Boston Omaha Q2 2025 slides: Mixed results as fiber business grows, outdoor ads flat

Introduction & Market Context

Boston Omaha Corporation (NASDAQ:BOC) presented its second quarter 2025 financial results on August 13, 2025, revealing mixed performance across its diverse business segments. The company, which operates in outdoor advertising, broadband services, insurance, and investment management, reported varying growth rates with its fiber business showing momentum while its billboard operations remained stagnant.

Trading at $12.54 as of August 15, 2025, Boston Omaha’s stock sits near the lower end of its 52-week range of $12.27-$16.20. The company’s diversified business model continues to evolve, with particular emphasis on expanding its broadband infrastructure.

Quarterly Performance Highlights

Boston Omaha’s Q2 2025 results demonstrated the company’s varied performance across segments, with notable strength in its broadband operations contrasting with flat performance in outdoor advertising.

Key highlights included Boston Omaha Broadband adding approximately 2,100 new fiber passings and 700 new fiber subscribers during the quarter, while investing $6.6 million in capital expenditures. The segment generated approximately $2.2 million in Adjusted EBITDA.

Link Media Outdoor, the company’s billboard business, reported flat year-over-year revenue growth and a slight decline in Adjusted EBITDA of 2.9% to approximately $4.5 million.

The company’s insurance arm, General Indemnity Group, delivered revenue growth of 12.1% year-over-year despite challenges, while Boston Omaha’s investment in Sky Harbour Group produced mixed results, including an unrealized loss of approximately $10.7 million related to SKYH warrants, offset by equity method income of approximately $6.1 million and a realized gain of approximately $2.9 million on the sale of shares.

Detailed Financial Analysis by Business Segment

Link Media Outdoor

Link Media Outdoor, Boston Omaha’s billboard advertising segment, reported flat revenue growth in Q2 2025, with total revenue of $11.4 million. Despite the stagnant top line, the segment improved its gross margin by 1.5% year-over-year to 67.6%, though net income declined by 11.1% to $1.8 million.

The segment maintained a solid financial position with a Debt to EBITDA ratio of 2.0x. The company’s billboard inventory consisted of 3,950 structures with 7,570 advertising faces, including 107 digital displays. Management noted that reduced advertising spending in specific categories affected overall performance, while increased employee costs also pressured margins. These challenges were partially offset by savings in commission expenses.

Boston Omaha Broadband

The broadband segment showed modest revenue growth of 1.6% year-over-year to $9.6 million in Q2 2025, but demonstrated strong Adjusted EBITDA growth of 16.6% to $3.2 million. The segment’s gross margin improved by 1.9% to 80.9%, though it recorded a small net loss of $0.1 million for the quarter.

Boston Omaha Broadband continued its expansion of fiber infrastructure, maintaining a subscriber base of 30,600 fixed wireless customers and 13,500 fiber subscribers. The segment reported 35,000 fiber passings and a conservative Debt to EBITDA ratio of 0.9x. Year-to-date, the company added approximately 3,200 new fiber passings and 1,100 new fiber subscribers, demonstrating continued momentum in its fiber strategy. Management highlighted reduced employee costs and a continued focus on strategic partnerships as key operational priorities.

Fiber Fast Homes

The company’s Greenfield Fiber New Homes Division, Fiber Fast Homes, demonstrated significant growth with revenue increasing 82.1% year-over-year to $0.6 million. However, the segment is still in investment mode, reporting a net loss of $1.5 million and Adjusted EBITDA of negative $1.0 million.

Fiber Fast Homes reported 4,200 fiber subscribers and 8,400 fiber passings, with a substantial HOA & Joint Venture backlog of 9,400 homes. Year-to-date, the division added approximately 300 new fiber passings and 900 new fiber subscribers, indicating accelerating adoption in new residential developments.

General Indemnity Group

Boston Omaha’s insurance segment reported mixed results, with gross written premiums declining 1.4% year-over-year to $7.9 million, while revenue increased 12.1% to $6.5 million. The segment maintained a loss ratio of 32.2% and reported net income of $0.8 million despite an operating loss of $0.3 million.

The insurance business showed strength in its United Casualty and Surety Insurance Company (UCS) subsidiary, where premiums earned increased 17.5% in Q2 2025. However, this was offset by an increase in the loss ratio and higher employee costs, which increased by $319,000. UCS maintained a solid financial foundation with $49.2 million in surplus and $85.1 million in admitted assets.

Investment Portfolio Overview

Boston Omaha maintains a diverse investment portfolio, with significant positions in several companies and funds. The company’s largest investment remains Sky Harbour Group, with a GAAP value of $84.8 million and a market value of $127.2 million as of June 30, 2025.

Other notable investments include CB&T with a GAAP value of $19.1 million, Boston Omaha Asset Management (BOAM) General Partner at $6.1 million, and the Build for Rent Fund at $4.1 million. The company has received substantial returns from several investments, including $11.2 million in proceeds from Sky Harbour, $10.9 million from the Build for Rent Fund, and $7.8 million from 24th Street Funds.

Balance Sheet and Capital Allocation

Boston Omaha maintained a strong balance sheet as of June 30, 2025, with $22.7 million in unrestricted cash and $18.4 million in U.S. Treasury securities, bringing total cash and securities to $41.1 million.

The company holds significant tax assets, including $91.1 million in net operating loss carry forwards, which could provide tax benefits in future profitable periods. Additionally, Boston Omaha has $18.4 million remaining in its share repurchase authorization, giving the company flexibility for capital allocation.

The company’s diversified business model and strong balance sheet position it to weather varying performance across segments while continuing to invest in growth opportunities, particularly in its promising fiber broadband business.

Full presentation:

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