Array reports second quarter 2025 results

, /PRNewswire/ -- On August 1, 2025, United States Cellular Corporation changed its name to Array Digital Infrastructure, Inc.SM (ArraySM) As previously announced, Array will hold a teleconference on August 11, 2025, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.arrayinc.com or investors.tdsinc.com. Array Digital Infrastructure, Inc. (NYSE:USM) reported total operating revenues of $916 million for the second quarter of 2025, versus $927 million for the same period one year ago. Service revenues totaled $736 million, versus $743 million for the same period one year ago. Net income attributable to Array shareholders and related diluted earnings per share were $31 million and $0.36, respectively, for the second quarter of 2025 compared to $17 million and $0.20, respectively, in the same period one year ago. Recent Highlights* On August 1, 2025, Array completed the sale of its wireless operations and select spectrum assets to T-Mobile for total consideration of $4.3 billion which includes a combination of cash and assumed debt Declared a $23.00 per share special dividend payable on August 19, 2025 Third-party tower revenues increased 12% Pending AT&T and Verizon spectrum transactions are expected to close in 2H 2025 and Q3 2026, respectively, subject to receipt of regulatory approvals and satisfaction of closing conditions * Comparisons are 2Q'24 to 2Q'25 unless otherwise noted "I am pleased that we have successfully closed the T-Mobile deal and have declared a special dividend in connection with the transaction," said Doug Chambers, Array interim President and CEO. "As a tower company with 4,400 towers and a new Master License Agreement with T-Mobile, Array has strength and stability from its current tower revenue stream, along with an excellent opportunity to grow colocations and revenues, and to expand margins over time. Our non-controlling investment interests also continue to generate significant cash flow. Further, I look forward to closing our announced spectrum transactions and continuing to work toward opportunistically monetizing our remaining spectrum." Pending previously announced transactionsOn October 17, 2024, the company entered into a License Purchase Agreement with Verizon Communications, Inc. (Verizon) to sell certain AWS, Cellular and PCS wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant Verizon certain rights to lease such licenses prior to the transaction close. Additionally, Array also entered into agreements with Nsight Spectrum, LLC and Nex-Tech Wireless, LLC for the sale of select spectrum licenses. On November 6, 2024, the company also entered into a License Purchase Agreement with New Cingular Wireless PCS, LLC (AT&T), a subsidiary of AT&T Inc. to sell certain 3.45 GHz and 700 MHz wireless spectrum licenses, subject to receipt of regulatory approvals, and agreed to grant AT&T certain rights to lease and sub-lease such licenses prior to the transaction close. Array is not providing 2025 financial guidance. Conference Call InformationArray will hold a conference call on August 11, 2025 at 9:00 a.m. Central Time. Access the live call on the Events & Presentations page of investors.arrayinc.com, investors.tdsinc.com, or at https://events.q4inc.com/attendee/378403075 Access the call by phone at (888)330-2384 conference ID: 1328528. About Array Array Digital Infrastructure, Inc. is a leading owner and operator of shared wireless communications infrastructure in the United States. With over 4,400 cell towers in locations from coast to coast, Array enables the deployment of 5G and other wireless technologies throughout the country. As of August 1, 2025, Telephone and Data Systems, Inc. owned approximately 82% of Array. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: the manner in which Array's remaining business is conducted; strategic decisions regarding the tower business; Array's reliance on a small number of tenants for a substantial portion of its revenues; extreme weather events; whether the previously announced spectrum license sales to Verizon and AT&T will be consummated; whether Array can monetize the remaining spectrum assets; competition in the tower industry; and significant investments in wireless operating entities Array does not control. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under "Risk Factors" in the most recent filing of Array's Form 10-K, as updated by any Array Form 10-Q filed subsequent to such Form 10-K. Array Digital Infrastructure, Inc. Summary Operating Data (Unaudited) As of or for the Quarter Ended 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Retail Connections Postpaid Total at end of period 3,904,000 3,946,000 3,985,000 3,999,000 4,027,000 Gross additions 109,000 105,000 140,000 123,000 117,000 Handsets 70,000 68,000 93,000 84,000 73,000 Connected devices 39,000 37,000 47,000 39,000 44,000 Net additions (losses) (42,000) (39,000) (14,000) (28,000) (24,000) Handsets (44,000) (38,000) (19,000) (28,000) (29,000) Connected devices 2,000 (1,000) 5,000 — 5,000 ARPU1 $ 51.91 $ 52.06 $ 51.73 $ 52.04 $ 51.45 ARPA2 $ 131.89 $ 132.25 $ 131.10 $ 131.81 $ 130.41 Handset upgrade rate3 4.2 % 3.1 % 4.8 % 3.5 % 4.1 % Churn rate4 1.29 % 1.21 % 1.29 % 1.25 % 1.16 % Handsets 1.12 % 1.03 % 1.08 % 1.07 % 0.97 % Connected devices 2.36 % 2.40 % 2.67 % 2.47 % 2.47 % Prepaid Total at end of period 429,000 431,000 448,000 452,000 439,000 Gross additions 43,000 38,000 46,000 57,000 50,000 Net additions (losses) (2,000) (17,000) (4,000) 13,000 3,000 ARPU1 $ 31.72 $ 30.76 $ 30.59 $ 32.01 $ 32.37 Churn rate4 3.58 % 4.17 % 3.70 % 3.30 % 3.60 % Market penetration at end of period Consolidated operating population 31,390,000 31,390,000 32,550,000 32,550,000 32,550,000 Consolidated operating penetration5 14 % 14 % 14 % 14 % 14 % Capital expenditures (millions) $ 80 $ 53 $ 162 $ 120 $ 165 Total cell sites in service 7,061 7,009 7,010 7,007 6,990 Owned towers 4,418 4,413 4,409 4,407 4,388 Number of colocations6 2,527 2,469 2,444 2,418 2,392 Tower tenancy rate7 1.57 1.56 1.55 1.55 1.55 1 Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below: • Postpaid ARPU consists of total postpaid service revenues and postpaid connections. • Prepaid ARPU consists of total prepaid service revenues and prepaid connections. 2 Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period. 3 Handset upgrade rate calculated as total handset upgrade transactions divided by average postpaid handset connections. 4 Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period. 5 Market penetration is calculated by dividing the number of retail wireless connections at the end of the period by the total estimated population of consolidated operating markets. The methodology for the calculation was updated in the second quarter of 2025 and prior periods were revised to reflect this change. 6 Represents instances where a third-party wireless carrier rents or leases space on a company-owned tower. 7 Average number of tenants that lease space on company-owned towers, measured on a per-tower basis. Array Digital Infrastructure, Inc. Consolidated Statement of Operations Highlights (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 vs. 2024 2025 2024 2025 vs. 2024 (Dollars and shares in millions, except per share amounts) Operating revenues Service $ 736 $ 743 (1) % $ 1,477 $ 1,497 (1) % Equipment sales 180 184 (2) % 330 380 (13) % Total operating revenues 916 927 (1) % 1,807 1,877 (4) % Operating expenses System operations (excluding Depreciation, amortization and accretion reported below) 183 180 1 % 359 362 (1) % Cost of equipment sold 209 211 (1) % 387 427 (9) % Selling, general and administrative 328 322 2 % 661 653 1 % Depreciation, amortization and accretion 163 165 (1) % 325 329 (2) % (Gain) loss on asset disposals, net 2 5 (53) % 4 11 (60) % (Gain) loss on license sales and exchanges, net (4) 8 N/M (5) 7 N/M 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 % Basic weighted average shares outstanding 86 86 — 85 86 — Basic earnings per share attributable to Array shareholders $ 0.37 $ 0.20 81 % $ 0.58 $ 0.41 42 % Diluted weighted average shares outstanding 88 88 — 88 88 — Diluted earnings per share attributable to Array shareholders $ 0.36 $ 0.20 81 % $ 0.57 $ 0.40 41 % N/M - Percentage change not meaningful Array Digital Infrastructure, Inc. Consolidated Statement of Cash Flows (Unaudited) Six Months Ended June 30, 2025 2024 (Dollars in millions) Cash flows from operating activities Net income $ 52 $ 42 Add (deduct) adjustments to reconcile net income to net cash flows from operating activities Depreciation, amortization and accretion 325 329 Bad debts expense 43 46 Stock-based compensation expense 29 25 Deferred income taxes, net (9) 11 Equity in earnings of unconsolidated entities (78) (80) Distributions from unconsolidated entities 88 80 (Gain) loss on asset disposals, net 4 11 (Gain) loss on license sales and exchanges, net (5) 7 Other operating activities 3 3 Changes in assets and liabilities from operations Accounts receivable (21) (1) Equipment installment plans receivable 44 5 Inventory 52 57 Accounts payable (4) — Customer deposits and deferred revenues (13) 6 Accrued taxes 10 20 Accrued interest — (1) Other assets and liabilities (35) (44) Net cash provided by operating activities 485 516 Cash flows from investing activities Cash paid for additions to property, plant and equipment (147) (270) Cash paid for licenses (4) (15) Other investing activities 1 1 Net cash used in investing activities (150) (284) Cash flows from financing activities Issuance of long-term debt — 40 Repayment of long-term debt (12) (198) Tax withholdings, net of cash receipts, for stock-based compensation awards (36) (12) Repurchase of Common Shares (21) — Distributions to noncontrolling interests (2) (3) Cash paid for software license agreements (20) (20) Other financing activities (2) (3) Net cash used in financing activities (93) (196) Net increase in cash, cash equivalents and restricted cash 242 36 Cash, cash equivalents and restricted cash Beginning of period 159 179 End of period $ 401 $ 215 Array Digital Infrastructure, Inc. Consolidated Balance Sheet Highlights (Unaudited) ASSETS June 30, 2025 December 31, 2024 (Dollars in millions) Current assets Cash and cash equivalents $ 386 $ 144 Accounts receivable, net 922 955 Inventory, net 126 179 Prepaid expenses 53 46 Income taxes receivable 1 — Other current assets 21 21 Total current assets 1,509 1,345 Licenses 4,583 4,579 Investments in unconsolidated entities 444 454 Property, plant and equipment, net 2,313 2,502 Operating lease right-of-use assets 922 926 Other assets and deferred charges 606 643 Total assets $ 10,377 $ 10,449 Array Digital Infrastructure, Inc. Consolidated Balance Sheet Highlights (Unaudited) LIABILITIES AND EQUITY June 30, 2025 December 31, 2024 (Dollars in millions, except per share amounts) Current liabilities Current portion of long-term debt $ 28 $ 22 Accounts payable 218 242 Customer deposits and deferred revenues 225 238 Accrued taxes 37 30 Accrued compensation 54 93 Short-term operating lease liabilities 137 141 Other current liabilities 109 118 Total current liabilities 808 884 Deferred liabilities and credits Deferred income tax liability, net 719 728 Long-term operating lease liabilities 825 822 Other deferred liabilities and credits 576 570 Long-term debt, net 2,819 2,837 Noncontrolling interests with redemption features 16 16 Equity Array shareholders' equity Series A Common and Common Shares, par value $1.00 per share 88 88 Additional paid-in capital 1,812 1,783 Treasury shares (102) (112) Retained earnings 2,802 2,818 Total Array shareholders' equity 4,600 4,577 Noncontrolling interests 14 15 Total equity 4,614 4,592 Total liabilities and equity $ 10,377 $ 10,449 Array Digital Infrastructure, Inc. Segment Results (Unaudited) Three Months Ended June 30, Six Months EndedJune 30, Array 2025 2024 2025vs. 2024 2025 2024 2025 vs. 2024 (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) % Adjusted OIBDA1 (Non-GAAP) $ 208 $ 227 (9) % $ 422 $ 456 (7) % Adjusted EBITDA1 (Non-GAAP) $ 254 $ 268 (6) % $ 506 $ 542 (7) % Capital expenditures $ 80 $ 165 (52) % $ 132 $ 295 (55) % 1 Adjusted OIBDA and Adjusted EBITDA are non-GAAP financial measures which Array uses as measurements of profitability. See EBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations within this earnings release for additional information. Array Digital Infrastructure, Inc. Segment Results (Unaudited) Three Months Ended June 30, Six Months EndedJune 30, Array Wireless 2025 2024 2025vs. 2024 2025 2024 2025vs. 2024 (Dollars in millions) Retail service $ 652 $ 666 (2) % $ 1,312 $ 1,344 (2) % Other 56 52 7 % 109 102 7 % Service revenues 708 718 (1) % 1,421 1,446 (2) % Equipment sales 180 184 (2) % 330 380 (13) % Total operating revenues 888 902 (1) % 1,751 1,826 (4) % System operations (excluding Depreciation, amortization and accretion reported below) 197 194 1 % 387 390 (1) % Cost of equipment sold 209 211 (1) % 387 427 (9) % Selling, general and administrative 319 313 2 % 643 637 1 % Depreciation, amortization and accretion 151 154 (2) % 302 308 (2) % (Gain) loss on asset disposals, net 2 5 (59) % 3 10 (66) % (Gain) loss on license sales and exchanges, net (4) 8 N/M (5) 7 N/M Total operating expenses 874 885 (1) % 1,717 1,779 (3) % Operating income $ 14 $ 17 (21) % $ 34 $ 47 (27) % Adjusted OIBDA1 (Non-GAAP) $ 174 $ 196 (11) % $ 355 $ 392 (9) % Adjusted EBITDA1 (Non-GAAP) $ 174 $ 196 (11) % $ 355 $ 392 (9) % Capital expenditures $ 77 $ 160 (52) % $ 127 $ 286 (55) % Three Months Ended June 30, Six Months EndedJune 30, Array Towers 2025 2024 2025vs. 2024 2025 2024 2025vs. 2024 (Dollars in millions) Third-party revenues $ 28 $ 25 12 % $ 56 $ 51 9 % Intra-company revenues 34 33 3 % 67 65 3 % Total tower revenues 62 58 7 % 123 116 6 % System operations (excluding Depreciation, amortization and accretion reported below) 20 19 6 % 39 37 5 % Selling, general and administrative 9 9 (1) % 18 16 14 % Depreciation, amortization and accretion 12 11 7 % 23 21 6 % (Gain) loss on asset disposals, net — — 14 % 1 1 60 % Total operating expenses 41 39 5 % 81 75 8 % Operating income $ 21 $ 19 11 % $ 42 $ 41 2 % Adjusted OIBDA1 (Non-GAAP) $ 34 $ 31 9 % $ 67 $ 64 4 % Adjusted EBITDA1 (Non-GAAP) $ 34 $ 31 9 % $ 67 $ 64 4 % Capital expenditures $ 3 $ 5 (51) % $ 5 $ 9 (47) % 1 Adjusted OIBDA and Adjusted EBITDA are non-GAAP financial measures which Array uses as measurements of profitability. See EBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations within this earnings release for additional information. Array Digital Infrastructure, Inc. Financial Measures (Unaudited) Free Cash Flow Three Months Ended June 30, Six Months Ended June 30, Array 2025 2024 2025 2024 (Dollars in millions) Cash flows from operating activities (GAAP) $ 325 $ 313 $ 485 $ 516 Cash paid for additions to property, plant and equipment (75) (137) (147) (270) Cash paid for software license agreements (11) (11) (20) (20) Free cash flow (Non-GAAP)1 $ 239 $ 165 $ 318 $ 226 1 Free cash flow is a non-GAAP financial measure which Array believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment and Cash paid for software license agreements. Array Digital Infrastructure, Inc.EBITDA, Adjusted EBITDA and Adjusted OIBDA Reconciliations(Unaudited) EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliations below. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. Array does not intend to imply that any such items set forth in the reconciliations below are infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of Array's operating results before significant recurring non-cash charges, nonrecurring expenses, gains and losses, and other items as presented below as they provide additional relevant and useful information to investors and other users of Array's financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management's evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, gains and losses, and expenses related to the strategic alternatives review of Array while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income, Income before income taxes and/or Operating income. Income and expense items below Operating income are not provided at the individual segment level for Array Wireless and Array Towers; therefore, the reconciliations begin with EBITDA and the most directly comparable GAAP measure is Operating income rather than Net income at the segment level. Three Months Ended June 30, Six Months Ended June 30, Array 2025 2024 2025 2024 (Dollars in millions) Net income (GAAP) $ 32 $ 18 $ 52 $ 42 Add back or deduct: Income tax expense 4 14 24 41 Income before income taxes (GAAP) 36 32 76 83 Add back: Interest expense 45 45 84 91 Depreciation, amortization and accretion expense 163 165 325 329 EBITDA (Non-GAAP) 244 242 485 503 Add back or deduct: Expenses related to strategic alternatives review 12 13 22 21 (Gain) loss on asset disposals, net 2 5 4 11 (Gain) loss on license sales and exchanges, net (4) 8 (5) 7 Adjusted EBITDA (Non-GAAP) 254 268 506 542 Deduct: Equity in earnings of unconsolidated entities 42 38 78 80 Interest and dividend income 4 3 6 6 Adjusted OIBDA (Non-GAAP) $ 208 $ 227 $ 422 $ 456 Three Months Ended June 30, Six Months Ended June 30, Array Wireless 2025 2024 2025 2024 (Dollars in millions) EBITDA (Non-GAAP) $ 165 $ 171 $ 336 $ 355 Add back or deduct: Expenses related to strategic alternatives review 11 12 21 20 (Gain) loss on asset disposals, net 2 5 3 10 (Gain) loss on license sales and exchanges, net (4) 8 (5) 7 Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) 174 196 355 392 Deduct: Depreciation, amortization and accretion 151 154 302 308 Expenses related to strategic alternatives review 11 12 21 20 (Gain) loss on asset disposals, net 2 5 3 10 (Gain) loss on license sales and exchanges, net (4) 8 (5) 7 Operating income (GAAP) $ 14 $ 17 $ 34 $ 47 Three Months Ended June 30, Six Months Ended June 30, Array Towers 2025 2024 2025 2024 EBITDA (Non-GAAP) $ 33 $ 30 $ 65 $ 62 Add back or deduct: Expenses related to strategic alternatives review 1 1 1 1 (Gain) loss on asset disposals — — 1 1 Adjusted EBITDA and Adjusted OIBDA (Non-GAAP) 34 31 67 64 Deduct: Depreciation, amortization and accretion 12 11 23 21 Expenses related to strategic alternatives review 1 1 1 1 (Gain) loss on asset disposals, net — — 1 1 Operating income (GAAP) $ 21 $ 19 $ 42 $ 41 SOURCE Array Digital Infrastructure, Inc. 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Array reports second quarter 2025 results

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