Core Insights - Glo Fiber, powered by Shenandoah Telecommunications Company (Shentel), has launched a 100% fiber optic broadband service in Hillsboro, Ohio, aiming to serve over 3,000 homes and businesses with high-speed internet by early 2026 [1][2]. Company Overview - Glo Fiber provides next-generation fiber-to-the-home (FTTH) multi-gigabit broadband internet access, live streaming TV, and digital phone service, currently available to approximately 363,000 homes and businesses [4]. - Shentel operates an extensive regional network with over 17,200 route miles of fiber, offering broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [5]. Service Features - Glo Fiber offers symmetrical upload and download speeds of up to 5 gigabits per second (Gbps), utilizing fiber-to-the-home technology for high speeds, low latency, and reliability [2][8]. - The company emphasizes easy pricing with no long-term contracts and prides itself on providing prompt and friendly local customer service [8]. Community Impact - The Mayor of Hillsboro highlighted the importance of strong infrastructure, stating that fiber broadband adds value to businesses, students, and homeowners, and expressed satisfaction with Glo Fiber's investment in the community [2]. - Glo Fiber's service is positioned as a game-changer for local businesses, supporting remote work and education, and enhancing digital experiences for families [3].

Core Viewpoint - Shenandoah Telecommunications Company (Shentel) is expanding its Glo Fiber service in Blacksburg, Virginia, through the acquisition of Blacksburg Broadband LLC, expected to be completed by early to mid-July [1][2]. Company Overview - Glo Fiber, powered by Shentel, offers 100% fiber broadband services with upload and download speeds of up to 5 gigabits per second (Gbps) [3][5]. - The company serves approximately 363,000 homes and businesses, providing reliable, symmetrical broadband service using advanced technology, including XGS-PON 10 Gbps networks [5][6]. - Shentel operates an extensive regional network with over 17,200 route miles of fiber, delivering broadband services across eight contiguous states in the eastern United States [6]. Competitive Advantages - Glo Fiber differentiates itself by providing exceptional reliability, symmetrical speeds of up to 5 Gbps, straightforward pricing without long-term contracts, and prompt local customer service [7]. - The acquisition of WideOpen Blacksburg is expected to enhance Glo Fiber's existing gigabit fiber network and improve service offerings in the Blacksburg area [2][3].

Core Insights - Glo Fiber, a service powered by Shenandoah Telecommunications Company (Shentel), has opened a new retail store in Williamsburg, Virginia, to enhance access to ultra-fast fiber internet services [1][2] - The company currently serves over 18,000 homes and businesses in the Williamsburg area, with plans to expand to several thousand additional locations by the end of the year [2] - Glo Fiber offers symmetrical upload and download speeds of up to 5 gigabits per second (Gbps), leveraging advanced fiber-to-the-home technology and a regional fiber network of 17,200 miles [2][4] Company Overview - Glo Fiber provides next-generation fiber-to-the-home (FTTH) multi-gigabit broadband internet access, live streaming TV, and digital phone services [4] - The company has expanded its services to approximately 363,000 homes and businesses across multiple states, including Virginia, West Virginia, Maryland, Pennsylvania, Ohio, and Delaware [4] - Shenandoah Telecommunications Company (Shentel) operates a high-speed fiber optic and cable network, offering a range of services including broadband internet, video, voice, and managed network services [5] Competitive Differentiators - Glo Fiber emphasizes exceptional reliability with symmetrical download and upload speeds of up to 5 Gbps [8] - The company offers straightforward pricing with no long-term contracts, enhancing customer appeal [8] - Local customer service is highlighted as a key strength, contributing to Glo Fiber's reputation in the market [8]

Financial Data and Key Metrics Changes - Revenues grew 27% to $87.9 million, with former Horizon markets contributing $15.2 million. Excluding Horizon, revenues increased by $3.5 million or 5% compared to Q1 2024 [11] - Adjusted EBITDA increased by 43% to $27.6 million, with former Horizon markets contributing $4.4 million. Excluding Horizon, adjusted EBITDA grew by $4 million or 21% year-over-year [12] - Adjusted EBITDA margins improved from 28% in Q1 2024 to 31% in Q1 2025, driven by high incremental margins from Glo Fiber subscribers [12] Business Line Data and Key Metrics Changes - Glo Fiber added 5,400 new subscribers and 16,600 new passings, with revenues increasing by 52% year-over-year [6] - Legacy Glo Fiber markets revenue grew by $5.6 million or 47%, while incumbent broadband markets revenue declined by $2.2 million due to a 14% drop in video RGUs [11] - The commercial sales team achieved record sales bookings of just under $200,000 in monthly recurring revenues [9] Market Data and Key Metrics Changes - Broadband data penetration in Glo Fiber expansion markets reached 19.4%, up from 18% a year earlier [17] - Monthly broadband data churn remained low at 0.9% for Glo Fiber [18] - Incumbent broadband markets saw a 2.7% year-over-year increase in broadband data customers, totaling approximately 112,000 [19] Company Strategy and Development Direction - The company plans to complete the construction phase of Glo Fiber expansion and government grant projects by the end of 2026, targeting 550,000 total Glo Fiber passings [16] - The company aims to achieve free cash flow positivity in 2027, with significant growth expected in 2028 and beyond [29] - The company is focusing on areas where it is the only fiber provider, avoiding competition with established players like Verizon [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in Glo Fiber markets, highlighting the potential for free cash flow generation as penetration rates increase [6][7] - The company expects to realize a total of $8.5 million in incremental synergies in 2025 from the Horizon acquisition [12] - Management noted that they are well-positioned to execute their capital plan and do not anticipate significant impacts from tariffs on construction costs [22][24] Other Important Information - Liquidity was reported at $335 million as of March 31, including $88 million in cash and $143 million in available revolver capacity [13] - The company plans to refinance its credit facilities, aiming to access the asset-backed securitization market for its fiber business [14] Q&A Session Summary Question: Potential for ABS securities and optimal capital structure - Management expects ABS to save about 100 basis points in interest expense and plans to use investment-grade tranches [27][28] Question: CapEx investment timeline and future capital intensity - CapEx is expected to drop to 20-25% of revenues starting in 2027, with free cash flow positivity anticipated in 2027 [29][30] Question: Subscriber growth challenges and competitive pressures - Management indicated that they are not yet facing difficulties in adding subscribers and have seen continued growth in mature markets [36] Question: Refinancing process and cost factors - The internal restructuring for refinancing is expected to save approximately $7 million in interest expense annually [41]

Financial Data and Key Metrics Changes - Revenues grew 27% to $87.9 million, with former Horizon markets contributing $15.2 million. Excluding Horizon, revenues increased by $3.5 million or 5% year-over-year [11] - Adjusted EBITDA increased 43% to $27.6 million, with former Horizon markets contributing $4.4 million. Excluding Horizon, adjusted EBITDA grew by $4 million or 21% [12] - Adjusted EBITDA margins improved from 28% in Q1 2024 to 31% in Q1 2025, driven by high incremental margins from Glo Fiber subscribers [12] Business Line Data and Key Metrics Changes - Glo Fiber expansion markets added 5,400 new subscribers and 16,600 new passings, with revenues increasing by 52% year-over-year [6] - Legacy Glo Fiber markets revenue grew by $5.6 million or 47%, driven by subscriber increases, while incumbent broadband markets revenue declined by $2.2 million due to a 14% drop in video RGUs [11] - The commercial sales team achieved record sales bookings of just under $200,000 in monthly recurring revenues [9] Market Data and Key Metrics Changes - Glo Fiber's broadband data penetration in expansion markets rose to 19.4%, up from 18% a year earlier [17] - Monthly broadband data churn remained low at 0.9% [18] - Incumbent broadband markets saw a 2.7% year-over-year increase in broadband data customers, totaling approximately 112,000 [19] Company Strategy and Development Direction - The company plans to complete the construction phase of Glo Fiber expansion and government grant projects by the end of 2026, targeting 550,000 total Glo Fiber passings [16] - The company aims to achieve free cash flow positivity by 2027, with significant growth expected in 2028 and beyond [29] - The company is focusing on areas where it is the only fiber provider, avoiding competition with established players like Verizon [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in Glo Fiber markets, highlighting the potential for free cash flow generation as penetration rates increase [6][7] - The company expects to realize a total of $8.5 million in incremental synergies in 2025 [12] - Management noted that they are well-positioned to execute their capital plan and complete construction projects by the end of 2026 [24] Other Important Information - Liquidity was reported at $335 million as of March 31, including $88 million in cash and $143 million in available revolver capacity [13] - The company executed an amendment to its credit facility to extend maturities and increase the net leverage covenant [13][14] - Capital expenditures in Q1 were $76 million, with full-year guidance set between $250 million and $280 million [21] Q&A Session Summary Question: Potential for ABS securities and optimal capital structure - Management expects ABS to save about 100 basis points in interest expense and plans to use investment-grade tranches [27][28] Question: Glo Fiber capital expenditure plans - Construction to reach 550,000 passings is expected to complete by the end of 2026, with capital intensity dropping to 20-25% of revenues starting in 2027 [29][30] Question: Subscriber growth challenges - Management indicated that they are not yet facing difficulties in adding subscribers, with continued growth in mature markets [36] Question: Competitive pressures - There is minimal competition, with only a small overlap with BrightSpeed, and management is targeting areas with limited competition [37][39] Question: Refinancing process and cost factors - Internal projects are underway to save on interest rates, with expected savings of approximately $7 million annually [41]

Shenandoah Telecommunications (SHEN) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -35.71%. A quarter ago, it was expected that this telecommunications service provider in parts of Maryland, Pennsylvania, Virginia and West Virginia would post a loss of $0.15 per share when it actually produ ...

Financial Data and Key Metrics Changes - Revenues grew 27% to $87.9 million, with former Horizon markets contributing $15.2 million. Excluding Horizon, revenues increased by $3.5 million or 5% compared to Q1 2024 [11] - Adjusted EBITDA increased by 43% to $27.6 million, with former Horizon markets contributing $4.4 million. Excluding Horizon, adjusted EBITDA grew by $4 million or 21% year-over-year [12] - Adjusted EBITDA margins improved from 28% in Q1 2024 to 31% in Q1 2025, driven by high incremental margins from Glo Fiber subscribers and synergy savings [12] Business Line Data and Key Metrics Changes - Glo Fiber expansion markets added 5,400 new subscribers and 16,600 new passings, resulting in a 52% revenue increase compared to the same period in 2024 [6] - Legacy Glo Fiber markets revenue grew by $5.6 million or 47%, driven by subscriber increases, while incumbent broadband markets revenue declined by $2.2 million due to a 14% drop in video RGUs [11] - The commercial sales team achieved record sales bookings of just under $200,000 in monthly recurring revenues [8] Market Data and Key Metrics Changes - Glo Fiber's broadband data penetration reached 19.4%, up from 18% a year earlier, with monthly broadband data churn remaining low at 0.9% [19] - Incumbent broadband markets saw a 2.7% year-over-year increase in broadband data customers, ending Q1 with approximately 112,000 customers [20] - Overall broadband data penetration decreased to 46.5% due to the addition of acquired passings in the Horizon territory [21] Company Strategy and Development Direction - The company plans to complete the construction phase of Glo Fiber expansion and government grant projects by the end of 2026, targeting 550,000 total Glo Fiber passings [16] - The company aims to achieve free cash flow positivity by 2027, with significant growth expected in 2028 and beyond [30] - The company is focusing on a hybrid capital structure to lower the cost of debt, planning to access the ABS market for its fiber business [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in Glo Fiber markets, highlighting the potential for free cash flow generation as penetration rates increase [6] - The company noted a favorable response from customers to enhanced rate plans and value propositions introduced in the past year [7] - Management expects EBITDA margins to continue growing by 300 to 400 basis points annually as customer additions increase [33] Other Important Information - Liquidity as of March 31 was $335 million, including $88 million in cash and $143 million in available revolver capacity [13] - Capital expenditures in Q1 totaled $76 million, with full-year guidance set between $250 million and $280 million [22] - The company has not been significantly impacted by price increases due to tariffs, with most materials sourced domestically [23][24] Q&A Session Summary Question: Potential for ABS securities and optimal capital structure - Management expects ABS to save about 100 basis points in interest expense and plans to use investment-grade tranches [28] Question: Glo Fiber capital expenditure plans - The company anticipates completing Glo Fiber construction by the end of 2026, with capital intensity expected to drop to 20-25% of revenues starting in 2027 [30] Question: Subscriber growth challenges - Management indicated that they are not yet facing difficulties in adding subscribers, with continued growth observed even in mature markets [36] Question: Competitive pressures - There is minimal competition in Glo Fiber markets, with only a small overlap with BrightSpeed [37] Question: Refinancing process and cost implications - The internal restructuring for refinancing is expected to save approximately $7 million in annual interest expense [40]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 revenue rose 26.9% to $87.9 million due to acquisitions and expansion, but operating and net losses widened [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.83 billion** by March 31, 2025, driven by network expansion and debt, with a slight equity decrease Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $87,547 | $46,272 | $41,275 | | Property, plant and equipment, net | $1,483,796 | $1,438,538 | $45,258 | | **Total assets** | **$1,825,453** | **$1,740,273** | **$85,180** | | Long-term debt, less current maturities | $504,199 | $407,675 | $96,524 | | Total liabilities | $831,044 | $739,226 | $91,818 | | Total shareholders' equity | $910,473 | $918,583 | ($8,110) | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue rose 26.9% to **$87.9 million**, but faster expense growth led to wider operating and net losses of **$9.1 million** Q1 2025 vs Q1 2024 Operating Results (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Service revenue and other | $87,898 | $69,248 | 26.9% | | Total operating expenses | $93,990 | $72,024 | 30.5% | | Operating loss | $(6,092) | $(2,776) | 119.4% | | Loss from continuing operations | $(9,132) | $(4,090) | 123.3% | | Net (loss) income | $(9,132) | $214,696 | N/A | | Net (loss) income per share | $(0.19) | $4.25 | N/A | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$20.5 million** in Q1 2025, with capital expenditures largely funded by **$97.0 million** in new debt Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,524 | $15,158 | | Net cash (used in) provided by investing activities | $(76,260) | $238,484 | | Net cash provided by (used in) financing activities | $97,011 | $(3,162) | | **Net increase in cash and cash equivalents** | **$41,275** | **$250,480** | | **Cash and cash equivalents, end of period** | **$87,547** | **$389,735** | - Capital expenditures increased to **$83.2 million** in Q1 2025 from **$70.1 million** in Q1 2024, reflecting continued investment in network expansion[16](index=16&type=chunk) - The company drew **$100.0 million** from its credit facility in Q1 2025 to fund its activities, a significant change from no borrowings in the prior-year period[16](index=16&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Horizon acquisition's impact, strong fiber segment growth, increased debt to **$515.8 million**, and discontinued operations' effect on comparisons - The acquisition of Horizon was completed on April 1, 2024, for **$416.2 million**, with accounting finalized as of April 1, 2025[23](index=23&type=chunk)[24](index=24&type=chunk) Revenue by Activity Type (in thousands) | Revenue Stream | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Residential & SMB - Incumbent | $43,359 | $43,809 | (1.0)% | | Residential & SMB - Glo Fiber | $18,444 | $12,118 | 52.2% | | Commercial Fiber | $19,612 | $9,938 | 97.3% | | RLEC & Other | $6,483 | $3,383 | 91.6% | | **Total Service Revenue** | **$87,898** | **$69,248** | **26.9%** | - Total debt outstanding increased to **$515.8 million** as of March 31, 2025, with **$150.0 million** hedged using interest rate swaps to manage risk[44](index=44&type=chunk)[53](index=53&type=chunk) - In Q1 2024, the company recognized **$218.8 million** in net income from discontinued operations, primarily from a **$294.3 million** pre-tax gain on the Tower Portfolio sale[71](index=71&type=chunk)[72](index=72&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 revenue growth to acquisitions and fiber expansion, with strong liquidity, but capital expenditures are expected to exceed operating cash flow through 2026 - In April 2025, the company agreed to acquire fiber-to-the-home assets in Virginia for **$5 million**, passing over 1,500 homes and businesses[82](index=82&type=chunk) - On April 16, 2025, the company amended its credit agreement to extend the maturity of its Revolver and Term Loan A-1 to July 1, 2027, and increased the maximum permitted Total Net Leverage Ratio to **4.75:1.00**[83](index=83&type=chunk)[84](index=84&type=chunk) Key Operating Statistics | Metric | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Total homes and businesses passed (count) | 603,649 | 476,081 | | Glo Fiber Expansion Markets passings (count) | 362,861 | 259,567 | | Total Residential & SMB RGUs (count) | 246,857 | 219,874 | | Glo Fiber Expansion Markets RGUs (count) | 70,565 | 46,729 | | Fiber route miles (miles) | 17,224 | 10,132 | - Total available liquidity as of March 31, 2025, was approximately **$334.6 million**, comprising **$87.5 million** in cash, **$143.0 million** in revolver availability, and **$104.1 million** in available government grants[109](index=109&type=chunk) - Capital expenditures of **$83.2 million** in Q1 2025 exceeded net cash from operations by **$62.7 million**, a trend expected to continue through 2026 due to network expansion[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on its variable-rate debt, partially hedged by swaps, with a **1.00%** rate increase potentially raising annual interest expense by **$5.1 million** - As of March 31, 2025, the company had **$515.8 million** of gross variable rate debt outstanding with a weighted-average interest rate of **6.71%**[122](index=122&type=chunk) - A **1.00%** increase in market interest rates would add approximately **$5.1 million** to annual interest expense[122](index=122&type=chunk) - The company hedges its interest rate exposure on **$150.0 million** of its term loans using pay-fixed, receive-variable interest rate swaps, effectively paying a fixed rate of **2.90%** plus a margin[123](index=123&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, disclosure controls were effective, with internal control monitoring extended to the acquired Horizon business - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[124](index=124&type=chunk) - Internal control monitoring processes have been extended to include the operations of Horizon, acquired in 2024[125](index=125&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, none expected to materially affect its financial condition or operations - Management does not expect current legal proceedings to have a material adverse effect on the company's business, financial condition, or cash flows[127](index=127&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material updates to the risk factors previously disclosed in the company's Annual Report on Form 10-K were identified - As of March 31, 2025, the Company has not identified any needed updates to the risk factors included in its most recent Form 10-K[128](index=128&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales occurred; employees surrendered **67,000** shares at **$11.75** per share for tax withholding Shares Surrendered for Tax Withholding Q1 2025 | Period | Number of Shares Surrendered (in thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | February 1 to February 28 | 67 | $11.75 | | **Total** | **67** | | [Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No officers or directors adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended March 31, 2025[133](index=133&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including officer certifications and Inline XBRL data files

Financial Performance - Revenue increased by 27% and Adjusted EBITDA increased by 43% year-over-year [7] - Adjusted EBITDA for Q1 2025 was $27593 thousand with a margin of 31%, compared to $19251 thousand and 28% in Q1 2024 [35] Broadband Expansion and Performance - Strong growth in Glo Fiber Expansion Markets [4] - Glo Fiber Free Cash Flow in "mature" markets [4] - Improvement in Incumbent Broadband Markets subscriber growth and churn [4] - Glo Fiber Expansion Markets RGUs increased from 44163 in Q1 2024 to 67868 in Q1 2025 [36] - Incumbent Broadband Markets RGUs increased from 109255 in Q1 2024 to 111528 in Q1 2025 [36] Network Construction - Glo Fiber Expansion Markets passings under construction are at 440000 [14] - Incumbent Broadband Markets passings under construction are at 254000 [14] Commercial Fiber - Record quarter for Commercial Fiber sales bookings [4] Liquidity - Liquidity stands at $3565 million [9]

Revenue Growth - Glo Fiber Expansion Markets added 5,400 new subscribers and 16,600 new passings, resulting in a 52% revenue growth to $18.4 million[3] - Total revenue increased by $18.7 million, or 26.9%, to $87.9 million, with a 5% growth to $72.9 million when excluding former Horizon markets[7] - Adjusted EBITDA grew 43.3% to $27.6 million, with a 20.6% increase when excluding former Horizon markets[6] - Residential & SMB revenue reached $61,803 thousand for the three months ended March 31, 2025, compared to $55,927 thousand in the same period of 2024, reflecting an increase of 10.5%[25] - Total Residential & SMB Revenue for 2024 is projected to be $235,392 million, with quarterly revenues of $56,488 million in Q1, $59,053 million in Q2, $59,325 million in Q3, and $60,526 million in Q4[27] - Glo Fiber Expansion Markets are expected to generate $52,132 million in revenue for 2024, with a quarterly increase from $10,783 million in Q1 to $15,053 million in Q4[27] - Service revenue and other for 2024 is projected to total $328,058 million, with consistent quarterly growth throughout the year[27] - Video revenue is projected to be $58,030 million for 2024, with quarterly revenues showing stability around $14,000 million[27] - Voice revenue is expected to total $12,765 million for 2024, with a slight decline in Q4'24 to $3,184 million[27] - Commercial Fiber revenue is projected to be $67,011 million for 2024, with significant growth in Q2'24 reaching $20,257 million[27] Financial Performance - Net loss from continuing operations was $9.1 million, compared to a net loss of $4.1 million in Q1 2024, primarily due to higher depreciation and amortization[6] - The company reported a net loss of $9,132 thousand for the three months ended March 31, 2025, compared to a net income of $214,696 thousand for the same period in 2024[16] - Adjusted EBITDA for the three months ended March 31, 2025, was $27,593 thousand, an increase of 43.5% from $19,251 thousand in the prior year, with an adjusted EBITDA margin of 31%[21] Capital Expenditures - Capital expenditures for Q1 2025 were $83.2 million, up from $70.1 million in Q1 2024, driven by investments in Horizon markets and Glo Fiber network expansion[12] - Capital expenditures for the three months ended March 31, 2025, were $83,236 thousand, compared to $70,053 thousand in the prior year, indicating a rise of 18.8%[16] Subscriber Growth - Total broadband homes passed increased by 128,000 to approximately 604,000, including 363,000 in Glo Fiber Expansion Markets[6] - Glo Fiber Expansion Markets data subscribers grew 51% year-over-year to approximately 71,000[6] - The number of broadband data RGUs increased to 182,425 in March 2025, up from 155,687 in March 2024, showing a growth of 17.1%[24] - Total homes and businesses passed increased to 603,649 as of March 31, 2025, up from 476,081 in the previous year, marking a growth of 26.8%[24] - Average RGUs for Broadband Data are expected to increase from 153,418 in Q1'24 to 173,771 in Q4'24, indicating a growth trend in user adoption[27] - The average RGUs for Glo Fiber Expansion Markets are expected to rise from 44,163 in Q1'24 to 62,387 in Q4'24, reflecting strong market expansion[27] Liquidity and Debt - As of March 31, 2025, total available liquidity was approximately $334.6 million, including cash and cash equivalents of $87.5 million[12] - The company had cash and cash equivalents of $87,547 thousand at the end of the period, up from $46,272 thousand at the beginning of the period, representing an increase of 89.2%[16] - Long-term debt, less current maturities, increased to $504,199 thousand as of March 31, 2025, compared to $407,675 thousand at December 31, 2024, a rise of 23.7%[15] Expenses - Selling, general and administrative expenses rose by $3.0 million, or 10.8%, due to costs incurred in the acquired Horizon markets[7] - Depreciation and amortization increased by $12.0 million, or 68.9%, due to the Horizon transaction and Glo Fiber network expansion[7] Market Penetration - The penetration rate for Incumbent Broadband Markets decreased to 46.5% in March 2025 from 50.3% in March 2024[24] ARPU Projections - The ARPU for Incumbent Broadband Markets is projected to be $84.81 for the full year 2024, with a slight increase from $84.64 in Q3'24 to $85.26 in Q4'24[27] - The reclassification of certain revenues has resulted in updated ARPU values, with Broadband Data ARPU projected at $83.67 for 2024[27]