Uniti Group Inc (UNIT) stock is surging 5.06% in pre-market trading on Tuesday following the release of its third-quarter 2025 earnings report, which showcased strong financial results boosted by a significant one-time gain from its merger with Windstream.
The telecommunications infrastructure company reported a substantial net income of $1.609 billion for Q3, primarily driven by a one-time gain of $1.685 billion related to the settlement of pre-existing relationships in connection with the Windstream merger. While the company's Q3 revenue of $722.6 million fell short of analyst expectations, Uniti Group demonstrated robust growth in its fiber business segments, with consolidated fiber revenue increasing by 13% year-over-year.
Investors appear encouraged by Uniti's strong performance in its Kinetic consumer fiber business, which saw revenue growth of 26% and subscriber growth of 17% compared to the same period last year. The company also reported its highest fiber infrastructure new bookings monthly recurring revenue in over two years at $1.6 million, indicating strong demand from hyperscalers and large enterprises.
Adding to the positive sentiment, Uniti Group reiterated its full-year 2025 outlook for consolidated revenue and adjusted EBITDA, maintaining its guidance range of $2.215 billion to $2.265 billion for revenue. The company also highlighted recent financing transactions, including a $1.4 billion senior secured notes offering and a new $1.0 billion term loan facility, which have helped strengthen its balance sheet and extend its debt maturity profile.
As Uniti Group continues to execute its fiber expansion strategy and capitalize on the growing demand for high-speed connectivity, investors seem optimistic about the company's future prospects, driving the stock's pre-market rally.
Comments