Uniti Group Reports Q2 Revenue of $300.7mln, EPS Down to 4 Cents Amid Strategic Developments and Windstream Merger

Uniti Group Inc. reported Q2 revenue of $300.7 million, up from last year's $294.9 million, but earnings per share decreased to a loss of 4 cents from a profit of 7 cents. The company is in a transformative phase after its merger with Windstream, establishing a leading fiber network provider. Uniti achieved a 5% increase in core recurring strategic fiber revenue and improved capital efficiency in its fiber operations.

Uniti Group Inc. (UNIT) reported its Q2 2025 financial results, showcasing a 2% increase in revenue to $300.7 million compared to the same period last year, when revenue stood at $294.9 million. However, earnings per share (EPS) decreased to a loss of 4 cents from a profit of 7 cents. The company is undergoing a transformative phase following its merger with Windstream, positioning itself as a leading fiber network provider.

The company achieved a 5% increase in core recurring strategic fiber revenue, reflecting its ongoing investment in fiber infrastructure. Kenneth A. Gunderman, President and CEO, emphasized the importance of fiber as the "mission-critical connective tissue for all current and future broadband delivery" during the earnings call. He also stated that the company aims to pass 3.5 million homes with fiber within its Kinetic footprint by the end of 2029, with 75% of total revenue expected to be fiber-based by that year [1].

Uniti Group's capital efficiency in its fiber operations has also improved. Paul Bullington, CFO, reported that the company's consolidated adjusted EBITDA for Q2 2025 was $243 million, up from $234 million in the same period last year. Bullington also noted that the company's hyperscaler funnel represents approximately $1.5 billion of total contract value, with a very high win rate when pursuing large hyperscaler deals [1].

Despite the transformative phase, the company faced some headwinds. Legacy services are expected to weigh on consolidated revenue and EBITDA, but these services generate predictable free cash flow and are becoming less material as the fiber business grows. Rising cost per passing due to deeper rural builds and increased use of external crews are also challenges, but management remains confident in managing these within industry benchmarks [1].

Uniti Group's Q2 2025 call underscored the company's strategic focus on fiber expansion and revenue mix shift, supported by regulatory tailwinds and a streamlined capital structure. The company is well-positioned to capitalize on the growing demand for high-speed broadband services, particularly in Tier 2 and 3 markets.

References:
[1] https://seekingalpha.com/news/4479044-uniti-group-outlines-plan-to-reach-3_5m-fiber-homes-by-2029-with-75-percent-fiber-based