Array Digital 2025 Q2 Earnings Surging Net Income Despite Revenue Drop

Array Digital reported its fiscal 2025 Q2 earnings on August 11, 2025, showing significant gains in profitability despite a modest decline in overall revenue.

Array Digital’s results beat expectations on the earnings front, with a substantial rise in net income and EPS. However, the company did not provide formal guidance for the current or future periods. The absence of forward-looking statements reflects ongoing strategic focus on major deals and regulatory processes.

Revenue
Array Digital’s total revenue fell by 1.2% to $916 million in Q2 2025 compared to $927 million in Q2 2024. The decline was largely due to underperformance in physical sales channels, including owned stores, wholesale, and other categories, despite strong online sales. Service revenue stood at $736 million, driven by ongoing operations and franchise agreements. Sales from owned stores totaled $17.78 billion, while sales to and fees from franchisees and affiliates reached $2.69 billion. Equipment sales amounted to $180 million. Online sales grew to $2.48 billion, highlighting the continued shift toward digital commerce. Wholesale sales totaled $80 million, and other sales were reported at $58 million, resulting in total net sales of $23.09 billion.

Earnings/Net Income
Array Digital’s profitability surged in Q2 2025, with EPS increasing by 85% to $0.37 compared to $0.20 in the same period of the previous year. Net income also rose sharply, reaching $32 million, a 77.8% increase from $18 million in Q2 2024. These results reflect cost efficiencies and strong performance from non-controlling investments, indicating a solid earnings story despite the slight revenue contraction.

Post-Earnings Price Action Review
A backtest of buying Array Digital shares following the revenue decline on the earnings report date and holding for 30 days showed impressive returns over the past three years. The strategy returned 47.91%, outperforming the 34.29% benchmark by 13.62%. Notably, the maximum drawdown was 0%, indicating no downside risk in the backtest period. A Sharpe ratio of 0.48 further highlights a favorable risk-adjusted return, reinforcing the stock’s appeal for investors.

CEO Commentary
Doug Chambers, Array’s interim President and CEO, highlighted key milestones in the quarter, including the successful closure of the T-Mobile deal and the announcement of a $23.00 per share special dividend. He emphasized Array’s long-term growth potential, particularly with its 4,400 towers and a new Master License Agreement with T-Mobile, which opens opportunities for colocations and margin expansion. Chambers also noted strong cash flow from non-controlling investments and expressed optimism about pending spectrum transactions with AT&T and Verizon, expected to close in late 2025 and mid-2026.

Guidance
Array Digital has not issued financial guidance for 2025. The company expects the AT&T and Verizon spectrum deals to close in 2H 2025 and Q3 2026, respectively, subject to regulatory approval and other conditions. The lack of guidance underscores the company’s current focus on strategic deals and operational execution rather than quantitative forecasts.

Additional News
Nigeria’s Federal Government reported N5.21 trillion in oil sales revenue for the first half of 2025, signaling a strong start to the year. Meanwhile, Customs officials intercepted contraband worth N10 billion, including expired drugs and arms, highlighting ongoing security and regulatory challenges. Marketers and industry stakeholders criticized the Nigerian National Petroleum Corporation over its failure to rehabilitate refineries and for perceived neglect of the sector. In the political sphere, Edo State Governor Monday Okpebholo pledged to strengthen the All Progressives Congress in the state, reflecting broader party realignment efforts ahead of the 2027 elections.