SEC Filings

Shentel Is Still Testing $67.5 Million Of Goodwill, And The Last Test Cleared By Just 8%

The fiber builder's annual impairment review is unfinished as interest expense climbs to $29.6 million and capital spending guidance rises.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 2 min read
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Shentel Is Still Testing $67.5 Million Of Goodwill, And The Last Test Cleared By Just 8%

Shenandoah Telecommunications, which sells broadband, video and voice service over fiber and cable networks across eight states, said in its 10-Q that its annual goodwill impairment test of the broadband unit is not finished. The last test, as of October 1, 2025, found the unit's fair value exceeded its carrying value by only 8%, and the company carries $67.5 million of goodwill.

A thin cushion, an open test

The 10-Q says the company is performing the annual analysis of the broadband reporting unit and that it is "not complete as of the date of this filing." That sentence is new; the prior quarter's 10-Q carried only the 8% result.

Monitoring during the three and nine months ended September 30 found no signs of impairment or triggering events, the filing says. Goodwill stands at $67.5 million, unchanged from December 31, 2025. The result should appear in the next annual report.

The company reported a nine-month net loss of $32.6 million, against $27.6 million a year earlier. Revenue for the nine months rose 5.0% to $279.5 million, and the operating loss narrowed to $13.5 million from $22.4 million.

Debt and interest keep climbing

Interest expense for the nine months rose to $29.6 million from $17.7 million, which the filing ties to more debt and less capitalized interest. Total debt reached $759.9 million, up from $728.4 million at June 30 and $642.4 million at December 31.

In December 2025 the company refinanced into an asset-backed securitization secured by most of its fiber businesses. Capital spending was $215.0 million for the nine months, exceeding operating cash flow by $138.4 million, and the company expects that gap to persist through 2026.

In its earnings release, Shentel raised 2026 capital spending guidance, net of government grant reimbursements, to $255 million to $275 million from $220 million to $250 million. Revenue and adjusted EBITDA guidance were unchanged.

Borrowing room and the fiber push

Only $16.3 million remained available on the variable funding note at September 30. On October 1 the company contributed about $238.6 million of gross fiber assets to the securitization entities, and it expects that to add capacity on the note.

Third-quarter revenue rose 4.6% to $93.9 million, and Glo Fiber expansion revenue grew 32.2%. CEO Ed McKay said the company is entering a phase "focused on customer growth, operating leverage and cash generation." The company's market value was $555 million at Wednesday's morning report.

The goodwill result is due in the company's next annual report on Form 10-K.

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