OMCC's Net Loss Widens Q3, But Half-Year Loss Narrows on Amplex Growth

Ticker: OMCC · Form: 10-Q · Filed: Nov 14, 2025 · CIK: 1000045

Sentiment: mixed

Topics: Broadband, Internet Services, Acquisition, Net Loss, Capital Expenditure, Debt Financing, Telecommunications

Related Tickers: OMCC

TL;DR

**OMCC is burning cash to build out its broadband play, but the Q3 loss widening is a red flag for short-term profitability despite the long-term fiber growth story.**

AI Summary

OLD MARKET CAPITAL Corp (OMCC) reported a net loss of $747 thousand for the three months ended September 30, 2025, an increase from a net loss of $404 thousand in the same period last year. For the six months ended September 30, 2025, the net loss was $1.467 million, a significant improvement from a net loss of $3.917 million in the prior year. Total revenue for the three months increased to $3.159 million from $2.958 million, driven by fiber internet services revenue growing from $773 thousand to $1.016 million. However, wireless internet services revenue decreased from $1.764 million to $1.666 million. Operating expenses saw a slight decrease to $4.122 million from $4.221 million for the three-month period, primarily due to a reduction in general and administrative expenses from $2.811 million to $2.208 million. The company's total assets increased to $81.068 million as of September 30, 2025, from $77.672 million at March 31, 2025, largely due to an increase in property, plant, and equipment, net, from $30.945 million to $39.677 million. Long-term debt also significantly increased from $759 thousand to $3.348 million, partly due to proceeds from a RUS Reconnect Loan of $2.422 million. OMCC's ownership in Amplex Holdings increased to 66.4% through an additional $4.5 million investment in July 2025.

Why It Matters

OMCC's strategic pivot from consumer finance to broadband services via the Amplex acquisition is clearly underway, but the Q3 net loss widening could concern investors looking for immediate profitability. The significant increase in property, plant, and equipment, coupled with new debt from the RUS Reconnect Loan, indicates substantial investment in infrastructure for Amplex, which is crucial for future growth in the competitive broadband market. For customers in Northwest and North Central Ohio, this investment could mean improved fiber internet services. Employees of Amplex may see increased job security and growth opportunities as OMCC expands its broadband footprint. The competitive landscape, particularly against established telecom providers, will be a key factor in whether these investments translate into sustainable market share and profitability.

Risk Assessment

Risk Level: medium — The company reported a net loss of $747 thousand for the three months ended September 30, 2025, and a net loss of $1.467 million for the six months ended September 30, 2025. While the six-month loss improved from $3.917 million in the prior year, the Q3 widening of the net loss, coupled with a significant increase in long-term debt from $759 thousand to $3.348 million, indicates ongoing financial risk as the company invests heavily in its new broadband operations.

Analyst Insight

Investors should closely monitor OMCC's capital expenditure efficiency and the pace of subscriber growth for Amplex. Given the increased debt and continued losses, a 'wait and see' approach is prudent to assess if the significant investments in property, plant, and equipment (up to $39.677 million from $30.945 million) translate into sustained revenue growth and reduced net losses in subsequent quarters.

Financial Highlights

debt To Equity
0.28
revenue
$3,159,000
operating Margin
-29.8%
total Assets
$81,068,000
total Debt
$3,463,000
net Income
-$747,000
eps
N/A
gross Margin
N/A
cash Position
$18,940,000
revenue Growth
+6.8%

Revenue Breakdown

SegmentRevenueGrowth
Fiber internet services$1,016,000+31.4%
Wireless internet services$1,666,000-5.6%
Other revenue$477,000+13.3%

Key Numbers

Key Players & Entities

FAQ

What were Old Market Capital Corporation's revenues for the three months ended September 30, 2025?

Old Market Capital Corporation reported total revenue of $3.159 million for the three months ended September 30, 2025. This was an increase from $2.958 million in the same period of 2024, primarily driven by fiber internet services revenue growing to $1.016 million.

How did Old Market Capital Corporation's net loss change in Q3 2025 compared to the previous year?

For the three months ended September 30, 2025, Old Market Capital Corporation's net loss attributable to common shareholders was $752 thousand, which is a widening from a net loss of $681 thousand in the same period of 2024.

What is the current ownership percentage of Old Market Capital Corporation in Amplex Holdings?

As of September 30, 2025, Old Market Capital Corporation's indirect ownership in Amplex Holdings increased to 66.4% of the issued and outstanding common shares. This was achieved through an additional $4.5 million investment in July 2025.

What are the key risks for Old Market Capital Corporation based on the 10-Q filing?

Key risks include continued net losses, with a $747 thousand net loss in Q3 2025, and a significant increase in long-term debt to $3.348 million. The company is heavily investing in its new broadband operations, which carries execution risk in a competitive market.

How much did Old Market Capital Corporation invest in property, plant, and equipment during the six months ended September 30, 2025?

Old Market Capital Corporation made payments for property, plant, and equipment totaling $8.502 million during the six months ended September 30, 2025. This is a substantial increase from $3.940 million in the same period of 2024.

What was the impact of discontinued operations on OMCC's net income?

Total income from discontinued operations, net of tax, was $50 thousand for the three months ended September 30, 2025, and $88 thousand for the six months ended September 30, 2025. This is a significant decrease from $801 thousand and $2.860 million in the respective prior-year periods, reflecting the dissolution of NDS and NFI.

What is the strategic outlook for Old Market Capital Corporation?

OMCC is strategically focused on its broadband internet, VOIP, and video services through its majority-owned subsidiary Amplex. The company is investing heavily in fiber infrastructure, as evidenced by the increase in property, plant, and equipment and the RUS Reconnect Loan, aiming to expand its customer base in Ohio.

How many broadband customers does Amplex have as of September 30, 2025?

As of September 30, 2025, Amplex, Old Market Capital Corporation's subsidiary, had approximately 13,400 broadband customers, with 5,400 of those being fiber subscribers.

What was the change in cash and cash equivalents for Old Market Capital Corporation?

Cash and cash equivalents for Old Market Capital Corporation decreased by $5.052 million during the six months ended September 30, 2025, resulting in a balance of $18.940 million at period end. This contrasts with an increase of $10.482 million in the prior year.

What is the significance of the RUS Reconnect Loan for Old Market Capital Corporation?

The RUS Reconnect Loan, from which Old Market Capital Corporation received $2.422 million in proceeds, is significant as it provides capital specifically for Amplex to complete a project. This loan contributes to the increase in long-term debt and supports the company's strategic investment in broadband infrastructure.

Risk Factors

Industry Context

The telecommunications industry, particularly broadband services, is characterized by ongoing infrastructure investment and increasing demand for high-speed internet, especially fiber. Competition is intense, with companies vying for market share through service expansion and technological upgrades. The shift towards fiber optics is a major trend, offering higher bandwidth and reliability compared to traditional wireless or copper-based services.

Regulatory Implications

The company's reliance on loans like the RUS Reconnect Loan suggests engagement with government programs and potential regulatory oversight related to rural broadband deployment. Changes in ownership percentages of subsidiaries like Amplex Holdings may also trigger reporting requirements. Compliance with service quality and coverage mandates associated with such funding is crucial.

What Investors Should Do

  1. Monitor the trend of increasing net losses
  2. Analyze the profitability of fiber vs. wireless services
  3. Assess the impact of increased debt and capital expenditures
  4. Evaluate the strategic importance and performance of Amplex Holdings

Key Dates

Glossary

Property, plant, and equipment, net
Tangible assets used in a company's operations that are expected to be used for more than one year, shown net of accumulated depreciation. (Significant increase from $30.945M to $39.677M indicates substantial capital investment in infrastructure.)
Redeemable non-controlling interest
Represents the equity interest of minority shareholders in a subsidiary that has redemption features, meaning it can be repurchased by the parent company. (Decreased from $13.880M to $12.113M, suggesting potential buybacks or changes in ownership structure of subsidiaries.)
RUS Reconnect Loan
A loan program, likely from the Rural Utilities Service, aimed at funding broadband deployment in rural areas. (A $2.422 million portion of this loan contributed to the significant increase in OMCC's long-term debt.)
Amplex Holdings
A subsidiary or associated company in which OMCC has increased its ownership stake. (OMCC's increased investment to 66.4% highlights its strategic importance and potential for consolidated financial impact.)
Treasury stock
Shares of a company's own stock that have been repurchased from the open market. (The large negative balance ($81.927M) indicates significant share buybacks or prior repurchases, impacting total shareholders' equity.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, OMCC shows mixed results. Total revenue for the three months ended September 30, 2025, increased by 6.8% to $3.159 million, driven by a significant 31.4% surge in fiber internet services revenue. However, this top-line growth was overshadowed by a widening net loss, which increased from $404,000 to $747,000 in the same quarter. Operating expenses saw a reduction, primarily in G&A, but depreciation and amortization expenses more than doubled, contributing to the increased net loss. Total assets grew, largely due to capital investments in property, plant, and equipment, while long-term debt also saw a substantial increase.

Filing Stats: 4,564 words · 18 min read · ~15 pages · Grade level 16.5 · Accepted 2025-11-14 16:24:50

Filing Documents

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets as of September 30, 2025 and March 31, 2025 (Unaudited) 3 Condensed Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2025 and 2024 (Unaudited) 4 Condensed Consolidated Statements of Redeemable Non-Controlling Interest and Shareholders' Equity for the Three and Six Months Ended September 30, 2025 and 2024 (Unaudited) 6 Condensed Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2025 and 2024 (Unaudited) 7 Notes to the Condensed Consolidated Financial Statements 8 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 32 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 39 Part II Other Information 41 Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 41 Item 3. Defaults Upon Senior Securities 41 Item 4. Mine Safety Disclosures 41 Item 5. Other Information 41 Item 6. Exhibits 42 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Old Market Capital Corporation Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except par value) September 30, 2025 March 31, 2025 Assets Current assets: Cash and cash equivalents $ 18,940 $ 24,516 Accounts receivable - net of related allowance for credit losses of $ 1 and $ 2 , as of September 30, 2025 and March 31, 2025, respectively 142 109 Materials and supplies 1,176 968 Income taxes receivable 902 902 Prepaid expenses and other current assets 1,385 941 Assets of discontinued operations 12 - Total current assets 22,557 27,436 Operating lease right-of-use assets 2,823 2,963 Property, plant, and equipment, net 39,677 30,945 Intangible assets, net 3,401 3,673 Goodwill 12,280 12,280 Other assets 330 375 Total assets $ 81,068 $ 77,672 Liabilities, redeemable non-controlling interest and shareholders' equity Current liabilities: Accounts payable $ 3,070 $ 1,300 Accrued expenses and other current liabilities 839 588 Operating lease liability - current portion 296 286 Contract liability 639 569 Current portion long-term debt 115 69 Liabilities of discontinued operations - 90 Total current liabilities 4,959 2,902 Deferred income taxes 4,333 4,306 Long-term debt 3,348 759 Operating lease liability 2,538 2,685 Total liabilities 15,178 10,652 Commitments and contingencies (Note 10) Redeemable non-controlling interest 12,113 13,880 Shareholders' equity: Preferred stock, no par value: 5,000 shares authorized; none issued - - Common stock, 50,000 shares authorized, $ 0.01 par value, 12,716 shares issued and 6,755 outstanding at September 30, 2025; no par value, 12,674 shares issued and 6,696 shares outstanding at March 31, 2025 68 67 Treasury stock: 5,961 and 6,020 common shares, at cost, as of September 30, 2025 and March 31, 2025, respectively ( 81,927 ) ( 82,423 ) Additional paid-in capital 43,285 41,645 Retained earnings 9

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing