01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
SBA Communications Corporation (SBAC) reported net income attributable to SBA of $198.8 milliona for the three months ended June 30, 2026, down from $225.8 million in the prior-year quarter, and $383.6 million for the six months, versus $446.5 million a year earlier.
Total revenues were $715.3 millionb for the quarter, up from $699.0 million, with site leasing revenue of $663.9 million and site development revenue of $51.4 million (down from $67.2 million). Adjusted EBITDA was $483.8 million for the quarter versus $475.5 million, and $959.2 million for the six months versus $932.8 million. Management attributes domestic site leasing declines to Sprint, EchoStar and other lease non-renewals, while international site leasing revenue rose on acquisitions, including the Millicom transaction.
Balance sheet and liquidity changes were significant. Total debt principal was $12.78 billionc at June 30, 2026, with current maturities of $3.58 billion, and shareholders' deficit was $4.63 billion. Cash provided by operating activities was $662.3 million for the six months, and dividends paid were $267.8 million.
Management expects 2026 discretionary cash capital expenditures of $455.0 million to $475.0 milliond and non-discretionary cash capital expenditures of $65.0 million to $75.0 million, and it expects churn of $132.0 million to $136.0 million in domestic cash site leasing revenue and $36.0 million to $40.0 million internationally. Subsequent to quarter-end, on July 23, 2026, SBAC issued $3.5 billion of senior notes with a blended coupon of 5.113%, used the proceeds to repay the $1.0 billion Revolving Credit Facility and the $2.2 billion 2024 Term Loan, and entered into a new $2.5 billion revolving credit facility maturing July 23, 2031. The company also declared a $1.25 per share dividend on August 2, 2026, payable September 17, 2026.
02—Key points
Key Highlights
- Net income attributable to SBA Communications Corporation was $198.8 million for Q2 2026, compared with $225.8 million in Q2 2025; six-month net income attributable was $383.6 million versus $446.5 million.
- Total revenues rose to $715.3 million in Q2 2026 from $699.0 million, driven by international site leasing growth, partly offset by a $15.8 million decline in site development revenue.
- Adjusted EBITDA was $483.8 million for Q2 2026 versus $475.5 million, and $959.2 million for the six months versus $932.8 million.
- Domestic site leasing revenue declined $17.4 million in the quarter, primarily due to Sprint, EchoStar and other lease non-renewals; international site leasing revenue increased $49.5 million, largely from towers acquired in the Millicom transaction.
- Total debt principal was $12.78 billion at June 30, 2026, including $3.58 billion of current maturities; the company reported a total shareholders' deficit of $4.63 billion.
- On July 23, 2026, SBAC issued $3.5 billion of senior notes at a blended 5.113% coupon and repaid the Revolving Credit Facility and the 2024 Term Loan, and entered into a new $2.5 billion revolving credit facility maturing July 23, 2031.
- Cash from operations was $662.3 million for the six months ended June 30, 2026, versus $669.3 million a year earlier, while the company paid $267.8 million in dividends and repurchased only $2.2 million of stock.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Sba Communications kept $0.28.
- Revenue$715.3M100.0%
- Cost of revenue−$176.0M24.6%
- Gross profit$539.3M75.4%
- Operating costs−$187.4M26.2%
- Operating income$351.9M49.2%
- Interest, other & tax−$153.1M21.4%
- Net income$198.8M27.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $715.27M$698.98M | +2.3% |
| Cost of Revenue | $176.00M$172.10M | +2.3% |
| Gross Profit | $539.27M$526.88M | +2.4% |
| SG&A Expenses | $77.55M$71.02M | +9.2% |
| Operating Expenses | $363.41M$364.20M | −0.2% |
| Operating Income | $351.86M$334.78M | +5.1% |
| Net Income | $198.78M$225.79M | −12.0% |
| EPS (Basic) | $1.87$2.10 | −11.0% |
| EPS (Diluted) | $1.87$2.09 | −10.5% |
| Shares Outstanding (Basic) | 106.07M107.53M | −1.4% |
| Shares Outstanding (Diluted) | 106.26M107.80M | −1.4% |
05—Questions
Frequently Asked Questions
How did SBAC's core earnings and profitability change in the second quarter of 2026?
Net income attributable to SBA Communications Corporation was $198.8 million in Q2 2026, down from $225.8 million a year earlier, and diluted earnings per share were $1.87 versus $2.09. Adjusted EBITDA rose to $483.8 million from $475.5 million, with management citing higher international site leasing segment operating profit partly offset by lower domestic site leasing and site development profit.
What is driving the decline in domestic site leasing revenue?
Management states that domestic site leasing revenue decreased $17.4 million in Q2 2026, primarily due to Sprint, EchoStar and other lease non-renewals. Organic growth from contractual escalators, new leases and amendments, and revenue from 27 towers acquired and 39 built since April 1, 2025, partially offset the decline.
How is SBAC's debt structure changing after the reporting period?
On July 23, 2026, SBAC issued $3.5 billion of unsecured senior notes in three tranches due 2030, 2031 and 2033, with a blended coupon of 5.113%. Proceeds repaid the $1.0 billion Revolving Credit Facility and $2.2 billion 2024 Term Loan, and the company entered into a new $2.5 billion revolving credit facility maturing July 23, 2031.
What capital expenditures and churn does management expect for 2026?
Management expects 2026 non-discretionary cash capital expenditures of $65.0 million to $75.0 million and discretionary cash capital expenditures of $455.0 million to $475.0 million. It expects churn to represent $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, due in part to Sprint, EchoStar and Oi wireline churn.
What are the company's dividend and share repurchase activities?
SBAC paid $1.25 per share dividends in both February and April 2026, totaling $267.8 million in cash dividends paid for the six months. On August 2, 2026, it declared another $1.25 per share dividend payable September 17, 2026. During the first half of 2026 it repurchased only $2.2 million of common stock, and $1.1 billion of its $1.5 billion repurchase authorization remained as of the filing date.
06—Continue