Shenandoah Telecommunications Company (SHEN) investor relations material

Executive summary

• Total revenue rose 4.8% year-over-year to $92.2 million in Q1 2026, driven by strong Glo Fiber expansion and commercial fiber growth.

• Adjusted EBITDA increased 15% year-over-year to $31.7 million, with margin expanding to 34%–34.4%.

• Glo Fiber Expansion Markets revenue surged 34.6% year-over-year, with 22,000 new passings and 6,000 net data additions, reaching 449,000 total passings and 20.9% penetration.

• Net loss widened to $17.3 million, reflecting higher operating, depreciation, and interest expenses, and a 10% workforce reduction was announced as expansion nears completion.

• Commercial fiber sales bookings totaled $196,000, with low churn at 0.4%.

Financial highlights

• Glo Fiber Expansion Markets revenue grew 34.6% to $24.8 million, now 26.9% of total revenue.

• Commercial Fiber revenue increased 4.7% year-over-year to $20.5 million.

• Incumbent Broadband Markets revenue declined 5.1% due to a 14.6% drop in video RGUs and lower ARPU.

• RLEC & Other revenue fell 13.0% due to DSL declines and reduced government support.

• Cost of services fell 3.7% year-over-year, aided by government grant reimbursements and lower video programming costs.

Outlook and guidance

• 2026 revenue guidance: $370–$377 million; adjusted EBITDA: $131–$136 million, both up from 2025.

• 2026 capital expenditures expected at $220–$250 million, a 20.7% decrease from 2025.

• Glo Fiber expansion on track for completion by end of 2026; positive free cash flow targeted for 2027.

• Management expects liquidity sources to be sufficient for the next twelve months.