SBA Communications Corporation (SBAC) Q3 2025 Financial Results Summary
The report was released on November 3, 2025, by SBA Communications Corporation, detailing the financial results for the quarter ended September 30, 2025. Below is a summary of the key highlights and metrics from the report.
Financial Highlights
- Net Income: $240.4 million, or $2.20 per share.
- A decrease of 6.1% compared to $255.9 million the previous year.
- Adjusted Funds from Operations (AFFO):
- Total: $354.9 million, compared to $358.3 million a year ago.
- Per share: $3.30, a slight decrease of 0.6% from $3.32.
- Site Leasing Revenue: $656.4 million.
- An increase of 4.9% year-over-year from $625.7 million.
- Site Development Revenue: $75.9 million, up 81.2% from $41.9 million in Q3 2024.
- Total Revenue: $732.3 million, up 9.7% from $667.6 million the previous year.
Operating Performance
- Site Leasing Segment Operating Profit: $529.1 million, reflecting a 4.2% increase from $507.8 million.
- Tower Cash Flow: $526.4 million, up 3.7% from $507.6 million in the prior year.
- Net Cash Interest Expense: Increased to $114.6 million, a significant rise of 29.2% compared to $88.7 million.
- Adjusted EBITDA: $493.3 million, an increase of 4.4% from $472.6 million.
Dividend and Share Repurchase
- The Board of Directors declared a quarterly cash dividend of $1.11 per share of Class A Common Stock, payable on December 11, 2025.
- Share Repurchase Program:
- A total of 958 thousand shares were repurchased throughout the quarter and after, at a cost of approximately $194 million.
Segment Performance
- Domestic Site Leasing Revenue: $470.2 million, slightly up by 1.1% year-over-year.
- International Site Leasing Revenue: Increased to $186.2 million, a 15.8% growth from $160.8 million.
- Site Development Operating Profit: $13.4 million, a significant increase from $9.5 million last year.
Key Metrics
- Tower Cash Flow Margin: Declined to 80.4% from 81.3% in the same quarter last year.
- Adjusted EBITDA Margin: Reduced to 67.5% from 70.9%.
Investing Activities
- During Q3 2025, SBA acquired 447 communication sites for a total of $142.8 million, mainly from the Millicom transaction.
- Built 151 towers within the quarter.
- Total cash capital expenditures amounted to $71.9 million.
Debt and Liquidity
- Ended the quarter with total debt of $12.8 billion and cash and cash equivalents of approximately $0.5 billion.
- Net Debt to Annualized Adjusted EBITDA ratio was at 6.2x.
Outlook
- The full year 2025 outlook was revised downwards due to the timing of key transactions and is now projected as follows:
- Site leasing revenue: between $2,568.0 million to $2,578.0 million.
- Adjustments to AFFO: between $1,373.0 million to $1,397.0 million.
These metrics reflect SBA Communications Corporation’s continued growth trajectory, despite facing inflationary pressures and fluctuations in global markets. The plans set forth in the Q3 report indicate a strategic focus on expanding operations while managing financial leverage and maintaining shareholder returns.
Here are the extracted tables in HTML format:
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts)
| Revenues: | For the three months | For the nine months | ||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Site leasing | $ 656,427 | $ 625,697 | $ 1,904,424 | $ 1,880,430 |
| Site development | 75,900 | 41,898 | 191,132 | 105,504 |
| Total revenues | 732,327 | 667,595 | 2,095,556 | 1,985,934 |
| Operating expenses: | ||||
| Cost of revenues (exclusive of depreciation, accretion, and amortization shown below): | ||||
| Cost of site leasing | 127,281 | 117,948 | 361,330 | 346,893 |
| Cost of site development | 62,508 | 32,391 | 154,222 | 82,705 |
| Selling, general, and administrative expenses | 66,008 | 60,087 | 203,249 | 191,161 |
| Acquisition and new business initiatives related adjustments and expenses | 5,156 | 5,388 | 18,422 | 19,379 |
| Asset impairment and decommission costs | 20,322 | 12,670 | 102,578 | 87,928 |
| Depreciation, accretion, and amortization | 76,883 | 63,515 | 211,894 | 204,444 |
| Total operating expenses | 358,158 | 291,999 | 1,051,695 | 932,510 |
| Operating income | 374,169 | 375,596 | 1,043,861 | 1,053,424 |
| Other income (expense): | ||||
| Interest income | 5,517 | 6,999 | 24,452 | 21,359 |
| Interest expense | (120,154) | (95,711) | (343,959) | (289,632) |
| Non-cash interest expense | (567) | (7,192) | (10,148) | (22,715) |
| Amortization of deferred financing fees | (5,477) | (5,185) | (16,326) | (15,405) |
| Loss from extinguishment of debt, net | — | — | — | (4,428) |
| Other income (expense), net | 35,595 | 23,700 | 111,881 | (125,811) |
| Total other expense, net | (85,086) | (77,389) | (234,100) | (436,632) |
| Income before income taxes | 289,083 | 298,207 | 809,761 | 616,792 |
| Provision for income taxes | (48,652) | (42,316) | (125,730) | (46,906) |
| Net income | 240,431 | 255,891 | 684,031 | 569,886 |
| Net (income) loss attributable to noncontrolling interests | (3,615) | 2,643 | (689) | 6,020 |
| Net income attributable to SBA Communications Corporation | $ 236,816 | $ 258,534 | $ 683,342 | $ 575,906 |
| Net income per common share attributable to SBA Communications Corporation: | ||||
| Basic | $ 2.21 | $ 2.41 | $ 6.36 | $ 5.35 |
| Diluted | $ 2.20 | $ 2.40 | $ 6.34 | $ 5.33 |
| Weighted-average number of common shares | ||||
| Basic | 107,257 | 107,486 | 107,509 | 107,683 |
| Diluted | 107,559 | 107,922 | 107,831 | 108,072 |
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par values)
| ASSETS | September 30, | December 31, |
|---|---|---|
| 2025 | 2024 | |
| Current assets: | ||
| Cash and cash equivalents | $ 430,306 | $ 189,841 |
| Restricted cash | 30,467 | 1,206,653 |
| Accounts receivable, net | 158,126 | 145,695 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 49,564 | 19,198 |
| Prepaid expenses and other current assets | 144,061 | 417,333 |
| Total current assets | 812,524 | 1,978,720 |
| Property and equipment, net | 3,295,621 | 2,792,084 |
| Intangible assets, net | 2,725,045 | 2,388,707 |
| Operating lease right-of-use assets, net | 2,435,273 | 2,292,459 |
| Acquired and other right-of-use assets, net | 1,349,714 | 1,308,269 |
| Other assets | 642,062 | 657,097 |
| Total assets | $ 11,260,239 | $ 11,417,336 |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS’ DEFICIT | ||
| Current Liabilities: | ||
| Accounts payable | $ 219,725 | $ 59,549 |
| Accrued expenses | 97,536 | 81,977 |
| Current maturities of long-term debt | 772,562 | 1,187,913 |
| Deferred revenue | 132,336 | 127,308 |
| Accrued interest | 37,845 | 62,239 |
| Current lease liabilities | 291,537 | 261,017 |
| Other current liabilities | 59,427 | 17,933 |
| Total current liabilities | 1,610,968 | 1,797,936 |
| Long-term liabilities: | ||
| Long-term debt, net | 11,932,919 | 12,403,825 |
| Long-term lease liabilities | 2,019,508 | 1,903,439 |
| Other long-term liabilities | 554,222 | 367,942 |
| Total long-term liabilities | 14,506,649 | 14,675,206 |
| Redeemable noncontrolling interests | 76,605 | 54,132 |
| Shareholders’ deficit: | ||
| Preferred stock – par value $0.01, 30,000 shares authorized, no shares issued or outstanding | — | — |
| Common stock – Class A, par value $0.01, 400,000 shares authorized, 106,773 shares and 107,561 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 1,068 | 1,076 |
| Additional paid-in capital | 3,038,027 | 2,975,455 |
| Accumulated deficit | (7,284,980) | (7,326,189) |
| Accumulated other comprehensive loss, net | (688,098) | (760,280) |
| Total shareholders’ deficit | (4,933,983) | (5,109,938) |
| Total liabilities, redeemable noncontrolling interests, and shareholders’ deficit | $ 11,260,239 | $ 11,417,336 |
