Array Digital Infrastructure Inc. Common Shares (AD)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Array Digital as a small tower landlord: 4,400 wireless sites leased to carriers, governments, and broadband providers. That can be a decent business if lease revenue is durable and capital spending is disciplined. But the filed numbers are puzzling. In fiscal Q2 2026, the quarter ended 2026-06-30, Array reported revenue of $54.1M and net income of $358.7M, or $4.15 diluted EPS. In fiscal Q1 2026, ended 2026-03-31, revenue was $52.0M and net income $177.8M, or $2.06 diluted EPS. Those profits are far larger than revenue, so I cannot assume they are recurring operating earnings. Earlier periods were volatile: fiscal Q3 2025, ended 2025-09-30, had revenue $47.1M and net loss $38.5M; fiscal Q2 2025, ended 2025-06-30, had revenue $888.0M and net income $31.5M; FY2025 revenue was $163.0M with net income $48.8M; FY2024 revenue was $3.7B with a net loss $39.4M. At the 2026-10-13 close of $33.60, FairStock calculates a P/E of 4.39, P/B of 2.30, ROE of 22.68%, and an EV/EBITDA of 4.15. The Graham Number is $50.21, giving a 33.08% margin of safety, which looks cheap on paper. Yet trailing free cash flow is -$338.1M, FCF yield -11.6%, ROCE is 0.02%, D/E 0.94, Piotroski 3/9, and Altman Z-Score 0.61. That is not a fortress balance sheet. FairStock labels it a TURNAROUND, returned to profit after a loss in the last three years. I would want proof that earnings are cash-backed and repeatable before trusting the low multiple.

In plain English: Array Digital Infrastructure owns cell towers and rents space on them to wireless carriers and other organizations. Its reported profits have swung sharply and are very large compared with revenue, while the company is spending more cash than it brings in and carries meaningful debt, so the business looks mixed. At $33.60, the stock looks inexpensive compared with recent reported earnings, but those earnings may not be repeatable.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer