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Shenandoah Telecommunications Company Reports Third Quarter 2025 Results

1. Glo Fiber revenue increased 41.1% to $21.3 million amid rising subscribers. 2. Overall revenue grew 2.5% to $89.8 million, signaling growth. 3. Net loss from continuing operations widened to $9.4 million. 4. Adjusted EBITDA rose by 11.8% to $29.7 million with margin expansion to 33%. 5. Capital expenditures increased to $251.5 million, supporting network expansion.

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Why Bullish?

The substantial growth in Glo Fiber and improved adjusted EBITDA indicate operational strength, which historically leads to positive market reactions. For instance, similar growth post-Horizon acquisition previously boosted SHEN's stock value.

How important is it?

The article contains significant financial performance data directly relating to SHEN, indicating the company is on a growth trajectory.

Why Short Term?

The immediate financial results will likely influence investor sentiment quickly, as similar prior announcements had short-term favorable impacts on share prices.

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VZTCMCSALUMN
EDINBURG, Va., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel” or the “Company”) (Nasdaq: SHEN) announced third quarter 2025 financial and operating results. Third Quarter 2025 Highlights Glo Fiber Expansion Markets revenue grew 41.1% compared to the third quarter of 2024 to $21.3 million due to a 41.3% increase in average subscribers.Total revenue grew 2.5% compared to the third quarter of 2024 to $89.8 million.Net loss from continuing operations was $9.4 million compared to $5.3 million in the third quarter of 2024.Adjusted EBITDA1 grew 11.8% compared to the third quarter of 2024 to $29.7 million.Adjusted EBITDA margin expanded from 30% in the third quarter 2024 to 33% in the third quarter 2025. “We are pleased to see our business scaling with Adjusted EBITDA margin expansion from 27% in the second quarter of 2024, following our Horizon acquisition, to 33% in the third quarter of 2025,” said President and CEO, Ed McKay. “We also delivered another strong quarter for Glo Fiber with revenue and subscribers growing 41% over the same period in 2024 and passings increasing 21,000 sequentially from the second quarter of 2025 to over 400,000.” Shentel’s third-quarter earnings conference call will be webcast at 4:30 p.m. ET on Wednesday, October 29, 2025. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/.  Third Quarter 2025 Results Compared with Third Quarter 2024 Residential & SMB - Glo Fiber Expansion Markets2 revenue grew $6.2 million, or 41.1%, driven by a 41.3% year-over-year growth in average data revenue generating units (“RGUs”). The Company constructed 20,000 Glo Fiber passings and added approximately 5,800 new Glo Fiber customers in the third quarter. In addition, the Company added approximately 1,500 passings and approximately 600 residential and 100 commercial customers as part of a $5 million acquisition of fiber to the home assets and operations that was completed on July 9, 2025. Total Glo Fiber passings and subscribers were 400,000 and approximately 83,000 as of September 30, 2025. Residential & SMB - Incumbent Broadband Markets3 passings grew 4,000 in the third quarter to a total of 248,000. The Company has now constructed over 19,600 new passings, or 89% of the planned passings in previously unserved areas, with funding partially provided by government grants. Broadband data RGUs grew slightly in the third quarter, driven by churn improvement and strong gross adds from the recently constructed new passings. Incumbent Broadband Markets revenue declined $1.6 million, primarily due to a 14.9% decline in video RGUs and to a lesser extent a 1.3% decline in data ARPU. Commercial Fiber revenue declined $1.1 million, primarily due to $0.9 million in non-cash deferred revenue adjustments for a carrier customer and $0.5 million in early termination fees earned in the prior year. Excluding these variances, Commercial Fiber revenue grew 2.3% over the prior period 2024. RLEC & Other revenue declined $1.3 million, primarily due to lower governmental support revenue and a 21.1% decline in DSL RGUs as customers migrated to recently constructed Shentel broadband data services. Cost of services decreased by $2.0 million, or 5.9%, primarily due to decreases in network payroll, rent and line costs as the Company realized synergy savings from the Horizon integration. Selling, general and administrative expense increased by $1.8 million, or 6.4%, primarily due to increases in advertising, stock-based compensation and property tax costs. Restructuring, integration and acquisition expense decreased by $1.4 million, or 82.5%. Restructuring, integration and acquisition expense in 2024 related primarily to costs incurred to effect the acquisition and integrate Horizon operations. Depreciation and amortization increased by $6.8 million, or 24.6%, primarily due to $3.1 million of new depreciation associated with assets placed in service for the Company’s Glo Fiber network expansion and a $3.2 million write-off of inventory assets which are no longer expected to be used. ________________________________________ 1 See “Non-GAAP Financial Measures” below for a reconciliation to the most comparable GAAP measure.2 Glo Fiber Expansion Markets consists of fiber to the home (“FTTH”) passings in greenfield expansion markets.3 Incumbent Broadband Markets consists of incumbent cable markets and incumbent telephone markets with FTTH passings. Other Information Capital expenditures were $251.5 million for the nine months ended September 30, 2025 compared with $226.5 million for the nine months ended September 30, 2024. The $25.1 million increase in capital expenditures was primarily driven by government-subsidized network expansion projects in previously unserved areas of Incumbent Broadband Markets. The Company received $39.9 million and $11.1 million in government grant cash receipts during the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, the Company’s total available liquidity was $212.6 million, consisting of (i) cash and cash equivalents totaling $22.6 million; (ii) $117.9 million of availability under the Company’s revolving credit facility; and (iii) an aggregate of $72.1 million remaining reimbursements available under government grants, with reimbursements subject to fulfilling the terms of the underlying agreements. During the nine months ended September 30, 2025, the Company borrowed a total of $125.0 million under its term loans and revolver and had total indebtedness of $535.4 million as of September 30, 2025. 2025 Financial Outlook The Company reiterates its 2025 financial guidance.  Year Ending December 31, 2025Year Ended December 31, 2024% Change 2024 to 2025 Midpoint Guidance Range(dollars in millions)LowHighTotal Revenue$352$357$3288.1%Adjusted EBITDA1$113$118$9521.6%Capital Expenditures, net of government grant reimbursements$260$290$300(8.3)% 1 Further clarification and explanation of this non-GAAP measure can be found in the “Non-GAAP Financial Measures” section of this release below. The 2025 financial guidance presented above does not reflect any assumptions regarding the potential impacts of the evolving tariff environment and disruption and uncertainty caused by a U.S. government shutdown, including uncertainty regarding the timing of federal funding and grant payments. The Company does not provide a reconciliation for Adjusted EBITDA forecasts (which represents a forecast of a non-GAAP financial measure) because it cannot predict the special items that could arise without unreasonable effort. Earnings Call Webcast Date: Wednesday, October 29, 2025Time: 4:30 p.m. ETListen via Internet: https://investor.shentel.com/For Analysts, please register to dial-in at this link. A replay of the call will be available for a limited time on the Investor Relations page of the Company’s website. About Shenandoah Telecommunications Shenandoah Telecommunications Company (Shentel) provides broadband services through its high speed, state-of-the-art fiber optic and cable networks to residential and commercial customers in eight contiguous states in the eastern United States. The Company’s services include: broadband internet, video, voice, high-speed Ethernet, dedicated internet access, dark fiber leasing, and managed network services. The Company owns an extensive regional network with over 18,000 route miles of fiber. For more information, please visit www.shentel.com. This release contains forward-looking statements and projections about Shentel regarding, among other things, its business strategy, its prospects and its financial position. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “intends,” “may,” “will,” “plans,” “should,” “could,” or “anticipates” or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties. The forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to Shentel’s beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors. A discussion of other factors that may cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Reports on Form 10-Q. Those factors may include, among others, changes in overall economic conditions including rising inflation, changes in tariffs, new or changing regulatory requirements, disruption and uncertainty caused by a U.S. government shutdown, including uncertainty regarding the timing of federal funding and grant payments, changes in technologies, changes in competition, changing demand for our products and services, our ability to execute our business strategies, availability of labor resources and capital, natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, and other conditions. The forward-looking statements included are made only as of the date of the statement. Shentel undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, except as required by law. CONTACTS: Shenandoah Telecommunications CompanyLucas BinderVice President of Corporate Finance540-984-4800Lucas.Binder@emp.shentel.com SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)Three Months EndedSeptember 30, Nine Months EndedSeptember 30,  2025   2024   2025   2024 Residential & SMB - Incumbent Broadband Markets1, 3$41,935  $43,499  $128,131  $131,546 Residential & SMB - Glo Fiber Expansion Markets2 21,305   15,100   59,545   41,311 Commercial Fiber3 19,957   21,071   59,052   51,776 RLEC & Other 6,599   7,929   19,534   18,013 Service revenue and other 89,796   87,599   266,262   242,646 Operating expenses:       Cost of services exclusive of depreciation and amortization 32,384   34,415   98,038   94,941 Selling, general and administrative 29,791   28,006   90,526   86,223 Restructuring, integration and acquisition 293   1,673   1,009   13,616 Depreciation and amortization 34,492   27,681   99,053   70,703 Total operating expenses 96,960   91,775   288,626   265,483 Operating loss (7,164)  (4,176)  (22,364)  (22,837)Other (expense) income:       Interest expense (6,789)  (3,668)  (17,684)  (11,740)Other income, net 1,589   998   5,337   4,642 Loss from continuing operations before income taxes (12,364)  (6,846)  (34,711)  (29,935)Income tax benefit (2,974)  (1,542)  (7,141)  (7,768)Loss from continuing operations (9,390)  (5,304)  (27,570)  (22,167)Discontinued operations:       Income from discontinued operations, net of tax —   41   —   1,923 Gain on the sale of discontinued operations, net of tax —   —   —   216,805 Total income from discontinued operations, net of tax —   41   —   218,728 Net (loss) income (9,390)  (5,263)  (27,570)  196,561 Dividends on redeemable noncontrolling interest 1,523   1,638   4,492   1,638 Net (loss) income attributable to common shareholders$(10,913) $(6,901) $(32,062) $194,923         Net (loss) income per share attributable to common shareholders, basic and diluted:       Loss from continuing operations$(0.20) $(0.13) $(0.58) $(0.45)Income from discontinued operations, net of tax —   —   —   4.10 Net (loss) income per share$(0.20) $(0.13) $(0.58) $3.65         Weighted average shares outstanding 55,150   54,781   55,083   53,370  _______________________________________________________ 1.Revenue from residential and small and medium business (“SMB”) customers in Incumbent Broadband Markets is primarily earned through the Company’s provision of data, video and voice services over primarily hybrid fiber coaxial cable and to a lesser extent FTTH networks in incumbent markets.2.Revenue from residential and SMB customers in Glo Fiber Expansion Markets is primarily earned through the Company’s provision of data, video and voice services over FTTH networks in new greenfield expansion markets.3.Shentel updated the presentation of certain Residential & SMB - Incumbent Broadband Markets and Commercial Fiber revenues in the prior year to conform with changes in how management currently views these lines of business.   SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)September 30,2025 December 31,2024ASSETS   Current assets:   Cash and cash equivalents$22,621 $46,272Accounts receivable, net of allowance for credit losses of $1,241 and $1,156, respectively 25,309  29,722Income taxes receivable 3,308  1,244Prepaid expenses and other 16,754  17,282Total current assets 67,992  94,520Investments 16,344  15,709Property, plant and equipment, net 1,571,726  1,438,538Goodwill and intangible assets, net 157,386  157,723Operating lease right-of-use assets 18,948  19,548Deferred charges and other assets 18,028  14,235Total assets$1,850,424 $1,740,273LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY   Current liabilities:   Current maturities of long-term debt, net of unamortized loan fees$10,084 $9,204Accounts payable 76,870  57,820Advanced billings and customer deposits 16,811  16,104Accrued compensation 14,838  16,283Current operating lease liabilities 2,851  3,060Accrued liabilities and other 13,947  12,100Total current liabilities 135,401  114,571Long-term debt, less current maturities, net of unamortized loan fees 524,019  407,675Other long-term liabilities:   Deferred income taxes 160,129  167,716Benefit plan obligations 5,122  4,945Non-current operating lease liabilities 9,890  10,794Other liabilities 36,229  33,525Total other long-term liabilities 211,370  216,980Commitments and contingencies   Temporary equity:   Redeemable noncontrolling interest 86,956  82,464Shareholders’ equity:   Common stock, no par value, authorized 96,000; 54,898 and 54,605 issued and outstanding at September 30, 2025 and December 31, 2024, respectively —  —Additional paid in capital 155,390  147,733Retained earnings 736,935  768,997Accumulated other comprehensive income, net of taxes 353  1,853Total shareholders’ equity 892,678  918,583Total liabilities, temporary equity and shareholders’ equity$1,850,424 $1,740,273       SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS    (in thousands)Nine Months EndedSeptember 30,   2025   2024  Cash flows from operating activities:    Net (loss) income$(27,570) $196,561  Income from discontinued operations, net of tax —   218,728  Loss from continuing operations (27,570)  (22,167) Adjustments to reconcile net (loss) income to net cash provided by operating activities:    Depreciation and amortization 97,611   69,632  Amortization of intangible assets 1,442   1,071  Stock-based compensation expense, net of amount capitalized 7,970   7,620  Deferred income taxes (7,103)  (7,768) Provision for credit losses 1,481   1,748  Other, net (97)  903  Changes in assets and liabilities, net of effects of business acquisition:    Accounts receivable 2,234   (630) Current income taxes 187   1,154  Operating lease assets and liabilities, net (513)  (123) Other assets (3,176)  (3,045) Accounts payable 1,462   (583) Other deferrals and accruals 531   564  Net cash provided by operating activities - continuing operations 74,459   48,376  Net cash used in operating activities - discontinued operations (2,251)  (6,405) Net cash provided by operating activities 72,208   41,971       Cash flows from investing activities:    Capital expenditures (251,546)  (226,452) Government grants received 39,884   11,094  Proceeds from escrow related to business acquisition 6,471   —  Cash disbursed for acquisitions, net of cash acquired (5,000)  (347,411) Proceeds from sale of assets and other 276   1,846  Net cash used in investing activities - continuing operations (209,915)  (560,923) Net cash provided by investing activities - discontinued operations —   305,827  Net cash used in investing activities (209,915)  (255,096)      Cash flows from financing activities:    Proceeds from credit facility borrowings 125,000   50,000  Principal payments on long-term debt (7,607)  (4,843) Payments for debt issuance and amendment costs (951)  (4,570) Proceeds from the issuance of redeemable noncontrolling interest, net of financing fees paid —   79,380  Taxes paid for equity award issuances (1,035)  (1,671) Payments for financing arrangements and other (1,351)  (1,327) Net cash provided by financing activities 114,056   116,969  Net decrease in cash and cash equivalents (23,651)  (96,156) Cash and cash equivalents, beginning of period 46,272   139,255  Cash and cash equivalents, end of period$22,621  $43,099       Supplemental Disclosures of Cash Flow Information    Interest paid, net of amounts capitalized$(16,272) $(8,935) Income taxes paid$1,955  $(6,657)           Non-GAAP Financial MeasuresAdjusted EBITDA and Adjusted EBITDA Margin The Company defines Adjusted EBITDA as (loss) income from continuing operations calculated in accordance with GAAP, adjusted for the impact of depreciation and amortization, impairment expense, other income (expense), net, interest income, interest expense, income tax expense (benefit), stock compensation expense, transaction costs related to acquisition and disposition events (including professional advisory fees, integration costs, and related compensatory matters), restructuring expense, tax on equity award vesting and exercise events, and other non-comparable items. A reconciliation of Loss from continuing operations, which is the most directly comparable GAAP financial measure, to Adjusted EBITDA is provided below herein. Adjusted EBITDA margin is the Company’s calculation of Adjusted EBITDA, divided by revenue calculated in accordance with GAAP. The Company uses Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of performance to evaluate operating effectiveness and assess its ability to increase revenues while controlling expense growth and the scalability of the Company’s business growth strategy. Adjusted EBITDA is also a significant performance measure used by the Company in its incentive compensation programs. The Company believes that the exclusion of the expense and income items eliminated in calculating Adjusted EBITDA and Adjusted EBITDA margin provides management and investors a useful measure for period-to-period comparisons of the Company’s core operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to the Company’s ongoing operations. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating the Company’s operating results. However, use of Adjusted EBITDA and Adjusted EBITDA margin as analytical tools has limitations, and investors and others should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies may calculate Adjusted EBITDA and Adjusted EBITDA margin or similarly titled measures differently, which may reduce their usefulness as comparative measures.  Three Months EndedSeptember 30, Nine Months EndedSeptember 30,(in thousands) 2025   2024   2025   2024 Loss from continuing operations$(9,390) $(5,304) $(27,570) $(22,167)Depreciation and amortization 34,492   27,681   99,053   70,703 Interest expense 6,789   3,668   17,684   11,740 Other income, net (1,589)  (998)  (5,337)  (4,642)Income tax benefit (2,974)  (1,542)  (7,141)  (7,768)Stock-based compensation 2,066   1,384   7,970   7,620 Restructuring, integration and acquisition 293   1,673   1,009   13,616 Adjusted EBITDA$29,687  $26,562  $85,668  $69,102         Adjusted EBITDA margin 33%  30%  32%  28%                 Supplemental Information In the below table, Shentel updated the presentation of certain Residential & SMB - Incumbent Broadband Markets and Commercial Fiber revenues in the prior year to conform with changes in how management views these lines of business. Operating Statistics  Three Months EndedSeptember 30, 2025  2024 Homes and businesses passed (1)   Incumbent Broadband Markets248,002  234,366 Glo Fiber Expansion Markets400,323  319,511 Total homes and businesses passed648,325  553,877     Residential & Small and Medium Business ("SMB") Revenue Generating Units ("RGUs"):   Incumbent Broadband Markets111,900  111,320 Glo Fiber Expansion Markets82,662  59,266 Broadband Data194,562  170,586 Video36,601  41,192 Voice26,477  25,150 Total Residential & SMB RGUs (excludes RLEC)257,640  236,928     Residential & SMB Penetration (2)   Incumbent Broadband Markets45.1% 47.5%Glo Fiber Expansion Markets20.6% 18.5%Broadband Data30.0% 30.8%Video5.6% 7.4%Voice4.4% 4.7%    Fiber route miles18,077  16,357 Total fiber miles (3)1,957,272  1,825,122  ______________________________________________________ (1)Homes and businesses are considered passed (“passings”) if we can connect them to our network without further extending the distribution system. Passings is an estimate based upon the best available information. Passings will vary among video, broadband data and voice services.(2)Penetration is calculated by dividing the number of users by the number of passings or available homes, as appropriate.(3)Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.    Residential & SMB ARPU        Three Months EndedSeptember 30, Nine Months EndedSeptember 30,  2025  2024  2025  2024Residential & SMB Revenue:       Incumbent Broadband Markets 27,635  27,834  83,360  83,276Glo Fiber Expansion Markets 18,325  12,980  51,009  35,014Broadband Data$45,960 $40,814 $134,369 $118,290Video 13,947  14,495  42,901  43,768Voice 2,573  2,594  7,689  7,706Other 760  696  2,717  3,093Total Residential & SMB Revenue$63,240 $58,599 $187,676 $172,857        Average RGUs:       Incumbent Broadband Markets 111,865  111,224  111,724  110,722Glo Fiber Expansion Markets 79,530  56,290  73,637  50,447Broadband Data 191,395  167,514  185,361  161,169Video 37,080  41,630  38,137  41,789Voice 26,292  24,985  26,077  24,768        ARPU: (1)       Incumbent Broadband Markets$82.34 $83.42 $82.90 $83.57Glo Fiber Expansion Markets$76.81 $76.87 $76.97 $77.12Broadband Data$80.03 $81.22 $80.55 $81.55Video$125.38 $116.07 $124.99 $116.37Voice$32.62 $34.61 $32.76 $34.57 ______________________________________________________ (1)Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.   Shentel updated the presentation of certain revenues in the prior year to conform with changes in how management views these lines of business. This reclassification also resulted in updated ARPU values for the prior period.

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