Financial Data and Key Metrics Changes - Uniti reported a year-over-year revenue growth of 13% in its core Fiber business for Q4 2025 [5] - Consolidated pro forma revenue decreased by approximately 5% year-over-year, primarily due to declines in legacy copper and TDM services [21] - Kinetic consumer fiber revenue grew 24% year-over-year during the quarter [18] Business Line Data and Key Metrics Changes - Kinetic added 28,000 net new fiber subscribers in Q4, the highest level in almost three years, ending with 535,000 total fiber subscribers [17] - Fiber Infrastructure recorded consolidated bookings MRR of approximately $1.7 million, tying the highest level on record [18] - Kinetic achieved fiber penetration of 29% during the quarter, up 30 basis points sequentially and 150 basis points year-over-year [18] Market Data and Key Metrics Changes - The company expects to reach 2.3 million to 2.35 million homes passed with fiber by the end of 2026, which would bring fiber coverage within the Kinetic footprint to over 50% [20] - The company anticipates achieving approximately $1 billion of cumulative non-recurring cash revenue and up to $25 million of recurring cash revenue by 2028 [15] Company Strategy and Development Direction - Uniti aims to ramp up its fiber to the home build at Kinetic, targeting 450,000-500,000 new homes, almost doubling last year's activity [6] - The company is focused on transforming Kinetic into an insurgent fiber provider rather than a traditional telecom operator [10] - Uniti plans to optimize its balance sheet through disciplined access to capital markets and monetizing non-core assets [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resources available for expanded fiber builds and the hyperscale AI build, citing strong third-party relationships for labor and materials [45] - The company expects to face headwinds from legacy services over the next couple of years but believes the shift to higher fiber revenue will make legacy services increasingly less material [22] - Management is optimistic about achieving consolidated revenue and EBITDA growth in 2027 [9] Other Important Information - The company has identified $500 million-$1 billion of non-core assets that could be monetized over the next 12 to 36 months [30] - The blended yields on Uniti's debt have improved significantly, falling 560 basis points over the past three years [28] Q&A Session Summary Question: Can you help us with the mechanics of the 22% IRRs and sustainability? - Management indicated that high returns are partly due to selling existing infrastructure and leveraging existing assets, which may deter competition [34][36] Question: What is the cadence of the $1 billion of non-recurring revenue expected from now to 2028? - Management expects the revenue to build over the next 2-3 years, with some deals taking longer to deploy [41] Question: Can you provide confidence in resources for the expanded fiber build and any concerns on labor or material availability? - Management expressed confidence in their planning and third-party relationships, stating that 100% of the 2026 deployment is contracted [45][46] Question: What is the company's exposure to EchoStar's lease cancellations? - Management stated that revenue exposure to DISH is less than 1%, deeming it immaterial and not factored into guidance [51] Question: How much of the $1.5 billion hyperscale opportunity does the company expect to win? - Management indicated they are winning a good percentage of the funnel and have visibility into future deals [54] Question: What is the strategy for ARPU growth going forward? - Management outlined a strategy focusing on inflationary price increases, upgrading customers along the speed ladder, and selling value-added services [63][66] Question: What is the strategy to address customer churn? - Management highlighted record low churn rates and improvements in customer service metrics, indicating a positive trajectory [68][70]

Fourth Quarter and Full Year 2025 Financial Results Conference Call Presentation March 2, 2026 Together, Building the Future Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions and management's current expectations with respect to the future, involve certain risks and uncertainties, and are not guarantees. These forward-looking statements include, but are no ...

Core Insights - Uniti Group Inc. has made significant strides in its evolution as a leading fiber provider in the U.S., highlighted by the successful merger with Windstream and the establishment of a new leadership team [2][6] - The company has achieved substantial growth in its fiber-to-the-home initiatives, reaching approximately 1.9 million homes by year-end 2025, with a target of 3.5 million by the end of 2029 [2][4] - Uniti has secured the largest customer contract in its history, indicating strong demand from hyperscalers [2][4] Financial Performance - For Q4 2025, Uniti reported consolidated revenues of $917.3 million, with a net loss of $305.7 million and Adjusted EBITDA of $365.6 million, achieving an Adjusted EBITDA margin of approximately 40% [3][4] - Full-year 2025 consolidated revenues were $2,234.5 million, with a net income of $1,304.7 million, which includes a one-time gain of $1,683.9 million from the merger settlement [6][7] - Kinetic, Fiber Infrastructure, and Uniti Solutions contributed significantly to revenues, with Kinetic generating $558.7 million in Q4 2025 and $928.4 million for the full year [3][7] Capital Expenditures and Investments - Kinetic's net capital expenditures for Q4 2025 were $238.6 million, while Fiber Infrastructure's were $43.4 million, indicating ongoing investment in infrastructure [3][5] - The company has engaged in refinancing activities, including a $960.1 million fiber securitization and a $1.0 billion senior notes offering, aimed at strengthening its balance sheet and reducing capital costs [9][10] 2026 Outlook - Uniti's consolidated outlook for 2026 projects revenues between $3,605 million and $3,655 million, with an anticipated net loss of between $410 million and $360 million, and Adjusted EBITDA expected to range from $1,425 million to $1,475 million [12][26] - The outlook reflects the impact of recent financing activities and excludes potential future acquisitions or capital market transactions [11][12]

Company Overview - Shenandoah has a long history, founded in 1902 as a local telephone company in the Shenandoah Valley, Virginia [2] - The company has transformed from a local telephone provider to a broadband company, initially as a cable company and now focusing on fiber-to-the-home services [2] Strategic Focus - The current strategy emphasizes the fiber build initiative, which is a key component of the company's future growth and service delivery [1][2]

Financial Data and Key Metrics Changes - Uniti reported consolidated revenues of $300 million and adjusted EBITDA of $243 million for Q2 2025, with AFFO attributed to common shareholders at $96 million and AFFO per diluted common share at $0.36, all exceeding expectations [30][32] - Total fiber revenue for Uniti and Windstream increased by 10% year-over-year during Q2, with Kinetic consumer fiber revenue growing by 27% [29][30] - The pro forma view of new Uniti consolidated performance showed a revenue decline of approximately 6% year-over-year, primarily due to the decline in legacy TDM services [32] Business Line Data and Key Metrics Changes - Kinetic expanded its fiber network to pass an additional 52,000 homes, ending the quarter with 1.7 million homes passed and adding 19,000 fiber subscribers, a 15% increase year-over-year [29] - Fiber penetration increased by 20 basis points sequentially and 120 basis points year-over-year, while fiber ARPU rose by 6% sequentially and 11% year-over-year [30][32] - Uniti Fiber reported revenues of $74 million and adjusted EBITDA of $29 million during Q2, resulting in an adjusted EBITDA margin of 39% [31] Market Data and Key Metrics Changes - The hyperscaler deals have increased as a percentage of the total sales funnel from less than 15% a year ago to now 40%, with a total contract value of approximately $1.5 billion [17][56] - Kinetic's consumer segment represents about 60% of total revenue and is expected to grow to about 75%, with fiber-based revenue projected to reach about 85% by 2029 [18][30] Company Strategy and Development Direction - The company plans to accelerate its investment in fiber, expecting to pass 3.5 million homes with fiber within the Kinetic footprint by 2029, with 75% of total revenue anticipated to be fiber-based by that time [8][10] - The strategy focuses on being an insurgent share taker with industry-leading NPS scores and a commitment to network quality and customer satisfaction [9][12] - The company aims to transition the majority of Kinetic's footprint to fiber, which is expected to result in lower churn and predictable revenue and EBITDA growth [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment for fiber providers, noting a more favorable stance from the FCC regarding copper retirement and communications regulations [7] - The company anticipates a significant increase in demand for fiber services as the AI inference phase approaches, with expectations for higher margin, lower capital intensity deals from hyperscalers [49][51] - The outlook for 2025 includes consolidated revenue and adjusted EBITDA of $2.2 billion and $1.1 billion, respectively, with a focus on expanding fiber infrastructure [37][38] Other Important Information - The company has successfully collapsed legacy Unity and Windstream debt silos into one unified structure, simplifying its capital structure and unlocking opportunities for asset-backed securities [40] - The company expects to achieve a blended cost of $750 to $850 per passing over the life of the fiber build program, with a historical cost of approximately $650 per passing [38][58] Q&A Session Summary Question: How did the deal constructs change with the inference phase? - Management indicated that the inference phase is expected to bring more lease-up deals with better margins and lower upfront costs, while also acknowledging potential increased competition [42][49] Question: What is the timeframe for the $1.5 billion funnel? - Management noted that deals in the funnel typically take 12 to 18 months to materialize, with expectations that most of the current funnel will work its way through in the next 6 to 18 months [54][56] Question: How much of the Kinetic build-out is economical? - Management stated that a significant portion of the footprint without cable competition is economical to build, with expectations to reach 75% to 80% of the footprint with direct fiber to the home [58][60]

Financial Performance & Targets - Total revenue decreased by 6% from $947 million in 2Q24 to $887 million in 2Q25[11] - Total revenue is projected to decrease by 7% from approximately $3.775 billion in FY2024 to approximately $3.5 billion in FY2025[12] - The company is targeting approximately 75% of total service revenue from fiber by 2029[7] - Kinetic consumer fiber revenue grew approximately 27% year-over-year in 2Q25[75] Fiber Expansion & Penetration - The company aims to reach approximately 2 million fiber homes by the end of 2025 and approximately 3.5 million fiber homes by 2029[7] - Year 1 cohort fiber penetration is at 28%, with Year 2 cohort fiber penetration improving to 31%[7] - The company is targeting a long-term consumer fiber penetration of 40%[7] - Homes passed with fiber increased from approximately 1.6 million in FY2024 to approximately 1.7 million in 2Q25[8] Fiber Revenue Mix - Total fiber revenue increased from 31% of the revenue mix in 2Q24 to 37% in 2Q25, representing a 10% growth[11] - Total fiber revenue is projected to increase from approximately 30% of the revenue mix in FY2024 to approximately 40% in FY2025, representing an 11% growth[12] Wholesale & Hyperscaler Opportunities - The combined Uniti and Windstream hyperscaler funnel represents approximately $1.5 billion of total contract value[43] - Hyperscaler contribution to Uniti's sales funnel increased approximately 5x from 2Q24 levels[43]