Uniti Group Inc (UNIT.O): Uniti Reports Solid 2Q26 Headlines with Fiber Infra Strength, But Softer Kinetic Fiber ARPUs

Research evidence excerpt

Uniti Group Inc (UNIT.O): Uniti Reports Solid 2Q26 Headlines with Fiber Infra Strength, But Softer Kinetic Fiber ARPUs

Uniti Group Inc (UNIT.O)

30 July 2026 Citi Research

and consensus of $178 million. Uniti Solutions Adjusted EBITDA of $92 million was

higher than our estimate of $73 million and consensus of $77 million.

Guidance — Uniti raised its 2026 financial outlook for total revenue, Adjusted

EBITDA, and capex. Within Kinetic, Uniti maintained revenue and Adjusted EBITDA

guidance, while Kinetic the capex outlook was raised by $100 million at the

midpoint, reflecting higher fiber premises expected to be constructed in 2026 and

incremental capital expected to be spent to support the accelerated build plan for

2027. The softness in Fiber ARPU is likely to experience further sequential erosion in

3Q, representing a low-single digit decline in 3Q (yoy) before stabilizing in 4Q with

anticipated return to low-single digit growth. Within Fiber Infrastructure, revenue

and Adjusted EBITDA guidance increased by $25 million and $15 million at the

midpoint, respectively, which reflects strong hyperscale and AI performance. Uniti

maintained Fiber Infrastructure capex outlook. Uniti also revised 3Q and 4Q

guidance outlooks to reflect the timing of hyperscale deals in the year, but noted

there is a risk that the timing of the deals could slip into 2027.

Implications — We continue to believe Uniti retains positive optionality to improve

performance from its strategic fiber assets, as well as optionality to strategically

separate and monetize assets. For the category, Kinetic’s softness and warning on

near-term fiber ARPU reflects a more aggressive approach to promotions that has

been the broad theme for the telcos this quarter. We believe these promotions are