SHENANDOAH TELECOMMUNICATION (NASDAQ:SHEN) reported mixed second-quarter results this morning that included an earnings per share beat alongside a revenue shortfall, sending shares lower in pre-market trading.
Q2 Results: EPS Beat, Revenue Slightly Below Forecast
For the quarter ended June 30, 2026, Shenandoah Telecommunications Company (NASDAQ:SHEN) posted a net loss of $7.7 million, or a loss of $0.17 per share. That bottom-line result came in better than the analyst consensus estimate of a $0.25 per share loss, representing a meaningful upside surprise. Revenue, however, totaled $93.5 million, falling about 1.3% short of the $94.7 million analysts had expected. Given the small deviation, the top line is best characterized as slightly below expectations rather than a clear miss.
Key performance drivers in the quarter:
- Glo Fiber Expansion Markets revenue surged 32.8% year over year to $26.3 million, driven by a 32.1% increase in data revenue-generating units as the company added a record 6,200 net fiber customers.
- Incumbent Broadband Markets revenue declined 6.0% to $40.3 million due to video subscriber losses and lower data ARPU from competitive pressure.
- Commercial Fiber revenue rose 9.8% to $21.4 million, supported by recurring enterprise and carrier revenue.
- Adjusted EBITDA grew 12.9% to $32.0 million, reflecting operational leverage from the scaling fiber business.
The company’s fiber businesses (Glo Fiber plus Commercial Fiber) now account for 51% of total revenue, up from a smaller share a year earlier, underscoring the strategic shift away from legacy cable and DSL services.
Guidance Reaffirmed but Below Analyst Expectations
Management reiterated its full-year 2026 outlook, calling for total revenue in the range of $370 million to $377 million. That range is below the current analyst consensus of $381.4 million, which may explain the negative market reaction even after the EPS beat. The guidance implies revenue growth of roughly 4.4% at the midpoint from 2025’s $358 million. Adjusted EBITDA is forecast at $131 million to $136 million, representing 12% growth from $119 million in 2025.
Capital expenditures net of government grants are expected to fall sharply to $220 million to $250 million, down from $296 million last year, as the Glo Fiber construction phase winds down. The company also announced in February a 10% workforce reduction that is expected to save approximately $12.3 million annually beginning in 2027.
Market Reaction and Outlook
Shares were trading roughly 2.9% lower in pre-market action, suggesting that the revenue shortfall and below-consensus full-year guidance are weighing more heavily than the earnings beat. The market may also be reflecting ongoing headwinds in the incumbent broadband markets, where video and data ARPU continue to decline, and the elevated debt level of $715 million on the balance sheet.
That said, the rapid scaling of the Glo Fiber business — which crossed the 100,000-customer milestone during the quarter — provides a solid growth engine going forward. The net loss narrowed year over year, and free cash flow is expected to improve as capital spending declines.
Investors can review more historical earnings data on the company's earnings results page. For a look at consensus estimates and future projections, the forecast page provides updated analyst expectations.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »
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Shenandoah Telecommunication (NASDAQ:SHEN) Shares Dip as Q2 Revenue Miss and Below-Consensus Guidance Offset EPS Beat
SHENANDOAH TELECOMMUNICATION (NASDAQ:SHEN) reported mixed second-quarter results this morning that included an earnings per share beat alongside a revenue shortfall, sending shares lower in pre-market trading.
Q2 Results: EPS Beat, Revenue Slightly Below Forecast
For the quarter ended June 30, 2026, Shenandoah Telecommunications Company (NASDAQ:SHEN) posted a net loss of $7.7 million, or a loss of $0.17 per share. That bottom-line result came in better than the analyst consensus estimate of a $0.25 per share loss, representing a meaningful upside surprise. Revenue, however, totaled $93.5 million, falling about 1.3% short of the $94.7 million analysts had expected. Given the small deviation, the top line is best characterized as slightly below expectations rather than a clear miss.
Key performance drivers in the quarter:
The company’s fiber businesses (Glo Fiber plus Commercial Fiber) now account for 51% of total revenue, up from a smaller share a year earlier, underscoring the strategic shift away from legacy cable and DSL services.
Guidance Reaffirmed but Below Analyst Expectations
Management reiterated its full-year 2026 outlook, calling for total revenue in the range of $370 million to $377 million. That range is below the current analyst consensus of $381.4 million, which may explain the negative market reaction even after the EPS beat. The guidance implies revenue growth of roughly 4.4% at the midpoint from 2025’s $358 million. Adjusted EBITDA is forecast at $131 million to $136 million, representing 12% growth from $119 million in 2025.
Capital expenditures net of government grants are expected to fall sharply to $220 million to $250 million, down from $296 million last year, as the Glo Fiber construction phase winds down. The company also announced in February a 10% workforce reduction that is expected to save approximately $12.3 million annually beginning in 2027.
Market Reaction and Outlook
Shares were trading roughly 2.9% lower in pre-market action, suggesting that the revenue shortfall and below-consensus full-year guidance are weighing more heavily than the earnings beat. The market may also be reflecting ongoing headwinds in the incumbent broadband markets, where video and data ARPU continue to decline, and the elevated debt level of $715 million on the balance sheet.
That said, the rapid scaling of the Glo Fiber business — which crossed the 100,000-customer milestone during the quarter — provides a solid growth engine going forward. The net loss narrowed year over year, and free cash flow is expected to improve as capital spending declines.
Investors can review more historical earnings data on the company's earnings results page. For a look at consensus estimates and future projections, the forecast page provides updated analyst expectations.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »