SHEN

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:30 a.m. ET Vice President of Corporate Finance - Lucas Binder President and Chief Executive Officer - Edward McKay Senior Vice President and Chief Financial Officer - James Volk Operator: Good morning, everyone. Welcome to Shenandoah Telecommunications' Second Quarter 2026 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Lucas Binder, Vice President of Corporate Finance for Shentel. Please go ahead. Lucas Binder: Good morning, and thank you for joining us. The purpose of today's call is to review Shentel's results for the second quarter of 2026. Our results were announced in a press release distributed this morning. In addition, we filed our Form 10-Q with the SEC. The presentation we will be reviewing is included on the Investor page on our investor.shentel.com website. Please note that an audio replay of this call will be made available later today. The details are set forth in the press release announcing this call. With us on the call today are Ed McKay, President and Chief Executive Officer; and Jim Volk, Senior Vice President and Chief Financial Officer. After the prepared remarks, we will conduct a question-and-answer session. I refer you to Slide 2 of the presentation, which contains our safe harbor disclaimer and remind you that this conference call may include forward-looking statements subject to certain risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements. Additionally, we have provided a detailed discussion of various risk factors in our SEC filings, which you are encouraged to review. You are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements. With that, I will now turn the call over to Ed. Go ahead, Ed. Edward McKay: Thanks, Lucas. Good morning, everyone, and thank you for joining us today. Starting on Slide 4, I'll share some of our second quarter highlights. The quarter included several important milestones for Shentel and our Glo Fiber business. We achieved a record 6,200 Glo Fiber net additions during the quarter, demonstrating continued strong demand for our service. We also surpassed 100,000 Glo Fiber data customers, representing 31.3% year-over-year growth and underscoring the success of our 7-year investment in fiber-to-the-home. Fiber revenue, which includes both Glo Fiber and Commercial Fiber, grew 21.4% year-over-year in the second quarter, reflecting the strong momentum we continue to see across both fiber businesses. For the first time, our fast-growing fiber businesses represented 51% of consolidated revenue in the second quarter, exceeding the combined revenue for our incumbent Broadband and RLEC businesses. Consolidated revenue for the quarter was $93.5 million, an annual increase of 5.5% and adjusted EBITDA was $32 million, up 12.9% year-over-year. This growth reflects the success in our Fiber First strategy we put in place years ago, including our early investment in fiber-to-the-home starting in 2019, the expansion of our Commercial Fiber business through the Horizon acquisition and our continued focus on driving sustained residential and commercial growth. Our operating footprint also provides a strategic advantage with close proximity to major data center hubs in Ashburn, Virginia and Columbus, Ohio. I would like to thank our team members for their dedication and execution in achieving these results. As we complete our fiber-to-the-home build and position our business to return to positive free cash flow beginning in 2027, I'm excited about the opportunities ahead to continue building on the momentum. Turning to Slide 5. We highlight our scale integrated broadband network that spans more than 19,800 fiber route miles across 8 states with approximately 730,000 total broadband passings. As shown on the map, all planned Glo Fiber markets have now been launched, and we've added nearly 97,000 fiber passings over the past 12 months. We remain on track to substantially complete our Glo Fiber expansion in 2026, reaching 510,000 passings. On Slide 6, our sales and marketing team continues to drive strong growth across our Glo Fiber expansion markets. During the second quarter, we added over 6,000 new customers, a record for quarterly net additions and nearly 7,000 total data, video and voice revenue-generating units. Our 5-year price guarantee card introduced in the second half of 2025 continues to drive interest and is supported by the expansion of our door-to-door sales channel. Over the past 12 months, we've added approximately 24,000 new data customers and more than 26,000 total RGUs. Total Glo Fiber revenue-generating units surpassed 117,000 in the second quarter, up 30% compared to the prior year. Moving to Slide 7. Second quarter construction was strong with more than 26,000 passings added, bringing the total to more than 475,000. Penetration rose to 21.1%, a 20-basis-point increase over the first quarter and a 93-basis-point increase year-over-year. Penetration trends across our Glo Fiber cohorts are shown on Slide 8 and reflect blended penetration rates for both residential and small and medium business passings. We're expecting data penetration rates of approximately 37% 5 to 7 years after launch in the market. Our most mature cohorts launched during the 2 years ending in the third quarter of 2021 have surpassed the 5-year mark and currently average 35% penetration, providing confidence in our ability to reach our objective. In addition to providing the fastest speeds in our markets, we continue to focus on providing outstanding local customer service. As shown on Slide 9, our average monthly churn was 1.21% in the second quarter, which continues to be among the best in the industry. As expected, seasonal customer move activity was elevated during the quarter. Almost half of our churn or approximately 59 basis points was driven by customers relocating. Included in that figure are 13 basis points associated with customers who transferred their Glo Fiber service to a new address. We saw virtually no Glo Fiber churn to satellite providers during the quarter. Broadband data average revenue per user for the second quarter was down slightly sequentially year-over-year to just under $77. We continue to have success selling up the rate card and differentiating our offerings through faster speeds than our cable competitors. Customer demand for higher-speed products remained strong with more than 80% of new residential customers in the second quarter selecting speeds of 1 gig or higher, including nearly 19% choosing 2-gig service and almost 5% choosing 5-gig service. Our Commercial Fiber business is highlighted on Slide 10. In the second quarter, incremental monthly sales bookings exceeded $180,000, driven by strong demand across commercial and enterprise customers, including wireless carriers, wholesale customers and school systems. Our service delivery team had a strong quarter, installing $209,000 in new monthly revenue and the exceptional customer support from our sales and network operations teams kept average monthly compression and disconnect churn very low at 0.4%. Turning to Slide 11. We ended the second quarter with more than 110,000 broadband data customers in our incumbent broadband markets, a modest decline of less than 1% year-over-year. While total RGUs declined at a faster rate, the decrease was largely attributable to expected video subscriber losses as consumers continued the industry-wide shift towards streaming services. Total broadband passings in our incumbent markets increased slightly quarter-over-quarter, and we expect to complete approximately 1,100 additional government-subsidized fiber passings in the second half of 2026, primarily in West Virginia. As shown on Slide 12, our recently constructed subsidized passings represent a strong growth opportunity for our incumbent markets and data penetration has exceeded 40% within 18 months of a neighborhood launch. The average penetration of our 2023 cohorts is over 59% with the oldest cohort reaching more than 72%. We've already achieved an aggregate penetration of 40% across 23,000 subsidized passings. Moving to Slide 13. Broadband data monthly churn increased modestly in the second quarter to 1.73%. The increase was driven by a combination of normal seasonal move activity, wired broadband competition across roughly 35% of our passings and softer demand in rural markets with weaker demographics as inflation continues to pressure household budgets. Customer moves contributed 65 basis points of churn, including 23 basis points associated with customer transfers to another Shentel service address. The impact from satellite competition declined from the first quarter and remained a relatively small contributor to churn. We saw further improvement in June, and we'll continue to monitor competitive activity across all technologies. Broadband data ARPU declined 2.6% year-over-year to $81. As we previously disclosed, we introduced a more competitive rate card a few years ago in markets where we face wired broadband competition. Those markets drove about a 1% decline in ARPU, consistent with recent quarters. Late in the first quarter, we introduced a new rate card in our rural markets where demographics are weaker and demand was softer. The pricing change reduced ARPU by an additional 1.6%, but it has already improved the satellite-related churn we saw in the first quarter. We expect the new pricing strategy to drive higher gross adds and further churn improvement over the coming quarters. Overall, we believe these changes will maximize long-term revenue by balancing subscriber growth, retention and ARPU. I'll now turn the call over to Jim to walk you through our second quarter 2026 financial results. James Volk: Thank you, Ed, and good morning, everyone. I'll start on Slide 15 with the financial results for the second quarter. Revenue grew 5.5% to $93.5 million, driven by another quarter of strong Glo Fiber expansion market revenue growth of $6.5 million or 32.8% due to a 31.3% increase in data subscribers and stable year-over-year data ARPU. Commercial Fiber revenue grew $1.9 million or 9.8% year-over-year. This growth was driven by a combination of recurring revenue growth in the enterprise and carrier verticals, a noncash sales type lease of customer equipment in the second quarter of '26 and a negative noncash deferred revenue adjustment for one of our national wireless carrier customers in the second quarter of 2025. Fiber revenue, the combination of our fast-growing Glo and Commercial Fiber revenue grew 21.4% to 51% of total revenue in the second quarter. For the first time, fiber revenue exceeded incumbent broadband markets and RLEC revenue. Incumbent broadband markets revenue declined $2.5 million, primarily due to lower video revenue from a 14.1% decline in video RGUs as customers continue to switch to streaming video services and lower data revenues due primarily to a 2.6% decline in data ARPU. RLEC revenue declined $1 million, primarily due to lower DSL revenue from a 31% decline in DSL RGUs and lower government grant support revenues. Approximately half of the decline in DSL RGUs was due to transfers to our own broadband service. Adjusted EBITDA grew $3.6 million or 12.9% to $32 million, driven by $4.9 million in revenue growth and offset by $1.3 million in higher operating expenses. Incremental adjusted EBITDA margin was 73% in the second quarter. Adjusted EBITDA margins increased 200 basis points to 34.3% in the second quarter of '26 as compared to the second quarter of 2025. Turning to Slide 16. We reiterate our annual guidance for 2026. We expect revenues of $370 million to $377 million, adjusted EBITDA of $131 million to $136 million and CapEx, net of government grant reimbursements, to be $220 million to $250 million. We expect second half 2026 revenue and adjusted EBITDA to be favorably impacted by continued high-margin Glo Fiber revenue growth, similar to recent quarterly trends, and lower operating expenses from the previously announced reduction in force. Moving to Slide 17. We invested $146 million in capital expenditures in the first half of '26 and collected $20 million in government grants for net CapEx of $126 million. Net CapEx declined 18% for the first half 2025 due to the decline in incumbent government-subsidized construction. As of June 30, construction was complete for 95% of the subsidized passings and 93% of our target Glo Fiber passings, with both projects expected to be substantially complete by the end of 2026. I'd now like to update you on our liquidity and debt maturities on Slide 18. As of June 30, we had $728 million in outstanding debt, $674 million of net debt. We have no debt maturities until 2029 and 78% of our debt is fixed rate, providing meaningful protection for potential increases in short-term interest rates. Total available liquidity was $159 million, consisting of $24 million of cash and cash equivalents, $31 million in restricted cash as required by the ABS Indenture, $2 million available under the VFN, $75 million available under the revolving credit facility and $27 million remaining reimbursements under government grants. In addition, the company has over $105 million of VFN commitments that are not available to draw as of June 30. However, we expect the available VFN capacity to reach the commitment levels with continued growth in the secured fiber network revenues from the ABS entities. In summary, as noted on Slide 19, we have 3 catalysts converging that we expect will lead us to generating and growing positive free cash flow in 2027 and beyond: Low double-digit adjusted EBITDA growth rates driven by our fiber businesses, declining capital intensity as we exit the construction phase of our business plan and declining cost of capital after refinancing our debt in December 2025. Thank you, operator, and we're now ready for questions. Operator: Our first question will be coming from the line of Christian Schwab of Craig-Hallum. Christian Schwab: Congrats on the good quarter. I'm wondering if you could give us an update. We kind of talked about it a little bit last quarter on the data center opportunity. I know in your geographical footprint, we got 20 data centers sitting in Ohio, and we have a lot in Virginia. I'm wondering if there's anything new to report there. Edward McKay: Christian, this is Ed. We don't have anything specific to report at this time. I will state that we're making progress there. We do have a master service agreement in place with a major hyperscaler that will enable them to potentially buy services in the future. So we're still confident in the opportunity going forward. Christian Schwab: Great. I know I think you kind of talked about before that you maybe would need multiple customers to really make a go at that, if you will. But since you do have an MSA with one, is one customer good enough that the terms and opportunity is right? Edward McKay: So the advantage we have, we have existing fiber and existing conduit in close proximity to some of these data centers. So that gives us an advantage where we can provide the service without having to make a significant capital investment as other providers may. Christian Schwab: Okay. Fantastic. And then just as we do transition the business model from heavy CapEx to CapEx light and free cash flow positive. I just wanted to confirm again that the target over the next couple of years is still kind of a 40% consolidated EBITDA margin target and 50% long-term. That's still accurate, right? James Volk: Yes, Christian, that is accurate. We expect to grow EBITDA margins by 300 to 400 basis points a year for the next couple of years and expect that we have clear visibility to get to 40% in a couple of years. Operator: Our next question is coming from Hamed Khorsand of BWS Financial. Hamed Khorsand: So first off, could you just talk a little bit more about the competitive landscape? I know you were talking about the pricing solved some of your issues with the satellite. Are you seeing any other encroachment in your markets? And is the pricing list that you have now solving that issue? Edward McKay: Hamed, I appreciate the question. We mentioned in the script, we have about 35% of our incumbent broadband footprint that overlaps with a wired competitor. We believe we're priced competitively there. Our prices are typically lower than that wired competitor with similar bandwidth. And as far as the satellite competition, I mentioned, the impact has been minimal. Really, the only place we saw any impact at all was in our rural markets. We believe with our new rate card, we're well positioned there because the bottom line is we have faster speeds, we have superior latency and we believe we have superior customer service as well. So we believe we are well positioned going forward. Hamed Khorsand: Okay. And then could you just talk about if you're increasing your sales efforts on the commercial SMB side and what the growth opportunity is there for you? Edward McKay: So we have added additional resources on the commercial side and particularly on the SMB side as well. We are seeing good progress there. And we've mentioned previously, with the data center activity, we think this is basically a new growth opportunity for us above and beyond what we've traditionally seen. So we're optimistic about the growth. Operator: Our next question is coming from the line of Vikash Harlalka of New Street Research. Vikash Harlalka: I just wanted to go back to the satellite question. You mentioned that there was no impact on churn in 2Q. What exactly changed from 1Q to 2Q? Was it just your pricing? Did satellite pull back on marketing? Any color there would be very helpful. And then if we sort of flip that the other way around, do you see a lot of satellite customers switch to Glo Fiber when you build fiber in a market where satellite was the only viable option? Edward McKay: Yes. So as I mentioned during the script, no impact that was material at all in Glo Fiber, just a minimal impact in the incumbent broadband markets in the rural areas. So I think our new rate card helped bring satellite churn down in the second quarter. With our service, you can get double the speed for a lower price than satellite offers currently. That was certainly a factor. But I think satellite also backed off some of their aggressive promotions. They were giving away free equipment. That's now gone to a lease. They also had some low introductory rates. They backed off those as well. So I think the combination of those 2 certainly reduced churn in the second quarter. And I mentioned we saw a significant reduction in June as well. So we think we're on a good trajectory there. And as far as our Glo Fiber markets with the satellite customers moving to Glo Fiber, I don't think we have good visibility into that. So I think we're primarily gaining customers from the incumbent cable provider and then new customers moving into the area. I would say it's probably less of an impact from migrations from Starlink or some other provider to our service. Operator: And there are no more questions in the queue. I would like to turn the call back over to Ed McKay for closing remarks. Please go ahead. Edward McKay: Thank you. We appreciate your time today, and we look forward to updating you in future quarters. Operator: This concludes today's program, and thank you so much for joining. You may now disconnect. Before you buy stock in Shenandoah Telecommunications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shenandoah Telecommunications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Interested in Shenandoah Telecommunications Co? Here are five stocks we like better. Second-quarter results improved: Revenue rose 5.5% year over year to $93.5 million, while adjusted EBITDA increased 12.9% to $32 million, lifting the margin to 34.3%. Fiber became the company’s largest revenue engine: Fiber revenue grew 21.4% and exceeded half of total revenue for the first time. Glo Fiber added a record 6,200 customers, surpassing 100,000 data customers, while total passings exceeded 475,000. 2026 outlook was reaffirmed: Shentel maintained revenue guidance of $370 million to $377 million, adjusted EBITDA guidance of $131 million to $136 million, and net capital expenditure guidance of $220 million to $250 million. Management expects positive free cash flow in 2027 as fiber construction winds down. Shenandoah Telecommunications (NASDAQ:SHEN) reported second-quarter revenue growth and higher adjusted EBITDA as its Glo Fiber expansion and commercial fiber operations continued to gain scale, with fiber businesses accounting for more than half of consolidated revenue for the first time. Revenue rose 5.5% from a year earlier to $93.5 million, while adjusted EBITDA increased 12.9% to $32 million. Adjusted EBITDA margin expanded 200 basis points year over year to 34.3%. → This Tiny AI Supplier Could Be More Important Than the Chipmakers President and Chief Executive Officer Ed McKay said the quarter included several milestones for the company’s fiber-first strategy. Glo Fiber added a record 6,200 net data customers during the quarter and surpassed 100,000 data customers, a 31.3% increase from the prior year. Total Glo Fiber revenue-generating units exceeded 117,000, up 30% year over year. Fiber revenue, which includes Glo Fiber and commercial fiber operations, climbed 21.4% year over year and represented 51% of total second-quarter revenue. It was the first quarter in which fiber revenue exceeded the combined revenue from the company’s incumbent broadband markets and rural local exchange carrier, or RLEC, business. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Glo Fiber expansion-market revenue increased $6.5 million, or 32.8%, driven by subscriber growth and stable year-over-year data average revenue per user, according to Chief Financial Officer Jim Volk. Commercial fiber revenue increased $1.9 million, or 9.8%, aided by recurring revenue gains in enterprise and carrier customer segments, as well as certain non-cash items. Meanwhile, incumbent broadband-market revenue declined $2.5 million, largely due to lower video revenue as customers continued shifting to streaming services. Video revenue-generating units fell 14.1% year over year, while incumbent broadband data ARPU declined 2.6% to $81. RLEC revenue declined by $1 million, primarily reflecting lower DSL revenue and reduced government grant-support revenue. → Innovative ETF Strategies That Are Paying Off This Summer McKay said the company’s Glo Fiber construction added more than 26,000 passings in the second quarter, bringing its total Glo Fiber passings to more than 475,000. Shentel expects to substantially complete its Glo Fiber expansion in 2026, reaching approximately 510,000 passings. It ended the quarter with roughly 730,000 total broadband passings across eight states and more than 19,800 fiber route miles. Glo Fiber penetration reached 21.1% during the quarter, up 20 basis points sequentially and 93 basis points from a year earlier. The company expects data penetration of about 37% five to seven years after entering a market. Its most mature Glo Fiber cohorts, launched through the third quarter of 2021, averaged 35% penetration after surpassing the five-year mark. Glo Fiber monthly churn averaged 1.21% in the second quarter. McKay said nearly half of churn, or about 59 basis points, reflected customers relocating. He added that the company saw virtually no Glo Fiber churn to satellite providers. More than 80% of new residential Glo Fiber customers selected speeds of one gigabit or higher during the quarter. That included nearly 19% choosing two-gig service and almost 5% selecting five-gig service. Glo Fiber broadband data ARPU was just under $77, down slightly year over year. In incumbent markets, monthly broadband data churn rose modestly to 1.73%, which management attributed to seasonal moving activity, wired competition in about 35% of passings, and weaker demand in some rural markets. The company introduced a new rural-market rate card late in the first quarter, which reduced ARPU by an additional 1.6% but improved satellite-related churn, McKay said. During the question-and-answer session, McKay said satellite providers had reduced some aggressive promotions, including free equipment offers and lower introductory pricing. He said those changes, together with Shentel’s new pricing, contributed to lower satellite-related churn in the second quarter and further improvement in June. Commercial fiber incremental monthly sales bookings exceeded $180,000 in the second quarter, while service delivery installations added $209,000 in new monthly revenue. The business served demand from commercial and enterprise customers, including wireless carriers, wholesale customers and school systems. Average monthly compression and disconnect churn in commercial fiber was 0.4%. McKay said Shentel has added resources to its commercial and small-to-medium business sales efforts. He also pointed to potential data center demand near major hubs in Ashburn, Virginia, and Columbus, Ohio. While the company had no specific data center customer developments to report, McKay said it has a master service agreement with a major hyperscaler that could enable future purchases of services. He said Shentel’s existing fiber and conduit near some data centers could allow it to provide services with less capital investment than some competitors. Shentel reiterated its full-year 2026 guidance: Revenue of $370 million to $377 million Adjusted EBITDA of $131 million to $136 million Capital expenditures, net of government grant reimbursements, of $220 million to $250 million Volk said second-half revenue and adjusted EBITDA should benefit from continued high-margin Glo Fiber growth and lower operating expenses from a previously announced reduction in force. The company invested $146 million in capital expenditures during the first half of 2026 and collected $20 million in government grants, resulting in net capital expenditures of $126 million, down 18% from the first half of 2025. Construction was complete for 95% of subsidized passings and 93% of targeted Glo Fiber passings as of June 30. Shentel ended the quarter with $728 million of outstanding debt and $674 million of net debt. Total available liquidity was $159 million, and the company said it has no debt maturities until 2029. Volk said 78% of debt was fixed rate. Management said it expects to begin generating positive free cash flow in 2027 as fiber-driven EBITDA growth combines with declining capital intensity after construction projects are completed. McKay also said the company expects EBITDA margins to expand by 300 to 400 basis points annually over the next several years, with visibility to reaching a 40% consolidated margin within a couple of years. Shenandoah Telecommunications Company operates as a diversified communications provider offering both wireless and wireline services across rural markets in the Mid-Atlantic region. Headquartered in Edinburg, Virginia, the company designs, builds and maintains network infrastructure to deliver mobile connectivity, high-speed broadband access and related telecommunications solutions to residential, business and wholesale customers. In its wireless segment, the company owns and operates a portfolio of cellular towers and associated spectrum under a long-term partnership with a national carrier. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Shenandoah Telecommunications Q2 Earnings Call Highlights" was originally published by MarketBeat. 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EDINBURG, Va., July 29, 2026 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel” or the “Company”) (Nasdaq: SHEN) announced second quarter 2026 financial and operating results. Second Quarter 2026 Highlights Glo Fiber Expansion Markets revenue grew 32.8% year over year to $26.3 million. Total revenue increased 5.5% year over year to $93.5 million. Net loss was $7.7 million compared to $9.0 million in the second quarter of 2025. Adjusted EBITDA1 grew 12.9% year over year to $32.0 million. “The second quarter marked several exciting milestones for Shentel. We added our 100,000th Glo Fiber customer and achieved a record 6,200 Glo Fiber net additions,” said Ed McKay, President and CEO. “Our fiber businesses2 continue to build strong momentum, now representing 51% of our total revenue and delivering 21% year-over-year growth during the quarter." Shentel’s second-quarter earnings conference call will be webcast at 8:30 a.m. ET on Wednesday, July 29, 2026. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/. Second Quarter 2026 Results Compared with Second Quarter 2025 Residential & SMB - Glo Fiber Expansion Markets3 revenue (28.1% of total) increased $6.5 million, or 32.8%, primarily due to a 32.1% increase in data revenue generating units (“RGUs”) driven by the Company’s increase in penetration rates and increase in passings. Residential & SMB - Incumbent Broadband Markets4 revenue (43.1% of total) decreased $2.6 million, or 6.0%, due to lower video and data revenue. Video revenue declined due to a 14.1% decrease in video RGUs as customers switched to streaming video services. Data revenue declined due to a 2.6% 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 (22.9% of total) increased $1.9 million, or 9.8%, due to a combination of recurring revenue in the enterprise and carrier verticals, a non-cash sales-type lease of customer equipment and a negative non-cash deferred revenue adjustment for one of our national wireless carrier customers in the second quarter of 2025 RLEC & Other revenue (5.9% of total) decreased $0.9 million, or 14.7%, primarily due to the decrease in DSL RGUs and to a lesser extent a decrease in government support revenue. Cost of services increased by $0.1 million, or 0.2% primarily due to increased fleet maintenance and fuel expenses. Selling, general and administrative expense increased by $1.3 million, or 4.3%. The increase was primarily due to higher operating and property taxes, higher advertising to support RGU growth and higher software maintenance expenses. Restructuring, integration and acquisition expense decreased by $0.1 million, or 35.0%. The decrease was primarily due to fees incurred in the prior year to amend debt terms. Depreciation and amortization decreased by $4.5 million, or 12.8%. The decrease was primarily due to a $4.2 million write-off in the prior year related to inventory assets that were no longer planned to be used. ____________________________1 See “Non-GAAP Financial Measures” below for a reconciliation to the most comparable GAAP measure.2 Represents Residential/SMB - Glo Fiber Expansion Markets + Commercial Fiber3 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 $146.2 million for the six months ended June 30, 2026, compared with $169.4 million for the six months ended June 30, 2025. The $23.2 million decrease in capital expenditures was primarily driven by lower capital expenditures on government grant construction projects in Incumbent Broadband Markets. The Company received $20.6 million and $17.3 million in government grant cash receipts during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the Company’s total available liquidity was $158.9 million, consisting of (i) unrestricted cash and cash equivalents totaling $23.9 million; (ii) restricted cash as required by the ABS Indenture totaling $30.9 million; (iii) $74.8 million of availability under Shentel Broadband’s Revolving Credit Facility; (iv) $1.9 million under Shentel Issuer’s Variable Funding Note (“VFN”); and (v) an aggregate of $27.4 million remaining reimbursements available under government grants, subject to fulfilling the terms of the underlying agreements. In addition, the Company has $105.1 million of VFN commitments that are not available to draw as of June 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. 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, which is expected to be substantially complete by the 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. During the six months ended June 30, 2026, Shentel incurred $2.2 million in severance expense, included in restructuring, integration and acquisition expense in the condensed consolidated statements of operations. The Company made $0.4M of severance payments during this period. 2026 Financial Outlook The Company reiterates its 2026 financial guidance. 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, July 29, 2026Time: 8:30 a.m. ETListen 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 19,800 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] _______________________________________________________ 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. 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. Non-GAAP Financial MeasuresAdjusted 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 ______________________________________________________(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. ______________________________________________________(1) Average Revenue Per RGU calculation = (Residential & SMB Revenue) / average RGUs / 3 months.

This article first appeared on GuruFocus. Consolidated Revenue: $93.5 million, an increase of 5.5% year-over-year. Adjusted EBITDA: $32 million, up 12.9% year-over-year. Fiber Revenue Growth: 21.4% year-over-year, representing 51% of total revenue. Glo Fiber Net Additions: Record 6,200 net additions in the quarter. Glo Fiber Data Customers: Surpassed 100,000, with 31.3% year-over-year growth. Commercial Fiber Revenue Growth: $1.9 million or 9.8% year-over-year. Broadband Data ARPU: Declined 2.6% year-over-year to $81. Capital Expenditures: $146 million in the first half of 2026, with $20 million collected in government grants. Net Debt: $674 million as of June 30, 2026. Total Available Liquidity: $159 million as of June 30, 2026. Warning! GuruFocus has detected 6 Warning Signs with SHEN. Is SHEN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Shenandoah Telecommunications Co (NASDAQ:SHEN) achieved a record 6,200 Glo Fiber net additions during the quarter, indicating strong demand for their services. Fiber revenue, including Glo Fiber and Commercial Fiber, grew 21.4% year-over-year, reflecting strong momentum in their fiber businesses. For the first time, fiber businesses represented 51% of consolidated revenue, surpassing incumbent broadband and ILEC businesses. Adjusted EBITDA increased by 12.9% year-over-year to $32 million, demonstrating effective execution of their fiber-first strategy. The company has a strategic advantage with its operating footprint close to major data center hubs, enhancing growth opportunities. Incumbent broadband markets revenue declined by $2.5 million, primarily due to lower video revenue and a decline in data ARPU. RLEC revenue decreased by $1 million, driven by a significant decline in DSL RGUs and lower government grant support revenues. Broadband data ARPU declined 2.6% year-over-year, influenced by competitive pricing strategies in markets with wired broadband competition. Broadband data monthly churn increased to 1.73% due to seasonal move activity and competition in rural markets with weaker demographics. The company faces challenges from satellite competition, particularly in rural markets, although recent pricing strategies have mitigated some impact. Q: Can you provide an update on the data center opportunity within your geographical footprint, particularly in Ohio and Virginia? A: Edward McKay, President and CEO, stated that while there is no specific update, progress is being made. They have a master service agreement with a major hyperscaler, which positions them well for future service opportunities. Q: Is one customer sufficient to pursue the data center opportunity, given the existing master service agreement? A: Edward McKay explained that their existing fiber and conduit near data centers provide an advantage, allowing them to offer services without significant capital investment, making it feasible with even one customer. Q: As you transition to a CapEx-light model, is the target of a 40% consolidated EBITDA margin in the next few years and 50% long-term still accurate? A: James Volk, CFO, confirmed that they expect to grow EBITDA margins by 300 to 400 basis points annually over the next few years, with clear visibility to reach a 40% margin in a couple of years. Q: Could you elaborate on the competitive landscape and whether your pricing strategy is addressing satellite competition effectively? A: Edward McKay noted that they are competitively priced, especially in areas with wired competitors. The impact from satellite competition has been minimal, and their new rate card positions them well with faster speeds and superior service. Q: Are you increasing sales efforts on the commercial SMB side, and what is the growth opportunity there? A: Edward McKay mentioned that additional resources have been added to the commercial and SMB sides, and they are seeing good progress. The data center activity presents a new growth opportunity beyond traditional markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

EDINBURG, Va., July 27, 2026 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (Shentel) (NASDAQ:SHEN) announced that Ed McKay, Chief Executive Officer, Jim Volk, Chief Financial Officer, and Lucas Binder, Vice President of Corporate Finance will be participating in the following investor conferences in the third quarter 2026: Moffett Nathanson will be hosting a virtual panel meeting discussing Fiber Overbuilding: Economics of Smaller / Less Dense Markets being held August 5, 2026 at 11:00 am ET. Jim Volk will be presenting on the panel. The KeyBanc Capital Markets Technology Leadership Forum being held at the Montage Deer Valley, Park City, UT. Jim Volk will present on August 10, 2026 at 1:00 pm MT. Investors may access a live webcast of the presentation at this link on our investor relations website. The webcast will be available for replay for a limited time following the presentation. Jim will be hosting meetings at the conference. TD Cowen’s 12th Annual Communications Infrastructure Summit being held at the St. Julien Hotel & Spa, Boulder, CO. Lucas Binder will be hosting investor meetings on August 11, 2026. 2026 Seaport Research Partners Annual Summer Investor Conference is taking place virtually. Lucas Binder will be hosting investor meetings on August 18 & 19, 2026. 18th Annual BWS Financial Growth and Value Summer Investor Series is taking place at the American Management Association Building in New York, NY. Lucas Binder will be hosting investor meetings on August 25, 2026. The Bank of America 2026 Media, Communications & Entertainment Conference being held at the Bank of America Pavilion, New York, NY. Ed McKay will present on September 9, 2026. The specific time of the presentation and link, once confirmed, can be found on our investor relations website. The webcast will be available for replay for a limited time following the presentation. Ed will be hosting meetings at the conference. The Citi 2026 Global TMT Conference being held at the New York Hilton Midtown, New York, NY. Ed McKay will present on September 10, 2026 at 8:50 am ET. The presentation link, once confirmed, can be found on our investor relations website. The webcast will be available for replay for a limited time following the presentation. Ed will be hosting meetings at the conference. About Shenandoah Telecommunications Company 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 19,400 route miles of fiber. For more information, please visit www.shentel.com. CONTACT: Shenandoah Telecommunications Company Lucas BinderVice President of Corporate Finance(540) [email protected]

Image source: The Motley Fool. Friday, May 1, 2026 at 8:30 a.m. ET President and CEO — Edward McKay EVP and CFO — James Volk Edward McKay: Thanks, Lucas. Good morning, everyone, and thank you for joining us today. Starting on Slide 4, I'll share some of our first quarter highlights. During the quarter, we released 22,000 passings to sales, bringing our total Glo Fiber expansion markets passings to 449,000. We added approximately 6,000 Glo Fiber net customers in the first quarter, a 9% improvement over the prior year period, and we now serve a total of 94,000 customers. Our Commercial Fiber business also delivered a strong quarter with 196,000 in sales bookings and revenue growth of 4.7% year-over-year. Collectively, these results demonstrate the excellent momentum we continue to see in our fiber businesses. We were also pleased with our first quarter financial results. Consolidated revenues and adjusted EBITDA grew 4.8% and 15% year-over-year, respectively, and we remain on track to deliver positive free cash flow in 2027. Turning to Slide 5. We highlight our integrated broadband network that spans more than 19,000 fiber route miles across 8 states with over 700,000 total broadband passings. As shown on the map, all planned Glo Fiber markets have now been launched, and our primary focus is adding passings in our existing Virginia, Pennsylvania, Maryland and Ohio markets. We remain on track to complete our Glo Fiber expansion in 2026, reaching 510,000 passings. On Slide 6, our sales and marketing team continues to drive strong growth across our Glo Fiber expansion markets. And during the first quarter, we added approximately 6,000 new customers and nearly 7,000 total video, voice and data revenue-generating units. Our 5-year price guarantee rate card introduced in the second half of 2025 is gaining traction, supported by the expansion of our door-to-door sales channel. Over the past 12 months, we have added more than 23,000 new data customers, more than 26,000 total RGUs as well. Total Glo Fiber revenue-generating units surpassed 110,000 in the first quarter, up 31% compared to the prior year. Moving to Slide 7. First quarter construction was strong with over 22,000 passings added, bringing the total to more than 449,000. Coupled with the continued increase in homes passed, penetration rose to 20.9%, a 30 basis point increase over the fourth quarter and 150 basis point increase year-over-year. Penetration trends across our Glo Fiber cohorts are shown on Slide 8 and reflect blended penetration rates for both residential and small and medium business passings. We are expecting data penetration rates of approximately 37%, 5 to 7 years after launching the market, and our most mature cohorts launched in 2019 and 2020 have now exceeded this with an average penetration rate of 37.5%. In addition to providing the fastest speeds in our markets, we continue to focus on providing outstanding local customer service. As shown on Slide 9, our average monthly churn was 0.92% in the first quarter, which continues to be among the best in the industry. Broadband data average revenue per user for the first quarter was stable sequentially and year-over-year at more than $77. We continue to have success selling up the rate card with nearly 82% of our new residential customers in the first quarter, selecting speeds of 1 gig or higher, including 18% choosing 2-gig service and 5% choosing 5-gig service. Our commercial fiber business is highlighted on Slide 10. In the first quarter, incremental monthly sales bookings exceeded 196,000, driven by strong demand from wireless carriers, wholesale customers and school systems. Our service delivery team installed 167,000 in new monthly revenue during the quarter and the acquired Verizon backlog that drove elevated installation activity in 2025 is now substantially complete. Average monthly compression and disconnect churn remained very low at 0.4% in the first quarter, reflecting exceptional support from both our network operations center and sales team. Turning to Slide 11. We show our operating results for our incumbent broadband markets. At the end of the first quarter, we served more than 111,000 broadband data customers. Data, voice and video RGUs totaled more than 156,000 at year-end, down 4% year-over-year, primarily due to video customers moving to online streaming services. Total broadband passings in our incumbent markets stayed steady compared to the fourth quarter, and we expect to complete 1,800 additional government-subsidized incumbent grant passings in 2026, primarily in West Virginia. As shown on Slide 12, the recently constructed subsidized passings represent a strong growth segment for our incumbent markets with data penetration exceeding 40% within 6 quarters of a neighborhood launch. Average penetration in our 2023 cohorts is over 52% with the oldest cohort reaching 71%. We've already achieved an aggregate penetration of 37% across 23,000 subsidized passings. Moving to Slide 13. Monthly broadband data churn was stable sequentially and up modestly year-over-year at 1.46% for the first quarter. The slight uptick in churn was due to promotional activity from satellite competition in some of our most rural markets without a fixed Wireline competitor. In these markets, we implemented a speed increase late in the first quarter, providing customers with higher speeds at the same price to better differentiate our service from satellite offerings. Across approximately 1/3 of our passings where we face another fixed broadband competitor, our rate card strategy of offering greater value with higher speeds at the same price continues to be effective at mitigating churn. As expected, broadband data ARPU declined 1.6% from a year ago to $82, driven by the addition of new customers with more aggressive pricing in our competitive markets. I'll now turn the call over to Jim to walk you through our first quarter financial results. James Volk: Thank you, Ed, and good morning, everyone. I'll start on Slide 15 with financial results for the first quarter. Revenues grew 4.8% to $92.2 million, driven by another quarter of strong Glo Fiber expansion market revenue growth of $6.4 million or 34.6% due to a 33.7% increase in data subscribers and stable data ARPU. Commercial Fiber revenue grew $900,000 or 4.7% year-over-year, driven primarily by growth among existing customers in the enterprise and carrier verticals. Incumbent broadband markets revenue declined $2.2 million, primarily due to lower video revenue from a 14.6% decline in video RGUs as customers switched to streaming video services and to a lesser extent, lower data revenues due to a 1.6% decline in data ARPU from a more aggressive rate card in competitive markets. RLEC revenues declined $800,000, primarily due to lower DSL revenue from a 28% decline in DSL RGUs and lower government grant support revenues. Approximately half of the decline in DSL RGUs was due to customer upgrades to our broadband service. Adjusted EBITDA grew $4.1 million or 15% to $31.7 million, driven by $4.3 million in revenue growth and slightly higher operating expenses. Adjusted EBITDA margins increased 300 basis points to 34.4% in the first quarter of 2026 as compared to the first quarter 2025 due to a combination of high incremental margins in Glo Fiber, fewer lower-margin video customers and a favorable true-up related to a government grant. Turning to Slide 16. We reiterate our annual guidance for 2026. We expect revenues of $370 million to $377 million, adjusted EBITDA of $131 million to $136 million and CapEx net of grant reimbursements to be $220 million to $250 million. Moving to Slide 17. We invested $75.8 million in capital expenditures in the first quarter 2026 and collected $11.5 million in government grants for net CapEx of $64.3 million. CapEx declined 16% compared to the first quarter of 2025 due to completing 91% of the incumbent broadband markets government subsidized builds to unserved areas in 2025. We have also completed construction of 88% of our target Glo Fiber passings as of March 31 and expect to complete the Glo Fiber expansion by the end of '26. I'd now like to update you on our liquidity and debt maturities on Slide 18. As of March 31, we had $707 million in outstanding debt and $636 million of net debt. We have no debt maturities until 2029. Total available liquidity was approximately $195 million as of March 31, consisting of $44 million of cash and cash equivalents, $27 million in restricted cash, $18 million available under the VFN, $68 million available under the RCF and $38 million remaining reimbursements available under government grants. In addition, the company has over $117 million of VFN commitments that are not available to draw as of March 31. We expect the available VFN capacity to reach the commitment levels with continued growth in the secured fiber network revenues from the ABS entities. In summary, as noted on Slide 19, we have 3 catalysts converging that we expect will lead us to generating and growing positive free cash flow in 2027 and beyond. low double-digit adjusted EBITDA growth rates driven by our fiber businesses, declining capital intensity as we exit the construction phase of our business plan and declining cost of capital after refinancing our debt in 2025. Thank you. And operator, we are now ready for questions. Operator: [Operator Instructions] Our first question comes from Hamed Khorsand with BWS Financial. Hamed Khorsand: First question is just, are you seeing any changes or challenges in adding subscribers given the competitive nature that you're talking about in your markets? Edward McKay: In our Glo Fiber markets, we're not. Our net adds were up 9% over the first quarter of 2025. So we're very pleased with our progress there. We did mention in our incumbent markets, we did see a little bit of churn to Starlink with some of the promotional offers they launched in the first quarter. But other than that, we're on plan as expected. Hamed Khorsand: Okay. And then as far as the change of goes ending your construction phase and going into more of a subscriber growth phase here, are you going to be increasing marketing expense? Or is this -- should we expect just CapEx to decline and it's just going to be incremental here to cash flow? Edward McKay: Yes. I would expect marketing expense to be similar and the primary impact will be the decline in CapEx. Operator: Our next question comes from Christian Schwab with Craig-Hallum. Christian Schwab: Yes. Congratulations on the solid results. On your ASP on the Glo Fiber business and the recent areas and trends of moving from just not just 1 gig speed or higher at 82%, but having people want 2% and 5%. Do you think those trends are sustainable over a multiyear period? And do you have any target expectations for customers' needs for higher speeds at 2 gigabytes, excuse me, and above as your penetration rates go to your target levels on the fiber that's been laid in the last few years, meaning your blended ASP at $77, I think in most markets, your 1 gig product is priced around $65. So do you see ASP trends in that business increasing over time? Or is it too early to tell? Edward McKay: I'd say medium term, we are offering 5-year price guarantees on the higher speed tiers. But longer term, I think there's opportunity there. And we were very pleased with the speed mix in the past quarter. The demand is out there for those higher speeds, and we do think that's sustainable going forward. Christian Schwab: Okay. Fantastic. And then on the commercial fiber business, could you just remind us what your growth objectives are there and how you see that market over a multiyear time frame doing for you? And the potential for you to add additional subscribers? Edward McKay: Well, I'll start, and then I'll pass it over to Jim. One opportunity we do see is with the data centers moving out to our more rural areas, we think that's an additional opportunity for incremental revenue. We're really not playing in the hyperscalers space today. There have been several data center announcements in our markets. We think we certainly have the opportunity to win our share of those services, and that would be additive to our current revenue. And I'll let Jim talk a little about the growth projections. James Volk: Yes, Christian, we're generally expecting mid-single-digit revenue growth rates from the commercial business over like a 3- or 4-year period. It's important to note, this is a little bit of a lumpy business. Some of the larger deals like what Ed mentioned that we're working on, on the hyperscalers and some of the carrier business tends to be a little lumpy. But we do have -- each quarter, we're adding more enterprise customers along the way as well. But yes, we think there's a nice growth opportunity here in the mid-single-digit growth rates. Christian Schwab: Great. And then a follow-up on the data center for clarity. Can you just remind us of the miles of fiber that you have and the connectivity potential that you have in data center so people can understand maybe potentially a little bit better why data center customers would be coming to you? Edward McKay: So 19,000-plus route miles of fiber in total. Our fiber network stretches from Chicago all the way to the Washington, D.C., Ashburn, Virginia area. We get major markets in between like Columbus, Ohio, like Pittsburgh. And we have many unique fiber routes. So as these data centers move out further from the metropolitan areas, seeking areas with land and power, we believe we have the opportunity to take advantages of those unique fiber routes that we have and gain some of that business. Christian Schwab: Can you give us an idea what the revenue potential would be not this year, but over a multiyear time frame, given that trend as data centers move out a little bit away from metro into rural areas that might want to take advantage of your 19,000 fiber miles. Can you give us an idea of the revenue potential, not an estimate, but maybe an aspiration or goal that you guys may have for that market? James Volk: Yes, Christian, I think it would be a little premature to get into revenue expectations. But I can tell you, there is about 20 data centers being either built or being built close to our fiber in the 8 states that we operate in. So not clear to me whether all of them are actually going to get built. But if they do get built, we think we're in a prime position to win some business. Operator: [Operator Instructions] Our next question comes from Vikash Arlaka with New Street Research. Vikash Harlalka: There's a lot of concern among broadband investor base around pricing power and broadband ARPU growth for the industry. Do you think that broadband businesses have pricing power today? Or are we entering a period of deflation for the business? And then I have a follow-up. Edward McKay: So I'll say in our Glo Fiber business, we're expecting fairly flat ARPU in the near term. I think over time, we do gain that pricing power. And then our incumbent business, we mentioned earlier, as we've seen some competition in our markets, we have seen a slight decline in ARPU there. So it's -- I think it's a bit of a mix depending on which business you're looking at. James Volk: Add to that. In our incumbent business, about 2/3 of the passings, we are the only fixed wireline provider. So we do think we have some pricing power there as well. Vikash Harlalka: Got it. That's helpful. And then I just wanted to go back to your comment about increased competition from Starlink during the quarter. It sounds like the competition was mainly because Starlink had some promotions. And so did you lose customers on the growth add side or churn or both? And do you see this competition as continuing from here? And if so, what's your plan on addressing this increased competition? Edward McKay: So we only saw the impact in the most rural areas of our incumbent broadband market. We saw really no impact in Glo Fiber and no impact in the majority of our incumbent passings. So what they started offering in the first quarter was $15 off for 4 months as a promotion. But I think the biggest factor was they offered free equipment. It was previously $350 , so we'll see how long this lasts. They could be offering these promotions in preparation for a potential IPO later this year. But we have the ability to increase speeds. So we've done that. Late in the first quarter, we increased speeds significantly in our rural incumbent areas. Most of those customers that left were on legacy rate cards. So we've given those customers more value for the same price, and we think that will help mitigate. Operator: Our next question comes from Christian Schwab with Craig-Hallum. Christian Schwab: Yes. Just a quick follow-up on that. Just on the Starlink promotion in your most rural market, these are very slow speeds. Can you just quantify a little bit more clarity around your commentary to compete with Starlink, how you increased -- give us an idea of what speed you were operating at to what speed you can move customers to compete with Starlink because this really isn't the competition for fiber at 1, 2 and 5 gig speeds. Edward McKay: Yes. So in all of these markets, we have the ability to offer gigabit speeds. And I think it was a -- customers were looking for a potentially lower-priced alternative. But when you compare our pricing to Starlink's pricing, after that promotional discount expires, we're actually favorable from a pricing standpoint and a speed standpoint. So we'll see how long these customers stay on Starlink. We certainly think we have the opportunity to win some of those back as well. Operator: Thank you. I would now like to turn the call back over to Ed McKay for any closing remarks. Edward McKay: Thank you for joining us today. We look forward to updating you on our progress in the future quarters. And operator, that concludes our call. Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Shenandoah (SHEN) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Glo Fiber momentum continues with a 9% year-over-year improvement in net customer additions, driven by the successful launch of all planned expansion markets. Management attributes strong Glo Fiber penetration growth to a new 5-year price guarantee rate card and the strategic expansion of door-to-door sales channels. Commercial Fiber growth of 4.7% was fueled by demand from wireless carriers and enterprise customers, with the Verizon acquisition integration now substantially complete. Incumbent market performance faced headwinds from video-to-streaming cord-cutting and targeted promotional competition from satellite providers in rural areas. Operational focus is shifting from heavy construction to maximizing penetration across the existing 19,000-mile fiber footprint. The company maintains a competitive edge in incumbent markets where it remains the sole fixed wireline provider for approximately two-thirds of passings. Management reiterated 2026 guidance, expecting to reach 510,000 Glo Fiber passings and complete the current expansion phase by year-end. The company projects achieving positive free cash flow in 2027, driven by double-digit EBITDA growth and significantly declining capital intensity. Future revenue growth in Commercial Fiber is expected to be in the mid-single digits, though management noted this segment can be lumpy due to large carrier deals. Strategic positioning for data center connectivity is a key long-term priority as facilities migrate toward rural areas with available land and power. Capital expenditures are expected to decline as the business exits its primary construction phase, with marketing expenses remaining stable to support subscriber acquisition. A slight uptick in incumbent market churn to 1.46% was specifically linked to Starlink's aggressive first-quarter promotions, including free equipment offers. Management responded to satellite competition by implementing significant speed increases for rural customers at no additional cost to enhance the value proposition. Adjusted EBITDA margins expanded by 300 basis points, aided by a favorable government grant true-up and a shift away from lower-margin video services. Liquidity remains stable at $195 million with no debt maturities until 2029, following a strategic debt refinancing in 2025. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management reported that 82% of new residential customers select 1-gig or higher, with 23% opting for 2-gig or 5-gig services. While 5-year price guarantees are currently in place, management believes there is significant long-term opportunity for ARPU growth as high-speed demand persists. The impact was isolated to the most rural incumbent areas; Glo Fiber markets saw no impact from satellite promotions. Management noted that Shentel remains price-favorable compared to Starlink once promotional discounts expire, and they are leveraging their ability to offer gigabit speeds to win back customers. There are approximately 20 data centers being built or planned near Shentel's fiber footprint across 8 states. Management views their unique fiber routes between Chicago and Ashburn, Virginia, as a primary competitive advantage for capturing this 'hyperscaler' and enterprise traffic. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Release Date: May 01, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Shenandoah Telecommunications Co (NASDAQ:SHEN) reported a 4.8% increase in consolidated revenues and a 15% rise in adjusted EBITDA year-over-year. The company added approximately 6,000 Glow Fiber net customers in the first quarter, marking a 9% improvement over the prior-year period. Commercial fiber business showed strong performance with $196,000 in sales bookings and a 4.7% revenue growth year-over-year. The company has successfully expanded its Glow Fiber markets, reaching 449,000 passings, with plans to complete 510,000 passings by the end of 2026. Shenandoah Telecommunications Co (NASDAQ:SHEN) maintains a low average monthly churn rate of 0.92%, which is among the best in the industry. Incumbent broadband markets revenue declined by $2.2 million, primarily due to a 14.6% decline in video RGUs as customers switched to streaming services. The company experienced a slight uptick in churn in its most rural markets due to promotional activity from satellite competition, specifically Starlink. Broadband data ARPU declined by 1.6% from a year ago to $82, driven by aggressive pricing in competitive markets. RLEC revenues decreased by $800,000, mainly due to a 28% decline in DSL RGUs and lower government grant support revenues. The company faces competitive pressure in its incumbent markets, leading to a slight decline in ARPU and increased churn. Warning! GuruFocus has detected 7 Warning Signs with SHEN. Is SHEN fairly valued? Test your thesis with our free DCF calculator. Q: Are you seeing any changes or challenges in adding subscribers given the competitive nature in your markets? A: Ed McKay, CEO: In our global fiber markets, we're not experiencing challenges. Our net additions were up 9% over the first quarter of 2025. However, in our incumbent markets, we did see some churn to Starlink due to their promotional offers, but overall, we're on plan as expected. Q: With the transition from construction to a subscriber growth phase, will marketing expenses increase, or should we expect CapEx to decline and contribute to cash flow? A: Ed McKay, CEO: Marketing expenses are expected to remain similar, with the primary impact being a decline in CapEx. Q: Do you think the trend of customers opting for higher speeds like 2-gig and 5-gig is sustainable over a multi-year period? A: Ed McKay, CEO: Medium-term, we offer five-year price guarantees on higher speed tiers. Longer-term, there's opportunity, and we believe the demand for higher speeds is sustainable. Q: What are your growth objectives for the commercial fiber business, and how do you see this market evolving over a multi-year timeframe? A: Ed McKay, CEO: We see opportunities with data centers moving to rural areas, which could provide incremental revenue. Jim Volk, CFO: We're expecting mid-single-digit revenue growth rates over a three to four-year period, though the business can be lumpy due to larger deals. Q: How do you view the pricing power in the broadband business, and are we entering a period of deflation? A: Ed McKay, CEO: In our glow fiber business, we expect fairly flat ARPU in the near term, but over time, we anticipate gaining pricing power. In our incumbent business, we've seen a slight decline in ARPU due to competition. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Glo Fiber expansion is the growth engine: Shentel released 22,000 passings in Q1 (449,000 total), added ~6,000 net Glo Fiber customers to reach 94,000, and expects to complete a 510,000-passing buildout by the end of 2026 with RGUs >110,000 (+31% YoY). Q1 revenue rose 4.8% to $92.2 million and adjusted EBITDA increased 15% to $31.7 million; management reaffirmed full-year guidance and expects declining CapEx to help drive positive free cash flow in 2027 and beyond. Unit economics in Glo Fiber are strong—monthly churn was 0.92% and broadband ARPU remained >$77 with 82% of new customers choosing 1 Gbps+, while incumbent markets face modest churn and ARPU pressure from satellite competition and cord-cutting. Interested in Shenandoah Telecommunications Co? Here are five stocks we like better. Shenandoah Telecommunications (NASDAQ:SHEN) reported first-quarter 2026 results highlighted by continued growth in its Glo Fiber expansion markets, improving profitability, and steady progress toward completing its fiber buildout by the end of 2026. President and CEO Ed McKay said the company “released 22,000 passings to sales” during the quarter, bringing total Glo Fiber expansion market passings to 449,000. Shentel added approximately 6,000 Glo Fiber net customers in the first quarter, which McKay said was a 9% improvement over the prior-year period, bringing the total to 94,000 customers. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss McKay pointed to momentum in customer additions and product mix, noting that over the past 12 months the company added more than 23,000 new data customers and more than 26,000 total revenue-generating units (RGUs). Total Glo Fiber RGUs surpassed 110,000 in the first quarter, up 31% year-over-year. On network build progress, McKay said all planned Glo Fiber markets have now been launched, with the company’s focus shifting to adding passings within existing Virginia, Pennsylvania, Maryland, and Ohio markets. Management reiterated expectations to complete the Glo Fiber expansion in 2026 and reach 510,000 passings. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Penetration across the Glo Fiber footprint rose to 20.9% in the quarter, up 30 basis points from the fourth quarter and 150 basis points year-over-year. McKay said the company expects data penetration rates of about 37% five to seven years after launching a market, and that its most mature 2019 and 2020 cohorts have exceeded that level with an average penetration rate of 37.5%. McKay said average monthly churn in Glo Fiber was 0.92% in the first quarter, which he said remains “among the best in the industry.” Broadband data average revenue per user (ARPU) in Glo Fiber was stable sequentially and year-over-year at more than $77, according to McKay. → Is Oracle Undervalued as Cloud Growth Accelerates? He also highlighted an upsell trend toward faster speeds: nearly 82% of new residential customers in the quarter selected speeds of 1 gig or higher, including 18% choosing 2 gig service and 5% selecting 5 gig service. In response to an analyst question on whether that mix is sustainable, McKay said the company’s five-year price guarantees on higher speed tiers could keep ARPU “fairly flat” in the medium term, but added, “Longer term, I think there’s opportunity there,” and said the company believes demand for higher speeds is “sustainable going forward.” In incumbent broadband markets, McKay said the company ended the quarter serving more than 111,000 broadband data customers. Total data, voice, and video RGUs were more than 156,000, down 4% year-over-year, which he attributed primarily to customers moving from traditional video to streaming services. Monthly broadband data churn in incumbent markets was 1.46% for the quarter, stable sequentially but up modestly year-over-year. McKay said the uptick was tied to “promotional activity from satellite competition” in some of Shentel’s most rural markets without a fixed wireline competitor. He said the company implemented a speed increase late in the quarter, providing higher speeds at the same price “to better differentiate our service from satellite offerings.” McKay later described the competitive situation as largely confined to the most rural parts of the incumbent footprint, telling analysts the company saw “really no impact in Glo Fiber and no impact in the majority of our incumbent passings.” He said the satellite competitor offered “$15 off for 4 months” and, in his view, “the biggest factor was they offered free equipment” that had previously cost $350. McKay added that many customers who left were on legacy rate cards and that providing “more value for the same price” could help mitigate the impact. Incumbent broadband data ARPU declined 1.6% year-over-year to $82, which McKay attributed to adding customers with more aggressive pricing in competitive markets. CFO Jim Volk added that in the incumbent business “about two-thirds of the passings, we are the only fixed wireline provider,” and said management believes it has some pricing power in those areas. Shentel’s commercial fiber business posted what McKay called a “strong quarter,” with $196,000 in incremental monthly sales bookings and revenue growth of 4.7% year-over-year. He said demand came from wireless carriers, wholesale customers, and school systems, while the service delivery team installed $167,000 in new monthly revenue during the quarter. McKay noted that the acquired Horizon backlog that elevated installation activity in 2025 is now “substantially complete.” Average monthly compression and disconnect churn in commercial fiber was 0.4% in the quarter. Management also discussed potential opportunities tied to data center development. McKay said the company is seeing “several data center announcements” in its markets and believes it can win a share of related services, which he said would be additive to current revenue. He emphasized the company’s footprint of “19,000 plus route miles of fiber,” stretching “from Chicago, all the way to the Washington D.C., Ashburn, Virginia, area,” with routes through markets including Columbus and Pittsburgh. Volk said the company generally expects mid-single digit revenue growth in the commercial business over a three- to four-year period, while cautioning that it can be “a little bit of a lumpy business.” On potential data center revenue, Volk said it would be “a little premature” to provide expectations, but noted there are “about 20 data centers being either built or built close to our fiber” across the eight states where Shentel operates, adding that it is not clear whether all will ultimately be built. Volk reported first-quarter revenue rose 4.8% to $92.2 million. The increase was driven by Glo Fiber expansion market revenue growth of $6.4 million, or 34.6%, which he attributed to a 33.7% increase in data subscribers and stable data ARPU. Commercial fiber revenue increased $900,000, or 4.7%, driven primarily by growth among existing enterprise and carrier customers. Those gains were partially offset by declines in other segments. Volk said incumbent broadband market revenue fell $2.2 million, primarily due to lower video revenue from a 14.6% decline in video RGUs, and to a lesser extent, lower data revenue from the 1.6% decline in data ARPU. RLEC revenue declined $800,000, which he attributed mainly to lower DSL revenue from a 28% drop in DSL RGUs and lower government grant support revenues; Volk said about half of the DSL RGU decline was due to customers upgrading to broadband service. Adjusted EBITDA increased $4.1 million, or 15%, to $31.7 million. Adjusted EBITDA margin expanded 300 basis points year-over-year to 34.4%, which Volk attributed to high incremental margins in Glo Fiber, fewer lower-margin video customers, and “a favorable true-up related to a government grant.” The company reiterated its full-year 2026 guidance: Revenue of $370 million to $377 million Adjusted EBITDA of $131 million to $136 million Capital expenditures, net of grant reimbursements, of $220 million to $250 million Capital spending in the quarter totaled $75.8 million, with $11.5 million of government grants collected, resulting in net CapEx of $64.3 million. Volk said CapEx declined 16% year-over-year due to completing 91% of the incumbent markets’ government-subsidized builds to unserved areas in 2025. As of March 31, the company had completed 88% of its target Glo Fiber passings. On liquidity and leverage, Volk said Shentel ended the quarter with $707 million in outstanding debt and $636 million of net debt, with no maturities until 2029. Total available liquidity was about $195 million as of March 31, comprised of cash and cash equivalents, restricted cash, and availability under financing facilities and remaining grant reimbursements. Looking ahead, Volk said the company sees three converging catalysts that it expects will drive “generating and growing positive free cash flow in 2027 and beyond”: low double-digit adjusted EBITDA growth from fiber, declining capital intensity as construction winds down, and a declining cost of capital following a 2025 debt refinancing. In the Q&A, McKay added that as the company transitions from construction to subscriber growth, he expects marketing expense to remain “similar,” with the “primary impact” coming from lower CapEx. Shenandoah Telecommunications Company operates as a diversified communications provider offering both wireless and wireline services across rural markets in the Mid-Atlantic region. Headquartered in Edinburg, Virginia, the company designs, builds and maintains network infrastructure to deliver mobile connectivity, high-speed broadband access and related telecommunications solutions to residential, business and wholesale customers. In its wireless segment, the company owns and operates a portfolio of cellular towers and associated spectrum under a long-term partnership with a national carrier. The article "Shenandoah Telecommunications Q1 Earnings Call Highlights" was originally published by MarketBeat.