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% 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]

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]

Core Viewpoint - Shenandoah Telecommunications reported a quarterly loss of $0.19 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.14, and a decline from a loss of $0.08 per share a year ago [1][2] Financial Performance - The company posted revenues of $87.9 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.58%, compared to revenues of $69.25 million a year ago [3] - The earnings surprise for the quarter was -35.71%, with the company having surpassed consensus EPS estimates only once in the last four quarters [2][3] Stock Performance - Shenandoah Telecom shares have increased by approximately 3.3% since the beginning of the year, contrasting with a -5.5% decline in the S&P 500 [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $90.69 million, and for the current fiscal year, it is -$0.43 on revenues of $364.74 million [8] - The estimate revisions trend for Shenandoah Telecom is mixed, and future changes in estimates will be closely monitored [5][7] Industry Context - The Diversified Communication Services industry, to which Shenandoah Telecom belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

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]

Core Insights - Shenandoah Telecommunications Company ("Shentel") reported strong growth in the first quarter of 2025, with significant increases in subscribers and revenue, particularly in its Glo Fiber Expansion Markets [3][7][8] - The company achieved a 52% revenue growth in Glo Fiber Expansion Markets, contributing to a total revenue increase of 26.9% year-over-year [7][8] - Adjusted EBITDA grew by 43.3% to $27.6 million, with margins improving from 28% to 31% [3][7][23] Financial Performance - Total revenue for Q1 2025 was $87.9 million, up from $69.2 million in Q1 2024, primarily driven by $15.2 million from acquired Horizon markets [8][14] - Glo Fiber Expansion Markets revenue reached $18.4 million, a 52% increase compared to the previous year [7][8] - Net loss from continuing operations was $9.1 million in Q1 2025, compared to a loss of $4.1 million in Q1 2024, attributed to higher depreciation and amortization costs [7][14] Subscriber Growth - The company added 5,400 new subscribers in Glo Fiber Expansion Markets, bringing total subscribers in these markets to approximately 71,000, a 51% increase year-over-year [3][7] - Total broadband homes passed increased by 128,000 to approximately 604,000, with significant growth in both Glo Fiber and Incumbent Broadband Markets [7][26] Capital Expenditures - Capital expenditures for Q1 2025 were $83.2 million, up from $70.1 million in the same period of 2024, reflecting investments in network expansion [6][9] - The increase in capital expenditures was primarily driven by investments in Horizon markets and Glo Fiber network expansion [9][13] Operational Metrics - Adjusted EBITDA margin improved to 31% in Q1 2025 from 28% in Q1 2024, indicating enhanced operational efficiency [23] - The company reported a 46.5% growth in residential and SMB revenue in Glo Fiber Expansion Markets, contributing to overall revenue growth [8][27] Liquidity Position - As of March 31, 2025, Shentel had cash and cash equivalents of $87.5 million and total available liquidity of approximately $334.6 million [13][17]

EDINBURG, Va., April 21, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (Shentel) (NASDAQ:SHEN) will release its first quarter 2025 financial results before the market opens on Wednesday, April 30, 2025, and will host a conference call and simultaneous webcast on the same day at 8:30 a.m. Eastern Time to discuss Shentel’s financial results and business highlights. Date: April 30, 2025Time: 8:30 AM ET Listen via Internet: https://investor.shentel.com/ For Analysts, please register to dial-in ...