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OM

OLD MARKET CAPITAL Corp (OMCC)·Q2 2025 Earnings Summary

Executive Summary

  • Revenue grew to $3.034M for the quarter ended June 30, 2025, driven by wireless and fiber internet services; net loss from continuing operations narrowed to $0.758M with EPS from continuing operations at $(0.12) versus $(0.79) YoY .
  • Telecommunications segment showed strong operating improvement: Adjusted EBITDA reached $0.665M versus $(0.520)M YoY; gross margin improved to 66.2% from 63.6% YoY, and segment income before tax turned positive at $0.065M .
  • Operating expenses improved: other operating expenses decreased 14% YoY to $3.412M, while depreciation & amortization rose due to fiber asset buildout, consistent with strategy .
  • No formal quantitative guidance was provided; continued fiber passings expansion (13,000 at 6/30/25 vs 9,500 at 6/30/24) and subscriber mix shift toward fiber are the key operational drivers into the next quarter .
  • Wall Street consensus estimates via S&P Global were unavailable at time of writing; beat/miss analysis versus estimates is pending update.

What Went Well and What Went Wrong

What Went Well

  • Telecommunications segment profitability improved: Adjusted EBITDA of $0.665M (vs $(0.520)M YoY), with gross margin up to 66.2% (from 63.6%) and positive segment income before taxes of $0.065M .
  • Sequential revenue increased to $3.034M from $2.951M in the prior quarter, supported by wireless ($1.672M) and fiber ($0.930M) contributions .
  • Management emphasized fiber buildout and subscriber mix shift: fiber subscribers rose to 4,800 and fiber passings to 13,000 as of June 30, 2025, reflecting continued execution on network expansion .

“During the three months ended June 30, 2025 other operating expenses decreased 14% to $3.4 million as compared to $4.0 million during the three months ended June 30, 2024.”
“Depreciation and amortization expenses increased 568% to $0.6 million… attributable to the ongoing installation of physical assets related to the fiber optic business.”

What Went Wrong

  • Consolidated operations remain loss-making: net loss from continuing operations of $0.758M and total basic & diluted net loss per share of $(0.11) for the quarter .
  • Depreciation and amortization increased materially due to fiber asset deployment, pressuring operating income despite margin gains .
  • Fixed wireless subscribers declined YoY to 8,400 from 9,100, indicating potential churn or migration effects within the subscriber base .

Financial Results

Revenue, EPS, and Operating Metrics (oldest → newest)

MetricDec 31, 2024 (Q3 FY25)Mar 31, 2025 (Q4 FY25)Jun 30, 2025 (Q2 2025 / Q1 FY26)
Total Revenue ($USD Thousands)$2,968 $2,951 $3,034
Net (Loss) from Continuing Ops ($USD Thousands)$(465) $(1,109) $(758)
Basic & Diluted EPS – Continuing Ops ($USD)$(0.08) $(0.14) $(0.12)
Basic & Diluted EPS – Total ($USD)$(0.04) $(0.15) $(0.11)
Other Operating Expenses ($USD Thousands)$3,293 $3,997 $3,412
Depreciation & Amortization ($USD Thousands)$— (not separately disclosed for quarter)$— (not separately disclosed for quarter)$608 (consolidated)

Notes:

  • Telecommunications segment D&A reported at $572K for the quarter; consolidated D&A was $608K, reflecting segment vs consolidated presentation .

Segment Revenue Breakdown (oldest → newest)

SegmentDec 31, 2024Mar 31, 2025Jun 30, 2025
Wireless Internet Services ($USD Thousands)$1,693 $1,656 $1,672
Fiber Internet Services ($USD Thousands)$851 $870 $930
Other Revenue ($USD Thousands)$424 $425 $432
Total Revenue ($USD Thousands)$2,968 $2,951 $3,034

Telecommunications Segment Key Metrics

MetricQ2 2025 (Jun 30, 2025)Q2 2024 (Jun 30, 2024)YoY Change
Segment Revenue ($USD Thousands)$3,034 $489 520.4%
Gross Margin (%)66.2% 63.6% +4.1 pts
Segment Income (Loss) Before Taxes ($USD Thousands)$65 $(600) +$665 / +110.8%
Adjusted EBITDA ($USD Thousands)$665 $(520) +$1,185 / +227.9%
Depreciation & Amortization ($USD Thousands)$572 $80 +$492 / +615.0%

Balance Sheet Snapshot

MetricJun 30, 2025Mar 31, 2025
Total Assets ($USD Thousands)$78,925 $77,672
Total Liabilities ($USD Thousands)$12,552 $10,652
Redeemable Noncontrolling Interests ($USD Thousands)$13,908 $13,880
Total Shareholders’ Equity ($USD Thousands)$52,465 $53,140

Guidance Changes

No formal quantitative guidance (revenue, margins, OpEx, OI&E, tax rate, or segment-specific metrics) was disclosed in the Q2 2025 press release or the referenced filings; forward-looking statements reiterated ongoing fiber buildout and capital allocation intentions without specific ranges .

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ3 2025N/A N/A Maintained: No formal guidance
MarginsQ3 2025N/A N/A Maintained: No formal guidance
OpExQ3 2025N/A N/A Maintained: No formal guidance
Tax RateQ3 2025N/A N/A Maintained: No formal guidance
Segment KPIsQ3 2025N/A N/A Maintained: No formal guidance
DividendAnyN/A N/A Maintained: No formal guidance

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available in the document catalog at time of review.

TopicPrevious Mentions (Q3 FY25 – Dec 2024; Q4 FY25 – Mar 2025)Current Period (Q2 2025 – Jun 2025)Trend
Fiber buildout and passingsFiber passings increased ~28.5% since acquisition; ongoing RUS loan deployment Fiber passings reached 13,000; D&A rising due to asset installation Accelerating buildout; opex efficiency gains offset by higher D&A
RUS loan draws (2% fixed rate, deferred interest)$0.6M drawn by FY25; terms described (deferral to Oct 31, 2027; maturity Oct 31, 2046) Additional $0.9M drawn in Q2; total $1.5M as of Jun 30, 2025 Continued utilization supporting fiber expansion
Operating expenses disciplineElevated due to restructuring/acquisition in prior periods Other operating expenses decreased 14% YoY to $3.412M Improving cost structure
Subscriber mix shiftFiber subs +20% since acquisition; total subs ~13,000 by FY25 end Fiber subs 4,800; fixed wireless 8,400; total subs 13,200 Mix tilting toward higher-value fiber
Segment profitabilityAdjusted EBITDA positive in 6M ended Sep 30, 2025; margin steady Quarterly Adjusted EBITDA $665K; segment income >0 Improving profitability trajectory

Management Commentary

  • “During the three months ended June 30, 2025 other operating expenses decreased 14% to $3.4 million as compared to $4.0 million during the three months ended June 30, 2024.”
  • “Depreciation and amortization expenses increased 568% to $0.6 million… attributable to the ongoing installation of physical assets related to the fiber optic business.”
  • Telecommunications segment: “Adjusted EBITDA… $665.0 [thousand]” and “Gross Margin 66.2%” .
  • Strategic posture: Company now operates as a holding company with controlling interest in Amplex and is pursuing additional controlling interests in other sectors .

Q&A Highlights

No Q2 2025 earnings call transcript was available. As a result, Q&A themes, guidance clarifications, and tone changes versus prior quarters cannot be assessed at this time.

Estimates Context

  • Wall Street consensus estimates (EPS and revenue) via S&P Global were unavailable at the time of writing due to a data access limit, preventing a beat/miss comparison for Q2 2025. We will update when accessible.
  • Without S&P Global consensus, the directional takeaway is that sequential revenue increased ($2.951M → $3.034M) and EPS from continuing operations improved ($(0.14) → $(0.12)), while YoY comparisons are inflated by partial-period consolidation in the prior-year base (June 15–30, 2024) .

Key Takeaways for Investors

  • Improving operating efficiency: Other operating expenses declined 14% YoY to $3.412M, supporting narrowing losses despite elevated D&A from fiber investments .
  • Strong telecom segment turn: Adjusted EBITDA rose to $0.665M and segment income before tax turned positive, evidence of operating leverage as fiber buildout progresses .
  • Fiber-led growth: Fiber subscribers increased to 4,800 and passings to 13,000, positioning for future revenue scale and higher-quality ARPU versus fixed wireless .
  • Sequential momentum: Revenue rose to $3.034M from $2.951M prior quarter, with EPS from continuing operations improving from $(0.14) to $(0.12) .
  • Financing supports buildout: Additional $0.9M draw under 2% RUS loan (total $1.5M as of quarter-end) provides cost-effective capital to expand fiber infrastructure .
  • Balance sheet stable: Assets $78,925K, equity $52,465K as of June 30, 2025, offering capacity to continue selective investment while managing leverage and minority interests .
  • Near-term trading lens: Watch for follow-through on opex discipline and continued fiber subscriber growth; absent formal guidance and consensus data, stock reaction likely hinges on perceived sustainability of margin and EBITDA improvements .

Appendix: KPIs

KPIJun 30, 2024Jun 30, 2025YoY Change
Fixed Wireless Subscribers9,100 8,400 -7.7%
Fiber Subscribers3,700 4,800 +29.7%
Fiber Passings9,500 13,000 +36.8%

Appendix: RUS Loan Details

  • Principal: $21.3M at fixed 2% per annum, daily accrual; interest and principal deferred for three years until Oct 31, 2027; maturity Oct 31, 2046 .
  • Draws: $0.6M by FY25; additional $0.9M in Q2 2025; total $1.5M as of June 30, 2025 .
  • Use of proceeds: Fiber buildout in the awarded Ohio area .