Array Stock Down 25%, But This $17.3 Million Buy Signals Confidence Amid Big Revenue Growth

On February 17, 2026, Newtyn Management disclosed a buy of 350,000 shares of Array Digital Infrastructure (NYSE:AD), an estimated $17.3 million trade based on quarterly average pricing.

What happened

According to an SEC filing dated February 17, 2026, Newtyn Management increased its position in Array Digital Infrastructure (NYSE:AD) by 350,000 shares. The estimated transaction value was $17.3 million, calculated using the average closing price during the quarter. The fund’s quarter-end stake stood at 1,700,000 shares, with the value rising $23.6 million from the previous period, which includes both trading activity and stock price fluctuations.

What else to know

• Top holdings after the filing:
  • NYSE: AD: $91.15 million (9.7% of AUM)
  • NASDAQ: INDV: $90.94 million (9.7% of AUM)
  • NASDAQ: QDEL: $86.10 million (9.1% of AUM)
  • NYSE: NVRI: $82.42 million (8.8% of AUM)
  • NASDAQ: TBPH: $80.45 million (8.5% of AUM)
• As of February 17, 2026, shares were priced at $51.24, down about 25% over the past year.

Company overview

Company snapshot

• Array Digital offers wireless telecommunications services, including voice, messaging, data, and a range of wireless devices and accessories; also provides tower rental and roaming services.
• The firm generates revenue through direct and third-party retail sales, device installment contracts, and service subscriptions across consumer, business, and government segments.
• It serves a broad customer base encompassing individual consumers, businesses, and government agencies throughout the United States.

Array Digital Infrastructure is a leading wireless telecommunications provider with significant scale, serving diverse customer segments through multiple distribution channels. The company leverages its extensive network infrastructure and product portfolio to drive recurring service revenues and capitalize on device sales. Strategic focus on both direct and partner-driven sales channels supports broad market reach and competitive positioning in the U.S. telecommunications sector.

What this transaction means for investors

Newtyn is shifting capital toward a business that just reinvented itself and is finally showing operating leverage. After divesting its wireless operations and monetizing spectrum, Array is now a focused tower company with cleaner earnings and visible cash flow.

Fourth-quarter revenue from continuing operations jumped to $60.3 million from $26.1 million a year ago, while full-year revenue climbed 58% to $163 million. Net income from continuing operations reached $172 million for 2025, or $1.94 per diluted share, a sharp swing from the prior year’s loss. Site rental revenue rose 51%, and tower tenancy ticked up to 1.03 across 4,450 towers. Management is guiding to $200 million to $215 million in revenue for 2026, with adjusted EBITDA of $200 million to $215 million.

Yes, the stock is still down about 25% over the past year, but the capital return story is real. The company paid a $23 special dividend in 2025 and another $10.25 in early 2026 after closing spectrum transactions.

Within a portfolio tilted toward healthcare and special situations, this 8.8% position stands out as an infrastructure play with contractual revenue, improving margins, and tangible cash generation. Long-term investors should watch tenancy growth and capital discipline more than short-term price swings.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends QuidelOrtho. The Motley Fool has a disclosure policy.