Third Quarter 2026
Filed Oct 28, 2026Glo Fiber Expansion Markets revenue grew 32.2% year over year to $28.2 million, total revenue increased 4.6% to $93.9 million, and Adjusted EBITDA grew 11.8% to $33.2 million.
Glo Fiber Expansion Markets growth and Adjusted EBITDA improvement offset declining Incumbent Broadband Markets and RLEC & Other revenue, while the Company remained loss-making and increased capital expenditure guidance net of government grant reimbursements.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Service revenue and other, three months ended September 30, 2026GAAP | $93.93M | – | 4.6% |
| Cost of services, exclusive of depreciation and amortization, three months ended September 30, 2026GAAP | $32.92M | – | 1.7% |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $29.15M | – | (2.1)% |
| Restructuring, integration and acquisition expense, three months ended September 30, 2026GAAP | $ 152 | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $33.69M | – | 2.3% decrease |
| Total operating expenses, three months ended September 30, 2026GAAP | $95.91M | – | – |
| Operating loss, three months ended September 30, 2026GAAP | −$1.98M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$10.50M | – | – |
| Other income, net, three months ended September 30, 2026GAAP | $246K | – | – |
| Loss before income taxes, three months ended September 30, 2026GAAP | −$12.23M | – | – |
| Income tax benefit, three months ended September 30, 2026GAAP | −$3.05M | – | – |
| Net loss, three months ended September 30, 2026GAAP | −$9.18M | – | – |
| Dividends on redeemable noncontrolling interest, three months ended September 30, 2026GAAP | $1.63M | – | – |
| Net loss attributable to common shareholders, three months ended September 30, 2026GAAP | −$10.81M | – | – |
| Net loss per share attributable to common shareholders, basic and diluted, three months ended September 30, 2026GAAP | $ (0.19 ) | – | – |
| Weighted average shares outstanding, three months ended September 30, 2026GAAP | 55,814 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $33.19M | – | 11.8% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 35 % | – | – |
| Service revenue and other, nine months ended September 30, 2026GAAP | $279.5M | – | – |
| Cost of services, exclusive of depreciation and amortization, nine months ended September 30, 2026GAAP | $97.45M | – | – |
| Selling, general and administrative expense, nine months ended September 30, 2026GAAP | $93.56M | – | – |
| Restructuring, integration and acquisition expense, nine months ended September 30, 2026GAAP | $2.73M | – | – |
| Depreciation and amortization, nine months ended September 30, 2026GAAP | $99.28M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $293.0M | – | – |
| Operating loss, nine months ended September 30, 2026GAAP | −$13.46M | – | – |
| Net loss, nine months ended September 30, 2026GAAP | −$32.63M | – | – |
| Net loss attributable to common shareholders, nine months ended September 30, 2026GAAP | −$37.45M | – | – |
| Net loss per share attributable to common shareholders, basic and diluted, nine months ended September 30, 2026GAAP | $ (0.67 ) | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $96.97M | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 35 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Residential & SMB - Incumbent Broadband MarketsLower video and data revenue. Video revenue declined due to a 13.0% decrease in video RGUs as customers switched to streaming video services, while data revenue declined primarily due to a 3.0% decline in data ARPU. | $39.10M | – | 6.8% decrease |
| Residential & SMB - Glo Fiber Expansion MarketsA 31.8% increase in data RGUs driven by increased penetration rates and passings. | $28.17M | – | 32.2% |
| Commercial FiberIncreases in recurring revenue from additional circuit services sold to new and existing customers. | $21.13M | – | 5.9% |
| RLEC & OtherA 35.5% decrease in DSL RGUs and, to a lesser extent, lower government support revenue. | $5.54M | – | 16.1% decrease |
Year Ending December 31, 2026 outlook
- Revenue$370 - $377
- NoteAdjusted EBITDA: $131 - $136
- NoteCapital Expenditures, net of government grant reimbursements: $255 - $275
- NoteProjected Glo Fiber homes passed: 517,000 by the end of 2026
- NoteThe Company continues to expect to be substantially complete with its planned network expansion projects by the end of 2026.
- NoteThe 2026 financial guidance does not reflect assumptions regarding potential impacts of ongoing global geopolitical conflicts or the evolving tariff environment.
Capital returns
- Dividends on redeemable noncontrolling interest, three months ended September 30, 2026: $ 1,633.
- Dividends on redeemable noncontrolling interest, nine months ended September 30, 2026: $ 4,815.
- No common dividends or share repurchases were reported.
What drove it
- Fiber revenue grew nearly 20% and represented 52% of total revenue.
- Glo Fiber Expansion Markets reached 500,584 homes and businesses passed, compared with 400,323.
- Glo Fiber Expansion Markets had 108,787 Residential & SMB RGUs, compared with 82,662.
- Glo Fiber Expansion Markets penetration was 21.7 %, compared with 20.6 %.
- Commercial Fiber revenue increased through additional circuit services sold to new and existing customers.
- Selling, general and administrative expense decreased partly because of lower advertising and stock compensation expense.
- The Company announced a reduction in force of approximately 10% of employees and expects to save approximately $12.3 million annually beginning in 2027.
Concerns
- Residential & SMB - Incumbent Broadband Markets revenue decreased 6.8%, with lower video and data revenue.
- Incumbent Broadband Markets penetration was 43.3 %, compared with 45.1 %.
- Video RGUs declined to 34,325 from 36,601, and voice RGUs declined to 27,350 from 26,477.
- RLEC & Other revenue decreased 16.1%, reflecting lower DSL RGUs and government support revenue.
- Interest expense was $ (10,497 ) in the third quarter, compared with $ (6,789 ).
- The Company expects to incur approximately $2.5 million in restructuring costs; it incurred $2.3 million in severance expense during the nine months ended September 30, 2026.
- Capital expenditure guidance, net of government grant reimbursements, increased to $255 million to $275 million from previous guidance of $220 million to $250 million.
What to watch
- Delivery of 517,000 projected Glo Fiber homes passed by the end of 2026.
- Customer growth and penetration in Glo Fiber Expansion Markets after the major construction programs near completion.
- Execution of the approximately 10% reduction in force and realization of approximately $12.3 million in annual savings beginning in 2027.
- Timing of subsidy reimbursements projected to extend into 2027.
- Incumbent Broadband Markets data ARPU and video RGU trends.
- Growth in secured fiber network revenue, which can increase available VFN capacity.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 18,647, compared with $ 27,259 as of December 31, 2025.
- Restricted cash and cash equivalents as of September 30, 2026: $ 27,009, compared with $ 20,945 as of December 31, 2025.
- Long-term debt, net of unamortized loan fees as of September 30, 2026: $ 747,091, compared with $ 628,237 as of December 31, 2025.
- Total available liquidity as of September 30, 2026: $138.6 million.
- Net cash provided by operating activities, nine months ended September 30, 2026: $ 76,645, compared with $ 72,208.
- Capital expenditures, nine months ended September 30, 2026: $ 215,014, compared with $ 251,546.
- Government grants received, nine months ended September 30, 2026: $ 22,109, compared with $ 39,884.
- Net cash used in investing activities, nine months ended September 30, 2026: $ (192,122 ), compared with $ (209,915 ).
- Net cash provided by financing activities, nine months ended September 30, 2026: $ 112,929, compared with $ 114,056.
Analysis
Third-quarter performance was driven by the Glo Fiber buildout. Total revenue increased 4.6% year over year to $93.9 million, with Glo Fiber Expansion Markets revenue up 32.2% to $28.2 million. The expansion footprint reached 500,584 homes and businesses passed and Glo Fiber Expansion Markets penetration increased to 21.7 % from 20.6 %. Commercial Fiber also added growth, with revenue up 5.9% on additional circuit services.
The legacy footprint remained a drag on the revenue mix. Residential & SMB - Incumbent Broadband Markets revenue declined 6.8%, reflecting lower video and data revenue. The Company cited a 13.0% decline in video RGUs as customers switched to streaming services and a 3.0% decline in data ARPU. RLEC & Other revenue declined 16.1%, driven principally by a 35.5% decrease in DSL RGUs and lower government support revenue.
Profitability improved at the adjusted level but GAAP earnings remained negative. Adjusted EBITDA increased 11.8% to $33.2 million, and Adjusted EBITDA margin was 35 % versus 33 %. Lower advertising and stock compensation helped reduce selling, general and administrative expense, while depreciation and amortization declined partly because of lower write-offs. However, the Company recorded a $9.2 million net loss and interest expense increased to $10.5 million from $6.8 million.
Capital spending remained substantial through the first nine months, at $215.0 million, while operating cash flow was $76.6 million. The Company had $138.6 million of total available liquidity as of September 30, 2026, including $18.6 million of unrestricted cash, and long-term debt was $747.1 million. Management raised capital expenditure guidance net of government grant reimbursements to $255 million to $275 million because of higher projected Glo Fiber homes passed and reimbursement timing extending into 2027, while maintaining revenue and Adjusted EBITDA guidance.
The operating transition is now centered on monetizing the fiber footprint as construction nears substantial completion by the end of 2026. The approximately 10% reduction in force is expected to save approximately $12.3 million annually beginning in 2027, split between operating expenses and capitalized labor, but requires approximately $2.5 million of restructuring costs. The primary reported execution markers are Glo Fiber customer growth and penetration, legacy-market revenue stabilization, reimbursement timing, and realization of the expected cost savings.
Management, verbatim
We continue to see strong momentum across our fiber businesses, surpassing 500,000 Glo Fiber passings and delivering a record 8,600 Glo Fiber net additions in the third quarter. Fiber revenue grew nearly 20% and now represents 52% of total revenue, while Adjusted EBITDA increased 11.8%. With our major construction programs nearing completion, we are entering the next phase of our fiber-first strategy focused on customer growth, operating leverage and cash generation.
Ed McKay, President and CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported separately.
- Quarterly capital expenditures were not reported separately.
- Share repurchases were not reported.
- Common shareholder dividend information was not reported.
- Revenue, gross margin, operating expense and tax-rate guidance were not provided beyond the stated revenue range and Adjusted EBITDA and capital expenditure outlook.
- Prior-quarter comparisons were not reported for the presented third-quarter metrics.
- A prior outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.