Uniti Group Inc.

Previous wording

The following management’s discussion and analysis of financial condition and results of operations (“MD&A”) describes the principal factors affecting the results of our operations, financial condition, and changes in financial condition for the three and six months ended June 30, 2026. This discussion should be read in conjunction with the accompanying condensed consolidated financial statements, and the notes thereto set forth in Part I, Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q and the Company’s 2025 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 2, 2026.

Current wording

The following management’s discussion and analysis of financial condition and results of operations (“MD&A”) describes the principal factors affecting the results of our operations, financial condition, and changes in financial condition for the three and nine months ended September 30, 2026. This discussion should be read in conjunction with the accompanying condensed consolidated financial statements and the notes thereto set forth in Part I, Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q and the Company’s 2025 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 2, 2026.

Previous wording

Uniti is a premier digital infrastructure company with approximately 240,000 fiber route miles across 47 states. The Company serves more than 1.0 million customers, including approximately 603,000 residential fiber customers, with a network that includes approximately 2.1 million fiber-equipped households predominately situated in the Midwest and Southeast United States of America (“U.S.”). The Company offers a full suite of advanced communications services, including fiber-based broadband to residential and business customers, managed cloud communications and security services for large enterprises and government entities across the U.S., and tailored wave and transport solutions for carriers, content providers and large cloud computing and storage service providers in the U.S. and Canada. Our operations are organized into three business segments: Kinetic, Fiber Infrastructure and Uniti Solutions. See Notes 8 and 12 for additional information regarding the Company’s business segments.

Current wording

Uniti is a premier digital infrastructure company with approximately 240,000 fiber route miles across 47 states. The Company serves more than 1.0 million customers, including approximately 650,000 residential fiber customers, with a network that includes approximately 2.2 million fiber-equipped households predominantly situated in the Midwest and Southeast United States of America (“U.S.”). The Company offers a full suite of advanced communications services, including fiber-based broadband to residential and business customers, managed cloud communications and security services for large enterprises and government entities across the U.S., and tailored wave and transport solutions for carriers, content providers and large cloud computing and storage service providers in the U.S. and Canada. Our operations are organized into three business segments: Kinetic, Fiber Infrastructure and Uniti Solutions. See Notes 8 and 12 for additional information regarding the Company’s business segments.

Previous wording

The Merger was accounted for as a reverse merger using the acquisition method of accounting, with Windstream treated as the legal acquirer and Old Uniti treated as the accounting acquirer. Because Old Uniti is treated as the accounting acquirer, financial information for periods prior to the Merger reflect the historical activity of Old Uniti. For periods after the Merger, the consolidated financial statements reflect the combined results of Old Uniti and Windstream. The Merger was a taxable transaction for U.S. federal income tax purposes. See Notes 1,2 and 3 to our accompanying condensed consolidated financial statements contained in Part I, Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q for additional information regarding the Merger.

Current wording

The Merger was accounted for as a reverse merger using the acquisition method of accounting, with Windstream treated as the legal acquirer and Old Uniti treated as the accounting acquirer. Because Old Uniti is treated as the accounting acquirer, financial information for periods prior to the Merger reflects the historical activity of Old Uniti. For periods after the Merger, the consolidated financial statements reflect the combined results of Old Uniti and Windstream. The Merger was a taxable transaction for U.S. federal income tax purposes. See Notes 1,2 and 3 to our accompanying condensed consolidated financial statements contained in Part I, Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q for additional information regarding the Merger.

Previous wording

Following the completion of the Merger, we updated our segment structure to include new operating segments for the acquired Windstream businesses, combined the legacy fiber and leasing businesses into a new segment and no longer reported corporate separately. Prior period segment information has been recast to reflect these changes for all periods presented. Our reportable business segments are as follows:

Current wording

Following the completion of the Merger, we updated our segment structure to include new operating segments for the acquired Windstream businesses and combined the legacy fiber and leasing businesses into a new segment. During the fourth quarter of 2025, we made changes to the previously reported segment revenues and expenses for the three and nine months ended September 30, 2025 to better align customers and their associated revenues and expenses within our post-Merger business segment structure. Prior period segment information for the three and nine months ended September 30, 2025 has been recast to reflect these changes. Our reportable business segments are as follows:

Previous wording

Fiber Infrastructure – We manage as one business our legacy fiber and leasing businesses combined with the competitive local exchange carrier (“CLEC”) portion of Windstream's acquired wholesale business. Our Fiber Infrastructure operations are focused on providing network bandwidth to other telecommunications carriers, network operators, content providers, and large cloud computing and storage service providers. Services provided include network transport services to end users, Ethernet and Wave transport of up to 400 Gbps, and dark fiber and colocation services. Services also include fiber-to-the-tower connections to support the wireless backhaul market. In addition, we offer voice and data carrier services to other communications providers and to larger-scale purchasers of network capacity. We are also 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. Fiber Infrastructure sales revenues primarily represent amounts recognized from sales-type leases for fiber where control of the fiber has transferred to the customer.

Current wording

Fiber Infrastructure – We manage as one business our legacy fiber and leasing businesses combined with the competitive local exchange carrier (“CLEC”) portion of Windstream’s acquired wholesale business. Our Fiber Infrastructure operations are focused on providing network bandwidth to other telecommunications carriers, network operators, content providers, and large cloud computing and storage service providers. Services provided include network transport services to end users, Ethernet and Wave transport of up to 400 Gbps, and dark fiber and colocation services, as well as fiber-to-the-tower connections to support the wireless backhaul market. We also offer voice and data carrier services to other communications providers and to larger-scale purchasers of network capacity, and we are engaged in the acquisition and construction of 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. Fiber Infrastructure sales revenues primarily represent amounts recognized from sales-type leases for fiber where control of the fiber has transferred to the customer.

Previous wording

Uniti Solutions – We manage as one business our mid-market and large business customers located within markets in which we are a CLEC and provide services over network facilities primarily leased from other carriers. Products and services consist of software solutions and network connectivity offerings. 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”) and associated network access products and services. Network connectivity offerings consist of dynamic internet protocol, dedicated internet access, multi-protocol label switching services, integrated voice and data, long distance and other managed services, including time-division multiplexing (“TDM”) voice and data services and certain surcharges assessed to customers. Uniti Solutions’ sales revenues include sales of high-end data and communications equipment which facilitate the delivery of advanced data and voice services to business customers.

Current wording

Uniti Solutions – We manage as one business our mid-market and large business customers located within our CLEC markets and provide services over network facilities primarily leased from other carriers. Products and services consist of software solutions and network connectivity offerings. 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”) and associated network access products and services. Network connectivity offerings consist of dynamic internet protocol, dedicated internet access, multi-protocol label switching services, integrated voice and data, long distance and other managed services, including time-division multiplexing (“TDM”) voice and data services and certain surcharges assessed to customers. Uniti Solutions’ sales revenues include sales of high-end data and communications equipment which facilitate the delivery of advanced data and voice services to business customers.

Previous wording

Interest expense, net and (loss) gain on extinguishment of debt have also been excluded from segment operating results because we manage our financing activities on a total company basis and have not assigned any debt or finance lease obligations to the segments. Other income (expense), net, and income tax (expense) benefit are not monitored as a part of our segment operations and, therefore, these items also have been excluded from our segment operating results.

Current wording

Interest expense, net and net loss on extinguishment of debt have also been excluded from segment operating results because we manage our financing activities on a total company basis and have not assigned any debt or finance lease obligations to the segments. Other income (expense), net, and income tax (expense) benefit are not monitored as a part of our segment operations and, therefore, these items also have been excluded from our segment operating results.

Previous wording

Third Quarter 2026 Debt Refinancing Transactions

Current wording

Third Quarter 2026 Debt Transactions

Previous wording

Kinetic ABS Series 2026-2 Notes – On July 15, 2026, Kinetic ABS Issuer LLC (“Kinetic ABS Issuer”) completed a private offering of $1.1 billion aggregate principal amount of secured fiber network revenue term notes, consisting of $805.2 million 5.834% Series 2026-2, Class A-2 term notes, $134.2 million 6.224% Series 2026-2, Class B term notes and $201.3 million 7.536% Series 2026-2, Class C term notes (collectively, the “Kinetic ABS 2026-2 Notes”), each with an anticipated repayment date in June 2033. The proceeds of the offering of the Kinetic ABS 2026-2 Notes were used to purchase assets held by certain subsidiary guarantors of the Company’s senior indebtedness that were contributed to certain subsidiaries of Kinetic ABS Issuer (the “Kinetic ABS Asset Sale”). Uniti intends to use a portion of the net cash provided by the Kinetic ABS Asset Sale for reinvestments in the business, including to fund growth capital expenditures, and $500 million of such net cash proceeds to repay the Company’s senior secured indebtedness pursuant to the Term Loan Prepayment Offer and the Asset Sale Offers (each as defined and described further below).

Current wording

Kinetic ABS Series 2026-2 Notes – On July 15, 2026, Kinetic ABS Issuer LLC (“Kinetic ABS Issuer”) completed a private offering of $1.1 billion aggregate principal amount of secured fiber network revenue term notes, consisting of $805.2 million 5.834% Series 2026-2, Class A-2 term notes, $134.2 million 6.224% Series 2026-2, Class B term notes and $201.3 million 7.536% Series 2026-2, Class C term notes (collectively, the “Kinetic ABS 2026-2 Notes”), each with an anticipated repayment date in June 2033. The proceeds of the offering of the Kinetic ABS 2026-2 Notes were used to purchase assets held by certain subsidiary guarantors of the Company’s senior indebtedness that were contributed to certain subsidiaries of Kinetic ABS Issuer (the “Kinetic ABS Asset Sale”). Uniti used a portion of the net cash provided by the Kinetic ABS Asset Sale for reinvestments in the business, including to fund growth capital expenditures, and to repay $500.0 million of certain of the Company’s senior secured indebtedness. On July 30, 2026, following the completion of the Kinetic ABS Asset Sale, Uniti Services repaid $19.8 million principal amount of its 2025 Term Loan, and on August 24, 2026, Uniti Services repurchased $479.0 million of its 4.75% senior secured notes due 2028 (the “4.75% secured notes”) and $1.2 million of its 7.50% senior secured notes due 2033 (the “7.50% secured notes”).

Previous wording

The Kinetic ABS 2026-2 Notes were issued at an issue price of 100% of their respective principal amounts pursuant to an amended and restated indenture, dated as of July 15, 2026 (the “Kinetic ABS Base Indenture”), as supplemented by a Series 2026-2 Supplement thereto, dated as of July 15, 2026 (the “Series 2026-2 Supplement”). In connection with the issuance of the Kinetic ABS 2026-2 Notes, the Kinetic ABS Issuer (i) increased the maximum commitment under its existing liquidity funding note facility to reflect the increase in the transaction’s liquidity reserve requirements that resulted from the issuance of the Kinetic ABS 2026-2 Notes and (ii) extended the maturity of the existing liquidity note facility to align with the final maturity date of the Kinetic ABS 2026-2 Notes. No new variable funding notes were issued in connection with issuance of the Kinetic ABS 2026-2 Notes.

Current wording

The Kinetic ABS 2026-2 Notes were issued at an issue price of 100% of their respective principal amounts pursuant to an amended and restated indenture, dated as of July 15, 2026, as supplemented by a Series 2026-2 Supplement thereto, dated as of July 15, 2026 (the “Series 2026-2 Supplement”). In connection with the issuance of the Kinetic ABS 2026-2 Notes, the Kinetic ABS Issuer (i) increased the maximum commitment under its existing liquidity funding note facility to reflect the increase in the transaction’s liquidity reserve requirements that resulted from the issuance of the Kinetic ABS 2026-2 Notes and (ii) extended the maturity of the existing liquidity note facility to align with the final maturity date of the Kinetic ABS 2026-2 Notes. No new variable funding notes were issued in connection with the issuance of the Kinetic ABS 2026-2 Notes.

Previous wording

As of the closing on July 15, 2026, together with the $960.1 million aggregate principal amount of Kinetic ABS 2026-1 Notes issued on January 30, 2026, the Kinetic ABS Issuer has $2.1 billion aggregate principal amount of revenue term notes outstanding, with no principal amount of variable funding notes or liquidity funding notes outstanding.

Current wording

Together with the $960.1 million aggregate principal amount of Kinetic ABS 2026-1 Notes issued on January 30, 2026, the Kinetic ABS Issuer has $2.1 billion aggregate principal amount of revenue term notes outstanding, with no principal amount of variable funding notes or liquidity funding notes outstanding.

Previous wording

See Note 15 to the unaudited condensed consolidated financial statements for additional information related to these third quarter 2026 debt refinancing transactions.

Current wording

See Note 5 to the unaudited condensed consolidated financial statements for additional information related to these third quarter 2026 debt transactions.

Previous wording

The following is a summary of our operating results for the three and six months ended June 30, 2026:

Current wording

The following is a summary of our operating results for the three and nine months ended September 30, 2026:

Previous wording

•We generated consolidated revenues and sales of $909.7 million and $1,897.2 million for the three and six months ended June 30, 2026, respectively, up $609.0 million and $1,302.6 million, when compared to the same periods a year ago. The acquired operations of Windstream generated total revenues and sales of $795.9 million and $1,605.2 million for the three and six months ended June 30, 2026, respectively. The Merger accounted for 87% and 85% of our total consolidated revenues and sales for the three and six months ended June 30, 2026, respectively. During the first half of 2026, we entered into an indefeasible right of use (“IRU”) agreement for dark fiber with a large hyperscaler, resulting in $85.5 million in incremental sales revenues.

Current wording

•We generated consolidated revenues and sales of $848.1 million and $2,745.3 million for the three and nine months ended September 30, 2026, respectively, an increase of $125.5 million and $1,428.0 million, respectively, when compared to the same periods a year ago. The acquired operations of Windstream generated total revenues and sales of $764.9 million and $2,370.1 million for the three and nine months ended September 30, 2026, respectively. The Merger accounted for 90% and 86% of our total consolidated revenues and sales for the three and nine months ended September 30, 2026, respectively. During the first nine months of 2026, we entered into an indefeasible right of use (“IRU”) agreement for dark fiber with a large hyperscaler, resulting in $88.2 million in incremental sales revenues.

Previous wording

•We generated consolidated operating income of $32.2 million and $143.1 million for the three and six months ended June 30, 2026, respectively, decreases of $112.8 million and $147.6 million, when compared to the same periods a year ago. The acquired operations of Windstream generated operating income of $69.7 million and $173.0 million for the three and six months ended June 30, 2026, respectively. Transaction-related and other costs were $9.6 million and $39.7 million for the three and six months ended June 30, 2026, respectively, a decrease of $3.9 million and an increase of $18.4 million from the same periods a year ago, primarily due to the Merger.

Current wording

•We reported an operating loss of $43.5 million and operating income of $99.6 million for the three and nine months ended September 30, 2026, respectively, compared to an operating loss of $42.6 million and operating income of $248.1 million for the three and nine months ended September 30, 2025, respectively. The acquired operations of Windstream generated operating income of $37.6 million and $210.6 million for the three and nine months ended September 30, 2026, respectively. Transaction-related and other costs were $19.7 million and $59.4 million for the three and nine months ended September 30, 2026, respectively, compared to $157.7 million and $179.0 million for the same periods a year ago, primarily due to the Merger.

Previous wording

•Within the Kinetic segment, service revenues were $501.9 million and $1,024.8 million and contribution margins were $228.4 million and $463.9 million for the three and six months ended June 30, 2026, respectively. We extended our fiber coverage during the quarter bringing our total to approximately 2.1 million consumer premises passed or 44% of our Kinetic footprint as of June 30, 2026. We ended the second quarter with approximately 603,000 consumer subscribers on our fiber network, representing a 29% fiber consumer subscriber penetration rate (calculated as the total number of fiber consumer subscribers divided by the total number of consumer premises passed).

Current wording

•Within the Kinetic segment, service revenues were $479.9 million and $1,504.7 million and contribution margins were $190.2 million and $654.1 million for the three and nine months ended September 30, 2026, respectively. We extended our fiber coverage during the third quarter, bringing our total to approximately 2.2 million consumer premises passed or 47% of our Kinetic footprint as of September 30, 2026. We ended the third quarter with approximately 650,000 consumer subscribers on our fiber network, representing a 29% fiber consumer subscriber penetration rate (calculated as the total number of fiber consumer subscribers divided by the total number of consumer premises passed).

Previous wording

•Our Fiber Infrastructure segment generated solid operating results highlighted by high demand from carriers, content providers and larger-scale purchasers of network capacity. For this segment, service revenues were $216.0 million and $438.2 million and contribution margins were $121.8 million and $314.5 million, for the three and six months ended June 30, 2026, respectively. The acquired wholesale business of Windstream generated service revenues of $120.2 million and $236.8 million and direct margin of $68.9 million and $191.2 million for the three and six months ended June 30, 2026, respectively.

Current wording

•Our Fiber Infrastructure segment generated service revenues of $199.2 million and $637.4 million and contribution margins of $98.4 million and $412.9 million for the three and nine months ended September 30, 2026, respectively. The acquired wholesale business of Windstream generated service revenues of $41.2 million and $355.1 million and contribution margins of $18.9 million and $242.9 million for the three and nine months ended September 30, 2026, respectively.

Previous wording

•Within the Uniti Solutions segment, we continued execution of our transformation strategy, which is shifting away from legacy TDM revenues and narrowing our focus to emphasize profitability for the valuable base of managed services customers. For this segment, service revenues were $180.9 million and $371.9 million and contribution margins were $91.8 million and $187.6 million for the three and six months ended June 30, 2026, respectively.

Current wording

•Within the Uniti Solutions segment, we continue to execute our transformation strategy by shifting away from legacy TDM revenues and focusing on profitability within our managed services customer base. For this segment, service revenues were $175.1 million and $547.0 million and contribution margins were $85.9 million and $273.5 million for the three and nine months ended September 30, 2026, respectively.

Previous wording

Due to the relative size of the acquired Windstream operations in relation to Old Uniti's operations, the Merger had a significant impact on the operating results of the Company for the three and six months ended June 30, 2026. To facilitate a discussion and analysis of our results on a comparable basis, management has supplemented its discussion of the Company's results of operations under GAAP with supplemental unaudited pro forma condensed combined financial information based on the historical results of operations of Old Uniti and Windstream as if the Merger had been consummated on January 1, 2024. See the “Supplemental Unaudited Pro Forma Condensed Combined Financial Information” section within this MD&A for further information on the assumptions used in the preparation of the financial information.

Current wording

Due to the relative size of the acquired Windstream operations in relation to Old Uniti's operations, the Merger had a significant impact on the operating results of the Company for the three and nine months ended September 30, 2026 and 2025. To facilitate a discussion and analysis of our results on a comparable basis, management has supplemented its discussion of the Company's results of operations under GAAP with supplemental unaudited pro forma condensed combined financial information based on the historical results of operations of Old Uniti and Windstream as if the Merger had been consummated on January 1, 2024. See the “Supplemental Unaudited Pro Forma Condensed Combined Financial Information” section within this MD&A for further information on the assumptions used in the preparation of the pro forma financial information.

Previous wording

(c)Amounts primarily include $6.5 million and $11.7 million of incremental interest income earned on short-term investments in the three and six months ended June 30, 2026, respectively.

Current wording

(c)Amounts primarily include $9.4 million and $21.1 million of incremental interest income earned on short-term investments in the three and nine months ended September 30, 2026, respectively.

Previous wording

(d)See corresponding section of Note 5 to the condensed consolidated financial statements for information related to the (loss) gain on extinguishment of debt recorded in each period.

Current wording

(d)See the corresponding section of Note 5 to the condensed consolidated financial statements for information related to the net loss on extinguishment of debt recorded in each period.

Previous wording

Sales revenues include sales of various types of communications equipment and products to customers including selling network equipment to contractors on a wholesale basis. Consumer product sales include home networking equipment, computers and phones. 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. Revenues from sales-type leases were $16.8 million and $88.2 million for the three and six months ended June 30, 2026, respectively. Revenues from sales-type leases were $2.7 million for the six months ended June 30, 2025. There were no revenues from sales-type leases in the second quarter of 2025.

Current wording

Sales revenues include sales of various types of communications equipment and products to customers, including selling network equipment to contractors on a wholesale basis. Consumer product sales include home networking equipment, computers and phones. 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. There were no revenues from sales-type leases in the third quarter of 2026 and revenues from sales-type leases were $88.2 million for the nine months ended September 30, 2026. Comparatively, revenues from sales-type leases were $13.6 million and $16.3 million for the three and nine months ended September 30, 2025, respectively.

Previous wording

(a)Increases were primarily attributable to customers bankruptcies filed in the second quarter of 2026.

Current wording

(b)Increase in the nine months ended September 30, 2026 was primarily attributable to customers bankruptcies filed in the second quarter of 2026.

Previous wording

Depreciation and amortization expense includes the depreciation of property, plant and equipment and the amortization of intangible assets. Substantially all of the increases in depreciation and amortization during the three and six months ended June 30, 2026 were attributable to the Merger.

Current wording

Depreciation and amortization expense includes the depreciation of property, plant and equipment and the amortization of intangible assets. Substantially all of the increases in depreciation and amortization during the three and nine months ended September 30, 2026 were attributable to the Merger.

Previous wording

The Company reported operating income of $32.2 million and $143.1 million for the three and six months ended June 30, 2026, compared to operating income of $145.0 million and $290.7 million for three and six months ended June 30, 2025. Compared to the same periods of 2025, operating income decreased $112.8 million, or 78%, and $147.6 million, or 51%, during the three and six months ended June 30, 2025, respectively. The decreases in both the three and six months ended June 30, 2026 as compared to the same periods in 2025 primarily reflected decreases in operating lease revenues of $165.4 million and $320.9 million, respectively, primarily due to the absence of leasing revenues from Windstream subsequent to August 1, 2025 resulting from the settlement of the preexisting leasing relationships upon consummation of the Merger, and the incremental increases in stock-based compensation expense. Higher transaction related and other costs related to the Merger of $18.4 million also contributed to the decrease in operating income in the six months ended June 30, 2026. The unfavorable effects of these items on operating income for the three and six months ended June 30, 2026 were partially offset by the incremental operating income of $69.7 million and $173.0 million, respectively, attributable to the acquired Windstream operations.

Current wording

The Company reported an operating loss of $43.5 million and operating income of $99.6 million for the three and nine months ended September 30, 2026, respectively, compared to an operating loss of $42.6 million and operating income of $248.1 million for the three and nine months ended September 30, 2025, respectively. Compared to the same periods of 2025, the operating loss increased $0.9 million, or 2%, and operating income decreased $148.5 million, or 60%, during the three and nine months ended September 30, 2026, respectively. The unfavorable changes in both the three and nine months ended September 30, 2026 as compared to the same periods in 2025 primarily reflected decreases in operating lease revenues of $56.9 million and $377.9 million, respectively, primarily due to the absence of leasing revenues from Windstream subsequent to August 1, 2025, resulting from the settlement of the preexisting leasing relationships upon consummation of the Merger and incremental losses on asset retirements and dispositions. The unfavorable effects of these items on operating income for the three and nine months ended September 30, 2026 compared to the same periods of 2025 were partially offset by lower transaction related and other costs related to the Merger of $138.0 million and $119.6 million, respectively. The operating loss in the three months ended September 30, 2026 also reflected a year-over-year reduction in operating income attributable to the acquired Windstream operations of $66.8 million, primarily due to declines in DSL subscriber and other revenues due to the effects of continued declines in DSL customers and lower demand for consumer voice-only services, declines in facilities-based resale access revenues due to customer churn and initiatives to bring service onto our network, higher customer churn for legacy TDM and transport services, and higher advertising costs and contract labor costs consistent with the accelerated deployment of fiber in our network. Conversely, operating income for the nine months ended September 30, 2026 included incremental operating income of $106.2 million attributable to the acquired Windstream operations.

Previous wording

As presented in the table above, interest expense, net increased $66.8 million and $125.6 million for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025. The increase reflects the incremental net increase of approximately $4.6 billion in aggregate long-term debt outstanding following the completion of the Merger and debt refinancing transactions completed in the fourth quarter of 2025 and first quarter of 2026. See Note 5 to the condensed consolidated financial statements for additional information related to our long-term debt obligations.

Current wording

As presented in the table above, interest expense, net increased $37.3 million and $162.9 million for the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025. The increases reflect the incremental net increase of approximately $2.0 billion in aggregate long-term debt outstanding following the completion of the Merger and debt refinancing transactions completed in the fourth quarter of 2025 and first and third quarters of 2026. See Note 5 to the condensed consolidated financial statements for additional information related to our long-term debt obligations.

Previous wording

For the three and six months ended June 30, 2026, we recorded income tax expense of $0.3 million and $0.9 million, respectively, resulting in an effective tax rate of (0.2)% and (0.4)%, respectively. The effective tax rate differed from the statutory rate for the three and six months ended June 30, 2026 primarily due to changes in the valuation allowance recorded against current year income and current state income tax.

Current wording

For the three and nine months ended September 30, 2026, we recorded income tax expense of $4.0 million and $4.9 million, respectively, resulting in an effective tax rate of (1.7)% and (1.1)%, respectively. The effective tax rate differed from the statutory rate for the three and nine months ended September 30, 2026 primarily due to changes in the valuation allowance recorded against current year income and current state income tax.

Previous wording

For the three and six months ended June 30, 2025, we recorded income tax benefits of $6.2 million and $10.7 million, respectively, resulting in an effective tax rate of 36.7% and 116.3%, respectively. The provision for income taxes differed from the statutory rate for the three and six months ended June 30, 2025 primarily due to the benefit of Old Uniti’s REIT status and the reversal of unrecognized tax benefits related to the expiration of a statute of limitations in a foreign jurisdiction.

Current wording

For the three and nine months ended September 30, 2025, we recorded income tax benefits of $134.5 million and $145.2 million, respectively, resulting in an effective tax rate of (9.1)% and (9.9)%, respectively. The provision for income taxes differed from the statutory rate for the three and nine months ended September 30, 2025 primarily due to the nontaxable gain on settlement of preexisting relationships and deferred tax benefits, net of changes in the valuation allowance, resulting from the Merger and related transactions, including deferred federal and state income taxes recorded due to a step-up in the tax basis of certain of the Company’s assets following the closing of the Merger, as well as changes in the valuation allowance recorded against current year income.

Previous wording

The increases in Kinetic segment revenues and sales, costs and expenses and contribution margin were solely attributable to the acquisition of Windstream.

Current wording

The Kinetic segment is comprised solely of operations acquired from Windstream in the Merger. Accordingly, the increases in Kinetic segment revenues and sales, costs and expenses and contribution margin in the three months ended September 30, 2026 compared to the same period a year ago, primarily reflect the effect of comparing three months of operating results in the 2026 period to only two months of operating results in the corresponding 2025 period. Similarly, the increases in Kinetic segment revenues and sales, costs and expenses and contribution margin in the nine months ended September 30, 2026 compared to the same period a year ago, primarily reflect the effect of comparing nine months of operating results in the 2026 period to only two months of operating results in the corresponding 2025 period.

Previous wording

A summary of Kinetic broadband customers was as follows as of June 30, 2026:

Current wording

A summary of Kinetic broadband customers was as follows:

Previous wording

(a)Decreases primarily reflect the absence of leasing revenues from Windstream subsequent to August 1, 2025, resulting from the settlement of the preexisting leasing relationships upon consummation of the Merger previously discussed, partially offset by incremental revenues of $83.8 million and $162.0 million attributable to the acquired wholesale operations of Windstream for the three and six months ended June 30, 2026, respectively.

Current wording

(a)Decreases primarily reflect the absence of leasing revenues from Windstream subsequent to August 1, 2025, resulting from the settlement of the preexisting leasing relationships upon consummation of the Merger previously discussed, partially offset by incremental revenues of $30.4 million and $243.9 million attributable to the acquired wholesale operations of Windstream for the three and nine months ended September 30, 2026, respectively.

Previous wording

(b)Increases primarily reflect one-time early contract termination penalties assessed to customers of $6.1 million and $14.3 million in the three and six months ended June 30, 2026, respectively, related to disconnecting circuits prior to the expiration of their contracts.

Current wording

(b)Decrease in the three months ended September 30, 2026 primarily reflected the effect of unfavorable adjustments to our reserves maintained for billing disputes with other carriers for their access to our networks and revenue declines attributable to contract terminations and customer bankruptcies filed in the second quarter of 2026. These decreases were offset in the nine months ended September 30, 2026 by one-time early contract termination penalties assessed to customers related to disconnecting circuits prior to the expiration of their contracts.

Previous wording

(b)Consists of intercompany charges to Kinetic and Uniti Solutions primarily for usage of network and colocation facilities owned or operated by Fiber Infrastructure.

Current wording

(c)Consists of intercompany charges to Kinetic and Uniti Solutions primarily for usage of network and colocation facilities owned or operated by Fiber Infrastructure.

Previous wording

(d)Increases were primarily attributable to the acquired wholesale operations of Windstream, which accounted for $41.6 million and $83.8 million of the increases in network access and facilities expense, $8.9 million and $17.6 million of the increases in compensation expense and $4.4 million and $10.4 million of the increases in revenue driven costs for the three and six months ended June 30, 2026, respectively.

Current wording

(e)Increases were primarily attributable to the acquired wholesale operations of Windstream, which accounted for $14.5 million and $127.1 million of the increases in network access and facilities expense, $3.1 million and $26.9 million of the increases in compensation expense for the three and nine months ended September 30, 2026, respectively.

Previous wording

(e)Increases were primarily attributable to higher contract labor costs consistent with our increased usage of outside contractors for network construction projects.

Current wording

(f)Increases were primarily attributable to higher contract labor costs consistent with our increased usage of outside contractors for network construction projects.

Previous wording

(f)Consists of intercompany charges from Kinetic for resale access services.

Current wording

(h)Consists of intercompany charges from Kinetic for resale access services.

Previous wording

The increases in Uniti Solutions segment revenues and sales, costs and expenses and contribution margin were solely attributable to the acquisition of Windstream.

Current wording

The Uniti Solutions segment is comprised solely of operations acquired from Windstream in the Merger. Accordingly, the increases in Uniti Solutions segment revenues and sales, costs and expenses and contribution margin in the three months ended September 30, 2026 compared to the same period a year ago, primarily reflect the effect of comparing three months of operating results in the 2026 period to only two months of operating results in the corresponding 2025 period. Similarly, the increases in Uniti Solutions segment revenues and sales, costs and expenses and contribution margin in the nine months ended September 30, 2026 compared to the same period a year ago, primarily reflect the effects of comparing nine months of operating results in the 2026 period to only two months of operating results in the corresponding 2025 period.

Previous wording

The supplemental unaudited pro forma combined consolidated results of operations for the three and six months ended June 30, 2025 is presented to illustrate the estimated impacts of the Merger, which was consummated on August 1, 2025, based on the historical results of operations of Old Uniti and Windstream after giving effect to the Merger and the assumptions and adjustments further described below. See Notes 1,2 and 3 to the condensed consolidated financial statements for additional information on the Merger.

Current wording

The supplemental unaudited pro forma combined consolidated results of operations for the three and nine months ended September 30, 2025 are presented to illustrate the estimated impacts of the Merger, which was consummated on August 1, 2025, based on the historical results of operations of Old Uniti and Windstream after giving effect to the Merger and the assumptions and adjustments further described below. See Notes 1,2 and 3 to the condensed consolidated financial statements for additional information on the Merger.

Previous wording

The supplemental unaudited pro forma condensed combined financial information was prepared using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the completion of the acquisition. We utilized estimated fair values at the Merger date for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed. During the measurement period, we will continue to obtain information to assist in determining the fair value of net assets acquired, which may differ materially from these preliminary estimates.

Current wording

The supplemental unaudited pro forma condensed combined financial information was prepared using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the completion of the acquisition. We utilized estimated fair values at the Merger date for the allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed.

Previous wording

The supplemental unaudited pro forma condensed combined financial information has been prepared in accordance with SEC Regulation S-X Article 11 and is not necessarily indicative of the results of operations that would have been realized had the transactions been completed as of January 1, 2024, nor are they meant to be indicative of our anticipated combined future results. In addition, the accompanying supplemental unaudited pro forma condensed combined statements of operations do not reflect any anticipated synergies, operating efficiencies, cost savings or any integration costs that may result from the Merger.

Current wording

The supplemental unaudited pro forma condensed combined financial information has been prepared in accordance with SEC Regulation S-X Article 11 and is not necessarily indicative of the results of operations that would have been realized had the transactions been completed as of January 1, 2024, nor is it intended to be indicative of our anticipated combined future results. In addition, the accompanying supplemental unaudited pro forma condensed combined statements of operations do not reflect any anticipated synergies, operating efficiencies, cost savings or any integration costs that may result from the Merger.