Core Insights - Shenandoah Telecommunications Company (Shentel) is upgrading its network in Radford, Virginia, to provide 100% fiber-to-the-home internet service with speeds up to 5 Gbps [1][4] - The upgrade aims to enhance broadband service reliability, availability, and speed for both residential and business customers [2][4] - Shentel's fiber network spans 17,700 miles, enabling high-speed, low-latency internet and additional services like phone, video, and Whole-Home Wi-Fi [3][6] Company Overview - Shentel provides broadband services through advanced fiber optic and cable networks across eight states in the eastern United States [6] - The company offers a variety of services, including broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [6] Customer Benefits - Customers will experience symmetrical multi-gig internet speeds, facilitating fast downloads, uploads, and reliable online activities [4][9] - Current customers can upgrade to the new fiber network at no additional cost as construction is completed in their area [4] - Shentel emphasizes local customer service with real-time support, avoiding third-party call centers [9]

Core Viewpoint - Shenandoah Telecommunications Company (Shentel) will present at the Bank of America 2025 Media, Communications, & Entertainment Conference on September 3, 2025, at 9:40 AM E.T. [1] 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 [2] - The company's service offerings include broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [2] - Shentel operates an extensive regional network with over 17,700 route miles of fiber [2]

Core Viewpoint - Shenandoah Telecommunications Company has appointed Angela M. Olsen as Vice President-Legal and General Counsel, bringing over 25 years of legal experience to the company [1][2][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 [4] - The company's service offerings include broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [4] - The company operates an extensive regional network with over 17,700 route miles of fiber [4] Leadership and Experience - Angela M. Olsen has previously held significant legal positions, including General Counsel and Corporate Secretary at AquaBounty Technologies, and Senior Advisor and Associate General Counsel at DuPont [2] - Olsen's background includes experience as a trial attorney at the US Department of Justice and in private practice at prominent law firms [2] - The CEO of Shentel, Christopher French, expressed confidence in Olsen's capabilities, highlighting her deep understanding of corporate law and her potential contribution to the company's growth [3]

Core Points - Shenandoah Telecommunications Company (Shentel) has received the 2025 CableFax Top Ops Award for Work Culture, recognizing its commitment to improving employee lives and fostering a connected work environment [1][6] - The company emphasizes core values such as teamwork, integrity, communication, agility, cooperation, mutual trust, and respect, which are integral to its success [2] - Shentel's community engagement initiatives, including the Shentel Cares program, encourage employees to support local charities and make a meaningful impact [2][4] - The company has been recognized for its investment in employee development through various support initiatives, including educational assistance and leadership training [5] - This is the second consecutive year Shentel has won a CableFax Top Ops Award, having previously been recognized in 2024 for its Glo Fiber brand as Fiber Provider of the Year [6] Company Overview - Shenandoah Telecommunications Company provides broadband services through advanced fiber optic and cable networks to residential and commercial customers across eight contiguous states in the eastern United States [7] - The company's service offerings include broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services, supported by an extensive regional network of over 17,700 route miles of fiber [7]

分组1 - Shenandoah Telecommunications reported a quarterly loss of $0.19 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.20, but worse than a loss of $0.08 per share a year ago [1][2] - The company posted revenues of $88.57 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.16%, and showing an increase from $85.8 million year-over-year [3] - The stock has gained approximately 17.4% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [4] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.17 on revenues of $92.59 million, and for the current fiscal year, it is -$0.66 on revenues of $364.47 million [8] - The Zacks Industry Rank indicates that the Diversified Communication Services sector is in the top 10% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [9]

Financial Data and Key Metrics Changes - Revenue grew 3.2% to $88.6 million, driven by strong Glo Fiber market revenue growth of $5.7 million or 40.5% due to an increase in subscribers [11][12] - Adjusted EBITDA increased by $5.1 million or 21.9% to $28.4 million, with adjusted EBITDA margins rising from 27% in Q2 2024 to 32% in Q2 2025 [13] - The company expects 2025 revenues to be between $352 million and $357 million, with adjusted EBITDA projected to be between $113 million and $118 million [13] Business Line Data and Key Metrics Changes - Glo Fiber added 5,700 new subscribers and over 16,000 new passings, with total Glo Fiber revenue generating units reaching 90,000, up 40% year over year [8][17] - The commercial fiber business recorded over $200,000 in monthly recurring revenue sales bookings, indicating future growth potential [9][12] - Incumbent broadband market revenue declined due to a 15% drop in video RGUs as customers switched to streaming services [11] Market Data and Key Metrics Changes - Glo Fiber markets saw broadband data penetration climb to 20%, up from approximately 18% a year ago, with monthly broadband data churn improving to 1.15% [18][19] - The total broadband data customer base in incumbent markets slightly increased year over year, with a total of 112,000 customers [20] - The commercial fiber business achieved a record in new contracts, totaling over $203,000 in incremental monthly revenue, up 32% year over year [22] Company Strategy and Development Direction - The company is executing a "Fiber First" strategy, transitioning from a mature cable and telephone operator to a rapidly growing fiber-first business [7][10] - The management team is focused on expanding Glo Fiber and enhancing customer service to maintain competitive advantages over larger cable providers [28] - The company plans to accelerate capital expenditures in 2025 due to successful construction of government grant projects, which will enhance future revenue potential [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong subscriber additions and the successful execution of the fiber expansion strategy [8][24] - The management team acknowledged competitive pressures but emphasized their advantages in speed and customer service [28] - The company aims to provide more visibility and transparency to shareholders by offering annual guidance [31] Other Important Information - The company closed a small tuck-in acquisition in early July, adding 1,500 passings and approximately 700 customers for $5 million [14][15] - Liquidity was reported at $260 million, with $29 million in cash and $143 million in available revolver capacity [14] Q&A Session Summary Question: Competitive pressures in Glo Fiber expansion - Management noted that while some cable providers are changing rate plans, they believe their speed advantage and local customer service provide a competitive edge [28] Question: CapEx acceleration decision - The decision to accelerate CapEx was driven by the construction team's success in building government grant projects faster than expected [29] Question: Impact of CapEx on future revenue - Management indicated that pulling construction forward would help subscriber growth and revenue in 2026 due to increased passings in government-subsidized areas [30] Question: Reason for mid-year guidance - The company aimed to enhance visibility and transparency for shareholders by providing annual guidance [31]

Core Viewpoint - Shenandoah Telecommunications Company has appointed Edward H. McKay as the new President and CEO, effective September 1, 2025, while Christopher E. French transitions to Executive Chairman of the Board [1][3]. Group 1: Leadership Transition - Edward H. McKay, currently the Executive Vice President and COO, will take over as President and CEO [2]. - Christopher E. French will remain involved in the company's strategy as Executive Chairman [1][3]. - The Board of Directors unanimously supported McKay's appointment, highlighting his experience and perspective for managing growth [3]. Group 2: Company Background - Shenandoah Telecommunications provides broadband services through advanced fiber optic and cable networks across eight states in the eastern United States [4]. - The company offers a range of services including broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services [4]. - Shenandoah Telecommunications has an extensive regional network with over 17,700 route miles of fiber [4].

Financial Performance & Outlook - Total revenue for 2025 is projected to be between $352 million and $357 million, representing an 8.1% increase at the midpoint compared to $328 million in 2024[9] - Adjusted EBITDA for 2025 is guided between $113 million and $118 million, a 21.6% increase at the midpoint from $95 million in 2024[9] - Capital expenditures, net of government grant reimbursements, are expected to be between $260 million and $290 million, a decrease of 8.3% from $300 million in 2024[9] - Adjusted EBITDA for the three months ended June 30, 2025, was $28388 thousand with a margin of 32%, compared to $23289 thousand and a 27% margin for the same period in 2024[36] Glo Fiber Expansion Markets - Glo Fiber added 5,700 new subscribers[5] - Glo Fiber expanded by over 16,000 new passings[5] - Glo Fiber revenue experienced a 40.5% growth[5] Broadband Metrics - Broadband average revenue per user (ARPU) in Glo Fiber Expansion Markets was $76.72 in Q2 2025, compared to $77.56 in Q2 2024[37] - Total broadband revenue increased from $39816 thousand in Q2 2024 to $44770 thousand in Q2 2025[37] - Total broadband revenue generating units (RGU) increased from 162,577 in Q2 2024 to 185,293 in Q2 2025[37] Commercial Fiber - The company had another record quarter for Commercial Fiber sales bookings[5]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Shenandoah Telecommunications Company as of June 30, 2025, and for the three and six-month periods then ended, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed notes explaining key accounting policies and transactions [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1.81 billion** from **$1.74 billion** at year-end 2024, primarily driven by growth in Property, Plant, and Equipment, while total liabilities also rose, and shareholders' equity slightly decreased Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,814,674** | **$1,740,273** | | Cash and cash equivalents | $29,077 | $46,272 | | Property, plant and equipment, net | $1,523,994 | $1,438,538 | | **Total Liabilities** | **$837,277** | **$739,226** | | Long-term debt, less current maturities | $501,611 | $407,675 | | **Total Shareholders' Equity** | **$901,964** | **$918,583** | [Unaudited Condensed Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, the company reported a net loss of **$9.0 million**, an improvement from a **$12.9 million** loss in the same period of 2024, while the six-month net loss was **$18.2 million** in 2025, compared to a net income of **$201.8 million** in 2024, which included a significant gain from discontinued operations Q2 2025 vs Q2 2024 Statement of Operations (in thousands, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Service revenue and other | $88,568 | $85,799 | | Operating loss | $(9,108) | $(15,885) | | Loss from continuing operations | $(9,048) | $(12,773) | | Net (loss) income | $(9,048) | $(12,872) | | Net (loss) income per share | $(0.19) | $(0.24) | Six Months 2025 vs 2024 Statement of Operations (in thousands, except per share) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Service revenue and other | $176,466 | $155,047 | | Operating loss | $(15,200) | $(18,661) | | Loss from continuing operations | $(18,180) | $(16,863) | | Net (loss) income | $(18,180) | $201,824 | | Net (loss) income per share | $(0.38) | $3.84 | - The significant net income in the first six months of 2024 was driven by a **$216.8 million** gain on the sale of discontinued operations[10](index=10&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operations increased to **$41.5 million**, investing activities used **$151.9 million** primarily for capital expenditures, and financing provided **$93.2 million** from **$100 million** in credit facility borrowings, leading to a **$17.2 million** decrease in cash to **$29.1 million** Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,470 | $17,699 | | Net cash used in investing activities | $(151,908) | $(183,130) | | Net cash provided by financing activities | $93,243 | $69,955 | | **Net decrease in cash** | **$(17,195)** | **$(95,476)** | | **Cash at end of period** | **$29,077** | **$43,779** | - Capital expenditures for the first six months of 2025 were **$169.4 million**, up from **$150.9 million** in the same period of 2024[17](index=17&type=chunk) - The company received **$100 million** from credit facility borrowings in the first half of 2025, compared to none in the prior year period[17](index=17&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the financial statements, including the basis of presentation, Horizon acquisition details, revenue segmentation, debt structure and covenants, derivative hedging, and discontinued operations related to the Tower Portfolio sale - The company provides broadband data, video, and voice services in **eight states** via fiber optic and hybrid fiber coaxial cable networks[18](index=18&type=chunk) - On April 1, 2024, Shentel completed the acquisition of Horizon for a total purchase price of **$416.2 million**, consisting of **$349.4 million** in cash and **$71.8 million** in common stock[24](index=24&type=chunk)[25](index=25&type=chunk) - On March 29, 2024, the company completed the sale of its Tower Portfolio for **$309.9 million**, which is now treated as a discontinued operation[72](index=72&type=chunk) - The company operates as a **single segment**, and the Chief Operating Decision Maker (CODM) assesses performance at a consolidated level using Adjusted EBITDA[74](index=74&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the three and six months ended June 30, 2025, highlighting revenue growth in Glo Fiber Expansion markets, declines in incumbent markets, the impact of the Horizon acquisition, liquidity, capital resources, and debt obligations [Results of Operations](index=24&type=section&id=Results%20of%20Operations) For Q2 2025, total revenue grew **3.2%** to **$88.6 million**, driven by a **40.5%** increase in Glo Fiber Expansion revenue, while operating loss narrowed to **$9.1 million**; for the six-month period, revenue increased **13.8%** to **$176.5 million**, boosted by the inclusion of Horizon's results Q2 2025 vs Q2 2024 Revenue by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | Change % | | :--- | :--- | :--- | :--- | | Residential & SMB - Incumbent Broadband | $42,837 | $44,243 | (3.2)% | | Residential & SMB - Glo Fiber Expansion | $19,796 | $14,093 | 40.5% | | Commercial Fiber | $19,483 | $20,723 | (6.0)% | | RLEC & Other | $6,452 | $6,740 | (4.3)% | | **Total revenue** | **$88,568** | **$85,799** | **3.2%** | - The **40.5%** increase in Glo Fiber revenue was driven by a **43.1%** year-over-year growth in data RGUs[92](index=92&type=chunk) - Restructuring, integration, and acquisition expenses decreased by **98.2%** in Q2 2025 compared to Q2 2024, as the prior year included significant costs related to the Horizon acquisition[99](index=99&type=chunk) - For the six months ended June 30, 2025, total revenue increased **13.8%** to **$176.5 million**, with Commercial Fiber revenue growing **27.3%**, largely due to the inclusion of Horizon's results for the full period[104](index=104&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=30&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) As of June 30, 2025, total available liquidity was **$266.7 million**, comprising **$29.1 million** in cash, **$143.0 million** available under its revolver, and **$94.6 million** in government grants, with net indebtedness at **$511.8 million** - Total available liquidity as of June 30, 2025, was **$266.7 million**[124](index=124&type=chunk) - The company has been awarded approximately **$151.1 million** in government grants to expand broadband to unserved areas, with **$94.6 million** still available as of June 30, 2025[123](index=123&type=chunk) - Capital expenditures of **$169.4 million** in the first half of 2025 exceeded net cash from operations by **$125.7 million**, a trend expected to continue through 2026 due to Glo Fiber expansion[132](index=132&type=chunk) - The company was in compliance with all financial covenants in its Credit Agreement as of June 30, 2025, after an amendment increased the maximum Total Net Leverage Ratio to **4.75:1.00**[130](index=130&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risk from interest rate fluctuations on its **$513.1 million** variable-rate debt, where a **1.00%** increase would add **$5.1 million** to annual interest expense, mitigated by interest rate swaps on **$150.0 million** notional principal at a fixed rate of **2.90%** through June 2026 - As of June 30, 2025, the company had **$513.1 million** of gross variable rate debt outstanding[137](index=137&type=chunk) - A hypothetical **1.00%** increase in interest rates would increase annual interest expense by approximately **$5.1 million**[137](index=137&type=chunk) - The company uses interest rate swaps with a notional principal of **$150.0 million** to hedge against interest rate risk on a portion of its term loans, effectively paying a fixed rate of **2.90%** plus margin[138](index=138&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The certifying officers concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[139](index=139&type=chunk) - No **material changes** in internal control over financial reporting occurred during the quarter[140](index=140&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business but does not believe the final outcome of any current matters is reasonably likely to have a material adverse effect on its business, financial condition, or results of operations - Management does not believe that the outcome of any current litigation is reasonably likely to have a **material adverse effect** on the company's financial position or results[142](index=142&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company refers to the risk factors disclosed in its Annual Report on Form 10-K and notes one additional risk factor identified as of June 30, 2025, related to potential cost pressures from tariffs - One additional risk factor related to potential cost pressures from tariffs has been identified since the last Annual Report[143](index=143&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period, though **18,000 shares** were surrendered by employees to cover tax withholding obligations related to the vesting of stock awards - No unregistered sales of equity securities occurred during the quarter[144](index=144&type=chunk) Shares Surrendered for Tax Withholding (Q2 2025) | Month | Number of Shares Surrendered (in thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | April | — | $— | | May | — | — | | June | 18 | $13.23 | | **Total** | **18** | | [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No officers or directors adopted or terminated any Rule 10b5-1 trading arrangements during the second quarter of 2025[148](index=148&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including Amendment No. 4 to the Credit Agreement, certifications from principal officers, and XBRL data files - Key exhibits filed include Amendment No. 4 to the Credit Agreement and certifications by the Principal Executive Officer and Principal Financial Officer[151](index=151&type=chunk)

[Second Quarter 2025 Performance Overview](index=1&type=section&id=Shenandoah%20Telecommunications%20Company%20Reports%20Second%20Quarter%202025%20Results) Shentel's second quarter of 2025 was marked by strong growth in its Glo Fiber segment and the successful integration of Horizon Telcom [Key Highlights and Management Commentary](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Shentel's second quarter of 2025 was marked by strong growth in its Glo Fiber segment and the successful integration of Horizon Telcom, driving sustainable Adjusted EBITDA growth and margin expansion - Glo Fiber revenue grew **40.5%** over the same period a year ago, with an incremental margin of **71%**[3](index=3&type=chunk) - The company realized the full impact of its projected **$13.8 million** of annual run-rate synergies from the Horizon Telcom acquisition in the second quarter[3](index=3&type=chunk) [Consolidated Financial Results (Q2 2025 vs. Q2 2024)](index=1&type=section&id=Second%20Quarter%202025%20Results%20Compared%20with%20Second%20Quarter%202024) In Q2 2025, Shentel's total revenue grew 3.2% to $88.6 million, driven by a 40.5% increase in Glo Fiber Expansion Markets revenue, significantly improving profitability with a narrowed net loss and 21.9% Adjusted EBITDA growth Q2 2025 vs. Q2 2024 Financial Comparison | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $88.6M | $85.8M | 3.2% | | Glo Fiber Expansion Markets Revenue | $19.8M | $14.1M | 40.5% | | Net Loss from Continuing Operations | ($9.0M) | ($12.8M) | (29.7%) | | Adjusted EBITDA | $28.4M | $23.3M | 21.9% | | Adjusted EBITDA Margin | 32% | 27% | +5 pts | - Revenue growth was primarily driven by a **43.1%** year-over-year increase in Glo Fiber Expansion Markets data subscribers (RGUs)[5](index=5&type=chunk)[6](index=6&type=chunk) - Restructuring, integration, and acquisition expenses decreased by **$11.1 million**, or **98.2%**, as costs related to the Horizon acquisition in 2024 did not recur[6](index=6&type=chunk) - Depreciation and amortization increased by **$9.5 million (37.2%)**, partly due to a **$4.2 million** write-off of plant under construction inventory assets[6](index=6&type=chunk) [Operational and Liquidity Update](index=2&type=section&id=Operational%20and%20Liquidity%20Update) As of June 30, 2025, Shentel expanded its network to approximately 623,000 total broadband homes passed, maintaining a strong liquidity position of $266.7 million while increasing capital expenditures to support network growth and completing a small fiber asset acquisition - Total broadband homes passed grew by **92,847** year-over-year to approximately **623,000**[7](index=7&type=chunk) - As of June 30, 2025, total available liquidity was **$266.7 million**, including **$29.1 million** in cash, **$143.0 million** in credit facility availability, and **$94.6 million** in available government grant reimbursements[12](index=12&type=chunk) - Capital expenditures for the six months ended June 30, 2025, were **$169.4 million**, an increase of **$18.5 million** from the prior year, driven by network expansion[12](index=12&type=chunk) - The company completed the acquisition of fiber-to-the-home assets in Virginia on July 9, 2025, for **$5 million**, adding over **1,500** passings and **700** customers[12](index=12&type=chunk) [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) Shentel has initiated its financial guidance for the full year ending December 31, 2025, projecting significant growth in revenue and Adjusted EBITDA [2025 Financial Guidance](index=2&type=section&id=2025%20Financial%20Guidance) Shentel has initiated its financial guidance for the full year ending December 31, 2025, projecting total revenue between $352 million and $357 million, Adjusted EBITDA between $113 million and $118 million, and anticipated decreased net capital expenditures compared to 2024 Full Year 2025 Financial Guidance | Metric (in millions) | 2025 Guidance (Midpoint) | 2024 Actual | YoY % Change (Midpoint) | | :--- | :--- | :--- | :--- | | Total Revenue | $354.5 | $328 | 8.1% | | Adjusted EBITDA | $115.5 | $95 | 21.6% | | Capital Expenditures, net | $275.0 | $300 | (8.3%) | - The company does not provide a reconciliation for its Adjusted EBITDA forecast to GAAP net income due to the difficulty in predicting special items[10](index=10&type=chunk) [Detailed Financial Statements](index=3&type=section&id=Detailed%20Financial%20Statements) This section provides a detailed overview of Shentel's financial performance and position through its statements of operations, balance sheets, and cash flows [Statements of Operations](index=3&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 30, 2025, Shentel reported total service revenue of $88.6 million, with a narrowed operating loss and improved net loss from continuing operations, largely due to lower restructuring expenses and controlled cost of services Q2 2025 Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Service revenue and other | $88,568 | $85,799 | | Total operating expenses | $97,676 | $101,684 | | Operating loss | ($9,108) | ($15,885) | | Loss from continuing operations | ($9,048) | ($12,773) | | Net loss per share (continuing ops) | ($0.19) | ($0.24) | - For the six months ended June 30, 2025, the net loss from continuing operations was **$18.2 million**, compared to **$16.9 million** in the same period of 2024[16](index=16&type=chunk) [Balance Sheets](index=4&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Shentel's total assets increased to $1.81 billion, primarily driven by growth in property, plant, and equipment, while total liabilities also rose due to increased long-term debt, and total shareholders' equity slightly decreased Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $29,077 | $46,272 | | Property, plant and equipment, net | $1,523,994 | $1,438,538 | | Total assets | $1,814,674 | $1,740,273 | | Long-term debt, less current | $501,611 | $407,675 | | Total liabilities | $827,277 | $739,226 | | Total shareholders' equity | $901,964 | $918,583 | [Statements of Cash Flows](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash provided by operating activities significantly improved to $41.5 million, while net cash used in investing activities was $151.9 million, primarily for capital expenditures, and net cash provided by financing activities was $93.2 million, driven by credit facility borrowings Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $41,470 | $17,699 | | Net cash used in investing activities | ($151,908) | ($183,130) | | Net cash provided by financing activities | $93,243 | $69,955 | | Net decrease in cash | ($17,195) | ($95,476) | | Cash and cash equivalents, end of period | $29,077 | $43,779 | - Capital expenditures totaled **$169.4 million**, offset by **$17.3 million** in government grants received during the first six months of 2025[19](index=19&type=chunk)[20](index=20&type=chunk) [Non-GAAP Measures and Supplemental Data](index=6&type=section&id=Non-GAAP%20Measures%20and%20Supplemental%20Data) This section provides a reconciliation of non-GAAP measures, specifically Adjusted EBITDA, along with key operating statistics and average revenue per user (ARPU) data [Reconciliation of Non-GAAP Measures (Adjusted EBITDA)](index=6&type=section&id=Non-GAAP%20Financial%20Measures) Shentel uses Adjusted EBITDA, a non-GAAP measure, to evaluate operating performance, reporting $28.4 million for Q2 2025, a 21.9% increase from Q2 2024, with margin expansion from 27% to 32% Adjusted EBITDA Reconciliation (Q2, in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Loss from continuing operations | ($9,048) | ($12,773) | | Depreciation and amortization | $35,103 | $25,579 | | Restructuring, integration and acquisition | $206 | $11,325 | | Other Adjustments (Interest, Tax, etc.) | $2,837 | ($2,842) | | **Adjusted EBITDA** | **$28,388** | **$23,289** | - The company defines Adjusted EBITDA as loss from continuing operations adjusted for items like depreciation, amortization, interest, taxes, stock compensation, and transaction/restructuring costs[21](index=21&type=chunk) [Operating Statistics](index=7&type=section&id=Operating%20Statistics) As of June 30, 2025, Shentel's network reached 622,923 homes and businesses, a substantial increase driven by 27.3% growth in Glo Fiber Expansion Market passings, with total Residential & SMB Revenue Generating Units (RGUs) growing to 251,761, led by a 14.3% increase in Broadband Data RGUs, despite a 10.6% decline in video RGUs Key Operating Metrics (as of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total homes and businesses passed | 622,923 | 530,076 | | Glo Fiber Expansion Markets passed | 378,916 | 297,545 | | Total Residential & SMB RGUs | 251,761 | 231,468 | | Broadband Data RGUs | 188,006 | 164,541 | | Video RGUs | 37,626 | 42,079 | [Residential & SMB ARPU](index=8&type=section&id=Residential%20%26%20SMB%20ARPU) For Q2 2025, Broadband Data ARPU was $80.56, a slight decrease from Q2 2024, while Incumbent Broadband Markets ARPU remained stable at $83.05, Glo Fiber Expansion Markets ARPU was $76.72, and Video ARPU significantly increased to $125.15 despite subscriber decline ARPU for Three Months Ended June 30 | ARPU Category | 2025 | 2024 | | :--- | :--- | :--- | | Incumbent Broadband Markets | $83.05 | $83.49 | | Glo Fiber Expansion Markets | $76.72 | $77.56 | | Broadband Data | $80.56 | $81.64 | | Video | $125.15 | $116.96 | | Voice | $32.68 | $35.21 |