Shenandoah Telecommunications Company Reports Second Quarter 2025 Results

Core Insights - Shenandoah Telecommunications Company ("Shentel") reported strong growth in its Glo Fiber segment, with revenue increasing by 40.5% year-over-year and an incremental margin of 71% [3][5] - The company achieved $13.8 million in annual run-rate synergies from the Horizon Telcom acquisition, fully realized in the second quarter of 2025 [3][5] - Adjusted EBITDA grew by 21.9% to $28.4 million, with an expanded margin from 27% in Q2 2024 to 32% in Q2 2025 [5][24] Financial Performance - Total revenue for Q2 2025 was $88.6 million, a 3.2% increase from Q2 2024 [5][6] - Glo Fiber Expansion Markets data subscribers increased by 43.1% to approximately 76,000 [5] - Net loss from continuing operations decreased to $9.0 million from $12.8 million in the same quarter last year [5][15] Revenue Breakdown - Glo Fiber Expansion Markets revenue rose by $5.7 million, or 40.5%, to $19.8 million [6] - Residential & SMB - Incumbent Broadband Markets revenue declined by $1.4 million, or 3.2%, due to a 14.5% drop in video RGUs [6] - Commercial Fiber revenue decreased by $1.2 million, or 6.0%, primarily due to a non-cash deferred revenue adjustment [6] Cost Management - Cost of services decreased by $1.9 million, or 5.5%, attributed to lower network payroll and programming costs [6] - Selling, general and administrative expenses fell by $0.5 million, or 1.6%, due to reduced professional fees [6] - Restructuring, integration, and acquisition expenses dropped significantly by $11.1 million, or 98.2%, compared to the previous year [6] Capital Expenditures and Financial Outlook - Capital expenditures for the first half of 2025 were $169.4 million, up from $150.9 million in the same period of 2024 [11] - The company initiated 2025 financial guidance, projecting total revenue between $352 million and $357 million, representing an 8.1% increase from 2024 [8][9] - Adjusted EBITDA guidance for 2025 is set between $113 million and $118 million, indicating a 21.6% growth [9] Operational Statistics - Total broadband homes passed increased by 92,847 to approximately 623,000 [5] - The company owns over 17,700 route miles of fiber, supporting its broadband services [12]