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Shenandoah Telecommunications Company Reports Second Quarter 2025 Results

EDINBURG, Va., July 31, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel” or the “Company”) (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.

“Our 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,” said President and CEO, Christopher E. French. “Glo 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.”

Shentel’s second-quarter earnings conference call will be webcast at 4:30 p.m. ET on Thursday, July 31, 2025. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/.

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 (“RGUs”). 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’s 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 (“FTTH”) passings in greenfield expansion markets.
2 See “Non-GAAP Financial Measures” 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 30, 2025, the Company’s total available liquidity was $266.7 million, consisting of (i) cash and cash equivalents totaling $29.1 million; (ii) $143.0 million of availability under the Company’s revolving credit facility; and (iii) an aggregate of $94.6 million 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 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. The Company completed the acquisition on July 9, 2025.

2025 Financial Outlook

The Company initiates 2025 financial guidance.

  Year Ending December 31,
2025

  Year Ended
December 31,
2024

  % Change
2024 to 2025
Midpoint

 
  Guidance Range
     
(dollars in millions) Low
  High
     
Total Revenue $ 352   $ 357   $ 328   8.1  %  
Adjusted EBITDA1 $ 113   $ 118   $ 95   21.6  %  
Capital Expenditures, net of government grant reimbursements $ 260   $ 290   $ 300   (8.3 )%  

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 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 31, 2025
Time: 4:30 p.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, 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 “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, 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
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
June 30,
  Six Months Ended
June 30,
 
  2025   2024   2025   2024  
Residential & SMB - Incumbent Broadband Markets1, 3 $ 42,837     $ 44,243     $ 86,196     $ 88,047    
Residential & SMB - Glo Fiber Expansion Markets2   19,796       14,093       38,240       26,211    
Commercial Fiber3   19,483       20,723       39,095       30,706    
RLEC & Other   6,452       6,740       12,935       10,083    
Service revenue and other   88,568       85,799       176,466       155,047    
Operating expenses:                                
Cost of services exclusive of depreciation and amortization   32,624       34,541       65,654       60,526    
Selling, general and administrative   29,743       30,239       60,735       58,217    
Restructuring, integration and acquisition   206       11,325       716       11,943    
Depreciation and amortization   35,103       25,579       64,561       43,022    
Total operating expenses   97,676       101,684       191,666       173,708    
Operating loss   (9,108 )     (15,885 )     (15,200 )     (18,661 )  
Other (expense) income:                                
Interest expense   (6,003 )     (3,996 )     (10,895 )     (8,072 )  
Other income, net   3,015       1,908       3,748       3,644    
Loss from continuing operations before income taxes   (12,096 )     (17,973 )     (22,347 )     (23,089 )  
Income tax benefit   (3,048 )     (5,200 )     (4,167 )     (6,226 )  
Loss from continuing operations   (9,048 )     (12,773 )     (18,180 )     (16,863 )  
Discontinued operations:                                
(Loss) income from discontinued operations, net of tax         (99 )           1,882    
Gain on the sale of discontinued operations, net of tax                     216,805    
Total (loss) income from discontinued operations, net of tax         (99 )           218,687    
Net (loss) income   (9,048 )     (12,872 )     (18,180 )     201,824    
Dividends on redeemable noncontrolling interest   1,497             2,969          
Net (loss) income attributable to common shareholders $ (10,545 )   $ (12,872 )   $ (21,149 )   $ 201,824    
                                 
Net (loss) income per share attributable to common shareholders,
basic and diluted:
                               
Loss from continuing operations $ (0.19 )   $ (0.24 )   $ (0.38 )   $ (0.32 )  
(Loss) income from discontinued operations, net of tax                     4.16    
Net (loss) income per share $ (0.19 )   $ (0.24 )   $ (0.38 )   $ 3.84    
                                 
Weighted average shares outstanding   55,103       54,730       55,032       52,620    

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 fiber to the home (“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.
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

(in thousands) June 30,
2025
  December 31,
2024
 
ASSETS            
Current assets:            
Cash and cash equivalents $ 29,077   $ 46,272  
Accounts receivable, net of allowance for credit losses of $1,125 and $1,156, respectively   34,551     29,722  
Income taxes receivable   3,278     1,244  
Prepaid expenses and other   16,445     17,282  
Total current assets   83,351     94,520  
Investments   15,974     15,709  
Property, plant and equipment, net   1,523,994     1,438,538  
Goodwill and intangible assets, net   156,832     157,723  
Operating lease right-of-use assets   19,442     19,548  
Deferred charges and other assets   15,081     14,235  
Total assets $ 1,814,674   $ 1,740,273  
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY            
Current liabilities:            
Current maturities of long-term debt, net of unamortized loan fees $ 10,203   $ 9,204  
Accounts payable   62,516     57,820  
Advanced billings and customer deposits   16,831     16,104  
Accrued compensation   11,314     16,283  
Current operating lease liabilities   2,933     3,060  
Accrued liabilities and other   11,143     12,100  
Total current liabilities   114,940     114,571  
Long-term debt, less current maturities, net of unamortized loan fees   501,611     407,675  
Other long-term liabilities:            
Deferred income taxes   163,268     167,716  
Benefit plan obligations   4,934     4,945  
Non-current operating lease liabilities   10,378     10,794  
Other liabilities   32,146     33,525  
Total other long-term liabilities   210,726     216,980  
Commitments and contingencies            
Temporary equity:            
Redeemable noncontrolling interest   85,433     82,464  
Shareholders’ equity:            
Common stock, no par value, authorized 96,000; 54,897 and 54,605 issued and outstanding at
June 30, 2025 and December 31, 2024, respectively
       
Additional paid in capital   153,116     147,733  
Retained earnings   747,848     768,997  
Accumulated other comprehensive income, net of taxes   1,000     1,853  
Total shareholders’ equity   901,964     918,583  
Total liabilities, temporary equity and shareholders’ equity $ 1,814,674   $ 1,740,273  
 

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

(in thousands) Six Months Ended
June 30,
 
  2025   2024  
Cash flows from operating activities:                
Net (loss) income $ (18,180 )   $ 201,824    
Income from discontinued operations, net of tax         218,687    
Loss from continuing operations   (18,180 )     (16,863 )  
Adjustments to reconcile net (loss) income to net cash provided by operating activities:                
Depreciation and amortization   63,613       42,424    
Amortization of intangible assets   948       598    
Stock-based compensation expense, net of amount capitalized   5,904       6,236    
Deferred income taxes   (4,167 )     (6,226 )  
Provision for credit losses   804       1,266    
Other, net   165       150    
Changes in assets and liabilities                
Accounts receivable   1,155       965    
Current income taxes   217       234    
Operating lease assets and liabilities, net   (437 )     (233 )  
Other assets   (2,345 )     (3,354 )  
Accounts payable   975       (1,140 )  
Other deferrals and accruals   (4,931 )     (882 )  
 Net cash provided by operating activities - continuing operations   43,721       23,175    
 Net cash used in operating activities - discontinued operations   (2,251 )     (5,476 )  
 Net cash provided by operating activities   41,470       17,699    
                 
Cash flows from investing activities:                
Capital expenditures   (169,432 )     (150,914 )  
Government grants received   17,281       7,653    
Cash disbursed for acquisition, net of cash acquired         (347,411 )  
Proceeds from sale of assets and other   243       1,715    
Net cash used in investing activities - continuing operations   (151,908 )     (488,957 )  
Net cash provided by investing activities - discontinued operations         305,827    
Net cash used in investing activities   (151,908 )     (183,130 )  
                 
Cash flows from financing activities:                
Proceeds from credit facility borrowings   100,000          
Principal payments on long-term debt   (4,893 )     (2,618 )  
Payments for debt amendment costs   (430 )     (4,390 )  
Proceeds from the issuance of redeemable noncontrolling interest, net of financing fees paid         79,380    
Taxes paid for equity award issuances   (1,035 )     (1,671 )  
Payments for financing arrangements and other   (399 )     (746 )  
Net cash provided by financing activities   93,243       69,955    
Net decrease in cash and cash equivalents   (17,195 )     (95,476 )  
Cash and cash equivalents, beginning of period   46,272       139,255    
Cash and cash equivalents, end of period $ 29,077     $ 43,779    
                 
Supplemental Disclosures of Cash Flow Information                
Interest paid, net of amounts capitalized $ (9,891 )   $ (6,526 )  
Income taxes paid $ (2,034 )   $ (7,085 )  
 

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’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
June 30,
  Six Months Ended
June 30,
 
(in thousands) 2025   2024   2025   2024  
Loss from continuing operations $ (9,048 )   $ (12,773 )   $ (18,180 )   $ (16,863 )  
Depreciation and amortization   35,103       25,579       64,561       43,022    
Interest expense   6,003       3,996       10,895       8,072    
Other income, net   (3,015 )     (1,908 )     (3,748 )     (3,644 )  
Income tax benefit   (3,048 )     (5,200 )     (4,167 )     (6,226 )  
Stock-based compensation   2,187       2,270       5,904       6,236    
Restructuring, integration and acquisition   206       11,325       716       11,943    
Adjusted EBITDA $ 28,388     $ 23,289     $ 55,981     $ 42,540    
                                 
Adjusted EBITDA margin   32 %     27 %     32 %     27 %  
 

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

  Three Months Ended
June 30,
 
  2025   2024  
Homes and businesses passed (1)            
Incumbent Broadband Markets 244,007     232,531    
Glo Fiber Expansion Markets 378,916     297,545    
Total homes and businesses passed 622,923     530,076    
             
Residential & Small and Medium Business (“SMB") Revenue Generating Units
("RGUs"):
           
Incumbent Broadband Markets 111,730     111,256    
Glo Fiber Expansion Markets 76,276     53,285    
Broadband Data 188,006     164,541    
Video 37,626     42,079    
Voice 26,129     24,848    
Total Residential & SMB RGUs (excludes RLEC) 251,761     231,468    
             
Residential & SMB Penetration (2)            
Incumbent Broadband Markets 45.8 %   47.8 %  
Glo Fiber Expansion Markets 20.1 %   17.9 %  
Broadband Data 30.2 %   31.0 %  
Video 6.0 %   7.9 %  
Voice 4.4 %   4.9 %  
             
Fiber route miles 17,740     16,029    
Total fiber miles (3) 1,936,922     1,798,211    

(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.
(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 (“FTTH”) passings.

Residential & SMB ARPU

  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
  2025   2024   2025   2024  
Residential & SMB Revenue:                        
Incumbent Broadband Markets   27,850     27,976     55,726     55,441  
Glo Fiber Expansion Markets   16,920     11,840     32,684     22,033  
Broadband Data $ 44,770   $ 39,816   $ 88,410   $ 77,474  
Video   14,296     14,893     28,954     29,273  
Voice   2,557     2,611     5,116     5,113  
Other   1,010     1,016     1,956     2,398  
Total Residential & SMB Revenue $ 62,633   $ 58,336   $ 124,436   $ 114,258  
                         
Average RGUs:                        
Incumbent Broadband Markets   111,779     111,689     111,653     110,472  
Glo Fiber Expansion Markets   73,514     50,888     70,691     47,525  
Broadband Data   185,293     162,577     182,344     157,997  
Video   38,076     42,443     38,666     41,869  
Voice   26,082     24,717     25,969     24,660  
                         
ARPU: (1)                        
Incumbent Broadband Markets $ 83.05   $ 83.49   $ 83.18   $ 83.64  
Glo Fiber Expansion Markets $ 76.72   $ 77.56   $ 77.06   $ 77.27  
Broadband Data $ 80.56   $ 81.64   $ 80.81   $ 81.73  
Video $ 125.15   $ 116.96   $ 124.80   $ 116.53  
Voice $ 32.68   $ 35.21   $ 32.83   $ 34.56  

(1) 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.

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.


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