Executive Summary

Q3 2025 headline results: revenue $722.6M, Adjusted EBITDA $327.8M (~45% margin), and GAAP net income $1.609B driven by a $1.685B one‑time merger accounting gain; consolidated fiber revenue grew 13% YoY, Kinetic consumer fiber revenue +26% YoY with record gross adds (~36k) and best net adds in two years (~24k) .
Guidance: Consolidated FY2025 revenue and Adjusted EBITDA reiterated at $2.215–$2.265B and $1.110–$1.160B; net income outlook updated to $1.44–$1.49B (from prior net loss) and interest expense cut to $645M (from $665M) reflecting refinancing and ABS activity .
Balance sheet/financing: Completed $1.4B 7.50% senior secured notes due 2033 and $1.0B term loan (SOFR+400), fully redeemed 10.50% 2028 secured notes; closed $250M fiber ABS at ~5.671% blended coupon; quarter-end unrestricted cash ~$604M; pro forma net leverage ~5.55x with ~$60M run-rate interest savings targeted .
Setup/catalysts: Near‑term catalysts include hyperscaler deal flow (pipeline ~$1.7B TCV) and Kinetic FTTH ramp (1.8M homes passed, 507k subs; FTTH penetration ~29%); medium‑term catalysts include ABS expansion (Kinetic) and waves market entry; biggest narrative driver: hyperscaler AI demand and the shift to higher margin, lower‑capex lease‑up/inference deals .

What Went Well and What Went Wrong

What Went Well

Strong fiber operating momentum: consolidated fiber revenue +13% YoY; Kinetic consumer fiber revenue +26% YoY; record Kinetic gross adds (~36k) and highest net adds in 2 years (~24k) .
Hyperscaler demand and bookings: Fiber Infrastructure new bookings MRR hit ~$1.6M (highest in 2+ years); hyperscaler sales funnel ~$1.7B TCV; “There has never been a better time to be a wholesale fiber provider” with blended cash yields at 34% on lease‑up .
Financing execution: extended maturities and reduced cost of debt; $1.4B 2033 notes, $1.0B term loan, $250M ABS at ~5.671%; CFO cites ~450 bps yield improvement vs two years ago and ~$60M annual interest savings post 2028 notes refi .

What Went Wrong

Revenue below Street; estimate context mixed: Q3 revenue $722.6M vs S&P Global consensus ~$762.95M (miss); “Primary EPS” beat vs consensus, but GAAP EPS was dominated by a one‑time merger gain, limiting quality of beat; EBITDA consensus comparability is limited given definitions post‑merger . Q3 estimates shown in the table below are from S&P Global.*
Legacy drag and comparability: management reiterated pro forma top‑line headwinds from TDM/legacy services; Q2 and Q1 were legacy Uniti pre‑merger, limiting sequential comparability; company could not furnish Q3 consolidated balance sheet and cash flow in the 8‑K pending merger accounting finalization (to be provided in 10‑Q) .
Build cadence/slippage: Kinetic fell short of 2.0M 2025 homes passed target (now ~1.9M by year‑end) due to permitting/locates; management expects to “catch up” in early 2026 and has pivoted to more external crews to accelerate .

Financial Results

Note: Q1/Q2 represent legacy Uniti; Q3 reflects combined company (two months post‑merger), limiting clean sequential comparisons.

Metric	Q1 2025	Q2 2025	Q3 2025 (Actual)	Q3 2025 (S&P Global Consensus)
Revenue ($M)	$293.9	$300.7	$722.6	$762.95*
Diluted EPS (GAAP)	$0.05	$(0.04)	$4.92 (one‑time gain)	n/a
Primary EPS (SPGI)	n/a	n/a	$0.112 (actual)*	$(0.195) (estimate)*
Adjusted EBITDA ($M)	$237.83	$242.56	$327.8	n/a
Adjusted EBITDA Margin (%)	~81%	~81%	~45%	n/a

Revenue by Segment and Contribution (Q3 2025):

Segment	Revenue ($M)	Contribution Margin ($M)	Margin (%)
Kinetic	$360.3	$155.4	~43%
Fiber Infrastructure	$226.6	$157.7	~70%
Uniti Solutions	$135.7	$72.2	~53%
Total	$722.6	$385.3	—

Key KPIs (Q3 2025):

KPI	Q3 2025
Consolidated fiber revenue YoY growth	+13%
Kinetic consumer fiber revenue YoY growth	+26%
Kinetic consumer fiber gross adds	~36,000 (record)
Kinetic consumer fiber net adds	~24,000 (best in 2 years)
Kinetic fiber subs	507,000
Kinetic FTTH homes passed	1.8M
FTTH penetration	~29%
Fiber Infrastructure new bookings MRR	~$1.6M (highest in 2+ years)
Hyperscaler qualified funnel	~$1.7B TCV

Estimate data marked with “*” are Values retrieved from S&P Global.

Interpretation:

Revenue missed consensus, while Primary EPS beat; GAAP EPS inflated by non‑recurring $1.685B gain on settlement of preexisting relationships from Windstream merger .
Adjusted EBITDA rose to $327.8M with a structurally lower margin vs legacy Uniti (~45% vs ~81%) reflecting the new mix post‑merger .

Guidance Changes

Metric	Period	Previous Guidance (Q2 as-reported)	Current Guidance (Q3)	Change
Consolidated Revenue ($B)	FY2025	$2.215 – $2.265	$2.215 – $2.265	Maintained
Adjusted EBITDA ($B)	FY2025	$1.110 – $1.160	$1.110 – $1.160	Maintained
Net Income to Common ($B)	FY2025	$(0.125) – $(0.075)	$1.44 – $1.49	Raised (reflects merger accounting gain)
Interest Expense, net ($M)	FY2025	$665	$645	Lowered
Kinetic Net Capex ($M)	FY2025	$510 (midpoint)	$450 (midpoint)	Lowered
Fiber Infrastructure Contribution Margin ($M)	FY2025	$735 (midpoint)	$770 (midpoint; shifted expense to corporate)	Higher (reclass)
Uniti Solutions Revenue/CM ($M)	FY2025	$320 / $155	$320 / $155	Maintained

Management also “reiterated 2025 outlook for consolidated revenue and Adjusted EBITDA” in the Q3 release .

Earnings Call Themes & Trends

Topic	Q1 2025 (prior)	Q2 2025 (prior)	Q3 2025 (current)	Trend
AI/Hyperscalers (TAM, bookings)	Emphasis on Generative AI and convergence tailwinds	Signed 20‑yr IRU (~$100M TCV); hyperscaler funnel ~$1.5B; lease‑up economics; inference phase accelerating	TAM ~50% higher vs start of year; lease‑up heavy mix; largest deals expected in coming quarters	Strengthening
Build strategy (Kinetic FTTH)	—	Target 2.0M HP in 2025; strategic builds; cost/pass $850–$950 going forward	1.8M HP; shifting to external crews (115 now, ~400 by 2Q26); catch‑up by early 2026	Scaling with near‑term permit headwinds
ABS/Capital structure	—	Collapsed debt silos; unsecured notes; leverage 5.5–6.0x; ABS role growing	$250M ABS at 5.671%; plan to establish Kinetic ABS; blended debt yield ~8%; ~$60M annual interest savings	Improving cost of capital
Regulatory	—	Favorable FCC stance on copper retirement; state PUCs supportive	Not a focus this quarter	Stable
Product/performance (waves)	—	Strategy to enter waves leveraging unique routes, high margin lease‑up	Post‑merger adds talent/network; compete on route diversity/reliability—not price	Building capability
Churn/ARPU playbook	—	—	Clear “more‑for‑more,” surgical price ups, ACP credit exit, GenAI‑assisted retention; 65% subs <1 Gbps; 2 Gbps to ~85% footprint	Executing turnaround
MDUs	—	—	New growth vector with higher IRRs; leveraging eero/community features	Emerging

Management Commentary

“There has never been a better time to be a wholesale fiber provider… the opportunity in wholesale fiber right now is generational in nature.”
“We now have 115 active third‑party crews… should have close to 400 by the second quarter of next year.”
“We now believe the total addressable market for AI and hyperscalers for fiber providers is approximately 50% higher than what we originally estimated at the beginning of this year.”
“With our most recent refinancing… we successfully pushed $2.3 billion of debt out four to five years and will save close to $60 million in annual interest expense.”
“By the end of next year, consolidated fiber revenue will exceed 50% for the entire company… setting us up for YoY revenue and adjusted EBITDA growth for the entire company beginning in 2027.”

Q&A Highlights

Hyperscaler/inference mix: Deals trending toward high‑margin lease‑up on existing network as inference accelerates; recent large hyperscaler deal had “virtually no capital” and “very high margin” .
ABS capacity and leverage: Kinetic ABS viewed as key financing lever; capacity historically cited at ~$3–$4B; leverage expected above LT target during investment cycle before eventual deleveraging .
Waves strategy/competition: Target less‑trafficked, unique routes; compete on route diversity, reliability, service—not price; merger brings experienced team and broader network .
Build cadence/permitting: 2025 miss driven by permit/locate delays (especially subsidized markets); internal process changes accelerating permit clears; confident to catch up in 1Q26 .
Churn/ARPU playbook: Exit ACP credits; earlier write‑off of non‑pay; surgical price actions; “more‑for‑more” speed ladder; tighten credits/retention incentives; GenAI to address root causes .
MDUs: New focus area with higher IRRs than SFH; expect visible contribution once motion is built .

Estimates Context

Versus S&P Global consensus for Q3 2025: Revenue $722.6M vs $762.95M (miss); Primary EPS $0.112 vs $(0.195) (beat). GAAP diluted EPS ($4.92) was not comparable due to the $1.685B non‑recurring merger gain . Estimates in tables marked with “*” are Values retrieved from S&P Global.
Implications: Revenue miss despite strong fiber KPIs suggests legacy runoff and timing effects; EPS “beat” quality is low on GAAP, but SPGI “Primary EPS” also cleared a low bar. Forward estimate revisions likely focus on (i) net interest savings from refinancing, (ii) Kinetic capex timing (lower 2025 spend), (iii) hyperscaler lease‑up conversion timing.

Key Takeaways for Investors

Fiber momentum intact: Kinetic FTTH and Fiber Infrastructure bookings are accelerating; pipeline/pent‑up AI demand should support multi‑year growth as mix shifts to lease‑up/inference .
2025 guide de‑risked at top‑line/EBITDA midpoints; lower net interest increases FCF trajectory into 2026; capex moderates in 2025 (Kinetic) without altering long‑term build .
Watch the bridge from bookings to MRR/EBITDA: management plans more visibility as larger hyperscaler deals turn on; this is the critical operating catalyst over the next few quarters .
Credit improving: maturities extended, ABS scaling, blended yield reduced; leverage stable ~5.5x–6.0x near term during invest phase with path to deleveraging as fiber growth inflects .
Risk flags: legacy TDM runoff masking fiber growth; permitting/locates can still delay builds; churn actions may pressure near‑term optics as they “clear the decks,” but should improve 2026 trajectory .
Strategy optionality: MDU, waves, and cross‑sell into enterprise bases provide incremental growth vectors; potential asset monetizations/JVs under consideration .

Additional Details and Supporting Data

Q3 2025 consolidated income statement highlights (selected):
- Revenue $722.6M; net income $1,608.9M (includes $1,685.4M gain on settlement of preexisting relationships); Adjusted EBITDA $327.8M .
- Depreciation & amortization $202.3M; net interest expense $168.2M; income tax benefit $134.5M .
Liquidity: ~$604M unrestricted cash/equivalents at quarter‑end; revolver availability undrawn .
2025 Projected (non‑GAAP bridge): EBITDA $2.585–$2.635B; less stock‑comp $25M, less $(1.685)B gain, plus ~$185M transaction costs → Adjusted EBITDA $1.110–$1.160B .