Government Grants

3 Months Ended

Mar. 31, 2026

Government Assistance [Abstract]

Government Grants

Government Grants

The Company was awarded $152.4 million in grants to build broadband services to unserved residencies in Virginia, Maryland, West Virginia and Ohio and upgrade the middle mile network in Ohio. The Company has substantially completed its grant obligations in Virginia and expects to complete the remaining obligations in 2026. During the three months ended March 31, 2026, the Company was awarded additional grants of $1.1 million to build broadband services to additional unserved residences in Ohio.

The purpose of the grant programs described above was to subsidize the expansion of the Company’s broadband network; therefore, most amounts recognized under these programs have been recorded as a reduction to the related property, plant and equipment and cash receipts are presented as cash flows from investing activities in the Company’s unaudited condensed consolidated statements of cash flows. One government grant allows reimbursements for direct capital expenditures and indirect operating expenses. The portion of government grant reimbursements related to indirect expenses are recorded as reductions of the related cost of service expense or selling, general and administrative expense in the Company’s unaudited condensed consolidated statements of operations and are presented as cash flows from operating activities in the Company’s unaudited condensed consolidated statements of cash flows.

The Company recognizes grant receivables at the time it becomes probable that the Company will be eligible to receive the grant, which is estimated to correspond with the date when specified build-out milestones are achieved. As a result of these programs, the Company received $12.9 million and $6.9 million in cash receipts during the three months ended March 31, 2026

and 2025, respectively, and had approximately $5.1 million and $10.5 million in accounts receivable as of March 31, 2026 and December 31, 2025, respectively.