Uniti Group Inc (UNIT.O): Uniti Maintains Optionality; Updating Model for 2Q26 Results

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Uniti Group Inc (UNIT.O): Uniti Maintains Optionality; Updating Model for 2Q26 Results

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31 Jul 2026 14:53:08 ET │ 19 pages

Uniti Group Inc (UNIT.O)

Uniti Maintains Optionality; Updating Model for 2Q26 Results

CITI'S TAKE

Uniti's 2Q results reflected continued strength in Fiber Infrastructure

demand, highlighted by record bookings, an expanding AI-driven pipeline,

and ongoing momentum with hyperscaler and neocloud customers. Neutral / High Risk

However, we believe some of the negative share price reaction following the Price (31 Jul 26 13:53) US$9.70

results was driven by pressure within Kinetic fiber internet ARPUs related to

Target price US$11.75promotional activity, customer acquisition, and retention initiatives.

Additionally, the absence of a deal announcement (for core and/or non-core Expected share price return 21.1%

assets) and resulting questions around the timing and prospects may have Expected dividend yield 0.0%

contributed to the negative share price reaction. However, we continue to

Expected total return 21.1%believe Uniti retains significant strategic optionality, including the potential

to separate the company into three distinct businesses. Uniti management Market Cap US$2,354M

did indicate progress toward potential non-core asset monetization

opportunities. We maintain our Neutral/HR rating on UNIT shares largely on

valuation and could revisit shares at a lower price and/or faster

improvement in financial performance. Price Performance

(RIC: UNIT.O, BB: UNIT US)

Model Update — We are updating our UNIT model to reflect 2Q results, 2026

financial guidance, and management commentary. We are downwardly revising our

fiber ARPU expectations for 3Q to align with the company’s expectation for low-