Core Viewpoint - Shenandoah Telecommunications Company (Shentel) has announced the pricing of its inaugural offering of secured fiber network revenue term notes totaling $567.405 million, which will be used to repay existing term loans and for general corporate purposes [1][2]. Group 1: Offering Details - The offering consists of $489.142 million in 5.64% Series 2025-1, Class A-2 term notes and $78.263 million in 6.03% Series 2025-1, Class B term notes, with a weighted average coupon rate of approximately 5.69% [1]. - The anticipated repayment date for the notes is December 2030, and the offering is expected to close on December 5, 2025 [1]. Group 2: Security and Compliance - The notes will be secured by certain fiber network assets and related customer contracts primarily located in Virginia, Ohio, Pennsylvania, Indiana, and Maryland [1]. - The notes will not be registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers under Rule 144A and outside the U.S. in compliance with Regulation S [3]. Group 3: Company Overview - Shenandoah Telecommunications Company provides broadband services through high-speed fiber optic and cable networks to residential and commercial customers across eight contiguous states in the eastern United States [5]. - The company's services include broadband internet, video, voice, high-speed Ethernet, dedicated internet access, dark fiber leasing, and managed network services, supported by an extensive regional network of over 18,000 route miles of fiber [5].

EDINBURG, Va., Nov. 17, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel”) (NASDAQ:SHEN) today announced Shentel Issuer, LLC, a limited-purpose, bankruptcy remote subsidiary of Shenandoah Telecommunications Company, has commenced an offering of $567,405,000 aggregate principal amount of secured fiber network revenue term notes (the “Notes”), subject to market conditions and other factors. The Notes will have an anticipated repayment date in December 2030 and will be secured by certai ...

Core Insights - Glo Fiber has launched its 100% fiber optic broadband service in Greenfield, Ohio, aiming to provide high-speed internet to over 2,300 homes and businesses by the end of 2025 [1] - The service offers symmetrical upload and download speeds of up to 5 Gbps, leveraging Shentel's extensive 18,000-mile fiber network [2][4] - The expansion is expected to enhance local economic development by providing reliable connectivity that supports remote work and education [3] Company Overview - Glo Fiber, powered by Shenandoah Telecommunications Company (Shentel), provides next-generation fiber-to-the-home (FTTH) multi-gigabit broadband internet access, live streaming TV, and digital phone service [4] - The company currently serves over 400,000 homes and businesses across multiple states, including Ohio, Pennsylvania, Virginia, West Virginia, Maryland, and Delaware [4][5] - Glo Fiber differentiates itself with exceptional reliability, straightforward pricing, and local customer service [8] Service Features - The service includes high-speed internet, phone service, video service, and Whole Home Wi-Fi, ensuring seamless connectivity [2] - Glo Fiber utilizes advanced technology such as XGS-PON 10 Gbps networks to deliver reliable and high-speed internet [4] - The company emphasizes easy pricing with no long-term contracts, enhancing customer satisfaction [8]

Group 1 - The article does not provide any specific content related to a company or industry, as it appears to be a technical issue regarding browser settings and ad-blockers [1]

Core Points - Shenandoah Telecommunications reported a quarterly loss of $0.2 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.22, but worse than a loss of $0.13 per share a year ago [1][2] - The company achieved an earnings surprise of +9.09% this quarter, having surpassed consensus EPS estimates three times over the last four quarters [2] - Revenues for the quarter ended September 2025 were $89.8 million, exceeding the Zacks Consensus Estimate by 0.44% and up from $87.6 million year-over-year [3] Financial Performance - The stock has added approximately 2.5% since the beginning of the year, while the S&P 500 has gained 17.2% [4] - Current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $90.7 million, and for the current fiscal year, it is -$0.79 on revenues of $356.56 million [8] Industry Outlook - The Diversified Communication Services industry, to which Shenandoah Telecom belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [9] - The estimate revisions trend for Shenandoah Telecom was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [7]

Financial Data and Key Metrics Changes - Consolidated revenues reached $89.8 million, an increase of 2.5% year-over-year [7] - Adjusted EBITDA climbed to $29.7 million, up 11.7% year-over-year, with margins expanding 300 basis points to 33% [7][16] - GloFiber revenues grew 41.1%, reaching $21.3 million, driven by a 39.5% increase in revenue-generating units [7][15] Business Line Data and Key Metrics Changes - GloFiber data revenue-generating units grew to 83,000, representing a year-over-year growth of 39.5% [7] - Incumbent broadband markets revenue declined by $1.6 million, primarily due to a 15% decline in video RGUs [15] - Commercial fiber revenue declined by $1.1 million, but excluding variances, it grew 2.3% over the same period in 2024 [15] Market Data and Key Metrics Changes - 92% of GloFiber passings are in duopoly markets with only one fixed broadband competitor [8] - Broadband data penetration in GloFiber expansion markets climbed 2.1 percentage points to 20.6% [9] - Monthly broadband data churn remained steady at 1.17%, with an average revenue per user of approximately $77 [10] Company Strategy and Development Direction - The company is focused on four key pillars: enhancing customer service, completing network expansion, accelerating growth, and achieving positive free cash flow [4][5] - Plans to refinance credit facilities through a hybrid structure to lower cost of debt and increase financial flexibility [6] - The company aims to complete its GloFiber build by the end of 2026, with a focus on driving penetration rates and expanding commercial fiber business [5][6] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of operational excellence and strategic agility in a consolidating industry [6] - The company expects to reach positive free cash flow for the full year of 2027, driven by declining capital intensity and continued customer growth [6][22] - Management noted that the GloFiber expansion is nearing completion, which will lead to significant free cash flow starting in 2028 [22] Other Important Information - The company invested $212 million in capital expenditures year-to-date, with 89% of planned government-subsidized passings completed [16] - Liquidity was $230 million on September 30, including $23 million in cash and $118 million in available revolver capacity [17] Q&A Session Summary Question: Thoughts on creating longer-term shareholder value through M&A - Management indicated that the industry is consolidating and they are looking for opportunities to expand their footprint while driving efficiencies [20][21] Question: Pricing action taken with GloFiber - Management responded that a competitive pricing strategy was implemented in response to Comcast's five-year price guarantee, resulting in increased gross ads [24] Question: Why isn't growth leading to raised guidance? - Management explained that growth takes several quarters to accumulate, and customer churn is low, which will lead to significant revenue and EBITDA increases over time [25]

Q3 2025 Highlights - Total revenue reached $89.8 million, a 2.5% year-over-year increase[4] - Adjusted EBITDA grew by 11.8% year-over-year to $29.7 million[4] - Adjusted EBITDA margin expanded by 300 basis points to 33%[4] Glo Fiber Expansion Markets - Glo Fiber expansion markets passed 400,000 locations, with 21,000 released to sales[4] - Data RGUs (Revenue Generating Units) in Glo Fiber expansion markets increased by 39.5% annually[4] - Glo Fiber expansion markets revenue grew by 41.1% annually[4,31] - Year-over-year RGU growth was +37%[8] - Vintage Glo Fiber Expansion Markets Penetration is expected to reach an average terminal penetration of 37%[13] Incumbent Broadband Markets - Approximately 70% of incumbent broadband markets passings have no competitor[5] - Approximately 20% of passings in incumbent broadband markets have FTTH (Fiber to the Home)[18] - Average penetration in Incumbent Broadband Markets Subsidy Cohort is 30%[21] Financial Outlook - The company projects total revenue between $352 million and $357 million for the year ending December 31, 2025, representing an 8.1% increase at the midpoint compared to 2024[38] - Adjusted EBITDA is projected to be between $113 million and $118 million, a 21.6% increase at the midpoint[38]

Revenue Performance - Total revenue for the three months ended September 30, 2025, was $89.8 million, a 2.5% increase from $87.6 million in the same period of 2024[91]. - Revenue from Residential & SMB - Incumbent Broadband Markets decreased by $1.6 million, or 3.6%, primarily due to a 14.9% decline in video revenue generating units[93]. - Revenue from Residential & SMB - Glo Fiber Expansion Markets increased by $6.2 million, or 41.1%, driven by a 41.3% year-over-year growth in data RGUs[95]. - Commercial Fiber revenue decreased by $1.1 million, or 5.3%, but grew 2.3% excluding non-cash deferred revenue adjustments[97]. - RLEC & Other revenue decreased by $1.3 million, or 16.8%, primarily due to lower governmental support revenue and a 21.1% decline in DSL RGUs[99]. - Total revenue for the nine months ended September 30, 2025, was $266.3 million, an increase of $23.6 million or 9.7% compared to $242.6 million in 2024[108]. - Residential & SMB - Glo Fiber Expansion Markets revenue increased by $18.2 million, or 44.1%, driven by a 45.2% year-over-year growth in data RGUs[111][112]. - Commercial Fiber revenue increased by $7.3 million, or 14.1%, with $9.9 million recognized from acquired Horizon markets[113]. Operating Performance - Operating loss for the three months ended September 30, 2025, was $7.2 million, compared to a loss of $4.2 million in the same period of 2024, representing a 71.6% increase in loss[91]. - Operating expenses totaled $288.6 million, an increase of $23.1 million or 8.7% compared to the prior year[108]. - Restructuring, integration, and acquisition expenses decreased by $1.4 million, or 82.5%, compared to the same period in 2024[103]. Financial Expenses - Interest expense increased by $3.1 million, or 85.1%, due to an increase in the Company's outstanding debt[105]. - Interest expense rose by $5.9 million, or 50.6%, due to an increase in outstanding debt[119]. - An increase in market interest rates of 1.00% would add approximately $5.3 million to annual interest expense, given the company's gross variable rate debt of $535.4 million[141]. - Shentel has pay-fixed, receive-variable interest rate swaps totaling $150.0 million, effectively paying a fixed weighted-average interest rate of 2.90%[142]. Tax and Benefits - Income tax benefit increased by $1.4 million, or 92.9%, due to a higher pre-tax loss in the current period[107]. Cash Flow and Liquidity - Net cash provided by operating activities from continuing operations was approximately $74.5 million, an increase of $26.1 million compared to the prior year[129]. - As of September 30, 2025, total available liquidity was $212.6 million, consisting of cash, credit facility availability, and government grant reimbursements[128]. - The company was awarded approximately $151.2 million in grants to serve unserved homes and upgrade network capacity, with $79.1 million received as of September 30, 2025[127]. - Net cash used in investing activities was approximately $209.9 million for the nine months ended September 30, 2025, a decrease of $351.0 million compared to the prior year, primarily due to a $342.4 million decrease in cash disbursed for acquisitions[130]. - Net cash provided by financing activities was approximately $114.1 million during the same period, a decrease of $2.9 million, driven by a $79.4 million decrease in cash inflows from preferred stock issuances[131]. - As of September 30, 2025, the company's net indebtedness was approximately $534.1 million, with a weighted-average interest rate of 7.47% for the Term Loans[132]. - Capital expenditures for the nine months ended September 30, 2025, totaled $251.5 million, exceeding net cash provided by operating activities by $177.1 million, with expectations for continued excess through 2026[136]. - The company expects cash on hand, cash flows from continuing operations, and availability of funds from the Credit Agreement to meet liquidity needs for the next twelve months[135]. Future Outlook and Risks - The company executed an Asset Purchase Agreement in April 2025 to acquire FTTH assets for $5 million, completing the acquisition on July 9, 2025[89]. - Future capital requirements may differ materially from estimates due to demand for products and services and new market developments[137]. - Cash flows from operations could be adversely affected by various external factors, including economic conditions and competition[138]. - The company amended its Credit Agreement to increase the maximum Total Net Leverage Ratio to 4.75:1.00, remaining in compliance with financial covenants as of September 30, 2025[134].

Financial Performance - Total revenue grew by 2.5% year-over-year to $89.8 million in Q3 2025 [5]. - Net loss from continuing operations was $9.4 million in Q3 2025, compared to a loss of $5.3 million in Q3 2024 [5]. - Adjusted EBITDA increased by 11.8% year-over-year to $29.7 million [5]. - The company expects total revenue for 2025 to be in the range of $352 million to $357 million, representing an 8.1% increase from 2024 [10]. - Adjusted EBITDA guidance for 2025 is projected between $113 million and $118 million, a 21.6% increase from 2024 [10]. - Net loss from continuing operations for the nine months ended September 30, 2025, was $(27,570) thousand, compared to a profit of $196,561 thousand in the same period of 2024 [22]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $85,668 thousand, up from $69,102 thousand in 2024, reflecting a year-over-year increase of approximately 24.1% [26]. Capital Expenditures and Liquidity - Capital expenditures for the nine months ended September 30, 2025, were $251.5 million, up from $226.5 million in the same period of 2024 [13]. - Total available liquidity as of September 30, 2025, was $212.6 million, including $22.6 million in cash and cash equivalents [13]. - Proceeds from credit facility borrowings amounted to $125,000 thousand in 2025, significantly higher than $50,000 thousand in 2024, reflecting a 150% increase [22]. Subscriber and Market Growth - Glo Fiber Expansion Markets revenue increased by 41.1% year-over-year to $21.3 million, driven by a 41.3% rise in average subscribers [5]. - The company constructed 20,000 Glo Fiber passings and added approximately 5,800 new Glo Fiber customers in Q3 2025 [6]. - Total homes and businesses passed increased to 648,325 in 2025 from 553,877 in 2024, representing a growth of approximately 17.0% [29]. Asset and Liability Changes - Total assets increased to $1,850,424 thousand in 2025 from $1,740,273 thousand in 2024, representing a growth of approximately 6.35% [20]. - Total current liabilities rose to $135,401 thousand in 2025, compared to $114,571 thousand in 2024, marking an increase of about 18.2% [20]. - Cash and cash equivalents decreased to $22,621 thousand at the end of September 2025 from $46,272 thousand at the end of 2024, a decline of approximately 51.1% [22]. Average Revenue Per User (ARPU) - Incumbent Broadband Markets ARPU increased to $83.57 from $82.90, reflecting a growth of 0.81% [32]. - Glo Fiber Expansion Markets ARPU rose to $77.12, up from $76.97, indicating a growth of 0.19% [32]. - Broadband Data ARPU improved to $81.55, an increase from $80.55, representing a growth of 1.24% [32]. - Video ARPU decreased to $116.37 from $124.99, showing a decline of 6.98% [32]. - Voice ARPU slightly decreased to $34.57 from $32.76, reflecting a decline of 2.48% [32]. - Shentel updated revenue presentation to align with management's view, resulting in revised ARPU values for the prior period [32]. Margin Improvements - Adjusted EBITDA margin expanded from 27% in Q2 2024 to 33% in Q3 2025, reflecting strong business scaling [3]. - The Adjusted EBITDA margin improved to 32% for the nine months ended September 30, 2025, compared to 28% in the same period of 2024 [26].

Core Insights - Shenandoah Telecommunications Company ("Shentel") reported a significant increase in Adjusted EBITDA margin from 27% in Q2 2024 to 33% in Q3 2025, indicating strong operational efficiency following the Horizon acquisition [3][5] - Glo Fiber revenue and subscribers grew by 41% year-over-year, with total passings increasing by 21,000 sequentially to over 400,000 [3][5] Financial Performance - Total revenue for Q3 2025 was $89.8 million, a 2.5% increase compared to Q3 2024 [5] - Glo Fiber Expansion Markets revenue reached $21.3 million, reflecting a 41.1% growth due to a 41.3% increase in average subscribers [5][6] - Net loss from continuing operations was $9.4 million in Q3 2025, compared to a loss of $5.3 million in Q3 2024 [5][28] - Adjusted EBITDA increased by 11.8% to $29.7 million, with the Adjusted EBITDA margin expanding from 30% in Q3 2024 to 33% in Q3 2025 [5][28] Operational Highlights - The company constructed 20,000 Glo Fiber passings and added approximately 5,800 new Glo Fiber customers in Q3 2025 [6] - Residential & SMB - Incumbent Broadband Markets passings grew by 4,000 to a total of 248,000, with 89% of planned passings in previously unserved areas completed [6] - Commercial Fiber revenue declined by $1.1 million, primarily due to non-cash deferred revenue adjustments [6] Capital Expenditures and Financial Outlook - Capital expenditures for the nine months ended September 30, 2025, were $251.5 million, up from $226.5 million in the same period in 2024 [13] - The company reiterated its 2025 financial guidance, projecting total revenue between $352 million and $357 million, and Adjusted EBITDA between $113 million and $118 million [10][11] Liquidity and Debt - As of September 30, 2025, Shentel had total available liquidity of $212.6 million, including $22.6 million in cash and cash equivalents [13] - Total indebtedness was $535.4 million as of September 30, 2025 [13]