Shenandoah Telecommunications Company (Shentel) reported a service revenue of $93.5 million for the second quarter of 2026, marking a 5.5% increase from $88.6 million in the same period last year. For the first half of 2026, total revenue reached $185.6 million, up from $176.5 million in the prior year. Despite this revenue growth, the company experienced a net loss of $7.7 million for the quarter, an improvement from a loss of $9.0 million in Q2 2025. The net loss for the first half of 2026 was $23.5 million, compared to $18.2 million in the same period last year.
The company’s financial performance was influenced by several factors, including a decline in revenue from its Incumbent Broadband Markets, which fell by 6.0% due to decreased video and data revenue. Conversely, revenue from Glo Fiber Expansion Markets surged by 32.8%, driven by a significant increase in data residential and small medium business (SMB) customers. The Commercial Fiber segment also saw a 9.8% increase in revenue, attributed to growth in enterprise and carrier verticals. Overall, operating expenses decreased by 3.3% to $94.5 million, primarily due to lower depreciation and amortization costs.
In terms of strategic developments, Shentel has been focusing on expanding its Glo Fiber network, which has resulted in a notable increase in homes passed, from 622,923 in June 2025 to 728,736 in June 2026. The company reported a total of 272,403 residential and SMB revenue-generating units (RGUs), up from 251,761 a year earlier. This growth reflects the company's efforts to enhance its broadband offerings and customer engagement in new markets.
Operationally, Shentel has also undergone a reduction in force, impacting approximately 10% of its workforce, as part of its strategy to align resources with the completion of the Glo Fiber construction phase expected by the end of 2026. The company recorded restructuring expenses of $2.6 million in the first half of 2026, primarily related to severance costs. Additionally, Shentel has been awarded $151.2 million in government grants to expand broadband services, with $123.9 million received to date.
Looking ahead, Shentel anticipates that its cash on hand, restricted cash, and cash flows from operations will be sufficient to meet its liquidity needs over the next twelve months. However, the company acknowledges that its capital expenditures are expected to exceed cash flows from operations as it continues to invest in its Glo Fiber network expansion. The company remains focused on enhancing its service offerings and customer base while navigating the challenges posed by market conditions and competition.
About SHENANDOAH TELECOMMUNICATIONS CO/VA/
Shentel provides broadband internet, video, and voice services via fiber-optic and cable networks to residential and commercial customers in the eastern U.S. It leases dark fiber, offers enterprise Ethernet, and manages network services. The company operates in regulated markets, competes with cable, fiber, and wireless providers, and leverages federal grants for broadband expansion, focusing on high-speed connectivity and integrated communication solutions.
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