Uniti Group Powers Ahead: Strong Q1 Results Mark a Thrilling Start to 2026
Good morning, and welcome to the first quarter of 2026 Uniti Group earnings conference call. As we gather today to discuss the company's remarkable performance, one thing is clear - Uniti Group is off to a great start in 2026.
With an aggressive fiber build strategy, the company has established itself as the premier insurgent fiber provider. As Kenny Gunderman, CEO of Uniti Group, proudly stated during the conference call, 'We're executing well on our strategy.' This commitment to operational excellence and customer-centricity has yielded impressive results, with traditional wholesale and enterprise fiber revenue growing at 10-15% and consumer fiber revenue soaring over 20%.
Uniti Group's embedded fiber base is a significant strength, providing a solid foundation for future growth. The company's unique approach of building fiber first or early into tier 2 and 3 markets has proven successful, and its footprint is strategically located in areas with power and land availability, making it an attractive player in the AI revolution.
The convergence of technologies has created a surge in demand for fiber infrastructure, with less white space to build. Uniti Group's position in this space is becoming increasingly significant, as it continues to fuel growth through twin engines: the fiber-to-the-home build at Kinetic and hyperscaler AI build at Fiber Infrastructure.
The company's strong results in the first quarter are a testament to its strategy. Total fiber revenue grew 15% year-over-year, with Fiber Infrastructure reporting 13% growth and Kinetic achieving its strongest quarter ever of gross adds. Moreover, Uniti Group had the best quarter of consumer fiber churn ever at Kinetic.
Looking ahead, Uniti Group is well-positioned to meet its goals for the year. Despite some challenges posed by unprecedented winter storm activity, the company remains on track to ramp up its fiber-to-the-home build at Kinetic, targeting 450,000-500,000 new homes with fiber in 2026. At Fiber Infrastructure, Uniti Group is benefiting from tailwinds driving wholesale fiber, including hyperscaler and generative AI demand.
The conference call highlights the company's commitment to customer obsession, demonstrated by its best-ever quarter of consumer fiber churn at Kinetic. With a solid lease-up on new hyperscaler builds and growing success in cross-selling products into its on-net fiber base at Uniti Fiber and Kinetic, Uniti Group is poised for continued growth and success.
