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Shenandoah Telecommunications Company Reports Second Quarter 2025 Results

EDINBURG, Va., July 31, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (鈥淪hentel鈥� or the 鈥淐ompany鈥�) (Nasdaq: SHEN) announced second quarter 2025 financial and operating results.

Second Quarter 2025 Highlights

• Glo Fiber Expansion Markets¹ data subscribers grew 43.1% compared to the second quarter of 2024 to approximately 76,000.

• Glo Fiber Expansion Markets revenue grew 40.5% compared to the second quarter of 2024 to $19.8 million.

• Total revenue grew 3.2% compared to the second quarter of 2024 to $88.6 million.

• Net loss from continuing operations was $9.0 million compared to $12.8 million in the second quarter of 2024.

• Adjusted EBITDA² grew 21.9% compared to the second quarter of 2024 to $28.4 million.

• Adjusted EBITDA margin expanded from 27% in the second quarter 2024 to 32% in the second quarter 2025.

鈥淥ur second quarter results reflect solid Glo Fiber growth and the successful realization of Horizon synergies that we expect will drive sustainable Adjusted EBITDA growth and margin expansion for Shentel,鈥� said President and CEO, Christopher E. French. 鈥淕lo Fiber revenue grew 40.5% over the same period a year ago with an incremental margin of 71%. We also realized the full impact of our projected $13.8 million of annual run-rate synergies from the Horizon Telcom acquisition in the second quarter.鈥�

厂丑别苍迟别濒鈥檚 second-quarter earnings conference call will be webcast at 4:30 p.m. ET on Thursday, July听31, 2025. The webcast and related materials will be available on 厂丑别苍迟别濒鈥檚 Investor Relations website at .

Second Quarter 2025 Results Compared with Second Quarter 2024

• Revenue increased by $2.8 million, or 3.2%, to $88.6 million, primarily due to Residential & SMB - Glo Fiber Expansion Markets revenue growth of $5.7 million, or 40.5%, driven by a 43.1% year-over-year growth in data revenue generating units (鈥淩GUs鈥�). This growth was partially offset by Residential & SMB - Incumbent Broadband Markets³ revenue decline of $1.4 million, or 3.2%, and Commercial Fiber revenue decline of $1.2 million, or 6.0%. Residential & SMB - Incumbent Broadband Markets revenue decreased due to lower video revenue driven by a 14.5% decline in video RGUs. Commercial Fiber revenue decreased primarily due to $0.8 million in non-cash deferred revenue adjustment for a modified carrier contract and $0.9 million in early termination fees earned in the prior year. Excluding these variances, Commercial Fiber revenue grew 2.7% over the prior period 2024.

• Cost of services decreased by $1.9 million, or 5.5%, due to decreases in network payroll, line and programming costs.

• Selling, general and administrative expense decreased by $0.5 million, or 1.6%, due to decreases in professional fees and software maintenance costs, partially offset by an increase in property taxes.

• Restructuring, integration and acquisition expense decreased by $11.1 million, or 98.2%. Restructuring, integration and acquisition expense in 2024 related primarily to costs incurred to effect the acquisition of Horizon and integration of costs during the post-acquisition period.

• Depreciation and amortization increased by $9.5 million, or 37.2%, due to the Company鈥檚 expansion of its Glo Fiber network and a $4.2 million write-off of plant under construction inventory assets which are no longer expected to be used.

• Total broadband homes passed grew 92,847 to approximately 623,000, including 379,000 Glo Fiber Expansion Market passings and 244,000 Incumbent Broadband Markets passings.

^{1 Glo Fiber Expansion Markets consists of fiber to the home (鈥淔TTH鈥�) passings in greenfield expansion markets.
2 See 鈥淣on-GAAP Financial Measures鈥� below for a reconciliation to the most comparable GAAP measure.
3 Incumbent Broadband Markets consists of Incumbent Cable Markets and Incumbent Telephone Markets with FTTH passings.}

Other Information

• Capital expenditures were $169.4 million for the six months ended June 30, 2025 compared with $150.9 million for the six months ended June 30, 2024. The $18.5 million increase in capital expenditures was primarily driven by expansion of the networks in Glo Fiber Expansion Markets and government-subsidized markets.

• The Company received $17.3 million and $7.7 million in government grant cash reimbursements during the six months ended June 30, 2025 and 2024, respectively.

• As of June听30, 2025, the Company鈥檚 total available liquidity was $266.7听尘颈濒濒颈辞苍, consisting of (i) cash and cash equivalents totaling $29.1 million; (ii) $143.0听尘颈濒濒颈辞苍 of availability under the Company鈥檚 revolving credit facility; and (iii) an aggregate of $94.6听尘颈濒濒颈辞苍 remaining reimbursements available under government grants, which reimbursements are subject to fulfilling the terms of the underlying agreements. During the six months ended June 30, 2025, the Company borrowed a total of $100.0 million under its term loans and had total indebtedness of $513.1 million as of June听30, 2025.

• The Company executed an Asset Purchase Agreement in April 2025 to acquire fiber-to-the-home assets and operations for $5 million, passing more than 1,500 homes and businesses with approximately 700 customers in Virginia.听The Company completed the acquisition on July 9, 2025.

2025 Financial Outlook

The Company initiates 2025 financial guidance.

^{1 Further clarification and explanation of this non-GAAP measure can be found in the 鈥淣on-GAAP Financial Measures鈥� 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. 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: Thursday, July听31, 2025
Time: 4:30 p.m. ET
Listen via Internet:听https://investor.shentel.com/
For Analysts, please register to dial-in at this .

A replay of the call will be available for a limited time on the Investor Relations page of the Company鈥檚 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鈥檚 services include: broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services. The Company owns an extensive regional network with over 17,700 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 鈥渂elieves,鈥� 鈥渆stimates,鈥� 鈥渆xpects,鈥� 鈥渋ntends,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥減lans,鈥� 鈥渟hould,鈥� 鈥渃ould,鈥� or 鈥渁nticipates鈥� 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鈥檚 beliefs, assumptions and current expectations and may include comments as to 厂丑别苍迟别濒鈥檚 beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside 厂丑别苍迟别濒鈥檚 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鈥檚 projections, forecasts, estimates and expectations is available in 厂丑别苍迟别濒鈥檚 filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December听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, regulatory requirements, changes in technologies, changes in competition, demand for our products and services, 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 Company
Lucas Binder
Vice President of Corporate Finance
540-984-4800
[email protected]

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

^{1 Revenue from residential and small and medium business (鈥淪MB鈥�) customers in Incumbent Broadband Markets is primarily earned through the Company鈥檚 provision of data, video and voice services over primarily hybrid fiber coaxial cable and to a lesser extent fiber to the home (鈥淔TTH鈥�) networks in incumbent markets.
2 Revenue from residential and SMB customers in Glo Fiber Expansion Markets is primarily earned through the Company鈥檚 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 SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Non-GAAP Financial Measures
Adjusted 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) income 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鈥檚 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鈥檚 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鈥檚 core operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to the Company鈥檚 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鈥檚 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.

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

^{(1) Homes and businesses are considered passed (鈥減assings鈥�) 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.听For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.
(4) Glo Fiber Expansion Markets consists of FTTH passings in greenfield expansion markets.
(5) Incumbent Broadband Markets consists of Incumbent Cable Markets and Incumbent Telephone Markets with Fiber-To-The-Home (鈥淔TTH鈥�) passings.}

Residential & SMB ARPU

^{(1) Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance.听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.