Uniti lifts 2026 outlook on $1.9M hyperscaler fiber bookings

By Rebecca Stone

Uniti Group raised its 2026 revenue guidance to $3.665 billion-$3.695 billion from $3.63 billion-$3.68 billion on Monday, while its Fiber Infrastructure unit logged a second straight quarter of record wavelength bookings. Fiber Infrastructure booked about $1.9 million of new monthly recurring revenue, 20% more than a year earlier and its second-highest level. The adjusted EBITDA range narrowed to $1.46 billion-$1.49 billion, and the forecast net loss widened to $590 million-$620 million.

The Little Rock, Arkansas-based company owns long-haul and metro fiber that it leases to carriers and data-center operators. It also operates the Kinetic consumer and business broadband business it took over through its merger with Windstream.

What is driving the higher outlook?

Uniti's Q3 2026 revenue fell to $848.1 million from $909.7 million in the second quarter, while adjusted EBITDA declined to $289.3 million from $357.1 million. The net loss widened to $244.5 million, or $1.03 per diluted share, from $155.9 million, or $0.68, as interest expense rose to $205.5 million.

Fiber Infrastructure sells dark fiber and lit wavelength services to cloud and AI customers. Its $1.9 million of new monthly recurring bookings followed a record $2.2 million in the second quarter, which Uniti credited to hyperscalers and neocloud providers.

CEO Kenny Gunderman said: "These robust bookings continue to be fueled by the unprecedented demand we are seeing from Hyperscalers, Superscalers, and increasingly traditional large enterprises for both dark and lit wave solutions."

When do bookings become revenue?

The distinction matters. Bookings become revenue over time as Uniti builds and lights the routes. Customers paid $50.4 million in upfront payments during the quarter, compared with $9.7 million in the second quarter. Based on the raised guidance and nine-month results, MLQ calculates that Q4 revenue will be roughly $920 million-$950 million.

Reported segment results show where the revenue and contribution margin sat:

• Kinetic, the consumer and business broadband segment, generated $515.3 million in Q3 2026 revenue, down from $539.0 million in Q2, and posted $190.2 million of contribution margin, approximately 37%.
• Fiber Infrastructure, the wholesale and hyperscaler-focused unit, recorded $201.5 million in revenue versus $234.1 million in the second quarter, with contribution margin of $98.4 million, approximately 49%.
• Uniti Solutions produced $175.9 million in revenue, down from $182.5 million, and $85.9 million of contribution margin, approximately 49%.

Can Kinetic scale its fiber footprint?

Kinetic added about 46,000 consumer fiber customers and reached more than 162,000 premises with its fiber build, both company records; half of its footprint now has fiber. Consumer fiber revenue grew 22% year over year on a pro forma basis.

Uniti says Kinetic remains on track to pass 3.5 million homes with fiber by the end of 2029. The broadband unit spent $371.2 million on capital projects during the quarter, putting substantial cash behind that target.

What does the debt load mean for the buildout?

At the September quarter-end, Uniti held $861.5 million of cash and carried $11.27 billion of long-term notes and debt, up from $9.53 billion at the end of 2025. Shareholders' equity turned negative at $79.5 million, and the company expects $800 million of net interest expense this year.

MLQ's SEC-derived financials, paired with adjusted EBITDA from company releases, show Q3 2025 revenue of $722.6 million, adjusted EBITDA of $327.8 million, net income of $1.6089 billion and diluted earnings per share of $4.92. That net income included a $1.69 billion non-cash gain on the settlement of preexisting relationships tied to the Windstream merger.

Going forward, route activation will show whether the $1.9 million of new monthly recurring revenue booked in the quarter can support the higher outlook, particularly against the $800 million net-interest burden Uniti expects this year.