Uniti Group's Q2 2025 Earnings: Contradictions in M&A Strategy, Fiber Growth, and AI Demand

M&A activity and strategic focus, fiber deployment strategy and market focus, AI and hyperscaler demand, fiber infrastructure growth projections, and funnel and deal constructs are the key contradictions discussed in Uniti Group's latest 2025Q2 earnings call.



Fiber Expansion and Growth:
- Uniti Group expects to pass 3.5 million homes with fiber within the Kinetic footprint by the end of 2029.
- The percentage of total revenue on fiber is already around 40% and is expected to increase to roughly 75%.
- The growth in fiber is driven by strong demand and the strategic focus on fiber-to-the-home platforms.

Fiber Infrastructure and Hyperscaler Deals:
- Uniti and Windstream combined recorded consolidated bookings of $1.2 million of MRR in the second quarter.
- The hyperscaler funnel represents about $1.5 billion of total contract value, with hyperscalers increasing from less than 15% to 40% of the total funnel.
- This growth is attributed to the company's strategic network capabilities and the increasing demand from hyperscalers for fiber services.

Kinetic Fiber and Consumer Growth:
- Kinetic added 19,000 fiber subscribers during the second quarter, ending with 483,000 total fiber subscribers, a 15% increase from the previous year.
- Total fiber revenue for Uniti and Windstream increased by 10% year-over-year during the second quarter.
- This growth is driven by strong adoption of fiber-to-the-home products and successful initiatives targeting both newer and seasoned customer cohorts.

Financial Outlook and Consolidation:
- Uniti expects consolidated revenue for 2025 to be $2.2 billion and adjusted EBITDA to be $1.1 billion at the midpoint of its outlook.
- The company completed the unification of debt structures, reducing combined near-term maturities and improving the cost of capital.
- These efforts are aimed at optimizing the capital structure and maintaining financial stability, reflecting strategic planning post-merger.