Core Viewpoint - Uniti Group Inc. is actively participating in the Barclays 2025 Leveraged Finance Conference, indicating its engagement with investors and the financial community [1]. Company Overview - Uniti is an internally managed real estate investment trust focused on acquiring and constructing mission-critical communications infrastructure [3]. - The company is a leading provider of fiber and wireless solutions for the communications industry [3]. - As of March 31, 2025, Uniti owns approximately 147,000 fiber route miles and 8.8 million fiber strand miles across the United States [3]. Investor Relations - Key executives, including the Chief Financial Officer and the Senior Vice President of Investor Relations, will represent Uniti at the conference [1]. - Investor materials related to the conference will be available on Uniti's Investor Relations website [2].

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________________________________________________________ FORM 10-Q _______________________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _ ...

Financial Performance - Uniti Group reported quarterly funds from operations (FFO) of $0.35 per share, matching the Zacks Consensus Estimate and showing an increase from $0.32 per share a year ago [1] - The company posted revenues of $293.91 million for the quarter ended March 2025, which was 0.94% below the Zacks Consensus Estimate, but an increase from $286.42 million year-over-year [2] - Over the last four quarters, Uniti has surpassed consensus FFO estimates only once and has topped consensus revenue estimates two times [2][3] Market Performance - Uniti shares have declined approximately 9.1% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The current consensus FFO estimate for the upcoming quarter is $0.36, with expected revenues of $303.9 million, and for the current fiscal year, the estimate is $1.44 on $2.44 billion in revenues [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which Uniti belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Uniti's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - Unity reported consolidated revenues of $294 million for the first quarter, with adjusted EBITDA of $238 million and AFFO attributed to common shareholders of $92 million, resulting in an AFFO per diluted common share of $0.35 [15][20] - Core recurring strategic revenue grew approximately 4% year-over-year, while capital intensity of the fiber business declined over 50% year-over-year [14][15] - The leverage ratio was reported at 6.09 times based on net debt to annualized adjusted EBITDA [21] Business Line Data and Key Metrics Changes - Uniti Leasing segment revenues were $222 million with an adjusted EBITDA of $215 million, achieving a 97% adjusted EBITDA margin [15] - Uniti Fiber reported revenues of $72 million and adjusted EBITDA of $29 million, resulting in a 40% adjusted EBITDA margin [17] - Non-recurring revenue was lower than expected due to a delay in a $4 million one-time sale of fiber to a government customer [17] Market Data and Key Metrics Changes - The company noted strong demand from wireless carriers, with bookings in the quarter nearly doubling compared to the same quarter last year [12] - The percentage of bookings related to hyperscalers was around 15% to 20%, consistent over the past 18 months [43][45] - The ABS market has remained resilient, providing a key financing tool for the company [6][8] Company Strategy and Development Direction - Unity aims for disciplined top-line growth of mid-single digits and high-single digit adjusted EBITDA growth, reiterating full-year guidance for revenue, adjusted EBITDA, and AFFO [5][10] - The company is focused on building new fiber, particularly within the Kinetic footprint, with plans to double the number of targeted homes passed with fiber by 2025 [6][10] - The merger with Windstream is expected to enhance Unity's fiber network and operational capabilities, with a goal to transition Kinetic off legacy systems to fiber [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the fiber infrastructure business, noting minimal impact from recent economic downturns [8][9] - The company is optimistic about regulatory changes that may benefit its business, including increased leniency towards retiring aging copper networks [9] - Management highlighted the ongoing investment cycle for large language models and the anticipated growth in AI-related demand [36][37] Other Important Information - The company received shareholder approval for the merger with Windstream, with approximately 97% of voting shareholders in favor [10] - New appointments to the Unity team include John Harobin as president of Kinetic and Harold Zeitz as a new board member [11] Q&A Session Summary Question: Concerns about M&A environment and lease-up mix - Management indicated no slowdown in M&A activity and remains engaged in strategic conversations, while also focusing on integration and accelerating growth strategies [33][34] - The high mix of lease-ups was acknowledged, with continued strong investment from hyperscalers expected [35][36] Question: Nature of bookings and AI-related deals - Approximately 20% of bookings are related to hyperscalers, with a growing percentage over the past quarters [43][44] - AI-driven builds are treated similarly to other anchor lease-up models, with yields nearing 20% for hyperscaler deals [47][48]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $294 million, with adjusted EBITDA of $238 million, and AFFO attributed to common shareholders of $92 million, resulting in an AFFO per diluted common share of $0.35 [15][20] - Core recurring strategic revenue grew approximately 4%, while capital intensity of the fiber business, excluding GCI impact, declined over 50% year over year [14][15] Business Line Data and Key Metrics Changes - Uniti Leasing reported segment revenues of $222 million and adjusted EBITDA of $215 million, achieving an adjusted EBITDA margin of 97% [15] - Uniti Fiber generated revenues of $72 million and adjusted EBITDA of $29 million, resulting in an adjusted EBITDA margin of 40% [16] Market Data and Key Metrics Changes - The company noted strong demand from wireless carriers, with bookings in the quarter almost double those from the same quarter last year [12] - The percentage of bookings related to hyperscalers is around 15% to 20%, consistent over the past 18 months [42][44] Company Strategy and Development Direction - The company aims for disciplined top-line growth of mid-single digits and high-single-digit adjusted EBITDA growth, reiterating full-year guidance for revenue, adjusted EBITDA, and AFFO [4][20] - The merger with Windstream is expected to enhance the fiber network significantly, with plans to convert approximately 2 million homes to fiber by the end of 2025 [26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the fiber infrastructure business, noting minimal impact from recent economic downturns [7] - The company remains optimistic about the merger with Windstream, expecting to close the transaction in the second half of the year [10][29] Other Important Information - The company has a leverage ratio of 6.09 times based on net debt to annualized adjusted EBITDA [21] - The ABS market is viewed as an attractive source of financing, with potential for incremental capacity exceeding $1 billion [22] Q&A Session Summary Question: Concerns about M&A environment and lease ups - Management indicated no slowdown in M&A activity, with ongoing strategic conversations and a focus on integration and accelerating growth [33][34] - Regarding lease ups, management noted that a significant portion of the lease up activity was driven by hyperscalers, with expectations for continued investment in large language models [35][36] Question: Nature of bookings and AI-related deals - Approximately 20% of bookings are related to hyperscalers, with a growing percentage over the past quarters [42][44] - AI-driven builds are treated similarly to other anchor lease up models, with yields nearing 20% on hyperscaler deals [46][47]

Financial Performance & Outlook - Uniti is targeting strategic recurring revenue growth of 4% to 6% in 2025[8] - Uniti is targeting strategic recurring Adjusted EBITDA growth of 8% to 10% in 2025[8] - Strategic Fiber Revenue 2025 MRR Growth Outlook is ~$365 million to $370 million[10] - Uniti Leasing revenue is projected to be between $897 million and $907 million in 2025[66] - Uniti Fiber revenue is projected to be between $299 million and $309 million in 2025[66] Capital & Investment - Net Success-Based Capital Intensity is estimated to be 20% - 25% in 2025[15] - Initial Aggregate Cash Yields on Major Wireless Anchor Builds of ~7%, results in Combined Anchor and Lease-Up Cash Yield of ~27%[23] - Uniti issued $589 million Inaugural ABS Facility at Fixed Rate of ~6.5% in January 2025[47] Merger & Strategy - The merger with Windstream is expected to close in 3Q25[8] - Kinetic is expected to pass an incremental 325K homes with fiber in 2025, reaching ~2 million homes in total[8] - Strategic Fiber Infrastructure Revenue is Expected to Grow ~5% in 2025[52]

Financial Performance - Uniti Group Inc. reported consolidated revenues of $293.9 million for Q1 2025, with a net income of $12.2 million and Adjusted EBITDA of $237.8 million, achieving an Adjusted EBITDA margin of approximately 81%[4] - Total revenues for Q1 2025 were $293.9 million, a 2% increase from $286.4 million in Q1 2024[22] - Net income attributable to common shareholders for Q1 2025 was $11.88 million, down 71% from $40.89 million in Q1 2024[22] - Adjusted EBITDA for Q1 2025 was $237.83 million, an increase of 4% compared to $228.63 million in Q1 2024[28] - Basic earnings per common share for Q1 2025 were $0.05, down from $0.17 in Q1 2024[26] - AFFO attributable to common shareholders was $92.3 million, or $0.35 per diluted common share for Q1 2025[4] Revenue Growth and Projections - Core recurring strategic fiber revenue grew approximately 4% year-over-year, while consolidated bookings increased by 40% compared to Q1 2024[2] - The company expects full-year 2025 revenues to be between $1,196 million and $1,216 million, with net income attributable to common shareholders projected between $90 million and $110 million[9] - Projected net income attributable to common shareholders for the year ending December 31, 2025, is estimated to be between $90 million and $110 million[30] - Net income attributable to common shareholders is projected to be between $0.38 and $0.46 for the year ended December 31, 2025[32] Debt and Cash Management - The company had approximately $592.0 million in unrestricted cash and cash equivalents at the end of the quarter, with a leverage ratio of 6.09x based on net debt to annualized Adjusted EBITDA[7] - Total debt as of March 31, 2025, was $5.48 billion, with a net debt of $5.39 billion[28] - The company reported a net decrease in cash and cash equivalents of $53.57 million for Q1 2025[24] Capital Expenditures and Operating Activities - Capital expenditures for Q1 2025 were $208.06 million, up from $167.94 million in Q1 2024[24] - Net cash provided by operating activities for Q1 2025 was $8.57 million, compared to $6.19 million in Q1 2024[24] Interest Expense and Financial Outlook - The company anticipates interest expense for the year 2025 to be approximately $535 million[30] - Interest expense on debt obligations is expected to total $503 million for the year ended December 31, 2025[34] - Total interest expense, net, is projected to be $535 million, including accretion of Windstream settlement payable and amortization of deferred financing costs[34] Merger and Business Outlook - The upcoming merger with Windstream is expected to close in Q3 2025, with strong investor support[3] - The company updated its 2025 outlook to reflect business unit level revisions and costs related to the merger, excluding any impact from the merger itself[8] Definitions and Non-GAAP Measures - The company defines EBITDA and Adjusted EBITDA as important non-GAAP measures to evaluate operating performance, excluding certain costs and expenses[35][36] - FFO is defined as net income attributable to common shareholders, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization[38] - AFFO excludes transaction-related costs and other non-recurring items to provide a clearer picture of ongoing operating performance[39] - The company uses FFO and AFFO as performance measures, which do not represent cash flows from operations or net income as defined by GAAP[39] Fiber Infrastructure - Uniti owns approximately 147,000 fiber route miles and 8.8 million fiber strand miles across the United States as of March 31, 2025[11]

Uniti Fiber contributed $71.5 million of revenues and $28.8 million of Adjusted EBITDA for the first quarter of 2025, achieving Adjusted EBITDA margins of approximately 40%. Uniti Fiber's net success-based capital expenditures during the quarter were $17.7 million. Updates 2025 Outlook LITTLE ROCK, Ark., May 06, 2025 (GLOBE NEWSWIRE) -- Uniti Group Inc. ("Uniti" or the "Company") (Nasdaq: UNIT) today announced its results for the first quarter 2025. "We are off to a strong start at Uniti this year and are e ...

Core Points - Uniti Group Inc. announced that its President and CEO, Kenny Gunderman, will present at two upcoming conferences in May 2025 [1] - The conferences include the J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference and the MoffettNathanson 2025 Media, Internet & Communications Conference [1] - Uniti is a real estate investment trust focused on communications infrastructure, owning approximately 145,000 fiber route miles and 8.8 million fiber strand miles as of December 31, 2024 [3] Company Overview - Uniti is engaged in the acquisition and construction of mission-critical communications infrastructure [3] - The company is a leading provider of fiber and wireless solutions for the communications industry [3] - Additional information about Uniti can be accessed on its official website [3]