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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 57 (OpenAI - 4o)
Rating:57Neutral
Price Target:
$6.50
▲(1.56% Upside)
Uniti Group's overall stock score is driven by strong earnings call insights and strategic initiatives, despite financial challenges and bearish technical indicators. The company's focus on fiber revenue growth and operational improvements is promising, but high leverage and declining free cash flow remain concerns.
Positive Factors
Strong Fiber Revenue Growth
The robust growth in fiber revenue underscores Uniti's successful expansion in the fiber optics market, enhancing its competitive edge and supporting long-term revenue stability.
Strategic Partnerships
The partnership with eero positions Uniti as a leader in advanced internet services, potentially increasing market share and customer satisfaction over the long term.
Operational Improvements
Operational improvements enhance customer experience and reduce costs, supporting sustainable growth and profitability.
Negative Factors
High Leverage
High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to invest in growth and weather economic downturns.
Declining Free Cash Flow
Declining free cash flow reduces the company's ability to fund operations and growth initiatives, posing a risk to long-term financial health.
Legacy Revenue Decline
The decline in legacy revenue streams highlights challenges in transitioning away from older technologies, which may affect overall revenue stability.

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

Uniti Group Business Overview & Revenue Model

Company DescriptionUniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of September 30, 2020, Uniti owns 6.7 million fiber strand miles and other communications real estate throughout the United States.
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:Nov 04, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, such as strong fiber revenue growth, successful merger with Windstream, and heightened hyperscaler activity. However, challenges like permitting delays, legacy revenue decline, and high churn rates were also noted. The company is focused on operational improvements and leveraging new strategic initiatives.
Q3-2025 Updates
Positive Updates
Merger with Windstream
Successfully closed merger with Windstream, enhancing position as a leading fiber provider with a scaled national wholesale fiber footprint.
Strong Fiber Revenue Growth
Achieved strong fiber revenue growth of 13%, the highest number of fiber gross adds ever, and the highest net adds in 2 years at Kinetic.
Operational Improvements
Recorded the highest first call resolution ever at Kinetic, the lowest transfer rate in over 2 years, and a record low dispatch rate.
Recognition as Best Connectivity Provider
Named 'The Best North American Connectivity Provider' by Capacity Media.
Increased Hyperscaler Activity
Hyperscaler funnel grew approximately 13% since the second quarter, with numerous large deals getting booked.
Financial Improvements
Improved fiber penetration rates and increased fiber ARPU by 10% year-over-year. Reduced net leverage to between 5.5x and 6x by year-end.
Negative Updates
Delays in Permitting
Faced delays in permits and locates, particularly in subsidized markets, affecting the pace of fiber build.
Legacy Revenue Decline
Consolidated pro forma revenue was down approximately 6% year-over-year, primarily driven by the decline in legacy TDM services and Uniti Solutions.
High Consumer Churn Rates
Higher than expected churn in fiber residential customers, mainly losing to cable competitors.
Company Guidance
During Uniti's third quarter 2025 earnings call, the company provided detailed guidance about its future strategy and performance metrics. Uniti reported a strong 13% growth in fiber revenue, with net adds at Kinetic reaching a two-year high and fiber subs growing by 17% year-over-year. The company aims to have 3.5 million homes passed and 1.25 million fiber subscribers by 2029. They also mentioned an increase in their third-party construction crews from 115 to an expected 400 by Q2 2026, indicating a significant ramp-up in their fiber build strategy. Uniti's focus on customer experience has resulted in record low dispatch and fiber repeat trouble ticket rates. The merger with Windstream has positioned Uniti to capture share in the wholesale fiber market, with the hyperscaler funnel growing by 13% since Q2 and expectations that the total addressable market for AI and hyperscalers is 50% higher than previous estimates. Looking ahead, Uniti projects consolidated fiber revenue to exceed 50% of total revenue by the end of 2026, with a trajectory set for revenue and adjusted EBITDA growth year-over-year starting in 2027.

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 Investments240.73M155.59M62.26M43.80M58.90M77.53M
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
Positive
Last Price6.40
Price Trends
50DMA
6.18
Positive
100DMA
6.79
Negative
200DMA
7.49
Negative
Market Momentum
MACD
-0.01
Negative
RSI
58.63
Neutral
STOCH
69.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNIT, the sentiment is Positive. The current price of 6.4 is above the 20-day moving average (MA) of 5.82, above the 50-day MA of 6.18, and below the 200-day MA of 7.49, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 69.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
79
Outperform
$81.49B75.987.72%2.30%5.36%-1.68%
67
Neutral
$21.07B24.702.23%4.82%25.24%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
65
Neutral
$84.43B28.7677.38%3.75%-5.33%163.89%
59
Neutral
$16.28B49.493.42%3.69%-1.64%-37.58%
57
Neutral
$1.43B1.2638.93%952.55%
46
Neutral
$39.33B-276.36%5.85%-26.56%-369.24%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UNIT
Uniti Group
6.40
-3.32
-34.16%
AMT
American Tower
179.43
-11.89
-6.21%
CCI
Crown Castle
89.83
-8.86
-8.98%
EQIX
Equinix
822.12
-66.43
-7.48%
SBAC
SBA Communications
195.79
-21.53
-9.91%
WY
Weyerhaeuser
22.48
-8.34
-27.06%

Uniti Group Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Uniti Group Completes $250M Fiber Network Note Offering
Positive
Oct 27, 2025

On October 24, 2025, Uniti Group‘s subsidiaries completed a private offering of $250 million in secured fiber network revenue term notes, marking the second issuance under the company’s securitization program. This move is expected to enhance the company’s financial flexibility, with proceeds intended for general corporate purposes, including potential capital expenditures and debt repayment, thereby potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (UNIT) stock is a Hold with a $7.00 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 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.

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: Nov 04, 2025