Core Insights - Shentel's Glo Fiber expansion has shown significant growth, surpassing incumbent broadband revenue in Q4 2025, with a focus on a "fiber-first" strategy and plans to achieve positive free cash flow by 2027 [3][5][19] Company Performance - Shentel reported Q4 2025 revenue of $91.6 million, a 7.2% increase year-over-year, with Adjusted EBITDA rising 31.3% to $33.5 million [5][14][15] - The company ended 2025 with approximately 427,000 homes and businesses passed in Glo Fiber markets, an increase of 81,000 from the previous year [2][6] - Glo Fiber customer additions totaled 5,300 in Q4 and 23,000 for the full year, with total RGUs surpassing 103,000, reflecting a 33% year-over-year growth [7][11] Strategic Initiatives - Management emphasized four strategic pillars: building on legacy operations, completing fiber network expansion, accelerating growth, and positioning for positive free cash flow in 2027 [3] - A workforce reduction of about 10% is planned to align with construction completion, expected to save approximately $12.3 million annually starting in 2027 [4][19] Financial Guidance - For 2026, Shentel projects revenue between $370 million and $377 million and Adjusted EBITDA between $131 million and $136 million [16] - The company invested $359 million in capital expenditures in 2025, with a net CapEx of $296 million after collecting $63 million in government grants [17] Market Position and Competition - Glo Fiber's broadband data ARPU increased to over $77 in Q4, with a notable shift towards higher-speed plans [9][10] - The company has seen a decline in incumbent broadband revenue due to competition and changing consumer preferences, particularly in video services [14][11] Debt Management - A refinancing in December reduced the weighted average interest rate on debt to about 5.75%, saving approximately $11 million annually in cash interest [5][18] - As of December 31, 2025, Shentel had $642 million in outstanding debt, reflecting a significant reduction in interest costs [18]

Financial Data and Key Metrics Changes - Revenues grew 7.2% to $91.6 million in Q4 2025, driven by strong Glo Fiber expansion market revenue growth of $6.5 million, or 39% [19] - Adjusted EBITDA increased by $8 million, or 31.3%, to $33.5 million, with adjusted EBITDA margins rising 670 basis points to 36.5% [21] - Broadband data average revenue per user (ARPU) increased to over $77 in Q4, representing a 2.3% year-over-year increase [11] Business Line Data and Key Metrics Changes - Glo Fiber data RGUs grew 35% in 2025 to 88,000, with total Glo Fiber revenue generating units surpassing 103,000 by year-end, up 33% compared to the prior year [5][9] - Incumbent broadband markets revenue declined by $1.7 million, primarily due to lower video and data revenues from a 14.8% decline in video RGUs [20] - Commercial fiber revenue grew $2 million or 10.8% year-over-year, driven by a negative deferred revenue adjustment in Q4 2024 [19] Market Data and Key Metrics Changes - 88% of Glo Fiber passings are in duopoly markets, with only one fixed broadband competitor, while 70% of incumbent market passings have no fixed broadband competitor [7] - Government-subsidized passings in incumbent broadband markets more than doubled year-over-year to 22,000, with penetration reaching 31% [5] Company Strategy and Development Direction - The company is focused on a fiber-first strategy, aiming to complete its fiber network expansion and achieve positive free cash flow by 2027 [4][18] - The primary focus for 2026 is adding passings in Virginia, Pennsylvania, Maryland, and Ohio markets, despite reducing targeted passings in certain Ohio markets due to rising costs [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory moving into 2026, highlighting strong customer growth and a strengthened balance sheet [7] - The company anticipates a slight decline in adjusted EBITDA margin in the first half of 2026, followed by expansion in the second half [21] Other Important Information - A workforce reduction of approximately 10% was announced to align staffing levels with the planned completion of the Glo Fiber construction phase, expected to incur $3.1 million in restructuring costs [17] - The company successfully refinanced its debt, saving approximately 170 basis points in cash interest expense and extending maturities to 2030 [6][27] Q&A Session Summary Question: CapEx savings from Ohio markets - The CapEx per passing is roughly $1,400, with a focus on construction labor, which constitutes about 75% of that cost. The decision to pass on certain markets was due to the return on investment not meeting expectations [32][33] Question: Competitive pressures and price guarantees - The introduction of a 5-year price guarantee was in response to competition, and while there was an initial impact on gross ads, it was mitigated after launching the company's own guarantee [40][41] Question: M&A strategy - The company is currently focused on completing its build plan and accelerating customer growth, with interest in acquiring pure play fiber providers in the future [42]

FRONTIER Second QUARTER 2025 RESULTS © Frontier Communications. July 29, 2025 Safe Harbor Statement or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance or cash flows as measures of liquidity. Non-GAAP financial measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for results as reported under U.S. GAAP. This presentation includes a reconciliation of certain non-GAAP financial measures ...