Array reports second quarter 2025 results
CHICAGO, Aug. 11, 2025 /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
