Shenandoah Telecommunications Co 10-Q for FY2026 Q3

Shenandoah Telecommunications Co (SHEN)

10-Q 2026-10-28 For: 2026-09-30

Added on October 28, 2026

About this 10-Q

Shenandoah Telecommunications Co filed this 10-Q on October 28, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Shenandoah Telecommunications Company’s nine-month revenue rose 5.0% to $279,549 thousand, but net loss widened to $32,630 thousand; it contributed approximately $238.6 million of fiber assets to ABS Entities on October 1, 2026. AI summary

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $93.93M; up 4.6% from $89.8M a year earlier
Net loss: $9.18M; compared with a net loss of $9.39M a year earlier
Diluted EPS: -$0.19; compared with -$0.20 a year earlier

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☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2026

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from__________ to __________


Virginia						54-1162807
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Common Stock (No Par Value)	SHEN	NASDAQ Global Select Market	55,365,651
(Title of Class)	(Trading Symbol)	(Name of Exchange on which Registered)	(The number of shares of the registrant's common stock outstanding on October 22, 2026)


(in thousands)	September 30, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	18,647	$	27,259
Restricted cash and cash equivalents	27,009		20,945
Accounts receivable, net of allowance for credit losses of $1,389 and $829, respectively	22,385		31,497
Income taxes receivable	3,447		2,544
Prepaid expenses and other	16,617		15,198
Total current assets	88,105		97,443
Investments	16,308		16,510
Property, plant and equipment, net	1,711,144		1,601,609
Goodwill	67,538		67,538
Intangible assets, net	88,173		89,353
Operating lease right-of-use assets	19,016		19,657
Deferred charges and other assets	18,965		18,652
Total assets	$	2,009,249	$	1,910,762
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	68,219	$	61,355
Advanced billings and customer deposits	18,469		16,909
Accrued compensation	16,816		13,334
Current operating lease liabilities	2,646		2,819
Accrued liabilities and other	17,164		14,079
Total current liabilities	123,314		108,496
Long-term debt, net of unamortized loan fees	747,091		628,237
Other long-term liabilities:
Deferred income taxes	147,921		157,618
Benefit plan obligations	4,439		4,150
Non-current operating lease liabilities	10,143		10,632
Other liabilities	32,367		32,340
Total other long-term liabilities	194,870		204,740
Commitments and contingencies (Note 13)
Temporary equity:
Redeemable noncontrolling interest	93,321		88,506
Shareholders’ equity:
Common stock, no par value, authorized 96,000; 55,365 and 54,899 issued and outstanding at September 30, 2026 and December 31, 2025, respectively	—		—
Additional paid in capital	164,531		157,216
Retained earnings	686,122		723,567
Total shareholders’ equity	850,653		880,783
Total liabilities, temporary equity and shareholders’ equity	$	2,009,249	$	1,910,762


SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Service revenue and other	$	93,934	$	89,796	$	279,549	$	266,262
Operating expenses:
Cost of services, exclusive of depreciation and amortization	32,919		32,384		97,446		98,038
Selling, general and administrative	29,153		29,791		93,562		90,526
Restructuring, integration and acquisition	152		293		2,726		1,009
Depreciation and amortization	33,687		34,492		99,277		99,053
Total operating expenses	95,911		96,960		293,011		288,626
Operating loss	(1,977)		(7,164)		(13,462)		(22,364)
Other (expense) income:
Interest expense	(10,497)		(6,789)		(29,628)		(17,684)
Other income, net	246		1,589		763		5,337
Loss before income taxes	(12,228)		(12,364)		(42,327)		(34,711)
Income tax benefit	(3,048)		(2,974)		(9,697)		(7,141)
Net loss	(9,180)		(9,390)		(32,630)		(27,570)
Dividends on redeemable noncontrolling interest	1,633		1,523		4,815		4,492
Net loss attributable to common shareholders	$	(10,813)	$	(10,913)	$	(37,445)	$	(32,062)

Net loss per share attributable to common shareholders, basic and diluted:
Net loss per share	$	(0.19)	$	(0.20)	$	(0.67)	$	(0.58)

Weighted average shares outstanding	55,814		55,150		55,715		55,083


	Redeemable Noncontrolling Interest			Common Stock
	Shares	Amount		Shares of Common Stock (no par value)	Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total Shareholders’ Equity
Balance, June 30, 2025	81	$	85,433	54,897	$	153,116	$	747,848	$	1,000	$	901,964
Net loss	—	—		—	—		(9,390)		—		(9,390)
Unrealized gain on interest rate hedge, net of tax	—	—		—	—		—		187		187
Amounts reclassified from accumulated other comprehensive income	—	—		—	—		—		(834)		(834)
Stock-based compensation	—	—		—	2,260		—		—		2,260
Common stock issued	—	—		1	14		—		—		14

Preferred stock dividends	—	1,523		—	—		(1,523)		—		(1,523)
Balance, September 30, 2025	81	$	86,956	54,898	$	155,390	$	736,935	$	353	$	892,678

	Redeemable Noncontrolling Interest			Common Stock
	Shares	Amount		Shares of Common Stock (no par value)	Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total Shareholders’ Equity
Balance, December 31, 2024	81	$	82,464	54,605	$	147,733	$	768,997	$	1,853	$	918,583
Net loss	—	—		—	—		(27,570)		—		(27,570)
Unrealized gain on interest rate hedge, net of tax	—	—		—	—		—		147		147
Amounts reclassified from accumulated other comprehensive income	—	—		—	—		—		(1,647)		(1,647)
Stock-based compensation	—	—		375	8,650		—		—		8,650
Common stock issued	—	—		3	42		—		—		42
Shares surrendered for settlement of employee taxes upon issuance of vested equity awards	—	—		(85)	(1,035)		—		—		(1,035)
Preferred stock dividends - paid in kind	—	4,492		—	—		(4,492)		—		(4,492)
Balance, September 30, 2025	81	$	86,956	54,898	$	155,390	$	736,935	$	353	$	892,678


($ in thousands)	Estimated Useful Lives	September 30, 2026		December 31, 2025
Land		$	4,145	$	4,498
Land improvements	10 years	3,538		3,699
Buildings and structures	10 - 45 years	52,558		54,562
Cable and fiber	12 - 30 years	1,718,367		1,519,669
Equipment and software	4 - 12 years	496,977		476,939
Total plant in service		2,275,585		2,059,367
Plant under construction		141,678		181,060
Total property, plant and equipment		2,417,263		2,240,427
Less: accumulated depreciation and amortization		(706,119)		(638,818)
Property, plant and equipment, net		$	1,711,144	$	1,601,609


	September 30, 2026						December 31, 2025
(in thousands)	Gross Carrying Amount		Accumulated Amortization and Other		Net		Gross Carrying Amount		Accumulated Amortization and Other		Net
Goodwill	$	67,538	$	—	$	67,538	$	67,538	$	—	$	67,538
Indefinite-lived intangibles:
Cable franchise rights	64,334		—		64,334		64,334		—		64,334
FCC Spectrum licenses	12,122		—		12,122		12,122		—		12,122
Railroad crossing rights and other	591		—		591		557		—		557
Total indefinite-lived intangibles	77,047		—		77,047		77,013		—		77,013

Finite-lived intangibles:
Subscriber relationships	43,012		(31,987)		11,025		43,012		(30,792)		12,220
Other intangibles	537		(436)		101		537		(417)		120
Total finite-lived intangibles	43,549		(32,423)		11,126		43,549		(31,209)		12,340
Total intangible assets	$	120,596	$	(32,423)	$	88,173	$	120,562	$	(31,209)	$	89,353


	Classification	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)		2026		2025		2026		2025
Finance lease cost
Amortization of leased assets	Depreciation and amortization	$	190	$	175	$	576	$	543
Interest on lease liabilities	Interest expense	56		22		151		68
Operating lease cost	Operating expense1	1,013		1,149		3,045		3,554
Lease cost		$	1,259	$	1,346	$	3,772	$	4,165


(in thousands)	Operating Leases		Finance Leases		Total
2026 (remainder of the year)	$	892	$	2,359	$	3,250
2027	3,223		440		3,663
2028	2,510		444		2,955
2029	1,963		449		2,412
2030	1,639		451		2,090
2031 and thereafter	7,267		5,013		12,280
Total lease payments	17,494		9,156		26,650
Less: Interest	(4,705)		(3,419)		(8,124)
Present value of lease liabilities	$	12,789	$	5,737	$	18,526


(in thousands)	Interest Rates	September 30, 2026		December 31, 2025
Shentel Issuer Class A-2 Notes	5.64%	$	489,142	$	489,142
Shentel Issuer Class B Notes	6.03%	78,263		78,263
Shentel Issuer Variable Funding Note ("VFN")	Floating(1)	74,500		—
Shentel Broadband Revolving Credit Facility ("RCF")	Floating(2)	118,000		75,000
Total debt		759,905		642,405
Less: unamortized loan fees		(12,814)		(14,168)
Long-term debt, net of unamortized loan fees		$	747,091	$	628,237


(in thousands, except weighted average grant price)	Number of Shares	Weighted Average Grant Price
Outstanding awards, December 31, 2025	1,187	$	15.39
Granted	732	13.44
Vested	(503)	15.82
Forfeited	(45)	13.74
Outstanding awards, September 30, 2026	1,371	$	14.24


	Three Months Ended September 30,								Change
($ in thousands)	2026		% of Revenue		2025		% of Revenue		$		%
Broadband operating revenue
Residential & SMB - Incumbent Broadband Markets	$	39,103	41.6	%	$	41,935	46.7	%	$	(2,832)	(6.8)	%
Residential & SMB - Glo Fiber Expansion Markets	28,166		30.0	%	21,305		23.7	%	6,861		32.2	%
Commercial Fiber	21,126		22.5	%	19,957		22.2	%	1,169		5.9	%
RLEC & Other	5,539		5.9	%	6,599		7.3	%	(1,060)		(16.1)	%
Total revenue	93,934		100.0	%	89,796		100.0	%	4,138		4.6	%
Operating expenses
Cost of services, exclusive of depreciation and amortization	32,919		35.0	%	32,384		36.1	%	535		1.7	%
Selling, general and administrative	29,153		31.0	%	29,791		33.2	%	(638)		(2.1)	%
Restructuring, integration and acquisition	152		0.2	%	293		0.3	%	(141)		(48.1)	%

Depreciation and amortization	33,687		35.9	%	34,492		38.4	%	(805)		(2.3)	%
Total operating expenses	95,911		102.1	%	96,960		108.0	%	(1,049)		(1.1)	%
Operating loss	(1,977)		(2.1)	%	(7,164)		(8.0)	%	5,187		(72.4)	%
Other (expense) income:
Interest expense	(10,497)		(11.2)	%	(6,789)		(7.6)	%	(3,708)		54.6	%
Other income, net	246		0.3	%	1,589		1.8	%	(1,343)		(84.5)	%
Loss before income taxes	(12,228)		(13.0)	%	(12,364)		(13.8)	%	136		(1.1)	%
Income tax benefit	(3,048)		(3.2)	%	(2,974)		(3.3)	%	(74)		2.5	%
Net loss	(9,180)		(9.8)	%	(9,390)		(10.5)	%	210		(2.2)	%
Dividends on redeemable noncontrolling interest	1,633		1.7	%	1,523		1.7	%	110		7.2	%
Net loss attributable to common shareholders	$	(10,813)	(11.5)	%	$	(10,913)	(12.2)	%	$	100	(0.9)	%


	Nine Months Ended September 30,								Change
($ in thousands)	2026		% of Revenue		2025		% of Revenue		$		%
Broadband operating revenue
Residential & SMB - Incumbent Broadband Markets	$	120,528	43.1	%	$	128,131	48.1	%	$	(7,603)	(5.9)	%
Residential & SMB - Glo Fiber Expansion Markets	79,283		28.4	%	59,545		22.4	%	19,738		33.1	%
Commercial Fiber	63,054		22.6	%	59,052		22.2	%	4,002		6.8	%
RLEC & Other	16,684		5.9	%	19,534		7.3	%	(2,850)		(14.6)	%
Total revenue	279,549		100.0	%	266,262		100.0	%	13,287		5.0	%
Operating expenses
Cost of services, exclusive of depreciation and amortization	97,446		34.9	%	98,038		36.8	%	(592)		(0.6)	%
Selling, general and administrative	93,562		33.5	%	90,526		34.0	%	3,036		3.4	%
Restructuring, integration and acquisition	2,726		1.0	%	1,009		0.4	%	1,717		170.2	%

Depreciation and amortization	99,277		35.5	%	99,053		37.2	%	224		0.2	%
Total operating expenses	293,011		104.8	%	288,626		108.4	%	4,385		1.5	%
Operating loss	(13,462)		(4.8)	%	(22,364)		(8.4)	%	8,902		(39.8)	%
Other (expense) income:
Interest expense	(29,628)		(10.6)	%	(17,684)		(6.6)	%	(11,944)		67.5	%
Other income, net	763		0.3	%	5,337		2.0	%	(4,574)		(85.7)	%
Loss before income taxes	(42,327)		(15.1)	%	(34,711)		(13.0)	%	(7,616)		21.9	%
Income tax benefit	(9,697)		(3.5)	%	(7,141)		(2.7)	%	(2,556)		35.8	%
Net loss	(32,630)		(11.7)	%	(27,570)		(10.4)	%	(5,060)		NMF
Dividends on redeemable noncontrolling interest	4,815		1.7	%	4,492		1.7	%	323		NMF
Net loss attributable to common shareholders	$	(37,445)	(13.4)	%	$	(32,062)	(12.0)	%	$	(5,383)	NMF


	As of September 30, 2026
(in thousands)	Unrestricted Subsidiaries (ABS Entities)		Restricted Subsidiaries (Non-ABS Entities)		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	18,647	$	—	$	18,647
Restricted cash and cash equivalents	27,009		—		—		27,009
Accounts receivable	9,868		21,107		(8,590)		22,385

Prepaid expenses and other	6,095		16,374		(2,405)		20,064

Total current assets	42,972		56,128		(10,995)		88,105
Investments	—		355,266		(338,958)		16,308
Property, plant and equipment, net	819,838		891,306		—		1,711,144
Goodwill and intangible assets, net	7,515		148,196		—		155,711
Operating lease right-of-use assets	9,997		9,019		—		19,016
Deferred charges and other assets	127,693		8,606		(117,334)		18,965

Total assets	$	1,008,015	$	1,468,521	$	(467,287)	$	2,009,249
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:

Accounts payable	$	11,603	$	65,206	$	(8,590)	$	68,219
Advanced billings and customer deposits	10,254		10,620		(2,405)		18,469
Accrued compensation	—		16,816		—		16,816

Accrued liabilities and other	5,770		15,533		(1,493)		19,810

Total current liabilities	27,627		108,175		(12,488)		123,314
Long-term debt, less current maturities, net of unamortized loan fees	629,472		117,619		—		747,091
Other long-term liabilities:
Deferred income taxes	—		147,921		—		147,921


Other liabilities	34,011		128,778		(115,840)		46,949

Total other long-term liabilities	34,011		276,699		(115,840)		194,870
Temporary equity:
Redeemable noncontrolling interest	—		93,321		—		93,321
Shareholders’ equity:
Total shareholders’ equity	316,905		872,707		(338,959)		850,653
Total liabilities, temporary equity and shareholders’ equity	$	1,008,015	$	1,468,521	$	(467,287)	$	2,009,249


SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)	Nine Months Ended September 30,
	2026		2025
Cash flows from operating activities:
Net loss	$	(32,630)	$	(27,570)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	98,062		97,611
Amortization of intangible assets	1,215		1,442
Stock-based compensation expense, net of amount capitalized	8,427		7,970
Deferred income taxes	(9,697)		(7,103)
Provision for credit losses	1,402		1,481
Other, net	2,905		(97)
Changes in assets and liabilities:
Accounts receivable	(1,443)		2,234
Current income taxes	(903)		187
Operating lease assets and liabilities, net	(119)		(513)
Other assets	(1,329)		(3,176)
Accounts payable	3,288		1,462
Other deferrals and accruals	7,467		531
Net cash provided by operating activities - continuing operations	76,645		74,459
Net cash used in operating activities - discontinued operations	—		(2,251)
Net cash provided by operating activities	76,645		72,208

Cash flows from investing activities:
Capital expenditures	(215,014)		(251,546)
Government grants received	22,109		39,884
Proceeds from escrow related to business acquisition	—		6,471
Cash disbursed for acquisitions, net of cash acquired	—		(5,000)
Proceeds from sale of assets and other	783		276
Net cash used in investing activities	(192,122)		(209,915)

Cash flows from financing activities:
Proceeds from credit facility borrowings	144,500		125,000
Principal payments on long-term debt	(27,000)		(7,607)
Payments for debt issuance and amendment costs	(429)		(951)
Taxes paid for equity award issuances	(1,804)		(1,035)
Payments for financing arrangements and other	(2,338)		(1,351)
Net cash provided by financing activities	112,929		114,056


	As of December 31, 2025
(in thousands)	Unrestricted Subsidiaries (ABS Entities)		Restricted Subsidiaries (Non-ABS Entities)		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	27,259	$	—	$	27,259
Restricted cash and cash equivalents	20,945		—		—		20,945
Accounts receivable	12,580		31,880		(12,963)		31,497

Prepaid expenses and other	5,344		14,803		(2,405)		17,742

Total current assets	38,869		73,942		(15,368)		97,443
Investments	—		392,737		(376,227)		16,510
Property, plant and equipment, net	793,874		807,735		—		1,601,609
Goodwill and intangible assets, net	8,234		148,657		—		156,891
Operating lease right-of-use assets	10,199		9,458		—		19,657
Deferred charges and other assets	129,635		7,794		(118,777)		18,652

Total assets	$	980,811	$	1,440,323	$	(510,372)	$	1,910,762
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities:

Accounts payable	$	7,561	$	66,757	$	(12,963)	$	61,355
Advanced billings and customer deposits	8,953		10,361		(2,405)		16,909
Accrued compensation	—		13,334		—		13,334

Accrued liabilities and other	3,894		14,116		(1,112)		16,898

Total current liabilities	20,408		104,568		(16,480)		108,496
Long-term debt, less current maturities, net of unamortized loan fees	554,288		73,949		—		628,237
Other long-term liabilities:
Deferred income taxes	—		157,618		—		157,618


Other liabilities	33,628		131,159		(117,665)		47,122

Total other long-term liabilities	33,628		288,777		(117,665)		204,740
Temporary equity:
Redeemable noncontrolling interest	—		88,506		—		88,506
Shareholders’ equity:
Total shareholders’ equity	372,487		884,523		(376,227)		880,783
Total liabilities, temporary equity and shareholders’ equity	$	980,811	$	1,440,323	$	(510,372)	$	1,910,762


	Three Months Ended September 30, 2026
(in thousands)	Unrestricted Subsidiaries (ABS Entities)		Restricted Subsidiaries (Non-ABS Entities)		Eliminations		Consolidated
Service revenue and other	$	45,311	$	62,046	$	(13,423)	$	93,934
Operating expenses:
Cost of services exclusive of depreciation and amortization	18,993		21,081		(7,155)		32,919
Selling, general and administrative	7,939		27,482		(6,268)		29,153
Restructuring, integration and acquisition	—		152		—		152
Depreciation and amortization	16,141		17,546		—		33,687
Total operating expenses	43,073		66,261		(13,423)		95,911
Operating (loss) income	2,238		(4,215)		—		(1,977)
Other (expense) income:
Interest expense	(8,844)		(1,653)		—		(10,497)
Other income (expense), net	236		10		—		246
Loss before income taxes	(6,370)		(5,858)		—		(12,228)
Income tax benefit	—		(3,048)		—		(3,048)
Net loss	$	(6,370)	$	(2,810)	$	—	$	(9,180)


	Nine Months Ended September 30, 2026
(in thousands)	Unrestricted Subsidiaries (ABS Entities)		Restricted Subsidiaries (Non-ABS Entities)		Eliminations		Consolidated
Service revenue and other	$	132,401	$	185,595	$	(38,447)	$	279,549
Operating expenses:
Cost of services exclusive of depreciation and amortization	55,018		62,438		(20,010)		97,446
Selling, general and administrative	22,619		89,380		(18,437)		93,562
Restructuring, integration and acquisition	—		2,726		—		2,726
Depreciation and amortization	48,398		50,879		—		99,277
Total operating expenses	126,035		205,423		(38,447)		293,011
Operating (loss) income	6,366		(19,828)		—		(13,462)
Other (expense) income:
Interest expense	(25,337)		(4,291)		—		(29,628)
Other income (expense), net	685		78		—		763
Loss before income taxes	(18,286)		(24,041)		—		(42,327)
Income tax benefit	—		(9,697)		—		(9,697)
Net loss	$	(18,286)	$	(14,344)	$	—	$	(32,630)


(in thousands, except per share amounts)	Number of Shares Surrendered	Average Price Paid per Share
July 1 to July 31	—	$—
August 1 to August 31	—	—
September 1 to September 30	—	—
Total	—


Exhibit No.	Exhibit Description

31.1*	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2*	Certification of Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

32**	Certifications pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. § 1350.

(101)	Formatted in Inline XBRL (Extensible Business Reporting Language)

	101.INS	Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document

	101.SCH	Inline XBRL Taxonomy Extension Schema Document

	101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document

	101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document

	101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document

	101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	Cover Page Interactive Data File (embedded within the Inline XBRL document)


			/s/ James J. Volk
			James J. Volk
			Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)
			Date: October 28, 2026


			/S/EDWARD H. MCKAY
			Edward H. McKay
			President and Chief Executive Officer
			(Principal Executive Officer)
			October 28, 2026

			/S/JAMES J. VOLK
			James J. Volk
			Senior Vice President – Chief Financial Officer
			(Principal Financial and Accounting Officer)
			October 28, 2026