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BOSTON OMAHA Corp (BOC)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue was $28.73M (+3.7% YoY) with net loss attributable to common shareholders of $2.59M and EPS of -$0.08; Q/Q revenue was up ~1.9% from $28.20M, while EPS declined from -$0.07 in Q2 .
  • Link Media Outdoor posted a record Adjusted EBITDA of ~$4.8M (+5.6% YoY), while Broadband adjusted EBITDA was ~$2.3M and $3.2M excluding Fiber Fast Homes; GIG’s loss ratio rose to 25.3%, driving negative adjusted EBITDA (-$0.3M) .
  • Results missed Wall Street EPS (-$0.08 actual vs -$0.03 est) and were essentially in line/slightly below on revenue ($28.73M actual vs $28.85M est); Q2 also missed EPS (-$0.07 actual vs -$0.01 est) and revenue ($28.20M vs $29.39M) (*Values retrieved from S&P Global).
  • Net Other Expense weighed on GAAP results (unrealized SKYH warrant loss ~$1.5M; BOAM fair value losses ~$2.0M; equity method loss ~$0.6M; interest expense ~$0.7M), partially offset by interest/dividend income ~$0.3M .
  • Shares showed negative sentiment on the print date per third‑party headlines, with -6.6% intraday noted around the 10‑Q posting; narrative impact was driven by EPS miss and insurance loss ratio elevation .

What Went Well and What Went Wrong

What Went Well

  • Link Media Outdoor delivered highest ever Adjusted EBITDA (~$4.8M, +5.6% YoY), with gross margin up 310 bps YoY to 67.9% and land cost held at 18.2% .
  • Broadband adjusted EBITDA improved YoY (~$3.2M across AireBeam/InfoWest/Utah Broadband, +23.2% YoY), with fiber subscribers up to 14.1k vs 11.2k and passings to 36.0k vs 30.0k .
  • Unrestricted cash plus U.S. Treasuries totaled ~$41.1M at quarter‑end; NOL carryforwards stood at ~$91.1M (Dec 31, 2024), preserving financial flexibility .

What Went Wrong

  • Consolidated EPS missed consensus and worsened Q/Q (-$0.08 vs -$0.03 est; Q2: -$0.07 vs -$0.01 est), driven by Net Other Expense (SKYH warrants, BOAM fair value losses, equity method loss, interest expense) (*Values retrieved from S&P Global) .
  • GIG (surety) loss ratio rose to 25.3% (vs Q2’s 32.2%), reflecting larger claim payments and increased reserves, which pressured margins and adjusted EBITDA (~-$0.3M) .
  • Broadband revenue/EBITDA were flat to slightly down Q/Q due to seasonal account holds in AireBeam’s “snowbirds” base, limiting sequential growth .

Financial Results

Consolidated Financials (GAAP)

MetricQ1 2025Q2 2025Q3 2025
Total Revenues ($USD)$27,730,494 $28,203,670 $28,734,355
Net Loss Attributable to Common ($USD)$(669,285) $(2,320,083) $(2,587,905)
Basic & Diluted EPS ($USD)$(0.02) $(0.07) $(0.08)
Net Other (Expense) Income ($USD)$(1,817,197) $(4,492,520) $(4,113,722)
Depreciation & Amortization ($USD)$5,938,007 $6,164,312 $6,275,246

Q3 YoY Comparison

MetricQ3 2024Q3 2025
Total Revenues ($USD)$27,700,936 $28,734,355
Net Loss Attributable to Common ($USD)$(1,595,136) $(2,587,905)
Basic & Diluted EPS ($USD)$(0.05) $(0.08)

Segment/Category Revenue Mix (GAAP)

CategoryQ1 2025Q2 2025Q3 2025
Billboard Rentals, Net ($USD)$10,764,475 $11,440,033 $11,788,400
Broadband Services ($USD)$10,320,130 $10,233,463 $10,150,921
Premiums Earned ($USD)$5,563,773 $5,565,360 $5,636,732
Insurance Commissions ($USD)$579,293 $448,192 $629,982
Investment & Other Income ($USD)$502,823 $516,622 $528,320
Total Revenues ($USD)$27,730,494 $28,203,670 $28,734,355

Actual vs Wall Street Consensus (S&P Global)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD) Actual$27,730,494 $28,203,670 $28,734,355
Revenue Consensus Mean ($USD)$27,137,490*$29,386,060*$28,848,240*
EPS Actual ($USD)$(0.02) $(0.07) $(0.08)
EPS Consensus Mean ($USD)n/a$(0.01)*$(0.03)*
Estimates Count (Revenue)1*2*2*
Estimates Count (EPS)n/a1*1*

Values with an asterisk (*) retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company guidanceFY/Q4 2025Not providedNot providedMaintained (no formal guidance disclosed in press release or slides)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1, Q2)Current Period (Q3)Trend
Outdoor advertising demand mixQ2: Reduced spend in Political/Gov’t & Auto; offsets from Professional Services & Skilled Trades Q3: Reduced Political/Gov’t & Auto; offsets from Professional Services & Entertainment; record Adjusted EBITDA Stabilizing mix; operating efficiency improving
Broadband fiber build/sub growthQ2: ~3.2k passings, ~1.1k subs YTD; adjusted EBITDA growth Q3: ~4.2k passings, ~1.7k subs YTD; Q/Q softness from seasonal “snowbirds” account holds Continued buildout with seasonal demand variability
Fiber Fast Homes unit economicsQ2: Revenue +82% YoY; negative adjusted EBITDA; backlog 9.4k Q3: Revenue +68% YoY; negative adjusted EBITDA; backlog ~9.4k; focus on lowering burn Gradual revenue growth; working to improve unit burn
Surety loss ratio and claimsQ2: Loss ratio 32.2%; reserves on two bonds Q3: Loss ratio 25.3%; larger claim payments and added reserves Elevated losses vs historical; improved vs Q2
SKYH investment mark/fair valueQ1/Q2: Mixed realized gains and warrant mark losses; equity method income in Q2 Q3: Warrant loss ~$1.5M; equity method loss ~$0.6M; GAAP vs market value gap (GAAP $82.7M vs market $126.9M) Volatile marks; continued GAAP/market value divergence

Management Commentary

  • “During the third quarter of fiscal 2025, ‘Net Other Expense’ included an unrealized loss of $1.5 million on the Sky Harbour warrants… losses of $2.0 million within BOAM… $0.6 million in losses from unconsolidated affiliates… and $0.7 million in interest expense. These items were partially offset by interest and dividend income of $0.3 million.”
  • “Our investment in Sky Harbour Class A common stock and warrants was valued at $82.7 million… If… accounted for at fair value… then our total investment… would be valued at $126.9 million as of September 30, 2025.”
  • “Our book value per share was $16.80 at September 30, 2025, compared to $16.99 at December 31, 2024.”

Q&A Highlights

  • No Q3 2025 earnings call transcript was available in our document catalog; commentary reflects press release and slide disclosures .
  • Management’s narrative centered on segment performance (record outdoor EBITDA; broadband seasonality; surety claims/reserves) and investment marks (SKYH), with no formal quantitative guidance .

Estimates Context

  • Q3: Revenue essentially in line/slight miss ($28.73M actual vs $28.85M est), EPS missed (-$0.08 actual vs -$0.03 est) — bold negative surprise on EPS; Q2 similarly missed both revenue and EPS; Q1 revenue beat (EPS not covered) (*Values retrieved from S&P Global).
  • Sparse coverage (1–2 estimates/period) implies model volatility; given elevated Net Other Expense and surety loss ratio, consensus EPS may need to move lower near‑term, while revenue models should reflect seasonal broadband holds and mixed outdoor category demand .

Key Takeaways for Investors

  • Outdoor advertising execution is solid; record Adjusted EBITDA and improving gross margin support medium‑term operating leverage despite category mix headwinds .
  • Broadband strategy continues to scale fiber; expect seasonal softness in non‑winter months but underlying fiber subscriber/passings growth remains intact .
  • Surety claims/reserves are the key GAAP risk; watch loss ratio normalization and professional fee trajectory to re‑establish margin progression .
  • Equity method investment in SKYH introduces mark‑to‑market volatility (warrants, equity method), a recurring driver of Net Other Expense and EPS variability .
  • Liquidity and NOLs provide optionality (unrestricted cash + UST ~$41.1M; NOLs ~$91.1M), but absent guidance, execution in segments and investment marks will steer EPS near‑term .
  • Given EPS miss vs consensus and insurance loss ratio elevation, estimate downgrades are likely; any improvement in surety claims and outdoor demand mix would be positive catalysts (*Values retrieved from S&P Global) .
  • Near‑term trading: skew cautious until loss ratio stabilizes and Net Other Expense volatility abates; medium‑term thesis rests on outdoor/broadband EBITDA growth and improved insurance underwriting discipline .