Shenandoah Telecom misses Q1 estimates, shares drop

Published 30/04/2025, 13:58
Shenandoah Telecom misses Q1 estimates, shares drop

Investing.com -- Shenandoah Telecommunications Company (NASDAQ:SHEN) reported first quarter 2025 results that fell short of analyst expectations, sending shares down 4.7% in response.

The telecommunications company posted a loss of $0.19 per share, wider than the $0.14 loss analysts had forecast. Revenue came in at $87.9 million, missing the consensus estimate of $90.71 million but growing 26.9% YoY.

Shentel’s net loss from continuing operations expanded to $9.1 million in Q1 2025, compared to a $4.1 million loss in the same period last year. The company attributed the increased loss primarily to higher depreciation and amortization expenses related to its Horizon acquisition and Glo Fiber network expansion.

Despite the earnings miss, Shentel highlighted strong growth in its Glo Fiber Expansion Markets, where data subscribers increased 51% YoY to approximately 71,000. Revenue from these markets grew 52% to $18.4 million.

"We are pleased with our growth in the first quarter of 2025, as we continued to execute well in our Glo Fiber Expansion Markets with 5,400 new subscribers, 16,600 new passings and 52% revenue growth," said President and CEO Christopher E. French.

Adjusted EBITDA rose 43.3% to $27.6 million. Excluding the former Horizon markets, adjusted EBITDA grew by $3.9 million, or 20.6%.

The company’s total broadband homes passed increased by 128,000 to approximately 604,000, including 363,000 Glo Fiber Expansion Market passings.

Capital expenditures for the quarter were $83.2 million, up from $70.1 million in the comparable 2024 period, driven by network expansion efforts.

As of March 31, 2025, Shentel reported total available liquidity of approximately $334.6 million, including cash and cash equivalents of $87.5 million.

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