Uniti Swings to a $155.9M Q2 Loss as Merger Costs and Interest Swell; $1.1B ABS Deal Closes
UNIT sits 89% above its 52-week low of $4.9 on elevated volume (2.2× avg).
Summary
Uniti Group reported a $155.9 million Q2 2026 net loss as merger-related costs and surging interest expense offset a tripling of revenue. The company also disclosed $1.1 billion in new ABS notes and the start of a debt buyback.
Key Events · Earnings and Guidance · UNIT
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Q2 Net Loss Widens to $155.9M
Net loss attributable to common shareholders was $171.6 million, or $0.68 per share, compared to a $10.7 million loss a year ago. Revenue tripled to $909.7 million due to the Windstream merger, but operating income fell to $32.2 million from $145.0 million.
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Interest Expense Surges to $195.6M
Interest expense, net rose 52% year-over-year to $195.6 million, driven by an additional $4.6 billion in debt following the merger and refinancing transactions. Total debt principal reached $10.68 billion.
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$1.1B Kinetic ABS 2026-2 Notes Closed
On July 15, 2026, a subsidiary completed a $1.1 billion offering of secured fiber network revenue term notes. Proceeds will fund growth capex and $500 million of senior secured debt repayment.
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Debt Buyback Launched
On July 23, 2026, the company commenced offers to purchase up to $332.2 million of its 4.75% and 7.50% secured notes, and prepaid $19.8 million of its 2025 Term Loan on July 30, 2026.
Analysis · UNIT · Technology
The full weight of the Windstream merger is laid bare in Uniti's Q2 results. While revenues tripled year-over-year to $909.7 million, operating income collapsed 78% to $32.2 million as depreciation, integration costs, and a $195.6 million interest bill overwhelmed the top line. The net loss widened to $155.9 million from $10.7 million a year ago. The balance sheet tells the same story — total debt climbed to $10.68 billion, though cash jumped to $608.9 million after a series of ABS deals. The subsequent $1.1 billion Kinetic ABS 2026-2 notes offering and the start of a $332.2 million debt buyback show management is actively refinancing, but the sheer scale of the loss and the debt load make this a critical checkpoint for investors.
At the time of this filing, UNIT was trading at $9.25 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.3B. The 52-week trading range was $4.90 to $12.94. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.