Shenandoah Telecommunications (SHEN) risk factors, 2025 10-K

Risks Related to Our Business

1. 01Intensifying competition may limit our ability to continue to grow our revenue
2. 02Our future growth is primarily dependent upon our expansion strategy, which may or may not be successful
3. 03We may be materially adversely affected by regulatory, legal and economic changes relating to our physical plant
4. 04Some of our competitors are larger than we are and possess greater resources than we do
5. 05Alternative technologies, changes in the regulatory environment and current uncertainties in the marketplace may reduce future demand for existing telecommunication services and materially increase our capital expenditures
6. 06Our programming costs continue to increase and our relative size limits our ability to negotiate more favorable terms, which may have an adverse effect on our business and our results of operations
7. 07We may not benefit from our acquisition strategy
8. 08The future outbreak of another significant pandemic, like the COVID-19 pandemic, could disrupt the operation of our business resulting in adverse impacts to our financial condition, results of operations and cash flow and could create significant volatility in the trading and value of the Company’s common stock
9. 09Although the Company has instituted a distributed-first work environment, the COVID-19 pandemic did, and a future pandemic could, have material and adverse effects on our ability to successfully operate and on our financial condition, results of operations and cash flows
10. 10Disruptions of our information technology infrastructure or operations could harm our business
11. 11Our earnings, margins and stock price may be adversely impacted by our current cost structure as a result of our relative size
12. 12Our success depends on consistent supply of physical goods and services to build and sustain services to customers. Significant disruptions to the supply chain could adversely impact our growth, operations and revenue projections
13. 13Our success largely depends on our ability to retain and recruit key personnel, and any failure to do so could adversely affect our ability to manage our business
14. 14Climate change could disrupt our operations and our distribution networks, cause us to incur increased costs related to such events, or otherwise negatively affect our business

Risks Relating to the Horizon Transaction

1. 15The Horizon Transaction may not achieve the intended benefits or may disrupt our current plans and operations
2. 16The financial performance of Horizon may be less than historical results, adversely affecting the future financial condition, results of operations and cash flows of the combined company
3. 17Service Level Agreements (“SLAs”) with Horizon’s largest customers may cause material fluctuations in the combined companies’ financial results

Risks Related to Regulation and Legislation

1. 18Regulation by government agencies may increase our costs of providing service or require changes in services, either of which could impair our financial performance
2. 19Changes to the FCC’s Universal Service Fund framework may adversely impact our Broadband revenue, which may have a material adverse effect on our financial performance and our results of operations
3. 20Changes to key regulatory requirements can affect our ability to compete
4. 21The timing of receipt of or an altogether lack of government grant payments may adversely affect our liquidity and ability to complete our performance obligations
5. 22The Company may fail to complete its performance obligations in regard to government grant awards and incur liquidated damages and/or create an event of default that could allow the municipality to cancel the grant
6. 23Regulatory constraints could impact our ability to adequately address increases in broadband usage and may cause network capacity limitations, resulting in service disruptions, reduced capacity or slower transmission speeds for our customers
7. 24Our services may be adversely impacted by legislative or regulatory changes that affect our ability to develop and offer services or that could expose us to liability from customers or others

Risks Related to our Indebtedness

1. 25We may not have sufficient capital to fund our expansion plans and may not be able to repay future indebtedness
2. 26Our level of indebtedness could adversely affect our financial health and ability to compete
3. 27Failure to comply with financial and operating covenants or make scheduled payments under our Credit Agreement may restrict our ability to borrow and could accelerate repayment of outstanding debt
4. 28Adverse economic conditions in the United States and in our market area involving significantly reduced consumer spending or high inflation could have a negative impact on our results of operations
5. 29Negative outcomes of legal proceedings may adversely affect our business and financial condition, results of operations and cash flows
6. 30Our business may be impacted by new or changing tax laws or regulations and actions by federal, state and/or local agencies, or how judicial authorities apply tax laws
7. 31A material impairment in the carrying value of acquired goodwill or other intangible assets could negatively affect our results of operations