Shares of Shenandoah Telecommunications Company (SHEN) plummeted by 5.65% on Tuesday after the company reported disappointing financial results for the third quarter of 2024. The telecommunications service provider reported a net loss of $6.9 million, or $0.13 per share, missing analyst estimates of a $0.02 loss per share.

Despite a 30% year-over-year increase in revenue to $87.6 million, driven by the acquisition of Horizon and growth in the Glo Fiber expansion markets, Shentel's top-line performance fell short of analyst expectations of $88.8 million.

The company faced significant cost pressures during the quarter, with operating expenses surging 35% due to higher costs associated with the Horizon integration and the expansion of its Glo Fiber network. Depreciation and amortization expenses rose 71.7%, primarily driven by the Horizon acquisition and Glo Fiber network expansion.

While the Glo Fiber expansion markets added approximately 6,000 subscribers and saw revenue growth of 62%, the benefits were offset by higher selling, general, and administrative expenses to support the new markets. Integration and acquisition costs related to the Horizon deal also weighed on profitability, increasing by $0.5 million compared to the previous year.