Why Is SBA Communications (SBAC) Down 4.7% Since Last Earnings Report?

Core Viewpoint - SBA Communications reported a mixed performance in its recent earnings, with adjusted funds from operations (AFFO) per share beating estimates but showing a decline compared to the previous year. The company experienced revenue growth, but higher costs and interest expenses impacted overall performance [3][4]. Financial Performance - The third-quarter 2025 adjusted funds from operations (AFFO) per share was $3.30, exceeding the Zacks Consensus Estimate of $3.19, but down from $3.32 in the prior-year period [3]. - Total quarterly revenues increased by 10% year over year to $732.3 million, surpassing the Zacks Consensus Estimate of $705.1 million [4]. - Site-leasing revenues rose by 4.9% year over year to $656.4 million, with domestic site-leasing revenues at $470.3 million (up 1.5%) and international site-leasing revenues at $186.2 million (up 14.4%) [5]. - The site-leasing operating profit was $529.1 million, a 4.2% increase year over year, contributing 97.5% to total operating profit [6]. - Adjusted EBITDA totaled $493.3 million, reflecting a 4.4% increase, while the adjusted EBITDA margin decreased to 67.5% from 70.9% in the prior-year quarter [7]. Portfolio Activity - In Q3, SBA Communications acquired 447 communication sites for $142.8 million and built 151 towers, bringing the total to 44,581 communication sites as of September 30, 2025 [8]. - The company spent $8.9 million on land and easements, with total cash capital expenditure at $71.9 million [9]. - Following the quarter-end, SBA Communications closed on the acquisition of 2,020 sites related to the Millicom transaction for $217.4 million [10]. Cash Flow & Liquidity - As of September 30, 2025, SBA Communications had $0.5 billion in cash and cash equivalents, up from $0.3 billion as of June 30, 2025 [12]. - The company ended the quarter with $12.3 billion in net debt, resulting in a net debt-to-annualized adjusted EBITDA ratio of 6.2X [12]. - During Q3, SBA Communications generated nearly $318 million of net cash from operating activities, compared to $304.7 million in the year-ago quarter [14]. 2025 Guidance - SBA Communications expects AFFO per share in the range of $12.76-$12.98, adjusted EBITDA between $1,909-$1,919 million, and site-leasing revenues projected between $2,568 and $2,578 million [15].