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SBA Communications reported Q2 FY2026 revenue of $715.3 million, up 2.33% from Q2 FY2025 and 1.69% above the consensus of $703.4 million. Adjusted EPS, as the consensus counts it, was $1.87, versus the consensus of $2.96, a −36.8% difference.
The company reported diluted EPS of $1.87, down −10.5% from $2.09 a year earlier. Its filing said domestic site-leasing revenue declined by $17.4 million, primarily because of Sprint, EchoStar and other lease non-renewals, while international site-leasing revenue increased by $49.5 million, supported by acquired and built towers, contractual escalators, new leases and amendments. The filing said site-development revenue declined by $15.8 million because of lower carrier activity.
SBA reported a 75.4% gross margin, unchanged from a year earlier, and a 49.2% operating margin, compared with 47.9%. Free cash flow was $347.6 million, up 11.3% from $312.3 million.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $715.3 million | $699.0 million | 2.33% |
| Diluted EPS | $1.87 | $2.09 | −10.5% |
| Gross margin | 75.4% | 75.4% | 0.0 percentage points |
| Operating margin | 49.2% | 47.9% | 1.3 percentage points |
| Free cash flow | $347.6 million | $312.3 million | 11.3% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.87 | $2.96 | Missed by 36.8% |
| Revenue | $715.3 million | $703.4 million | Beat by 1.69% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Chief Financial Officer Marc Montagner said second-quarter results were in line with the company’s expectations. He said SBA added approximately $9 million of domestic new lease and amendment billings, with most activity coming from new co-locations as carriers densified and expanded their networks. Montagner said international new lease and amendment billings were approximately $4 million, while international churn remained elevated because of carrier consolidations, bankruptcy restructuring and network rationalizations.
On demand, President and Chief Executive Officer Brendan Cavanagh said U.S. application volumes were relatively consistent with the first half and throughout the year, although activity differed by carrier. Cavanagh said the company did not expect newly discussed spectrum bands to have a significant impact next year and was not ready to give its outlook for next year’s leasing growth. He said many of SBA’s international markets have limited 5G service beyond core urban areas, which he said could create future upgrade and amendment activity.
Cavanagh said SBA built 99 new towers during the quarter, compared with 75 in the prior quarter, and expected the number to rise through the balance of the year. He said the company expected around 600 new tower builds during 2026, primarily in Central America and Tanzania. Asked about new-build returns and competitive conditions in the U.S., Cavanagh said competitors had at times accepted returns SBA was unwilling to accept, while international build activity was increasing.
Montagner said SBA issued $3.5 billion of unsecured investment-grade bonds in July, used the proceeds to repay its term loan B and revolving-credit-facility balances, and had $570 million of cash as of the call. He said SBA planned to refinance an upcoming November ABS maturity under its existing assumption. Cavanagh said the company intended to resume share repurchases in the second half after completing the refinancing.
Analysts also asked about elevated international churn. Cavanagh said SBA was pursuing long-term customer arrangements intended to stabilize cash flow, but he would not commit to timing for churn normalization because discussions were ongoing. He also said the company would not quantify specific direct-to-device satellite or edge-compute opportunities because they remained early-stage.
Guidance
Exact updated guidance ranges are not available. Montagner said SBA modestly increased its full-year 2026 outlook for site-leasing revenue, FFO and FFO per share from its prior guidance, citing higher straight-line revenue and improved net cash interest expense. He said the company’s prior outlook for Sprint- and EchoStar-related churn was unchanged. Cavanagh said SBA was not ready to provide an outlook for next year’s leasing growth.