Uniti Group misses Q1 estimates, shares tumble

Published 06/05/2025, 16:10
Uniti Group misses Q1 estimates, shares tumble

Investing.com -- Uniti Group Inc. (NASDAQ:UNIT) reported first quarter earnings that fell short of analyst expectations, sending shares down 8.9% in trading.

The communications infrastructure company posted adjusted earnings per share of $0.05, missing the consensus estimate of $0.09. Revenue came in at $293.9 million, below analyst projections of $296.56 million but up 4% YoY for core recurring strategic fiber revenue.

Despite the earnings miss, Uniti highlighted positive trends in its business. Consolidated bookings increased 40% compared to the same period last year, while capital intensity of the fiber business continued to decline.

"We are off to a strong start at Uniti this year and are executing well on the goals we set out for 2025," said President and CEO Kenny Gunderman. He noted the company is "well positioned to benefit from several emerging themes within the communications infrastructure space, including those related to Generative AI and convergence."

For the full year 2025, Uniti updated its outlook, now expecting revenue between $1.196 billion and $1.216 billion and adjusted EBITDA of $966 million to $986 million.

The company ended the quarter with $592 million in unrestricted cash and cash equivalents. Uniti’s leverage ratio stood at 6.09x based on net debt to first quarter 2025 annualized adjusted EBITDA.

Uniti also noted that shareholders recently approved its upcoming merger with Windstream, expected to close in the third quarter of this year. The company views the deal as creating "a premier insurgent fiber powerhouse with a scaled platform for continued future growth."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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