Revenues

9 Months Ended

Sep. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenues

Revenues:

Revenues from contracts with customers are accounted for under ASC Topic 606 - Revenues from Contracts with Customers (“ASC 606”) and are earned primarily through the provisioning of telecommunications and other services and through the sale of equipment to customers and contractors. Revenues are also earned from leasing arrangements, federal and state USF programs and other regulatory-related sources and activities.

Consumer service revenues are generated from the provisioning of broadband and voice services to consumers. Fiber subscriber consumer revenues consist of recurring products and services for fiber consumer broadband customers, which includes some cable customers with 1-Gigabyte per second (“Gbps”) service. All non-recurring revenues are included in digital subscriber line (“DSL”) subscriber and other revenues. Business service revenues are earned from providing managed communications services, integrated voice and data services, advanced data and traditional voice and long-distance services to large, mid-market and small business customers. Managed services revenues consist of recurring software solutions and network connectivity products. Software solutions include Secure Access Service Edge (“SASE”), Unified Communications as a Service (“UCaaS”), OfficeSuite UC®, and associated network access products and services. SASE includes Software Defined Wide Area Network (“SD-WAN”) and Security Service Edge (“SSE”). Network connectivity products consist of dynamic internet protocol, dedicated internet access, multi-protocol label switching services, integrated voice and data, long distance and other managed services. Managed services also include time-division multiplexing (“TDM”) voice and data services. Wholesale revenues include revenues from other communications services providers for special access circuits and fiber connections, voice and data transport services, and wireless backhaul services.

Service revenues also include switched access revenues, amounts received from the Rural Digital Opportunity Fund (“RDOF”), federal and state USF revenues, end user surcharges and revenues from providing other miscellaneous services.

Sales revenues include sales of various types of communications equipment and products to customers including selling network equipment to contractors on a wholesale basis. Uniti Solutions product sales include high-end data and communications equipment which facilitate the delivery of advanced data and voice services to business customers. Sales revenues also include amounts recognized from sales-type leases for fiber where control of the fiber has transferred to the customer.

Accounts Receivable – Accounts receivable consist principally of amounts billed and currently due from customers and are generally unsecured and due within 30 days. The amounts due are stated at their net estimated realizable value. An allowance for credit losses is maintained to provide for the estimated amount of receivables that will not be collected. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up our customer base. Due to varying customer billing cycle cut-offs, management must estimate service revenues earned but not yet billed at the end of each reporting period. Included in accounts receivable are unbilled revenues related to services and product sales of $16.9 million and $3.5 million at September 30, 2025 and December 31, 2024, respectively.

Accounts receivable consists of the following as of:

(Millions)	September 30, 2025		December 31, 2024
Accounts receivable	$	352.9	$	54.0
Less: Allowance for credit losses	7.6		2.5
Accounts receivable, net	$	345.3	$	51.5

Activity in the allowance for credit losses consisted of the following:

(Millions)
Balance as of December 31, 2024	$	2.5
Provision for estimated credit losses	6.3
Write-offs, net of recovered accounts	(1.2)
Balance as of September 30, 2025	$	7.6

Contract Balances

Contract assets include unbilled amounts, which result when revenue recognized exceeds the amount billed to the customer and the right to payment is not just subject to the passage of time. Contract assets principally consist of discounts and promotional credits given to customers. The current and noncurrent portions of contract assets are included in other current assets and other assets, respectively, in the accompanying condensed consolidated balance sheets.

Contract liabilities consist of services billed in excess of revenue recognized. The changes in contract liabilities are primarily related to customer activity associated with services billed in advance, the receipt of cash payments and the satisfaction of performance obligations. Deferred revenue amounts are classified as current or noncurrent based on the timing of when the Company expects to recognize revenue.

Contract liabilities also include upfront fees charged to the customer for the cost of establishing the necessary components of the Company’s network prior to the commencement of use by the customer. Fees charged to customers for the recurring use of the Company’s network are recognized during the related periods of service. Upfront fees that are billed in advance of providing services are deferred until such time the customer accepts the Company’s network and then are recognized as service revenues ratably over a period in which substantive services required under the revenue arrangement are expected to be performed, which is the initial term of the arrangement.

Contract assets and liabilities from contracts with customers were as follows at:

(Millions)	September 30, 2025		December 31, 2024
Contract assets (a)	$	63.6	$	—
Contract liabilities (b)	$	173.1	$	10.0

(a)Included $33.3 million in other current assets and $30.3 million in other assets as of September 30, 2025.

(b)Included $110.8 million and $2.7 million in current deferred revenue and $62.3 million and $7.3 million in noncurrent deferred revenue as of September 30, 2025 and December 31, 2024, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Millions)	2025		2024		2025		2024
Revenues recognized included in the opening contract    liability balance	$	0.8	$	0.8	$	3.6	$	3.4

Remaining Performance Obligations – Remaining performance obligations represent services the Company is required to provide to customers under bundled or discounted arrangements, which are satisfied as services are provided over the contract term. Certain contracts provide customers the option to purchase additional services or usage-based services. The fees relate to the additional services or usage-based services are recognized when the customer exercises the option, typically on a month-to-month basis. In determining the transaction price allocated, the Company does not include these non-recurring fees and estimates for usage, nor does it consider arrangements with an original expected duration of less than one year.

Remaining performance obligations reflect recurring charges billed, adjusted for discounts and promotional credits and revenue adjustments. At September 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $2.3 billion for contracts with original expected durations of more than one year remaining. The Company expects to recognize approximately 10%, 36%, and 26% of our remaining performance obligations as revenue during the remainder of 2025, 2026 and 2027, respectively, with the remaining balance thereafter.

Revenue by Category – Uniti disaggregates its revenues from contracts with customers based on the business segment and class of customer to which products and services are provided because management believes that doing so best depicts the nature, amount and timing of the Company’s revenue recognition. As further discussed in Note 12, effective August 1, 2025, we aligned the reporting structure to include the acquired Windstream businesses which resulted in combining the legacy fiber and leasing businesses into a new segment and adding additional segments for the acquired businesses. All prior periods amounts have been recast to conform to the current year presentation.

Revenues disaggregated by category were as follows:

	Three Months Ended September 30, 2025
(Millions)	Kinetic		Uniti Solutions		Fiber Infrastructure		Total
Category:
Consumer:
Fiber subscriber	$	77.7	$	—	$	—	$	77.7
DSL subscriber and other	102.7		—		—		102.7
Uniti Solutions:
Managed services	—		121.7		—		121.7
TDM	—		8.7		—		8.7
Business services	66.4		—		—		66.4
Switched access	2.2		—		—		2.2
Uniti Fiber	—		—		55.7		55.7
Wholesale	54.8		—		46.0		100.8
Total service revenues accounted for under ASC 606	303.8		130.4		101.7		535.9
Sales revenues	11.7		0.4		1.6		13.7
Total revenues and sales accounted for under ASC 606	315.5		130.8		103.3		549.6
Operating lease income	17.7		0.1		106.7		124.5
Other service and sales revenues (a)	27.1		4.8		16.6		48.5
Total revenues and sales	$	360.3	$	135.7	$	226.6	$	722.6

	Nine Months Ended September 30, 2025
(Millions)	Kinetic		Uniti Solutions		Fiber Infrastructure		Total
Category:
Consumer:
Fiber subscriber	$	77.7	$	—	$	—	$	77.7
DSL subscriber and other	102.7		—		—		102.7
Uniti Solutions:
Managed services	—		121.7		—		121.7
TDM	—		8.7		—		8.7
Business services	66.4		—		—		66.4
Switched access	2.2		—		—		2.2
Uniti Fiber	—		—		167.0		167.0
Wholesale	54.8		—		48.9		103.7
Total service revenues accounted for under    ASC 606	303.8		130.4		215.9		650.1
Sales revenues	11.7		0.4		7.0		19.1
Total revenues and sales accounted for    under ASC 606	315.5		130.8		222.9		669.2
Operating lease income	17.7		0.1		579.2		597.0
Other service and sales revenues (a)	27.1		4.8		19.2		51.1
Total revenues and sales	$	360.3	$	135.7	$	821.3	$	1,317.3

	Three Months Ended September 30, 2024
(Millions)	Kinetic		Uniti Solutions		Fiber Infrastructure		Total
Category:
Consumer:
Fiber subscriber	$	—	$	—	$	—	$	—
DSL subscriber and other	—		—		—		—
Uniti Solutions:
Managed services	—		—		—		—
TDM	—		—		—		—
Business services	—		—		—		—
Switched access	—		—		—		—
Uniti Fiber	—		—		54.7		54.7
Wholesale	—		—		1.9		1.9
Total service revenues accounted for under    ASC 606	—		—		56.6		56.6
Sales revenues	—		—		1.7		1.7
Total revenues and sales accounted for    under ASC 606	—		—		58.3		58.3
Operating lease income	—		—		230.9		230.9
Other service and sales revenues (a)	—		—		3.0		3.0
Total revenues and sales	$	—	$	—	$	292.2	$	292.2

	Nine Months Ended September 30, 2024
(Millions)	Kinetic		Uniti Solutions		Fiber Infrastructure		Total
Category:
Consumer:
Fiber subscriber	$	—	$	—	$	—	$	—
DSL subscriber and other	—		—		—		—
Uniti Solutions:
Managed services	—		—		—		—
TDM	—		—		—		—
Business services	—		—		—		—
Switched access	—		—		—		—
Uniti Fiber	—		—		167.6		167.6
Wholesale	—		—		5.1		5.1
Total service revenues accounted for under    ASC 606	—		—		172.7		172.7
Sales revenues	—		—		9.5		9.5
Total revenues and sales accounted for    under ASC 606	—		—		182.2		182.2
Operating lease income	—		—		688.4		688.4
Other service and sales revenues (a)	—		—		3.0		3.0
Total revenues and sales	$	—	$	—	$	873.6	$	873.6

(a)Other service and sales revenues primarily consist of end user surcharges, funding from the RDOF and state USF, and revenues from sales-type leases.

Deferred Contract Acquisition and Fulfillment Costs – Direct incremental costs to acquire a contract, consisting of sales commissions and direct incremental costs to fulfill a contract consisting of labor and materials consumed for activities associated with the provision, installation and activation of services, including costs to implement customized solutions, are deferred and recognized in operating expenses using a portfolio approach over the estimated life of the customer, which ranges from 36 to 48 months. Determining the amount of costs to fulfill a contract requires management judgment. In determining costs to fulfill, consideration is given to periodic time studies, management estimates and statistics from internal information systems.

Deferred contract acquisition and fulfillment costs are classified as current or noncurrent based on the timing of when the Company expects to recognize the expense. The current and noncurrent portions of deferred contract acquisition and fulfillment costs are included in prepaid expenses and other assets, respectively, in the accompanying condensed consolidated balance sheets. Amortization of deferred contract acquisition costs and amortization of deferred fulfillment costs are included in selling, general and administrative expenses and costs of services, respectively, in the accompanying condensed consolidated statements of income.

The following table presents the deferred contract acquisition and fulfillment costs as of:

(Millions)	September 30, 2025		December 31, 2024
Deferred Contract Acquisition Costs:
Prepaid expenses	$	5.8	$	4.1
Other assets	10.6		6.8
Total deferred contract acquisition costs	$	16.4	$	10.9
Deferred Contract Fulfillment Costs:
Prepaid expenses	$	1.1	$	—
Other assets	2.6		—
Total deferred contract fulfillment costs	$	3.7	$	—

There were no deferred contract fulfillment costs as of December 31, 2024. Amortization of deferred contract acquisition costs was $1.6 million and $3.8 million for the three and nine months ended September 30, 2025, respectively. Amortization of deferred contract acquisition costs was $1.1 million and $3.5 million for the three and nine months ended September 30, 2024, respectively. Amortization of deferred contract fulfillment costs was $0.2 million for both the three and nine months ended September 30, 2025.