Key Highlights

  • Glo Fiber revenue grew 32.8% to $26.3 million in the second quarter.
  • Incumbent Broadband revenue fell 6.0% to $40.3 million over the same period.
  • Total revenue rose 5.5% to $93.5 million, with adjusted EBITDA up 12.9%.
  • Glo Fiber passed 475,677 locations and surpassed 100,000 customers.

Shenandoah Telecommunications is in the middle of swapping one business for another. Its Glo Fiber expansion unit grew second-quarter revenue 32.8% to $26.3 million, while the older Incumbent Broadband business, the legacy cable and copper footprint, fell 6.0% to $40.3 million. Shenandoah Telecommunications Co (NASDAQ:SHEN) closed at $10.52 on October 13, 2026, for a market capitalisation near $582 million.

Growth Alongside Rising Interest Costs

The company reported second-quarter 2026 results on July 29. Total revenue rose 5.5% to $93.5 million, and adjusted EBITDA climbed 12.9% to $32.0 million for a 34% margin. Net loss narrowed to $7.7 million from $9.0 million, though interest expense rose to $9.7 million from $6.0 million. Management reiterated 2026 guidance of $370 million to $377 million of revenue, $131 million to $136 million of adjusted EBITDA and $220 million to $250 million of net capital expenditure after grants. Glo Fiber passed 475,677 locations and had passed the milestone of 100,000 customers.

A Crossover Still Ahead

Incumbent Broadband still produces more revenue than Glo Fiber, but its customer base is eroding: broadband penetration slipped to 43.7% from 45.8%, and video penetration fell to 4.8% from 6.0%. Glo Fiber penetration edged up to 21.1% from 20.1% as new areas were added, so the fibre unit is earlier in its maturity curve. Long-term debt was $715.0 million at June 30, and total available liquidity was $158.9 million, including government grant reimbursements still to be received.

A Story of Substitution

Shenandoah's story is increasingly about substitution: a growing fibre business gradually taking over from a shrinking legacy base. The data so far show faster growth where new fibre is built and gradual erosion elsewhere, with profitability improving but financing costs rising ahead of the next report, estimated for October 28.