Boston Omaha Corporation reported third‑quarter 2025 revenue of $28.73 million, a 3.7% year‑over‑year increase that reflects stronger demand in its billboard and broadband segments. The billboard unit grew 4.2% to $12.1 million, while broadband revenue rose 2.8% to $9.4 million, offsetting a modest decline in the insurance segment, which fell 1.5% to $3.6 million. The company’s fiber‑to‑the‑home expansion continued to drive incremental revenue, with the Fiber Fast Homes and Go Fiber subsidiaries reporting a combined 5.6% increase in subscription revenue.
Operating income fell to a loss of $2.59 million, a narrowing from the $1.60 million loss reported in the same quarter last year. The loss was driven by a $1.2 million increase in investment‑related expenses, largely from unrealized losses on Sky Harbour warrants and 24th Street Funds. Net loss widened to $2.59 million, compared with a $1.6 million loss in Q3 2024, and diluted earnings per share slipped to –$0.08, missing the consensus estimate of –$0.03 by $0.05. The miss reflects the combined impact of higher operating costs and the investment losses that were not fully offset by revenue growth.
Segment analysis shows that billboard rentals remain the company’s most profitable line, with gross margins above 30%, while broadband margins contracted from 28% to 26% due to increased network‑upgrade costs. The insurance unit’s margin fell to 12% from 14% as underwriting losses rose in the general indemnity portfolio. The fiber‑to‑the‑home rollout, while generating modest revenue, is capital‑intensive and has contributed to the overall margin compression.
Management emphasized that the company is prioritizing long‑term growth through its fiber network, stating that “the expansion positions us to capture underserved markets and generate higher‑margin traffic in the coming years.” However, the CFO cautioned that the current investment losses and higher operating expenses will continue to weigh on profitability until the network reaches full scale. No forward guidance was provided, reflecting uncertainty around reinsurance counterparties and broader market conditions.
Analysts noted that the results fell short of expectations, with revenue missing consensus by $0.118 million and EPS missing by $0.05. The miss, combined with the widening net loss and lack of guidance, prompted several analysts to downgrade the stock to a “sell” rating, citing valuation concerns and the risk of continued investment losses. The company’s market reaction will likely focus on its ability to control costs while scaling the fiber network and managing investment risk.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.