A telecom company born from the August 2025 merger of Old Uniti and Windstream, Uniti Group runs a 240,000-route-mile fiber network across 47 states. Its Kinetic arm delivers multi-gigabit fiber internet and voice to homes and small businesses in 18 states, while Uniti Solutions provides cloud connectivity and security to enterprises and government, and Fiber Infrastructure leases dark fiber and colocation space to carriers and hyperscalers. The combined company trades on Nasdaq under the ticker UNIT.
Revenue rose 203% to $909.7M after the Windstream merger, but operating income fell 78% to $32.2M as lost lease revenue and higher depreciation weighed on margins.
The merger is complete, but the combined company is still absorbing its costs. rose 203% to $909.7 million, yet fell 78% to $32.2 million as pre-merger leasing revenue from Windstream was eliminated and charges increased. The company is generating cash and refinancing debt, but the remains under pressure from $195.6 million in quarterly .
Key takeaways
fell 78% to $32.2 million, driven by a $165.4 million drop in operating lease from the settlement of preexisting Windstream leases and higher and from the acquired assets.
reached $909.7 million, up 203% from $300.7 million a year ago, with 87% of the total attributable to the acquired Windstream operations.
The Kinetic consumer broadband ended the quarter with 603,000 fiber subscribers, up from 564,000 in Q1 2026, and generated a $228.4 million on $501.9 million in service .
What changed
Transaction cost run-off: Merger-related costs, which were $30.1 million in Q1 2026, were not called out as a separate driver of the decline this quarter, suggesting they are fading as a material .
Kinetic fiber subscriber growth: The subscriber base grew to 603,000 from 564,000 in Q1 2026, a 6.9% sequential increase, indicating the consumer broadband business is adding customers against cable and fixed-wireless competition.
Dark fiber : The $68.7 million hyperscaler deal that boosted Q1 2026 Fiber Infrastructure revenue was not repeated at the same scale, contributing to the 's 27% service revenue decline.
What to watch
Kinetic fiber subscriber count and penetration rate: The 29% penetration rate on 603,000 subscribers leaves room for growth; the pace of net adds will indicate competitive positioning against cable and fixed-wireless providers.
and refinancing activity: With a $195.6 million quarterly run-rate and the post-quarter $1.1 billion , any further refinancings or rate changes will directly move .
Fiber Infrastructure service stabilization: The 's revenue fell 27% ; whether the wholesale and hyperscaler revenue base can offset the lost Windstream lease revenue will determine if the decline moderates.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue surged to $909.7M driven by the Windstream merger, but operating income fell 78% to $32.2M on higher D&A and lost lease revenue.
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Consolidated and sales reached $909.7M for Q2 2026, up $609.0M , with 87% attributable to the acquired Windstream operations.
Fiber Infrastructure service fell 27% to $216.0 million, as the loss of legacy Windstream leasing revenue was partially offset by $83.8 million from the acquired wholesale business and a new hyperscaler deal.
rose $66.8 million to $195.6 million, reflecting the incremental debt from the merger and subsequent refinancings; the company completed a $1.1 billion Kinetic in July 2026 to fund growth and repay senior debt.
Cash and equivalents stood at $608.9 million, down from $982.6 million at the end of Q1 2026, with an additional $838.1 million available under the .
trajectory: Net interest expense rose to $195.6 million from $188.3 million in Q1 2026, a 3.9% sequential increase, as the full weight of post-merger debt and refinancings continued to pressure the .
Liquidity and refinancing: Cash declined to $608.9 million from $982.6 million in Q1 2026, and the company disclosed a post-quarter $1.1 billion Kinetic , signaling continued active liability management.
recovery: At 3.5%, the operating margin remains well below pre-merger levels; the pace at which and integration costs normalize will determine when profitability returns toward historical norms.
decreased 78% to $32.2M, primarily due to a $165.4M drop in operating lease revenues from the settlement of preexisting Windstream leases and higher and .
The Kinetic contributed a $228.4M on $501.9M in service , ending the quarter with 603,000 fiber consumer subscribers and a 29% penetration rate.
Fiber Infrastructure service fell 27% to $216.0M, as the loss of legacy Windstream leasing revenue was partially offset by $83.8M from the acquired wholesale business and a new hyperscaler IRU deal.
, net, rose $66.8M to $195.6M, reflecting an incremental ~$4.6B in following the merger and subsequent refinancings.
Liquidity remained strong with $608.9M in cash and $838.1M in available capacity, and the company completed a $1.1B Kinetic ABS offering in July 2026 to fund growth and repay senior debt.
Quantitative and Qualitative Disclosures About Market Risk
Uniti’s market risk is concentrated in interest rates on floating-rate debt, partially hedged via swaps; equity and currency risks are not significant.
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Market risk is composed of interest rate, equity, and foreign currency risk, but the Company currently has no significant equity or foreign currency exposure.
Interest rate risk arises from the $995.0 million 2025 Term Loan and any borrowings; as of June 30, 2026, no revolver borrowings were outstanding.
The Company uses pay-fixed, receive-variable interest rate swaps to hedge cash flow variability on a portion of its floating-rate debt and does not trade derivatives for speculation.
As of June 30, 2026, four swaps with a total notional of $650.0 million were in place, maturing between 2028 and 2030, with a weighted-average fixed pay rate of 3.618%.
The unhedged variable-rate debt was $345.0 million; a hypothetical 100-basis-point rate increase would raise annual by approximately $3.5 million.
A description of legal proceedings can be found in Note 13 to our condensed consolidated financial statements, included in Part I, Item 1. “Financial Statements” of this Quarterly Report on Form 10-Q, and is incorporated by reference into this Item 1.
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A description of legal proceedings can be found in Note 13 to our condensed consolidated financial statements, included in Part I, Item 1. “Financial Statements” of this Quarterly Report on Form 10-Q, and is incorporated by reference into this Item 1.
There have been no material changes to the risk factors affecting our business that were discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 2, 2026.
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There have been no material changes to the risk factors affecting our business that were discussed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on March 2, 2026.