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]

Core Insights - SBA Communications reported Q2 2025 GAAP revenue of $698.98 million, exceeding expectations and reflecting a 5.8% year-over-year increase [1][2] - The company raised its full-year 2025 financial guidance across all key metrics, indicating strong domestic demand and favorable leasing trends [1][14] Financial Performance - Diluted earnings per share (GAAP) were $2.09, slightly below the consensus estimate of $2.13, but net income increased by 41.5% year-over-year [1][2] - Adjusted Funds From Operations (AFFO) per share was $3.17, down 3.6% from the previous year [2] - Tower cash flow margin remained stable at 81.0% [5] Business Model and Strategy - SBA Communications primarily generates revenue through site leasing, which accounted for 97.4% of segment operating profit in Q2 2025 [5][10] - The company focuses on expanding its international tower footprint and maximizing tower capacity through colocation [4][12] - Recent strategic moves include the accelerated integration of over 4,300 sites from the Millicom acquisition and plans to divest Canadian tower assets [7] Growth Drivers - Domestic site leasing revenue grew to $469.8 million, while international site leasing revenue saw a slight decrease but increased by 4.0% when adjusted for currency [5] - The services segment revenue nearly doubled to $67.2 million, driven by increased carrier investment in network upgrades [6] Capital Allocation and Debt Management - The company repurchased 799,000 shares and maintained a quarterly dividend of $1.11 per share [8] - Net debt to adjusted EBITDA ratio stood at 6.5x, with net cash interest expense rising 23.2% year-over-year [8] Future Outlook - Management expects total revenue for 2025 to reach $2.78–2.83 billion and AFFO per share of $12.65–13.02, reflecting strong leasing backlogs and site development [14]

Core Insights - SBA Communications reported revenue of $698.98 million for the quarter ended June 2025, marking a year-over-year increase of 5.8% and exceeding the Zacks Consensus Estimate by 4.32% [1] - The earnings per share (EPS) for the same period was $3.17, compared to $1.51 a year ago, with an EPS surprise of 1.6% over the consensus estimate of $3.12 [1] Revenue Breakdown - Site Development revenue was $67.19 million, significantly higher than the estimated $44.19 million, reflecting a year-over-year increase of 97.5% [4] - International Site Leasing revenue reached $161.98 million, slightly below the estimated $157.61 million, showing a year-over-year decrease of 0.8% [4] - Domestic Site Leasing revenue was reported at $469.81 million, surpassing the average estimate of $462.11 million, with a year-over-year increase of 1.4% [4] - Total Site Leasing revenue amounted to $631.79 million, exceeding the two-analyst average estimate of $619.71 million, representing a year-over-year change of 0.9% [4] Profitability Metrics - Net Earnings Per Share (Diluted) was $2.09, slightly below the estimated $2.15 [4] - Segment operating profit for Site Leasing (Domestic + International) was $513.22 million, exceeding the average estimate of $505.28 million [4] - Segment operating profit for Site Development was reported at $13.67 million, significantly higher than the average estimate of $8.78 million [4] Stock Performance - Over the past month, shares of SBA Communications have returned -2.3%, while the Zacks S&P 500 composite has changed by +0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - SBA Communications reported quarterly funds from operations (FFO) of $3.17 per share, exceeding the Zacks Consensus Estimate of $3.12 per share, but down from $3.29 per share a year ago, representing an FFO surprise of +1.60% [1] - The company posted revenues of $698.98 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.32%, compared to $660.48 million in the same quarter last year [2] - Over the last four quarters, SBA Communications has surpassed consensus FFO estimates three times and topped consensus revenue estimates three times [2] Stock Performance - SBA Communications shares have increased approximately 12.2% since the beginning of the year, outperforming the S&P 500's gain of 6.1% [3] - The current consensus FFO estimate for the upcoming quarter is $3.19 on revenues of $688.68 million, and for the current fiscal year, it is $12.75 on revenues of $2.74 billion [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which SBA Communications belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook [8]

Financial Data and Key Metrics Changes - The company exceeded internal projections for the second quarter of 2025, leading to an increase in full-year guidance across all key metrics [6][17] - Domestic organic leasing revenue growth was 5% on a gross basis and 1% on a net basis, with $11 million of churn related to Sprint consolidation [17][18] - The company ended the quarter with $12.6 billion of total debt and $12.3 billion of net debt, with a leverage ratio of 6.3 times net debt to adjusted EBITDA [23] Business Line Data and Key Metrics Changes - The services business outperformed expectations, with a nearly 20% increase in full-year services revenue guidance, primarily driven by construction services [7][8] - International organic leasing revenue growth was 0.8% net, including 7.5% churn, while total international churn remained elevated due to ongoing carrier consolidation [19] Market Data and Key Metrics Changes - The U.S. market showed sustained activity levels, marking the sixth consecutive quarter of increased bookings, with carriers investing in wireless networks [6][7] - International markets continued to perform well, with new leases signed and ongoing densification, although challenges were noted in Brazil with one carrier customer [10][11] Company Strategy and Development Direction - The company is focused on expanding its presence in key markets while exiting subscale markets, as evidenced by the sale of its tower business in Canada [14][15] - The company plans to continue deploying capital towards share repurchases and debt reduction, maintaining a balanced approach to capital allocation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about domestic organic growth opportunities due to initiatives from major customers and the growth of fixed wireless access subscribers [8][9] - The reinstatement of the FCC's Spectrum Auction Authority is seen as a positive development for network capacity and investment [9] Other Important Information - The company declared a quarterly dividend of $1.11 per share, representing a 13% increase over the previous year [24] - S&P upgraded the company's corporate credit rating to BBB investment grade, reflecting stable cash flows and anticipated revenue growth [21][22] Q&A Session Summary Question: Durability of demand drivers for FWA and densification - Management feels confident about the long-term demand drivers, including fixed wireless access and new spectrum auctions, which are expected to require continued investment in networks [28][29] Question: Activity levels and revenue timing - Management noted an increase in activity but acknowledged that new colocations may delay revenue recognition compared to amendments [35][36] Question: Drivers of services business growth - The growth in services is linked to increased leasing activity and construction work, particularly in rural areas [38][39] Question: Domestic activity slowdown in Q2 - Management indicated that the slowdown was mostly rounding and not indicative of a trend, with expectations for increased activity in the second half of the year [45][46] Question: AI application growth as a driver - Management sees AI applications as a potential driver of increased activity, although specifics are hard to quantify [52][53] Question: Canadian asset sale and scaling challenges - The company faced challenges in scaling its Canadian operations due to market dynamics and the decision to sell was based on realizing a better valuation [56][58] Question: Exposure to U.S. Cellular and DISH - Management indicated limited planned churn from U.S. Cellular and ongoing operations with DISH, with total revenues of $20 million and $55 million respectively [68][70] Question: Millicom Towers feedback - Initial feedback from carriers regarding the Millicom Towers acquisition has been positive, suggesting better-than-expected lease-up opportunities [74][75] Question: Use of proceeds from Canadian sale - Proceeds from the Canadian sale will be used flexibly for various purposes, including debt reduction and share buybacks [78][79] Question: Long-term AFFO per share growth rate - Management anticipates a mid to high single-digit growth rate for AFFO per share, contingent on interest rate normalization [105][106] Question: Investment grade debt considerations - Management is exploring the balance between maintaining flexibility and the potential benefits of moving to investment grade debt [112][113]

Financial Data and Key Metrics Changes - The company exceeded internal projections for Q2 2025, leading to an increase in full-year guidance across all key metrics, both in total and on a constant currency basis [5][6] - Domestic organic leasing revenue growth for Q2 was 5% on a gross basis and 1% on a net basis, with $11 million of churn related to Sprint consolidation [16][17] - International organic leasing revenue growth for Q2 was 0.8% net, including 7.5% churn [18] Business Line Data and Key Metrics Changes - The services business outperformed expectations, with full-year services revenue guidance increased by almost 20%, primarily driven by construction services [6][7] - The company added approximately 4,300 sites through the Millicom transaction, enhancing its strategic positioning in Central America [12] - The backlog remains healthy, indicating positive momentum for the remainder of the year and into 2026 [6][10] Market Data and Key Metrics Changes - The U.S. market showed improved activity levels, marking the sixth consecutive quarter of increased bookings [5][6] - International markets continue to perform well, with a growing number of new leases signed, although some markets face elevated churn levels [10][11] - The company anticipates increased international churn of $5 million primarily related to Oi in Brazil [11] Company Strategy and Development Direction - The company is focused on expanding its presence in key markets while exiting subscale markets, as evidenced by the sale of its Canadian tower business [14][52] - The reinstatement of the FCC's Spectrum Auction Authority is viewed as a positive development, expected to boost network capacity and support next-generation wireless technologies [8] - The company plans to continue deploying capital towards share repurchases and debt reduction, maintaining a balanced approach to capital allocation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about domestic organic growth opportunities due to initiatives from major customers and the growth of fixed wireless access subscribers [7][8] - The company is closely monitoring the situation with Oi in Brazil, which has filed for judicial reorganization, impacting revenue expectations [11] - Management believes that the demand drivers for fixed wireless access and densification will remain strong through 2025 and 2026 [29][30] Other Important Information - The company ended the quarter with $12.6 billion of total debt and a leverage ratio of 6.3 times net debt to adjusted EBITDA [22] - A quarterly dividend of $1.11 per share was declared, representing a 13% increase over the previous year [23] - The company received an upgrade to BBB investment grade from S&P, reflecting stable cash flows and anticipated revenue growth [20][21] Q&A Session Summary Question: Durability of demand drivers for FWA and densification - Management feels confident about the durability of demand drivers, including fixed wireless access and new spectrum bands being auctioned [29][30] Question: Activity levels and revenue timing - Management noted an increase in activity but acknowledged that new colocations may delay revenue recognition compared to amendments [34][36] Question: Domestic activity and bookings growth - The slight slowdown in Q2 was attributed to rounding, with expectations for increased activity and revenue in the second half of the year [42][44] Question: AI application growth as a driver - Management sees AI applications as a potential driver of increased activity, although specifics are hard to quantify [49][50] Question: Canadian asset sale and scaling challenges - The company decided to exit Canada due to challenges in growing its portfolio and realized a favorable valuation on the assets [52][54] Question: Fixed wireless activity among multiple customers - Management confirmed that activity has broadened among multiple customers, not just one [60][61] Question: Planned churn and revenue profile changes - No planned churn is expected, with total revenue from U.S. Cellular and DISH being manageable [64][66] Question: Feedback on Millicom Towers and lease-up assumptions - Initial feedback from carriers regarding Millicom Towers has been positive, suggesting better opportunities than anticipated [70][71] Question: Use of proceeds from Canadian sale - Proceeds from the Canadian sale will be used flexibly for various purposes, including debt reduction and share buybacks [74][75] Question: Sprint churn expectations - Management clarified that the total expected churn from Sprint is $50 million in 2026 and $20 million thereafter, not annual [82][83] Question: Domestic leasing outlook for 2026 - While it's premature to discuss 2026, management expects a higher run rate at the end of the year based on current trends [108][110]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) SBA Communications reported strong Q2 2025 financial and operating results, including significant net income, industry-leading AFFO per share, a major acquisition, and continued share repurchases Q2 2025 Key Financial Highlights | Metric | Value | | :----------------------- | :---------- | | Net income | $225.7 million | | Net income per share | $2.09 | | AFFO per share | $3.17 | | Millicom sites closed | 4,323 | | Shares repurchased | 799 thousand | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Brendan Cavanagh highlighted strong domestic and international leasing, exceeding expectations with record colocations, an early Millicom acquisition, and a favorable full-year outlook, alongside a strategic Canadian tower asset sale - Domestic activity remained very strong, with carrier customers investing meaningfully in wireless networks. New U.S. leasing business was ahead of expectations, benefiting from high levels of new colocations[4](index=4&type=chunk) - International new leasing activity was solid, contributing to the highest company-wide total of new colocations in nearly three years[4](index=4&type=chunk) - Over **4,300 sites** from the Millicom acquisition were closed, several months ahead of schedule, contributing to an increased full-year outlook across all key financial metrics due to strong leasing results, backlogs, early Millicom closing, and favorable foreign currency movements[4](index=4&type=chunk) - The company entered an agreement to sell all **369 Canadian tower assets**, a divestiture expected to be immediately accretive to AFFO per share and aligns with the strategy to optimize or exit subscale markets[4](index=4&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The Board declared a quarterly cash dividend of **$1.11 per share** of Class A Common Stock, payable September 18, 2025, to shareholders of record August 21, 2025 - Quarterly cash dividend declared: **$1.11 per share** of Class A Common Stock[3](index=3&type=chunk) - Payment Date: September 18, 2025. Record Date: August 21, 2025[3](index=3&type=chunk) [Operating Results](index=2&type=section&id=Operating%20Results) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) SBA Communications reported mixed Q2 2025 consolidated financial results, with significant site development revenue growth, slight declines in site leasing and AFFO, but substantial net income and EPS increases due to a currency gain Consolidated Financial Results (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | $ Change ($M) | % Change | % Change excluding FX | | :--------------------------------- | :----------- | :----------- | :------------ | :--------- | :-------------------- | | Site leasing revenue | $631.8 | $626.5 | $5.3 | 0.9% | 2.1% | | Site development revenue | $67.2 | $34.0 | $33.2 | 97.5% | 97.5% | | Site leasing segment operating profit | $513.2 | $512.3 | $0.9 | 0.2% | 1.3% | | Tower cash flow | $511.2 | $503.9 | $7.3 | 1.4% | 2.6% | | Net cash interest expense | $111.5 | $90.5 | $21.0 | 23.2% | 23.0% | | Net income | $225.7 | $159.5 | $66.2 | 41.5% | (12.2%) | | Earnings per share — diluted | $2.09 | $1.51 | $0.58 | 38.5% | (12.3%) | | Adjusted EBITDA | $475.5 | $467.1 | $8.4 | 1.8% | 2.9% | | AFFO | $342.1 | $354.3 | ($12.2) | (3.4%) | (1.9%) | | AFFO per share | $3.17 | $3.29 | ($0.12) | (3.6%) | (2.1%) | - Net income for Q2 2025 includes a **$30.4 million gain** from currency-related remeasurement of intercompany loans, compared to a **$66.2 million loss** from such remeasurement in Q2 2024[8](index=8&type=chunk) [Segment Performance (Domestic vs. International)](index=2&type=section&id=Segment%20Performance%20%28Domestic%20vs.%20International%29) Domestic site leasing revenue and cash site leasing revenue grew, while international revenue declined on a reported basis but increased significantly excluding foreign exchange impacts, with international operating profit and tower cash flow also growing ex-FX Segment Financial Results (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | $ Change ($M) | % Change | % Change excluding FX | | :--------------------------------- | :----------- | :----------- | :------------ | :--------- | :-------------------- | | Domestic site leasing revenue | $469.8 | $463.2 | $6.6 | 1.4% | 1.4% | | Domestic cash site leasing revenue | $467.4 | $457.4 | $10.0 | 2.2% | 2.2% | | Domestic site leasing segment operating profit | $400.4 | $397.7 | $2.7 | 0.7% | 0.7% | | Domestic site leasing tower cash flow | $396.1 | $388.2 | $7.9 | 2.0% | 2.0% | | Int'l site leasing revenue | $162.0 | $163.3 | ($1.3) | (0.8%) | 4.0% | | Int'l cash site leasing revenue | $163.7 | $163.6 | $0.1 | 0.1% | 5.0% | | Int'l site leasing segment operating profit | $112.8 | $114.6 | ($1.8) | (1.6%) | 3.3% | | Int'l site leasing tower cash flow | $115.1 | $115.6 | ($0.5) | (0.5%) | 4.5% | [Key Margins](index=2&type=section&id=Key%20Margins) Tower Cash Flow Margin remained stable, while Adjusted EBITDA Margin decreased in Q2 2025 compared to the prior year period Key Margins (Q2 2025 vs Q2 2024) | Margin | Q2 2025 | Q2 2024 | | :------------------ | :------ | :------ | | Tower Cash Flow Margin | 81.0% | 81.1% | | Adjusted EBITDA Margin | 68.1% | 71.3% | [Strategic and Investing Activities](index=3&type=section&id=Strategic%20and%20Investing%20Activities) [Acquisitions and Tower Builds](index=3&type=section&id=Acquisitions%20and%20Tower%20Builds) SBA significantly expanded its communication site portfolio in Q2 2025 by acquiring **4,329 sites** (mainly Millicom) and building **94 new towers**, now operating over **44,000 sites** globally - Acquired **4,329 communication sites** in Q2 2025, including **4,323 from the Millicom transaction**, for **$562.9 million** cash consideration[12](index=12&type=chunk) - Built **94 new towers** during Q2 2025[12](index=12&type=chunk) - As of June 30, 2025, SBA owned or operated **44,065 communication sites** (**17,437 in the U.S.** and **26,628 internationally**)[12](index=12&type=chunk) - Approximately **2,500 Millicom sites** remain under contract for **$391.0 million**, expected to close by September 1, 2025[13](index=13&type=chunk)[20](index=20&type=chunk) [Divestitures](index=3&type=section&id=Divestitures) SBA agreed to sell all **369 Canadian tower assets** for **CAD$446.0 million**, expected to close in Q4 2025, optimizing its portfolio by exiting a subscale market - Agreement to sell all **369 Canadian towers** and related operations for **CAD$446.0 million**[14](index=14&type=chunk) - Transaction expected to close during Q4 2025; no adjustment made to full year 2025 Outlook due to closing date uncertainty[14](index=14&type=chunk)[21](index=21&type=chunk) [Capital Expenditures](index=3&type=section&id=Capital%20Expenditures) Total cash capital expenditures for Q2 2025 were **$645.1 million**, primarily for discretionary investments in new builds, augmentations, and acquisitions, alongside non-discretionary maintenance and corporate spending Q2 2025 Cash Capital Expenditures | Category | Amount ($M) | | :--------------------------------- | :---------- | | Total cash capital expenditures | $645.1 | | Non-discretionary (maintenance, corporate) | $13.8 | | Discretionary (new builds, augmentations, acquisitions, land) | $631.3 | - Spent **$9.4 million** to purchase land and easements and extend lease terms[12](index=12&type=chunk) [Financing and Liquidity](index=3&type=section&id=Financing%20and%20Liquidity) [Debt and Leverage](index=3&type=section&id=Debt%20and%20Leverage) SBA maintained a strong Q2 2025 balance sheet with total debt of **$12.6 billion** and a Net Debt to Annualized Adjusted EBITDA Leverage Ratio of **6.5x** (**6.3x** pro forma with Millicom assets) Q2 2025 Debt and Leverage | Metric | Amount ($B) | | :--------------------------------- | :---------- | | Total debt | $12.6 | | Total secured debt | $9.6 | | Cash and cash equivalents, short-term restricted cash, and short-term investments | $0.3 | | Net Debt | $12.3 | | Net Debt to Annualized Adjusted EBITDA Leverage Ratio | 6.5x | | Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratio | 4.9x | - Adjusted Net Debt to Annualized Adjusted EBITDA Leverage Ratio was **6.3x** on a pro forma basis for a full quarter of Adjusted EBITDA from acquired Millicom assets[4](index=4&type=chunk) - Only **$35.0 million** outstanding under the **$2.0 billion** Revolving Credit Facility as of the press release date[16](index=16&type=chunk) [Share Repurchases](index=3&type=section&id=Share%20Repurchases) The company repurchased **618 thousand shares** in Q2 2025 and **182 thousand shares** post-quarter, totaling **799 thousand shares**, with **$1.45 billion** remaining under the current authorization Share Repurchases | Period | Shares Repurchased | Amount ($M) | Average Price per Share | | :----------------------- | :----------------- | :---------- | :---------------------- | | Q2 2025 | 618 thousand | $130.7 | $211.63 | | Subsequent to Q2 2025 | 182 thousand | $41.4 | $227.92 | | Total (Q2 + subsequent) | 799 thousand | - | - | - **$1.45 billion** of authorization remained under the **$1.5 billion** stock repurchase plan after these repurchases[17](index=17&type=chunk) [Dividends](index=3&type=section&id=Dividends) In Q2 2025, the company declared and paid **$119.4 million** in cash dividends - Declared and paid a cash dividend of **$119.4 million** in Q2 2025[18](index=18&type=chunk) [Full Year 2025 Outlook](index=3&type=section&id=Full%20Year%202025%20Outlook) [Outlook Assumptions](index=3&type=section&id=Outlook%20Assumptions) The updated full year 2025 outlook assumes remaining Millicom site closings by September 1, 2025, excludes future acquisitions, repurchases, new debt, or Canadian disposition impacts, and incorporates specific foreign currency exchange rates - Assumes closing of remaining Millicom sites under contract by September 1, 2025, subject to regulatory approvals[20](index=20&type=chunk) - Does not reflect additional capital spending on unidentified revenue-producing assets, additional stock repurchases, or new debt financings in 2025[21](index=21&type=chunk) - Does not contemplate any impact from the disposition of Canadian operations if closed prior to year-end[21](index=21&type=chunk) Assumed Average Foreign Currency Exchange Rates (Q3-Q4 2025) | Currency | Rate (per 1.0 U.S. Dollar) | | :----------------------- | :-------------------------- | | Brazilian Reais | 5.60 | | Canadian Dollars | 1.36 | | Tanzanian Shillings | 2,650 | | South African Rand | 17.90 | [Updated Financial Guidance](index=4&type=section&id=Updated%20Financial%20Guidance) SBA Communications significantly increased its full year 2025 financial outlook across all key metrics, reflecting strong operational performance, early Millicom closing, and favorable foreign currency movements Full Year 2025 Outlook Update (vs. April 28, 2025 Outlook) | Metric | Full Year 2025 Outlook (Range) | Change from April 28, 2025 Outlook ($M) | Change from April 28, 2025 Outlook Excluding FX ($M) | | :--------------------------------- | :--------------------------------- | :---------------------------------------- | :---------------------------------------------------- | | Site leasing revenue | $2,565.0 to $2,590.0 | $29.0 | $21.0 | | Site development revenue | $215.0 to $235.0 | $35.0 | $35.0 | | Total revenues | $2,780.0 to $2,825.0 | $64.0 | $56.0 | | Tower Cash Flow | $2,058.0 to $2,083.0 | $15.0 | $10.0 | | Adjusted EBITDA | $1,908.0 to $1,928.0 | $17.0 | $12.0 | | Net cash interest expense | $435.0 to $441.0 | $5.0 | $5.0 | | Non-discretionary cash capital expenditures | $53.0 to $63.0 | — | — | | AFFO | $1,365.0 to $1,405.0 | $12.0 | $7.0 | | AFFO per share | $12.65 to $13.02 | $0.13 | $0.08 | | Discretionary cash capital expenditures | $1,255.0 to $1,275.0 | — | — | [Site Leasing Revenue Bridge](index=5&type=section&id=Site%20Leasing%20Revenue%20Bridge) The 2025 site leasing revenue outlook projects growth from new leases, amendments, and escalations, partially offset by churn, with non-organic revenue contributing significantly and foreign exchange having a negative impact 2024 Total Site Leasing Revenue to 2025 Outlook Bridge | Category | Consolidated ($M) | Domestic ($M) | International ($M) | | :-------------------------- | :------------------ | :-------------- | :------------------- | | 2024 Total Site Leasing Revenue | $2,527 | $1,862 | $665 | | (+) New Leases and Amendments | $51 to $57 | $35 to $39 | $16 to $18 | | (+) Escalations | $68 to $71 | $51 to $52 | $17 to $19 | | (-) Sprint Consolidation Churn | ($52) to ($50) | ($52) to ($50) | — | | (-) Regular Churn | ($58) to ($52) | ($22) to ($20) | ($36) to ($32) | | (+) Non-Organic Revenue | $73 to $73 | $7 to $7 | $66 to $66 | | (+ / -) Straight-line Revenue | ($8) to ($3) | ($11) to ($8) | $3 to $5 | | (+ / -) FX | ($18) to ($18) | — | ($18) to ($18) | | (+ / -) Other | ($18) to ($15) | ($2) to — | ($16) to ($15) | | 2025 Total Site Leasing Revenue | $2,565 to $2,590 | $1,868 to $1,882 | $697 to $708 | [Financial Statements](index=8&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements of operations show increased total revenues for Q2 and H1 2025, driven by site development growth, with net income attributable to SBA Communications Corporation also substantially increasing year-over-year Consolidated Statements of Operations (Key Figures) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | 6M 2025 ($K) | 6M 2024 ($K) | | :------------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Total revenues | $698,981 | $660,477 | $1,363,229 | $1,318,339 | | Operating income | $334,781 | $354,470 | $669,690 | $677,828 | | Net income | $225,694 | $159,452 | $443,598 | $313,994 | | Net income attributable to SBA Communications Corporation | $225,794 | $162,830 | $446,525 | $317,372 | | Diluted EPS | $2.09 | $1.51 | $4.14 | $2.93 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The June 30, 2025, balance sheet shows decreased total assets and liabilities compared to December 31, 2024, with significant current asset reduction due to restricted cash and prepaid expenses, and an improved shareholders' deficit Condensed Consolidated Balance Sheets (Key Figures) | Metric | June 30, 2025 ($K) | December 31, 2024 ($K) | | :------------------------------------------ | :----------------- | :--------------------- | | Total assets | $10,766,387 | $11,417,336 | | Total current assets | $523,808 | $1,978,720 | | Total current liabilities | $1,429,705 | $1,797,936 | | Total long-term liabilities | $14,210,420 | $14,675,206 | | Total liabilities, redeemable noncontrolling interests, and shareholders' deficit | $10,766,387 | $11,417,336 | | Shareholders' deficit | ($4,938,895) | ($5,109,938) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 saw decreased operating cash flows, significantly increased cash used in investing due to acquisitions, and reduced financing cash outflows, resulting in a net decrease in cash, cash equivalents, and restricted cash for the quarter Condensed Consolidated Statements of Cash Flows (Key Figures) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | | :------------------------------------------ | :----------- | :----------- | | Net cash provided by operating activities | $368,098 | $425,593 | | Net cash used in investing activities | ($580,962) | ($121,208) | | Net cash used in financing activities | ($158,278) | ($276,523) | | Net change in cash, cash equivalents, and restricted cash | ($363,583) | $18,812 | | Cash, cash equivalents, and restricted cash, end of period | $300,523 | $283,144 | - Acquisitions accounted for **$589.2 million** in cash used in investing activities in Q2 2025, a substantial increase from **$41.6 million** in Q2 2024[42](index=42&type=chunk) [Supplemental Financial Information & Non-GAAP Reconciliations](index=11&type=section&id=Supplemental%20Financial%20Information%20%26%20Non-GAAP%20Reconciliations) [Communication Site Portfolio Summary](index=11&type=section&id=Communication%20Site%20Portfolio%20Summary) SBA's communication site portfolio significantly grew in Q2 2025, primarily via acquisitions, reaching **44,065 sites** globally Communication Site Portfolio Summary (Q2 2025) | Category | Domestic | International | Total | | :------------------------------------------ | :------- | :------------ | :---- | | Sites owned at March 31, 2025 | 17,447 | 22,262 | 39,709 | | Sites acquired during the second quarter | 5 | 4,324 | 4,329 | | Sites built during the second quarter | 10 | 84 | 94 | | Sites decommissioned/reclassified during the second quarter | (25) | (42) | (67) | | Sites owned at June 30, 2025 | 17,437 | 26,628 | 44,065 | [Segment Operating Profit and Margin](index=11&type=section&id=Segment%20Operating%20Profit%20and%20Margin) Domestic site leasing operating profit increased with high margins, while international operating profit and margin slightly declined; site development operating profit and margin both significantly increased Segment Operating Profit and Margin (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Operating Profit ($K) | Q2 2024 Operating Profit ($K) | Q2 2025 Margin | Q2 2024 Margin | | :-------------------------- | :---------------------------- | :---------------------------- | :------------- | :------------- | | Domestic Site Leasing | $400,386 | $397,715 | 85.2% | 85.9% | | Int'l Site Leasing | $112,831 | $114,611 | 69.7% | 70.2% | | Site Development | $13,668 | $6,883 | 20.3% | 20.2% | [Non-GAAP Financial Measures Overview](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20Overview) SBA Communications utilizes non-GAAP measures including Cash Site Leasing Revenue, Tower Cash Flow, Adjusted EBITDA, FFO, AFFO, Net Debt, and Constant Currency to enhance investor understanding of financial performance and operational comparisons - Non-GAAP measures are used to evaluate economic productivity, allocate resources, and assess performance by excluding impacts of capital structure and asset base[49](index=49&type=chunk) - FFO, AFFO, and AFFO per share are industry-standard metrics for REITs and communication site companies, providing insights into financial performance by adjusting for non-cash items and sustaining capital expenditures[49](index=49&type=chunk) - Non-GAAP Debt Measures offer a complete understanding of net debt and leverage by including the full principal amount of debt and netting cash and equivalents[49](index=49&type=chunk) - Constant Currency Measures help evaluate business performance without the impact of foreign currency exchange rate fluctuations[49](index=49&type=chunk) [Impact of Foreign Currency Exchange Rates](index=13&type=section&id=Impact%20of%20Foreign%20Currency%20Exchange%20Rates) Foreign currency exchange rate changes significantly impacted reported Q2 2025 growth rates; growth rates excluding FX were generally higher, particularly for international site leasing metrics Q2 2025 Year-over-Year Growth Rates (with and without FX Impact) | Metric | Reported Growth Rate | Foreign Currency Impact | Growth Excluding Foreign Currency Impact | | :--------------------------------- | :------------------- | :---------------------- | :--------------------------------------- | | Total site leasing revenue | 0.9% | (1.2%) | 2.1% | | Total cash site leasing revenue | 1.6% | (1.3%) | 2.9% | | Int'l cash site leasing revenue | 0.1% | (4.9%) | 5.0% | | Total site leasing segment operating profit | 0.2% | (1.1%) | 1.3% | | Int'l site leasing segment operating profit | (1.6%) | (4.9%) | 3.3% | | Total site leasing tower cash flow | 1.4% | (1.2%) | 2.6% | | Int'l site leasing tower cash flow | (0.5%) | (5.0%) | 4.5% | | Net income | 41.5% | 53.7% | (12.2%) | | Earnings per share — diluted | 38.5% | 50.8% | (12.3%) | | Adjusted EBITDA | 1.8% | (1.1%) | 2.9% | | AFFO | (3.4%) | (1.5%) | (1.9%) | | AFFO per share | (3.6%) | (1.5%) | (2.1%) | [Cash Site Leasing Revenue & Tower Cash Flow Reconciliation](index=13&type=section&id=Cash%20Site%20Leasing%20Revenue%20%26%20Tower%20Cash%20Flow%20Reconciliation) Cash Site Leasing Revenue and Tower Cash Flow are reconciled from GAAP site leasing revenue by adjusting for non-cash items, both showing Q2 2025 growth with stable Tower Cash Flow Margins Cash Site Leasing Revenue and Tower Cash Flow (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | | :------------------------------------------ | :----------- | :----------- | | Site leasing revenue | $631,788 | $626,457 | | Non-cash straight-line leasing revenue | ($647) | ($5,466) | | Cash site leasing revenue | $631,141 | $620,991 | | Site leasing cost of revenues (excl. D&A) | ($118,571) | ($114,131) | | Non-cash straight-line ground lease expense | ($1,418) | ($2,988) | | Tower Cash Flow | $511,152 | $503,872 | | Tower Cash Flow Margin | 81.0% | 81.1% | Forecasted Tower Cash Flow for Full Year 2025 | Metric | Full Year 2025 (Range, $M) | | :------------------------------------------ | :------------------------- | | Site leasing revenue | $2,565.0 to $2,590.0 | | Non-cash straight-line leasing revenue | ($8.5) to ($3.5) | | Cash site leasing revenue | $2,556.5 to $2,586.5 | | Site leasing cost of revenues (excl. D&A) | ($490.0) to ($500.0) | | Non-cash straight-line ground lease expense | ($8.5) to ($3.5) | | Tower Cash Flow | $2,058.0 to $2,083.0 | [Adjusted EBITDA Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, reconciled from net income, increased in Q2 2025 despite a margin decrease, with the full-year 2025 forecast also projecting an increase Adjusted EBITDA Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | | :------------------------------------------ | :----------- | :----------- | | Net income | $225,694 | $159,452 | | Total interest expense | $126,306 | $109,542 | | Depreciation, accretion, and amortization | $69,964 | $64,179 | | Provision (benefit) for taxes | $35,229 | ($12,250) | | Adjusted EBITDA | $475,484 | $467,064 | | Annualized Adjusted EBITDA | $1,901,936 | $1,868,256 | | Adjusted EBITDA Margin | 68.1% | 71.3% | Forecasted Adjusted EBITDA for Full Year 2025 | Metric | Full Year 2025 (Range, $M) | | :------------------------------------------ | :------------------------- | | Net income | $865.5 to $910.5 | | Total interest expense | $505.0 to $495.0 | | Depreciation, accretion, and amortization | $289.5 to $279.5 | | Provision for taxes | $103.0 to $99.0 | | Adjusted EBITDA | $1,908.0 to $1,928.0 | [FFO, AFFO, and AFFO per Share Reconciliation](index=16&type=section&id=FFO%2C%20AFFO%2C%20and%20AFFO%20per%20Share%20Reconciliation) FFO and AFFO, key REIT metrics, showed FFO increasing in Q2 2025 while AFFO and AFFO per share slightly declined; the full-year 2025 forecast projects increases for both FFO and AFFO FFO, AFFO, and AFFO per Share (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($K) | Q2 2025 ($/share) | Q2 2024 ($K) | Q2 2024 ($/share) | | :------------------------------------------ | :----------- | :---------------- | :----------- | :---------------- | | Net income | $225,694 | $2.09 | $159,452 | $1.48 | | FFO | $339,175 | $3.14 | $253,275 | $2.35 | | AFFO | $342,117 | $3.17 | $354,327 | $3.29 | Forecasted AFFO for Full Year 2025 | Metric | Full Year 2025 (Range, $M) | Full Year 2025 (Range, $/share) | | :------------------------------------------ | :------------------------- | :------------------------------ | | Net income | $865.5 to $910.5 | $8.02 to $8.44 | | FFO | $1,289.0 to $1,324.0 | $11.94 to $12.27 | | AFFO | $1,365.0 to $1,405.0 | $12.65 to $13.02 | [Net Debt and Leverage Ratios](index=18&type=section&id=Net%20Debt%20and%20Leverage%20Ratios) SBA's Net Debt and Leverage Ratios, calculated using notional principal, showed a Leverage Ratio of **6.5x** as of June 30, 2025, adjusting to **6.3x** pro forma with acquired Millicom assets' EBITDA Net Debt and Leverage Ratios (June 30, 2025) | Metric | Amount ($K) | | :------------------------------------------ | :----------- | | Total debt | $12,582,000 | | Less: Cash and cash equivalents, short-term restricted cash and short-term investments | ($297,583) | | Net debt | $12,284,417 | | Annualized Adjusted EBITDA | $1,901,936 | | Leverage Ratio | 6.5x | | Total secured debt | $9,582,000 | | Net Secured Debt | $9,284,417 | | Secured Leverage Ratio | 4.9x | - Leverage Ratio adjusted to **6.3x** when reflecting a full quarter of EBITDA from the acquired Millicom assets[67](index=67&type=chunk) [Forward-Looking Statements & Risks](index=5&type=section&id=Forward-Looking%20Statements%20%26%20Risks) [Information Concerning Forward-Looking Statements](index=5&type=section&id=Information%20Concerning%20Forward-Looking%20Statements) This press release contains forward-looking statements on growth strategies, financial performance, capital allocation, 2025 outlook, acquisitions, portfolio growth, shareholder returns, balance sheet strength, customer investments, and asset sales, all subject to material risks and uncertainties - Forward-looking statements cover growth strategies, financial performance, capital allocation, 2025 outlook, timing of pending acquisitions (including Millicom), tower portfolio growth, asset purchases, share repurchases, debt financings, ability to return capital, balance sheet strength, customer network investments, international churn, and the sale of Canadian tower assets[29](index=29&type=chunk) - Key risk factors include macroeconomic conditions (interest rates, inflation, market volatility), timing and integration of the Millicom acquisition, economic climate for the wireless industry, ability to secure and retain tenants, expense management, consolidation among wireless providers, international operations risks (including FX), services business performance, land acquisition terms, future financing, and ability to meet new build and portfolio growth targets[31](index=31&type=chunk) - Risks related to pending acquisitions and dispositions include due diligence completion, regulatory approvals, fulfillment of contractual obligations, and the ability to accurately anticipate future performance and integration costs[32](index=32&type=chunk) - The outlook assumes the company continues to qualify for REIT treatment for U.S. federal income tax purposes[32](index=32&type=chunk) [Company Information](index=7&type=section&id=Company%20Information) [About SBA Communications Corporation](index=7&type=section&id=About%20SBA%20Communications%20Corporation) SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure, with over **44,000 sites** across the Americas and Africa, listed on NASDAQ (SBAC), part of the S&P 500, and a top REIT by market capitalization - Leading independent owner and operator of wireless communications infrastructure (towers, buildings, rooftops, DAS, small cells)[34](index=34&type=chunk) - Portfolio of more than **44,000 communication sites** throughout the Americas and Africa[34](index=34&type=chunk) - Listed on NASDAQ (SBAC), part of the S&P 500, and a top REIT by market capitalization[34](index=34&type=chunk)

Group 1 - Analysts expect SBA Communications (SBAC) to report quarterly earnings of $3.12 per share, reflecting a year-over-year decline of 5.2% [1] - Revenue is anticipated to be $670.06 million, which represents a 1.5% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Group 2 - Analysts forecast 'Revenues- Site Development' to reach $44.19 million, indicating a year-over-year increase of 29.9% [3] - 'Revenues- International Site Leasing' is expected to be $157.61 million, showing a year-over-year decline of 3.5% [4] - 'Revenues- Domestic Site Leasing' is projected to be $462.11 million, reflecting a slight year-over-year decrease of 0.2% [4] - The average prediction for 'Revenues- Site Leasing' is $619.71 million, indicating a year-over-year decline of 1.1% [4] Group 3 - Analysts expect 'Sites owned - International' to total 22,303, compared to 22,283 a year ago [5] - 'Sites owned - Domestic' is projected to reach 17,455, slightly down from 17,461 year-over-year [5] - The consensus for 'Segment operating profit- Site Leasing (Domestic + International)' is $505.28 million, down from $512.33 million in the previous year [5] Group 4 - The estimated 'Segment operating profit- Site Development' is $8.78 million, an increase from $6.88 million reported in the same quarter last year [6] - 'Depreciation, accretion and amortization' is expected to be $69.30 million according to analysts [6] - SBA Communications shares have decreased by 4.1% over the past month, contrasting with a 3.4% increase in the Zacks S&P 500 composite [6]