Shenandoah Telecommunications (SHEN) investor relations material

Company overview and strategy

• Evolved from a cable telephone company to a fiber-to-the-home broadband provider, now operating in eight states with a 18,000-mile fiber network and over $350M in projected annual revenue.

• Residential business makes up 75% of operations, with 380,000 homes and businesses passed by Glo Fiber and a target of 500,000–550,000 passings by end of 2026.

• Focuses on being the first fiber provider in new markets, targeting areas with favorable demographics and aiming for a 37% terminal penetration rate and 15%+ unlevered IRR.

• Avoids markets with existing fiber providers and uses flexible franchise agreements to select optimal build areas.

• Competes mainly with Comcast, Charter, and Cox, with limited fiber competition from LECs.

Competitive landscape and market dynamics

• Faces aggressive promotional pricing from cable competitors but sees little impact from mobile bundles or fixed wireless due to challenging topography and limited wireless effectiveness.

• Maintains low churn rates and high customer satisfaction, with a Net Promoter Score of 69 and churn around 1%.

• Customer acquisition driven by word-of-mouth, local engagement, and targeted digital marketing, with a strong emphasis on local customer service.

• High ARPU ($77) achieved by focusing on middle-to-high-end market segments, with over half of new customers choosing gigabit-plus plans.

Expansion, acquisitions, and funding

• Recent acquisition of Horizon Telecom doubled commercial fiber business and expanded network reach, enabling better service to rural and metropolitan data centers.

• Upsized credit facility to $675M and issued $80M in preferred equity; plans to refinance using ABS to lower debt costs and potentially upsize by $50M.

• Expects to complete major fiber build by 2026, turning free cash flow positive in 2027 and reducing leverage below 3x by 2028–29.

• Capital allocation may shift to increased dividends or share buybacks as new build opportunities diminish.