Shenandoah Telecommunications Company Reports Third Quarter 2026 Results

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.

^{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
[email protected]

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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

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.

Supplemental Information

Operating Statistics

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^{(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.}

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^{(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.}