SHEN narrows Q2 operating loss 89% YoY but debt rises $203M; new M&A insurance claim filed

Filed July 29, 2026 · Period ending June 30, 2026 · Compared to 10-Q Jul 31, 2025 · ~2 min read

Key Changes

• high

  Q2 2026 operating loss narrowed to $1.0M (1.1% of revenue) from $9.1M (10.3%) in Q2 2025, an 88.8% improvement driven by revenue growth and lower depreciation, partially offset by higher SG&A and interest expense.

  MD&A: Operating Results verify on EDGAR →
• high

  Net debt increased $203M to $715M (June 2026 vs. June 2025) as the company replaced Term Loans with a securitization structure: $567M in ABS Notes backed by fiber assets, a $68M VFN, and a $93M RCF. Interest expense rose 61.5% to $9.7M in Q2 2026.

  MD&A: Liquidity and Capital Resources verify on EDGAR →
• high

  Available liquidity fell $108M to $159M (June 2026 vs. June 2025) as RCF availability dropped from $143M to $75M and remaining government grant reimbursements declined from $95M to $27M. Management expects to fulfill most grant obligations by year-end 2026.

  MD&A: Liquidity verify on EDGAR →