Shentel Reports $93.9 Million in Third-Quarter Revenue, Up 4.6% Year Over Year

Key Facts

Shenandoah Telecommunications, known as Shentel and listed on Nasdaq under the ticker SHEN, reported third-quarter 2026 results on October 28, posting total revenue of $93.9 million, up 4.6% year over year. Net loss was $9.2 million, compared with a loss of $9.4 million in the third quarter of 2025. Adjusted earnings before interest, taxes, depreciation and amortization, meanwhile, rose 11.8% to $33.2 million. The results show growth in revenue and adjusted earnings while the company remained in a net-loss position. The official release did not cite a comparison between revenue and analyst estimates.

Expansion markets for Glo Fiber were the main revenue driver, with their revenue rising 32.2% year over year to $28.2 million in the quarter. The company said residential and small and medium-sized business service revenue in those markets increased by $6.9 million, or 32.2%, as data revenue units grew 31.8%. It attributed the increase mainly to higher penetration rates and network expansion, which increased the number of homes and locations passed by fiber. In the second quarter of 2026, revenue in expansion markets was $26.3 million, up 32.8% year over year, putting third-quarter growth at a similar rate while quarterly revenue rose from its previous level. These figures support a reading of the results as reflecting a growing contribution from fiber operations, not evidence that the company exceeded market estimates.

Chief Executive Ed McKay said the Glo Fiber network passed more than 500,000 locations and that the company recorded 8,600 net additions in the quarter, a record. He added that fiber revenue grew about 20% and accounted for 52% of total revenue. These indicators suggest that more than half of revenue now comes from fiber, while the business continues to attract new subscribers as coverage expands. The release links revenue growth in expansion markets to an increase in data revenue units and higher penetration rates, rather than relying solely on a general description of expansion. The results therefore highlight a divergence between new fiber markets and established traditional markets.

In established broadband markets, service revenue faced pressure from customers shifting to online video streaming. The company said video revenue units fell 13.0% compared with the third quarter of 2025, as customers moved to streaming services. Average data revenue per user also declined 3.0% year over year, contributing to a drop in data revenue. These changes illustrate part of the divergence between growth in Glo Fiber’s expansion markets and traditional revenue sources affected by changing subscriber behavior. The pressures limited the effect of fiber growth on total revenue, which rose 4.6% during the quarter.

Capital expenditures totaled $215.0 million in the nine months ended September 30, 2026, compared with $251.5 million in the same period of 2025, a decline of $36.5 million. The company attributed the decrease mainly to the completion of most government grant-funded network construction projects in its established markets. The company nevertheless revised its capital plan to reflect an expected increase in homes passed by the Glo Fiber network by the end of 2026, from 510,000 to 517,000 homes. It said the timing of collection for some grant reimbursements is expected to extend into 2027. At the same time, it said network expansion plans would be largely completed by the end of 2026, shifting the next phase toward customer growth, operating leverage and cash generation, as framed by management.

In the second quarter of 2026, Shentel reported total revenue of $93.5 million, up 5.5% year over year, while revenue in Glo Fiber expansion markets was $26.3 million, up 32.8%. The company had kept its 2026 financial guidance unchanged at the time. On October 28, the results conference was scheduled to be held online at 8:30 a.m. Eastern time, alongside the release of third-quarter results. The announced year-end outlook includes raising the estimate for homes passed by the network to 517,000 from 510,000, with some support reimbursements extending into 2027. The available information did not include the share price or the market’s response to the announcement.