10-Q · May 5, 2026
SBA Communications reported solid Q1 2026 results with revenue of $703.4 million, up 4.1% year-over-year, despite a decline in operating income. EPS came in at $1.74, below expectations, resulting in a negative EPS…
Earnings analysis · 10-Q
SBAC earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
SBA Communications delivered a mixed Q3: revenue declined 2.5% year over year to $713.924 million and diluted EPS was $2.19 versus $2.20, but gross and operating margins improved and EPS increased sequentially from…
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SBA Communications delivered a mixed Q3: revenue declined 2.5% year over year to $713.924 million and diluted EPS was $2.19 versus $2.20, but gross and operating margins improved and EPS increased sequentially from $1.87. International site leasing growth and lower impairment costs offset weaker domestic leasing and a sharp decline in site development. Liquidity was supported by $994.107 million of nine-month operating cash flow and a $3.5 billion senior-notes issuance, although elevated churn, $3.557 billion of current debt maturities, and higher interest expense remain material concerns.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.19
What stood out
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Margins expanded despite lower revenue
Q3 revenue was $713.924 million, down 2.5% from $732.327 million a year ago but broadly stable versus $715 million in Q2 2026. Gross margin increased to 75.98% from 74.1% year over year, while operating margin rose to 51.51% from 51.1%.
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EPS recovered sequentially
Diluted EPS was $2.19 versus $2.20 in Q3 2025, but increased from $1.87 in Q2 2026. Net income attributable to SBA was $231.306 million compared with $236.816 million a year ago.
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International growth offset domestic weakness
International site leasing revenue increased to $210.974 million from $186.176 million, while international segment operating profit rose to $149.106 million from $129.146 million. Management attributed growth to 2,467 towers acquired and 685 towers built since July 1, 2025, partly offset by lease non-renewals and divestitures.
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Domestic leasing and development contracted
Domestic site leasing revenue declined to $454.380 million from $470.251 million, primarily due to Sprint, EchoStar, and other lease non-renewals. Site development revenue fell to $48.570 million from $75.900 million because of decreased carrier activity.
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Operating cash flow remained strong
Operating cash flow increased to $994.107 million for the nine months ended September 30, 2026, from $987.303 million a year earlier. Reported capital expenditures were $183.597 million, equivalent to approximately 18.5% of nine-month operating cash flow, excluding acquisitions.
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Debt structure was extended
The company issued $3.5 billion of 2026 Senior Notes and repaid $2.2 billion of term loans and $1.0 billion of prior revolving borrowings. It ended the quarter with no outstanding Revolving Credit Facility or Commercial Paper borrowings and a new $2.5 billion revolving facility.
What to watch
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Elevated carrier churn
The company expects domestic churn of $133.0-$136.0 million of cash site leasing revenue and international churn of $37.0-$39.0 million through 2026, driven partly by Sprint, EchoStar, and Oi wireline churn. Q3 domestic site leasing revenue already declined $15.871 million year over year.
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Near-term refinancing requirement
Debt current maturities increased to $3.557 billion from $1.936 billion at December 31, 2025. The company estimates total debt service of $4.018 billion over the next 12 months, including $1.167 billion associated with the 2021-1C Tower Securities anticipated repayment in November 2026.
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Higher interest burden and rates
Nine-month interest expense increased to $383.122 million from $343.959 million, while total debt was $12.975 billion at September 30, 2026. Management states that higher interest rates may continue to constrain wireless carrier capital spending and increase refinancing costs.
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Brazil tax assessment exposure
The company disclosed reasonably possible Brazilian tax losses of up to $115.5 million, excluding penalties and interest of $201.0 million. The matters relate to purchase-accounting adjustments and foreign-exchange losses on intercompany loans for tax years 2017 through 2020.
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International portfolio exits
Peru assets held for sale totaled $77.617 million and the company expects the sale to close in Q4 2026, subject to regulatory approval. The company also sold all towers in Chile and Ecuador during Q3, receiving $134.2 million of proceeds and exiting both countries.
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Working-capital and liquidity pressure
Cash and cash equivalents increased to $417.532 million from $264.568 million, but restricted cash fell to $11.143 million from $167.804 million and total cash, cash equivalents, and restricted cash declined to $433.778 million from $437.021 million. Current liabilities rose to $4.312 billion from $2.678 billion, creating a materially more negative current working-capital position.
Management's outlook
The filing does not provide updated full-year revenue or EPS guidance. It expects 2026 non-discretionary cash capital expenditures of $61.0-$65.0 million and discretionary cash capital expenditures of $480.0-$490.0 million. Management expects domestic churn of $133.0-$136.0 million and international churn of $37.0-$39.0 million through 2026; full-year revenue guidance was addressed in the November 2, 2026 earnings release rather than updated in this 10-Q.
Earlier filings 4
10-K · February 27, 2026
SBA Communications emphasizes expanding its site leasing business via organic densification and selective acquisitions, positioning itself as a scale leader with 46,328 towers and an average of 1.8 tenants per site as…
10-Q · November 1, 2024
SBA Communications reported Q3 revenue of $667,595,000 (down from $682,544,000 a year ago) and delivered diluted EPS of $2.40, beating estimates. Operating income rose to $375,596,000 (versus $248,604,000 YoY) largely…
10-Q · August 2, 2024
SBA Communications reported Q2 2024 results with a revenue of $660.5 million, which is slightly down from $679 million in Q2 2023, reflecting a 2.1% decrease year-over-year. The diluted EPS of $1.51 represents a notable…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.