SBA Communications’ domestic leasing revenue slips 3.4% while overseas climbs (NASDAQ: SBAC)

What happened

SBA Communications Corporation (NASDAQ: SBAC) reported third-quarter domestic site leasing revenue of $454.4 million, down 3.4% from $470.2 million a year earlier.

International growth kept the total higher. Total site leasing revenue rose 1.4% to $665.4 million from $656.4 million in the third quarter of 2025. International site leasing revenue grew 13.3% to $211.0 million from $186.2 million. Net income attributable to SBA was $231.3 million, or $2.19 per share.

Site development revenue fell 36.0% to $48.5 million from $75.9 million. AFFO per share, which the company calls industry-leading, was $3.19, down 3.3% from $3.30 a year earlier.

Key numbers

Metric	Latest	Change	Source
Total site leasing revenue	$665.4 million	from $656.4 million, +1.4%	SEC 8-K, Exhibit 99.1
Domestic site leasing revenue	$454.4 million	from $470.2 million, -3.4%	SEC 8-K, Exhibit 99.1
International site leasing revenue	$211.0 million	from $186.2 million, +13.3%	SEC 8-K, Exhibit 99.1
AFFO per share	$3.19	from $3.30, -3.3%	SEC 8-K, Exhibit 99.1
Share repurchases in the quarter	$300.0 million		SEC 8-K, Exhibit 99.1

Read more: SBA Communications (SBAC) company research

Where revenue and profit moved

Currency flattered the overseas gain. Excluding foreign exchange, total site leasing revenue grew 0.4% and international site leasing revenue grew 9.8%.

Profit was mixed. The tower cash flow margin slipped to 79.7% from 80.4%. The adjusted EBITDA margin rose to 68.8% from 67.5%. Adjusted EBITDA itself fell 1.1% to $488.1 million. Domestic site leasing segment operating profit dropped 4.4% to $382.6 million. The international segment's rose 15.5% to $149.1 million.

Net income fell 3.3% to $232.4 million. It includes a $1.6 million loss, net of taxes, on the currency remeasurement of intercompany loans. A year earlier the same item was a $25.5 million gain.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

Refinancing and buybacks

On July 23, SBA issued three tranches of unsecured senior notes. They were $1.35 billion at 4.875% due Jan. 15, 2030, $1.35 billion at 5.150% due July 15, 2031, and $0.8 billion at 5.450% due July 15, 2033. The notes carry a blended rate of 5.113% and a weighted average maturity of 4.9 years.

Proceeds repaid the $1.0 billion then outstanding on the revolving credit facility and the $2.2 billion 2024 Term Loan. The rest went to general corporate purposes. SBA replaced the facility with a new unsecured revolver maturing July 23, 2031. On Sept. 25 it also set up a commercial paper program of up to $2.5 billion outstanding at any time, backed by the revolver. As of the release date, nothing was outstanding under either.

Total debt stood at $13.0 billion at Sept. 30, including $6.5 billion of secured debt. Cash and short-term investments were $0.5 billion. Net debt was $12.5 billion, or 6.4x annualized adjusted EBITDA. Net secured debt was 3.1x.

SBA repurchased 1.7 million shares for $300.0 million, an average of $179.68 a share. The purchases fall under its $1.5 billion plan, which still has authorization remaining. It also paid $131.3 million in dividends during the quarter.

The updated 2026 outlook

SBA now expects full-year site leasing revenue of $2.64 billion to $2.66 billion. The midpoint is $13.0 million below the Aug. 3 outlook. Adjusted EBITDA is expected at $1.92 billion to $1.93 billion, $7.0 million lower at the midpoint. AFFO per share is expected at $12.15 to $12.37, up $0.08.

The sale of the Chile and Ecuador towers cut the outlook by about $10.0 million of site leasing revenue and $4.0 million of adjusted EBITDA. Excluding currency and those sales, the site leasing revenue midpoint is up $2.0 million and AFFO per share is up $0.11. The AFFO per share outlook assumes 105.7 million diluted shares and no further repurchases.

Why it matters

OptimistFi has argued that SBA works only if carrier demand for macro-site capacity and disciplined leverage outweigh slower wireless capex cycles and rate sensitivity. This quarter gives both sides evidence, so OptimistFi reads it as mixed.

CEO Brendan Cavanagh said demand for tower assets remains strong. He pointed to the upper C-band auction and the move toward 6G as drivers of new deployments. Domestic leasing revenue has not shown that yet. The 2026 domestic bridge lists $55 million to $56 million of Sprint consolidation churn and $56 million of EchoStar churn. The domestic outlook sits below the $1.87 billion booked in 2025.

On leverage, the new notes mature between 2030 and 2033 and the revolver is undrawn. But net cash interest expense rose 3.8% to $118.9 million from $114.6 million. The buyback also ran in the same quarter that AFFO per share fell.

What's next

The sale of the Peru towers is expected to close in the fourth quarter of 2026, subject to regulatory approval. The outlook makes no adjustment for it. SBA also expects to close purchases of 69 communication sites for $17.9 million in cash by the end of the fourth quarter.

The $1.17 billion of 2021-1C Tower Securities has an anticipated repayment date of Nov. 9. The outlook assumes a refinancing in the fourth quarter at 5.25%, but SBA has not finalized its plan. The fourth-quarter report is the next test of whether domestic site leasing revenue keeps falling while international growth continues.

More from OptimistFi

• SBAC stock: research and coverage of SBA Communications
• Stock research on every company OptimistFi covers

From OptimistFi Perps