Segment Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Information

Segment Information

Our management, including our chief executive officer, who is our chief operating decision maker, manages our operations as two reportable segments, in addition to our corporate operations, which include:

Uniti Leasing: Represents the operations of our leasing business which is engaged in the acquisition and construction of mission-critical communications assets and leasing them to anchor customers on either an exclusive or shared-tenant basis, in addition to the leasing of dark fiber on our existing dark fiber network assets that we either constructed or acquired. While the Leasing segment represents our REIT operations, certain aspects of the Leasing segment are also operated through taxable REIT subsidiaries.

Uniti Fiber: Represents the operations of our fiber business which is a leading provider of infrastructure solutions, including cell site backhaul and dark fiber, to the telecommunications industry.

Corporate: Represents our corporate office and shared service functions. Certain costs and expenses, primarily related to headcount, information technology systems, insurance, professional fees and similar charges, that are directly attributable to operations of our business segments are allocated to the respective segments.

Management evaluates the performance of each segment using Adjusted EBITDA, which is a segment performance measure we define as net income determined in accordance with GAAP, before interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense and the impact, which may be recurring in nature, of transaction and integration related costs, costs associated with Windstream’s bankruptcy, costs associated with litigation claims made against us, costs associated with the implementation of our enterprise resource planning system, goodwill impairment charges, severance costs, costs related to the settlement with Windstream, amortization of non-cash rights-of-use assets, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, including early tender and redemption premiums and costs associated with the termination of related hedging activities, gains or losses on dispositions, changes in the fair value of contingent consideration and financial instruments, and other similar or infrequent items (although we may not have had such charges in the periods presented). Adjusted EBITDA includes adjustments to reflect the Company’s share of Adjusted EBITDA from unconsolidated entities. The Company believes that net income, as defined by GAAP, is the most appropriate earnings metric; however, we believe that Adjusted EBITDA serves as a useful supplement to net income because it allows investors, analysts and management to evaluate the performance of our segments in a manner that is comparable period over period. Adjusted EBITDA should not be considered as an alternative to net income as determined in accordance with GAAP.

The Company’s chief executive officer, who is our chief operating decision maker, reviews Adjusted EBITDA for the purpose of making operating decisions, assessing financial performance, and deciding how to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances monthly when making decisions about allocating capital and personnel to the segments.

Selected financial data related to our segments is presented below for the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31, 2025
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Subtotal of Reportable Segments
Revenues	$	222,368	$	71,541	$	—	$	293,909
Adjusted EBITDA	$	215,126	$	28,756	$	(6,052)	$	237,830
Less:
Interest expense							137,987
Depreciation and amortization	46,851		32,816		16		79,683
Transaction related and other costs							7,847
Other, net							850
Stock-based compensation							3,761
Income tax benefit							(4,518)
Net income							$	12,220
Capital Expenditures	$	176,798	$	31,262	$	—	$	208,060

	Three Months Ended March 31, 2024
(Thousands)	Uniti Leasing		Uniti Fiber		Corporate		Subtotal of Reportable Segments
Revenues	$	217,621	$	68,797	$	—	$	286,418
Adjusted EBITDA	$	210,677	$	23,838	$	(5,887)	$	228,628
Less:
Interest expense							123,211
Depreciation and amortization	44,980		32,492		13		77,485
Transaction related and other costs							5,687
Gain on sale of real estate							(18,999)
Other, net							1,911
Stock-based compensation							3,348
Income tax benefit							(5,363)
Net Income							$	41,348
Capital Expenditures	$	139,702	$	28,225	$	12	$	167,939

Significant segment expenses for our reportable segments are presented below for the periods indicated:

	Uniti Fiber
	Three Months Ended March 31,
(Thousands)	2025		2024
Revenues	$	71,541	$	68,797
Less:
Employee-related (excluding stock-based compensation):
Operating Expense	6,066		6,538
General and Administrative Expense	8,990		8,923
Network (a)	18,431		18,759
Installation, Equipment, & Other Non-recurring Charges (a)	1,120		2,572
Insurance (b)	1,067		1,173
Professional Fees (b)	1,241		1,053
Other	5,870		5,941
Adjusted EBITDA	$	28,756	$	23,838

(a) Included within the Operating Expense (exclusive of depreciation, accretion and amortization) line item in our Consolidated Statements of Income.

(b) Included within the General and Administration Expense line item in our Consolidated Statements of Income.

Employee-related expenses include employee salaries, related taxes and benefits, short-term cash incentive compensation and travel and entertainment expenses. Other includes office rent, IT costs, taxes and fees, advertising, other overhead expenses, and EBITDA adjustments.

	Uniti Leasing
	Three Months Ended March 31,
(Thousands)	2025		2024
Revenues	$	222,368	$	217,621
Less:
Employee-related (excluding stock-based compensation):
Operating Expense	66		293
General and Administrative Expense	1,689		1,507
Network (a)	4,878		4,996
Other	609		148
Adjusted EBITDA	$	215,126	$	210,677

(a) Included within the Operating Expense (exclusive of depreciation, accretion and amortization) line item in our Consolidated Statements of Income.

Employee-related expenses include employee salaries, related taxes and benefits, short-term cash incentive compensation and travel and entertainment expenses. Other includes insurance, professional fees, taxes and fees, other overhead expenses, and EBITDA adjustments.

Total assets by business segment as of March 31, 2025 and December 31, 2024 are as follows:

(Thousands)	March 31, 2025		December 31, 2024
Uniti Leasing	$	3,226,236	$	3,158,309
Uniti Fiber	1,995,771		1,985,828
Corporate	70,407		138,008
Total of reportable segments	$	5,292,414	$	5,282,145