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BO

BOSTON OMAHA Corp (BOC)·Q2 2025 Earnings Summary

Executive Summary

  • Revenue of $28.20M grew 4.1% YoY and 1.7% sequential, but came in below S&P Global consensus of $29.39M; EPS of ($0.07) missed consensus of ($0.01) as “Net Other Expense” swung negative on Sky Harbour warrant marks and BOAM fair value changes . Bold miss: Revenue and EPS both missed consensus*.
  • Segment performance was mixed: Broadband revenue +1.6% YoY with strong margin and subscriber growth, Link Media Outdoor revenue flat with category softness, and Surety Insurance revenue +12.1% YoY but with a higher loss ratio from larger claims/reserves .
  • Investment portfolio volatility (Sky Harbour) remained a key earnings driver: Q2 recognized ~$6.1M equity method income and ~$2.9M realized gains on SKYH shares, but an ~($10.7)M unrealized warrant loss pressured “Net Other” .
  • Liquidity/authorization intact: Unrestricted cash/Treasuries totaled ~$41.1M, NOL carryforwards of ~$91.1M, and ~$18.4M remaining under the share repurchase authorization through 9/30/25 .

What Went Well and What Went Wrong

What Went Well

  • “Equity method income of ~$6.1 million related to SKYH Class A common stock” supporting investment returns despite warrant volatility .
  • Broadband execution: “Adjusted EBITDA of $3.2M, +16.6% YoY; Gross margin 80.9%,” with fiber subscribers up to 13.5k from 10.1k and passings to 35.0k from 28.0k .
  • Operational cash generation improved: Cash inflow from operations for the six months ended June 30, 2025 was $7.1M vs $6.9M a year ago .

What Went Wrong

  • “Unrealized loss of ~$10.7M related to SKYH warrants,” plus “losses of ~$2.6M within BOAM,” drove Net Other Expense to $(4.49)M, contributing to the EPS miss .
  • Outdoor advertising headwinds: “Flat revenue growth YoY mainly due to reduced advertising spend in Political/Government, Automotive, and Entertainment categories,” and increased employee costs (Link management comp changes) .
  • Surety loss ratio rose to 32.2% in Q2 (vs 18.0% YoY change context), “mainly related to larger claim payments and increased reserves on two outstanding contract bonds,” pressuring segment profitability .

Financial Results

MetricQ2 2024Q1 2025Q2 2025Consensus Q2 2025
Revenue ($USD)$27,087,783 $27,730,494 $28,203,670 $29,386,060*
EPS (Basic & Diluted) ($USD)($0.07) ($0.02) ($0.07) ($0.01)*
Net Loss Attributable to Common ($USD)($2,235,219) ($669,285) ($2,320,083) n/a
Depreciation & Amortization ($USD)$5,512,274 $5,938,007 $6,164,312 n/a
Net Other (Expense)/Income ($USD)$2,357,407 ($1,817,197) ($4,492,520) n/a

Values with asterisks () are retrieved from S&P Global.
Bold comparison: Revenue miss of ~$1.18M vs consensus; EPS miss of ~$0.06 vs consensus*.

Segment revenue breakdown

SegmentQ2 2024Q1 2025Q2 2025
Billboard Rentals, Net ($USD)$11,437,468 $10,764,475 $11,440,033
Broadband Services ($USD)$9,787,983 $10,320,130 $10,233,463
Premiums Earned ($USD)$4,737,056 $5,563,773 $5,565,360
Insurance Commissions ($USD)$527,055 $579,293 $448,192
Investment & Other Income ($USD)$598,221 $502,823 $516,622
Total Revenues ($USD)$27,087,783 $27,730,494 $28,203,670

KPIs and segment profitability

KPIQ2 2024Q2 2025
Link Media Outdoor: Gross margin %n/a67.6%
Link Media Outdoor: Adjusted EBITDA ($M)$4.6 $4.5
Link Media: Structures / Faces3,980 / 7,630 3,950 / 7,570
Link Media: Digital faces102 107
Broadband: Revenue ($M)$9.5 (implied YoY base)$9.6
Broadband: Gross margin %n/a80.9%
Broadband: Adjusted EBITDA ($M)n/a$3.2
Broadband: Fixed wireless subscribers (k)32.1 30.6
Broadband: Fiber subscribers (k)10.1 13.5
Broadband: Fiber passings (k)28.0 35.0
Fiber Fast Homes: Revenue ($M)n/a$0.6
Fiber Fast Homes: Adjusted EBITDA ($M)n/a($1.0)
Fiber Fast Homes: Fiber subscribers (k)2.3 4.2
Fiber Fast Homes: Fiber passings (k)6.3 8.4
GIG: Revenue ($M)n/a$6.5
GIG: Loss ratio %18.0% (YoY context) 32.2%
Investments: SKYH GAAP Value ($M)n/a$84.8
Investments: SKYH Market Value ($M)n/a$127.2
Cash & Treasuries ($M)n/a$41.1
NOL Carryforwards ($M)$91.1 $91.1
Repurchase Authorization Remaining ($M)n/a$18.4

Note: Company discloses segment Adjusted EBITDA as non-GAAP; see definition and Reg G disclosures in slides .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (Consolidated)FY/Q3+Not providedNot providedMaintained: no formal guidance
Margins (Consolidated)FY/Q3+Not providedNot providedMaintained: no formal guidance
OpEx / D&AFY/Q3+Not providedNot providedMaintained: no formal guidance
OI&E (Net Other)FY/Q3+Not providedNot providedMaintained: no formal guidance
Tax RateFY/Q3+Not providedNot providedMaintained: no formal guidance
Share Repurchase AuthorizationThrough 9/30/25$20M program$18.4M remainingActive program, remaining capacity
DividendsFY/Q3+None disclosedNone disclosedMaintained

The company did not issue formal quantitative guidance in the Q2 press release or slides .

Earnings Call Themes & Trends

No earnings call transcript was published for Q2 2025; the company provided an earnings press release and supplemental slides .

TopicPrevious Mentions (Q1 2025)Current Period (Q2 2025)Trend
Sky Harbour investment impactsNon-cash losses from unconsolidated affiliates; warrant gains; realized gains on SKYH sales Equity method income ~$6.1M; realized gain ~$2.9M; large unrealized warrant loss ~$10.7M Continued volatility; warrants swing Net Other
Broadband fiber build & subsOngoing expansion; focus on partnerships and cost efficiencies (inferred from business context) Fiber subs 13.5k; passings 35.0k; Adjusted EBITDA up; reduced G&A by ~$660k YTD Execution improving, operating leverage building
Outdoor advertising demandStable to soft; category mix pressures (noted in industry context) Flat revenue; softness in Political/Auto/Entertainment; offset by Professional/Skilled Trades; comp structure changes Mixed demand; cost actions to offset
Surety claims/reservesTwo claim payments identified in Q1 Higher loss ratio (32.2%) due to larger claim payments and reserves on two outstanding contract bonds Pressure persisted QoQ
Capital allocation & liquidityCash/Treasuries ~$44.2M at Q1; SKYH fair value higher Cash/Treasuries ~$41.1M; NOLs $91.1M; repurchase capacity $18.4M; SKYH GAAP $84.8M vs market $127.2M Strong liquidity; tax assets intact

Management Commentary

  • “Flat revenue growth YoY mainly due to reduced advertising spend in Political/Government, Automotive, and Entertainment categories… offset by increased advertising spend in Professional Services and Skilled Trade Services categories.”
  • “~3.2k new fiber passings and ~1.1k new fiber subscribers YTD ’25… Reduced employee costs and G&A by ~$660k YTD ’25 compared to YTD ’24.”
  • “Loss ratio of 32.2% mainly due to larger claim payments and increased reserves on two outstanding contract bonds.”
  • “Unrealized loss of ~$10.7 million related to SKYH warrants… Equity method income of ~$6.1 million related to SKYH Class A common stock… Realized gain of ~$2.9 million on sale of 509,206 shares.”

Q&A Highlights

  • No Q2 2025 earnings call/Q&A transcript was provided; no analyst Q&A disclosures available for this quarter .

Estimates Context

  • Revenue: $28.20M vs $29.39M consensus; miss of ~$1.18M* .
  • EPS: ($0.07) vs ($0.01) consensus; miss of ~$$0.06* .
  • Coverage depth: EPS had 1 estimate; revenue had 2 estimates*.
MetricQ2 2025 ActualQ2 2025 Consensus
Revenue ($USD)$28,203,670 $29,386,060*
EPS ($USD)($0.07) ($0.01)*
EPS – # of Estimatesn/a1*
Revenue – # of Estimatesn/a2*

Values with asterisks (*) are retrieved from S&P Global.
Implication: Expect estimate resets on “Net Other” line volatility and segment-level loss ratio assumptions in Surety; Broadband estimates may trend higher on fiber scale benefits.

Key Takeaways for Investors

  • Near-term trading: Headline misses on revenue/EPS and the negative “Net Other” will weigh on sentiment; watch SKYH warrant/stock volatility as a continuing P&L swing factor .
  • Medium-term thesis: Broadband fiber build is scaling with strong gross margins and rising Adjusted EBITDA; subscriber growth supports improving unit economics .
  • Outdoor advertising: Demand softness in key categories creates near-term revenue headwinds; cost actions and mix shifts are partially mitigating .
  • Surety insurance: Elevated loss ratio from claims/reserves is a watch item; further reserve development would pressure segment EBITDA .
  • Capital allocation: ~$18.4M remaining buyback authorization and ~$91.1M NOLs provide flexibility; liquidity of ~$41.1M cash/Treasuries supports operations and optionality .
  • Book value/Equity method: Book value per share $16.88 (down from $16.99 YE) and SKYH GAAP vs market value differential highlight embedded portfolio optionality but reported earnings sensitivity .
  • Estimates: Expect analysts to lower near-term EPS to reflect warrant mark-to-market and BOAM fair value noise, while potentially lifting Broadband segment expectations on improved KPIs*.

Values with asterisks (*) are retrieved from S&P Global.