Shenandoah Telecommunications Company Reports Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
Shenandoah Telecommunications (Nasdaq: SHEN) reported Q4 and full‑year 2025 results, highlighting strong fiber growth, margin expansion and a major ABS refinancing.
Key figures: 2025 total revenue $357.9M, Adjusted EBITDA $119.1M, Glo Fiber Expansion Markets revenue +42.7% YOY, ABS Notes issued $567.4M, and 2026 guidance: revenue $370–$377M; Adjusted EBITDA $131–$136M.
Positive
- Glo Fiber revenue +42.7% year‑over‑year to $82.6M
- Adjusted EBITDA +26.0% to $119.1M
- Adjusted EBITDA margin expanded 450 bps to 33.3%
- Issued ABS financing of $567.4M to fund fiber build
- 2026 Adjusted EBITDA guidance midpoint +12.1% vs 2025
Negative
- Net loss from continuing operations widened to $32.9M in 2025
- Interest expense increased ~59.6% year‑over‑year
- Capital expenditures rose to $358.9M (+12.5%) in 2025
- Headcount reduction ~10% with $3.1M restructuring costs
Market Reaction – SHEN
Following this news, SHEN has gained 4.87%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 5 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $14.21. This price movement has added approximately $36M to the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
SHEN was up 0.97% while peers were mixed: ATUS up 1.7%, but CABO, SIFY, LILA, and LILAK down between 1.6% and 3.79%, pointing to a stock-specific reaction to the earnings release rather than a broad telecom move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 05 | Earnings call notice | Neutral | +0.5% | Scheduled Q4 and full-year 2025 earnings call and webcast details. |
| Oct 29 | Q3 2025 earnings | Negative | -5.2% | Q3 2025 results with revenue and EBITDA growth but wider net loss. |
| Oct 20 | Q3 call notice | Neutral | +0.0% | Announcement of timing and access details for Q3 2025 call. |
| Jul 31 | Q2 2025 earnings | Negative | -9.8% | Q2 2025 mixed results with higher fiber growth but continuing losses. |
| Jul 17 | Q2 call notice | Neutral | +0.0% | Scheduling and webcast information for Q2 2025 earnings call. |
Earnings-related headlines have averaged a -2.9% move, with fundamental result releases often seeing negative follow-through despite Glo Fiber growth and margin expansion.
Recent SHEN news has centered on earnings and operational updates. Prior earnings releases in Q2 and Q3 2025 highlighted strong Glo Fiber Expansion Markets growth and expanding Adjusted EBITDA margins alongside ongoing net losses. Call-announcement headlines in July 2025, October 2025, and February 2026 produced minimal price impact. Today’s full-year 2025 results extend themes of fiber-led revenue growth, higher depreciation and interest from expansion, and continued focus on liquidity and leverage.
Historical Comparison
Past earnings-related headlines for SHEN averaged a -2.9% move, often pairing strong Glo Fiber and EBITDA growth with persistent net losses and higher leverage, similar to this update’s mix of expansion and refinancing.
Across recent earnings, SHEN has repeatedly emphasized Glo Fiber Expansion Markets growth and Adjusted EBITDA margin improvement, while net losses, higher depreciation, and rising interest from fiber build-out and acquisitions have remained central themes.
Market Pulse Summary
This announcement details SHEN’s 2025 results, highlighting total revenue of $357.9 million, Adjusted EBITDA of $119.1 million, and ongoing net losses of $32.9 million as fiber investments scale. Glo Fiber Expansion Markets posted 42.7% growth, while capital expenditures reached $358.9 million, partly offset by grant reimbursements. The new $567.4 million ABS financing and $234.9 million liquidity frame leverage and funding capacity. Investors can watch 2026 guidance for revenue, EBITDA, and lower net capex, plus delivery of planned cost savings from the ~10% workforce reduction.
Key Terms
adjusted ebitda financial
asset-backed securitization financial
basis points financial
revolving credit facility financial
restricted cash financial
variable funding note facility financial
liquidity funding note facility financial
ftth technical
AI-generated analysis. Not financial advice.
EDINBURG, Va., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel”) (Nasdaq: SHEN) announced fourth quarter and full year 2025 financial and operating results.
Fourth Quarter 2025 Highlights
- Glo Fiber Expansion Markets revenue grew
39.0% over the fourth quarter of 2024 to$23.0 million . - Total revenue grew
7.2% to$91.6 million . - Net loss from continuing operations was
$5.4 million compared to$6.2 million in the fourth quarter of 2024. - Adjusted EBITDA1 grew
31.3% to$33.5 million . - Adjusted EBITDA margin expanded from
29.8% to36.5% , an increase of 670 basis points. - Closed an inaugural offering of
$567.4 million aggregate principal amount of secured fiber network revenue term notes.
2025 Highlights
- Glo Fiber Expansion Markets revenue grew
42.7% year over year to$82.6 million . - Total revenue grew
9.1% to$357.9 million . - Net loss from continuing operations was
$32.9 million compared to$28.4 million in 2024. - Adjusted EBITDA2 grew
26.0% to$119.1 million . - Adjusted EBITDA margin expanded from
28.8% to33.3% , an increase of 450 basis points.
“We finished 2025 with strong momentum, executing on our growth strategy, strengthening the balance sheet, and enhancing our high‑value fiber businesses,” said Ed McKay, President and Chief Executive Officer. “Our Asset-Backed Securitization refinancing will reduce annual cash interest expense by over
Shentel’s fourth quarter earnings conference call will be webcast at 8:30 a.m. ET on Thursday, February 26, 2026. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/. For Analysts, please register to dial-in at this link.
Fourth Quarter 2025 Results Compared with Fourth Quarter 2024 Results
- Residential & SMB - Glo Fiber Expansion Markets revenue increased
$6.5 million , or39.0% , primarily due to36.9% growth in data revenue generating units (“RGUs”).
- Residential & SMB - Incumbent Broadband Markets revenue decreased
$1.7 million , or4.0% , primarily due to lower video and data revenues from a14.8% decline in video RGUs and a2.4% decline in data average revenue per unit (“ARPU”). Broadband data subscribers grew0.6% .
- Commercial Fiber revenue increased
$2.0 million or,10.8% , primarily due to an unfavorable deferred revenue adjustment in the fourth quarter 2024.
- RLEC & Other revenue decreased
$0.5 million , or7.4% , primarily due to lower data service line (“DSL”) revenue from a24.4% decline of DSL RGUs, partially due to customers migrating to our broadband data service in the recently constructed passings supported by government grants.
- Cost of services decreased
$1.1 million , or3.3% , primarily due to decreases in network payroll due to synergy savings realized from the Horizon acquisition and higher capitalized labor from a strong quarter of fiber construction.
- Selling, general and administrative expense decreased
$1.3 million , or4.5% , primarily due to decreases in general and administrative payroll due to synergy savings realized from the Horizon acquisition, lower bad debt and stock compensation expense, partially offset by increases in operating taxes.
- Restructuring, integration and acquisition expense decreased
$0.7 million , or81.6% . Restructuring, integration and acquisition expense in 2024 related primarily to costs incurred to effect the Horizon Transaction and integration expenses during the post-acquisition period.
- Depreciation and amortization increased
$4.4 million , or15.7% , primarily due to the Company’s expansion of its Glo Fiber network.
- Interest expense increased
$3.5 million , or85.0% , primarily due to an increase in the Company’s outstanding debt.
Full Year 2025 Results Compared with Full Year 2024 Results
- Shentel acquired Horizon on April 1, 2024, and consequently, results for the year ended December 31, 2024 included nine months of Horizon revenue, whereas the comparable year ended December 31, 2025 included twelve months of Horizon revenue. Information about year over year variances noted below includes the results of the acquired Horizon markets during the first three months of 2025 and explanations of the remaining consolidated changes.
- Residential & SMB - Glo Fiber Expansion Markets3 revenue increased
$24.7 million , or42.7% . Shentel recognized$0.7 million of revenues earned in the acquired Horizon markets in the first quarter of 2025. The remaining increase of$24.0 million was primarily due to42.0% growth in data RGUs and16.3% growth in video RGUs associated with the Company’s investment in expanded geographies for Glo Fiber.
- Residential & SMB - Incumbent Broadband Markets4 revenue decreased
$5.1 million , or2.9% . Shentel recognized$1.7 million of revenues earned in the acquired Horizon markets in the first quarter of 2025. The remaining decrease of$6.8 million was primarily due to lower video and data revenues from a14.5% decline in video RGUs, lower Universal Service Fund revenues and a1.6% decline in data ARPU.
- Commercial Fiber revenue increased
$9.3 million , or13.2% . Shentel recognized$9.9 million of revenues earned in the acquired Horizon markets in the first quarter of 2025. The remaining decrease of$0.6 million was primarily due to non-cash deferred revenue adjustments for a carrier customer and early termination fees earned in the prior year.
- RLEC & Other revenue increased
$1.0 million , or3.9% . Shentel recognized$2.9 million of revenues earned in the acquired Horizon markets in the first quarter of 2025. The remaining decrease of$1.9 million was primarily due to lower DSL revenue from a19.8% decline of DSL RGUs, partially due to customers migrating to our broadband data service in the recently constructed passings supported by government grants.
- Cost of services increased
$2.0 million , or1.6% . Shentel incurred$7.6 million of costs incurred in the acquired Horizon markets in the first quarter of 2025. The remaining decrease of$5.6 million was primarily due to decreases in network payroll and line costs driven by synergy savings and decreased programming expenses associated with the declines in video RGUs.
- Selling, general and administrative expense increased
$3.0 million , or2.6% . Shentel incurred$3.2 million of selling, general and administrative costs incurred in the acquired Horizon markets in first quarter of 2025. The remaining decrease of$0.2 million was primarily due to decreases in employee compensation, professional fees driven by synergy savings and lower bad debt, partially offset by increases in operating taxes and advertising costs.
- Restructuring, integration and acquisition expense decreased
$13.3 million , or91.9% . Restructuring, integration and acquisition expense in 2024 related primarily to costs incurred to effect the Horizon Transaction and integration expenses during the post-acquisition period.
- Depreciation and amortization increased
$32.8 million , or33.2% . Shentel incurred$9.2 million of depreciation and amortization related to the tangible and intangible assets acquired in the Horizon Transaction during the first quarter of 2025. The remaining increase of$23.6 million was due to the Company’s expansion of its Glo Fiber network and a$7.4 million write-off of inventory assets no longer expected to be used.
- Interest expense increased by
$9.5 million , or59.6% primarily due to an increase in the Company’s outstanding debt.
___________________________
1 See “Non-GAAP Financial Measures” below for a reconciliation to the most comparable GAAP measure.
2 See “Non-GAAP Financial Measures” below for a reconciliation to the most comparable GAAP measure.
3 Glo Fiber Expansion Markets consists of fiber to the home (“FTTH”) passings in greenfield expansion markets.
4 Incumbent Broadband Markets consists of incumbent cable markets and incumbent telephone markets with FTTH passings.
Other Information
- Capital expenditures were
$358.9 million for the year ended December 31, 2025, compared with$319.1 million in 2024. The$39.8 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
$62.5 million and$19.2 million in government grant cash reimbursements during the years ended December 31, 2025 and 2024, respectively.
- Shentel Issuer LLC (“Shentel Issuer”), a wholly-owned subsidiary of Shentel, closed its inaugural offering of
$567.4 million aggregate principal amount of secured fiber network revenue term notes, consisting of$489.1 million 5.64% Series 2025-1, Class A-2 term notes and$78.3 million 6.03% Series 2025-1, Class B term notes, each with an anticipated repayment date in December 2030 (collectively, the “ABS Notes”). As part of the same Indenture and fiber network assets and related customer contracts that govern and secure the ABS Notes, Shentel Issuer entered into a revolving$175.0 million variable funding note facility (the “VFN”) due December 2029. Shentel Issuer entered into a$25 million delay draw Liquidity Funding Note facility (the “LFN”, together with the Class A-2 Notes, Class B notes, and the VFN, the “ABS Notes”) with Bank of America. The LFN is subject to the same collateral and covenant framework, including pro-forma leverage and debt service coverage ratios as defined in the ABS Indenture. Shentel Issuer may draw on the LFN solely for the purpose of funding amounts due and payable for certain Priority of Payments as defined in the ABS Indenture and when restricted cash funds required by ABS Indenture are insufficient. The Company had no borrowings under the VFN and LFN at Closing and as of December 31, 2025. Concurrently, Shentel Broadband Operations LLC (“Shentel Broadband”), a wholly-owned indirect subsidiary of the Company, entered into a new$175.0 million Revolving Credit Facility (the “RCF”) due December 2030. Shentel used a portion of the proceeds from the issuance of the ABS Notes and the RCF to repay the outstanding principal on the Company’s existing debt.
- As of December 31, 2025, the Company’s total available liquidity was
$234.9 million , consisting of (i) cash and cash equivalents totaling$27.3 million ; (ii) restricted cash as required by the ABS indenture totaling$20.9 million (iii)$92.8 million of availability under the Shentel Broadband’s RCF; (iv)$44.3 million under Shentel Issuer’s VFN; and (v) an aggregate of$49.6 million remaining reimbursements available under government grants, subject to fulfilling the terms of the underlying agreements. In addition, the Company has$130.7 million of VFN commitments that are not available to draw as of December 31, 2025. 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.
2026 Financial Outlook
The Company initiates 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 | $ | 358 | 4.4 | % | |
| Adjusted EBITDA1 | $ | 119 | 12.1 | % | |
| Capital Expenditures, net of government grant reimbursements | $ | 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 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.
Conference Call and Webcast
Date: Thursday, February 26, 2026
Time: 8:30 a.m. (ET)
Listen via Internet: https://investor.shentel.com/
For Analysts, please register to dial-in at this link.
A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at http://investor.shentel.com/.
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, dark fiber leasing, and managed network services. The Company owns an extensive regional network with over 19,000 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, 2025 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 Company Lucas Binder Vice President of Corporate Finance 540-984-4800 Lucas.Binder@emp.shentel.com | |
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Figures for the quarters ended December 31, 2025 and 2024 are unaudited)
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Residential & SMB - Incumbent Broadband Markets1 | $ | 41,537 | $ | 43,249 | $ | 169,668 | $ | 174,795 | |||||||
| Residential & SMB - Glo Fiber Expansion Markets2 | 23,013 | 16,561 | 82,558 | 57,872 | |||||||||||
| Commercial Fiber | 20,263 | 18,281 | 79,315 | 70,057 | |||||||||||
| RLEC & Other | 6,779 | 7,321 | 26,313 | 25,334 | |||||||||||
| Service revenue and other | $ | 91,592 | $ | 85,412 | $ | 357,854 | $ | 328,058 | |||||||
| Operating expenses: | |||||||||||||||
| Cost of services exclusive of depreciation and amortization | 32,080 | 33,171 | 130,118 | 128,112 | |||||||||||
| Selling, general and administrative | 27,661 | 28,970 | 118,187 | 115,193 | |||||||||||
| Restructuring, integration and acquisition | 164 | 893 | 1,173 | 14,509 | |||||||||||
| Depreciation and amortization | 32,560 | 28,132 | 131,613 | 98,835 | |||||||||||
| Total operating expenses | 92,465 | 91,166 | 381,091 | 356,649 | |||||||||||
| Operating loss | (873 | ) | (5,754 | ) | (23,237 | ) | (28,591 | ) | |||||||
| Other (expense) income: | |||||||||||||||
| Interest expense | (7,690 | ) | (4,157 | ) | (25,374 | ) | (15,897 | ) | |||||||
| Other income, net | 1,418 | 1,819 | 6,755 | 6,461 | |||||||||||
| Loss from continuing operations before income taxes | (7,145 | ) | (8,092 | ) | (41,856 | ) | (38,027 | ) | |||||||
| Income tax benefit | (1,772 | ) | (1,902 | ) | (8,913 | ) | (9,670 | ) | |||||||
| Loss from continuing operations | (5,373 | ) | (6,190 | ) | (32,943 | ) | (28,357 | ) | |||||||
| Discontinued operations: | |||||||||||||||
| Income from discontinued operations, net of tax | — | 34 | — | 1,957 | |||||||||||
| Gain on the sale of discontinued operations, net of tax | — | 3,412 | — | 220,217 | |||||||||||
| Total income from discontinued operations, net of tax | — | 3,446 | — | 222,174 | |||||||||||
| Net (loss) income | (5,373 | ) | (2,744 | ) | (32,943 | ) | 193,817 | ||||||||
| Dividends on redeemable noncontrolling interest | 1,957 | 1,791 | 6,449 | 3,429 | |||||||||||
| Net (loss) income attributable to common shareholders | $ | (7,330 | ) | $ | (4,535 | ) | $ | (39,392 | ) | $ | 190,388 | ||||
| Net (loss) income per share attributable to common shareholders, basic and diluted: | |||||||||||||||
| Basic - Loss from continuing operations | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.71 | ) | $ | (0.59 | ) | |||
| Basic - Income from discontinued operations, net of tax | — | 0.06 | — | 4.13 | |||||||||||
| Basic net (loss) income per share | $ | (0.10 | ) | $ | (0.05 | ) | $ | (0.71 | ) | $ | 3.54 | ||||
| Diluted - Loss from continuing operations | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.71 | ) | $ | (0.59 | ) | |||
| Diluted - Income from discontinued operations, net of tax | — | 0.06 | — | 4.13 | |||||||||||
| Diluted net (loss) income per share | $ | (0.10 | ) | $ | (0.05 | ) | $ | (0.71 | ) | $ | 3.54 | ||||
| Weighted average shares outstanding, basic | 55,151 | 54,798 | 55,100 | 53,722 | |||||||||||
| Weighted average shares outstanding, diluted | 55,151 | 54,798 | 55,100 | 53,722 | |||||||||||
_____________________________
1. Incumbent Broadband Markets consists of Incumbent Cable Markets and Incumbent Telephone Markets with FTTH passings.
2. Glo Fiber Expansion Markets consists of FTTH passings in greenfield expansion markets.
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 2025 and 2024
| (in thousands) | 2025 | 2024 | |||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 27,259 | $ | 46,272 | |
| Restricted cash and cash equivalents | $ | 20,945 | $ | — | |
| Accounts receivable, net of allowance for credit losses of | 31,497 | 29,722 | |||
| Income taxes receivable | 2,544 | 1,244 | |||
| Prepaid expenses and other | 15,198 | 17,282 | |||
| Total current assets | 97,443 | 94,520 | |||
| Investments | 16,510 | 15,709 | |||
| Property, plant and equipment, net | 1,601,609 | 1,438,538 | |||
| Goodwill | 67,538 | 67,055 | |||
| Intangible assets, net | 89,353 | 90,668 | |||
| Operating lease right-of-use assets | 19,657 | 19,548 | |||
| Deferred charges and other assets | 18,652 | 14,235 | |||
| Total assets | $ | 1,910,762 | $ | 1,740,273 | |
| LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Current maturities of long-term debt, net of unamortized loan fees | $ | — | $ | 9,204 | |
| Accounts payable | 61,355 | 57,820 | |||
| Advanced billings and customer deposits | 16,909 | 16,104 | |||
| Accrued compensation | 13,334 | 16,283 | |||
| Current operating lease liabilities | 2,819 | 3,060 | |||
| Accrued liabilities and other | 14,079 | 12,100 | |||
| Total current liabilities | 108,496 | 114,571 | |||
| Long-term debt, less current maturities, net of unamortized loan fees | 628,237 | 407,675 | |||
| Other long-term liabilities: | |||||
| Deferred income taxes | 157,618 | 167,716 | |||
| Benefit plan obligations | 4,150 | 4,945 | |||
| Non-current operating lease liabilities | 10,632 | 10,794 | |||
| Other liabilities | 32,340 | 33,525 | |||
| Total other long-term liabilities | 204,740 | 216,980 | |||
| Commitments and contingencies (Note 16) | |||||
| Temporary equity: | |||||
| Redeemable noncontrolling interest | 88,506 | 82,464 | |||
| Shareholders’ equity: | |||||
| Common stock, no par value, authorized 96,000; 54,899 and 54,605 issued and outstanding at December 31, 2025 and 2024, respectively | — | — | |||
| Additional paid in capital | 157,216 | 147,733 | |||
| Retained earnings | 723,567 | 768,997 | |||
| Accumulated other comprehensive income, net of taxes | — | 1,853 | |||
| Total shareholders’ equity | 880,783 | 918,583 | |||
| Total liabilities, temporary equity and shareholders’ equity | $ | 1,910,762 | $ | 1,740,273 | |
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31, 2025 and 2024
| (in thousands) | 2025 | 2024 | |||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (32,943 | ) | $ | 193,817 | ||
| Income from discontinued operations, net of tax | — | 222,174 | |||||
| (Loss) income from continuing operations | (32,943 | ) | (28,357 | ) | |||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 129,677 | 96,908 | |||||
| Amortization of intangible assets | 1,936 | 1,545 | |||||
| Provision for credit losses | 1,452 | 2,132 | |||||
| Stock-based compensation expense, net of amount capitalized | 9,590 | 9,837 | |||||
| Deferred income taxes | (9,463 | ) | (9,759 | ) | |||
| Impairment expense | — | 382 | |||||
| Other, net | (52 | ) | 626 | ||||
| Changes in assets and liabilities, net of effects of business acquisition: | |||||||
| Accounts receivable | 413 | (2,452 | ) | ||||
| Current income taxes | 973 | 1,382 | |||||
| Operating lease assets and liabilities, net | (914 | ) | (361 | ) | |||
| Other assets | (868 | ) | (3,268 | ) | |||
| Accounts payable | 1,029 | (2,240 | ) | ||||
| Other deferrals and accruals | 2,441 | 3,004 | |||||
| Net cash provided by operating activities - continuing operations | 103,271 | 69,379 | |||||
| Net cash used in operating activities - discontinued operations | (2,273 | ) | (6,812 | ) | |||
| Net cash provided by operating activities | 100,998 | 62,567 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (358,919 | ) | (319,070 | ) | |||
| Government grants received | 62,515 | 19,238 | |||||
| Proceeds from escrow related to business acquisition | 6,471 | — | |||||
| Cash disbursed for acquisition, net of cash acquired | (5,000 | ) | (347,411 | ) | |||
| Proceeds from sale of assets and other | 269 | 2,010 | |||||
| Net cash used in investing activities - continuing operations | (294,664 | ) | (645,233 | ) | |||
| Net cash provided by provided by investing activities - discontinued operations | — | 305,827 | |||||
| Net cash used in investing activities | (294,664 | ) | (339,406 | ) | |||
| Cash flows from financing activities: | |||||||
| Principal payments on long-term debt | (592,956 | ) | (7,044 | ) | |||
| Proceeds from credit facility borrowings | 816,736 | 125,000 | |||||
| Payments for debt issuance and amendment costs | (18,691 | ) | (4,570 | ) | |||
| Proceeds from the issuance of redeemable noncontrolling interest, net of financing fees paid | — | 79,380 | |||||
| Dividends paid | (6,445 | ) | (5,805 | ) | |||
| Taxes paid for equity award issuances | (1,035 | ) | (1,727 | ) | |||
| Payments for financing arrangements and other | (2,011 | ) | (1,378 | ) | |||
| Net cash provided by financing activities | 195,598 | 183,856 | |||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 1,932 | (92,983 | ) | ||||
| Cash, cash equivalents, and restricted cash, beginning of period | 46,272 | 139,255 | |||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 48,204 | $ | 46,272 | |||
| Supplemental Disclosures of Cash Flow Information | |||||||
| Interest paid, net of amounts capitalized | $ | (20,798 | ) | $ | (12,075 | ) | |
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 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.
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| (Loss) income from continuing operations | $ | (5,373 | ) | $ | (6,190 | ) | $ | (32,943 | ) | $ | (28,357 | ) | |||
| Depreciation and amortization | 32,560 | 28,132 | 131,613 | 98,835 | |||||||||||
| Interest expense | 7,690 | 4,157 | 25,374 | 15,897 | |||||||||||
| Other expense (income), net | (1,418 | ) | (1,819 | ) | (6,755 | ) | (6,461 | ) | |||||||
| Income tax (benefit) expense | (1,772 | ) | (1,902 | ) | (8,913 | ) | (9,670 | ) | |||||||
| Stock-based compensation | 1,620 | 2,217 | 9,590 | 9,837 | |||||||||||
| Restructuring, integration and acquisition | 164 | 893 | 1,173 | 14,509 | |||||||||||
| Adjusted EBITDA | $ | 33,471 | $ | 25,488 | $ | 119,139 | $ | 94,590 | |||||||
| Adjusted EBITDA margin | 37 | % | 30 | % | 33 | % | 29 | % | |||||||
Supplemental Information
Operating Statistics
| December 31, 2025 | December 31, 2024 | |||||
| Homes and businesses passed (1) | 679,044 | 585,340 | ||||
| Incumbent Broadband Markets | 252,224 | 239,041 | ||||
| Glo Fiber Expansion Markets | 426,820 | 346,299 | ||||
| Residential & SMB RGUs: | ||||||
| Broadband Data | 199,947 | 176,465 | ||||
| Incumbent Broadband Markets | 111,962 | 111,325 | ||||
| Glo Fiber Expansion Markets | 87,985 | 65,140 | ||||
| Video | 35,818 | 40,023 | ||||
| Voice | 26,693 | 25,528 | ||||
| Total Residential & SMB RGUs (excludes RLEC) | 262,458 | 242,016 | ||||
| Residential & SMB Penetration (2) | ||||||
| Broadband Data | 29.4 | % | 30.1 | % | ||
| Incumbent Broadband Markets | 44.4 | % | 46.6 | % | ||
| Glo Fiber Expansion Markets | 20.6 | % | 18.8 | % | ||
| Video | 5.3 | % | 6.8 | % | ||
| Voice | 4.2 | % | 4.5 | % | ||
| Fiber route miles | 19,067 | 16,830 | ||||
| Total fiber miles (3) | 1,996,620 | 1,858,081 | ||||
_______________________
(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 RGUs 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 and SMB ARPU | ||||||||||||
| Quarter Ended December 31, | Year Ended December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Residential and SMB Revenue: | ||||||||||||
| Incumbent Broadband Markets | $ | 27,536 | $ | 28,077 | $ | 110,896 | $ | 111,353 | ||||
| Glo Fiber Expansion Markets | 19,803 | 14,133 | 70,812 | 49,146 | ||||||||
| Broadband Data | 47,339 | 42,210 | 181,708 | 160,499 | ||||||||
| Video | 13,677 | 14,172 | 56,578 | 57,940 | ||||||||
| Voice | 2,625 | 2,549 | 10,314 | 10,256 | ||||||||
| Discounts, adjustments and other | 909 | 879 | 3,626 | 3,972 | ||||||||
| Total Residential & SMB Revenue | $ | 64,550 | $ | 59,810 | $ | 252,226 | $ | 232,667 | ||||
| Average RGUs: | ||||||||||||
| Incumbent Broadband Markets | 111,967 | 111,384 | 111,785 | 110,888 | ||||||||
| Glo Fiber Expansion Markets | 85,434 | 62,387 | 76,586 | 53,432 | ||||||||
| Broadband Data | 197,401 | 173,771 | 188,371 | 164,320 | ||||||||
| Video | 36,208 | 40,596 | 37,655 | 41,491 | ||||||||
| Voice | 26,588 | 26,588 | 26,205 | 24,951 | ||||||||
| ARPU: (1) | ||||||||||||
| Incumbent Broadband Markets | $ | 81.98 | $ | 84.02 | $ | 82.67 | $ | 83.68 | ||||
| Glo Fiber Expansion Markets | $ | 77.27 | $ | 75.51 | $ | 77.05 | $ | 76.63 | ||||
| Broadband Data | $ | 79.93 | $ | 80.97 | $ | 80.39 | $ | 81.40 | ||||
| Video | $ | 125.91 | $ | 116.37 | $ | 125.21 | $ | 116.37 | ||||
| Voice | $ | 32.91 | $ | 33.32 | $ | 32.80 | $ | 34.25 | ||||
___________________________________
(1) Average Revenue Per RGU calculation = (Residential & SMB Revenue) / average RGUs / 3 months.
FAQ
What drove Shenandoah Telecommunications (SHEN) revenue growth in 2025?
How did SHEN’s profitability change in 2025 and what is Adjusted EBITDA?
What is the size and purpose of SHEN’s ABS financing announced in 2025?
What guidance did SHEN provide for 2026 revenue and Adjusted EBITDA?
How will the announced workforce reduction affect SHEN’s finances?
How much did SHEN spend on capital expenditures in 2025 and why?
