Array's Q4 Earnings Surpass Estimates on Higher Revenues

Array Digital Infrastructure, Inc. AD reported strong fourth-quarter 2025 results, with both top and bottom lines surpassing the respective Zacks Consensus Estimate. The company reported top-line growth year over year, backed by solid growth in the site rental revenues.

Net Income

The company reported a net loss of $41.4 million or a loss of 48 cents per share compared with a net income of $11.7 million or 13 cents in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 32 cents.

For 2025, the company reported a net income of $169.7 million or $1.94 per share against a net loss of $85.9 million or $1 per share in 2024.

Revenues

The company generated $60.3 million in operating revenues compared with $26.1 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $58 million.

For 2025, the company reported revenues of $163 million compared with $102.9 million in 2024.

Array’s cash site rental revenues rose to $54.99 million from $26.01 million a year ago. Non-cash site rental revenues rose to $5.19 million from $0.64 million a year ago. In site rental revenues, a significant portion comes from T-Mobile, followed by AT&T and Verizon.

Operating Details

Adjusted EBITDA in the quarter was $52.1 million, up from $24.5 million in the prior-year quarter. Adjusted OIBDA was $22.2 million, against an adjusted OIBDA loss of $16 million in the year-earlier quarter. Total operating expenses were $51.7 million, down 6% year over year. The company reported an operating income of $8.6 million against an operating loss of $29.1 million in the prior-year quarter.

Cash Flow & Liquidity

In 2025, Array generated $75.1 million of cash from operating activities – continuing operations compared with $38.4 million in the year-ago quarter. As of Dec. 31, 2025, the company had $113.4 million in cash and cash equivalents and $670.3 million in long-term debt compared to respective tallies of $143.7 million and $1.2 billion in 2024.

Outlook

In 2026, the company is projected to report operating revenues of $200-$215 million. Adjusted OIBDA is expected to be in the range of $50-$65 million. Adjusted EBITDA is forecasted at $200-$215 million. Capital expenditures are expected in the range of $25-$35 million.

Zacks Rank

AD carries a Zacks Rank #3 (Hold) at present.

Stocks to Consider

Celestica Inc. CLS carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 8.62%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

With rising demand for AI and cloud infrastructure, Celestica is well-positioned to benefit. Its focus on higher-margin markets, diversified portfolio, and strong engineering capabilities support scalable production of complex electronic and data-center solutions. Its strong research and development capabilities enable it to produce high-volume electronics manufacturing across multiple industries.

Ericsson ERIC carries a Zacks Rank #2 at present. It delivered an earnings surprise of 17.39% in the last reported quarter.

Ericsson is likely to gain from steady global 5G investments. Its competitive 5G portfolio and disciplined cost focus support network leadership, while expanding enterprise and private-network offerings create new growth opportunities. The company continues to execute its plan to become a leading mobile infrastructure provider. Ongoing innovation and partnerships should further strengthen its position in the wireless infrastructure market.

Ubiquiti Inc. UI currently carries a Zacks Rank #2. It delivered an earnings surprise of 38.08% in the last reported quarter.

It offers a broad portfolio of networking solutions for enterprises and service providers. Its efficient and flexible business model supports healthy margins and scalable expansion. The company continues to invest in research and development to launch innovative networking products and advanced technologies. Strong channel management and a wide global distributor network improve demand visibility and inventory control.

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This article originally published on Zacks Investment Research (zacks.com).

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