Uniti Group Inc (UNIT) saw its stock price plummet 5.06% in Tuesday's pre-market trading session following the release of its third-quarter 2025 earnings report. The sharp decline comes as the company's revenue fell short of analyst expectations, overshadowing a significant boost in net income.
The integrated telecommunications services provider reported Q3 revenue of $722.6 million, missing the consensus estimate of $737.7 million. This revenue miss appears to be the primary driver behind the stock's negative movement. However, Uniti's bottom line painted a different picture, with the company reporting a substantial net income of $1.609 billion for the quarter. This impressive figure includes a one-time gain of $1.685 billion related to the settlement of preexisting relationships in connection with the company's merger with Windstream.
Despite the revenue shortfall, Uniti highlighted several positive developments in its earnings report. The company saw strong growth in its fiber business, with consolidated fiber revenue increasing 13% year-over-year. Notably, Kinetic Consumer Fiber revenue surged 26% compared to the same period last year, while its subscriber base grew by 17%. Additionally, Uniti's Fiber Infrastructure segment reported its highest new bookings monthly recurring revenue in over two years at $1.6 million. The company also reiterated its 2025 outlook, projecting full-year revenue between $2.215 billion and $2.265 billion, and adjusted EBITDA of $1.110 billion to $1.160 billion. These mixed results and forward-looking statements suggest that while investors are currently focused on the revenue miss, Uniti's long-term growth prospects in the fiber market remain intact.
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