SBAC Filing
8-KFiling Date: Aug 3, 2026
SBA COMMUNICATIONS CORP (SBAC) · Material Event (8-K) SEC Filing
Earnings Release, Financial Statements
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EX-99.1
EX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
SBA Communications Corporation Reports Second Quarter 2026 Results;
Updates Full Year 2026 Outlook; and Declares Quarterly Cash Dividend
Boca Raton, Florida, August 3, 2026 (BUSINESS NEWSWIRE) SBA Communications Corporation (Nasdaq: SBAC) ( SBA or the
Company ) today reported results for the quarter ended June 30, 2026. Highlights of the second quarter include:
Net income attributable to SBA of $198.8 million or $1.87 per share
Industry-leading AFFO per share of $3.05
Issued inaugural $3.5 billion investment grade senior notes and entered into a new expanded
$2.5 billion senior unsecured revolving credit facility subsequent to quarter end
Ratings upgrade from S&P to BBB
In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of $1.25 per share of the Company s
Class A Common Stock. The distribution is payable September 17, 2026 to the shareholders of record at the close of business on August 20, 2026.
We had another solid quarter, with financial and operating results in line with our expectations, commented Brendan Cavanagh, President and
Chief Executive Officer. Carrier activity remained steady, with our customers both upgrading sites and expanding their networks through new colocations. With Auction 115 around the corner, we re excited about future network deployments
and partnering with our customers to cement the U.S. as a leader in wireless connectivity and 6G. In the second quarter, we saw increased new tower construction as we ramped up efforts in Central America building sites for Millicom and others. We
expect to continue seeing this production grow steadily throughout the year. Our balance sheet got even stronger as we completed our first investment grade bond offering, issuing $3.5 billion of senior unsecured notes, meaningfully reducing the
amount of secured debt and laying a solid foundation for future financings. We also replaced our prior secured revolving credit facility with a new $2.5 billion unsecured revolving credit facility. With our enhanced liquidity and investment
grade balance sheet, we expect to continue growing our dividend at the highest growth rate in the industry while investing in our portfolio and incremental shareholder returns through stock repurchases. We ended the quarter with net debt to Adjusted
EBITDA of 6.4x, in the middle of our target range of 6.0x to 7.0x, leaving us plenty of capacity to do both.
1
Operating Results
The table below details select financial results for the three months ended June 30, 2026 and comparisons to the prior year period.
Q2 2026
Q2 2025
$ Change
% Change
% ChangeexcludingFX (1)
Consolidated
($ in millions, except per share amounts)
Site leasing revenue
$
663.9
$
631.8
$
32.1
5.1
%
3.0
%
Site development revenue
51.4
67.2
(15.8
)
(23.5
%)
(23.5
%)
Site leasing segment operating profit
(2)
529.8
513.2
16.6
3.2
%
1.5
%
Tower cash flow (1)
524.9
511.2
13.7
2.7
%
0.9
%
Net cash interest expense
122.1
111.5
10.6
9.5
%
9.8
%
Net income (3)
196.5
225.7
(29.2
)
(12.9
%)
(5.2
%)
Earnings per share diluted
1.87
2.09
(0.22
)
(10.7
%)
(3.9
%)
Adjusted EBITDA (1)
483.8
475.5
8.3
1.8
%
0.0
%
AFFO (1)
324.4
342.1
(17.7
)
(5.2
%)
(7.5
%)
AFFO per share (1)
3.05
3.17
(0.12
)
(3.8
%)
(6.0
%)
(1)
See the reconciliations and other disclosures under Non-GAAP Financial Measures later in this
press release.
(2)
Site leasing contributed 98.2% and 97.4% of the Company s total operating profit in the second quarter of
2026 and 2025, respectively.
(3)
Net income includes an $8.0 million gain and $30.4 million gain, net of taxes, on the
currency-related remeasurement of intercompany loans with foreign subsidiaries which are denominated in a currency other than the subsidiaries functional currencies for the second quarter of 2026 and 2025, respectively.
The table below details select financial results by segment for the three months ended June 30, 2026 and comparisons to the prior year period.
% Change
excluding
Q2 2026
Q2 2025
$ Change
% Change
FX
($ in millions)
Domestic site leasing revenue
$
452.5
$
469.8
$
(17.3
)
(3.7
%)
(3.7
%)
Domestic cash site leasing revenue
(1)
450.2
467.4
(17.2
)
(3.7
%)
(3.7
%)
Domestic site leasing segment operating profit
381.0
400.4
(19.4
)
(4.8
%)
(4.8
%)
Domestic site leasing tower cash flow
(1)
377.5
396.1
(18.6
)
(4.7
%)
(4.7
%)
Int l site leasing revenue
211.4
162.0
49.4
30.5
%
22.4
%
Int l cash site leasing revenue
(1)
210.4
163.7
46.7
28.5
%
20.3
%
Int l site leasing segment operating profit
148.8
112.8
36.0
31.9
%
24.0
%
Int l site leasing tower cash flow
(1)
147.4
115.1
32.3
28.0
%
20.1
%
(1)
See the reconciliations and other disclosures under Non-GAAP
Financial Measures later in this press release.
2
The table below details key margins for the three months ended June 30, 2026 and comparisons to the
prior year period.
Q2 2026
Q2 2025
Tower Cash Flow Margin (1)
79.5
%
81.0
%
Adjusted EBITDA Margin (1)
68.0
%
68.1
%
(1)
See the reconciliations and other disclosures under Non-GAAP
Financial Measures later in this press release.
Investing Activities
During the second quarter of 2026, SBA acquired 6 communication sites for total cash consideration of $10.5 million. SBA also built 109 towers during the
second quarter of 2026. As of June 30, 2026, SBA owned or operated 46,390 communication sites, 17,362 of which are located in the United States and its territories and 29,028 of which are located internationally. In addition, the Company spent
$17.2 million to purchase land and easements and to extend lease terms. Total cash capital expenditures for the second quarter of 2026 were $91.2 million, consisting of $15.8 million of
non-discretionary cash capital expenditures (tower maintenance and general corporate) and $75.4 million of discretionary cash capital expenditures (new tower builds, tower augmentations, acquisitions, and
purchasing land and easements). As of the date of this press release, the Company, subsequent to quarter end, purchased or is under contract to purchase
58 communication sites for an aggregate consideration of $28.8 million in cash, which it expects to close by the end of the fourth quarter of 2026.
Financing Activities and Liquidity SBA ended the second
quarter of 2026 with $12.8 billion of total debt, $9.8 billion of total secured debt, $0.4 billion of cash and cash equivalents, short-term restricted cash, and short-term investments, and $12.4 billion of Net Debt. SBA s
Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 6.4x and 4.9x, respectively. On July 23, 2026, the Company, issued
$1.35 billion of 4.875% unsecured senior notes due January 15, 2030, $1.35 billion of 5.150% unsecured senior notes due July 15, 2031, and $0.8 billion of 5.450% unsecured senior notes due July 15, 2033. The 2026 Senior
Notes have a blended interest rate of 5.113% and a weighted average maturity of 4.9 years. Net proceeds from this offering were used to repay the aggregate principal amount outstanding on the Revolving Credit Facility ($1.0 billion), the 2024 Term
Loan ($2.2 billion), and for general corporate purposes. In connection with the repayment, the Company terminated its existing Senior Credit Agreement and entered into a New Senior Credit Agreement providing for an expanded $2.5 billion senior
unsecured revolving credit facility (the 2026 Revolving Credit Facility ). The 2026 Revolving Credit Facility has a maturity date of
July 23, 2031. Amounts borrowed under the 2026 Revolving Credit Facility accrue interest, at the Company s election, at either (1) Term SOFR plus a margin that ranges from 75.0 basis points to 137.5 basis points or (2) the Base
Rate plus a margin that ranges from 0.0 basis points to 37.5 basis points, in each case based on the Company s credit ratings. In addition, the Company is required to pay a commitment fee of between 0.08% to 0.20% per annum on the amount of
unused commitments based on the Company s credit ratings. Based on the Company s current credit ratings, borrowings under the 2026 Revolving
Credit Facility accrue interest at Term SOFR plus 100.0 basis points and the Company is required to pay a commitment fee of 0.11% per annum on the amount of unused commitments.
3
As of the date of this press release, the Company had no amounts outstanding under the 2026 Revolving Credit
Facility. As of the date of this press release, the Company had $1.1 billion of authorization remaining under its stock repurchase plan.
In the second quarter of 2026, the Company declared and paid a cash dividend of $132.7 million.
Outlook The Company is updating its full year 2026
Outlook for anticipated results. The 2026 Outlook provided is based on a number of assumptions that the Company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to
differ from these forward-looking statements is set forth below and in the Company s filings with the Securities and Exchange Commission. The
Company s full year 2026 Outlook assumes the acquisitions of only those communication sites under contract which are expected to close in 2026 at the time of this press release. The Company may spend additional capital in 2026 on acquiring
revenue producing assets not yet identified or under contract, the impact of which is not reflected in the 2026 Outlook. The 2026 Outlook also does not contemplate any additional repurchases of the Company s stock or additional debt financings
during the remainder of 2026 (other than the refinancing of the 2021-1C Tower Securities as discussed below), although the Company may ultimately spend capital to repurchase stock or issue new debt during the
remainder of the year. The Company s 2026 Outlook assumes an average foreign currency exchange rate of 5.10 Brazilian Reais to 1.0
U.S. Dollar, 2,560 Tanzanian Shillings to 1.0 U.S. Dollar, and 16.40 South African Rand to 1.0 U.S. Dollar throughout the last two quarters of 2026.
Change from
Change from
April 29, 2026
April 29, 2026
Outlook
(in millions, except per share amounts)
Full Year 2026
Outlook (7)
Excluding FX (7)
Site leasing revenue
$
2,651.0
to
$
2,676.0
$
2.0
$
3.0
Site development revenue
$
190.0
to
$
210.0
$
$
Total revenues
$
2,841.0
to
$
2,886.0
$
2.0
$
3.0
Tower Cash Flow (1)
$
2,091.0
to
$
2,111.0
$
(1.0
)
$
Adjusted EBITDA (1)
$
1,920.0
to
$
1,940.0
$
(1.0
)
$
Net cash interest expense (2)(3)
$
490.0
to
$
498.0
$
(2.0
)
$
(2.0
)
Non-discretionary cash capital expenditures (4)
$
65.0
to
$
75.0
$
(2.0
)
$
(2.0
)
AFFO (1)
$
1,270.0
to
$
1,318.0
$
1.0
$
2.0
AFFO per share (1) (5)
$
11.95
to
$
12.40
$
0.02
$
0.03
Discretionary cash capital expenditures
(6)
$
455.0
to
$
475.0
$
25.0
$
25.0
(1)
See the reconciliation of this non-GAAP financial measure presented
below under Non-GAAP Financial Measures.
(2)
Net cash interest expense is defined as interest expense less interest income. Net cash interest expense does
not include amortization of deferred financing fees or non-cash interest expense.
(3)
For purposes of the Outlook, the Company has assumed that the $1,165.0 million 2021-1C Tower Securities (which have an anticipated repayment date of November 9, 2026) would be refinanced prior to the fourth quarter at a fixed rate of 5.25%; however, the Company does not currently have any
specific refinancing plans and the actual date and rate of any refinancing is subject to market conditions.
(4)
Consists of tower maintenance and general corporate capital expenditures.
4
(5)
Outlook for AFFO per share is calculated by dividing the Company s outlook for AFFO by an assumed
weighted average number of diluted common shares of 106.3 million. Outlook does not include the impact of any potential future repurchases of the Company s stock during 2026.
(6)
Consists of new tower builds, tower augmentations, communication site acquisitions and ground lease purchases.
Does not include easements or payments to extend lease terms and expenditures for acquisitions of revenue producing assets not under contract at the date of this press release.
(7)
Changes from prior outlook are measured based on the midpoint of outlook ranges provided.
Bridge of 2025 Total Site Leasing Revenue to 2026 Outlook
The table below presents a bridge of the Company s 2025 Site Leasing Revenue to the Company s 2026 Outlook for 2026 Site Leasing Revenue by
reportable segment.
(in millions)
Consolidated
Domestic
International
2025 Total Site Leasing Revenue
$
2,571
$
1,866
$
705
(+) New Leases and Amendments
52
to
58
33
to
37
19
to
21
(+) Escalations
71
to
74
51
to
52
20
to
22
(-) Sprint Consolidation Churn
(56
)
to
(55
)
(56
)
to
(55
)
to
(-) EchoStar Churn
(56
)
to
(56
)
(56
)
to
(56
)
to
(-) Regular Churn
(64
)
to
(57
)
(24
)
to
(21
)
(40
)
to
(36
)
(+) Non-Organic Revenue (1)
86
to
86
4
to
4
82
to
82
(+ / -) Straight-line Revenue
5
to
10
2
to
5
3
to
5
(+ / -) FX
39
to
39
to
39
to
39
(+ / -) Other (2)
3
to
6
(7
)
to
(5
)
10
to
11
2026 Total Site Leasing Revenue
$
2,651
to
$
2,676
$
1,813
to
$
1,827
$
838
to
$
849
(1)
Includes contributions from acquisitions and new infrastructure builds.
(2)
Includes pass-through reimbursable expenses, amortization of capital contributions for tower augmentations,
managed and non-macro business and other miscellaneous items.
Conference Call Information
SBA Communications Corporation will host a conference call on Monday, August 3, 2026 at 5:00 PM (EDT) to discuss the quarterly results. The call
may be accessed as follows:
When:
Monday, August 3, 2026 at 5:00 PM (EDT)
Dial-in Number:
(202) 735-3323
Access Code:
5982682
Conference Name:
SBA Second quarter 2026 results
Replay Available:
August 4, 2026 at 12:01 AM to September 2, 2026 at 12:00 AM (TZ: Eastern)
Replay Number:
(855) 921-4483
Internet Access:
www.sbasite.com
Information Concerning Forward-Looking Statements
This press release and the Company s earnings call include forward-looking statements, including statements regarding the Company s expectations or
beliefs regarding (i) its outlook for financial and operational performance in 2026, the assumptions it made and the drivers contributing to its full year 2026 Outlook, (ii) the drivers of growth for wireless antennae in the U.S. and in
each of our international markets, the ability of the Company to capitalize on such growth and the impact on the Company s future financial and operational outlook, (iii) the ability to execute
5
its growth strategies and the impacts to its financial performance, (iv) the timing of closing for currently pending acquisitions, (v) tower portfolio growth and its long-term growth
potential, including the drivers of its organic growth, (vi) its capital allocation policy, including the use of capital for portfolio growth, share repurchases, and dividends, (vii) the strength of its balance sheet and ability to
generate significant free cash flow, (viii) its customers ongoing network investments and new spectrum and future auctions, (ix) domestic and international churn in 2026 and future years, (x) growth in tower construction,
(xi) its ability to become a leader in U.S. wireless connectivity and 6G, (xii) its leading position in Central America, and (xiii) backlogs and carrier activity for the remainder of 2026.
The Company wishes to caution readers that these forward-looking statements may be affected by the risks and uncertainties in the Company s business as
well as other important factors that may have affected and could in the future affect the Company s actual results and could cause the Company s actual results for subsequent periods to differ materially from those expressed in any
forward-looking statement made by or on behalf of the Company. With respect to the Company s expectations regarding all of these statements, including its financial and operational guidance, such risk factors include, but are not limited to:
(1) the impact of macro-economic conditions, including high interest rates, unemployment rates, tariffs, inflation, consumer confidence and financial market volatility on (a) the ability and willingness of wireless service providers to
maintain or increase their capital expenditures, (b) the Company s business and results of operations, and on foreign currency exchange rates and (c) consumer discretionary income and demand for wireless services, (2) the
Company s ability to recognize anticipated revenues, tower cash flows and other anticipated benefits from its acquisitions, (3) the economic climate for the wireless communications industry in general and the wireless communications
infrastructure providers in the United States and in the Company s other international markets; (4) the Company s ability to accurately identify and manage any risks associated with its acquired sites, to effectively integrate such
sites into its business and to achieve the anticipated financial results; (5) the Company s ability to secure and retain as many site leasing tenants as planned at anticipated lease rates; (6) the Company s ability to manage
expenses and cash capital expenditures at anticipated levels; (7) the impact of continued consolidation among wireless service providers in the U.S. and internationally, on the Company s leasing revenue, including churn; (8) the
Company s ability to successfully manage the risks associated with international operations, including risks associated with foreign currency exchange rates; (9) the Company s ability to secure and deliver anticipated services
business at contemplated margins; (10) the Company s ability to acquire land underneath towers on terms that are accretive; (11) the Company s ability to obtain future financing at commercially reasonable rates or at all;
(12) the Company s ability to achieve the new builds targets included in its anticipated annual portfolio growth goals, which will depend, among other things, on obtaining zoning and regulatory approvals, availability and cost of labor
and supplies, and other factors beyond the Company s control that could affect the Company s ability to build additional towers in 2026; (13) whether technology upgrades, spectrum auctions, consumer demand for fixed wireless and other
developments will drive demand in the US and in the Company s other international markets for wireless services, wireless antennas and towers as anticipated; (14) the ability of our customers to perform under their financial and
contractual obligations; and (15) the Company s ability to meet its total portfolio growth, which will depend, in addition to the new build risks, on the Company s ability to identify and acquire sites at prices and upon terms that
will provide accretive portfolio growth, competition from third parties for such acquisitions and our ability to negotiate the terms of, and acquire, these potential tower portfolios on terms that meet our internal return criteria.
With respect to its expectations regarding the ability to close, and realize the benefits of, pending acquisitions, these factors also include each party
satisfactorily completing due diligence, the ability to receive required regulatory approval, the ability and willingness of each party to fulfill their respective closing conditions and their contractual obligations and, with respect to the
Company s acquisitions, the amount and quality of due diligence that the Company is able to complete prior to closing of any acquisition and the availability of cash on hand or borrowing capacity under the Revolving Credit Facility to fund the
consideration, its ability to accurately anticipate the future performance of the acquired towers and any challenges or costs associated with the integration of such towers. With respect to the repurchases under the Company s stock repurchase
program, the amount of shares repurchased, if any, and the timing of such repurchases will depend on, among other things, the trading price of the Company s common stock, which may be positively or negatively impacted by the repurchase
program, market and business
6
conditions, the availability of stock, the Company s financial performance or determinations following the date of this announcement in order to use the Company s funds for other
purposes. Furthermore, the Company s forward-looking statements and its 2026 outlook assumes that the Company continues to qualify for treatment as a REIT for U.S. federal income tax purposes and that the Company s business is currently
operated in a manner that complies with the REIT rules and that it will be able to continue to comply with and conduct its business in accordance with such rules. In addition, these forward-looking statements and the information in this press
release is qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company s Securities and Exchange Commission filings, including the Company s most recently filed Annual Report on Form 10-K. This press release contains non-GAAP financial measures. Reconciliation
of each of these non-GAAP financial measures and the other Regulation G information is presented below under Non-GAAP Financial Measures.
This press release will be available on our website at www.sbasite.com.
About SBA Communications Corporation SBA Communications
Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 46,000 communications sites
throughout the Americas and in Africa, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and one of the top Real Estate Investment Trusts (REITs) by market capitalization. For more information, please visit:
www.sbasite.com. Contacts Louis Friend, CFA
VP, Finance & Capital Markets 561-322-7850 Maria Alexandra Velez
VP, Corporate Affairs 561-981-7352
7
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) (in thousands, except per share amounts)
For the three months
For the six months
ended June 30,
ended June 30,
2026
2025
2026
2025
Revenues:
Site leasing
$
663,885
$
631,788
$
1,320,034
$
1,247,997
Site development
51,389
67,193
98,678
115,232
Total revenues
715,274
698,981
1,418,712
1,363,229
Operating expenses:
Cost of revenues (exclusive of depreciation, accretion, and amortization shown below):
Cost of site leasing
134,076
118,571
265,987
234,049
Cost of site development
41,926
53,525
81,350
91,714
Selling, general, and administrative expenses
(1)
77,548
71,022
148,096
137,241
Acquisition and new business initiatives related adjustments and expenses
5,926
5,887
14,016
13,266
Asset impairment and decommission costs
22,566
45,231
51,867
82,257
Depreciation, accretion, and amortization
81,371
69,964
162,686
135,012
Total operating expenses
363,413
364,200
724,002
693,539
Operating income
351,861
334,781
694,710
669,690
Other income (expense):
Interest income
5,631
8,155
10,838
18,935
Interest expense
(127,754
)
(119,658
)
(256,282
)
(223,805
)
Non-cash interest expense
(2,486
)
(1,233
)
(3,259
)
(9,581
)
Amortization of deferred financing fees
(5,269
)
(5,415
)
(10,528
)
(10,849
)
Other income, net
10,482
44,123
33,004
76,286
Total other expense, net
(119,396
)
(74,028
)
(226,227
)
(149,014
)
Income before income taxes
232,465
260,753
468,483
520,676
Provision for income taxes
(35,995
)
(35,059
)
(87,107
)
(77,078
)
Net income
196,470
225,694
381,376
443,598
Net loss attributable to noncontrolling interests
2,307
100
2,235
2,927
Net income attributable to SBA Communications Corporation
$
198,777
$
225,794
$
383,611
$
446,525
Net income per common share attributable to SBA
Communications Corporation:
Basic
$
1.87
$
2.10
$
3.62
$
4.15
Diluted
$
1.87
$
2.09
$
3.61
$
4.14
Weighted-average number of common shares
Basic
106,073
107,531
105,945
107,637
Diluted
106,264
107,797
106,188
107,968
(1)
Includes non-cash compensation of $26,051 and $20,839 for the three
months ended June 30, 2026 and 2025, respectively, and $44,337 and $35,914 for the six months ended June 30, 2026 and 2025, respectively.
8
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par values)
June 30,
December 31,
2026
2025
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
327,051
$
264,568
Restricted cash
29,007
167,804
Accounts receivable, net
175,976
171,256
Costs and estimated earnings in excess of billings on uncompleted contracts
24,577
28,152
Prepaid expenses and other current assets
188,161
141,651
Total current assets
744,772
773,431
Property and equipment, net
3,452,615
3,401,799
Intangible assets, net
2,867,780
2,882,117
Operating lease
right-of-use assets, net
2,695,380
2,540,229
Acquired and other
right-of-use assets, net
1,328,891
1,325,443
Other assets
652,882
651,993
Total assets
$
11,742,320
$
11,575,012
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS DEFICIT
Current liabilities:
Accounts payable
$
70,062
$
73,034
Accrued expenses
89,003
93,502
Current maturities of long-term debt
3,578,556
1,935,802
Deferred revenue
156,812
117,309
Accrued interest
66,342
65,036
Current lease liabilities
306,792
299,604
Other current liabilities
69,078
94,014
Total current liabilities
4,336,645
2,678,301
Long-term liabilities:
Long-term debt, net
9,150,666
10,964,466
Long-term lease liabilities
2,173,052
2,119,258
Other long-term liabilities
626,609
588,244
Total long-term liabilities
11,950,327
13,671,968
Redeemable noncontrolling interests
85,202
78,262
Shareholders deficit:
Preferred stock - par value $0.01, 30,000 shares authorized, no shares issued or
outstanding
Common stock - Class A, par value $0.01, 400,000 shares authorized, 106,088 shares and
105,666 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
1,061
1,057
Additional paid-in capital
3,112,691
3,059,427
Accumulated deficit
(7,135,584
)
(7,249,905
)
Accumulated other comprehensive loss, net
(608,022
)
(664,098
)
Total shareholders deficit
(4,629,854
)
(4,853,519
)
Total liabilities, redeemable noncontrolling interests, and shareholders deficit
$
11,742,320
$
11,575,012
9
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) (in thousands)
For the three months
ended June 30,
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
196,470
$
225,694
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, accretion, and amortization
81,371
69,964
Gain on remeasurement of U.S. denominated intercompany loans
(11,784
)
(45,265
)
Non-cash compensation expense
26,798
21,516
Non-cash asset impairment and decommission costs
21,091
42,994
Deferred and non-cash income tax provision
11,497
26,185
Other non-cash items reflected in the Statements of
Operations
12,262
14,376
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable and costs and estimated earnings in excess of billings on uncompleted
contracts, net
(16,277
)
(31,125
)
Prepaid expenses and other assets
(46
)
1,076
Operating lease
right-of-use assets, net
36,208
30,373
Accounts payable and accrued expenses
13,547
2,159
Accrued interest
27,794
40,445
Long-term lease liabilities
(35,656
)
(32,035
)
Other liabilities
43,903
1,741
Net cash provided by operating activities
407,178
368,098
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions
(28,788
)
(589,222
)
Capital expenditures
(62,419
)
(55,865
)
Proceeds from sale of investments, net
81,599
64,069
Other investing activities
(4,113
)
56
Net cash used in investing activities
(13,721
)
(580,962
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under Revolving Credit Facility
(230,000
)
80,000
Payment of dividends on common stock
(132,651
)
(119,365
)
Repurchase and retirement of common stock
(130,696
)
Other financing activities
(4,079
)
11,783
Net cash used in financing activities
(366,730
)
(158,278
)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
1,520
7,559
NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
28,247
(363,583
)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:
Beginning of period
332,512
664,106
End of period
$
360,759
$
300,523
10
Selected Capital Expenditure Detail
For the three
For the six
months ended
months ended
June 30, 2026
June 30, 2026
(in thousands)
Construction and related costs
$
36,074
$
61,607
Augmentation and tower upgrades
10,501
20,642
Non-discretionary capital expenditures:
Tower maintenance
14,448
25,702
General corporate
1,396
2,865
Total non-discretionary capital expenditures
15,844
28,567
Total capital expenditures
$
62,419
$
110,816
Communication Site Portfolio Summary
Domestic
International
Total
Sites owned at March 31, 2026
17,378
28,980
46,358
Sites acquired during the second quarter
6
6
Sites built during the second quarter
10
99
109
Sites decommissioned/reclassified/sold during the second quarter
(32
)
(51
)
(83
)
Sites owned at June 30, 2026
17,362
29,028
46,390
Segment Operating Profit and Segment Operating Profit Margin
Domestic site leasing and International site leasing are the two segments within our site leasing business. Segment operating profit is a key business metric
and one of our two measures of segment profitability. The calculation of Segment operating profit for each of our segments is set forth below.
Domestic Site Leasing
Int l Site Leasing
Site Development
For the three months
For the three months
For the three months
ended June 30,
ended June 30,
ended June 30,
2026
2025
2026
2025
2026
2025
(in thousands)
Segment revenue
$
452,448
$
469,807
$
211,437
$
161,981
$
51,389
$
67,193
Segment cost of revenues (excluding depreciation, accretion, and amort.)
(71,427
)
(69,421
)
(62,649
)
(49,150
)
(41,926
)
(53,525
)
Segment operating profit
$
381,021
$
400,386
$
148,788
$
112,831
$
9,463
$
13,668
Segment operating profit margin
84.2
%
85.2
%
70.4
%
69.7
%
18.4
%
20.3
%
Non-GAAP Financial Measures
The press release contains non-GAAP financial measures including (i) Cash Site Leasing Revenue, Tower Cash Flow,
and Tower Cash Flow Margin; (ii) Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin; (iii) Funds from Operations ( FFO ), Adjusted Funds from Operations ( AFFO ), and AFFO per share;
(iv) Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio (collectively, our Non-GAAP Debt Measures ); and (v) certain financial metrics after eliminating the impact of
changes in foreign currency exchange rates (collectively, our Constant Currency Measures ). We have included these non-GAAP financial measures because we believe that they provide investors additional tools in understanding our financial performance and condition.
11
Specifically, we believe that:
(1) Cash Site Leasing Revenue and Tower Cash Flow are useful indicators of the performance of our site leasing operations;
(2) Adjusted EBITDA is useful to investors or other interested parties in evaluating our financial performance. Adjusted EBITDA is the primary measure used by
management (1) to evaluate the economic productivity of our operations and (2) for purposes of making decisions about allocating resources to, and assessing the performance of, our operations. Management believes that Adjusted EBITDA helps
investors or other interested parties meaningfully evaluate and compare the results of our operations (1) from period to period and (2) to our competitors, by excluding the impact of our capital structure (primarily interest charges from
our outstanding debt) and asset base (primarily depreciation, amortization and accretion) from our financial results. Management also believes Adjusted EBITDA is frequently used by investors or other interested parties in the evaluation of REITs. In
addition, Adjusted EBITDA is similar to the measure of current financial performance generally used in our debt covenant calculations. Adjusted EBITDA should be considered only as a supplement to net income computed in accordance with GAAP as a
measure of our performance; (3) FFO, AFFO and AFFO per share, which are metrics used by our public company peers in the communication site industry,
provide investors useful indicators of the financial performance of our business and permit investors an additional tool to evaluate the performance of our business against those of our two principal competitors. FFO, AFFO, and AFFO per share are
also used to address questions we receive from analysts and investors who routinely assess our operating performance on the basis of these performance measures, which are considered industry standards. We believe that FFO helps investors or other
interested parties meaningfully evaluate financial performance by excluding the impact of our asset base (primarily depreciation, amortization and accretion and asset impairment and decommission costs). We believe that AFFO and AFFO per share help
investors or other interested parties meaningfully evaluate our financial performance as they include (1) the impact of our capital structure (primarily interest expense on our outstanding debt) and (2) sustaining capital expenditures and
exclude the impact of (1) our asset base (primarily depreciation, amortization and accretion and asset impairment and decommission costs) and (2) certain non-cash items, including straight-lined
revenues and expenses related to fixed escalations and rent free periods and the non-cash portion of our reported tax provision. GAAP requires rental revenues and expenses related to leases that contain
specified rental increases over the life of the lease to be recognized evenly over the life of the lease. In accordance with GAAP, if payment terms call for fixed escalations, or rent free periods, the revenue or expense is recognized on a
straight-lined basis over the fixed, non-cancelable term of the contract. We only use AFFO as a performance measure. AFFO should be considered only as a supplement to net income computed in accordance with
GAAP as a measure of our performance and should not be considered as an alternative to cash flows from operations or as residual cash flow available for discretionary investment. We believe our definition of FFO is consistent with how that term is
defined by the National Association of Real Estate Investment Trusts ( NAREIT ) and that our definition and use of AFFO and AFFO per share is consistent with those reported by the other communication site companies;
(4) Our Non-GAAP Debt Measures provide investors a more complete understanding of our net debt and leverage position
as they include the full principal amount of our debt which will be due at maturity and, to the extent that such measures are calculated on Net Debt are net of our cash and cash equivalents, short-term restricted cash, and short-term investments;
and (5) Our Constant Currency Measures provide management and investors the ability to evaluate the performance of the business without the impact of
foreign currency exchange rate fluctuations. In addition, Tower Cash Flow, Adjusted EBITDA, and our Non-GAAP Debt
Measures are components of the calculations used by our lenders to determine compliance with certain covenants under our prior Senior Credit Agreement, New Senior Credit Agreement and indentures relating to our 2020 Senior Notes, 2021 Senior Notes,
and 2026 Senior Notes. These non-GAAP financial measures are not intended to be an alternative to any of the financial measures provided in our results of operations or our balance sheet as determined in
accordance with GAAP.
12
Financial Metrics after Eliminating the Impact of Changes In Foreign Currency Exchange Rates
We eliminate the impact of changes in foreign currency exchange rates for each of the financial metrics listed in the table below by dividing the current
period s financial results by the average monthly exchange rates of the prior year period, and by eliminating the impact of the remeasurement of our intercompany loans. The table below provides the reconciliation of the reported year-over-year
change of each of such measures to the change after eliminating the impact of changes in foreign currency exchange rates to such measure.
Second quarter
2026 year
Foreign
Change excluding
over year
currency
foreign
change
impact
currency impact
Total site leasing revenue
5.1
%
2.1
%
3.0
%
Total cash site leasing revenue
4.7
%
2.2
%
2.5
%
Int l cash site leasing revenue
28.5
%
8.2
%
20.3
%
Total site leasing segment operating profit
3.2
%
1.7
%
1.5
%
Int l site leasing segment operating profit
31.9
%
7.9
%
24.0
%
Total site leasing tower cash flow
2.7
%
1.8
%
0.9
%
Int l site leasing tower cash flow
28.0
%
7.9
%
20.1
%
Net cash interest expense
9.5
%
(0.3
%)
9.8
%
Net income
(12.9
%)
(7.7
%)
(5.2
%)
Earnings per share diluted
(10.7
%)
(6.8
%)
(3.9
%)
Adjusted EBITDA
1.8
%
1.8
%
0.0
%
AFFO
(5.2
%)
2.3
%
(7.5
%)
AFFO per share
(3.8
%)
2.2
%
(6.0
%)
Cash Site Leasing Revenue, Tower Cash Flow, and Tower Cash Flow Margin
The table below sets forth the reconciliation of Cash Site Leasing Revenue and Tower Cash Flow to their most comparable GAAP measurement and Tower Cash Flow
Margin, which is calculated by dividing Tower Cash Flow by Cash Site Leasing Revenue.
Domestic Site Leasing
Int l Site Leasing
Total Site Leasing
For the three months
For the three months
For the three months
ended June 30,
ended June 30,
ended June 30,
2026
2025
2026
2025
2026
2025
(in thousands)
Site leasing revenue
$
452,448
$
469,807
$
211,437
$
161,981
$
663,885
$
631,788
Non-cash straight-line leasing revenue
(2,230
)
(2,396
)
(1,062
)
1,749
(3,292
)
(647
)
Cash site leasing revenue
450,218
467,411
210,375
163,730
660,593
631,141
Site leasing cost of revenues (excluding depreciation, accretion, and amortization)
(71,427
)
(69,421
)
(62,649
)
(49,150
)
(134,076
)
(118,571
)
Non-cash straight-line ground lease expense
(1,293
)
(1,917
)
(369
)
499
(1,662
)
(1,418
)
Tower Cash Flow
$
377,498
$
396,073
$
147,357
$
115,079
$
524,855
$
511,152
Tower Cash Flow Margin
83.8
%
84.7
%
70.0
%
70.3
%
79.5
%
81.0
%
13
Forecasted Tower Cash Flow for Full Year 2026
The table below sets forth the reconciliation of forecasted Tower Cash Flow set forth in the Outlook section to its most comparable GAAP measurement for the
full year 2026:
Full Year 2026
(in millions)
Site leasing revenue
$
2,651.0
to
$
2,676.0
Non-cash straight-line leasing revenue
(16.5
)
to
(11.5
)
Cash site leasing revenue
2,634.5
to
2,664.5
Site leasing cost of revenues (excluding depreciation, accretion, and amortization)
(536.0
)
to
(551.0
)
Non-cash straight-line ground lease expense
(7.5
)
to
(2.5
)
Tower Cash Flow
$
2,091.0
to
$
2,111.0
Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin
The table below sets forth the reconciliation of Adjusted EBITDA to its most comparable GAAP measurement.
For the three months
ended June 30,
2026
2025
(in thousands)
Net income
$
196,470
$
225,694
Non-cash straight-line leasing revenue
(3,292
)
(647
)
Non-cash straight-line ground lease expense
(1,662
)
(1,418
)
Non-cash compensation
26,798
21,516
Other income, net
(10,482
)
(44,123
)
Acquisition and new business initiatives related adjustments and expenses
5,926
5,887
Asset impairment and decommission costs
22,566
45,231
Interest income
(5,631
)
(8,155
)
Total interest expense (1)
135,509
126,306
Depreciation, accretion, and amortization
81,371
69,964
Provision for taxes (2)
36,242
35,229
Adjusted EBITDA
$
483,815
$
475,484
Annualized Adjusted EBITDA (3)
$
1,935,260
$
1,901,936
(1)
Total interest expense includes interest expense, non-cash interest
expense, and amortization of deferred financing fees.
(2)
Includes franchise and gross receipts taxes reflected in the Statements of Operations in selling, general and
administrative expenses.
(3)
Annualized Adjusted EBITDA is calculated as Adjusted EBITDA for the most recent quarter multiplied by four.
The calculation of Adjusted EBITDA Margin is as follows:
For the three months
ended June 30,
2026
2025
(in thousands)
Total revenues
$
715,274
$
698,981
Non-cash straight-line leasing revenue
(3,292
)
(647
)
Total revenues minus non-cash straight-line leasing
revenue
$
711,982
$
698,334
Adjusted EBITDA
$
483,815
$
475,484
Adjusted EBITDA Margin
68.0
%
68.1
%
14
Forecasted Adjusted EBITDA for Full Year 2026
The table below sets forth the reconciliation of the forecasted Adjusted EBITDA set forth in the Outlook section to its most comparable GAAP measurement for
the full year 2026:
Full Year 2026
(in millions)
Net income
$
788.0
to
$
841.0
Non-cash straight-line leasing revenue
(16.5
)
to
(11.5
)
Non-cash straight-line ground lease expense
(7.5
)
to
(2.5
)
Non-cash compensation
87.0
to
82.0
Other income, net
(48.0
)
to
(48.0
)
Acquisition and new business initiatives related adjustments and expenses
28.5
to
23.5
Asset impairment and decommission costs
92.0
to
87.0
Interest income
(26.0
)
to
(16.0
)
Total interest expense (1)
554.0
to
536.0
Depreciation, accretion, and amortization
342.5
to
332.5
Provision for taxes (2)
126.0
to
116.0
Adjusted EBITDA
$
1,920.0
to
$
1,940.0
(1)
Total interest expense includes interest expense, non-cash interest
expense, and amortization of deferred financing fees.
(2)
Includes projections for franchise taxes and gross receipts taxes, which will be reflected in the Statement of
Operations in Selling, general, and administrative expenses.
15
Funds from Operations ( FFO ), Adjusted Funds from Operations
( AFFO ), and AFFO per share The tables below set forth the reconciliations of FFO, AFFO, and AFFO per share
to their most comparable GAAP measurement.
For the three months
ended June 30,
2026
2025
(in thousands)
($per share)
(in thousands)
($per share)
Net income
$
196,470
$
1.85
$
225,694
$
2.09
Real estate related depreciation, amortization, and accretion
79,520
0.75
68,250
0.63
Asset impairment and decommission costs
22,566
0.21
45,231
0.42
FFO
$
298,556
$
2.81
$
339,175
$
3.14
Adjustments to FFO:
Non-cash straight-line leasing revenue
(3,292
)
(0.03
)
(647
)
(0.01
)
Non-cash straight-line ground lease expense
(1,662
)
(0.02
)
(1,418
)
(0.01
)
Non-cash compensation
26,798
0.25
21,516
0.20
Adjustment for non-cash portion of tax provision and other
tax adjustments (1)
14,768
0.14
27,211
0.25
Non-real estate related depreciation, amortization, and
accretion
1,851
0.02
1,714
0.02
Amortization of deferred financing costs and debt discounts and
non-cash interest expense
7,755
0.07
6,648
0.06
Other income, net
(10,482
)
(0.10
)
(44,123
)
(0.40
)
Acquisition and new business initiatives related adjustments and expenses
5,926
0.06
5,887
0.05
Non-discretionary cash capital expenditures
(15,844
)
(0.15
)
(13,846
)
(0.13
)
AFFO
$
324,374
$
3.05
$
342,117
$
3.17
Adjustments for joint venture partner interest
(1,850
)
(0.02
)
(1,715
)
(0.02
)
AFFO attributable to SBA Communications Corporation
$
322,524
$
3.03
$
340,402
$
3.15
Diluted weighted average number of common shares
106,264
107,797
(1)
The three months ended June 30, 2026 includes $2.8 million in taxes related to the sale of
substantially all of our operations in Canada. We believe that these tax payments are nonrecurring, and do not believe these are an indication of our operating performance. Accordingly, we believe it is more meaningful to present AFFO and AFFO
attributable to SBA Communications Corporation excluding these amounts.
16
Forecasted AFFO for the Full Year 2026
The tables below set forth the reconciliations of the forecasted AFFO and AFFO per share set forth in the Outlook section to their most comparable GAAP
measurements for the full year 2026:
(in millions, except per share amounts)
Full Year 2026
(in millions)
($per share)
Net income
$
788.0
to
$
841.0
$
7.41
to
$
7.91
Real estate related depreciation, amortization, and accretion
331.5
to
326.5
3.12
to
3.07
Asset impairment and decommission costs
92.0
to
87.0
0.87
to
0.82
FFO
$
1,211.5
to
$
1,254.5
$
11.40
to
$
11.80
Adjustments to FFO:
Non-cash straight-line leasing revenue
(16.5
)
to
(11.5
)
(0.16
)
to
(0.11
)
Non-cash straight-line ground lease expense
(7.5
)
to
(2.5
)
(0.07
)
to
(0.02
)
Non-cash compensation
87.0
to
82.0
0.82
to
0.77
Adjustment for non-cash portion of tax provision and other
tax adjustments (1)
49.0
to
49.0
0.46
to
0.46
Non-real estate related depreciation, amortization, and
accretion
11.0
to
6.0
0.10
to
0.06
Amortization of deferred financing costs and debt discounts and
non-cash interest expense
30.0
to
30.0
0.28
to
0.28
Other income, net
(48.0
)
to
(48.0
)
(0.45
)
to
(0.45
)
Acquisition and new business initiatives related adjustments and expenses
28.5
to
23.5
0.27
to
0.22
Non-discretionary cash capital expenditures
(75.0
)
to
(65.0
)
(0.70
)
to
(0.61
)
AFFO
$
1,270.0
to
$
1,318.0
$
11.95
to
$
12.40
Adjustments for joint venture partner interest
(4.0
)
to
(4.0
)
(0.04
)
to
(0.04
)
AFFO attributable to SBA Communications Corporation
$
1,266.0
to
$
1,314.0
$
11.91
to
$
12.36
Diluted weighted average number of common shares
(2)
106.3
to
106.3
(1)
Includes $8.6 million in taxes related to the sale of substantially all of our operations in Canada. We
believe that these tax payments are nonrecurring, and do not believe these are an indication of our operating performance. Accordingly, we believe it is more meaningful to present AFFO and AFFO attributable to SBA Communications Corporation
excluding these amounts.
(2)
Weighted average number of common shares does not contemplate any additional repurchases of the Company s
stock during 2026.
17
Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio
Net Debt is calculated using the notional principal amount of outstanding debt. Under GAAP policies, the notional principal amount of the Company s
outstanding debt is not necessarily reflected on the face of the Company s financial statements. The Net Debt and Leverage calculations are as
follows:
June 30,
2026
(in thousands)
2020-2C Tower Securities
$
600,000
2021-1C Tower Securities
1,165,000
2021-2C Tower Securities
895,000
2021-3C Tower Securities
895,000
2022-1C Tower Securities
850,000
2024-1C Tower Securities
1,450,000
2024-2C Tower Securities
620,000
Revolving Credit Facility
1,055,000
2024 Term Loan
2,248,250
Total secured debt
9,778,250
2020 Senior Notes
1,500,000
2021 Senior Notes
1,500,000
Total unsecured debt
3,000,000
Total debt
$
12,778,250
Leverage Ratio
Total debt
$
12,778,250
Less: Cash and cash equivalents, short-term restricted cash and short-term investments
(384,944
)
Net debt
$
12,393,306
Divided by: Annualized Adjusted EBITDA
$
1,935,260
Leverage Ratio
6.4x
Secured Leverage Ratio
Total secured debt
$
9,778,250
Less: Cash and cash equivalents, short-term restricted cash and short-term investments
(384,944
)
Net Secured Debt
$
9,393,306
Divided by: Annualized Adjusted EBITDA
$
1,935,260
Secured Leverage Ratio
4.9x
18
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