Key Highlights

  • Net loss was $155.9 million for the second quarter.
  • Consolidated Revenue was $909.7 million; Adjusted EBITDA was $357.1 million.
  • Fiber Infrastructure new bookings MRR reached a record $2.2 million.
  • Shares closed at $6.65, down $0.21, or 3%, at Tuesday's close.

Uniti Group Inc. (NASDAQ:UNIT)'s second quarter combined record fiber bookings and subscriber growth with a net loss, as comparisons against the prior year reflect the company's Merger with Windstream completed in August 2025. Management said the quarter's record bookings were fueled by strong Demand from hyperscalers and neocloud providers for dark and lit wave solutions.

UNIT operates through three segments: Kinetic, Fiber Infrastructure and Uniti Solutions. Kinetic contributed $539.0 million of revenue and $228.4 million of contribution Margin in the quarter, with capital expenditures of $350.9 million. Fiber Infrastructure contributed $234.1 million of revenue and $121.8 million of contribution margin, with capital expenditures of $77.2 million. Uniti Solutions contributed $182.5 million of revenue and $91.8 million of contribution margin, with capital expenditures of $6.8 million.

The company said consolidated fiber revenue grew 10% year over year on a pro forma basis, with Kinetic Consumer Fiber revenue up 19% and approximately 38,000 net fiber subscriber additions, the most it has recorded in a quarter.

Second quarter 2026 compared with the prior-year quarter

Consolidated revenue was $909.7 million, against $300.7 million a year earlier, a comparison the company said reflects the addition of Windstream's operations following their merger in August 2025; on a pro forma basis, consolidated revenue and Adjusted EBITDA declined 5% and 10% year over year, respectively, which the company attributed mainly to legacy service declines. Adjusted EBITDA was $357.1 million, an approximately 39% margin.

Net loss was $155.9 million, or $0.68 per share, against a net loss of $10.7 million a year earlier. The company reported expenses of $877.5 million and net interest expense of $195.6 million. Fiber Infrastructure new bookings monthly Recurring Revenue was approximately $2.2 million, up nearly 30% from the company's previous highest reported level, and Kinetic Consumer Fiber premises constructed reached 141,000, the highest level on record.

Management outlook and stated risks

Management said it updated its full-year 2026 outlook. The company said demand for fiber, particularly from hyperscalers, neoclouds and superscalers, continues to accelerate, supported by robust customer diversification, and that more than half of new bookings during the quarter were for lit wave capacity, which it said signals a shift from the build cycle toward lease-up and inference workloads.

Management said consumer fiber average revenue per user decreased 2.6% in the quarter due to new customer volume, rate plan adjustments and retention initiatives, and that some large hyperscale dark fiber deals may shift from the fourth quarter of 2026 into early 2027.

Final Analysis

Management tied its near-term plans to converting its record bookings pipeline into installed revenue and continuing to build first in metro and wholesale markets. The company said its network now spans 240,000 route miles across 47 states, serving more than 1 million customers, including 603,000 residential fiber subscribers.