Company: UZF
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0000821130-25-000051
Chunk: 71

Company: ARRAY DIGITAL INFRASTRUCTURE, INC.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 7
Chunk 71
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9)%Adjusted EBITDA (Non-GAAP)1$174 $196 (11)%$355 $392 (9)%Capital expenditures2$77 $160 (52)%$127 $286 (55)%

N/M - Percentage change not meaningful

1Refer to Supplemental Information Relating to Non-GAAP Financial Measures within this MD&A for a reconciliation of this measure.

2Refer to Liquidity and Capital Resources within this MD&A for additional information on Capital expenditures.

8

Operating RevenuesThree Months Ended June 30, 2025 and 2024(Dollars in millions)Operating RevenuesSix Months Ended June 30, 2025 and 2024(Dollars in millions)

Service revenues consist of: 

▪Retail Service - Postpaid and prepaid charges for voice, data and value-added services and cost recovery surcharges 

▪Other Service - Amounts received from the Federal USF, inbound roaming, miscellaneous other service revenues and Internet of Things (IoT)

Equipment revenues consist of: 

▪Sales of wireless devices and related accessories to new and existing customers, agents, and third-party distributors 

Key components of changes in the statement of operations line items were as follows: 

Total operating revenues 

Retail service revenues decreased for the three and six months ended June 30, 2025, primarily as a result of a decrease in average postpaid and prepaid connections, partially offset by an increase in Postpaid ARPU. 

Equipment sales revenues decreased for the six months ended June 30, 2025, primarily driven by a lower volume of upgrades.

Wireless service providers have been aggressive promotionally and on price to attract and retain customers. This includes both traditional carriers and cable wireless companies. Additionally, other wireless service providers have more developed networks and coverage as well as lower costs per subscriber than Array, which has negatively affected Array's ability to compete over time. Operating revenues and Operating income have been negatively impacted by these factors in current and prior periods. 

System operations expenses

System operations expenses increased for the three months ended June 30, 2025, due primarily to an increase in maintenance, utilities, and cell site expenses, partially offset by decreases in customer usage and roaming expenses. 

System operations expenses decreased for the six months ended June 30, 2025, due primarily to a decrease in expenses driven by the shutdown of the 3G Code Division Multiple Access (CDMA) network in the first quarter of 2024 partially offset