Searchlight Capital Exits Uniti Group Stake, According to Recent SEC Filing
Key Points
Searchlight Capital Partners, L.P sold 2,273,504 Uniti Group shares; estimated trade size $17.82 million based on Q1 2026 average price
Quarter-end position value fell by $15.94 million, a change reflecting both trading and price movement
Transaction value represented a 16.29% shift in 13F reportable assets under management
Fund now holds zero Uniti Group shares
The position previously accounted for 14.7% of the fund’s AUM as of the prior quarter
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What happened
According to a Securities and Exchange Commission (SEC) filing dated May 15, 2026, Searchlight Capital Partners, L.P. reported selling its entire holding of 2,273,504 Uniti Group (NASDAQ:UNIT) shares in the first quarter. The stake’s quarter-end value declined by $15.94 million, reflecting both trade activity and price fluctuation.
What else to know
Searchlight Capital Partners, L.P. sold out of Uniti Group; the position now represents 0% of 13F reportable assets under management
Top holdings after the filing:
- LILAK: $108.89 million (99.5% of AUM)
- NASDAQ: LILA: $527,550 (0.5% of AUM)
As of May 14, 2026, Uniti Group shares were priced at $11.25, up 42.6% over the past year, outperforming the S&P 500 by 15.29 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.93 billion |
| Net income (TTM) | $1.15 billion |
| Market capitalization | $2.59 billion |
| Price (as of market close May 14, 2026) | $11.25 |
Company snapshot
Uniti Group Inc. is a fiber broadband and communications infrastructure company formed through the Windstream combination, with businesses spanning Kinetic consumer fiber, Fiber Infrastructure, and Uniti Solutions.
Uniti Group Inc. provides communications infrastructure assets, including 6.7 million fiber strand miles and wireless solutions, to the U.S. telecom sector. The company leverages an extensive asset base to provide connectivity for telecom and wireless operators.
Uniti Group Inc. serves telecommunications carriers, wireless operators, and network service providers seeking scalable, mission-critical connectivity solutions.
What this transaction means for investors
Uniti Group’s merger with Windstream transformed Uniti into a fiber broadband operator facing two main challenges: expanding Kinetic’s consumer network and monetizing wholesale fiber demand. This marks a shift from the previous fiber REIT model, which emphasized leased communications assets and REIT-style cash-flow metrics. Following the merger, Uniti is no longer a REIT and will not report FFO or AFFO. The stock should now be evaluated based on broadband growth, fiber economics, capital spending, and debt service.
The first quarter demonstrated strong customer growth, but also highlighted the costs of network expansion. Uniti reported record Kinetic consumer fiber gross additions and ongoing Fiber Infrastructure bookings, generating $441.6 million in adjusted EBITDA. However, the company posted a net loss due to high interest expense, depreciation, and significant capital requirements for the fiber buildout. Investors must assess whether this growth can ultimately support the network’s costs and strengthen the balance sheet.
The key question for investors is whether Uniti can translate fiber expansion into improved financial flexibility. Kinetic must convert new fiber passings into paying broadband customers, while Fiber Infrastructure needs to generate sustainable revenue from carrier, enterprise, and hyperscaler demand. Management’s goal to pass 3.5 million homes with fiber by the end of 2029 provides a clear growth target, but the stock’s future depends on whether this growth can close the gap between strong adjusted EBITDA and ongoing net losses.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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