Boston Omaha 2025 Q2 Earnings Widening Net Loss Despite Modest Revenue Growth

Boston Omaha (BOC) reported mixed results in its Q2 2025 earnings, with revenue rising slightly but the net loss widening significantly. The company did not provide specific guidance for future performance. Investors remain cautious amid a challenging market and volatile investment portfolio.

Boston Omaha Corporation reported fiscal Q2 2025 earnings on August 13, 2025, with revenue showing modest growth despite a significant increase in its net loss.

The company’s total revenue for the quarter rose by 4.1% year-over-year to $28.20 million. This growth was driven by steady performance across its key revenue-generating businesses, including Billboard Rentals, Broadband Services, and Insurance operations.

Billboard Rentals, one of BOC’s core segments, contributed $11.44 million to total revenues, while Broadband Services added $10.23 million. The Insurance segment generated $5.57 million in premiums earned, with additional income from Insurance commissions standing at $448,192. Other income streams, including Investment and other income, totaled $516,622.

Boston Omaha maintained a stable EPS of $-0.07 for the quarter, in line with the same period in 2024. However, the company’s net loss significantly widened to $-4.57 million in Q2 2025, a 126.5% increase from the $-2.02 million loss recorded in the same period the previous year. This deterioration was largely attributed to a $10.7 million unrealized loss on Sky Harbour warrants and $2.6 million in losses from the 24th Street Funds. These were partially offset by $6.1 million in income from unconsolidated affiliates and $2.9 million in realized gains from Sky Harbour stock.

The stock price of Boston Omaha edged up by 0.51% on the latest trading day, rose 2.16% over the most recent full trading week, but declined 2.35% month-to-date. A review of post-earnings price action revealed that a strategy of buying BOC shares 30 days after the revenue equalled quarter-over-quarter performance on the financial report release date over the past three years delivered poor returns. This strategy yielded a CAGR of -21.48%, with a total return of -50.38%, significantly underperforming the benchmark return of 46.32%. The strategy experienced a maximum drawdown of 0.00% and a Sharpe ratio of -0.68, indicating it avoided losses but failed to capitalize on gains relative to the market.

CEO commentary highlighted the modest revenue growth across the company’s core businesses—Billboard Rentals, Broadband Services, and Insurance—with total revenues of $28.2 million in Q2 2025. Despite challenges, the company noted offsetting benefits from income from unconsolidated affiliates and realized gains. Leadership remains cautiously optimistic, citing stable cash flow from operations and a strong equity position of $555.3 million as of June 30, 2025.

Looking ahead, the CEO emphasized the importance of monitoring unrealized gains and losses from Sky Harbour and other investments. While no specific revenue or EPS guidance was provided, the company reiterated its focus on cash flow stability, with $7.1 million in operating cash flow for the first half of 2025. Management expects to continue leveraging its equity method accounting for Sky Harbour and maintaining a disciplined approach to capital allocation in its Build for Rent Fund and 24th Street commercial real estate ventures.

Additional News: Nigeria Reports Major Policy and Legal Developments

In Nigeria, recent developments highlight a mix of political, economic, and legal activity. The federal government announced plans to unlock $150 billion in dormant land capital to boost economic activity, signaling a major shift in land policy. At the same time, Lagos state introduced a new tenancy bill aimed at reducing estate agent fees to 5%, potentially improving affordability for tenants.

On the legal front, a Lagos woman was remanded in custody over allegations of falsely declaring foreign currency. The court’s decision underscores increased scrutiny over currency compliance in Nigeria. Additionally, six suspected cultists were arrested during a raid in Anambra, and four individuals were sentenced to seven years in prison for vandalizing EEDC property.

In the political sphere, by-election tensions continued, with the Labor Party raising concerns over the absence of a candidate’s name on the INEC list. Meanwhile, in Katsina State, Governor Dikko Radda is set to begin a three-week medical leave starting August 18. The EFCC also faced scrutiny for its sudden investigation into a prominent political figure, with some calling it politically motivated.

Economic challenges persist, with the Accountant-General halting fund requests from ministries over budgetary concerns. In the energy sector, Dangote Refinery restored marketers amid a distribution controversy, reflecting growing pressure to ensure supply chain stability.