Good afternoon, everybody. This is the presentation with Shenandoah Telecommunications. We have Jim Volk, CFO. Jim, thanks for being here. Brandon, thanks for the invite. My name's Brandon Nispel. I cover comm services for KeyBanc. Jim, maybe just to start, Shentel's fairly unique in terms of your footprint. You partially have a cable business, you partially have a fiber business. Maybe just outline for us the competitive elements in each of these businesses, how you think about allocating capital for them, and really the growth outlook for each business. Absolutely. We run three lines of business. Our Glo Fiber business is our residential fiber business. It represents about 28% of our revenues. The past second quarter, year-over-year, it grew 33%. So growing like a weed. We've built about 500,000 passings, greenfield passings, to overbuild in rural markets to be the second competitor in those markets for broadband and the first to provide fiber and having great success on that side. We also run a commercial fiber business that represents about 23% of our revenues. That grew 9% year-over-year in the second quarter. It's been up a tick. We've been growing more in the low to mid-single digit growth rates, but it's picked up more recently. This business serves commercial customers from the national wireless cellular guys with backhaul. We provide bandwidth to other carriers. We have a big K through 12 E-Rate program business. And we just serve general enterprises in our local areas. Great, solid, recurring revenue business for us. Then the last piece is our incumbent cable business, which we've owned for over 20 years. Not spending a whole lot of capital in that business. That I think about in three different types of buckets. We have our more dense markets, good demographics. Those areas generally have another broadband pro vider. But we've been performing well there. That's been the case for about three years now, and we've put a good playbook in place that we have a more competitive rate card, and we're more than holding our share from a unit perspective. Our churn rates have come down, but we are giving up a little bit of ARPU to accomplish that. We also invested some capital over the last three years and are virtually complete to build about 25,000 passings with government grant subsidized money, primarily, that they subsidize about half of the build. There, that's a growth segment for us. We expect to increase penetration. We're at 40% today after about two years, and we expect to get to about 65% penetration in the next couple of years. Then the last bucket is we are the only. It's very rural, and the demographics tend to be more challenging. But there's not another broadband provider. So I think we're protected from that side. That's an area that we mentioned on our last earnings call. We're trying to better align with the demographics there, our offerings. We did see some higher churn in those markets, and that's something we've addressed with the new rate card that we introduced in March, specifically to offer a lower price for the entry level broadband service. And that, so far, has paid some dividends. We saw the churn rates come down sequentially in that area from the first to the second quarter, but still an area that we're looking to improve on. I think SpaceX and Starlink is in just about every one of my conversations when I talk about broadband competitive landscape. How do you see Starlink playing in terms of competition within your footprint? Yeah. That last bucket of passings is the only area that we actually saw any kind of impact in the first half of the year. Virtually no impact in the Glo Fiber residential business and virtually no impact in the 35% of the passings where we have competition and the demographics are smaller. I think the reason for that is Starlink doesn't compete in the mid to the high end of the market where we compete very well on. The mid to the high end of the market at this stage of the game is really gigabit services. 80% of our Glo Fiber gross adds are buying a gig or higher. Actually, we have 20% buying 2 gigs to 8 gigs, which I'm not sure what they're doing at the household, but we're more than happy to sell them the service. The satellite technology just doesn't work fast enough to compete in that part of the market. The areas where we did see a little bit of activity when Starlink got a little bit more promotional he avy in the first quarter of the year was in these unserved areas with the lower demographics. Like I said, we've already responded with a better lower alignment with our product line there, which seems to be helping us go in the right direction. It did add some churn in the first half of the year for sure. One of the things that's always on my mind is sort of underappreciating the risk that was fixed wireless at the time. As fixed wireless sort of improved their capabilities, obviously they took a lot of share. How do you see Starlink evolving from their capability set? Do you see that playing any more important of a role? How do you protect your subscriber base? You sort of alluded to it with higher speed tiers. Is there anything else that you can do to protect the base? Yeah. Starlink, I think, is a niche product in areas where it's difficult to provide a broadband service. My opinion is fiber and HFC coaxial cable will always have faster speeds, two, three, four times faster. Even as Starlink develops more advances in technologies, the fiber and the cable technologies are going to be even faster. Our goal is to provide a fair value and to provide good, again, local customer service, which is something we specialize in. We're not a national company. We're isolated to eight states in the Mid-Atlantic area, and this is all we do. When you're calling from West Virginia, you're talking to somebody from West Virginia. We think that local touch makes a difference. If you're a Starlink customer, I think your customer service is very minimal. It's more a do it yourself. You buy it, you install it, and if it doesn't work, there's not a really easy fix to get it to work properly. Got it. Let's talk a little bit about Glo Fiber. You recently surpassed 100,000 subscribers. You have plans to reach 500,000 homes passed by the end of this year. Can you help us understand the long-term outlook in terms of driving subscriber growth in this footprint? Yeah. Our playbook now for seven years, we've been doing this for seven years, has been to not lead with price, but lead with technology and the local customer service where we can differentiate ourselves. The fiber technology, again, 88% of our markets, we're competing just against the cable company. We try to focus on the benefits of fiber over the cable technology services. We can offer faster speeds. We can offer more resiliency. There's less electronics in the fiber network than in the cable network, which reduces the number of outages. We offer symmetrical speeds up and down that are the same, whereas the cable company focuses more on the download speeds and has limited uplink spe eds. I think that's becoming more important. I think a lot of customers may not fully understand the benefits of that, but with more AI and more AI being done at the home, I think those uplink speeds are going to become pretty important as we grow going forward. We also, again, make sure that our customer service is better than where the national guys are. A lot of the national competitors, some of their call centers are overseas. Some of them, if they are not overseas, they are regional, and you are not talking to somebody local. We really try to focus on that local aspect. We subscribe to different customer satisfaction surveys. Our Net Promoter Score for our Glo Fiber business, for the past two years now, has been in the 60% range. The cable guys, in general, have been in low single digits, some of them even negative territory. I think our customers really like the value propositions that we are sharing with them, and I think that is reflected in our low churn. If you look at churn on an annual basis, a cal endar year basis, our churn for seven years has been about 1% per month during that timeframe. Again, another indicator that customers really like our value proposition. One of the things that is actually unique about your reporting structure, too, is you actually provide penetration rates based on each customer cohort. What are you doing to make sure that you can drive those penetration rates over the long term to your desired terminal penetration? Yeah. Again, when we enter the market, a lot of it really drives into our go-to-market strategy. We use, I guess, four different sales channels to go to market. The one that we are having the most immediate success in is the old-fashioned door-to-door sales. Knocking on doors creates a little bit of inertia for the customers who may not have known the Glo Fiber name to understand who we are, what we do. That has been our largest channel for the past couple years. We have actually increased the resources in that channel this past year, which has helped our growth curve. We will send those folks out to a certain territory, certainly when we launch a new service. But we do go back and regroom the areas that we launched four years ago, where we think we did not hit as much penetration there. A lot of cases, that again creates the inertia for customers to re-look at us and evaluate our service. We also use digital advertising to draw folks to our website to order service that way as well. Then we have our retail stores. I think our team has done an excellent job in redefining what a retail store looks like in today's 2026. It provides us a place in the marketplace with our name on it to show, again, that we're being local. But we don't have constant traffic going in and out of those stores. So our sales team has developed that to be a mini call center, and we take some of the inbound calls because these folks are trained to sell and not to just service, and we find that has been very successful. We also do outbound marketing from there. We'll see what houses have gotten onto our website but not completed the buy flow, and we'll reach out to those in an outbound basis. That's become a very productive channel. We have about a dozen stores in our Glo Fiber markets, but all of those added up together is part of our go-to-market strategy. On that, I guess as a follow-up, you mentioned four sales channels, digital, door-to-door, retail. There's one others you didn't allude to. The last one is the call center. Oh, and the call center. How does the allocation of your gross adds look like from those channels? And you obviously mentioned allocating more capital to the door-to-door. How much incremental investment are you making in door-to-door, and are there other channels that you're making incremental investment into that you think will have meaningful results from a gross add standpoint? Yeah. The door-to-door channel is doing about 35%-40% of our gross adds this past year since we made some of the additional investments there. The web channel is around 25%, and then the retail's doing about 20. Ironically, in Glo Fiber business, the call center is now the lowest channel. It's only about 15% of the gross adds. In our incumbent cable business it's the opposite. The call center is still the largest sales channel there for some reason. It's a little different demographics, I guess. The relationship between cable being old technology and the fiber being new technology, it seems to have shifted the sales channel mix to a degree. And do the economics of these channels differ or is there different customer acquisition costs? How do you think about that? From an acquisition side, it is very similar. The costs we look at are cost of acquisition as a function of our advertising and our commission dollars. The commission side is about $50-$60 per gross add. On the advertising side, we are spending about $250 per gross add. It is not directly, you are kind of paying it up front, but on average, that is what it averages out to be. We do very similar on our cable business as well there. Got you. Let us switch into the cable business then. I think that is a good segue. This is an interesting portion of your footprint, and you mentioned sort of the three buckets in terms of how you think about it. I think the question that I would have is, with a portion of this business sort of being non-competitive, what are you doing to really drive penetration within that footprint? Why is not it growing faster? Yeah, it is a great point, and we agree with you. We think there is an opportunity to grow penetration here in these unserved or these with limited competition parts of our market. But the key for us is to get the right value proposition in front of the customers that we have, again, the low income customers in many of these markets that we are trying to add penetration to, without re-rating the base. There is a constant balancing and battle there that we are tweaking things along the way and trying to get the right formula or playbook in place to make that happen. We are four months into changing the rate card, but there may be some more changes that we have down the road that we are exploring as well that might help improve getting some volume going. We think there is an opportunity. About half of these passings, the penetration rate is only about 40%. We think without another broadband provider, we think that number should go up quite a bit. It has got some headroom to go up. So would you say then the other 60%, they are fixed wireless customers? And what are you doing to combat that fixed wireless competitive threat? Yeah. Fixed wireless really hasn't been much of a factor for us. In our eight states that we operate in, Virginia, West Virginia, Pennsylvania, Maryland, a lot of rolling hills and a lot of foliage. At this time of year, it's hard to get an RF signal through that to provide a fast speed. So we've been fairly insulated from that, and we have an educated view of that because we owned the wireless business. We were a Sprint affiliate for 20-plus years in these same markets. So we know the RF propagation pretty well in most of these markets. So that has not been the issue. I think satellite has picked up a niche, or we think customers are just basically using their cell phone for everything and not really having a true broadband connection at the house. It may be limited in what they're doing, but again, this gets into the trying to find the right value proposition to offer these customers to get them to flip over to our service. Got it. You alluded to a couple of times, the playbook change, the rate card. Maybe can you unpack that a little bit? What changes did you make in March? And I think you also made some changes maybe late last year. Can you help us understand the go-to-market and pricing changes that you guys made? Yeah. In these particular markets without the broadband competitor, the key thing that we changed, we changed a couple things, but the key thing that we changed was the entry level service started at $65 for 200 meg. In March, we reduced that down to $50 with a $10 promotion, so got it down to $40 for the first year at 200 megs, which we think is a very good value for what's the alternative. Whether that be Starlink, which is that 200 meg service, they were pricing it at $85. It's a significant better value proposition than them. And we think it's a much better quality of service than trying to use your cell phone for everything essentially as a hotspot. What happened to sell-in of the various products as you made those changes of the various speed tiers? Did you see customers naturally migrate up to a higher speed tier and that higher price point? Yeah. We haven't seen any significant re-rating of the base, which was a key concern going into that, and so far that has worked out well. But we are seeing more gross adds in total and more gross adds at that $40 entry level so far. But it's early, and we don't want to make conclusions after just a couple months. But we do have a couple other thoughts in place. It could be going back to when we were in the wireless business. It could be offering a more robust prepaid offering than what we've historically done. That was very successful on the wireless side 20-plus years ago, if you think of the various three or four different wireless carriers, that's all they did was unlimited prepaid. We think there's maybe some possibilities there as long as we can keep our costs to connect down and our costs per user down, which I think there's some opportunities there that we're working through. We're not ready to go to market with that yet, but some of the things that we're working on. Got it. If we take a step back and look at the totality, the ARPU of the business, I think it is roughly $80. With these changes, it has put some modest pressure on ARPU. How do you think about the long-term ARPU trajectory of the business? Yeah. On the cable side long term, I think the ARPU will come down about 1% per year for the next couple years as we kind of work through some of these rate card changes and product changes that I mentioned. On the Glo Fiber side, again, we are in duopoly markets 88% of the time. Our ARPU has been averaging around $77 in the last two or three years. So I think ultimately the cable probably, when we get five years down the road, starts to align more with where we are on the competitive side on the Glo Fiber side. Okay. I want to switch a little bit, go to the commercial side of the business. This business sort of inflected positively from a growth standpoint, as you alluded to. It was about 9% growth. What drove that? I think from a bigger picture standpoint, you guys have outlined an opportunity to start connecting up some of the data centers that are popping up within your footprint. How do you think about the longer-term growth driver there for that? Yeah. Short-term results was heavily on the carrier side. That drove a lot of that, and the E-Rate, which is a seasonal thing. A lot of the E-Rate sales occur in the first quarter, and they are delivered late second quarter, early third quarter. On your second question, we think there is a very significant opportunity, with all the investments by the hyperscalers in building new data centers to deploy AI. There is a large number of them coming up near our fiber and our footprint, and in particular in the Columbus, Ohio area. It seems to be coming kind of like what Ashburn was to the co-location space 25 years ago. Columbus seems to be taking the lead in having pretty much all the hyperscalers are in or around Columbus, say within an hour radius of Columbus. Which is an area that we have a lot of commercial fiber and a lot of unique routes that we think can get customers up and running a lot faster than if there is a custom build with a new competitor coming in. We have been quoting opportunities where we can get a data center that they have recently started constructing up in 12 to 18 months, which is about the time it takes to build the data center itself. And we think that gives us an advantage to win some of this business. But having said that, we have not gotten our first deal done yet. I do not have a whole lot more details I can share there other than there are several of these opportunities with several hyperscalers out there. Is this a business that if you want to grow it, you need to allocate some capital to build these line extensions out to them? Brandon, we are actually focusing more on capital-light opportunities. Leverage our existing fiber, and you always have to build on either end on the connection, the A and the Z locations on either end of the connection. But that is about 20%, 25% of the route miles that we are building, or we are going to be leasing out or providing the service on. So tends to be when you get 75%, 80% on net opportunities, the IRR tend to be very strong. Got it. Well, you mentioned too, capital light. You guys are winding down Glo Fiber, sort of the big build that you guys were doing. Maybe help us understand the long term or the next couple year capital intensity trajectory. Yeah. Since we sold the wireless business, we've been negative free cash flow now for four years. This is the last year of the build. We are planning to flip the switch next year to go back to more traditional capital intensity rates. So we expect the residential businesses to be about 25% of revenues next year, and the commercial business is always going to be a little bit more capital intensive, so I would say 25% to 30% on the commercial side. That will bring the consolidated capital intensity down below 30% and puts us in a position to turn positive free cash flow next year. More importantly, it'll give us the opportunity to grow that free cash flow over the next several years. Operationally, you guys announced a small reduction in force, I think because you're winding down some of that more capital intensive build program. What does it mean for you guys operationally to sort of change to the more capital light type of mentality? Yeah. No, we announced in February that we're completing the last year of the build, and we wanted to right-size the organization. So we announced a reduction in force of about 10%, or about 100 employees, who have primarily been involved in the construction and engineering of the fiber to the home business. But Brandon, that's one of a couple things that we're working on the expense side. As a small cap company, it's hard to have a lot of multiple goals at the same time. Now that we're starting to go more into the harvest mode of the business plan, expense management's going to become a more and more important part of that equation. So there's a task force out there that I'm a part of, and we're finding opportunities on deploying AI to get more productive. I'd say there's four or five that we're working on right now that if successful, and we're just starting to roll them out live as we speak now, should have a benefit next year of like a $1 million plus annual savings. We've also started doing some old fashioned just competitive bidding and being more aggressive with our vendors and putting out the services. Going out and talking to three or four different companies about trying to get the lowest cost. We know we're able to lower our costs through AI. I expect our vendors are also lowering their costs to deploy through AI, and we're going to try to extract some of that savings out there. That has also, so far, we've only done it with about a half a dozen areas so far, but that's also provided about a $1 million plus of future savings. Hasn't hit the P&L yet, but should hit the P&L next year. Got it. Last question would be Glo Fiber's obviously growing nicely. I think you alluded to it was 39% growth this last quarter. The cable business, you have some strategic actions to really maybe get that going a little bit better. Commercial, you outlined the opportunity. CapEx is coming down. How do yo u sort of see the long-term EBITDA growth profile of the business as all of this sort of comes together over the next couple of years? Yeah. We're looking at EBITDA grow low double digit annual growth rates for the next couple years, and we're looking for EBITDA margin expansion. We were at 34% this past year, but we expect to grow that 300 to 400 basis points a year in the next couple years to get it above 40%. That will come with around 4% or 5% top line revenue growth as well. Great. Well, Jim, with that, we're out of time. Thank you very much. All right. Thank you, Brandon.