure in the United States, facilitating the deployment of 5G and other wireless technologies nationwide. The company recently reported a significant increase in its third-quarter 2025 financial results, showcasing a robust performance following its transition to an independent tower company.

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.

Array Digital Infrastructure Finalizes Key Decisions at Annual Meeting

At the Annual Meeting of Shareholders on October 9, 2025, Array Digital Infrastructure, Inc. finalized several key decisions. The election of directors saw Harry J. Harczak, Jr., Esteban C. Iriarte, and Xavier D. Williams elected by common shareholders, while six directors were elected by Series A common shareholders. Additionally, shareholders approved PricewaterhouseCoopers LLP as the independent registered public accountants for 2025, amendments to the company’s Restated Certificate of Incorporation following a transaction with T-Mobile, and the executive compensation plan.

The most recent analyst rating on (AD) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Array Digital Infrastructure stock, see the AD Stock Forecast page.