01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
SBA Communications Corporation reported first-quarter 2026 total revenues of $703.4 milliona, up from $664.2 million a year earlier, with site leasing revenue of $656.1 million.
International site leasing revenue rose to $205.8 millionb from $155.2 million, while domestic site leasing revenue declined to $450.3 million from $461.0 million, which the filing attributes primarily to Sprint, EchoStar, and other lease non-renewals. Net income attributable to SBA Communications Corporation was $184.8 million, or $1.74 per diluted share, compared with $220.7 million, or $2.04 per diluted share, in the prior-year quarter. Adjusted EBITDA, a non-GAAP measure, was $475.4 million, up from $457.3 million.
The balance sheet remains in a shareholders' deficit of $4.75 billionc. Total debt principal was $13.01 billion at March 31, 2026, including a $1.285 billion Revolving Credit Facility balance that increased after the company borrowed $900.0 million and repaid $90.0 million during the quarter to fund the January 9, 2026 repayment of $750.0 million of 2020-1C Tower Securities. The company stated that after quarter end it repaid $205.0 million on the revolver, leaving $1.1 billion outstanding.
Current maturities of long-term debt rose to $2.68 billiond, which the company's debt service table shows is driven largely by the $1.165 billion 2021-1C Tower Securities anticipated repayment date of November 9, 2026, and the $1.5 billion 2020 Senior Notes maturing February 15, 2027. Cash flow from operations was $255.1 million, down from $301.2 million, and the company spent $143.5 million on acquisitions.
It paid $135.2 million in common dividends, repurchased only 11,898 shares in January 2026 for about $2.2 million, and declared a quarterly dividend of $1.25 per share payable June 17, 2026. Management expects churn of $132.0 million to $136.0 million of domestic cash site leasing revenue and $36.0 million to $40.0 million of international cash site leasing revenue for 2026, and projects discretionary cash capital expenditures of $430.0 million to $450.0 million for the year.
02—Key points
Key Highlights
- Total revenues rose to $703.4 million from $664.2 million, driven by international site leasing revenue of $205.8 million versus $155.2 million a year earlier.
- Domestic site leasing revenue declined to $450.3 million from $461.0 million, primarily due to Sprint, EchoStar, and other lease non-renewals.
- Net income attributable to SBA Communications Corporation was $184.8 million ($1.74 diluted EPS), down from $220.7 million ($2.04 diluted EPS) in the prior-year quarter.
- Adjusted EBITDA was $475.4 million, up from $457.3 million; the filing states the increase was primarily due to international site leasing segment operating profit.
- Total debt principal was $13.01 billion at March 31, 2026, with current maturities of long-term debt of $2.68 billion, including the $1.165 billion 2021-1C Tower Securities anticipated repayment in November 2026.
- Revolving Credit Facility borrowings rose to $1.285 billion at quarter end; the company repaid $205.0 million after quarter end, leaving $1.1 billion outstanding.
- The company expects 2026 churn of $132.0 million to $136.0 million in domestic cash site leasing revenue and $36.0 million to $40.0 million internationally, and declared a $1.25 per share dividend payable June 17, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Sba Communications kept $0.26.
- Revenue$703.4M100.0%
- Cost of revenue−$171.3M24.4%
- Gross profit$532.1M75.6%
- Operating costs−$189.3M26.9%
- Operating income$342.8M48.7%
- Interest, other & tax−$158.0M22.5%
- Net income$184.8M26.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $703.44M$664.25M | +5.9% |
| Cost of Revenue | $171.34M$153.67M | +11.5% |
| Gross Profit | $532.10M$510.58M | +4.2% |
| SG&A Expenses | $70.55M$66.22M | +6.5% |
| Operating Expenses | $360.59M$329.34M | +9.5% |
| Operating Income | $342.85M$334.91M | +2.4% |
| Net Income | $184.83M$220.73M | −16.3% |
| EPS (Basic) | $1.75$2.05 | −14.6% |
| EPS (Diluted) | $1.74$2.04 | −14.7% |
| Shares Outstanding (Basic) | 105.81M107.74M | −1.8% |
| Shares Outstanding (Diluted) | 106.11M108.14M | −1.9% |
05—Questions
Frequently Asked Questions
Why did net income decline despite higher revenue?
Net income attributable to SBA Communications Corporation fell to $184.8 million from $220.7 million. The filing attributes the change largely to other income, net, which fell to $22.5 million from $32.2 million and included a $16.3 million remeasurement gain versus $54.6 million in the prior year. Interest expense also rose to $128.5 million from $104.1 million, and the provision for income taxes increased to $51.1 million from $42.0 million.
How is the company managing its near-term debt maturities?
The company borrowed $900.0 million under its Revolving Credit Facility to repay $750.0 million of 2020-1C Tower Securities in January 2026 and repaid $205.0 million of the revolver after quarter end. The filing states that cash on hand, revolver capacity, and operating cash flows are expected to be sufficient to service outstanding debt over the next twelve months, with current maturities of $2.68 billion including the 2021-1C Tower Securities and 2020 Senior Notes.
What does the filing say about tenant churn?
Management expects churn to remain elevated through 2026, with domestic churn representing $132.0 million to $136.0 million of cash site leasing revenue, partly due to Sprint and EchoStar, and international churn of $36.0 million to $40.0 million, partly due to Oi wireline churn. Domestic site leasing revenue already declined 2.3% on a reported basis in the quarter.
What are the company's capital allocation priorities for 2026?
The company expects non-discretionary cash capital expenditures of $67.0 million to $77.0 million and discretionary cash capital expenditures of $430.0 million to $450.0 million for 2026. It has $1.1 billion of remaining authorization under its $1.5 billion share repurchase plan, but repurchased only 11,898 shares in January 2026 and none in February or March. The Board declared a $1.25 per share quarterly dividend payable June 17, 2026.
06—Continue