Boston Omaha's Q3 Loss Widens on Investment Downturn, Despite Revenue Growth

TL;DR

**BOC's Q3 loss widened significantly due to bad investments, overshadowing modest revenue gains in its core businesses; proceed with caution.**

AI Summary

BOSTON OMAHA Corp (BOC) reported a net loss of $4.36 million for the three months ended September 30, 2025, a significant increase from the $1.27 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss widened to $11.35 million from $6.54 million in 2024. Total revenues increased to $28.73 million for the quarter, up from $27.70 million year-over-year, driven by growth in billboard rentals (up 2.47% to $11.79 million) and broadband services (up 5.04% to $10.15 million). Premiums earned also rose by 3.90% to $5.64 million. However, total costs and expenses increased to $29.79 million for the quarter, up from $28.44 million, primarily due to higher cost of insurance revenues (up 36.31% to $3.49 million) and increased depreciation (up 16.79% to $4.32 million). A substantial 'Other investment loss' of $3.23 million for the quarter, compared to an $8.43 million gain in the prior year, significantly impacted profitability. The company's cash and cash equivalents increased to $37.05 million as of September 30, 2025, from $28.29 million at December 31, 2024.

Why It Matters

Boston Omaha's widening net loss, despite revenue growth in its core billboard and broadband segments, signals a challenge in overall profitability, particularly for investors focused on bottom-line performance. The significant 'Other investment loss' of $3.23 million in Q3 2025, a stark reversal from an $8.43 million gain in Q3 2024, highlights the volatility and impact of its investment portfolio on financial results. This could raise concerns about the company's capital allocation strategy and its ability to generate consistent returns, especially when competing with more focused industry players in outdoor advertising and broadband. Employees and customers might see continued investment in core operations, but the broader market may view BOC as a more speculative investment given its diverse, yet currently underperforming, portfolio.

Risk Assessment

Risk Level: high — The company reported a net loss of $4.36 million for the three months ended September 30, 2025, a 243% increase from the $1.27 million net loss in the prior year. This was significantly impacted by an 'Other investment loss' of $3.23 million in Q3 2025, a substantial negative swing from an $8.43 million gain in Q3 2024, indicating high volatility and risk in its investment strategy.

Analyst Insight

Investors should scrutinize Boston Omaha's investment portfolio and its impact on overall profitability, as core business growth is being offset by significant investment losses. Consider a 'hold' position until there's clearer evidence of a stabilized or improved investment performance, or a strategic shift away from volatile investment activities.

Financial Highlights

debt To Equity

N/A

revenue

$28.73M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$4.36M

eps

N/A

gross Margin

N/A

cash Position

$37.05M

revenue Growth

+3.72%

Revenue Breakdown

Key Numbers

• $4.36M — Net Loss (Q3 2025) (Increased from $1.27M in Q3 2024, a 243% increase)
• $11.35M — Net Loss (YTD Sep 2025) (Increased from $6.54M in YTD Sep 2024)
• $28.73M — Total Revenues (Q3 2025) (Up from $27.70M in Q3 2024, a 3.72% increase)
• $11.79M — Billboard Rentals (Q3 2025) (Up from $11.50M in Q3 2024, a 2.47% increase)
• $10.15M — Broadband Services (Q3 2025) (Up from $9.66M in Q3 2024, a 5.04% increase)
• $3.23M — Other Investment Loss (Q3 2025) (Compared to an $8.43M gain in Q3 2024, a significant negative swing)
• $3.49M — Cost of Insurance Revenues (Q3 2025) (Up from $2.56M in Q3 2024, a 36.31% increase)
• $4.32M — Depreciation (Q3 2025) (Up from $3.70M in Q3 2024, a 16.79% increase)
• $37.05M — Cash and Cash Equivalents (Sep 30, 2025) (Increased from $28.29M at Dec 31, 2024)
• 30,872,876 — Class A Common Shares Outstanding (As of November 12, 2025)

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
• Sky Harbour Group Corporation (company) — Company resulting from Yellowstone SPAC business combination
• Yellowstone Acquisition Company (company) — Special purpose acquisition company (SPAC)
• SEC (regulator) — Securities and Exchange Commission
• New York Stock Exchange (regulator) — Exchange where Class A common stock is registered
• November 12, 2025 (date) — Latest practicable date for shares outstanding

FAQ

Risk Factors

• Deteriorating Profitability [high — financial]: The company reported a net loss of $4.36 million for Q3 2025, a significant increase from $1.27 million in Q3 2024. This widening loss is exacerbated by a substantial 'Other investment loss' of $3.23 million in the current quarter, contrasting with an $8.43 million gain in the prior year.
• Rising Operating Costs [medium — financial]: Total costs and expenses increased to $29.79 million in Q3 2025 from $28.44 million in Q3 2024. Key drivers include a 36.31% increase in the cost of insurance revenues to $3.49 million and a 16.79% rise in depreciation to $4.32 million.
• Investment Performance Volatility [medium — market]: The significant swing from an $8.43 million investment gain in Q3 2024 to a $3.23 million loss in Q3 2025 highlights the volatility and impact of investment performance on overall profitability.
• Dependence on Key Segments [medium — operational]: While billboard rentals and broadband services are growing, the company's overall financial health is sensitive to the performance of these segments and the insurance premiums earned.

Industry Context

Boston Omaha Corp operates in diverse sectors including outdoor advertising (billboards), broadband internet services, and insurance. The billboard industry is influenced by local economic conditions and advertising spend. The broadband sector faces competition from larger telecommunications providers. The insurance segment is subject to regulatory oversight and claims volatility.

Regulatory Implications

The insurance segment is subject to state-specific regulations regarding solvency, pricing, and claims handling. Changes in insurance regulations could impact BOC's operations and profitability in this segment. The broadband services may also be subject to telecommunications regulations.

What Investors Should Do

1. Monitor the trend of increasing net losses and investigate the drivers behind the 'Other investment loss' to assess its sustainability and potential for recovery.
2. Analyze the cost structure, particularly the significant increase in 'Cost of Insurance Revenues' and 'Depreciation', to understand if these are one-time events or indicative of ongoing operational challenges.
3. Evaluate the company's cash position ($37.05 million) against its operating losses to determine its runway and potential need for future financing.

Glossary

Premiums Earned

The portion of insurance premiums that relates to the coverage provided during a specific period. (Represents revenue generated from the insurance segment of BOC's business.)

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life. (An increase in depreciation suggests increased capital expenditures or assets nearing the end of their useful lives, impacting profitability.)

Cash and Cash Equivalents

Highly liquid investments with maturities of three months or less at the time of purchase. (Indicates the company's short-term liquidity and ability to meet immediate obligations.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Boston Omaha Corp experienced a significant deterioration in profitability, with net losses widening from $1.27 million to $4.36 million in the third quarter. While total revenues saw a modest increase of 3.72% to $28.73 million, driven by growth in billboard rentals and broadband services, this was outpaced by a rise in total costs and expenses. The primary detractor from profitability was a substantial swing from an investment gain to an investment loss, alongside increased costs in insurance revenues and depreciation.

Key Financial Figures

• $0.001 — hich Registered Class A common stock, $0.001 par value per share BOC The New Yor

Filing Documents

• bomn20250930_10q.htm (10-Q) — 3076KB
• ex_860356.htm (EX-31.1) — 14KB
• ex_860357.htm (EX-31.2) — 14KB
• ex_860358.htm (EX-32.1) — 5KB
• ex_860359.htm (EX-32.2) — 6KB
• 0001437749-25-034820.txt ( ) — 11727KB
• boc-20250930.xsd (EX-101.SCH) — 75KB
• boc-20250930_cal.xml (EX-101.CAL) — 64KB
• boc-20250930_def.xml (EX-101.DEF) — 503KB
• boc-20250930_lab.xml (EX-101.LAB) — 454KB
• boc-20250930_pre.xml (EX-101.PRE) — 547KB
• bomn20250930_10q_htm.xml (XML) — 2203KB

– Financial Information

Part I – Financial Information 4

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited). 4 Condensed Consolidated Balance Sheets – September 30, 2025 and December 31, 2024 4 Condensed Consolidated Statements of Operations – Three and Nine Months Ended September 30, 2025 and 2024 6 Condensed Consolidated Statements of Changes in Stockholders' Equity – Three and Nine Months Ended September 30, 2025 and 2024 7 Condensed Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2025 and September 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 Nine Months Ended September 30, 2025 and 2024 3 Table of Contents BOSTON OMAHA CORPORATION and SUBSIDIARIES Condensed Consolidated Balance Sheets Unaudited ASSETS September 30, December 31, 2025 2024 Current Assets: Cash and cash equivalents $ 37,051,629 $ 28,289,712 Cash held by BOAM funds and other 5,558,223 2,933,723 Accounts receivable, net 14,886,519 12,433,587 Interest receivable 20,592 83,613 Short-term investments 30,543,123 44,953,337 Marketable equity securities 997,447 2,393,260 U. S. Treasury securities 18,154,826 10,976,969 Funds held as collateral assets 13,619,149 9,973,991 Prepaid expenses 5,294,247 5,409,209 Total Current Assets 126,125,755 117,447,401 Property and Equipment, net 168,306,945 161,593,673 Other Assets: Goodwill 182,380,136 182,380,136 Intangible assets, net 53,112,671 58,332,625 Investments 57,643,117 74,080,331 Investments in unconsolidated affiliates 71,528,235 72,435,867 Deferred policy acquisition costs 3,046,793 2,161,721 Right of use assets 59,038,370 59,742,166 Other 172,089 171,809 Total Other Assets 426,921,411 449,304,655 Total Assets $ 721,354,111 $ 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 AND STOCKHOLDERS' EQUITY September 30, December 31, 2025 2024 Current Liabilities: Accounts payable and accrued expenses $ 21,526,176 $ 22,251,493 Short-term payables for busin

View Full Filing

View this 10-Q filing on SEC EDGAR