First Quarter 2026 Highlights
Glo Fiber Expansion Markets revenue grew 34.6% year over year to $24.8 million.
Total revenue increased 4.8% year over year to $92.2 million.
Net loss from operations was $15.8 million compared to $9.1 million in the first quarter of 2025.
Adjusted EBITDA1 grew 15.0% year over year to $31.7 million.
"We have excellent momentum in our fiber businesses, with approximately 6,000 Glo Fiber net additions and 4.7% commercial fiber revenue growth in the first quarter, driving strong Adjusted EBITDA growth of 15%," said Ed McKay, President and CEO. "We remain on track to complete our Glo Fiber expansion in 2026 and achieve positive free cash flow in 2027."
Shentel's first-quarter earnings conference call will be webcast at 8:30 a.m. ET on Friday, May 1, 2026. The webcast and related materials will be available on Shentel's Investor Relations website at https://investor.shentel.com/.
First Quarter 2026 Results Compared with First Quarter 2025
Residential & SMB - Glo Fiber Expansion Markets2 revenue (26.9% of total) increased $6.4 million, or 34.6%, primarily due to a 33.7% increase in data revenue generating units ("RGUs").
Residential & SMB - Incumbent Broadband Markets3 revenue (44.6% of total) decreased $2.2 million, or 5.1%, primarily due to a 14.6% decline in video RGUs and a 1.6% decline in data average revenue per user ("ARPU").
Commercial Fiber revenue (22.3% of total) increased $0.9 million, or 4.7%, primarily due to an increase in recurring revenue resulting from additional circuit services sold to existing customers.
RLEC & Other revenue (6.2% of total) decreased $0.8 million, or 13.0%, primarily due to a 28.0% decrease in Digital Subscriber Line RGUs and $0.3 million decrease in government support revenue.
Cost of services decreased by $1.2 million, or 3.7%, primarily due to government grant reimbursements of certain indirect operating costs and a decrease in video programming costs driven by declining video RGUs.
Selling, general and administrative expense increased by $2.4 million, or 7.7%. The increase was primarily due to an increase in advertising costs and payroll costs driven by expansion of the Glo Fiber homes passed and higher stock compensation.
Restructuring, integration and acquisition expense increased by $1.9 million, or 378.4%. Restructuring, integration and acquisition expense in 2026 related primarily to accrued severance costs associated with the previously announced reduction in force.
Depreciation and amortization increased by $5.5 million, or 18.7%, primarily due to the Company's expansion of its Glo Fiber network and $2.8 million in write-offs primarily related to project costs under construction for markets that construction was cancelled due to higher costs to build.
Other Information
Capital expenditures were $75.8 million for the three months ended March 31, 2026 compared with $83.2 million for the three months ended March 31, 2025. The $7.4 million decrease in capital expenditures was primarily driven by a slow down in capital projects as Shentel approaches the completion of its Glo Fiber market expansion project.
The Company received $11.5 million and $6.9 million in government grant cash receipts during the three months ended March 31, 2026 and 2025, respectively.
As of March 31, 2026, the Company's total available liquidity was $194.5 million, consisting of (i) unrestricted cash and cash equivalents totaling $43.8 million; (ii) restricted cash as required by the ABS Indenture totaling $27.3 million (iii) $67.8 million of availability under Shentel Broadband's Revolving Credit Facility; (iv) $17.8 million under Shentel Issuer's Variable Funding Note ("VFN"); and (v) an aggregate of $37.8 million remaining reimbursements available under government grants, subject to fulfilling the terms of the underlying agreements. In addition, the Company has $117.2 million of VFN commitments that are not available to draw as of March 31, 2026. The available capacity of the VFN will increase based on the secured fiber network revenue growth from the ABS Entities multiplied by (i) a margin as defined in the ABS Indenture and (ii) 6.25x multiple.
On February 23, 2026, the Company announced a reduction in force of approximately 10% of its employees to align the business with the end of the Glo Fiber construction phase that is expected to be substantially complete by end of 2026. Employee departure dates will be staggered with the largest impact in the fourth quarter of 2026. The Company expects to save approximately $12.3 million annually beginning in 2027 with approximately half of the savings impacting operating expenses and half impacting capitalized labor that is included in capital expenditures. The Company expects to incur approximately $3.1 million in restructuring costs to achieve these savings. During the three months ended March 31, 2026, Shentel incurred $2.1 million in severance expense, included in restructuring, integration and acquisition expense in the condensed consolidated statements of operations. No severance payments were made during this period.
2026 Financial Outlook
The Company reiterates its 2026 financial guidance.
Year Ending December 31, 2026
Year Ended December 31, 2025
% Change 2025 to 2026 Midpoint
(dollars in millions)
Guidance Range
Total Revenue
$370 - $377
$
358
4.4
%
Adjusted EBITDA1
$131 - $136
$
119
12.1
%
Capital Expenditures, net of government grant reimbursements
$220 - $250
$
296
(20.7)%
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 2026 financial guidance presented above does not reflect any assumptions regarding the potential impacts of ongoing global geopolitical conflicts, 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: Friday, May 1, 2026Time: 8:30 a.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 19,400 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, 2025 and our Quarterly Reports on Form 10-Q. Those factors may include, among others, changes in overall economic conditions including ongoing geopolitical conflicts, 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 Finance540-984-4800[email protected]
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months EndedMarch 31,
2026
2025
Residential & SMB - Incumbent Broadband Markets1
$
41,143
$
43,359
Residential & SMB - Glo Fiber Expansion Markets2
24,828
18,444
Commercial Fiber
20,542
19,612
RLEC & Other
5,640
6,483
Service revenue and other
92,153
87,898
Operating expenses:
Cost of services, exclusive of depreciation and amortization
31,824
33,030
Selling, general and administrative
33,387
30,992
Restructuring, integration and acquisition
2,440
510
Depreciation and amortization
34,971
29,458
Total operating expenses
102,622
93,990
Operating loss
(10,469
)
(6,092
)
Other (expense) income:
Interest expense
(9,435
)
(4,892
)
Other income, net
45
733
Loss before income taxes
(19,859
)
(10,251
)
Income tax benefit
(4,108
)
(1,119
)
Net loss
(15,751
)
(9,132
)
Dividends on redeemable noncontrolling interest
1,577
1,472
Net loss attributable to common shareholders
$
(17,328
)
$
(10,604
)
Net loss per share attributable to common shareholders, basic and diluted:
Net loss per share
$
(0.31
)
$
(0.19
)
Weighted average shares outstanding
55,554
54,959
_______________________________________________________
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.
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.
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31,2026
December 31,2025
ASSETS
Current assets:
Cash and cash ...
