Core Viewpoint - SBA Communications Corporation (SBAC) is a significant player in the wireless communications infrastructure sector, with a market cap of $21.4 billion, and operates nearly 40,000 cell towers globally, ensuring stable revenue streams from major mobile carriers [1][2]. Company Overview - SBAC is headquartered in Boca Raton, Florida, and specializes in owning and operating wireless communications infrastructure, including towers, buildings, rooftops, DAS, and small cells [1]. - The company provides site leasing, development, construction, and consulting services, leasing antenna space on multi-tenant towers under long-term contracts [1]. Market Position - As a large-cap stock, SBAC's market cap exceeds $10 billion, highlighting its size and influence within the REIT-specialty industry [2]. - The company has a strong presence in the U.S. and Brazil, contributing to its stable and recurring revenue streams [2]. Stock Performance - SBAC's stock has experienced a decline of 21.1% from its 52-week high of $252.64, reached on October 16, 2024, and has fallen 12.8% over the past three months [3]. - Year-to-date, SBAC shares dipped 2.2%, and over the past 52 weeks, they fell 18.6%, underperforming the iShares U.S. Digital Infrastructure and Real Estate ETF's YTD gains of 7.9% and 11.3% returns [4]. Financial Results - In Q2, SBAC reported an adjusted FFO per share of $3.17, exceeding Wall Street expectations of $3.12, with revenue of $699 million, surpassing forecasts of $670.1 million [5]. - The company anticipates full-year FFO in the range of $12.65 to $13.02 per share and revenue between $2.78 billion and $2.83 billion [5].

Core Insights - The company has undergone significant transformation, including asset sales in certain regions and acquisitions in Latin America, alongside improved domestic market activity [1] - The primary focus moving forward is to stabilize the business by exiting subscale markets and enhancing positions in more promising areas [1] Group 1 - The company has sold assets in some regions and purchased assets in Latin America, indicating a strategic shift in focus [1] - The CEO expects to continue stabilizing efforts in various locations, adapting strategies based on specific market conditions [1] - The ultimate goal of these changes is to achieve greater stability within the business [1]

Question-and-Answer SessionExcellent. So Brendan, the company has transformed a little bit since you were last year. You sold some assets in some regions, bought some assets in Lat Am and domestic market activity has improved. As you sit here right now, in which part of the business do you think you have the greatest rate change at this point next year? And what do you think is going to catalyze that? And how are you investing behind the opportunity?Brendan CavanaghCEO, President & Director Yes. Well, it's ...

Summary of SBA Communications Conference Call Company Overview - **Company**: SBA Communications (NasdaqGS:SBAC) - **Industry**: Telecommunications Infrastructure Key Points Business Transformation and Strategy - The company has undergone significant changes, including selling assets in subscaling markets and acquiring assets in Latin America to stabilize operations [3][4] - Focus on strengthening customer relationships and aligning with strong customers in various markets [4] Valuation and Acquisitions - There is a notable disparity between public and private asset valuations in the U.S., with public companies trading at lower valuations [5] - The company remains selective in acquisitions, prioritizing high-quality assets that align with favorable contracts [6] Capital Allocation - The company employs risk-adjusted return hurdles for capital allocation decisions, with a focus on dividend growth, M&A, and asset acquisitions [8] - SBA Communications is the fastest-growing dividend payer in the industry, with a commitment to continue this trend [8] Domestic Business Activity - Strong application volume and site development activity are noted, driven by customer focus on network quality improvement and rural builds [10][11] - The company expects to see continued growth in organic revenue, targeting around 5% growth, despite current churn challenges [14][15] Customer Contracts and Churn - The company anticipates significant churn from DISH/EchoStar contracts, with expected revenue loss of approximately $50 million in 2027 and 2028 [17][18] - U.S. Cellular contributes about $20 million in annual revenue, with expected churn of $3 to $4 million per year due to T-Mobile's acquisition [29][30] Spectrum and Market Dynamics - Upcoming spectrum auctions are expected to drive new tower deployments, particularly in the upper C-band ranges [31][32] - The Brazilian market shows long-term potential, with consolidation among carriers expected to enhance network quality and ARPU [34][35][36] Millicom Acquisition - The acquisition of Millicom's towers has positioned the company as a leading tower operator in Central America, with favorable long-term lease agreements [37][38] Long-Term Growth Outlook - The company aims for mid to high single-digit growth in AFFO per share, despite near-term refinancing headwinds due to rising interest rates [42][43] - Long-term agreements and the ongoing need for network capacity are expected to drive sustained growth over the next decade [49][50][51] Investor Considerations - Investors may overlook the long-term stability and growth potential of the company, which is driven by ongoing wireless network deployments and infrastructure needs [49][50] - The company emphasizes its commitment to shareholder returns through dividends and stock buybacks as it continues to grow [51] Additional Insights - The company is cautious about entering new markets, preferring to align with strong carriers to mitigate risks associated with weaker competitors [44][46] - The management believes that the current churn events are part of a broader market correction, positioning the company for future growth with core customers [30][51]

Group 1 - The current state of carrier deployments shows that T-Mobile has completed its work on the 2.5 spectrum, while Verizon is at approximately 70% completion and actively collaborating with SBA. AT&T is lagging behind at around 50% completion [2]. - SBA has experienced a sequential increase in application volume for six consecutive quarters, indicating a growing demand for its services. However, there is a disconnect between the elevated application levels and domestic leasing activity [3].

Summary of SBA Communications Conference Call Company Overview - **Company**: SBA Communications Corporation (SBAC) - **Event**: BofA Media Telecom Conference - **Date**: September 04, 2025 Industry Insights - **Carrier Deployment Status**: - T-Mobile is largely completed with 2 to 5 GHz spectrum deployment - Verizon is approximately 70% complete and actively working with SBA - AT&T is at about 50% completion, playing catch-up [3][4][5] Financial Performance - **Application Volume**: - Application volume has increased for six consecutive quarters, with over 50% of revenues coming from colocation applications [4][5] - The book-to-bill cycle is 6 to 9 months, causing a lag in translating applications into revenue [4][5] - Guidance for the second half of the year remains at $37 million, expected to exceed the first half [4][5] Market Dynamics - **5G Deployments**: - The next phase of 5G will focus on densification due to increasing traffic, especially from fixed wireless access (FWA) customers [15][18] - FWA customers are projected to use 15 to 20 times more bandwidth than traditional handset users [15][18] International Market - **Latin America**: - Central America and Brazil are key markets, with a recent acquisition of 7,000 towers from Millicom locking in mid to high single-digit growth rates [33][34] - Brazil's telecom market is consolidating, with 5G deployment at 30-35% [35][37] - The currency in Brazil has appreciated by 20% this year, improving operational conditions [37][38] Capital Allocation and Debt Management - **Capital Allocation**: - Approximately $700 million available for allocation annually after accounting for expenses [53][54] - In 2023, $100 million was spent on share buybacks and $600 million on debt repayment [54] - Future capital allocation will focus on buybacks and debt repayment, with M&A opportunities being scarce [54] - **Debt Management**: - SBA has $12 billion in debt, with a recent upgrade to investment grade (BBB-) [56][57] - Plans to manage debt maturities effectively, with a focus on maintaining a balanced mix of secured and unsecured debt [56][57] Strategic Relationships - **Master Lease Agreements (MLAs)**: - The company is open to MLAs on a case-by-case basis, depending on the volume commitments from carriers [19][20] - Securing long-term growth through volume commitments is a priority [25][26] Future Outlook - **Market Trends**: - Anticipation of increased capital expenditures as the industry prepares for 6G and densification needs [72][80] - The company remains optimistic about long-term growth despite short-term churn from carriers like Sprint and EchoStar [66][68] Conclusion - SBA Communications is positioned for growth with a strong focus on international markets, strategic partnerships, and effective capital allocation. The company is navigating challenges in the U.S. market while capitalizing on opportunities in Latin America and preparing for future technological advancements in the telecom industry.

Summary of SBA Communications (SBAC) 2025 Conference Call Company Overview - **Company**: SBA Communications (SBAC) - **Industry**: Telecommunications Infrastructure Key Points Financial Performance and Capital Allocation - SBA Communications reported an EBITDA of approximately $1 billion, with capital allocation including €425 million for dividends, $435 million for cash interest expenses, €35 million for cash taxes, and about €50 million for maintenance CapEx [4][5] - The company has around $675 million to $700 million available for annual cash allocation, emphasizing the importance of strategic capital allocation to create shareholder value [5] - In 2023, SBA utilized $100 million for share buybacks and $500 million to pay down debt, with a balanced approach in previous years [5] - A significant M&A deal worth $975 million was signed in Central America, expected to enhance long-term value despite a slight increase in leverage [6][10] Strategic Focus and Market Position - The company is focusing on opportunistic capital allocation rather than aggressive expansion into new markets, given the current valuation environment in the U.S. [10][12] - SBA has undergone a strategic portfolio review, optimizing its presence in markets where it can achieve better returns, including the sale of towers in Canada due to challenges in scaling operations there [14][16] - The company is positioned as a leading tower company, with a focus on maintaining strong relationships with operators to support their technology rollouts [13][34] Leasing Activity and Growth Outlook - SBA has seen an increase in leasing activity, with expectations for organic growth in the second half of the year and into 2026 [17][20] - The company anticipates a top-line growth rate of about 3% from escalators and lease-ups, with overall growth projected in the mid-single digits [34][36] - The impact of recent spectrum transactions, such as EchoStar selling spectrum to AT&T, is viewed as a short-term disruption but potentially beneficial for long-term industry health [24][26] International Operations - SBA is optimistic about its operations in Brazil, citing strong economic fundamentals and a growing demand for 5G infrastructure [43][45] - The company is cautious about its exposure to Oi Wireless, anticipating a loss of $20 million in annual revenue as the company is expected to struggle [45][47] - Operations in Africa, particularly in Tanzania and South Africa, are performing well, with growth driven by government initiatives to expand coverage [51][52] Competitive Landscape and Future Opportunities - The company views LEO (Low Earth Orbit) satellite constellations as complementary to existing fixed wireless networks rather than a direct threat [53][54] - SBA's long-term growth is expected to be driven by increasing demand for wireless capacity, with significant opportunities arising from new spectrum becoming available [62][64] - The company emphasizes the importance of maintaining a flexible capital allocation strategy to adapt to changing market conditions and interest rates [60][61] Risks and Considerations - SBA's revenue exposure to EchoStar is approximately $55 million annually, representing about 2% of global revenues, with potential churn expected in the coming years [28][42] - The company is mindful of the impact of interest rates on its operations and stock performance, indicating a need for nimbleness in capital allocation [60][61] Conclusion SBA Communications is strategically focusing on optimizing its capital allocation, enhancing shareholder value through share buybacks and debt reduction, while maintaining a strong market position in the telecommunications infrastructure sector. The company is optimistic about its growth prospects, particularly in international markets, while being cautious of potential disruptions from industry changes and economic conditions.

Core Viewpoint - The recent news regarding AT&T's acquisition of spectrum does not pose a significant negative impact on SBA Communications Corporation (SBAC) [1] Group 1: AT&T and EchoStar Transaction - AT&T acquired spectrum from EchoStar for approximately $23 billion, which is about $7 billion more than EchoStar's original cost of around $16 billion [3][7] - EchoStar's market capitalization increased from approximately $8.5 billion to $16.2 billion following the transaction, reflecting a total enterprise value increase of about $7.7 billion [7] - AT&T plans to deploy the 3.45 GHz spectrum quickly, while the 600 MHz spectrum will experience a modest delay due to necessary equipment adjustments [6][10] Group 2: Implications for SBAC - The transaction is expected to enhance AT&T's fixed wireless home internet service, which could lead to increased demand for cell towers as more home internet connections transition to cellular networks [11][13] - SBAC's management has indicated that signed leases are in place, suggesting a stable revenue stream despite potential concerns about AT&T reducing new contracts [19][20] - The overall sentiment remains positive for SBAC, as the acquisition by AT&T is seen as a move that will not diminish the need for tower infrastructure [21][22]

PART I – FINANCIAL INFORMATION [ITEM 1: FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201%3A%20FINANCIAL%20STATEMENTS) Presents unaudited consolidated financial statements and condensed notes for SBA Communications Corporation for Q2 2025 and FY 2024 [Consolidated Balance Sheets](index=3&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets decreased from **$11.4 billion** to **$10.8 billion**, and total liabilities from **$16.5 billion** to **$15.6 billion** Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | Change (%) | | :----------------------------------- | :------------ | :---------------- | :------- | :--------- | | Cash and cash equivalents | $275,275 | $189,841 | $85,434 | 45.0% | | Restricted cash | $20,757 | $1,206,653 | $(1,185,896) | -98.3% | | Total current assets | $523,808 | $1,978,720 | $(1,454,912) | -73.5% | | Property and equipment, net | $3,258,183 | $2,792,084 | $466,099 | 16.7% | | Total assets | $10,766,387 | $11,417,336 | $(650,949) | -5.7% | | Total current liabilities | $1,429,705 | $1,797,936 | $(368,231) | -20.5% | | Long-term debt, net | $11,739,364 | $12,403,825 | $(664,461) | -5.4% | | Total liabilities | $15,640,125 | $16,473,142 | $(833,017) | -5.1% | | Total shareholders' deficit | $(4,938,895) | $(5,109,938) | $171,043 | 3.3% | [Consolidated Statements of Operations](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Total revenues and net income significantly increased for Q2 and H1 2025, driven by site development and other income Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | Change (YoY %) | | :----------------------------------- | :--------------------------- | :--------------------------- | :----------- | :------------- | | Total revenues | $698,981 | $660,477 | $38,504 | 5.8% | | Operating income | $334,781 | $354,470 | $(19,689) | -5.6% | | Income before income taxes | $260,753 | $147,115 | $113,638 | 77.2% | | Net income | $225,694 | $159,452 | $66,242 | 41.5% | | Net income attributable to SBAC | $225,794 | $162,830 | $62,964 | 38.7% | | Basic EPS | $2.10 | $1.52 | $0.58 | 38.2% | | Diluted EPS | $2.09 | $1.51 | $0.58 | 38.4% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | Change (YoY %) | | :----------------------------------- | :--------------------------- | :--------------------------- | :----------- | :------------- | | Total revenues | $1,363,229 | $1,318,339 | $44,890 | 3.4% | | Operating income | $669,690 | $677,828 | $(8,138) | -1.2% | | Income before income taxes | $520,676 | $318,584 | $202,092 | 63.4% | | Net income | $443,598 | $313,994 | $129,604 | 41.3% | | Net income attributable to SBAC | $446,525 | $317,372 | $129,153 | 40.7% | | Basic EPS | $4.15 | $2.94 | $1.21 | 41.2% | | Diluted EPS | $4.14 | $2.93 | $1.21 | 41.3% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Comprehensive income significantly increased for Q2 and H1 2025, primarily due to positive foreign currency adjustments Consolidated Statements of Comprehensive Income Highlights (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | Change (YoY %) | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :----------- | :------------- | | Net income | $225,694 | $159,452 | $66,242 | 41.5% | | Adjustments related to interest rate swaps | $(11,594) | $(8,237) | $(3,357) | 40.8% | | Foreign currency translation adjustments | $36,577 | $(64,130) | $100,707 | -157.0% | | Comprehensive income | $250,677 | $87,085 | $163,592 | 187.9% | | Comprehensive income attributable to SBAC | $250,863 | $90,787 | $160,076 | 176.3% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | Change (YoY %) | | :------------------------------------------------ | :--------------------------- | :--------------------------- | :----------- | :------------- | | Net income | $443,598 | $313,994 | $129,604 | 41.3% | | Adjustments related to interest rate swaps | $(46,454) | $2,630 | $(49,084) | -1866.3% | | Foreign currency translation adjustments | $94,168 | $(89,534) | $183,702 | -205.2% | | Comprehensive income | $491,312 | $227,090 | $264,222 | 116.3% | | Comprehensive income attributable to SBAC | $495,257 | $230,792 | $264,465 | 114.6% | [Consolidated Statements of Shareholders' Deficit](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS'%20DEFICIT) Shareholders' deficit improved from **$(5.1) billion** to **$(4.9) billion** due to net income and foreign currency adjustments Shareholders' Deficit Changes (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------------ | :--------------------------- | :--------------------------- | | Balance, December 31, 2024 (2023) | $(5,109,938) | $(5,170,882) | | Net income attributable to SBAC | $446,525 | $317,372 | | Common stock issued (equity awards) | $24,189 | $3,191 | | Non-cash stock compensation | $38,015 | $41,027 | | Adjustments related to interest rate swaps | $(46,454) | $2,630 | | Repurchase and retirement of common stock | $(130,696) | $(200,019) | | Foreign currency translation adjustments | $95,186 | $(89,210) | | Dividends and dividend equivalents | $(240,752) | $(212,908) | | Adjustment to redemption amount (noncontrolling interests) | $(14,970) | $(7,942) | | Balance, June 30, 2025 (2024) | $(4,938,895) | $(5,316,741) | [Consolidated Statements of Cash Flows](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash from operations decreased, while cash used in investing and financing increased, leading to a net decrease in cash Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | Change (YoY %) | | :------------------------------------------ | :--------------------------- | :--------------------------- | :----------- | :------------- | | Net cash provided by operating activities | $669,273 | $720,046 | $(50,773) | -7.1% | | Net cash used in investing activities | $(342,696) | $(206,518) | $(136,178) | 66.0% | | Net cash used in financing activities | $(1,440,413) | $(467,935) | $(972,478) | 207.8% | | Net change in cash, cash equivalents, and restricted cash | $(1,100,134) | $32,198 | $(1,132,332) | -3516.7% | | Cash, cash equivalents, and restricted cash, end of period | $300,523 | $283,144 | $17,379 | 6.1% | | Cash paid for Interest | $211,943 | $193,195 | $18,748 | 9.7% | | Cash paid for Income taxes | $23,213 | $17,214 | $5,999 | 34.8% | [Condensed Notes to Consolidated Financial Statements (Unaudited)](index=10&type=section&id=CONDENSED%20NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Provides context to financial statements, detailing accounting policies, fair value, cash, acquisitions, debt, equity, and segment data [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) Financial statements adhere to Form 10-Q and U.S. GAAP, relying on management estimates and foreign currency translation impacts - The Company recorded a **$30.4 million gain** on intercompany loan remeasurement for the three months ended June 30, 2025, compared to a **$66.2 million loss** in the prior year, and a **$66.3 million gain** for the six months ended June 30, 2025, versus a **$94.7 million loss** in the prior year[32](index=32&type=chunk) - The aggregate outstanding amount under intercompany loan agreements subject to remeasurement was **$1.1 billion** as of June 30, 2025[32](index=32&type=chunk) - The Company is evaluating new FASB ASUs 2023-09 (Income Tax Disclosures) and 2024-03 (Expense Disaggregation Disclosures), effective for fiscal years beginning after December 15, 2024, and 2026, respectively[33](index=33&type=chunk)[35](index=35&type=chunk) [2. Fair Value Measurements](index=11&type=section&id=2.%20Fair%20Value%20Measurements) Uses Level 3 inputs for fair value measurements, including asset retirement obligations and impairment, with no long-term investment losses Asset Impairment and Decommission Costs (in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Asset impairment | $40,575 | $18,491 | $71,041 | $53,043 | | Write-off of decommissioned towers | $3,358 | $7,440 | $5,919 | $11,545 | | Other (tower/equipment decommission costs) | $5,679 | $1,298 | $5,297 | $10,670 | | Total asset impairment and decommission costs | $45,231 | $31,610 | $82,257 | $75,258 | - Short-term investments decreased from **$254.5 million** at December 31, 2024, to **$1.6 million** at June 30, 2025. The Company purchased **$432.9 million** and sold **$685.8 million** of short-term investments during the six months ended June 30, 2025[40](index=40&type=chunk) [3. Cash, Cash Equivalents, and Restricted Cash](index=12&type=section&id=3.%20Cash%2C%20Cash%20Equivalents%2C%20and%20Restricted%20Cash) Total cash and equivalents decreased from **$1.4 billion** to **$300.5 million**, mainly due to **$1.165 billion** debt repayment Cash, Cash Equivalents, and Restricted Cash (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | $275,275 | $189,841 | | Securitization escrow accounts | $11,255 | $1,200,025 | | Payment, performance bonds, and other | $9,502 | $6,628 | | Surety bonds and workers compensation | $4,491 | $4,163 | | Total cash, cash equivalents, and restricted cash | $300,523 | $1,400,657 | - The **$1.165 billion** held in securitization escrow accounts as of December 31, 2024, was used to repay the 2019-1C Tower Securities on January 15, 2025[44](index=44&type=chunk) [4. Costs and Estimated Earnings on Uncompleted Contracts](index=12&type=section&id=4.%20Costs%20and%20Estimated%20Earnings%20on%20Uncompleted%20Contracts) Net balance of uncompleted contracts increased from **$13.9 million** to **$44.1 million**, with two customers accounting for **97.0%** Costs and Estimated Earnings on Uncompleted Contracts (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Costs incurred on uncompleted contracts | $107,684 | $74,474 | | Estimated earnings | $42,450 | $31,514 | | Billings to date | $(106,001) | $(92,082) | | Net balance | $44,133 | $13,906 | | Costs and estimated earnings in excess of billings | $46,811 | $19,198 | | Billings in excess of costs and estimated earnings | $(2,678) | $(5,292) | - At June 30, 2025, the two largest customers accounted for **97.0%** of the net costs and estimated earnings in excess of billings on uncompleted contracts[46](index=46&type=chunk) [5. Prepaid Expenses and Other Current Assets and Other Assets](index=13&type=section&id=5.%20Prepaid%20Expenses%20and%20Other%20Current%20Assets%20and%20Other%20Assets) Prepaid expenses decreased from **$417.3 million** to **$41.1 million**, mainly due to reduced investments and loan repayments Prepaid Expenses and Other Current Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Short-term investments | $1,551 | $254,534 | | Short-term loans receivable | $0 | $115,281 | | Total prepaid expenses and other current assets | $41,075 | $417,333 | Other Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Straight-line rent receivable | $421,860 | $417,572 | | Interest rate swap asset | $10,333 | $50,589 | | Loans receivable | $55,356 | $59,326 | | Total other assets | $641,647 | $657,097 | - A **$115.0 million** loan to an unconsolidated joint venture was fully repaid on March 21, 2025[47](index=47&type=chunk) [6. Acquisitions](index=13&type=section&id=6.%20Acquisitions) Acquisition capital expenditures rose to **$652.6 million** due to 4,673 tower acquisitions, including 4,644 Millicom sites Acquisition Activity (in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Acquisitions of towers and related assets | $579,914 | $27,899 | $634,097 | $38,194 | | Land buyouts and other assets | $9,308 | $13,718 | $18,513 | $22,828 | | Total cash acquisition capital expenditures | $589,222 | $41,617 | $652,610 | $61,022 | Acquired Assets (6 Months Ended, in thousands) | Acquired Assets (6 Months Ended) | June 30, 2025 | June 30, 2024 | | :------------------------------------------ | :------------ | :------------ | | Property and equipment, net | $435,294 | $13,398 | | Intangible assets, net | $218,806 | $24,307 | | Operating lease right-of-use assets, net | $66,499 | $9,453 | | Total acquisitions of towers and related assets and liabilities | $634,097 | $38,194 | - During the six months ended June 30, 2025, the Company acquired **4,673 towers** and related assets, including **4,644 sites** from Millicom International Cellular S.A[49](index=49&type=chunk) - Approximately **2,500 sites** from the Millicom transaction, valued at **$391.0 million**, are expected to close by September 1, 2025[51](index=51&type=chunk) [7. Property and Equipment, Net](index=14&type=section&id=7.%20Property%20and%20Equipment%2C%20Net) Property and equipment, net, increased to **$3.26 billion** due to acquisitions, with planned sale of **369 Canadian towers** for **CAD$446.0 million** Property and Equipment, Net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Towers and related assets | $6,425,913 | $5,902,092 | | Total property and equipment | $7,601,975 | $7,072,176 | | Less: accumulated depreciation | $(4,343,792) | $(4,280,092) | | Property and equipment, net | $3,258,183 | $2,792,084 | - Depreciation expense was **$31.7 million** and **$26.2 million** for the three months ended June 30, 2025 and 2024, respectively, and **$59.0 million** and **$63.6 million** for the six months ended June 30, 2025 and 2024, respectively[54](index=54&type=chunk) - The Company sold all towers in the Philippines and Colombia for **$40.3 million**, recognizing an **$18.0 million loss**. An agreement to sell **369 Canadian towers** for **CAD$446.0 million** is expected to close in Q4 2025[55](index=55&type=chunk)[56](index=56&type=chunk) [8. Intangible Assets, Net](index=15&type=section&id=8.%20Intangible%20Assets%2C%20Net) Intangible assets, net, increased to **$2.58 billion** from **$2.39 billion**, driven by current contract intangibles Intangible Assets, Net (in thousands) | Category | June 30, 2025 (Net Book Value) | December 31, 2024 (Net Book Value) | | :------------------------------------------ | :------------------------------- | :--------------------------------- | | Current contract intangibles | $1,985,030 | $1,825,558 | | Network location intangibles | $594,776 | $563,149 | | Intangible assets, net | $2,579,806 | $2,388,707 | - Amortization expense was **$27.1 million** and **$26.3 million** for the three months ended June 30, 2025 and 2024, respectively, and **$53.9 million** and **$53.5 million** for the six months ended June 30, 2025 and 2024, respectively[57](index=57&type=chunk) [9. Accrued Expenses](index=15&type=section&id=9.%20Accrued%20Expenses) Accrued expenses slightly increased to **$86.1 million** from **$82.0 million**, with shifts in salaries and other liabilities Accrued Expenses (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Salaries and benefits | $18,091 | $24,996 | | Real estate and property taxes | $9,024 | $7,204 | | Unpaid capital expenditures | $12,117 | $14,581 | | Acquisition related holdbacks | $9,983 | $10,896 | | Other | $36,870 | $24,300 | | Total accrued expenses | $86,085 | $81,977 | [10. Debt](index=15&type=section&id=10.%20Debt) Total debt decreased to **$11.9 billion** from **$13.7 billion** due to debt repayment, while interest expense increased Debt Principal Balances (in thousands) | Debt Instrument | June 30, 2025 (Principal Balance) | December 31, 2024 (Principal Balance) | | :------------------------------------------ | :-------------------------------- | :---------------------------------- | | Revolving Credit Facility | $80,000 | $0 | | 2024 Term Loan | $2,277,000 | $2,282,750 | | 2019-1C Tower Securities | $0 | $1,165,000 | | Total debt | $11,897,397 | $13,672,750 | | Total long-term debt, net of current maturities | $11,739,364 | $12,403,825 | Interest Expense (in thousands) | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Cash Interest | $119,658 | $97,530 | $223,805 | $193,921 | | Non-cash Interest | $1,233 | $7,080 | $9,581 | $15,523 | | Amortization of deferred financing fees | $5,415 | $4,932 | $10,849 | $10,221 | | Total Interest Expense | $126,306 | $109,542 | $244,235 | $219,665 | - The 2019-1C Tower Securities (**$1,165.0 million**) and 2019-1R Tower Securities (**$61.4 million**) were fully repaid on January 15, 2025[65](index=65&type=chunk)[68](index=68&type=chunk) [11. Shareholders' Equity](index=17&type=section&id=11.%20Shareholders'%20Equity) A new **$1.5 billion** share repurchase plan was authorized, with **0.6 million shares** repurchased for **$130.7 million** - A new **$1.5 billion** share repurchase plan was authorized on April 27, 2025, with **$1.45 billion** remaining as of the filing date[71](index=71&type=chunk) Share Repurchase Summary (in millions, except per share amounts) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total number of shares purchased | 0.6 | 0.4 | 0.6 | 0.9 | | Average price per share | $211.63 | $213.30 | $211.63 | $213.85 | | Total purchase price | $130.7 | $93.9 | $130.7 | $200.0 | Cash Dividends Paid (in millions, except per share amounts) | Declaration Date | Record Date | Cash Paid Per Share | Aggregate Amount Paid | | :----------------- | :---------- | :------------------ | :-------------------- | | Feb 23, 2025 | Mar 13, 2025 | $1.11 | $122.3 | | Apr 27, 2025 | May 22, 2025 | $1.11 | $119.4 | | Aug 3, 2025 (Declared) | Aug 21, 2025 | $1.11 | N/A | [12. Stock-Based Compensation](index=18&type=section&id=12.%20Stock-Based%20Compensation) Stock option activity shows **518 thousand** options exercised for **$27.1 million**, with **285 thousand RSUs** and **66 thousand PSUs** granted Stock Option Activity (in thousands, except per share data) | Metric | Number of Shares | Weighted-Average Exercise Price Per Share | | :------------------------------------------ | :--------------- | :---------------------------------------- | | Outstanding at December 31, 2024 | 1,088 | $174.74 | | Exercised | (518) | $161.42 | | Outstanding at June 30, 2025 | 569 | $186.85 | | Exercisable at June 30, 2025 | 553 | $185.01 | | Unvested at June 30, 2025 | 16 | $250.43 | | Total intrinsic value for options exercised | N/A | $27,100 | RSU and PSU Activity (in thousands, except per share data) | Metric | RSUs (Number of Shares) | RSUs (Weighted-Average Grant Date Fair Value per Share) | PSUs (Number of Shares) | PSUs (Weighted-Average Grant Date Fair Value per Share) | | :------------------------------------------ | :---------------------- | :------------------------------------------------------ | :---------------------- | :------------------------------------------------------ | | Outstanding at December 31, 2024 | 393 | $234.50 | 275 | $314.52 | | Granted | 285 | $219.23 | 66 | $237.91 | | Vested | (166) | $247.27 | (137) | $339.43 | | Outstanding at June 30, 2025 | 493 | $221.74 | 206 | $245.29 | [13. Income Taxes](index=19&type=section&id=13.%20Income%20Taxes) REIT status impacts tax rate, with a **$55.2 million** Brazilian tax deficiency contested, plus **$75.6 million** in penalties - The Company's REIT status allows a deduction for dividends, reducing U.S. federal corporate income tax on distributed net income[81](index=81&type=chunk) - As of December 31, 2024, the Company had approximately **$377.9 million** in federal net operating losses (NOLs) available to offset REIT taxable income[81](index=81&type=chunk) - The Company estimates a reasonably possible loss range of zero to **$55.2 million**, excluding **$75.6 million** in penalties and interest, related to an income tax assessment in Brazil for tax years 2017-2019, which it is vigorously contesting[83](index=83&type=chunk) [14. Segment Data](index=20&type=section&id=14.%20Segment%20Data) Site leasing (domestic and international) and site development are primary segments, with site leasing contributing **97.7%** of operating profit - Site leasing contributed **97.7%** of total segment operating profit for the six months ended June 30, 2025[85](index=85&type=chunk) Segment Revenues and Operating Profit (in thousands) | Segment | 3 Months Ended June 30, 2025 (Revenues) | 3 Months Ended June 30, 2024 (Revenues) | 3 Months Ended June 30, 2025 (Operating Profit) | 3 Months Ended June 30, 2024 (Operating Profit) | | :-------------------- | :-------------------------------------- | :-------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Domestic Site Leasing | $469,807 | $463,204 | $400,386 | $397,715 | | International Site Leasing | $161,981 | $163,253 | $112,831 | $114,611 | | Site Development | $67,193 | $34,020 | $13,668 | $6,883 | | Total | $698,981 | $660,477 | $526,885 | $519,209 | | Segment | 6 Months Ended June 30, 2025 (Revenues) | 6 Months Ended June 30, 2024 (Revenues) | 6 Months Ended June 30, 2025 (Operating Profit) | 6 Months Ended June 30, 2024 (Operating Profit) | | :-------------------- | :-------------------------------------- | :-------------------------------------- | :---------------------------------------------- | :---------------------------------------------- | | Domestic Site Leasing | $930,800 | $924,703 | $793,107 | $793,244 | | International Site Leasing | $317,197 | $330,030 | $220,841 | $232,545 | | Site Development | $115,232 | $63,606 | $23,518 | $13,291 | | Total | $1,363,229 | $1,318,339 | $1,037,466 | $1,039,080 | Long-Lived Assets by Geographic Area (in thousands) | Geographic Area | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Domestic | $5,763,235 | $5,741,882 | | Brazil | $1,839,629 | $1,681,925 | | Guatemala | $577,880 | $50,686 | | Other international | $1,420,187 | $1,307,026 | | Total | $9,600,931 | $8,781,519 | [15. Earnings Per Share](index=22&type=section&id=15.%20Earnings%20Per%20Share) Basic and diluted EPS significantly increased for Q2 and H1 2025, reflecting higher net income Earnings Per Share (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income attributable to SBAC | $225,794 | $162,830 | $446,525 | $317,372 | | Basic weighted-average shares outstanding | 107,531 | 107,462 | 107,637 | 107,782 | | Diluted weighted-average shares outstanding | 107,797 | 107,679 | 107,968 | 108,148 | | Basic EPS | $2.10 | $1.52 | $4.15 | $2.94 | | Diluted EPS | $2.09 | $1.51 | $4.14 | $2.93 | [16. Redeemable Noncontrolling Interests](index=22&type=section&id=16.%20Redeemable%20Noncontrolling%20Interests) Redeemable noncontrolling interests increased to **$65.2 million** from **$54.1 million**, mainly due to redemption adjustments Redeemable Noncontrolling Interests (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Beginning balance | $54,132 | $35,047 | | Net loss attributable to noncontrolling interests | $(2,927) | $(859) | | Foreign currency translation adjustments | $(1,018) | $618 | | Adjustment to redemption amount | $14,970 | $11,731 | | Ending balance | $65,157 | $54,132 | [17. Derivatives and Hedging Activities](index=23&type=section&id=17.%20Derivatives%20and%20Hedging%20Activities) Uses interest rate swaps to hedge **$2.0 billion** variable rate debt at **5.165%** and a treasury lock for **$620.0 million** securities at **4.654%** - The Company has interest rate swap agreements on its 2024 Term Loan, swapping **$2.0 billion** of notional value to a blended all-in fixed rate of **5.165%** per annum through April 11, 2028[95](index=95&type=chunk) - A treasury lock agreement fixed the three-year treasury rate at **3.3985%** for **$620.0 million** of notional value related to the 2024-2C Tower Securities, resulting in an all-in fixed rate of **4.654%** per annum[96](index=96&type=chunk) Derivatives Designated as Hedging Instruments (in thousands) | Category | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Interest rate swap agreements (asset position) | $10,333 | $50,589 | | Interest rate swap agreement (liability position) | $12,140 | $0 | | Accumulated other comprehensive loss, net (gain) | $4,400 | $50,900 | [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial condition and operational performance, covering segment results, capital allocation, and liquidity for Q2 and H1 2025 [Business Overview](index=24&type=section&id=Business%20Overview) SBA Communications is a leading wireless infrastructure owner, with site leasing as its primary business, operating globally - SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure, owning **44,065 towers** as of June 30, 2025[102](index=102&type=chunk) - Site leasing is the primary business line, contributing **97.7%** of total segment operating profit for the six months ended June 30, 2025[102](index=102&type=chunk)[109](index=109&type=chunk) - The company sold its towers in the Philippines and Colombia in Q1 2025 and plans to sell its 369 Canadian towers by Q4 2025[102](index=102&type=chunk) [Site Leasing](index=24&type=section&id=Site%20Leasing) Site leasing involves long-term contracts with wireless providers, featuring rent escalators and high margins, with expected revenue growth in 2025 - Site leasing contracts typically have initial terms of five to fifteen years with multiple renewal periods and annual rent escalators (fixed, inflation-indexed, or a combination)[104](index=104&type=chunk) - Approximately **70%** of towers are on owned land, perpetual easements, or leasehold interests extending beyond 20 years, providing stable operating costs[107](index=107&type=chunk) - Core site leasing revenue is expected to increase in 2025 due to wireless carriers deploying unused spectrum, the full-year impact of 2024 acquisitions and builds, and new towers expected in 2025[111](index=111&type=chunk) [Site Development](index=25&type=section&id=Site%20Development) U.S.-based site development offers end-to-end services to wireless providers, complementing site leasing and generating ancillary revenues - Site development services include network pre-design, site audits, location identification, leasing support, zoning approvals, tower and site construction, antenna installation, and radio equipment installation, commissioning, and maintenance[112](index=112&type=chunk) - This business line is conducted only in the United States and is complementary to the site leasing business, helping maintain relationships with wireless service providers and capturing ancillary revenues[112](index=112&type=chunk) [Capital Allocation Strategy](index=26&type=section&id=Capital%20Allocation%20Strategy) Capital allocation prioritizes asset investments, opportunistic stock repurchases, dividends, and debt repayment to enhance shareholder value - Key elements of the capital allocation strategy include portfolio growth through tower acquisitions and new construction, stock repurchases when the share price is below intrinsic value, and cash dividends[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - Debt repayments, especially of variable rate debt, are considered an accretive use of excess capital in a high interest rate environment[115](index=115&type=chunk) [Critical Accounting Policies and Estimates](index=26&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Financial statements rely on management's critical estimates and assumptions, which may materially differ from actual results - Preparation of financial statements requires management to make significant estimates and assumptions affecting reported amounts, including allowance for doubtful accounts, construction contract costs, stock-based compensation, deferred tax assets, fair value of long-lived assets, and useful lives of assets[118](index=118&type=chunk)[29](index=29&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 and H1 2025 results show increased revenues and net income, driven by site development and other income, despite higher operating expenses [Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=27&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) Q2 2025 total revenues increased by **5.8%** to **$699.0 million**, with net income up **38.7%** to **$225.8 million** Revenue and Operating Profit Changes (3 Months Ended June 30, 2025 vs. 2024, in thousands) | Metric | 2025 | 2024 | Constant Currency Change | Constant Currency % Change | | :-------------------------- | :----- | :----- | :----------------------- | :------------------------- | | Domestic site leasing revenues | $469,807 | $463,204 | $6,603 | 1.4% | | International site leasing revenues | $161,981 | $163,253 | $6,551 | 4.0% | | Site development revenues | $67,193 | $34,020 | $33,173 | 97.5% | | Total revenues | $698,981 | $660,477 | $46,327 | 7.0% | | Domestic site leasing operating profit | $400,386 | $397,715 | $2,671 | 0.7% | | International site leasing operating profit | $112,831 | $114,611 | $3,783 | 3.3% | | Site development operating profit | $13,668 | $6,883 | $6,785 | 98.6% | Expense and Income Changes (3 Months Ended June 30, 2025 vs. 2024, in thousands) | Metric | 2025 | 2024 | Constant Currency Change | Constant Currency % Change | | :------------------------------------------ | :----- | :----- | :----------------------- | :------------------------- | | Selling, general, and administrative expenses | $71,022 | $62,376 | $9,188 | 14.7% | | Asset impairment and decommission costs | $45,231 | $31,610 | $14,087 | 44.6% | | Depreciation, accretion, and amortization | $69,964 | $64,179 | $7,276 | 11.3% | | Total operating income | $334,781 | $354,470 | $(16,656) | -4.7% | | Interest expense | $(119,658) | $(97,530) | $(22,154) | 22.7% | | Other income (expense), net | $44,123 | $(104,859) | $1,329 | -96.4% | | Provision (benefit) for income taxes | $(35,059) | $12,337 | $3,027 | -13.1% | | Net income | $225,694 | $159,452 | $(27,745) | -12.2% | - Other income (expense), net, included a **$45.3 million gain** on intercompany loan remeasurement in Q2 2025, compared to a **$100.9 million loss** in Q2 2024[135](index=135&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=30&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) H1 2025 total revenues increased by **3.4%** to **$1.36 billion**, with net income up **40.7%** to **$446.5 million** Revenue and Operating Profit Changes (6 Months Ended June 30, 2025 vs. 2024, in thousands) | Metric | 2025 | 2024 | Constant Currency Change | Constant Currency % Change | | :-------------------------- | :----- | :----- | :----------------------- | :------------------------- | | Domestic site leasing revenues | $930,800 | $924,703 | $6,097 | 0.7% | | International site leasing revenues | $317,197 | $330,030 | $11,047 | 3.3% | | Site development revenues | $115,232 | $63,606 | $51,626 | 81.2% | | Total revenues | $1,363,229 | $1,318,339 | $68,770 | 5.2% | | Domestic site leasing operating profit | $793,107 | $793,244 | $(137) | -0.0% | | International site leasing operating profit | $220,841 | $232,545 | $5,382 | 2.3% | | Site development operating profit | $23,518 | $13,291 | $10,227 | 76.9% | Expense and Income Changes (6 Months Ended June 30, 2025 vs. 2024, in thousands) | Metric | 2025 | 2024 | Constant Currency Change | Constant Currency % Change | | :------------------------------------------ | :----- | :----- | :----------------------- | :------------------------- | | Selling, general, and administrative expenses | $137,241 | $131,074 | $8,074 | 6.2% | | Asset impairment and decommission costs | $82,257 | $75,258 | $9,404 | 12.5% | | Depreciation, accretion, and amortization | $135,012 | $140,929 | $(1,532) | -1.1% | | Total operating income | $669,690 | $677,828 | $137 | 0.0% | | Interest income | $18,935 | $14,360 | $5,056 | 35.2% | | Interest expense | $(223,805) | $(193,921) | $(29,929) | 15.4% | | Other income (expense), net | $76,286 | $(149,511) | $(21,362) | 918.0% | | Provision for income taxes | $(77,078) | $(4,590) | $10,240 | -18.9% | | Net income | $443,598 | $313,994 | $(26,117) | -6.3% | - Other income (expense), net, included a **$99.9 million gain** on intercompany loan remeasurement and an **$18.3 million loss** on asset sales (including a **$29.1 million non-cash adjustment** for currency translation) for the six months ended June 30, 2025[157](index=157&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) Defines and reconciles Adjusted EBITDA, a non-GAAP measure, used to evaluate operational profitability and industry comparability [Adjusted EBITDA](index=34&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA increased by **$13.7 million** (Q2) and **$16.0 million** (H1) due to higher site leasing and development profit - Adjusted EBITDA is defined as net income excluding non-cash straight-line leasing revenue/ground lease expense, non-cash compensation, net loss from extinguishment of debt, other income/expenses, acquisition/new business initiatives adjustments, asset impairment/decommission costs, interest income/expenses, depreciation/accretion/amortization, and income taxes[162](index=162&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Constant Currency Change | Constant Currency % Change | | :------------------------------------------ | :--------------------------- | :--------------------------- | :----------------------- | :------------------------- | | Net income | $225,694 | $159,452 | $(27,745) | -12.2% | | Total adjustments | $249,790 | $307,612 | $41,462 | -13.5% | | Adjusted EBITDA | $475,484 | $467,064 | $13,717 | 2.9% | | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Constant Currency Change | Constant Currency % Change | | :------------------------------------------ | :--------------------------- | :--------------------------- | :----------------------- | :------------------------- | | Net income | $443,598 | $313,994 | $(26,117) | -6.3% | | Total adjustments | $489,176 | $618,481 | $42,118 | -6.8% | | Adjusted EBITDA | $932,774 | $932,475 | $16,001 | 1.7% | [Liquidity and Capital Resources](index=35&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Liquidity is from net earnings and cash flow, with a net decrease in cash due to increased investing and financing activities Cash Flow Summary (in thousands) | Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Cash provided by operating activities | $669,273 | $720,046 | | Cash used in investing activities | $(342,696) | $(206,518) | | Cash used in financing activities | $(1,440,413) | $(467,935) | | Change in cash, cash equivalents, and restricted cash | $(1,113,836) | $45,593 | | Cash, cash equivalents, and restricted cash, end of period | $300,523 | $283,144 | [Operating Activities](index=36&type=section&id=Operating%20Activities) Cash from operating activities decreased by **$50.8 million** to **$669.3 million**, mainly due to working capital changes and higher expenses - The decrease in cash from operating activities was primarily due to increased cash outflows associated with working capital changes, higher interest expense, and increased cash selling, general, and administrative expenses[171](index=171&type=chunk) - Partially offsetting the decrease were increases in site development segment operating profit and interest income, and a decrease in tower and equipment decommission costs[171](index=171&type=chunk) [Investing Activities](index=36&type=section&id=Investing%20Activities) Cash used in investing activities increased to **$342.7 million**, driven by tower acquisitions, with **$1.255 billion** to **$1.275 billion** in planned 2025 capital expenditures Investing Activities (in thousands) | Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Acquisitions of towers and related assets | $(634,097) | $(38,194) | | Purchase of investments | $(434,307) | $(681,208) | | Proceeds from sale of investments | $685,840 | $651,650 | | Repayment (funding) of loan to unconsolidated joint venture | $115,000 | $(5,500) | | Proceeds from sale of assets | $40,469 | $0 | | Net cash used in investing activities | $(342,696) | $(206,518) | - Approximately **2,500 sites** from the Millicom transaction, valued at **$391.0 million**, are expected to close by September 1, 2025[172](index=172&type=chunk) - Expected discretionary cash capital expenditures for 2025 range from **$1.255 billion** to **$1.275 billion**, in addition to **$53.0 million** to **$63.0 million** in non-discretionary expenditures[173](index=173&type=chunk) [Financing Activities](index=37&type=section&id=Financing%20Activities) Cash used in financing increased to **$1.44 billion**, mainly due to **$1.165 billion** in Tower Securities repayment Financing Activities (in thousands) | Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------------ | :--------------------------- | :--------------------------- | | Net borrowings (repayments) under Revolving Credit Facility | $80,000 | $(60,000) | | Repayment of Tower Securities | $(1,165,000) | $0 | | Repurchase and retirement of common stock | $(130,696) | $(200,019) | | Payment of dividends on common stock | $(241,640) | $(213,464) | | Net cash used in financing activities | $(1,440,413) | $(467,935) | - Subsequent to June 30, 2025, the company borrowed **$25.0 million** and repaid **$70.0 million** under the Revolving Credit Facility, with **$35.0 million** outstanding as of the filing date[183](index=183&type=chunk) [Dividends](index=37&type=section&id=Dividends) Paid **$1.11 per share** cash dividends for Q1 and Q2 2025, totaling **$241.7 million**, with future dividends subject to Board discretion Cash Dividends Paid (in millions, except per share amounts) | Declaration Date | Record Date | Cash Paid Per Share | Aggregate Amount Paid | | :----------------- | :---------- | :------------------ | :-------------------- | | Feb 23, 2025 | Mar 13, 2025 | $1.11 | $122.3 | | Apr 27, 2025 | May 22, 2025 | $1.11 | $119.4 | | Aug 3, 2025 (Declared) | Aug 21, 2025 | $1.11 | N/A | [Registration Statements](index=38&type=section&id=Registration%20Statements) Has Form S-4 for **1.2 million** Class A common stock for acquisitions and an automatic Form S-3ASR, with no recent issuances - Approximately **1.2 million shares** of Class A common stock remain under the Form S-4 shelf registration statement for acquisitions[179](index=179&type=chunk) - No securities were issued under the automatic shelf registration statement on Form S-3ASR during the six months ended June 30, 2025[180](index=180&type=chunk) [Debt Instruments and Debt Service Requirements](index=38&type=section&id=Debt%20Instruments%20and%20Debt%20Service%20Requirements) Total debt principal was **$11.9 billion**, with **$7.2 billion** in Secured Tower Revenue Securities, and **$1.25 billion** debt service expected Outstanding Debt Instruments (in millions) | Security | Issue Date | Amount Outstanding | Interest Rate | Anticipated Repayment Date | | :-------------------------- | :--------- | :----------------- | :------------ | :------------------------- | | 2020-1C Tower Securities | Jul. 14, 2020 | $750.0 | 1.884% | Jan. 9, 2026 | | 2020-2C Tower Securities | Jul. 14, 2020 | $600.0 | 2.328% | Jan. 11, 2028 | | 2021-1C Tower Securities | May 14, 2021 | $1,165.0 | 1.631% | Nov. 9, 2026 | | 2021-2C Tower Securities | Oct. 27, 2021 | $895.0 | 1.840% | Apr. 9, 2027 | | 2021-3C Tower Securities | Oct. 27, 2021 | $895.0 | 2.593% | Oct. 9, 2031 | | 2022-1C Tower Securities | Nov. 23, 2022 | $850.0 | 6.599% | Jan. 11, 2028 | | 2024-1C Tower Securities | Oct. 11, 2024 | $1,450.0 | 4.831% | Oct. 9, 2029 | | 2024-2C Tower Securities | Oct. 11, 2024 | $620.0 | 4.654% | Oct. 8, 2027 | | 2020 Senior Notes | Feb. 4, 2020 | $1,500.0 | 3.875% | Feb. 15, 2027 | | 2021 Senior Notes | Jan. 29, 2021 | $1,500.0 | 3.125% | Feb. 1, 2029 | - The company expects its cash on hand, Revolving Credit Facility capacity, and cash flows from operations to be sufficient to service its **$1.25 billion** debt requirement over the next twelve months[192](index=192&type=chunk) [Inflation](index=40&type=section&id=Inflation) Inflation has not materially impacted operations, but higher interest rates may affect growth and increase refinancing costs - Higher interest rates are expected to impact growth rates and future operating results by potentially reducing wireless service provider capital expenditures and increasing debt refinancing costs[194](index=194&type=chunk) - Persistent high inflation could adversely affect future operating results, especially for site leasing revenues governed by long-term contracts with pre-determined pricing, except for contracts in South America and Africa with inflationary index-based escalators[195](index=195&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Exposed to interest rate and foreign currency risks; a **1%** rate increase impacts interest by **1.4%**, and a **10%** BRL move impacts revenues by **1.1%** Debt Obligation and Fair Value (in thousands) | Category | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | Fair Value | | :-------------------------- | :--- | :--- | :--- | :--- | :--- | :--------- | :---------- | :--------- | | Revolving Credit Facility | $0 | $0 | $0 | $0 | $80,000 | $0 | $80,000 | $80,000 | | 2024 Term Loan | $17,250 | $23,000 | $23,000 | $23,000 | $23,000 | $2,167,750 | $2,277,000 | $2,288,385 | | 2020-1C Tower Securities | $0 | $750,000 | $0 | $0 | $0 | $0 | $750,000 | $724,995 | | 2021 Senior Notes | $0 | $0 | $0 | $0 | $1,500,000 | $0 | $1,500,000 | $1,417,500 | | Total debt obligation | $17,250 | $1,938,000 | $3,038,000 | $1,473,000 | $3,053,000 | $3,062,750 | $12,582,000 | $11,897,397 | - A hypothetical **1%** increase in variable interest rates would increase interest expense by approximately **1.4%** for the six months ended June 30, 2025[198](index=198&type=chunk) - A hypothetical **10%** adverse movement in the Brazilian Real would cause revenues to decline by approximately **1.1%** and operating income by **0.6%** for the six months ended June 30, 2025[200](index=200&type=chunk)[201](index=201&type=chunk) [ITEM 4. Controls and Procedures](index=43&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025, ensuring accurate SEC reporting - The company's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025[207](index=207&type=chunk) [Special Note Regarding Forward-Looking Statements](index=42&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) Contains forward-looking statements subject to risks, including industry growth, interest rates, international operations, and regulatory compliance - The report contains forward-looking statements concerning expectations regarding wireless industry growth, tower portfolio expansion, capital allocation strategies, future dividends, and the impact of various market and regulatory factors[203](index=203&type=chunk)[205](index=205&type=chunk) - Key risk factors include macroeconomic influences, wireless service provider consolidation, high interest rates, international operational risks, acquisition integration challenges, and the ability to comply with REIT tax requirements[204](index=204&type=chunk)[208](index=208&type=chunk) PART II – OTHER INFORMATION [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q2 2025 share repurchase activities, including **617,521 shares** for **$130.7 million** under a new **$1.5 billion** plan [Issuer Purchases of Equity Securities](index=44&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) Repurchased **617,521 shares** for **$130.7 million** in Q2 2025, under a new **$1.5 billion** share repurchase plan Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | | :------------------- | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------- | :----------------------------------------------------------------------- | | 4/1/2025 - 4/30/2025 | 582,746 | $210.87 | 582,746 | $81,843,794 | | 5/1/2025 - 5/31/2025 | — | $— | — | $1,500,000,000 | | 6/1/2025 - 6/30/2025 | 34,775 | $224.32 | 34,775 | $1,492,199,197 | | Total | 617,521 | $211.63 | 617,521 | $1,492,199,197 | - On April 27, 2025, the Board of Directors authorized a new **$1.5 billion** share repurchase plan, replacing the prior plan. As of the filing date, **$1.45 billion** of authorization remained[209](index=209&type=chunk) [ITEM 5. Other Information](index=44&type=section&id=ITEM%205.%20Other%20Information) Confirms no officers or directors adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 [10b5-1 Trading Plans](index=44&type=section&id=10b5-1%20Trading%20Plans) No officers or directors adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - None of the company's officers or directors adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[210](index=210&type=chunk) [ITEM 6. Exhibits](index=44&type=section&id=ITEM%206.%20Exhibits) Lists all Form 10-Q exhibits, including CEO/CFO certifications and XBRL documents - Exhibits include certifications by the CEO and CFO (31.1, 31.2, 32.1, 32.2) and various XBRL taxonomy documents (101.INS, 101.SCH, 101.DEF, 101.CAL, 101.LAB, 101.PRE, 104)[211](index=211&type=chunk)

Core Insights - SBA Communications Corporation (SBAC) reported second-quarter 2025 adjusted funds from operations (AFFO) per share of $3.17, exceeding the Zacks Consensus Estimate of $3.12, but down 3.6% from the prior year [1] - The company raised its 2025 outlook despite facing higher costs and interest expenses [1] Financial Performance - Total quarterly revenues increased by 5.8% year over year to $699 million, although it fell short of the Zacks Consensus Estimate of $670.1 million [2] - Site-leasing revenues rose slightly to $631.8 million, with domestic revenues at $469.8 million and international revenues at $162 million [3] - Site development revenues surged by 97.5% year over year to $67.2 million [4] - Adjusted EBITDA totaled $475.5 million, up 1.8%, while the adjusted EBITDA margin decreased to 68.1% from 71.3% in the prior year [4] Cost and Expenses - The cost of site development increased significantly to $53.5 million, and interest expenses rose by 22.7% year over year to $119.7 million [5] Portfolio Activity - SBAC acquired 4,329 communication sites for a total cash consideration of $562.9 million and built 94 towers during the quarter [6] - The company owned or operated 44,065 communication sites as of June 30, 2025 [6] Cash Flow and Liquidity - As of June 30, 2025, SBAC had $0.3 billion in cash and cash equivalents, down from $0.7 billion as of March 31, 2025 [9] - The company ended the quarter with $12.3 billion in net debt and a net debt-to-annualized adjusted EBITDA ratio of 6.5X [9] Share Repurchase and Dividends - During the second quarter, SBAC repurchased 618,000 shares for $130.7 million and an additional 182,000 shares for $41.4 million after the quarter [10] - The company announced a cash dividend of $1.11 per share for the third quarter, payable on September 18, 2025 [12] Guidance Revision - SBAC revised its 2025 AFFO per share guidance to a range of $12.65-$13.02, up from the previous range of $12.53-$12.90 [13] - Adjusted EBITDA guidance was also revised upward to a range of $1,908-$1,928 million [13]