Earnings

Shentel Raises 2026 Capital Spending as Fiber Expansion Nears End

The Tip Desk · November 9, 2026 · 3 min read

Glo Fiber net additions hit a record 8,600 in the third quarter as the company lifted year-end capital expenditure guidance, net of grants, to $255 million to $275 million.

Shenandoah Telecommunications Company (SHEN) posted a record 8,600 Glo Fiber net additions in the third quarter and passed 500,000 homes and businesses on its expansion network, as President and CEO Ed McKay said the company was entering a customer-growth phase after major construction programs near completion.

Total revenue was $93.9 million, up 4.6% from a year earlier, a slower year-over-year pace than the 5.5% increase to $93.5 million in the second quarter. Adjusted EBITDA was $33.2 million, up 11.8% from a year earlier, with a 35% margin versus 33% a year earlier. Net loss was $9.2 million, compared with $9.4 million in the third quarter of 2025. Net loss attributable to common shareholders was $10.8 million, or $0.19 a share.

Glo Fiber Expansion Markets revenue was $28.2 million, up 32.2% from a year earlier, after 32.8% growth to $26.3 million in the second quarter. The company said the increase was primarily due to a 31.8% rise in data revenue generating units from higher penetration and more passings. Fiber businesses — Glo Fiber Expansion Markets plus Commercial Fiber — now represented 52% of total revenue, up from 51% in the prior quarter. Glo Fiber Expansion Markets passings were 500,584 as of September 30, 2026. Residential and SMB RGUs in those markets were 108,787, with penetration at 21.7%.

Incumbent Broadband Markets revenue was $39.1 million, down 6.8% from a year earlier, a wider decline than the 6.0% drop to $41.9 million in the second quarter. The company attributed the decrease to lower video and data revenue, including a 13.0% decline in video RGUs as customers switched to streaming. Commercial Fiber revenue was $21.1 million, up 5.9% from a year earlier, after 9.8% growth to $19.9 million in the second quarter. RLEC & Other revenue was $5.5 million, down 16.1% from a year earlier, primarily due to a 35.5% decrease in DSL RGUs.

Cost of services rose $0.5 million, or 1.7%, year over year, which the company said was partially due to building and fleet maintenance, fuel, pole attachment rent from Glo Fiber expansion, and regulatory fees. Selling, general and administrative expense decreased $0.6 million, or 2.1%, year over year. Depreciation and amortization decreased $0.8 million, or 2.3%, including a $3.2 million decline in write-offs.

Capital expenditures were $215.0 million for the nine months ended September 30, 2026, compared with $251.5 million a year earlier. Government grant cash receipts were $22.1 million in that nine-month period, versus $39.9 million a year earlier. Available liquidity was $138.6 million as of September 30, 2026, down from $194.5 million as of March 31, 2026.

The company said it had announced a reduction in force of approximately 10% of employees to align with the end of the Glo Fiber construction phase, expected to be substantially complete by the end of 2026. It expects to save about $12.3 million annually beginning in 2027 and to incur about $2.5 million in restructuring costs. In the nine months ended September 30, 2026, it recorded $2.3 million in severance expense and made $0.5 million of severance payments.

Revenue and Adjusted EBITDA guidance for 2026 remain unchanged at $370 million to $377 million and $131 million to $136 million. The company updated 2026 capital expenditure guidance, net of government grant reimbursements, to $255 million to $275 million from $220 million to $250 million, citing a projected increase in Glo Fiber homes passed from 510,000 to 517,000 by year-end and subsidy reimbursements now projected to extend into 2027. It continues to expect planned network expansion projects to be substantially complete by the end of 2026.

More on SHEN

September 28, 2026 QBook Stronger demand supports expansion as pricing diverges

SHENANDOAH TELECOMMUNICATIONS CO/VA/ — all coverage and financials