Uniti Group Inc. Reports Second Quarter 2025 Results
Completes Previously Announced Merger with Windstream
Provides Consolidated 2025 Outlook for Combined Company
Net Loss of $10.7 Million for the Second Quarter
Net Loss of $0.04 Per Diluted Common Share for the Second Quarter
AFFO of $0.36 Per Diluted Common Share for the Second Quarter
LITTLE ROCK, Ark., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Uniti Group Inc. ("Uniti" or the "Company") (NASDAQ:UNIT) today announced its results for the second quarter 2025. The second quarter results and highlights presented in this release are for legacy Uniti Group Inc. (now known as Uniti Group LLC and a subsidiary of the Company) prior to the previously announced business combination with Windstream, which closed August 1, 2025, as discussed in greater detail below.
"This is an exciting time for Uniti as we enter a new chapter in the Company's history with the completion of our merger with Windstream. The combination creates a premier insurgent fiber provider with approximately 240,000 route miles that is uniquely positioned to benefit from many favorable tailwinds driving the communications infrastructure industry, including convergence and Generative AI," commented Kenny Gunderman, President and Chief Executive Officer of Uniti.
Mr. Gunderman continued, "We saw another quarter of solid results at Uniti and continue to successfully execute on our priorities we set out earlier this year. Our core recurring strategic fiber revenue grew approximately 5% in the second quarter of 2025 when compared to the second quarter of 2024, consolidated bookings were consistent with levels in recent quarters, and the capital intensity of our fiber business continues to become more efficient. We also successfully issued unsecured debt recently for the first time within the past four years and redeemed a portion of our most expensive current outstanding debt while at the same time substantially reducing our secured leverage. We are well positioned to now accelerate our already impressive fiber to home build engine and ultimately grow our mission critical fiber business."
QUARTERLY RESULTS
Consolidated revenues for the second quarter of 2025 were $300.7 million. Net loss and Adjusted EBITDA were $10.7 million and $242.6 million, respectively, for the same period, achieving Adjusted EBITDA margins of approximately 81%. Net loss attributable to common shares was $10.7 million for the period. AFFO attributable to common shareholders was $96.5 million, or $0.36 per diluted common share.
Uniti Fiber contributed $74.3 million of revenues and $28.8 million of Adjusted EBITDA for the second quarter of 2025, achieving Adjusted EBITDA margins of approximately 39%. Uniti Fiber's net success-based capital expenditures during the quarter were $20.6 million.
Uniti Leasing contributed revenues of $226.5 million and Adjusted EBITDA of $220.1 million for the second quarter. Uniti Leasing's net success-based capital expenditures during the quarter were $1.8 million.
FINANCING TRANSACTIONS
On June 24, 2025, Uniti closed its offering of $600 million aggregate principal amount of 8.625% Senior Unsecured Notes due 2032. Uniti used the net proceeds from the offering to fund the partial redemption of $500 million aggregate principal amount of its outstanding 10.50% Senior Secured Notes due 2028 and for general corporate purposes.
LIQUIDITY
At quarter-end, the Company had approximately $740.7 million of unrestricted cash and cash equivalents, and undrawn borrowing availability under its revolving credit agreement. The Company's leverage ratio at quarter-end was 5.75x based on net debt to second quarter 2025 annualized Adjusted EBITDA, excluding the debt and the net contributions from our ABS facilities.
MERGER WITH WINDSTREAM
On August 1, 2025, Uniti successfully completed the previously announced merger (the "Merger") of Uniti Group LLC (formerly known as Uniti Group Inc.) ("Legacy Uniti") with New Windstream Merger Sub, LLC, and the merger of New Windstream, LLC (together with its subsidiaries, "Windstream") with and into the Company (formerly known as Windstream Parent, Inc.). As a result of the mergers, both Legacy Uniti and Windstream have become indirect, wholly owned subsidiaries of the Company.
As previously announced, as a result of this Merger, Legacy Uniti shareholders received 0.6029 shares of Uniti common stock per share of Legacy Uniti common stock held at the closing of the Merger, which resulted in Legacy Uniti shareholders collectively holding approximately 62% of the outstanding common stock of the Company. Windstream shareholders received approximately $371 million of cash, the Company's preferred stock with $575 million in aggregate initial liquidation preference and approximately 38% of the outstanding common stock of the Company. Windstream shareholders additionally received non-voting warrants to acquire up to 6.9% of common stock of the Company. The cash portion of the consideration was financed using available funds under Legacy Uniti's revolving credit facility and cash on hand.
In conjunction with the closing of the Merger, Uniti recently completed the necessary steps to combine the Legacy Uniti senior indebtedness and legacy Windstream indebtedness under a single organizational silo that includes both Uniti and Windstream and their respective subsidiaries, thereby effectively eliminating any debt covenants limiting the ability of Legacy Uniti and Windstream to operate together efficiently.
FULL YEAR CONSOLIDATED 2025 OUTLOOK
The Company's 2025 outlook reflects the consolidation of Windstream's expected results for the five-month period following the closing of the Merger on August 1, 2025. We expect this transaction to contribute additional revenues and Adjusted EBITDA of approximately $1.0 billion and $160 million, respectively, during such period.
The Company is also updating its 2025 outlook primarily for business unit level revisions, the impact from the issuance of the 8.625% senior unsecured notes due 2032 and partial redemption of the 10.50% senior secured notes due 2028, and transaction related and other costs incurred to date. Our outlook excludes any impact from other future acquisitions, capital market transactions, and future transaction-related and other costs not mentioned herein.
The Company's 2025 outlook is based on management's current expectations and beliefs but is subject to change as we continue the integration of Windstream and Legacy Uniti.
The Company's consolidated outlook for 2025 is as follows (in millions):
Full Year 2025
Revenue
$
2,215
to
$
2,265
Net loss attributable to common shareholders
(125
)
to
(75
)
Adjusted EBITDA (1)
1,110
to
1,160
Interest expense, net
665
to
665
(1) See "Non-GAAP Financial Measures" below.
CONFERENCE CALL
Uniti will hold a conference call today to discuss this earnings release at 8:30 AM Eastern Time (7:30 AM Central Time). The conference call will be webcast live on Uniti's Investor Relations website at investor.uniti.com. Those parties interested in participating via telephone may register on the Company's Investor Relations website or by clicking here. A replay of the call will also be made available on the Investor Relations website.
ABOUT UNITI
Uniti (NASDAQ:UNIT) is a premier insurgent fiber provider dedicated to enabling mission-critical connectivity across the United States. We build, operate, and deliver fast and reliable communications services, empowering more than a million consumers and businesses in the digital economy. Our broad portfolio of services is offered through a suite of brands: Uniti Wholesale, Kinetic, Uniti Fiber, and Uniti Solutions. Visit us online at www.uniti.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future and Uniti management's current expectations, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, but are not limited to, statements regarding Uniti's fiber build strategy, the businesses growth potential, efficiencies from the debt silos combination, and Uniti's 2025 outlook. The words "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "projects," "will," "would," "predicts" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Uniti may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the forward-looking statements. Future results may differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that Uniti makes. These forward-looking statements involve risks and uncertainties, known and unknown, that could cause events and results to differ materially from those in the forward-looking statements, including, without limitation: unanticipated difficulties or expenditures relating to the merger of Uniti and Windstream; competition and overbuilding in consumer service areas and general competition in business markets; risks related to Uniti's indebtedness, which could reduce funds available for business purposes and operational flexibility; rapid changes in technology, which could affect its ability to compete; risks relating to information technology system failures, network disruptions, and failure to protect, loss of, or unauthorized access to, or release of, data; risks related to various forms of regulation from the Federal Communications Commission, state regulatory commissions and other government entities and effects of unfavorable legal proceedings, government investigations, and complex and changing laws; risks inherent in the communications industry and associated with general economic conditions; and additional risks set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company and its predecessors' most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the U.S. Securities and Exchange Commission as well as the Company's predecessor's registration statement on Form S-4 dated February 12, 2025. The discussion of such risks is not an indication that any such risks have occurred at the time of this filing. Uniti does not assume any obligation to update any forward-looking statements.
NON-GAAP PRESENTATION
This release and today's conference call contain certain supplemental measures of performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP"). Such measures should not be considered as alternatives to GAAP. Further information with respect to and reconciliations of such measures to the nearest GAAP measure can be found herein.
Uniti Group Inc.Consolidated Balance Sheets(In thousands, except per share data)
June 30, 2025
December 31, 2024
Assets:
Property, plant and equipment, net
$
4,366,790
$
4,209,747
Cash and cash equivalents
240,727
155,593
Restricted cash and cash equivalents
57,866
28,254
Accounts receivable, net
40,677
51,418
Goodwill
157,380
157,380
Intangible assets, net
260,563
275,414
Straight-line revenue receivable
114,609
108,870
Operating lease right-of-use assets, net
127,938
126,791
Other assets
40,396
40,633
Deferred income tax assets, net
136,585
128,045
Total Assets
$
5,543,531
$
5,282,145
Liabilities and Shareholders' Deficit:
Liabilities:
Accounts payable, accrued expenses and other liabilities
$
88,302
$
89,688
Settlement payable
24,215
71,785
Intangible liabilities, net
140,356
145,703
Accrued interest payable
133,226
143,901
Deferred revenue
1,430,722
1,400,952
Dividends payable
2
665
Operating lease liabilities
82,601
80,504
Finance lease obligations
23,344
17,190
Notes and other debt, net
6,064,751
5,783,597
Total liabilities
7,987,519
7,733,985
Commitments and contingencies
Shareholders' Deficit:
Preferred stock, $0.0001 par value, 50,000 shares authorized, no shares issued andoutstanding
—
—
Common stock, $0.0001 par value, 500,000 shares authorized, issued and outstanding:238,568 shares at June 30, 2025 and 237,513 shares at December 31, 2024
24
24
Additional paid-in capital
1,241,569
1,236,045
Accumulated other comprehensive loss
(167
)
(634
)
Distributions in excess of accumulated earnings
(3,685,664
)
(3,687,808
)
Total Uniti shareholders' deficit
(2,444,238
)
(2,452,373
)
Noncontrolling interests:
Operating partnership units
—
283
Cumulative non-voting convertible preferred stock, $0.01 par value, 6 shares authorized,3 issued and outstanding
250
250
Total shareholders' deficit
(2,443,988
)
(2,451,840
)
Total Liabilities and Shareholders' Deficit
$
5,543,531
$
5,282,145
Uniti Group Inc.Consolidated Statements of Income(In thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Revenues:
Revenue from rentals
Uniti Leasing
$
225,014
$
216,640
$
445,927
$
432,633
Uniti Fiber
13,041
12,663
29,151
24,826
Total revenue from rentals
238,055
229,303
475,078
457,459
Service revenues
Uniti Leasing
1,464
1,646
2,919
3,274
Uniti Fiber
61,213
63,998
116,644
120,632
Total service revenues
62,677
65,644
119,563
123,906
Total revenues
300,732
294,947
594,641
581,365
Costs and Expenses:
Interest expense, net
160,784
127,475
298,771
250,686
Depreciation and amortization
79,663
78,052
159,346
155,537
General and administrative expense
27,838
25,716
56,147
53,849
Operating expense (exclusive of depreciation, accretionand amortization)
34,765
37,036
67,146
72,234
Transaction related and other costs
13,462
10,977
21,309
16,664
Gain on sale of real estate
—
—
—
(18,999
)
Other expense (income), net
1,127
(19
)
1,127
(301
)
Total costs and expenses
317,639
279,237
603,846
529,670
