Shenandoah Telecom Q3 2026: Fiber Hits 52% of Revenue as Capex Rises

Shenandoah Telecommunications posted a GAAP loss of $0.19 per share in Q3 2026, beating expectations, while revenue of $93.9 million came in essentially in line with estimates.

Glo Fiber now accounts for 52% of total company revenue, and the Glo Fiber Expansion Markets segment grew 32.2% year over year as the company surpassed 500,000 total passings and recorded a record 8,600 net additions in the quarter. Overall revenue and Adjusted EBITDA both rose from a year ago, with margin expanding.

The cost of building that network is climbing, however. Capital expenditure guidance for 2026 was raised to $255 to $275 million, driven by an expanded passings target and subsidy reimbursements from government grant programs that have slipped into 2027. Interest expense also jumped as the company carried higher debt to fund construction.

Management left full-year revenue and Adjusted EBITDA guidance unchanged, signaling confidence that the spending increase does not alter the earnings trajectory. CEO Ed McKay pointed to the construction phase nearing completion and described the company as entering a phase focused on customer growth, operating leverage, and cash generation.

A previously announced 10% workforce reduction is expected to deliver roughly $12.3 million in annual savings beginning in 2027, which lines up with the expected end of major construction activity. The legacy incumbent broadband segment remains a drag, with revenue falling as video and DSL subscribers decline, but the scale of the Glo Fiber buildout is designed to more than offset that erosion over time.