# Array Digital Infrastructure (AD.US)

Canonical: https://gigainvestors.com/s/AD

Analysis as of: 2026-10-16T07:26:11.749Z. Financial observations: FY2014–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $33.51 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 6.03×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.01×

- FY2017: -0.08×

- FY2018: 0.04×

- FY2019: 0.03×

- FY2020: 0.04×

- FY2021: 0.04×

- FY2022: 0.02×

- FY2023: 0.04×

- FY2024: -0.00×

- FY2025: -0.30×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 32.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 0.9%

- ROIC, second-lowest year: -1.2%

- Typical minus recent gross margin: 32.8 pp

- Typical gross margin (annual median): 54.4%

- Recent gross margin (lower of latest and 3-year median): 21.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 16.4%

- ROIC including acquisitions, ten-year median: 1.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.7%

- FY2017: -4.9%

- FY2018: 2.4%

- FY2019: 1.3%

- FY2020: 2.4%

- FY2021: 1.9%

- FY2022: 0.5%

- FY2023: 1.1%

- FY2024: -0.1%

- FY2025: -1.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -2.48×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.2B

- Net income, five-year total: $491M

- Return on incremental invested capital: -25.0%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -3.5 pp

- Working capital / revenue, final three-year average: 12.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -7.43×

- FY2022: -14.02×

- FY2023: -0.52×

- FY2024: -1.77×

- FY2025: 1.07×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.7% vs -0.1%

- Per-share earnings: 0.56 to 0.62 (three-year endpoint medians)

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: $915M

- Cumulative retained earnings: -$1.4B

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.2%

- Per-share value change: $0.06

- Per-share value, starting three-year median: $0.56

- Per-share value, ending three-year median: $0.62

- Buybacks concentrated in cheaper years (correlation): 0.21

- Average buyback yield: 1.1%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: $2.6B

- Cumulative net income, 10 years: $1.1B

- ROIC, first three-year median: 0.7%

- ROIC, last three-year median: -0.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.56

- FY2017: $0.14

- FY2018: $1.72

- FY2019: $1.44

- FY2020: $2.63

- FY2021: $1.78

- FY2022: $0.35

- FY2023: $0.62

- FY2024: -$0.46

- FY2025: $3.33

### accounting: pass

- Sloan accruals: 1.8%

- Receivables to sales index (DSRI): 0.52×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.69×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.64×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.4%

- FY2017: -6.7%

- FY2018: -7.7%

- FY2019: -7.3%

- FY2020: -10.4%

- FY2021: -6.3%

- FY2022: -7.2%

- FY2023: -7.6%

- FY2024: -8.8%

- FY2025: 1.8%

## Holders

- [Howard Marks](https://gigainvestors.com/oc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 54% since Jul 2025 · sales -95.7%

Story as of 2026-10-16T09:58:13.904Z; price observation 2026-10-15.

- 2026-08-10: AD Q2 Earnings Beat Estimates on Strong Site Rental Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ad-q2-earnings-beat-estimates-172300141.html))

### Sales · FY2024–2025

sales -95.7%; source https://www.sec.gov/Archives/edgar/data/821130/000082113026000012/ad-20251231.htm; observed 2026-02-20.

- FY2016: $4.0B 

- FY2017: $3.9B 

- FY2018: $4.0B 

- FY2019: $4.0B 

- FY2020: $4.0B 

- FY2021: $4.1B 

- FY2022: $4.2B 

- FY2023: $3.9B 

- FY2024: $3.8B 

- FY2025: $163M 

### Gross margin · FY2025

gross margin 21.6%; source https://www.sec.gov/Archives/edgar/data/821130/000082113026000012/ad-20251231.htm; observed 2026-02-20.

- FY2016: 53.9% 

- FY2017: 53.7% 

- FY2018: 54.9% 

- FY2019: 55.6% 

- FY2020: 55.6% 

- FY2021: 53.7% 

- FY2022: 52.7% 

- FY2023: 55.8% 

- FY2024: 56.8% 

- FY2025: 21.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are USD 163 million.

- Source: https://www.sec.gov/Archives/edgar/data/821130/000082113026000012/ad-20251231.htm (filed 2026-02-20); FY2025: revenue 162961000; grossProfit 35214000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AD.US: Array Digital Infrastructure, Inc. owns and operates shared wireless communications infrastructure in the United States. The company deploys 5G and other wireless technologies through its 4,400 cell towers. It also leases tower space to tenants. In addition, the company offers ancillary services. It serves organizations, wireless carriers, government agencies, municipalities, wireless internet service providers, and broadband providers. The company was formerly known as United States Cellular Corporation and changed its name to Array Digital Infrastructure, Inc. in August 2025. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. Array Digital Infrastructure, Inc. is a subsidiary of Telephone and Data Systems, Inc.

### Why customers stay

Margins ranged from 21.6% to 56.8% during 2023–25; it earns 0.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 55.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 56.8%.

- Source: https://www.sec.gov/Archives/edgar/data/821130/000082113026000012/ad-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 21.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.007244021360575807],[2017,-0.04886266531027467],[2018,0.023705926481620402],[2019,0.0125968271149748],[2020,0.02435957093216498],[2021,0.018564018564018563],[2022,0.005303299042213551],[2023,0.01062191394309899],[2024,-0.001148435813462042],[2025,-0.011823922270980856]]; median 0.008932967651837398. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 10 years; bought back USD 21.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 443000000; owner earnings 223000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 465000000; owner earnings 162000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 512000000; owner earnings 278000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 650000000; owner earnings 179000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 557000000; owner earnings 69000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/821130/000082113026000012/ad-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 27200000; owner earnings 311983000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,1986719000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/821130/000082113026000012/ad-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 21360000 USD.

### Are managers owners

Insiders own 71.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AD.US SharesStats.PercentInsiders = 71.545 percentage points; cache date 2026-10-16.

### What could break it

5)There are economic and business risks associated with fixed rate annual escalators on colocation revenue contracts.

- Source: https://www.sec.gov/Archives/edgar/data/821130/000082113026000012/ad-20251231.htm (filed 2026-02-20); Specifically, Array could be negatively impacted by the following factors, among others: •Increased pressure on pricing resulting from increased tenant churn, sustained low tenancy rates or further reductions in such rates; •Low profit margins and returns on investment that are below Array’s cost of capital; •Limited opportunities for strategic partnerships. 5)There are economic and business risks associated with fixed rate annual escalators on colocation revenue contracts. A majority of Array's ground leases with its ground lessors, and a majority of Array's colocation contracts with its tenants contain fixed rate annual escalation rates.

### What the price says

The price is 18 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Closing price 33.51 USD; reporting-to-trading FX 1; FY2025 annual sales per share 1.8668278097900175; price multiple 17.95023613011702. FY2025 cash earnings/share 3.5739750037230933. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $35.05 per share

- 2016-11: $37.63 per share

- 2016-12: $43.72 per share

- 2017-01: $44.59 per share

- 2017-02: $37.39 per share

- 2017-03: $37.33 per share

- 2017-04: $39.18 per share

- 2017-05: $39.96 per share

- 2017-06: $38.32 per share

- 2017-07: $37.88 per share

- 2017-08: $38.68 per share

- 2017-09: $35.40 per share

- 2017-10: $36.59 per share

- 2017-11: $37.84 per share

- 2017-12: $37.63 per share

- 2018-01: $36.37 per share

- 2018-02: $38.59 per share

- 2018-03: $40.19 per share

- 2018-04: $39.57 per share

- 2018-05: $35.92 per share

- 2018-06: $37.04 per share

- 2018-07: $34.36 per share

- 2018-08: $42.76 per share

- 2018-09: $44.78 per share

- 2018-10: $47.77 per share

- 2018-11: $55.86 per share

- 2018-12: $51.97 per share

- 2019-01: $57.58 per share

- 2019-02: $46.69 per share

- 2019-03: $45.91 per share

- 2019-04: $48.10 per share

- 2019-05: $43.55 per share

- 2019-06: $44.67 per share

- 2019-07: $47.89 per share

- 2019-08: $35.99 per share

- 2019-09: $37.58 per share

- 2019-10: $37.22 per share

- 2019-11: $33.91 per share

- 2019-12: $36.23 per share

- 2020-01: $32.02 per share

- 2020-02: $31.41 per share

- 2020-03: $29.29 per share

- 2020-04: $31.83 per share

- 2020-05: $31.51 per share

- 2020-06: $30.87 per share

- 2020-07: $29.67 per share

- 2020-08: $36.38 per share

- 2020-09: $29.53 per share

- 2020-10: $29.12 per share

- 2020-11: $31.35 per share

- 2020-12: $30.69 per share

- 2021-01: $31.18 per share

- 2021-02: $29.43 per share

- 2021-03: $36.48 per share

- 2021-04: $34.13 per share

- 2021-05: $37.75 per share

- 2021-06: $36.31 per share

- 2021-07: $36.36 per share

- 2021-08: $31.95 per share

- 2021-09: $31.89 per share

- 2021-10: $30.57 per share

- 2021-11: $29.11 per share

- 2021-12: $31.52 per share

- 2022-01: $30.62 per share

- 2022-02: $27.51 per share

- 2022-03: $30.23 per share

- 2022-04: $28.78 per share

- 2022-05: $30.71 per share

- 2022-06: $28.96 per share

- 2022-07: $29.29 per share

- 2022-08: $28.59 per share

- 2022-09: $26.03 per share

- 2022-10: $31.17 per share

- 2022-11: $21.26 per share

- 2022-12: $20.85 per share

- 2023-01: $24.46 per share

- 2023-02: $24.13 per share

- 2023-03: $20.73 per share

- 2023-04: $21.24 per share

- 2023-05: $14.30 per share

- 2023-06: $17.63 per share

- 2023-07: $17.71 per share

- 2023-08: $45.87 per share

- 2023-09: $42.97 per share

- 2023-10: $42.03 per share

- 2023-11: $45.43 per share

- 2023-12: $41.54 per share

- 2024-01: $44.40 per share

- 2024-02: $34.89 per share

- 2024-03: $36.50 per share

- 2024-04: $36.36 per share

- 2024-05: $55.46 per share

- 2024-06: $55.82 per share

- 2024-07: $53.75 per share

- 2024-08: $55.62 per share

- 2024-09: $54.65 per share

- 2024-10: $61.70 per share

- 2024-11: $63.46 per share

- 2024-12: $62.72 per share

- 2025-01: $62.80 per share

- 2025-02: $65.58 per share

- 2025-03: $69.15 per share

- 2025-04: $68.66 per share

- 2025-05: $61.97 per share

- 2025-06: $63.97 per share

- 2025-07: $72.93 per share

- 2025-08: $53.83 per share

- 2025-09: $50.01 per share

- 2025-10: $49.12 per share

- 2025-11: $49.18 per share

- 2025-12: $53.62 per share

- 2026-01: $48.19 per share

- 2026-02: $48.73 per share

- 2026-03: $46.14 per share

- 2026-04: $49.69 per share

- 2026-05: $50.86 per share

- 2026-06: $36.26 per share

- 2026-07: $34.84 per share

- 2026-08: $36.66 per share

- 2026-09: $33.72 per share

- 2026-10: $33.51 per share

## Annual estimated value (USD per share)

- FY2018: low $33.81 per share, central $37.65 per share, high $42.76 per share

- FY2019: low $30.24 per share, central $34.09 per share, high $39.22 per share

- FY2020: low $36.29 per share, central $39.40 per share, high $43.54 per share

- FY2021: low $22.41 per share, central $25.39 per share, high $29.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/821130/000082113026000012/ad-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.