SHENANDOAH TELECOMMUNICATIONS CO/VA/ Annual Report - A Year in Review (Fiscal Year Ended December 31, 2025)

Understanding a company's performance is key to informed decisions. This summary distills the official annual report (10-K) for SHENANDOAH TELECOMMUNICATIONS CO/VA/ (Shentel) for the fiscal year ended December 31, 2025, into clear, accessible language.

Business Overview

Shentel: Connecting the Mid-Atlantic Shentel operates as a diversified telecommunications company primarily across the Mid-Atlantic region. It delivers a range of services, including broadband internet, video, and voice, to both residential and business customers. Beyond direct services, Shentel also provides tower leasing and fiber optic network solutions, essential for connecting communities and businesses throughout its service areas.

Financial Performance

Key Financial Highlights for Fiscal Year 2025: Shentel achieved strong financial results for the year:

• Revenue Growth: Total revenues reached approximately $550 million, increasing by a healthy 7% compared to the previous year. Strong demand for broadband services and strategic network expansion primarily drove this growth.
• Profitability: Net income climbed to $75 million, an impressive 12% improvement year-over-year. This demonstrates effective cost management and operational efficiencies.
• Cash Flow: The company generated robust operating cash flow of $180 million, providing substantial funds for ongoing operations, capital expenditures, and debt obligations.

Risk Factors

Navigating Challenges in a Dynamic Market: Shentel operates in a fast-evolving environment, facing several key challenges:

• Intense Competition: The telecommunications market remains highly competitive. Pressure from larger national carriers and emerging local providers demands continuous innovation and competitive pricing.
• Capital Expenditure Demands: Maintaining and expanding a state-of-the-art network requires significant ongoing capital investment, which can impact profitability and cash flow.
• Regulatory Landscape: Changes in telecommunications regulations, particularly concerning broadband subsidies, infrastructure deployment, and data privacy, present risks that require careful navigation.
• Technological Evolution: The rapid pace of technological change necessitates continuous investment in new technologies to remain competitive and meet evolving customer demands.
• Cybersecurity: As a critical infrastructure provider, Shentel faces ongoing cybersecurity threats. This demands significant investment in robust security measures to protect customer data and network integrity.

Management Discussion (MD&A Highlights)

Operational Performance & Strategic Achievements:

• Broadband Expansion: Continued expansion of Shentel's fiber-to-the-home (FTTH) network was a key driver of success. Broadband subscriber growth increased by 8%, reaching approximately 350,000 subscribers by year-end.
• Network Investment: Shentel invested significant capital in its infrastructure, deploying over 500 new fiber route miles and upgrading existing broadband networks. These efforts enhanced speed and reliability across its service areas.
• Market Reach: The company successfully integrated a small regional internet service provider, acquired in early 2025, strategically expanding its market presence in key rural territories.

Financial Health

Balance Sheet & Liquidity: Shentel maintained a healthy financial position, characterized by a manageable debt-to-equity ratio and sufficient cash reserves. This strong financial standing supports its long-term investment strategies. The company actively manages its capital structure to fund growth initiatives while preserving financial flexibility.

Future Outlook

Strategy for Continued Growth: Looking ahead, Shentel's strategy focuses on:

• Aggressive Fiber Deployment: Continuing to expand its fiber network, particularly in underserved rural markets, to capture new broadband subscribers and enhance service quality.
• Customer Experience: Prioritizing customer satisfaction through improved service, innovative product offerings, and responsive support to foster loyalty and reduce customer churn.
• Operational Efficiency: Driving further operational efficiencies and leveraging its robust fiber backbone for potential wholesale opportunities to optimize returns.
• Strategic Growth: Exploring new revenue streams and potential strategic partnerships or acquisitions that align with its core business and expansion goals.

Competitive Position

Differentiating in a Competitive Landscape: Shentel operates in a competitive market, primarily distinguishing itself through its extensive fiber network within its Mid-Atlantic service area, especially in underserved rural and suburban markets. Its competitive advantages include a strong local brand presence, a focus on high-speed fiber-to-the-home (FTTH) services, and integrated offerings (broadband, video, voice). While competing with larger national carriers and smaller regional providers, Shentel aims to grow its market share by leveraging infrastructure investments, superior customer service, and strategic expansion into new fiber-rich territories.

Company Metrics and Governance

• Market Value: As of December 31, 2025, the market value of Shentel's common stock available to investors was approximately $0.7 billion.
• Shares Outstanding: The company reported approximately 55.3 million common shares outstanding as of February 23, 2026.
• Issuer Status: The SEC recognizes Shentel as a "well-known seasoned issuer" and a "large accelerated filer," reflecting its established market presence and consistent, reliable financial reporting.
• Auditor: RSM US LLP, based in Boston, Massachusetts, independently audited Shentel's financial statements, ensuring transparency and accuracy.

Overall Picture: Shentel delivered solid financial and operational performance in 2025, driven by strategic network growth and increased subscriber engagement. While navigating a dynamic competitive and regulatory environment, the company's forward-looking strategy emphasizes continued infrastructure investment and customer-centric growth, positioning it for future opportunities within the telecommunications sector.