Shenandoah Telecommunications Company Reports Third Quarter 2026 Results

Higher planned fiber coverage and subsidy reimbursements shifting into 2027 increased the company's net capital spending outlook.

Rhea-AI Summary

Shenandoah Telecommunications (Nasdaq: SHEN) reported third-quarter 2026 revenue of $93.9 million, with fiber expansion growth offsetting declines in incumbent broadband markets. Revenue increased 4.6% year over year. Net loss narrowed to $9.2 million from $9.4 million, while adjusted EBITDA, a non-GAAP earnings measure, rose 11.8% to $33.2 million. Glo Fiber Expansion Markets revenue increased 32.2% to $28.2 million; incumbent broadband revenue fell 6.8%.

Shentel maintained 2026 revenue guidance of $370 million–$377 million and adjusted EBITDA guidance of $131 million–$136 million. It raised capital expenditure guidance, net of grant reimbursements, to $255 million–$275 million from $220 million–$250 million, reflecting additional planned homes passed and reimbursements now projected into 2027. Planned network expansion remains expected to be substantially complete by year-end 2026.

18 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 19 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter revenue increased 4.6% year over year to $93.9 million.
• Moderate pointGlo Fiber Expansion Markets revenue grew 32.2% to $28.2 million, with data customer units increasing 31.8% year over year.
• Moderate pointCommercial Fiber revenue increased 5.9% year over year, supported by additional recurring circuit services.
• Moderate pointThird-quarter adjusted EBITDA grew 11.8% year over year to $33.2 million.
• Moderate pointThird-quarter operating loss narrowed to $1.977 million from $7.164 million a year earlier.
• Moderate pointGlo Fiber surpassed 500,000 homes passed and delivered a record 8,600 net additions during the quarter.
• Moderate pointFiber revenue grew nearly 20% and represented 52% of total revenue.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Workforce reduction is expected to save approximately $12.3 million annually beginning in 2027.

10 minor points

• Minor pointThird-quarter net loss narrowed to $9.2 million from $9.4 million a year earlier.
• Minor pointThird-quarter loss per common share narrowed to $0.19 from $0.20 a year earlier.
• Minor pointThird-quarter selling, general and administrative expense decreased 2.1% year over year.
• Minor pointThird-quarter depreciation and amortization decreased 2.3% year over year.
• Minor pointThird-quarter restructuring, integration and acquisition expense fell to $152,000 from $293,000 a year earlier.
• Minor pointNine-month revenue increased to $279.549 million from $266.262 million a year earlier.
• Minor pointNine-month operating loss narrowed to $13.462 million from $22.364 million a year earlier.
• Minor pointNine-month capital expenditures decreased to $215.0 million from $251.5 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Shentel projects 517,000 Glo Fiber homes passed at year-end 2026, increased from 510,000.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned network expansion remains expected to be substantially complete by year-end 2026.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Net capital expenditure guidance rose to $255 million–$275 million from $220 million–$250 million, versus $296 million in 2025.
• Moderate pointIncumbent broadband revenue declined 6.8% year over year, reflecting lower video and data revenue.
• Moderate pointRLEC & Other revenue declined 16.1% year over year, primarily reflecting a 35.5% decline in DSL customer units.
• Moderate pointThird-quarter interest expense increased to $10.497 million from $6.789 million a year earlier.
• Moderate pointNine-month government grant cash receipts, excluding indirect cost reimbursements, fell to $22.1 million from $39.9 million a year earlier.
• Moderate pointLong-term debt, net of loan fees, rose to $747.091 million from $628.237 million at December 31, 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Previously announced workforce reduction covers approximately 10% of employees, with approximately $2.5 million in expected restructuring costs.
• Moderate pointVariable Funding Note commitments of $84.2 million were unavailable to draw at September 30, 2026. 15% of market cap
• Moderate pointRemaining grant reimbursements of $26.9 million depend on fulfilling the underlying agreements. 4.8% of market cap

10 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Some subsidy reimbursements are now projected to extend into 2027.
• Minor pointIncumbent video customer units fell 13.0%; data average revenue per user declined 3.0% year over year.
• Minor pointThird-quarter cost of services increased 1.7% year over year.
• Minor pointThird-quarter other income declined to $246,000 from $1.589 million a year earlier.
• Minor pointNine-month net loss widened to $32.630 million from $27.570 million a year earlier.
• Minor pointNine-month loss per common share widened to $0.67 from $0.58 a year earlier.
• Minor pointNine-month interest expense increased to $29.628 million from $17.684 million a year earlier.
• Minor pointNine-month selling, general and administrative expense rose to $93.562 million from $90.526 million a year earlier.
• Minor pointNine-month restructuring, integration and acquisition expense rose to $2.726 million from $1.009 million a year earlier.
• Minor pointCash and cash equivalents fell to $18.647 million from $27.259 million at December 31, 2025.

News Explained

At September 30, reported liquidity included restricted cash and grant reimbursements subject to terms, while $84.2 million of VFN commitments was not drawable.

Shentel says it previously announced a workforce reduction of approximately 10% of employees; through September 30, 2026, it had recorded $2.3 million in severance expense and paid $0.5 million in severance. The company expects approximately $12.3 million in annual savings beginning in 2027. About half of those expected savings would reduce operating expenses, and about half would reduce labor costs capitalized in capital expenditures.

At September 30, 2026, Shentel reported $138.6 million of total available liquidity, including $18.6 million in unrestricted cash, $27.0 million in restricted cash, $49.8 million of revolving-credit availability, $16.3 million under its VFN, and $26.9 million in grant reimbursements subject to the underlying agreements. An additional $84.2 million of VFN commitments was not then available to draw.

Key Figures

Total revenue: $93.9 million, up 4.6% year over year Net loss: $9.2 million, compared with $9.4 million Adjusted EBITDA: $33.2 million, up 11.8% year over year +4 more

Total revenue

$93.9 million, up 4.6% year over year

Third quarter 2026

Net loss

$9.2 million, compared with $9.4 million

Third quarter 2026 versus third quarter 2025

Adjusted EBITDA

$33.2 million, up 11.8% year over year

Third quarter 2026

Glo Fiber Expansion Markets revenue

$28.2 million, up 32.2% year over year

Third quarter 2026

Glo Fiber net additions

8,600

Third quarter 2026; described as a record

Capital expenditure guidance

$255 million to $275 million, net of government grant reimbursements

Updated 2026 guidance; previous range was $220 million to $250 million

Year-end homes passed outlook

517,000, revised from 510,000

Glo Fiber projection by the end of 2026

Previous Earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Q2 earnings

   24h Move

   +7.3%

   Reported revenue and Adjusted EBITDA growth with Glo Fiber expansion, comparable to Q3's reported growth.

2. May 01

   Q1 earnings

   24h Move

   +3.6%

   Reported year-over-year revenue and Adjusted EBITDA growth, metrics also showing growth in the Q3 release.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, rgus, arpu, ftth

4 terms

adjusted ebitda financial

"Adjusted EBITDA grew 11.8% year over year to $33.2 million."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

rgus technical

"a 31.8% increase in data revenue generating units (“RGUs”)"

RGUs, or revenue-generating units, count individual services or subscriptions that bring in money for a company—think of each phone line, broadband connection or paid channel as a separate unit. Investors watch RGUs because they show how many active, paying relationships a business has and help gauge growth, churn and potential revenue per customer, much like tracking how many seats are filled at a theater to predict ticket income.

arpu financial

"a 3.0% decline in data ARPU"

ARPU, or Average Revenue Per User, measures how much money a company earns, on average, from each of its customers over a set period. It helps investors understand how effectively a business is generating income from its customer base, similar to calculating how much each customer spends at a store. Higher ARPU often indicates stronger sales per customer and better revenue performance.

ftth technical

"services over FTTH networks in new greenfield expansion markets."

Fiber to the home (FTTH) is a broadband delivery method that runs optical fiber directly from a network to individual residences, replacing slower copper or wireless links. Like replacing a narrow water pipe with a wide one, it provides much faster, more reliable internet and supports higher data use. Investors care because FTTH requires large upfront investment but can create stable recurring revenue, long-term customer lock-in, and a competitive edge in regions with growing data demand.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

EDINBURG, Va., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel” or the “Company”) (Nasdaq: SHEN) announced third quarter 2026 financial and operating results.

Third Quarter 2026 Highlights

• Glo Fiber Expansion Markets revenue grew 32.2% year over year to $28.2 million.
• Total revenue increased 4.6% year over year to $93.9 million.
• Net loss was $9.2 million compared to $9.4 million in the third quarter of 2025.
• Adjusted EBITDA¹ grew 11.8% year over year to $33.2 million.

“We continue to see strong momentum across our fiber businesses, surpassing 500,000 Glo Fiber passings and delivering a record 8,600 Glo Fiber net additions in the third quarter,” said Ed McKay, President and CEO. “Fiber revenue grew nearly 20% and now represents 52% of total revenue, while Adjusted EBITDA increased 11.8%. With our major construction programs nearing completion, we are entering the next phase of our fiber-first strategy focused on customer growth, operating leverage and cash generation.”

Shentel’s third-quarter earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, October 28, 2026. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/.

Third Quarter 2026 Results Compared with Third Quarter 2025

• Residential & SMB - Glo Fiber Expansion Markets² revenue (30.0% of total) increased $6.9 million, or 32.2%, primarily due to a 31.8% increase in data revenue generating units (“RGUs”) driven by the Company’s increase in penetration rates and increase in passings.

• Residential & SMB - Incumbent Broadband Markets³ revenue (41.6% of total) decreased $2.8 million, or 6.8%, due to lower video and data revenue. Video revenue declined due to a 13.0% decrease in video RGUs as customers switched to streaming video services. Data revenue declined primarily due to a 3.0% decline in data ARPU, driven in part by our rate card in markets where we face a fixed broadband competitor and in part due to our recently implemented rate card in lower demographic markets experiencing softer demand.

• Commercial Fiber revenue (22.5% of total) increased $1.2 million, or 5.9%, due to increases in recurring revenue from additional circuit services sold to both new and existing customers.

• RLEC & Other revenue (5.9% of total) decreased $1.1 million, or 16.1%, primarily due to a 35.5% decrease in DSL RGUs and, to a lesser extent, a decrease in government support revenue.

• Cost of services increased by $0.5 million, or 1.7%, partially due to increased building & fleet maintenance and fuel expenses as well as increased pole attachment rent expense from expansion of the Glo Fiber network and regulatory fees with the growth in customers.

• Selling, general and administrative expense decreased by $0.6 million, or (2.1)%. The decrease was partially due to lower advertising and stock compensation expense, offset in part by higher operating and property taxes, software maintenance expenses, and payroll related expenses.

• Restructuring, integration and acquisition expense decreased by $0.1 million. The decrease was primarily due to transaction fees incurred in the prior year that did not recur in 2026.

• Depreciation and amortization decreased by $0.8 million, or 2.3%. The decrease was primarily due to a $3.2 million decline in write-offs, partially offset by new depreciation associated with assets placed in service as part of the continued expansion of the Glo Fiber network.

Other Information

• Capital expenditures were $215.0 million for the nine months ended September 30, 2026, compared with $251.5 million for the nine months ended September 30, 2025. The $36.5 million decrease was primarily driven by the substantial completion of government grant construction projects in Incumbent Broadband Markets.

• The Company received $22.1 million and $39.9 million in government grant cash receipts (exclusive of indirect cost reimbursements) during the nine months ended September 30, 2026 and 2025, respectively.

• As of September 30, 2026, the Company’s total available liquidity was $138.6 million, consisting of (i) unrestricted cash and cash equivalents totaling $18.6 million; (ii) restricted cash as required by the ABS Indenture totaling $27.0 million; (iii) $49.8 million of availability under Shentel Broadband’s Revolving Credit Facility; (iv) $16.3 million under Shentel Issuer’s Variable Funding Note (“VFN”); and (v) an aggregate of $26.9 million remaining reimbursements available under government grants, subject to fulfilling the terms of the underlying agreements. In addition, the Company has $84.2 million of VFN commitments that are not available to draw as of September 30, 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) a 6.25x multiple.

• As previously reported, 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, which is expected to be substantially complete by the end 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 $2.5 million in restructuring costs to achieve these savings. During the nine months ended September 30, 2026, Shentel incurred $2.3 million in severance expense, included in restructuring, integration and acquisition expense in the condensed consolidated statements of operations, and made $0.5 million of severance payments.

Updated 2026 Financial Outlook

Revenue and Adjusted EBITDA guidance remain unchanged.   The Company is updating its 2026 capital expenditure guidance, net of government grant reimbursements, to $255 million to $275 million, compared to its previous guidance of $220 million to $250 million. The revised outlook reflects both a projected increase in Glo Fiber homes passed from 510,000 to 517,000 by the end of 2026 as well as changes in the timing of some subsidy reimbursements, which are now projected to extend into 2027. The Company continues to expect to be substantially complete with its planned network expansion projects by the end of 2026.

	Year Ending December 31, 2026	Year Ended December 31		% Change 2025 to 202
(dollars in millions)	Guidance Range	2025		Midpoint
Total Revenue	$370 - $377	$	358	4.4	%
Adjusted EBITDA1	$131 - $136	$	119	12.1	%
Capital Expenditures, net of government grant reimbursements	$255 - $275	$	296	(10.6)%

^{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 or the evolving tariff environment. The Company does not provide a reconciliation for Adjusted EBITDA forecasts (which represent forecasts 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 28, 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 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 20,000 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 ongoing geopolitical conflicts, rising inflation, changes in tariffs, new or changing regulatory requirements, uncertainty arising from U.S. government budgetary, funding, regulatory, administrative, or policy developments 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, 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
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)		Three Months Ended September 30,								Nine Months Ended September 30,
			2026				2025				2026				2025
Residential & SMB - Incumbent Broadband Markets1		$	39,103			$	41,935			$	120,528			$	128,131
Residential & SMB - Glo Fiber Expansion Markets2			28,166				21,305				79,283				59,545
Commercial Fiber			21,126				19,957				63,054				59,052
RLEC & Other			5,539				6,599				16,684				19,534
Service revenue and other			93,934				89,796				279,549				266,262
Operating expenses:
Cost of services, exclusive of depreciation and amortization			32,919				32,384				97,446				98,038
Selling, general and administrative			29,153				29,791				93,562				90,526
Restructuring, integration and acquisition			152				293				2,726				1,009
Depreciation and amortization			33,687				34,492				99,277				99,053
Total operating expenses			95,911				96,960				293,011				288,626
Operating loss			(1,977	)			(7,164	)			(13,462	)			(22,364	)
Other (expense) income:
Interest expense			(10,497	)			(6,789	)			(29,628	)			(17,684	)
Other income, net			246				1,589				763				5,337
Loss before income taxes			(12,228	)			(12,364	)			(42,327	)			(34,711	)
Income tax benefit			(3,048	)			(2,974	)			(9,697	)			(7,141	)
Net loss			(9,180	)			(9,390	)			(32,630	)			(27,570	)
Dividends on redeemable noncontrolling interest			1,633				1,523				4,815				4,492
Net loss attributable to common shareholders		$	(10,813	)		$	(10,913	)		$	(37,445	)		$	(32,062	)
Net loss per share attributable to common shareholders, basic and diluted:
Net loss per share		$	(0.19	)		$	(0.20	)		$	(0.67	)		$	(0.58	)
Weighted average shares outstanding			55,814				55,150				55,715				55,083

_______________________________________________________

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.}

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)	September 30, 2026			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	18,647		$	27,259
Restricted cash and cash equivalents		27,009			20,945
Accounts receivable, net of allowance for credit losses of $1,389 and $829, respectively		22,385			31,497
Income taxes receivable		3,447			2,544
Prepaid expenses and other		16,617			15,198
Total current assets		88,105			97,443
Investments		16,308			16,510
Property, plant and equipment, net		1,711,144			1,601,609
Goodwill		67,538			67,538
Intangible assets, net		88,173			89,353
Operating lease right-of-use assets		19,016			19,657
Deferred charges and other assets		18,965			18,652
Total assets	$	2,009,249		$	1,910,762
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	68,219		$	61,355
Advanced billings and customer deposits		18,469			16,909
Accrued compensation		16,816			13,334
Current operating lease liabilities		2,646			2,819
Accrued liabilities and other		17,164			14,079
Total current liabilities		123,314			108,496
Long-term debt, net of unamortized loan fees		747,091			628,237
Other long-term liabilities:
Deferred income taxes		147,921			157,618
Benefit plan obligations		4,439			4,150
Non-current operating lease liabilities		10,143			10,632
Other liabilities		32,367			32,340
Total other long-term liabilities		194,870			204,740
Commitments and contingencies
Temporary equity:
Redeemable noncontrolling interest		93,321			88,506
Shareholders’ equity:
Common stock, no par value, authorized 96,000; 55,365 and 54,899 issued and outstanding at September 30, 2026 and December 31, 2025, respectively		—			—
Additional paid in capital		164,531			157,216
Retained earnings		686,122			723,567
Total shareholders’ equity		850,653			880,783
Total liabilities, temporary equity and shareholders’ equity	$	2,009,249		$	1,910,762

SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)	Nine Months Ended September 30,
		2026				2025
Cash flows from operating activities:
Net loss	$	(32,630	)		$	(27,570	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		98,062				97,611
Amortization of intangible assets		1,215				1,442
Stock-based compensation expense, net of amount capitalized		8,427				7,970
Deferred income taxes		(9,697	)			(7,103	)
Provision for credit losses		1,402				1,481
Other, net		2,905				(97	)
Changes in assets and liabilities:
Accounts receivable		(1,443	)			2,234
Current income taxes		(903	)			187
Operating lease assets and liabilities, net		(119	)			(513	)
Other assets		(1,329	)			(3,176	)
Accounts payable		3,288				1,462
Other deferrals and accruals		7,467				531
Net cash provided by operating activities - continuing operations		76,645				74,459
Net cash used in operating activities - discontinued operations		—				(2,251	)
Net cash provided by operating activities		76,645				72,208
Cash flows from investing activities:
Capital expenditures		(215,014	)			(251,546	)
Government grants received		22,109				39,884
Proceeds from escrow related to business acquisition		—				6,471
Cash disbursed for acquisitions, net of cash acquired		—				(5,000	)
Proceeds from sale of assets and other		783				276
Net cash used in investing activities		(192,122	)			(209,915	)
Cash flows from financing activities:
Proceeds from credit facility borrowings		144,500				125,000
Principal payments on long-term debt		(27,000	)			(7,607	)
Payments for debt issuance and amendment costs		(429	)			(951	)
Taxes paid for equity award issuances		(1,804	)			(1,035	)
Payments for financing arrangements and other		(2,338	)			(1,351	)
Net cash provided by financing activities		112,929				114,056
Net decrease in cash and cash equivalents		(2,548	)			(23,651	)
Cash, cash equivalents, and restricted cash, beginning of period		48,204				46,272
Cash, cash equivalents, and restricted cash, end of period	$	45,656			$	22,621
Supplemental Disclosures of Cash Flow Information
Interest paid, net of amounts capitalized	$	(27,063	)		$	(16,272	)
Income taxes paid	$	(903	)		$	(1,955	)

Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin

The Company defines Adjusted EBITDA as (loss) income from 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 Net loss, 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 Ended September 30,								Nine Months Ended September 30,
(in thousands)			2026				2025				2026				2025
Net loss		$	(9,180	)		$	(9,390	)		$	(32,630	)		$	(27,570	)
Depreciation and amortization			33,687				34,492				99,277				99,053
Interest expense			10,497				6,789				29,628				17,684
Other income, net			(246	)			(1,589	)			(763	)			(5,337	)
Income tax benefit			(3,048	)			(2,974	)			(9,697	)			(7,141	)
Stock-based compensation			1,326				2,066				8,427				7,970
Restructuring, integration and acquisition			152				293				2,726				1,009
Adjusted EBITDA		$	33,188			$	29,687			$	96,968			$	85,668
Adjusted EBITDA margin			35	%			33	%			35	%			32	%

Supplemental Information

Operating Statistics

	Three Months Ended September 30,
	2026			2025
Homes and businesses passed (1)
Incumbent Broadband Markets	254,019			248,002
Glo Fiber Expansion Markets	500,584			400,323
Total homes and businesses passed	754,603			648,325
Residential & Small and Medium Business ("SMB") Revenue Generating Units ("RGUs"):
Incumbent Broadband Markets	110,032			111,900
Glo Fiber Expansion Markets	108,787			82,662
Broadband Data	218,819			194,562
Video	34,325			36,601
Voice	27,350			26,477
Total Residential & SMB RGUs (excludes RLEC)	280,494			257,640
Residential & SMB Penetration (2)
Incumbent Broadband Markets	43.3	%		45.1	%
Glo Fiber Expansion Markets	21.7	%		20.6	%
Broadband Data	29.0	%		30.0	%
Video	4.5	%		5.6	%
Voice	3.8	%		4.4	%
Fiber route miles	20,085			18,077
Total fiber miles (3)	2,133,729			1,957,272

______________________________________________________
^{(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 Ended September 30,						Nine Months Ended September 30,
($ in thousands, except ARPU)			2026			2025			2026			2025
Residential & SMB Revenue:
Incumbent Broadband Markets		$	26,413		$	27,635		$	80,841		$	83,360
Glo Fiber Expansion Markets			23,884			18,325			67,237			51,009
Broadband Data			50,297			45,960			148,078			134,369
Video			13,387			13,947			41,093			42,901
Voice			2,597			2,573			7,815			7,689
Other			988			760			2,825			2,717
Total Residential & SMB Revenue		$	67,269		$	63,240		$	199,811		$	187,676
Average RGUs:
Incumbent Broadband Markets			110,280			111,865			110,987			111,724
Glo Fiber Expansion Markets			104,802			79,530			97,558			73,637
Broadband Data			215,082			191,395			208,545			185,361
Video			34,631			37,080			34,807			38,137
Voice			27,162			26,292			26,963			26,077
ARPU: (1)
Incumbent Broadband Markets		$	79.84		$	82.34		$	80.93		$	82.90
Glo Fiber Expansion Markets		$	75.96		$	76.81		$	76.58		$	76.97
Broadband Data		$	77.95		$	80.03		$	78.89		$	80.55
Video		$	128.85		$	125.38		$	131.18		$	124.99
Voice		$	31.87		$	32.62		$	32.20		$	32.76

______________________________________________________
^{(1)   Average Revenue Per RGU calculation = (Residential & SMB Revenue) / average RGUs / number of months}

---

^{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.}

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Shentel's third-quarter 2026 earnings results?

Shentel reported revenue of $93.9 million and a net loss of $9.2 million for the third quarter of 2026. Revenue increased 4.6% year over year, while net loss narrowed from $9.4 million. Adjusted EBITDA, a non-GAAP earnings measure, increased 11.8% to $33.2 million.

What is SHEN's updated 2026 financial guidance?

Shentel maintained revenue guidance of $370 million to $377 million and adjusted EBITDA guidance of $131 million to $136 million. Capital expenditure guidance, net of government grant reimbursements, increased to $255 million to $275 million from $220 million to $250 million.

How much liquidity did Shentel have at September 30, 2026?

Shentel reported $138.6 million in total available liquidity at September 30, 2026. This included $18.6 million in unrestricted cash, $27.0 million in restricted cash, $49.8 million in revolving credit availability, $16.3 million under its Variable Funding Note and $26.9 million in remaining grant reimbursements subject to agreement terms.

How will Shentel's workforce reduction savings affect expenses and capital spending?

Shentel expects approximately half of its $12.3 million in annual savings beginning in 2027 to affect operating expenses and half to affect capitalized labor included in capital expenditures. During the first nine months of 2026, it incurred $2.3 million in severance expense and made $0.5 million in severance payments.