Shenandoah Telecommunications Company Reports 26.9% Revenue Growth to $87.9 Million in Q1 2025

Shenandoah Telecommunications Company (Shentel) reported a significant increase in revenue for the first quarter of 2025, achieving $87.9 million, a 26.9% rise from $69.2 million in the same period last year. This growth was primarily driven by the integration of Horizon's operations, which contributed approximately $9.9 million to the Commercial Fiber segment. The company experienced a loss from continuing operations of $9.1 million, compared to a loss of $4.1 million in the prior year, reflecting increased operating expenses and interest costs associated with its expanded debt load.

The company's operating expenses rose to $94.0 million, up 30.5% from $72.0 million in the previous year. This increase was largely attributed to higher costs associated with the Horizon acquisition, including $7.6 million in service costs and a notable rise in depreciation and amortization expenses, which surged by 68.9% to $29.5 million. The company also reported a 20% increase in interest expenses, totaling $4.9 million, as a result of its increased borrowing under the credit agreement.

In terms of operational metrics, Shentel's customer base expanded significantly, with total homes and businesses passed increasing to 603,649, up from 476,081 a year earlier. The company reported a 52.2% increase in revenue from its Glo Fiber Expansion Markets, reflecting strong demand for its fiber-to-the-home services. Additionally, the number of residential and small medium business (SMB) revenue-generating units (RGUs) rose to 246,857, compared to 219,874 in the prior year, indicating a growing customer engagement.

Strategically, Shentel completed the acquisition of Horizon on April 1, 2024, for a total purchase price of $416.2 million, which included both cash and stock components. The company also announced plans to acquire additional fiber-to-the-home assets for $5 million, which will expand its service reach to over 1,500 homes and businesses in Virginia. Furthermore, Shentel amended its credit agreement in April 2025, extending the maturity dates of its revolving credit facility and term loans, while increasing the maximum allowable net leverage ratio to 4.75:1.00.

Looking ahead, Shentel anticipates continued growth driven by its strategic investments in broadband infrastructure and the integration of Horizon's operations. The company expects to leverage its available liquidity, which includes $87.5 million in cash and $143 million in undrawn credit, to support ongoing capital expenditures and operational needs. However, management cautioned that future cash flows may be impacted by various external factors, including economic conditions and competitive pressures.