Shentel Q3 Revenue Rises as Glo Fiber Drives Growth

Shentel (SHEN) reported higher third-quarter revenue and adjusted EBITDA as continued growth in its Glo Fiber expansion markets offset lower revenue from incumbent broadband operations. Fiber businesses generated 52% of total revenue, while quarterly Glo Fiber data net additions reached a record 8,600.

Revenue for the quarter ended Sept. 30, 2026, increased 4.6% year over year to $93.9 million. Adjusted EBITDA rose 11.8% to $33.2 million, lifting the adjusted EBITDA margin to 35% from 33% a year earlier. The company recorded a net loss of $9.2 million, compared with a $9.4 million loss in the third quarter of 2025.

Combined Glo Fiber and Commercial Fiber revenue grew 19.5% and represented more than half of consolidated revenue. Glo Fiber expansion-market revenue increased 32.2% to $28.2 million from $21.3 million, making it the main source of consolidated growth. Commercial Fiber revenue rose to $21.1 million from $20.0 million, and installed monthly recurring and monthly amortized revenue increased 19% year over year.

By contrast, incumbent broadband-market revenue declined to $39.1 million from $41.9 million. Revenue from RLEC and other operations fell to $5.5 million from $6.6 million.

Glo Fiber customer base expands

Glo Fiber expansion markets ended the quarter with 109,000 customers, up 32% from a year earlier. Data revenue-generating units increased 31%, including 26,000 net additions over the last 12 months and the record 8,600 quarterly additions.

Shentel had 501,000 Glo Fiber passings after releasing another 25,000 locations for sale during the quarter. The company released 100,000 passings for sale over the preceding 12 months, while broadband-data penetration increased 108 basis points year over year and 68 basis points sequentially. Shentel continues to target medium-term penetration of 37% in its expansion markets.

Last-12-month Glo Fiber broadband-data churn was 1.10%, and the business had a net promoter score of 58. However, Glo Fiber broadband average revenue per user decreased to $75.96 from $76.81 a year earlier. Consolidated broadband ARPU fell to $77.95 from $80.03, while incumbent-market broadband ARPU declined to $79.84 from $82.34.

In Shentel’s incumbent broadband subsidy cohorts, 23,000 homes had been passed as of Sept. 30, with average penetration of 43%.

2026 outlook maintained with revised capital spending range

For the year ending Dec. 31, Shentel expects revenue of $370 million to $377 million, compared with $358 million in 2025. The company projects adjusted EBITDA of $131 million to $136 million, versus $119 million last year.

Shentel revised its forecast for capital expenditures, net of government grant reimbursements, to between $255 million and $275 million, compared with $296 million in 2025. The presentation indicated that Glo Fiber expansion-market construction was 97% complete and government grant projects were 99% complete.

For 2027 and beyond, the company identified low-double-digit adjusted EBITDA growth, capital intensity in the mid-20% range and a 5.9% to 6.0% cost of debt as catalysts for positive and growing free cash flow. These figures are management expectations rather than guarantees of future performance.

The 2026 guidance does not incorporate potential effects from the evolving tariff environment or disruption and uncertainty related to a U.S. government shutdown, including the timing of federal funding and grant payments. Shentel also cited risks involving grant reimbursements, construction schedules and budgets, equipment and labor availability, customer penetration and churn, competition, interest rates and access to capital.