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Research Alert: Array Digital Delivers Mixed Results As Transformation Continues

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Array Digital Infrastructure, Inc. (Array) delivered mixed Q1 2026 results with EPS of $2.08 missing estimates of $3.69 despite strong revenue growth. Revenues surged 93% Y/Y to $52.0M, with site rental revenues growing 92% Y/Y to $51.0M, due to the T-Mobile Master License Agreement in the company's second quarter as an independent tower operator. While spectrum monetization provided significant gains, including a $156.6M book gain from the $1.018B January spectrum sale, operational headwinds emerged from the DISH Wireless payment dispute affecting ~282 colocations. Management reaffirmed 2026 guidance despite near-term challenges. The tenancy rate declined to 0.96x from 1.03x as Array excluded DISH due to collection concerns, though we believe its systematic spectrum monetization strategy continues advancing with a pending $1.0B Verizon transaction expected to close in Q2/Q3 2026. Additionally, TDS delivered a non-binding proposal to acquire remaining Array shares, adding a potential strategic alternative.

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