Financial Data and Key Metrics Changes - Uniti reported a year-over-year revenue growth of 13% in its core Fiber business for Q4 2025 [12] - Consolidated pro forma revenue decreased approximately 5% year-over-year, primarily due to declines in legacy copper and TDM services [35] - Kinetic consumer fiber revenue grew 24% year-over-year during Q4 2025 [30] Business Line Data and Key Metrics Changes - Kinetic added 28,000 net new fiber subscribers in Q4 2025, the highest level in almost three years, ending with 535,000 total fiber subscribers [29] - Fiber Infrastructure recorded consolidated bookings MRR of approximately $1.7 million, tying the highest level on record [31] - Fiber penetration at Kinetic reached 29% during the quarter, up 30 basis points sequentially and 150 basis points year-over-year [31] Market Data and Key Metrics Changes - The company expects to reach 2.3 to 2.35 million homes passed with fiber by the end of 2026, achieving over 50% fiber coverage within the Kinetic footprint [34] - The company anticipates a total of approximately $1 billion of cumulative non-recurring cash revenue and up to $25 million of recurring cash revenue by 2028 [26] Company Strategy and Development Direction - Uniti aims to transform Kinetic into an insurgent fiber provider, focusing on customer-centric strategies and eliminating pain points [18] - The company plans to ramp up its fiber to the home build at Kinetic, targeting 450,000-500,000 new homes, almost doubling last year's activity [14] - Uniti is focused on disciplined strategic fiber builds and related economics, leveraging existing assets to drive returns [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consolidated revenue and EBITDA growth in 2027, emphasizing operational excellence and customer obsession [16] - The company views the current wholesale fiber opportunity as generational, with significant demand driven by AI and hyperscaler needs [21] - Management acknowledged potential bumps in the road but remains optimistic about long-term objectives [20] Other Important Information - The company has identified $500 million to $1 billion of non-core assets that could be monetized over the next 12 to 36 months [48] - Uniti's blended yields on debt have improved significantly, falling from around 12.5% to approximately 6.9% over the past three years [45] Q&A Session Summary Question: Can you help us with the mechanics of the 22% IRRs and sustainability? - Management indicated that high IRRs are partly due to selling existing infrastructure and leveraging greenfield builds, which may invite competition but also positions Uniti favorably due to its scale [52][54] Question: What is the cadence of the $1 billion of non-recurring revenue expected from now to 2028? - Management expects a steady ramp over the next 2-3 years, with some deals taking longer to deploy and recognize revenue [58] Question: Do you have concerns about labor or material availability for the expanded fiber build? - Management expressed confidence in resource availability, relying on trusted third-party relationships for fiber builds [64] Question: What is your exposure to EchoStar and how does it factor into guidance? - Uniti's revenue exposure to DISH is less than 1%, deemed immaterial, and not factored into guidance [69] Question: How much of the $1.5 billion hyperscale opportunity do you expect to win? - Management indicated a good percentage of the funnel is contracted, with ongoing visibility into future deals [72] Question: What is your ARPU strategy going forward? - Management expects sustainable ARPU growth of 2%-3%, driven by inflationary price increases, upgrading customer speeds, and selling value-added services [80][82]

Financial Data and Key Metrics Changes - Revenue for the quarter was $1,380,000,000, a 14.5% increase over the prior year [7] - Adjusted EBITDA reached $205,500,000, representing a 14.9% margin and a 29.8% increase over the prior year [8][27] - Net income was $97,500,000, with diluted EPS of $3.33 per share, exceeding expectations [28] - Total backlog at the end of Q2 was $7,989,000,000, including $4,604,000,000 expected to be completed in the next twelve months, marking a year-over-year increase of over 20% [29] Business Line Data and Key Metrics Changes - Revenue growth was driven by fiber to the home programs, wireless activity, maintenance and operations services, and initial contributions from fiber infrastructure programs for hyperscalers [27] - The service and maintenance business, which historically has been over half of the business, continues to grow with new awards and market expansions [51] Market Data and Key Metrics Changes - The demand for digital infrastructure is accelerating, with customers' fiber to the home build plans comprising over 125,000,000 passings, with significant incremental opportunities in the past sixteen months [11][12] - The addressable market for DICOM from spending on outside plant data center network infrastructure is estimated to exceed $20,000,000,000 over the next five years [19][53] Company Strategy and Development Direction - The company is focused on operational excellence, efficient cash flow management, and maintaining a diverse backlog that balances risk and shareholder returns [23][24] - DICOM is positioned to capitalize on the growing demand for digital infrastructure, particularly in relation to AI and hyperscaler investments [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities driven by customer investments and the recent tax legislation, which is expected to increase capital spending [30][22] - The company reaffirmed its fiscal 2026 revenue outlook range of $5,290,000,000 to $5,425,000,000, indicating confidence in achieving growth targets [10][31] Other Important Information - The company improved its Days Sales Outstanding (DSOs) by nine days year-over-year, ending the quarter at 108 days [8][29] - Recent corporate tax legislation is expected to provide a free cash flow benefit of approximately $50,000,000 due to reduced cash tax payments [30] Q&A Session Summary Question: What led to the low end of guidance for revenue in Q2? - Management noted that different customer programs are at various stages of ramping, impacting quarterly performance, but expressed optimism about the overall momentum and backlog growth [33][34] Question: Should we expect high margins to continue going forward? - Management confirmed that margins have been improving due to operational efficiencies and strategic reinvestments, and they expect to maintain strong margins moving forward [37][39] Question: What is the percentage of recurring revenue in the current business? - Management indicated that over 80% of their work is on Master Service Agreements (MSAs), which are repeatable, and they expect this to grow as they expand their service and maintenance business [50][51] Question: Can you provide an update on the data center opportunity in your backlog? - Management stated that they are seeing significant opportunities in the data center space, with ongoing conversations and awards contributing to their backlog [52][54] Question: How do you prioritize capital allocation between M&A and share repurchases? - Management emphasized that supporting growth is the first priority, but they are also open to M&A opportunities that fit their strategy and culture, balancing this with share repurchases when appropriate [72]

Financial Data and Key Metrics Changes - Revenue for the quarter was $1,380,000,000, a 14.5% increase over the prior year [6] - Adjusted EBITDA reached $205,500,000, representing a 29.8% increase over the prior year, with a margin of 14.9% [7][25] - Net income was $97,500,000, with diluted EPS of $3.33 per share, exceeding expectations [26] - Total backlog at the end of Q2 was $7,989,000,000, with a next twelve months backlog of $4,604,000,000, reflecting a year-over-year increase of 20.2% [27] Business Line Data and Key Metrics Changes - Revenue growth was driven by fiber to the home programs, wireless activity, maintenance and operations services, and initial contributions from fiber infrastructure programs for hyperscalers [25] - The service and maintenance business, which provides stability and recurring revenue, continues to grow with new awards and market expansions [11][50] Market Data and Key Metrics Changes - The demand for digital infrastructure is accelerating, with customers' fiber to the home build plans comprising over 125,000,000 passings, including $15,000,000 of incremental plans in the past sixteen months [10] - The addressable market for DICOM from outside plant data center network infrastructure is estimated to exceed $20,000,000,000 over the next five years [17][53] Company Strategy and Development Direction - The company is focused on operational excellence, efficient cash flow management, and expanding its service and maintenance business [6][22] - DICOM aims to capitalize on the growing demand for digital infrastructure driven by AI investments and the need for fiber capacity [16][17] - The company is well-positioned to lead in the marketplace due to its scale and expertise, particularly in fiber to the home and service maintenance agreements [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the second half of the year, reaffirming the fiscal 2026 revenue outlook range of $5,290,000,000 to $5,425,000,000 [8][30] - The recent corporate tax legislation is expected to positively impact customers and DICOM, leading to increased capital spending and fiber broadband deployment [29] - Management highlighted the importance of maintaining strong relationships with customers and adapting to their evolving needs [20][104] Other Important Information - The company secured a significant new award for service and maintenance and fiber to the home work across multiple states, which will be reflected in the Q3 backlog [8][27] - The company is actively monitoring the supply chain and tariff impacts, with no significant adverse effects reported [21] Q&A Session Summary Question: What led to the low end of guidance for revenue in Q2? - Management noted that different customer programs are at various stages of ramping, impacting quarterly performance, but expressed optimism for the full year outlook [32][34] Question: Should we expect high margins to continue? - Management confirmed that margins have improved due to operational efficiencies and operating leverage, and they expect further opportunities for improvement [35][38] Question: What is the percentage of recurring revenue in the current business? - Over 80% of the work is on Master Service Agreements (MSAs), indicating a strong base of recurring revenue, which is expected to grow as more infrastructure is built [50][51] Question: Can you provide an update on the data center opportunity in the backlog? - Management indicated that the data center opportunities are still early-stage but are expected to contribute significantly starting next year [96] Question: How is the company planning to allocate excess capital? - The priority is to support growth, with an appetite for M&A opportunities that align with the company's strategy, balanced against share repurchases [72]