Shenandoah Telecommunications Company (SHEN) Q1 2025 earnings summary

Executive summary

• Revenue rose 26.9% year-over-year to $87.9 million, driven by Glo Fiber expansion and the Horizon acquisition, with strong subscriber and revenue growth across all business lines.

• Glo Fiber Expansion Markets data subscribers grew 51% to 71,000, with revenue up 52% to $18.4 million; 5,400 new Glo Fiber subscribers and 16,600 new passings were added.

• Mature Glo Fiber market cohorts delivered free cash flow margins over 40%, with expectations for further margin expansion as penetration increases.

• Commercial Fiber sales bookings reached a record $196,000 in new monthly recurring revenue.

• Net loss attributable to common shareholders was $10.6 million, compared to net income of $214.7 million in the prior year, mainly due to higher depreciation and interest from expansion.

Financial highlights

• Total revenues grew 27% year-over-year to $87.9 million in Q1 2025.

• Adjusted EBITDA increased 43% to $27.6 million, with margins rising from 28% to 31%.

• Excluding Horizon, revenues grew 5% and adjusted EBITDA grew 21% year-over-year.

• Depreciation and amortization rose 68.9% to $29.5 million, reflecting Horizon assets and Glo Fiber network buildout.

• Commercial Fiber revenue nearly doubled, up 97.3% year-over-year, primarily from Horizon.

Outlook and guidance

• Construction phase for Glo Fiber and government grant projects expected to be substantially complete by end of 2026.

• Targeting 550,000 Glo Fiber passings and over 800,000 total broadband passings by end of 2026.

• Capital investments for 2025 projected at $250–$280 million, net of $60–$70 million in government subsidies.

• Capital intensity expected to drop to 20–25% of revenues in 2027, with free cash flow positive outlook.

• EBITDA margins expected to grow 300–400 basis points annually as Glo Fiber penetration increases.