Earnings release
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ARRAY TECHNOLOGIES ARRAY Technologies Reports Financial Results for the Second Quarter 2026 August 5 , 2026 Delivers Record $ 2.5 Billion Orderbook While Advancing Innovation Strategy 2026 Second Quarter Business Highlights • Record total executed contracts and awarded orders at June 30 , 2026 of $ 2.5 billion , a 37 % increase year - over - year • Over $ 500 million of new orders in the quarter and a trailing twelve - month book - to - bill of 1.5x • Surpassed 100 gigawatts of tracker products delivered worldwide , a significant milestone representing ARRAY's successful leadership in the utility - scale solar industry • Formally launched DuraTrack D2STM for international markets • Announced next - generation OmniTrackⓇ , which accommodates an industry - leading 2 ° of slope change between adjacent posts 2026 Second Quarter Financial Highlights ( in millions , except per share ) Revenue Gross margin Adjusted gross margin ( 1 ) Net income to common stockholders Adjusted EBITDA ( 1 ) Net income per basic and diluted common share Adjusted net income per diluted common share ( 1 ) 2Q 2026 $ 342.1 29.1 % 30.8 % $ 8.4 $ 63.3 $ 0.05 $ 0.24 EA EA EA EA ALBUQUERQUE , N.M. , Aug. 05 , 2026 ( GLOBE NEWSWIRE ) -- ARRAY Technologies , Inc. ( NASDAQ : ARRY ) ( " ARRAY " or the " Company " ) , a leading global provider of solar tracking technology and fixed - tilt products , foundation solutions , software systems and services , today announced financial results for its second quarter ended June 30 , 2026 . " ARRAY delivered a strong second quarter while achieving a significant company milestone , surpassing 100 gigawatts of cumulative tracker product shipments since our founding . For the third consecutive quarter , we achieved a record orderbook of $ 2.5 billion , reflecting continued share gains and strong execution . During the quarter , we advanced our innovation strategy with the formal launch of DuraTrack D2S and our next - generation OmniTrack product offerings . We continued to build on that momentum in July with the announcement of our new 60 ° tracker capabilities and the launch of the ARRAY Atlas " suite of foundation - to - tracker solutions . Our pending acquisition of Affordable Wire Management ( AWM ) ( 2 ) , will further advance our balance of system strategy by adding high - margin cable management and safety products . We remain focused on expanding our ability to provide a more integrated , technically interoperable solution set for utility - scale solar customers , " said Chief Executive Officer , Kevin G. Hostetler . TM Mr. Hostetler continued , " Supported by our strong first - half financial performance , we are updating our full - year guidance . While we will continue to monitor market dynamics , we believe our $ 2.5 billion record orderbook , strong customer demand , and expanding solution set give us confidence in our ability to execute and create long - term value . " Updating Full Year 2026 Guidance Following our strong first half performance , we now expect full - year Adjusted Gross Margin ( 1 ) to be in the range of 27 % to 28 % . As a result , for the year ending December 31 , 2026 , the Company now expects : • Revenue to be in the range of $ 1.4 billion to $ 1.5 billion , consistent with the prior range • Adjusted EBITDA ( 3 ) to be in the range of $ 210 million to $ 230 million , previously $ 200 million to $ 230 million Adjusted net income per common share ( 3 ) to be in the range of $ 0.68 to $ 0.75 , previously $ 0.65 to $ 0.75 For the quarter ending September 30 , 2026 , the Company expects revenue to be in the range of $ 310 million to $ 330 million . ( 1 ) A reconciliation of the most comparable GAAP measure to its Non - GAAP measure is included below . ( 2 ) The transaction is expected to close in the third quarter of 2026 , subject to receiving any required regulatory approvals and the satisfaction of other
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customary closing conditions. (3) A reconciliation of projected Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income per common share, which are forward-looking measures that are not prepared in accordance with GAAP, to the most directly comparable GAAP financial measures, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, revaluation of the fair-value of our contingent consideration, and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA and Adjusted net income per common share. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments are inherently unpredictable as to if or when they may occur. As such, for our 2026 guidance, we have not included estimates for these items and are unable to address the probable significance of the unavailable information, which could be material to future results. Supplemental Presentation and Conference Call Information ARRAY has posted a supplemental presentation to its website, which will be discussed during the conference call hosted by management today, August 5, 2026, at 5:00 p.m. ET. The conference call can be accessed live over the phone by dialing (888)-396-8049 (domestic) or (416)-764-8646 (international), or via webcast of the live conference call by logging onto the Investor Relations section of the Company’s website at http://ir.arraytechinc.com. A telephonic replay will be available approximately three hours after the call by dialing (877)-660-6853 (domestic), or (201)- 612-7415 (international), with the passcode 13761476. The telephonic replay will be available until 11:59 p.m. (ET) on August 19, 2026. The online replay will be available for 14 days on the same website, immediately following the call. About ARRAY Technologies, Inc. ARRAY Technologies (NASDAQ: ARRY) is a leading global provider of solar tracking technology and fixed-tilt systems to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY ’ s high-quality solar trackers, fixed-tilt systems, software platforms, foundation solutions, and field services combine to optimize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology - relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com. Investor Relations Contact: Investor Relations 505-437-0010 investors@arraytechinc.com Media Contact: Steven Kirsch 505-738-6923 steven.kirsch@arraytechinc.com Forward-Looking Statements This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, technology or product developments, financing and investment plans, dividend policy, competitive position, industry and regulatory environment, including potential regulatory reform related to energy credits, uncertainty relating to the implementation of tariffs and changes in trade policy, including the reduction or elimination of certain government incentives, ability to provide 100% domestic content trackers, expectations regarding the macroeconomic environment and geopolitical developments, including the effects of tariffs and changes in trade policy, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” “positioned, ” “designed to,” or similar expressions and the negatives of those terms. ARRAY’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: changes in growth or the rate of growth in demand for solar energy projects; factors outside of our control affecting the variability and demand for solar energy, including but not limited to, the retail price of electricity, availability of in-demand components like high-voltage breakers, various policies related to the permitting and interconnection costs of solar plants, and the availability of incentives for solar energy and solar energy production systems, which makes it difficult to predict our future prospects; competitive pressures within our industry; competition from conventional and renewable energy sources; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; a drop in the price of electricity derived from the utility grid or from alternative energy sources; fluctuations in our results of operations across fiscal periods, which could make our future performance difficult to predict and could cause our results of operations for a particular period to fall below expectations; any increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system and reduce the demand for our products; existing electric utility industry policies and regulations, and any subsequent changes or new related policies and regulations, including as a result of the One Big Beautiful Bill Act, which may present technical, regulatory and economic barriers to the purchase and use of solar energy systems and may significantly reduce demand for our products or harm our ability to compete; the interruption of the flow of materials from international vendors, which could disrupt our supply chain, including as a result of the imposition of new and/or additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the continuation or imposition of import tariffs or other import restrictions; geopolitical, macroeconomic and other market conditions unrelated to our operating performance including but not limited to a pandemic, the Russia-Ukraine war, attacks on shipping in the Red Sea and Strait of Hormuz, conflict in the Middle East (including, but not
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limited to, the war in Iran), changing trade policies, inflation and interest rates; our ability to convert our orders in backlog into revenue; the reduction, elimination or expiration, or our failure to optimize the benefits of government incentives for, or regulations mandating the use of, renewable energy and solar energy, particularly in relation to our competitors, which could reduce demand for solar energy systems; failure to, or incurrence of significant costs in order to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary rights; delays in construction projects and any failure to manage our inventory; significant changes in the cost of raw materials; disruptions to transportation and logistics, including increases in shipping costs; defects or performance problems in our products, which could result in loss of customers, reputational damage and decreased revenue; delays, disruptions or quality control problems in our product development operations; the development, deployment and commercialization of new products, including DuraTrack D2S, OmniTrack 2.0, the 60 degree variant of DuraTrack, and our ARRAY Atlas suite of foundation-to-tracker solutions; our ability to retain our key personnel or failure to attract additional qualified personnel; additional business, financial, regulatory and competitive risks due to our continued planned expansion into new markets; cybersecurity or other data incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information and the use of artificial intelligence by cyber threat actors; a failure to maintain an effective system of integrated internal controls over financial reporting, which may impair our ability to report our financial results accurately; our substantial indebtedness, risks related to actual or threatened public health epidemics, pandemics, outbreaks or crises; changes to laws and regulations, including changes to tax laws and regulations, that are applied adversely to us or our customers; our ability to complete the acquisition of Affordable Wire Management, LLC (“AWM”) on the anticipated terms and timetable, including the possibility that closing conditions may not be satisfied or waived; our ability to successfully integrate APA Solar, LLC (“APA”) and AWM into our existing operations, realize the anticipated benefits or synergies of the acquisitions of APA and AWM and achieve strategic or other objectives relating to the acquisitions; risks related to any unforeseen liabilities of AWM; and other factors listed and described in more detail in the section captioned “Risk Factors” in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and our other documents on file with the U.S. Securities and Exchange Commission, each of which can be found on our website, www.arraytechinc.com. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward- looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Non-GAAP Financial Information This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted net income per common share, Adjusted general and administrative expense and Free cash flow. We define Adjusted gross profit as gross profit plus (i) amortization of developed technology and backlog and (ii) acquisition-related expenses. We define Adjusted gross margin as Adjusted gross profit as a percentage of revenue. We define Adjusted EBITDA as net income (loss) to common stockholders plus (i) other income, net, (ii) gain on extinguishment of debts, net, (iii) foreign currency gain, net, (iv) preferred dividends and accretion, (v) interest expense, (vi) income tax expense, (vii) depreciation expense, (viii) amortization of intangibles, (ix) amortization of developed technology and backlog, (x) equity-based compensation, (xi) change in fair value of contingent consideration, (xii) certain legal expenses, and (xiii) acquisition- related expenses. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue. We define Adjusted net income as net income (loss) to common stockholders plus (i) amortization of intangibles, (ii) amortization of developed technology and backlog, (iii) amortization of debt discount and issuance costs, (iv) gain on extinguishment of debts, net (v) Series A preferred stock accretion, (vi) equity-based compensation, (vii) change in fair value of contingent consideration, (viii) certain legal expenses, (ix) acquisition-related expenses, and (x) income tax expense adjustments. We define Adjusted general and administrative expense as general and administrative expense less (i) equity-based compensation, (ii) certain legal expenses, and (iii) acquisition-related expenses. We define Free cash flow as Net cash provided by operating activities less purchase of property, plant and equipment. A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included within this press release. We calculate net income (loss) per common share as net income (loss) to common stockholders divided by the basic and diluted weighted average number of shares outstanding for the applicable period and we define Adjusted net income per common share as Adjusted net income (as detailed above) divided by the basic and diluted weighted average number of shares outstanding for the applicable period. We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies. Among other limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per common share, Adjusted general and administrative expense and Free cash flow do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per common share, Adjusted general and administrative expense and Free cash flow differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per common share, Adjusted general and administrative expense and Free cash flow should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per common share, Adjusted general and administrative expense and Free cash flow on a supplemental basis. You should review the reconciliation of gross profit to Adjusted gross profit and Adjusted gross margin, net income (loss) to Adjusted EBITDA, Adjusted net income and Adjusted net income per common share, General and administrative expense to Adjusted general and administrative expense and Net cash used in operating activities to Free cash flow below and not rely on any single financial measure to evaluate our business.
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Array Technologies, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands, except per share and share amounts) June 30, 2026 December 31, 2025 ASSETS Current assets Cash and cash equivalents $ 307,302 $ 244,388 Restricted cash — 1,596 Accounts receivable, net of allowance of $5,895 and $6,245, respectively 323,439 271,578 Inventories, net 156,469 150,374 Prepaid expenses and other 104,576 201,108 Total current assets 891,786 869,044 Property, plant and equipment, net 68,180 58,225 Lease assets 92,380 97,088 Goodwill 135,173 135,173 Other intangible assets, net 212,472 238,579 Deferred income tax assets 24,843 23,965 Other assets 109,202 29,718 Total assets $ 1,534,036 $ 1,451,792 LIABILITIES, REDEEMABLE PERPETUAL PREFERRED STOCK AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 161,092 $ 143,994 Accrued expenses 101,501 54,289 Income tax payable 3,839 4,687 Current portion of deferred revenue 105,103 128,433 Current portion of contingent consideration 10,975 14,551 Current portion of warranty liability 12,390 10,844 Current portion of lease liabilities 7,411 7,662 Current portion of debt — 10,315 Other current liabilities 3,451 2,237 Total current liabilities 405,762 377,012 Deferred income tax liabilities 20,374 22,133 Deferred revenue, net of current portion 45,385 16,794 Contingent consideration, net of current portion 13,596 12,739 Warranty liability, net of current portion 5,863 5,466 Lease liabilities, net of current portion 87,726 89,552 Long-term debt, net of current portion 657,749 658,664 Other long-term liabilities 1,488 9,044 Total liabilities 1,237,943 1,191,404 Commitments and contingencies Series A Redeemable Perpetual Preferred Stock of $0.001 par value; 500,000 authorized; 400,0001and 490,829 shares issued as of June 30, 2026 and December 31, 2025, respectively; liquidation preference of $506.4 million and $493.1 million at each date, respectively 498,173 466,728 Stockholders’ equity Preferred stock of $0.001 par value - 4,500,000 shares authorized; none issued at respective dates — — Common stock of $0.001 par value - 1,000,000,000 shares authorized; 153,972,487 and 152,779,614 shares issued at respective dates 155 152 Additional paid-in capital 203,156 226,848 Accumulated deficit (396,516) (422,859) Accumulated other comprehensive loss (8,875) (10,481)
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Total stockholders’ equity (202,080) (206,340) Total liabilities, redeemable perpetual preferred stock and stockholders’ equity $ 1,534,036 $ 1,451,792 (1) Adjusted to reflect the increase in Liquidation Preference rather than the number of shares. Array Technologies, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 342,065 $ 362,243 $ 565,477 $ 664,606 Cost of revenue Cost of product and service revenue 236,846 261,479 391,640 483,775 Amortization of developed technology and backlog 5,615 3,640 11,229 7,279 Total cost of revenue 242,461 265,119 402,869 491,054 Gross profit 99,604 97,124 162,608 173,552 Operating expenses General and administrative 54,325 44,954 104,729 88,899 Change in fair value of contingent consideration 2,441 150 (145) — Depreciation and amortization 8,073 5,644 16,150 10,993 Total operating expenses 64,839 50,748 120,734 99,892 Income from operations 34,765 46,376 41,874 73,660 Interest income 2,402 3,800 4,789 7,119 Interest expense (5,786) (8,768) (11,349) (16,803) Foreign currency gain, net 529 1,343 690 2,032 Gain on extinguishment of debts, net — 14,207 — 14,207 Other expense, net (187) (79) (156) (56) Total other (expense) income, net (3,042) 10,503 (6,026) 6,499 Income before income tax expense 31,723 56,879 35,848 80,159 Income tax expense 7,377 13,617 9,505 20,151 Net income 24,346 43,262 26,343 60,008 Preferred dividends and accretion 15,908 14,788 31,445 29,231 Net income (loss) to common stockholders $ 8,438 $ 28,474 $ (5,102) $ 30,777 Income (loss) per common share Basic $ 0.05 $ 0.19 $ (0.03) $ 0.20 Diluted $ 0.05 $ 0.19 $ (0.03) $ 0.20 Weighted average number of common shares outstanding Basic 153,866 152,584 153,414 152,331 Diluted 155,685 153,068 153,414 152,958 Array Technologies, Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating activities
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Net income $ 24,346 $ 43,262 $ 26,343 $ 60,008 Adjustments to reconcile net income to cash provided by operating activities: Provision for bad debts (192) 239 3 1,910 Deferred tax benefit (1,041) (1,270) (2,637) (246) Depreciation and amortization 10,100 6,256 19,851 12,188 Amortization of developed technology and backlog 5,615 3,640 11,229 7,279 Amortization of debt discount and issuance costs 892 1,951 1,768 3,457 Gain on extinguishment of debts, net — (14,207) — (14,207) Equity-based compensation 4,579 3,898 8,520 6,696 Change in fair value of contingent consideration 2,441 150 (145) — Warranty provision 3,672 3,616 7,013 5,336 Inventory reserve 1,723 1,843 1,197 2,682 Other non-cash 529 10 690 10 Changes in operating assets and liabilities 68,615 (5,547) 18,026 (54,331) Net cash provided by operating activities 121,279 43,841 91,858 30,782 Investing activities Purchase of property, plant and equipment (7,633) (6,631) (15,144) (8,983) Net cash used in investing activities (7,633) (6,631) (15,144) (8,983) Financing activities Proceeds from issuance of other debt 14,036 49,202 38,254 57,064 Proceeds from issuance of convertible notes — 345,000 — 345,000 Premium paid on capped call — (35,087) — (35,087) Fees paid on issuance of convertible notes — (10,434) — (10,434) Repayments of other debt (23,591) (47,460) (51,003) (54,754) Repayments of term loan facility — (232,800) — (233,875) Repayments of convertible notes — (78,363) — (78,363) Contingent consideration payments — — (2,574) (1,204) Other financing 38 (1,109) (1,806) (1,123) Net cash used in financing activities (9,517) (11,051) (17,129) (12,776) Effect of exchange rate changes on cash and cash equivalent balances 1,180 3,118 1,733 5,606 Net change in cash and cash equivalents and restricted cash 105,309 29,277 61,318 14,629 Cash and cash equivalents, and restricted cash beginning of period 201,993 349,493 245,984 364,141 Cash and cash equivalents and restricted cash, end of period $ 307,302 $ 378,770 $ 307,302 $ 378,770 Array Technologies, Inc. Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, Adjusted General and Administrative Expense and Free Cash Flow Reconciliation (unaudited) (in thousands, except per share amounts) The following table reconciles Gross profit to Adjusted gross profit: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 342,065 $ 362,243 $ 565,477 $ 664,606 Cost of revenue 242,461 265,119 402,869 491,054 Gross profit 99,604 97,124 162,608 173,552 Gross margin 29.1% 26.8% 28.8% 26.1% Amortization of developed technology and backlog 5,615 3,640 11,229 7,279 Acquisition-related expenses(a) 40 — 80 — Adjusted gross profit $ 105,259 $ 100,764 $ 173,917 $ 180,831 Adjusted gross margin 30.8% 27.8% 30.8% 27.2% (a) Represents acquisition-related fair value adjustments to Property, plant, and equipment. The following table reconciles Net income to Adjusted EBITDA: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025
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Net income $ 24,346 $ 43,262 $ 26,343 $ 60,008 Preferred dividends and accretion 15,908 14,788 31,445 29,231 Net income (loss) to common stockholders 8,438 28,474 (5,102) 30,777 Other income, net (2,215) (3,721) (4,633) (7,063) Gain on extinguishment of debts, net — (14,207) — (14,207) Foreign currency gain, net (529) (1,343) (690) (2,032) Preferred dividends and accretion 15,908 14,788 31,445 29,231 Interest expense 5,786 8,768 11,349 16,803 Income tax expense 7,377 13,617 9,505 20,151 Depreciation expense 2,728 1,178 5,092 2,221 Amortization of intangibles 7,371 5,078 14,759 9,967 Amortization of developed technology and backlog 5,615 3,640 11,229 7,279 Equity-based compensation 4,579 3,898 8,520 6,696 Change in fair value of contingent consideration 2,441 150 (145) — Certain legal expenses(a) — 149 — 1,232 Acquisition-related expenses(b) 5,761 3,087 10,758 3,087 Adjusted EBITDA $ 63,260 $ 63,556 $ 92,087 $ 104,142 (a) Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. On March 24, 2026, the Second Circuit affirmed the dismissal of such action with prejudice, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business. (b) Represents acquisition-related expenses. Array Technologies, Inc. Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, Adjusted General and Administrative Expense and Free Cash Flow Reconciliation (unaudited) (in thousands, except per share amounts) The following table reconciles Net income to Adjusted net income: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 24,346 $ 43,262 $ 26,343 $ 60,008 Preferred dividends and accretion 15,908 14,788 31,445 29,231 Net income (loss) to common stockholders 8,438 28,474 (5,102) 30,777 Amortization of intangibles 7,371 5,078 14,759 9,967 Amortization of developed technology and backlog 5,615 3,640 11,229 7,279 Amortization of debt discount and issuance costs 892 2,064 1,768 3,457 Gain on extinguishment of debts, net — (14,207) — (14,207) Series A Preferred stock accretion 8,032 7,393 15,900 14,634 Equity-based compensation 4,579 3,898 8,520 6,696 Change in fair value of contingent consideration 2,441 150 (145) — Certain legal expenses(a) — 149 — 1,232 Acquisition-related expenses(b) 5,825 3,087 10,886 3,087 Income tax expense of adjustments(c) (6,145) (975) (11,935) (4,449) Adjusted net income $ 37,048 $ 38,751 $ 45,880 $ 58,473 Income (loss) per common share Basic $ 0.05 $ 0.19 $ (0.03) $ 0.20 Diluted $ 0.05 $ 0.19 $ (0.03) $ 0.20 Weighted average number of common shares outstanding Basic 153,866 152,584 153,414 152,331 Diluted 155,685 153,068 153,414 152,958 Adjusted net income per common share Basic $ 0.24 $ 0.25 $ 0.30 $ 0.38
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Diluted $ 0.24 $ 0.25 $ 0.29 $ 0.38 Weighted average number of common shares outstanding Basic 153,866 152,584 153,414 152,331 Diluted 155,685 153,068 155,673 152,958 (a) Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. On March 24, 2026, the Second Circuit affirmed the dismissal of such action with prejudice, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business. (b) Represents acquisition-related expenses and fair value adjustments to Property, plant and equipment. (c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax. The following table reconciles General and administrative expense to Adjusted general and administrative expense: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 General and administrative expense $ 54,325 $ 44,954 $ 104,729 $ 88,899 Equity-based compensation (4,579) (3,898) (8,520) (6,696) Certain legal expenses(a) — (149) — (1,232) Acquisition-related expenses(b) (5,761) (3,087) (10,758) (3,087) Adjusted general and administrative expense $ 43,985 $ 37,820 $ 85,451 $ 77,884 (a) Represents certain legal fees and other related costs associated with (i) actions filed against the company and certain officers and directors alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. On March 24, 2026, the Second Circuit affirmed the dismissal of such action with prejudice, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business. (b) Represents acquisition-related expenses. The following table reconciles Net cash used in operating activities to Free cash flow: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net cash provided by (used in) operating activities $ 121,279 $ 43,841 $ 91,858 $ 30,782 Purchase of property, plant and equipment (7,633) (6,631) (15,144) (8,983) Free cash flow $ 113,646 $ 37,210 $ 76,714 $ 21,799