Uniti Group Inc. (UNIT)

Price$9.87Cached quoteAs of 2026-09-11 01:50 UTC

AI: Fair-priced

Price checkAt about nine times forecast operating profit, the stock looks fairly valued because debt and investment consume cash.

At approximately $2.4 billion of equity value (235.3 million shares multiplied by the observed price), UNIT trades at about 8.7 times expected 2026 enterprise value to adjusted EBITDA. Enterprise value adds roughly $10.5 billion of net debt to equity value; adjusted EBITDA is management’s operating-profit proxy before interest, taxes, depreciation, and selected items, forecast at $1.45–$1.50 billion. That is not expensive for a growing fiber platform, but cash deficits and high leverage limit downside protection. The evidence supports a Fair-priced verdict, not a clear bargain.

Big pictureReported profits are volatile, and heavy network spending currently consumes more cash than operations produce.

Reported revenue rose from $1.17 billion in 2024 to $2.23 billion in 2025 after Windstream joined the group, so the comparison is not like-for-like. Net income swung from $93 million to $1.30 billion, partly reflecting merger accounting, while operating cash flow stayed near $350–$367 million. In the first six months of 2026, operating cash flow was $339.4 million versus $799.2 million of capital spending, leaving negative free cash flow—cash left after running and investing in the business—of about $460 million. This makes earnings durability unproven.

Business strengthFiber growth is promising, but debt is large, common payouts stopped, and the share count is creeping upward.

Kinetic’s second-quarter revenue was $539 million with a 42% contribution margin—revenue left after direct costs—while Fiber Infrastructure produced a 52% contribution margin. Consumer fiber revenue grew 19% year over year and net adds, new customers after cancellations, reached about 38,000. The trade-off is $10.48 billion of net debt, meaning borrowings minus cash, against only $161.5 million of book equity, with about $805 million of 2026 interest expense forecast. Common dividends were zero in 2025, and shares rose from 234.0 million at year-end to 235.3 million by June, while six-month stock compensation was $15.1 million. Growth is real, but financial cushion is thin.

What could change the storyThe upside needs sustained fiber demand and falling investment needs, while refinancing pressure creates a credible downside.

The bull case is that Kinetic keeps adding customers and Fiber Infrastructure converts record $2.2 million monthly recurring bookings into durable revenue, while the fiber build raises future margins. Management targets 3.5 million homes passed by 2029 and guides to $1.45–$1.50 billion of 2026 adjusted EBITDA. The bear case is that $799.2 million of first-half capital spending stays high, older time-division voice and data services keep shrinking, and debt maturities total $4.53 billion in 2027–2030. Project-linked sales can make cash timing uneven. The price requires growth to arrive before refinancing and investment demands overwhelm cash generation.

AI: News

Second-quarter resultsStrong fiber growth met a large accounting loss, leaving investors to judge future cash generation rather than headline earnings.

On July 30, Uniti reported second-quarter revenue of $909.7 million, a $155.9 million net loss, and $357.1 million of adjusted EBITDA. On a combined-company basis, fiber revenue grew 10% year over year; Kinetic consumer fiber revenue rose 19%, with about 38,000 net adds, while infrastructure bookings reached roughly $2.2 million of monthly recurring revenue. The release points to improving demand, but the loss and large investment program mean the market still needs proof that growth becomes durable cash.

Fiber debt financingUniti raised long-term fiber-backed debt, improving near-term funding but adding interest and leaving overall leverage high.

On July 15, a legally separate subsidiary issued $1.14 billion of secured fiber-network notes, with a weighted average coupon near 6.18% and anticipated repayment in June 2033. Uniti said part of the proceeds would fund growth spending and $500 million would repay senior secured debt. This improves maturity management and matches debt to specific residential fiber assets, but it is not a $1.14 billion reduction in borrowings. Interest obligations remain material, with management forecasting $805 million of net interest expense for 2026.

Debt tender completedAn oversubscribed debt buyback used proceeds to retire older notes, modestly easing maturities but consuming cash needed for expansion.

On August 21, Uniti disclosed that holders tendered $555.5 million of notes, above the $480.236 million offer limit, so purchases were prorated. The company accepted $479.054 million of 2028 notes and $1.182 million of 2033 notes, settling August 24. This reduces refinancing exposure and shows creditors were willing to sell, but the cash outlay competes with fiber construction funding; the filing does not establish a lasting change in the stock’s value by itself.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$2.23B	$1.17B	$1.15B	$1.13B
Operating expenses	$1.97B	$579.9M	$771.9M	$536.9M
Operating income	$262.0M	$587.0M	$377.9M	$591.9M
Operating margin	11.73%	50.30%	32.87%	52.44%
EBITDA	$928.6M	$901.9M	$688.4M	$641.8M
EBITDA margin	41.56%	77.29%	59.87%	56.85%
Net income	$1.30B	$93.4M	−$81.7M	−$8.3M
Net profit margin	58.39%	8.00%	−7.11%	−0.73%
Basic EPSper basic share	$6.61	$0.64	-$0.58	-$0.04
Diluted EPSper diluted share	$4.87	$0.64	-$0.58	-$0.04

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

25.08%of listed shares

Elliott Investment Management L.P.59.01M shares · Jun 30, 2026

View holders

Top 20 reported holders of UNIT
Holder	% owned
Elliott Investment Management L.P.	25.08%59.01M shares
BlackRock, Inc.	12.81%30.14M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.33%12.55M shares
T. Rowe Price Investment Management, Inc.	5.15%12.12M shares
Apollo Management Holdings, L.P.	4.52%10.64M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.28%10.08M shares
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	3.94%9.27M shares
STATE STREET CORP	3.76%8.85M shares
Bracebridge Capital, LLC	3.41%8.02M shares
GEODE CAPITAL MANAGEMENT, LLC	1.99%4.69M shares
Diameter Capital Partners LP	1.70%4M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	1.47%3.45M shares
Allianz Asset Management GmbH	1.47%3.45M shares
LMR Partners LLP	1.33%3.14M shares
GOLDMAN SACHS GROUP INC	1.29%3.05M shares
NOMURA HOLDINGS INC	1.11%2.6M shares
NORTHERN TRUST CORP	0.99%2.33M shares
DEUTSCHE BANK AG\	0.87%2.06M shares
Gunderman Kenny	≈0.87%2.04M shares
JPMORGAN CHASE & CO	0.78%1.84M shares

Percentages use 235.3M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)1$58.6K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 13, 2026Form 4	Perez-Carlton CarmenDirector	SellCOMMON STOCK	7.5K	$7.81	$58.6K	115.0K

Review ownership filings at SEC.gov ↗

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Uniti Group Inc. (UNIT)

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