Shenandoah Telecommunications Company (Shentel) (NASDAQ: SHEN) has reported its fourth quarter and full year 2025 financial and operating results. In the fourth quarter of 2025, the company's total revenue grew by 7.2% to $91.6 million compared to the same period in 2024. However, the net loss from continuing operations was $5.4 million, an improvement from $6.2 million in the fourth quarter of 2024. Adjusted EBITDA grew by 31.3% to $33.5 million, and the adjusted EBITDA margin expanded from 29.8% to 36.5%, an increase of 670 basis points.
For the full year 2025, Shentel reported a 9.1% increase in total revenue to $357.9 million. However, the net loss from continuing operations widened to $32.9 million from $28.4 million in 2024. Adjusted EBITDA for the full year grew by 26.0% to $119.1 million, and the adjusted EBITDA margin expanded from 28.8% to 33.3%, an increase of 450 basis points.
The residential & SMB * Glo Fiber Expansion Markets revenue increased by $6.5 million, or 39.0%, primarily due to a 36.9% growth in data revenue generating units (RGUs). Commercial fiber revenue also saw a significant increase, growing by $2.0 million or 10.8%. However, RLEC & Other revenue decreased by $0.5 million, or 7.4%, primarily due to lower data service line revenue. Shentel also reported a decrease in cost of services, selling, general and administrative expenses, and restructuring, integration, and acquisition expenses.
Capital expenditures for the year ended December 31, 2025, were $358.9 million, compared with $319.1 million in 2024, primarily driven by government-subsidized network expansion projects. The company received $62.5 million and $19.2 million in government grant cash reimbursements during the years ended December 31, 2025 and 2024, respectively.
Shentel completed an inaugural offering of $567.4 million aggregate principal amount of secured fiber network revenue term notes. Additionally, the company entered into a new $175.0 million revolving credit facility due December 2030. As of December 31, 2025, the company's total available liquidity was $234.9 million.
Looking ahead to 2026, Shentel has initiated its financial guidance, anticipating a 4.4% increase in total revenue and a 12.1% increase in adjusted EBITDA compared to 2025. The company also expects a 20.7% decrease in capital expenditures, net of government grant reimbursements.
Shentel announced a reduction in force of approximately 10% of its employees to align the business with the end of the Glo Fiber construction phase, which is expected to be substantially complete by the end of 2026. The company anticipates annual savings of approximately $12.3 million beginning in 2027, with approximately half impacting operating expenses and half impacting capitalized labor.
As a result of these announcements, the company's shares have moved 0.09% on the market, and are now trading at a price of $11.64. For more information, read the company's full 8-K submission here.
