Shenandoah Telecommunications Company (SHEN) Q1 2025 earnings summary

Executive summary

• Revenue rose 26.9% year-over-year to $87.9 million, driven by Glo Fiber expansion and the Horizon acquisition, with strong subscriber and revenue growth across all business lines.

• Glo Fiber Expansion Markets data subscribers grew 51% to 71,000, with revenue up 52% year-over-year; 5,400 new Glo Fiber subscribers and 16,600 new passings were added.

• Mature Glo Fiber market cohorts delivered free cash flow margins over 40%, expected to expand as penetration increases.

• Commercial Fiber sales bookings reached a record $196,000 in monthly recurring revenue, with revenue nearly doubling year-over-year.

• Net loss from continuing operations widened to $9.1 million, mainly due to higher depreciation and amortization from network expansion.

Financial highlights

• Total revenues grew 27% year-over-year to $87.9 million in Q1 2025, with adjusted EBITDA up 43% to $27.6 million and margin improving from 28% to 31%.

• Excluding Horizon, revenues grew 5% and adjusted EBITDA grew 21% year-over-year.

• Glo Fiber Expansion Markets revenue grew from $19.3 million to $27.6 million year-over-year.

• Commercial Fiber revenue increased from $6.5 million to $12.1 million year-over-year.

• Depreciation and amortization rose 68.9% to $29.5 million, reflecting Horizon assets and Glo Fiber network buildout.

Outlook and guidance

• Construction phase for Glo Fiber and government grant projects expected to complete by end of 2026, targeting 550,000 Glo Fiber passings.

• Capital investments for 2025 guided at $250–$280 million, with $175–$190 million allocated to Glo Fiber Expansion Markets.

• Capital intensity expected to drop to 20–25% of revenues in 2027, with free cash flow positive outlook.

• EBITDA margins projected to grow 300–400 basis points annually as Glo Fiber customer base expands.

• Management expects capital expenditures to exceed cash flows from operations through 2026 as Glo Fiber expansion continues.