Shenandoah Telecommunications 2025 Q2 Earnings Strong Performance as Net Loss Narrows 29.7%

Shenandoah Telecommunications (SHEN) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Shenandoah Telecommunications exceeded expectations by narrowing its net loss significantly, showcasing the effectiveness of its strategic initiatives. The company's guidance for the remainder of 2025 remains in line with previous projections, with anticipated revenue growth between $352 million and $357 million. Adjusted EBITDA is projected at $113 million to $118 million. This guidance reflects confidence in ongoing operational improvements and the company's ability to meet market demand. The expected decline in capital expenditures further underscores Shenandoah's strategic focus on optimizing resources.

Revenue

In fiscal 2025 Q2, Shenandoah Telecommunications reported a 3.2% increase in total revenue, reaching $88.57 million compared to $85.80 million in Q2 2024. The expansion was primarily driven by the Glo Fiber segment, which saw a remarkable 40.5% revenue growth, contributing $19.8 million to the total.

Earnings/Net Income

Shenandoah Telecommunications narrowed its losses to $0.19 per share in 2025 Q2 from $0.24 per share in the previous year, marking a 20.8% improvement. The company's net loss reduced to $-9.05 million, representing a 29.7% improvement from the $-12.87 million loss in Q2 2024. The EPS performance reflects positive progress in financial management.

Price Action

The stock price of Shenandoah Telecommunications edged up 0.89% during the latest trading day, dropped 4.68% over the last full trading week, and climbed 7.47% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Shenandoah Telecommunications (SHEN) shares following a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days resulted in significant underperformance. The strategy yielded a return of -60.80%, starkly contrasting the benchmark return of 85.57%. This resulted in a negative excess return of -146.37%, with a CAGR of -17.19% over the three-year period, highlighting substantial losses. The strategy also faced a high maximum drawdown of 0.00% and a Sharpe ratio of -0.38, indicating elevated risk and negative returns. The analysis underscores the challenges of using this trading approach in the context of Shenandoah Telecommunications' market dynamics.

CEO Commentary

Christopher E. French, Chairman, President & CEO, emphasized the successful execution of the fiber-first strategy, leading to a 40.5% growth in Glo Fiber revenues and the addition of 5,700 new subscribers in Q2 2025. French highlighted the transformation from a traditional cable and telephone operator to a rapidly growing fiber-first business, stressing the importance of understanding customer needs and delivering shareholder value. He expressed confidence in his successor, Ed McKay, who is expected to lead the company through its next growth phase.

Guidance

Shenandoah Telecommunications expects 2025 revenues to range between $352 million and $357 million, with adjusted EBITDA projected at $113 million to $118 million. Capital expenditures, net of grant reimbursements, are anticipated to range from $260 million to $290 million. This guidance implies an 8.1% year-over-year revenue growth and a 21.6% year-over-year adjusted EBITDA growth, alongside an expected decline in CapEx of approximately 8.3%.

Additional News

Shenandoah Telecommunications has announced key leadership changes effective September 1, 2025. Christopher E. French will transition to the role of Executive Chairman of the Board, while Edward H. “Ed” McKay has been appointed as President and Chief Executive Officer. McKay, a 29-year veteran of the telecommunications industry, has been instrumental in steering the company's sales, marketing, engineering, operations, and customer service as COO. This transition is expected to ensure continuity in leadership and strategic direction, allowing the company to focus on executing its fiber expansion plans. Shenandoah also completed a strategic acquisition of fiber-to-the-home assets in Virginia, enhancing its infrastructure and market position.