SHENANDOAH TELECOMMUNICATIONS CO/VA/SHEN
SHENANDOAH TELECOMMUNICATIONS CO/VA/ Revenue Disclosure
Revenue from Contracts with Customers
The Company’s revenues by activity type were as follows:
| (in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
Residential & SMB - Incumbent Broadband Markets1 | $ | 169,668 | $ | 174,795 | $ | 174,710 | ||||||||||||||
Residential & SMB - Glo Fiber Expansion Markets2 | 82,558 | 57,872 | 35,103 | |||||||||||||||||
| Commercial Fiber | 79,315 | 70,057 | 44,301 | |||||||||||||||||
| RLEC & Other | 26,313 | 25,334 | 15,017 | |||||||||||||||||
| Service revenue and other | $ | 357,854 | $ | 328,058 | $ | 269,131 | ||||||||||||||
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1.Incumbent Broadband Markets consists of Incumbent Cable Markets and Incumbent Telephone Markets with FTTH passings.
2.Glo Fiber Expansion Markets consists of FTTH passings in greenfield expansion markets.
Shentel updated the presentation of certain Residential & SMB - Incumbent Broadband Markets, Residential & SMB - Glo Fiber Expansion Markets, Commercial Fiber and RLEC & Other revenues for the prior years to conform with changes in how management currently views these lines of business.
Shentel’s revenue recognized under ASC 606 vs. ASC 842 is summarized in the following table:
| (in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Revenue from contracts with customers (ASC 606) | $ | 351,069 | $ | 322,220 | $ | 266,490 | ||||||||||||||
| Income from leasing arrangements (ASC 842) | 6,785 | 5,838 | 2,641 | |||||||||||||||||
| Service revenue and other | $ | 357,854 | $ | 328,058 | $ | 269,131 | ||||||||||||||
Income from leasing arrangements primarily relates to Shentel’s commercial fiber business. Refer to Note 9, Leases for more information.
Shentel had $19.5 million and $27.4 million of gross trade receivables from customers as of December 31, 2025 and 2024, respectively.
Contract Assets
The Company’s contract assets primarily include commissions incurred to acquire contracts with customers. The Company incurs commission expenses related to in-house sales team members and third-party vendors which are capitalized and amortized over the expected customer benefit period which is approximately six years. The Company’s current contract assets are included in prepaid expenses and other and the Company’s non-current contract assets are included in deferred charges and other assets in its consolidated balance sheets. Amortization of capitalized commission expenses is recorded in selling, general and administrative expenses in the Company’s consolidated statements of operations.
The following tables present the activity of current and non-current contract assets:
| (in thousands) | 2025 | 2024 | |||||||||
| Beginning Balance | $ | 10,251 | $ | 8,633 | |||||||
| Commission payments | 6,750 | 4,857 | |||||||||
| Contract asset amortization | (3,895) | (3,239) | |||||||||
| Ending Balance | $ | 13,106 | $ | 10,251 | |||||||
Contract Liabilities
Shentel’s contract liabilities include services that are billed in advance and recorded as deferred revenue. The Company typically bills service one month in advance, which is the primary component of the contract liability balance. The Company
also recognizes installation fees that are charged upfront without transfer of commensurate goods or services to the customer. Contract liabilities are recognized as revenue when services are provided to the customer. The Company’s current contract liabilities are included in advanced billings and customer deposits in its consolidated balance sheets and the Company’s non-current contract liabilities are included in other liabilities in its consolidated balance sheets. Shentel’s current contract liability balances were $13.4 million and $12.5 million as of December 31, 2025 and 2024, respectively. Shentel’s non-current contract liability balances were $11.1 million and $9.5 million as of December 31, 2025 and 2024, respectively. Shentel expects its current contract liability balances to be recognized as revenues during the twelve-month periods following the respective balance sheet dates. The majority of Shentel’s non-current contract liability balance is expected to be recognized as revenues within approximately 5 years.
No customer accounted for more than 10% of revenue for the years ended December 31, 2025, 2024, and 2023 and no customer made up more than 10% of accounts receivable as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 15, 2018 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.