OLD MARKET CAPITAL Corp (OMCC)·Q2 2026 Earnings Summary

Executive Summary

• Q2 2026 revenue was $3.159M, up 6.7% sequentially vs Q1 ($3.034M) and 6.4% vs Q4 2025 ($2.968M); net loss attributable to common shareholders was $0.752M, roughly flat vs Q1 ($0.748M) and higher than Q4’s $0.124M loss as D&A ramped with fiber buildouts .
• Fiber network expansion continued: fiber subscribers rose to 5,200 (from 4,800 in Q1) and passings reached 14,600 (from 13,000 in Q1), supporting revenue QoQ growth; total broadband subscribers reached 13,400 (vs 13,200 in Q1, 12,850 in Q4) .
• General & administrative expense fell YoY due to prior-period acquisition/integration costs, while depreciation/amortization increased with capitalized fiber assets; loss from operations improved YoY vs Q2 2025, though still negative .
• Financing remains favorable: Amplex drew additional $2.4M (total $3.0M) under the 2% fixed RUS loan with payments deferred until Oct 31, 2027, providing low-cost capital for buildout; long-term debt stood at $3.348M at Sept 30, 2025 .
• No explicit revenue/EPS guidance was issued; management changed fiscal year-end to Dec 31 effective Oct 1, 2025 to better align planning cycles, and outlined material weakness remediation steps (ICFR), both potential stock-reaction catalysts tied to execution and governance improvements .

What Went Well and What Went Wrong

What Went Well

• Sequential and YoY revenue growth driven by subscriber additions and fiber uptake; management noted Q2 revenue increase was “primarily due to an increase in total number of broadband subscribers” .
• Fiber rollout momentum: fiber subscribers up to 5,200 and passings to 14,600, with continuing RUS-backed build in Ohio; “Amplex drew an additional $2.4 million… total drawn amount of $3.0 million… bears interest at 2%… payments deferred for three years” .
• Operating discipline: general & administrative decreased YoY as restructuring/integration costs did not recur, aiding operating loss improvement vs prior year .

What Went Wrong

• Profitability still negative: loss from operations of $0.963M and net loss attributable to common shareholders of $0.752M, reflecting continued D&A and network operations as fiber assets ramp .
• Depreciation and amortization surged YoY with accelerated fiber network capitalization and useful life adjustments, pressuring GAAP profitability (D&A of $0.864M in Q2 vs $0.481M last year quarter) .
• Internal controls: management disclosed material weaknesses in ICFR (non-routine transactions, segregation of duties, IT controls at subsidiary), requiring remediation and adding governance risk until resolved .

Financial Results

Segment/product breakdown (Telecommunications revenue):

Key operating KPIs:

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Revenue totaled $3.2 million for the three months ended September 30, 2025, compared to $3 million… primarily due to an increase in total number of broadband subscribers” .
• “General and administrative expenses… decreased… due to professional fees and restructuring expenses incurred in the prior period in relation to the Amplex Acquisition” .
• “Depreciation and amortization expense… increased… attributable to increases in fixed asset balances from the continuing build out of our fiber network” .
• RUS loan details: “bears interest at a fixed rate of 2%… all accrued interest and principal on advances will be deferred for a three-year period ending on October 31, 2027” .
• Strategy reiteration: “now operates as a holding company… with a controlling interest in a broadband company, Amplex, and seeks to pursue additional controlling interests” .

Q&A Highlights

• No earnings call transcript was available for Q2 2026; clarifications derived from the 8-K press release and 10-Q MD&A.
• Financing: Terms and draw status for the RUS loan (2% fixed, three-year deferral, $3.0M drawn at quarter-end) were detailed in filings .
• Operations: Drivers of revenue growth (subscriber additions) and expense dynamics (lower G&A vs prior year, higher D&A from fiber assets) were explicitly discussed .
• Controls: Remediation steps for material weaknesses in ICFR outlined, including system access changes and journal entry reviews at subsidiary level .

Estimates Context

• S&P Global consensus EPS and revenue estimates for OMCC Q2 2026 were unavailable; no analyst count was shown. Actual revenue was $3.159M, but we could not obtain a Street consensus to assess beat/miss. Values retrieved from S&P Global.*

Key Takeaways for Investors

• Sequential revenue growth (+4.1% Q1→Q2; +6.4% vs Q4) is underpinned by increasing fiber subscribers and passings; watch fiber mix as a margin lever .
• Profitability remains constrained by rising D&A from accelerated fiber deployment; monitor operating leverage as build stabilizes and higher-margin fiber penetrates .
• The 2% fixed RUS financing with deferred payments is an attractive capital structure supporting network expansion and liquidity; further drawdowns are a near-term execution catalyst .
• Governance/controls remediation is progressing; resolution of material weaknesses would remove an overhang and could expand investor confidence and potential coverage .
• Strategic focus as a holding company targeting controlling stakes (with Amplex as the core asset) persists; potential future acquisitions could alter growth/return profiles .
• Discontinued operations and legacy litigation impacts have largely subsided; focus is now firmly on telecom operations and fiber ROI .
• Near-term trading implications: expect sensitivity to disclosures on fiber build pace, subscriber growth, and ICFR remediation milestones; mid-term thesis rests on operating leverage once fiber capex translates into steady ARPU/retention.

Notes:

• Q2 2026 8‑K Item 2.02 press release (Exhibit 99.1) and supplemental operating data: .
• Q2 2026 10‑Q (three months ended Sept 30, 2025) financials and MD&A: .
• Q1 2026 8‑K/10‑Q (three months ended Jun 30, 2025) press release/financials: .
• Q3 2025 8‑K/10‑Q (three months ended Dec 31, 2024) financials and MD&A: .