SHEN · Shenandoah Telecommunications Company

Shenandoah Telecommunications’ Q1 2026 results reflect a pivotal inflection point in its strategic shift toward fiber-led growth. While total revenue rose 4.8% YoY to $92.2 million, the composition reveals stark divergence: Glo Fiber Expansion Markets surged 34.6% to $24.8 million on robust 33.7% growth in data RGUs, while Incumbent Broadband Markets declined 5.1% to $41.1 million amid accelerating video cord-cutting (−14.6% video RGUs) and modest data ARPU erosion. Commercial Fiber grew 4.7%, and RLEC & Other fell 13.0%, underscoring structural headwinds in legacy lines. Adjusted EBITDA’s 15.0% YoY growth to $31.7 million — outpacing revenue — signals improving operating leverage in fiber markets, even as GAAP net loss widened to $15.8 million from $9.1 million due to $2.1 million in severance (part of a 10% reduction-in-force announced February 2026), $5.5 million higher depreciation (including $2.8 million in cancelled-market project write-offs), and elevated SG&A from Glo Fiber marketing and payroll expansion. Management reaffirmed full-year 2026 guidance, projecting $370–$377 million revenue and $131–$136 million Adjusted EBITDA — implying continued acceleration in second-half EBITDA generation as capital intensity eases ($75.8 million capex in Q1 vs $83.2 million YoY) and restructuring savings begin to flow in 2027. The company emphasized progress toward completing Glo Fiber expansion by year-end and achieving positive free cash flow in 2027, anchoring investor focus on near-term execution discipline and long-term cash flow conversion.