Shenandoah Telecommunications Company (SHEN) Q4 2025 earnings summary

Executive summary

• Achieved strong year-over-year growth in Glo Fiber and commercial fiber, with fiber-based revenue surpassing incumbent broadband revenue in Q4 2025.

• Passed 427,000 homes and businesses in Glo Fiber markets, up 81,000 annually; government-subsidized passings in incumbent markets more than doubled to 22,000.

• Glo Fiber Expansion Markets saw 35% year-over-year growth in data RGUs and 31% penetration.

• Adjusted EBITDA margin improved by 670bps year-over-year, with 31.3% growth in Adjusted EBITDA.

• Closed $567.4 million in secured fiber network revenue term notes, strengthening liquidity and funding Glo Fiber build completion by end of 2026.

Financial highlights

• Q4 2025 revenues grew 7.2% to $91.6 million, driven by 39% Glo Fiber revenue growth and 10.8% commercial fiber revenue growth year-over-year.

• Full-year 2025 revenue reached $357.9 million, up 9.1%, with a 10% CAGR since 2020.

• Adjusted EBITDA for 2025 was $119.1 million, up 26%, with margin expanding to 33.3%.

• Net CapEx for 2025 was $296 million after $63 million in government grants; total CapEx was $358.9 million.

• Interest expense increased 85% in Q4 and 59.6% for the year, reflecting higher outstanding debt.

Outlook and guidance

• 2026 revenue guidance: $370–$377 million (4.4% growth at midpoint); adjusted EBITDA: $131–$136 million (12.1% growth at midpoint).

• 2026 CapEx (net of grants) expected at $220–$250 million, a 21% decline at midpoint.

• Capital intensity projected to decline to 59–67% in 2026, trending lower in 2027.

• Guidance excludes potential impacts from tariff changes and U.S. government shutdown-related funding delays.

• Positive free cash flow expected in 2027, driven by fiber growth, lower capital intensity, and reduced cost of capital.