Uniti Group's 2025 Q1: Dissecting Contradictions in AI Demand, Merger Strategy, and Fiber Build Dynamics

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Revenue and EBITDA Growth:
- Uniti Group Inc. reported consolidated revenues of $294 million for Q1 2025, with adjusted EBITDA of $238 million, while AFFO attributed to common shareholders was $92 million.
- Growth was driven by 4% increase in core recurring strategic revenue and a 50% year-over-year decline in the capital intensity of its fiber business.

Fiber Expansion and Lease-Up:
- Uniti is accelerating its fiber expansion, expecting to reach 2 million homes passed by the end of 2025, two years ahead of schedule.
- The company is focused on building out its Kinetic footprint, with lease-up levels reaching a record 72%, driven by strong demand from hyperscalers and wireless carriers.

Macroeconomic and Regulatory Environment:
- Uniti anticipates little to no impact from proposed tariff changes on its business, with any effects representing less than 1% of combined capital expenditure.
- The company is benefiting from regulatory trends, such as increased leniency towards retiring aging copper networks and potential government subsidies for fiber deployment.

Merger Progress and Executive Changes:
- Uniti has received shareholder approval for its merger with Windstream, with 97% of voting shareholders approving the transaction, and is on track to close in the second half of 2025.
- The company has appointed new leaders, including John Harrobin as President of Kinetic and Harold Zeitz as a new board member, to drive success in its fiber expansion plans.