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Uniti Group Inc (UNIT)
NASDAQ:UNIT
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Uniti Group (UNIT) AI Stock Analysis

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UNIT

Uniti Group

(NASDAQ:UNIT)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$5.50
▼(-4.51% Downside)
Uniti Group's overall score reflects strong revenue growth and strategic positioning in the fiber market, as highlighted in the earnings call. However, financial risks due to high leverage and declining free cash flow, along with bearish technical indicators, weigh down the score. The valuation suggests potential overvaluation, further impacting the overall assessment.
Positive Factors
Strategic Fiber Expansion
The strategic expansion of fiber infrastructure positions Uniti to capture significant market share in underserved areas, enhancing long-term revenue growth and competitive advantage.
Hyperscaler Market Position
Securing long-term contracts with major hyperscalers strengthens Uniti's market position, ensuring stable revenue streams and reinforcing its infrastructure capabilities.
West Coast Expansion
The expansion into the West Coast enhances Uniti's network reach and cross-border connectivity, supporting growth in international markets and increasing service offerings.
Negative Factors
High Leverage
High leverage poses financial risks, limiting financial flexibility and increasing vulnerability to economic downturns, which can impact long-term stability and growth.
Declining Free Cash Flow
Declining free cash flow indicates challenges in cash generation, potentially affecting the company's ability to fund operations and growth initiatives sustainably.
Legacy Services Decline
The decline in legacy services impacts overall revenue growth, necessitating a strategic shift towards more profitable and sustainable business segments.

Uniti Group (UNIT) vs. SPDR S&P 500 ETF (SPY)

Uniti Group Business Overview & Revenue Model

Company DescriptionUniti Group Inc. (UNIT) is a telecommunications infrastructure provider based in the United States, primarily focused on delivering high-speed connectivity solutions. The company operates in the fiber optics sector, offering a range of services including the leasing of fiber networks, providing dark fiber and lit fiber services to various businesses, including wireless carriers, data center operators, and enterprise customers. Uniti Group is committed to expanding its network footprint and enhancing broadband access across underserved areas.
How the Company Makes MoneyUniti Group generates revenue primarily through long-term leases of its fiber optic infrastructure to telecommunications carriers and other service providers. The company's key revenue streams include recurring revenue from fiber leasing agreements, which typically span several years, and services related to the maintenance and management of these networks. Additionally, Uniti may engage in dark fiber sales, where customers lease unused fiber capacity, and lit fiber services, where the company provides fully operational connectivity solutions. Strategic partnerships with major telecommunications firms and investments in expanding fiber networks in growing markets contribute significantly to Uniti's earnings, enhancing its competitive position in the telecommunications infrastructure sector.

Uniti Group Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
Uniti's earnings call highlights a strong strategic position following its merger with Windstream, with significant growth in fiber-based revenue and promising hyperscaler deals. However, challenges remain with legacy services impacting revenue and increased capital requirements for fiber expansion.
Q2-2025 Updates
Positive Updates
Merger with Windstream Completed
Uniti successfully closed its merger with Windstream, creating a strategic fiber-to-the-home platform with substantial first-mover advantage in Tier 2 and 3 markets.
Fiber Expansion and Growth
Uniti plans to accelerate its fiber investment to pass 3.5 million homes with fiber by 2029, with fiber-based revenue expected to grow from 40% to 75%. Fiber revenue increased by 10% year-over-year in Q2 2025.
Strong Wireless Bookings
Wireless bookings increased by 30% in the first half of 2025 compared to the first half of 2024.
Significant Hyperscaler Deals
Uniti signed a 20-year IRU with a major hyperscaler, valuing approximately $100 million, with a hyperscaler sales funnel representing about $1.5 billion in total contract value.
Improved Capital Structure
Uniti's cost of capital has significantly improved, with debt yields decreasing from over 12% to around 7%.
Negative Updates
Legacy Services Impact on Revenue
Legacy services are weighing on consolidated revenue and EBITDA, although they continue to generate predictable free cash flow.
Declines in Uniti Solutions
Revenue and EBITDA in Uniti Solutions, which include declining legacy TDM services, continue to decline and weigh on overall top-line growth.
Capital Intensity in Fiber Build
Increased costs anticipated in fiber build-out, with strategic cost per passing expected to rise to $850-$950 from the historical $650.
Company Guidance
During the second quarter 2025 earnings call, Uniti provided guidance emphasizing its focus on expanding its fiber infrastructure. The company aims to pass 3.5 million homes with fiber within the Kinetic footprint by the end of 2029, increasing the fiber-based revenue to approximately 75% of total revenue. Currently, Uniti passes 1.7 million homes and expects to reach 2 million by the end of 2025. The fiber infrastructure segment experienced a 7% year-over-year revenue growth, with Uniti reporting consolidated revenues of $301 million and adjusted EBITDA of $243 million. Additionally, the pro forma new Uniti consolidated revenue for the quarter was down 6% year-over-year, primarily due to declines in legacy services. The company anticipates consolidated revenue and EBITDA of $2.2 billion and $1.1 billion, respectively, for the full year 2025. Uniti also highlighted its strong position in the hyperscaler market, with a funnel representing about $1.5 billion in total contract value. The company expects continued growth in fiber services at Kinetic, with revenue projected to increase by 25% in 2025.

Uniti Group Financial Statement Overview

Summary
Uniti Group shows strong revenue growth and operational efficiency, but faces challenges with profitability and high leverage. The negative equity and declining free cash flow growth pose financial risks, requiring careful management to ensure long-term stability.
Income Statement
65
Positive
Uniti Group's income statement shows a strong gross profit margin of 80.73% TTM, indicating efficient cost management. However, the net profit margin is low at 2.96% TTM, reflecting challenges in converting revenue into profit. Revenue growth is robust at 49.3% TTM, suggesting strong top-line expansion. EBIT and EBITDA margins are healthy, at 46.96% and 73.45% TTM, respectively, showing good operational efficiency.
Balance Sheet
40
Negative
The balance sheet reveals a concerning debt-to-equity ratio of -2.52 TTM, indicating high leverage and potential financial risk. The return on equity is negative at -1.42% TTM, reflecting challenges in generating returns for shareholders. The equity ratio is negative due to negative stockholders' equity, highlighting financial instability.
Cash Flow
50
Neutral
Cash flow analysis shows a negative free cash flow growth rate of -247.62% TTM, indicating declining cash generation. The operating cash flow to net income ratio is 0.22 TTM, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.10 TTM, reflecting limited cash available after capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.18B1.17B1.15B1.13B1.10B1.07B
Gross Profit1.00B987.82M992.42M975.38M946.11M843.83M
EBITDA894.22M882.80M889.68M874.38M844.93M738.85M
Net Income35.29M93.41M-81.71M-8.28M123.66M-706.30M
Balance Sheet
Total Assets5.54B5.28B5.03B4.85B4.81B4.73B
Cash, Cash Equivalents and Short-Term Investments240.73M183.85M62.26M43.80M58.90M77.53M
Total Debt6.17B5.88B5.63B5.27B5.11B4.83B
Total Liabilities7.99B7.73B7.51B7.12B6.92B6.80B
Stockholders Equity-2.44B-2.45B-2.49B-2.27B-2.13B-2.14B
Cash Flow
Free Cash Flow37.87M11.86M-63.87M32.55M113.30M-159.85M
Operating Cash Flow376.15M366.69M353.13M460.12M499.16M157.23M
Investing Cash Flow-335.50M-272.20M-411.31M-392.02M-321.22M1.39M
Financing Cash Flow126.75M27.08M76.64M-78.58M-196.57M-223.91M

Uniti Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.76
Price Trends
50DMA
6.19
Negative
100DMA
6.82
Negative
200DMA
7.55
Negative
Market Momentum
MACD
-0.10
Negative
RSI
45.15
Neutral
STOCH
45.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNIT, the sentiment is Negative. The current price of 5.76 is below the 20-day moving average (MA) of 5.80, below the 50-day MA of 6.19, and below the 200-day MA of 7.55, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 45.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UNIT.

Uniti Group Risk Analysis

Uniti Group disclosed 33 risk factors in its most recent earnings report. Uniti Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Uniti Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$83.07B77.467.72%2.30%5.74%-6.58%
$2.17B12.193.79%4.94%3.15%1.96%
$83.79B28.5577.38%3.76%-5.33%163.89%
$20.56B23.532.25%1.82%71.39%
$16.59B50.472.85%3.61%-6.57%-62.32%
$1.37B24.231.95%353.63%
$39.29B-11.85-276.36%5.82%-26.56%-369.24%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UNIT
Uniti Group
5.76
-3.56
-38.20%
AMT
American Tower
178.98
-26.11
-12.73%
CCI
Crown Castle
90.22
-12.40
-12.08%
EQIX
Equinix
846.01
-30.97
-3.53%
SBAC
SBA Communications
191.48
-32.89
-14.66%
WY
Weyerhaeuser
23.00
-7.79
-25.30%

Uniti Group Corporate Events

Private Placements and Financing
Uniti Group Announces $250 Million Note Offering
Positive
Oct 10, 2025

On October 9, 2025, Uniti Group Inc. announced the pricing of a $250 million offering of secured fiber network revenue term notes through its subsidiaries, Uniti Fiber ABS Issuer LLC and Uniti Fiber TRS Issuer LLC. The notes, which are expected to close on October 24, 2025, will be secured by fiber network assets in several southern U.S. states. The proceeds from this offering will be used for general corporate purposes, including potential capital expenditures and debt repayment, enhancing Uniti’s financial flexibility and positioning in the communications industry.

The most recent analyst rating on (UNIT) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Uniti Group Completes $1.4 Billion Notes Offering
Positive
Oct 6, 2025

On October 6, 2025, Uniti Group‘s subsidiary, Windstream Services, LLC, completed a private offering of $1.4 billion in Senior Secured Notes due 2033, using the proceeds to redeem existing notes and manage related expenses. Additionally, Uniti announced a $250 million fiber network revenue term notes offering through its subsidiaries, Uniti Fiber ABS Issuer LLC and Uniti Fiber TRS Issuer LLC, secured by fiber network assets in several states. These financial maneuvers are expected to enhance Uniti’s capital structure and support its strategic initiatives, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (UNIT) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Private Placements and Financing
Uniti Group Upsizes Senior Secured Notes Offering
Neutral
Sep 25, 2025

On September 25, 2025, Uniti Group Inc. announced that its subsidiary, Windstream Services, LLC, has priced an upsized offering of $1.4 billion in senior secured notes due 2033, increased from the previously announced $900 million. The proceeds from this offering, along with a $1 billion term loan, will be used to redeem existing 10.50% senior secured notes due 2028 and cover related expenses. The redemption is contingent upon receiving at least $2.4 billion from the notes offering and term loan, with any remaining funds allocated for general corporate purposes.

The most recent analyst rating on (UNIT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Uniti Group Announces Major Refinancing Initiative
Positive
Sep 25, 2025

On September 24, 2025, Uniti Group Inc. announced a refinancing initiative through its subsidiary, Windstream Services, LLC, which involves an offering of $900 million in senior secured notes due 2033 and pursuing up to $1.5 billion in term loan borrowings. The proceeds will be used to redeem existing 10.50% senior secured notes due 2028 and cover related expenses, with any remaining funds allocated for general corporate purposes. This move aims to extend the maturity dates of revolving credit facilities and improve the company’s financial flexibility.

The most recent analyst rating on (UNIT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Uniti Group Releases Financial Results for 2025
Neutral
Sep 4, 2025

Uniti Group Inc. has released supplemental materials on its Investor Relations website detailing its financial results and business operations for the quarterly periods in 2024 and 2025. The information highlights various revenue streams, including fiber subscribers, DSL subscribers, consumer services, business services, and wholesale, along with costs and expenses, providing stakeholders with a comprehensive view of the company’s financial health and strategic positioning.

The most recent analyst rating on (UNIT) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Uniti Group Reports Q2 2025 Earnings Amid Windstream Merger
Aug 6, 2025

Uniti Group Inc. is a real estate investment trust (REIT) focused on acquiring, constructing, and leasing mission-critical infrastructure in the communications industry, primarily dealing with fiber optic, copper, and coaxial broadband networks and data centers.

Uniti Group’s Earnings Call Highlights Fiber Growth
Aug 6, 2025

Uniti Group’s recent earnings call exuded a positive sentiment, underscored by notable growth in fiber revenue and strategic progress following its merger with Windstream. Despite some challenges with legacy services and Uniti Solutions, the company’s robust performance and strategic positioning in the fiber market, coupled with an improved capital structure, paint an optimistic picture for the future.

Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Uniti Group Completes Merger with Windstream
Neutral
Aug 1, 2025

On August 1, 2025, Uniti Group Inc. completed its merger with Windstream, resulting in both companies becoming indirect, wholly owned subsidiaries of Uniti. Following the merger, Uniti’s common stock will continue trading under the ticker ‘UNIT’ on the Nasdaq Global Select Market. The merger led to significant changes in the company’s leadership, with Kenneth A. Gunderman and Daniel L. Heard appointed as directors of Uniti, now a subsidiary of New Uniti. Additionally, Uniti plans to consolidate its and Windstream’s debt silos shortly after the merger, potentially impacting its financial structure and market positioning.

The most recent analyst rating on (UNIT) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Uniti Group Nears Merger Completion with Windstream
Positive
Jul 31, 2025

Uniti Group has provided financial information for Windstream Holdings II, LLC, covering the quarter ending June 30, 2025. The company has made significant strides in its fiber expansion, adding 52,000 new premises and increasing fiber penetration to 28%. The company also reported a 15% year-over-year growth in fiber subscribers and a 27% increase in fiber subscriber revenue. Additionally, Uniti Group is progressing towards a planned merger with Windstream, expected to close around August 1, 2025, which could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (UNIT) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Business Operations and StrategyM&A Transactions
Uniti Group Completes Conversion to Delaware Corporation
Positive
Jul 29, 2025

On July 29, 2025, Uniti Group Inc. completed its conversion from a Maryland corporation to a Delaware corporation, a strategic move approved by stockholders to align with the corporation laws of Delaware. This conversion, part of a broader strategy, retains all rights and obligations of the original entity, ensuring continuity in stock trading and employee benefit plans. The conversion is a precursor to Uniti’s anticipated merger with a subsidiary of New Windstream, LLC, set to finalize around August 1, 2025, following regulatory approvals. This merger is expected to result in Uniti stockholders receiving shares in the combined company, marking a significant step in Uniti’s strategic growth and market positioning.

The most recent analyst rating on (UNIT) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Uniti Group stock, see the UNIT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025