Uniti Group Reports Q1 2025 Revenue Growth to $293.9 Million, Net Income Declines

Uniti Group Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $293.9 million, a 2% increase from $286.4 million in the same period last year. The company's net income for the quarter was $12.2 million, down significantly from $41.3 million in the prior year, primarily due to increased interest expenses and transaction-related costs. The earnings per share decreased to $0.05 from $0.17 in the previous year, reflecting the challenges faced in the current financial environment.

The company's revenue streams were driven by its two main segments: Uniti Leasing and Uniti Fiber. Uniti Leasing generated $222.4 million in revenue, up from $217.6 million, while Uniti Fiber's revenue increased to $71.5 million from $68.8 million, largely due to growth in dark fiber and small cell services. However, service revenues from Uniti Fiber saw a decline, with E-Rate and government revenues dropping from $11.1 million to $9.6 million. The overall increase in revenues was offset by a rise in total costs and expenses, which climbed to $286.2 million from $250.4 million, largely due to higher interest expenses and transaction-related costs.

In terms of operational metrics, Uniti Group reported a slight increase in customer connections for Uniti Fiber, reaching 30,017, up from 28,896 a year earlier. The company also expanded its fiber strand miles to 5.77 million in Uniti Leasing and 3.05 million in Uniti Fiber, reflecting ongoing investments in network infrastructure. The total assets of Uniti Group as of March 31, 2025, stood at $5.29 billion, a marginal increase from $5.28 billion at the end of 2024.

Strategically, Uniti Group is in the process of merging with Windstream, a move that is expected to create a more integrated telecommunications company. The merger, which has received stockholder approval, is anticipated to close in the second half of 2025, subject to regulatory approvals. Following the merger, Uniti Group will cease to qualify as a REIT, which may impact its future financial structure and operations. The company has also committed to funding $425 million in cash consideration for the merger and has ongoing obligations to reimburse Windstream for growth capital improvements.

Looking ahead, Uniti Group aims to continue investing in its network infrastructure while managing its liquidity needs. The company reported $91.9 million in cash and cash equivalents as of March 31, 2025, along with $500 million available under its revolving credit facility. Uniti Group's management expressed confidence that its current cash position and operational cash flows will be sufficient to meet its obligations, including those related to the merger and ongoing capital expenditures. However, they acknowledged the potential need to access capital markets for additional funding in the future.