Boston Omaha Narrows Losses Amid Revenue Growth, Investment Headwinds

TL;DR

**BOC is showing operational strength with revenue growth and narrower losses, but watch out for volatile investment performance that could swing profitability.**

AI Summary

BOSTON OMAHA Corp (BOC) reported a net loss of $2.99 million for the six months ended June 30, 2025, an improvement from a $5.04 million net loss in the prior-year period. Total revenues increased by 6.26% to $55.93 million, up from $52.64 million in the first six months of 2024. This growth was primarily driven by a 27.33% increase in premiums earned to $11.13 million and a 5.56% rise in broadband services revenue to $20.55 million. Billboard rentals also saw a slight increase of 0.32% to $22.20 million. Despite revenue growth, the company experienced a significant 'Other investment loss' of $9.57 million in H1 2025, a stark contrast to the $7.24 million 'Other investment income' in H1 2024. Employee costs decreased by 14.52% to $17.46 million, and professional fees dropped by 49.08% to $1.45 million, contributing to a reduction in total costs and expenses. The company's cash and cash equivalents increased to $29.69 million from $28.29 million at year-end 2024, while total assets grew slightly to $730.63 million from $728.35 million.

Why It Matters

Boston Omaha's ability to narrow its net loss while growing revenues across its core segments — billboard, broadband, and insurance — suggests operational improvements, which is a positive signal for investors. However, the substantial swing from investment income to a significant investment loss highlights a potential vulnerability to market volatility, impacting overall profitability. For employees, reduced employee costs could indicate efficiency gains or workforce adjustments. Customers in the broadband and billboard sectors benefit from continued service expansion. In a competitive landscape, BOC's diversified asset base and strategic acquisitions position it for long-term growth, but its investment performance will be a key differentiator.

Risk Assessment

Risk Level: medium — The company reported a significant 'Other investment loss' of $9,573,102 for the six months ended June 30, 2025, a substantial negative swing from the $7,243,060 'Other investment income' in the prior-year period. This volatility in investment income, coupled with an accumulated deficit of $7,738,310, indicates a medium risk profile where external market factors can heavily influence financial results despite operational improvements.

Analyst Insight

Investors should closely monitor Boston Omaha's investment portfolio performance and its impact on net income, as this was a major drag on H1 2025 results. While operational revenues are growing, the company's ability to generate consistent profits will depend on mitigating investment losses or improving returns from its diversified asset management segment.

Financial Highlights

debt To Equity

N/A

revenue

$55.93M

operating Margin

N/A

total Assets

$730.63M

total Debt

N/A

net Income

-$2.99M

eps

-$0.10

gross Margin

N/A

cash Position

$29.69M

revenue Growth

+6.26%

Revenue Breakdown

Key Numbers

• $2.99M — Net Loss Attributable to Common Stockholders (For six months ended June 30, 2025, an improvement from $5.04M in H1 2024)
• $55.93M — Total Revenues (For six months ended June 30, 2025, up 6.26% from $52.64M in H1 2024)
• $11.13M — Premiums Earned (For six months ended June 30, 2025, up 27.33% from $8.74M in H1 2024)
• $20.55M — Broadband Services Revenue (For six months ended June 30, 2025, up 5.56% from $19.47M in H1 2024)
• $9.57M — Other Investment Loss (For six months ended June 30, 2025, a significant swing from $7.24M income in H1 2024)
• $17.46M — Employee Costs (For six months ended June 30, 2025, down 14.52% from $20.45M in H1 2024)
• $1.45M — Professional Fees (For six months ended June 30, 2025, down 49.08% from $2.86M in H1 2024)
• $730.63M — Total Assets (As of June 30, 2025, up from $728.35M as of December 31, 2024)
• $29.69M — Cash and Cash Equivalents (As of June 30, 2025, up from $28.29M as of December 31, 2024)
• $0.10 — Basic Net Loss per Share (For six months ended June 30, 2025, an improvement from $0.16 in H1 2024)

Key Players & Entities

• BOSTON OMAHA Corp (company) — Registrant
• Link Media Holdings, LLC (company) — Subsidiary for outdoor advertising
• General Indemnity Group, LLC (company) — Subsidiary for insurance operations
• Boston Omaha Broadband, LLC (company) — Subsidiary for broadband operations
• Boston Omaha Asset Management, LLC (company) — Subsidiary for asset management operations
• Yellowstone Acquisition Company (company) — Former SPAC, now Sky Harbour Group Corporation
• Sky Harbour Group Corporation (company) — Result of SPAC business combination
• SEC (regulator) — Securities and Exchange Commission
• New York Stock Exchange (regulator) — Exchange where BOC Class A common stock is registered

FAQ

Risk Factors

• Investment Volatility [high — financial]: The company experienced a significant swing from $7.24 million in 'Other investment income' in H1 2024 to a $9.57 million 'Other investment loss' in H1 2025. This volatility in investment performance poses a risk to overall profitability and financial stability.
• Broadband Service Competition [medium — operational]: While broadband services revenue grew by 5.56% to $20.55 million, the company operates in a competitive market. Increased competition could pressure pricing and subscriber growth, impacting future revenue streams.
• Insurance Regulatory Environment [medium — regulatory]: Premiums earned increased by 27.33% to $11.13 million, indicating a growing insurance segment. This segment is subject to stringent state and federal regulations, which can change and impact operations and profitability.
• Billboard Market Saturation [low — market]: Billboard rentals, the largest revenue segment at $22.20 million, saw only a 0.32% increase. This suggests a mature or potentially saturated market, limiting significant growth potential and making it susceptible to economic downturns affecting advertising spend.

Industry Context

BOSTON OMAHA Corp operates in diverse sectors including insurance, broadband services, and billboard advertising. The insurance market is highly regulated, while broadband faces intense competition. The billboard sector is mature and sensitive to advertising spending cycles.

Regulatory Implications

The company's insurance operations are subject to state-specific regulations, requiring compliance with solvency, policyholder protection, and reporting standards. Changes in insurance laws or increased regulatory scrutiny could impact profitability and operational flexibility.

What Investors Should Do

1. Monitor investment performance closely.
2. Analyze the sustainability of broadband revenue growth.
3. Evaluate the impact of cost reductions.

Glossary

Premiums Earned

The portion of insurance premiums that an insurance company recognizes as revenue for the coverage provided during a specific period. (A key revenue driver for BOC's insurance segment, showing significant growth.)

Other investment loss/income

Gains or losses arising from the company's investments that are not part of its core operating activities. This can include fluctuations in the value of securities or other financial instruments. (A significant factor impacting BOC's net income, showing a substantial negative swing in the current period.)

Cash and Cash Equivalents

Includes cash on hand, bank deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (Indicates the company's immediate liquidity and ability to meet short-term obligations.)

Year-Over-Year Comparison

BOSTON OMAHA Corp has shown positive revenue growth of 6.26% in the first six months of 2025 compared to the prior year, driven by strong increases in premiums earned and broadband services. However, this top-line improvement was overshadowed by a substantial shift to an 'Other investment loss' of $9.57 million, compared to income in the prior period, leading to a reduced net loss. Cost-saving measures, including lower employee and professional fees, contributed to mitigating the overall loss.

Key Financial Figures

• $0.001 — hich Registered Class A common stock, $0.001 par value per share BOC The New Yor
• $4,7 — other investment loss of approximately $4,7 00,000, and distributions to the funds

Filing Documents

• bomn20250630_10q.htm (10-Q) — 2922KB
• ex_829549.htm (EX-31.1) — 14KB
• ex_829550.htm (EX-31.2) — 14KB
• ex_829551.htm (EX-32.1) — 5KB
• ex_829552.htm (EX-32.2) — 6KB
• 0001437749-25-026507.txt ( ) — 11336KB
• boc-20250630.xsd (EX-101.SCH) — 75KB
• boc-20250630_cal.xml (EX-101.CAL) — 64KB
• boc-20250630_def.xml (EX-101.DEF) — 495KB
• boc-20250630_lab.xml (EX-101.LAB) — 439KB
• boc-20250630_pre.xml (EX-101.PRE) — 538KB
• bomn20250630_10q_htm.xml (XML) — 2147KB

– Financial Information

Part I – Financial Information 4

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited). 4 Condensed Consolidated Balance Sheets – June 30, 2025 and December 31, 2024 4 Condensed Consolidated Statements of Operations – Three and Six Months Ended June 30, 2025 and 2024 6 C ondensed C onsolidated Statements of Changes in Stockholders' Equity – Three and Six Months Ended June 30, 2025 and 2024 7 C ondensed C onsolidated Statements of Cash Flows – Six Months Ended June 30, 2025 and June 30, 2024 9 Notes to Condensed Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 55

Controls and Procedures

Item 4. Controls and Procedures. 55

– Other Information

Part II – Other Information 57

Legal Proceedings

Item 1. Legal Proceedings. 57

Risk Factors

Item 1A. Risk Factors. 57

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 57

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 57

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 57

Other Information

Item 5. Other Information. 57

Exhibits

Item 6. Exhibits. 57 Exhibit Index 58

Signatures

Signatures 60 References in this Quarterly Report on Form 10-Q to " the Company , " "our Company," "we," "us," "our" and "Boston Omaha" refer to Boston Omaha Corporation and its consolidated subsidiaries, unless otherwise noted. 2 Table of Contents BOSTON OMAHA CORPORATION and SUBSIDIARIES Condensed Consolidated Financial Statements Unaudited For the Six Months Ended June 30, 2025 and 2024 3 Table of Contents BOSTON OMAHA CORPORATION and SUBSIDIARIES Condensed Consolidated Balance Sheets Unaudited ASSETS June 30, December 31, 2025 2024 Current Assets: Cash and cash equivalents $ 29,694,785 $ 28,289,712 Cash held by BOAM funds and other 2,316,011 2,933,723 Accounts receivable, net 13,350,535 12,433,587 Interest receivable 55,021 83,613 Short-term investments 38,925,193 44,953,337 Marketable equity securities 886,831 2,393,260 U. S. Treasury securities 18,353,150 10,976,969 Funds held as collateral assets 14,829,340 9,973,991 Prepaid expenses 5,923,862 5,409,209 Total Current Assets 124,334,728 117,447,401 Property and Equipment, net 167,471,673 161,593,673 Other Assets: Goodwill 182,380,136 182,380,136 Intangible assets, net 54,782,151 58,332,625 Investments 66,592,522 74,080,331 Investments in unconsolidated affiliates 72,165,396 72,435,867 Deferred policy acquisition costs 2,545,510 2,161,721 Right of use assets 60,187,216 59,742,166 Other 170,015 171,809 Total Other Assets 438,822,946 449,304,655 Total Assets $ 730,629,347 $ 728,345,729 See accompanying notes to the unaudited condensed consolidated financial statements. 4 Table of Contents BOSTON OMAHA CORPORATION and SUBSIDIARIES Condensed Consolidated Balance Sheets (Continued) Unaudited LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY June 30, December 31, 2025 2024 Current Liabilities: Accounts payable and accrued expenses $ 20,609,094 $ 22,251,493 Short-te

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