Elevated Churn Outlook
Management expects domestic cash site leasing churn of $132M-$136M and international churn of $36M-$40M for the full year 2026, driven by Sprint, EchoStar, and Oi wireline.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
SBAC's Q2 FY2026 results reflect a tale of two segments: international site leasing surged from the Millicom acquisition, while domestic site leasing continued to erode from Sprint and EchoStar lease non-renewals. Management expects elevated churn through 2026, guiding domestic cash site leasing churn between $132 million and $136 million. International constant currency revenue growth of 22.4% highlights the acquisition's success, but site development revenue dropped 23.5% on lower carrier activity. Net income fell 12% as higher interest costs and a lower non-cash gain on intercompany loans offset operating gains, despite lower impairment charges.
Revenue
$715.27M
+2.33% YoY
EPS (Diluted)
$1.87
-10.53% YoY
Gross Margin
75.4%
+0.0 pts YoY
Operating Income
$351.86M
+5.10% YoY
Source: SEC XBRL
Sba Communications (SBAC) reported Q2 FY2026 revenue of $715.27M, up 2.3% year over year. Operating margin was 49.2%, up 1.3 points from 47.9% a year earlier. SBAC's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 3.03 | 1.92 | Beat +58.2% |
| Mar 2026 | 1.74 | 1.81 | Miss -4.1% |
| Dec 2025 | 3.47 | 3.87 | Miss -10.3% |
| Sep 2025 | 2.20 | 2.24 | Miss -1.8% |
Adjusted (non-GAAP) EPS of $3.03 versus the $1.92 analyst consensus — a +58.2% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.87.
3 reported segments · SEC XBRL
Segment revenue totals $715.27M, which is the $715.27M of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure SBAC itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Management expects domestic cash site leasing churn of $132M-$136M and international churn of $36M-$40M for the full year 2026, driven by Sprint, EchoStar, and Oi wireline.
Source: 10-Q Item 2 MD&A
International site leasing added 6,789 towers from the Millicom transaction since Q2 2025, contributing to 22.4% constant currency revenue growth.
Source: 10-Q Item 2 MD&A
Site development revenue fell 23.5% and operating profit dropped 49.9% as carrier activity decreased, with management noting increased construction costs as a percentage of revenue.
Source: 10-Q Item 2 MD&A
Interest expense rose $8.1M due to higher average debt principal and rates after repaying 2020-1C Tower Securities with revolver borrowings.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Current liabilities more than tripled YoY to $4.34B, significantly outpacing current assets of $745M, resulting in a current ratio of 0.17. This may pressure near-term refinancing needs.
Source: 10-Q Balance Sheet (XBRL)
Stockholders' equity remained deeply negative at -$4.63B, with long-term debt of $12.73B, indicating substantial financial leverage and limited equity cushion.
Source: 10-Q Balance Sheet (XBRL)
Domestic site leasing revenues declined 3.7% due to Sprint and EchoStar lease non-renewals, with management guiding for significant churn continuing through 2026.
Source: 10-Q Income Statement (XBRL) and MD&A
Constant currency disclosure shows that forex movements reduced international revenue growth by $13.1M and significantly impacted net income, with Brazil being a key exposure.
Source: 10-Q Income Statement (XBRL)
Site development operating profit fell 30.8% as revenues declined and construction costs rose, highlighting vulnerability to carrier spending cycles.
Source: 10-Q Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 715.27 $M | 698.98 $M | +2.33% |
Cost of Revenue $M | 176.00 $M | 172.10 $M | +2.27% |
Gross Profit $M | 539.27 $M | 526.89 $M | +2.35% |
Operating Income $M | 351.86 $M | 334.78 $M | +5.10% |
Net Income $M | 198.78 $M | 225.79 $M | -11.97% |
EPS (Basic) $ | 1.87 $ | 2.10 $ | -10.95% |
EPS (Diluted) $ | 1.87 $ | 2.09 $ | -10.53% |
SG&A Expense $M | 77.55 $M | 71.02 $M | +9.19% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
SBA Communications (SBAC) delivered 5.9% revenue growth to $703.4M in Q1 2026, but net income fell 16.3% YoY to $184.8M amid rising costs, a sharp drop in cash, and a surge in current liabilities that pushed the current ratio to a critically low 0.23.
SBA Communications (SBAC) delivered FY2025 revenue of $2.82B (+5.1% YoY) and net income of $1.05B (+40.6% YoY), though operating income declined 6.5% due to rising costs, while the company maintained strong cash generation and reduced long-term debt by $691M.
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