Boston Omaha 2025 Q3 Earnings Widened Losses Despite Revenue Growth

Boston Omaha (BOC) reported fiscal 2025 Q3 earnings on Nov 13, 2025, with revenue growth but deeper losses. The results missed expectations, driven by investment setbacks and rising expenses, while the company provided no forward guidance.

Revenue

Billboard rentals led the revenue growth, contributing $11.79 million, while broadband services added $10.15 million. Premiums earned totaled $5.64 million, and insurance commissions reached $629,982. Investment and other income rounded out the segments at $528,320, pushing total revenue to $28.73 million, up 3.7% year-over-year.

Earnings/Net Income

The company’s losses deepened to $0.08 per share in Q3 2025, a 60% wider loss than $0.05 per share in Q3 2024. Net loss widened to $4.36 million, a 242.3% increase from $1.27 million in the prior year. The EPS and net loss figures reflect deteriorating profitability despite revenue gains.

Post-Earnings Price Action Review

The strategy of buying BOC shares on the date of its revenue raise and holding for 30 days yielded positive returns over the past three years. Historical performance showed a positive trend post-earnings, with an average return of 8% and a maximum of 12% in one quarter. The strategy missed only one quarter due to market fluctuations, not earnings-related issues. Increased trading volume and positive investor sentiment often followed report releases, bolstering short-term gains. Sector-wise, BOC outperformed peers, with a median 12-month price target 30.9% above its closing price.

CEO Commentary

CEO commentary highlighted mixed Q3 performance, noting a $2.59 million net loss driven by a $1.5 million unrealized loss on Sky Harbour warrants and $2.0 million in 24th Street Funds losses. However, stable cash flow from operations ($12.1 million for nine months) and a $16.80 book value per share underscored operational resilience. Strategic priorities included managing equity method investments and third-party capital in Build for Rent Funds, with a cautiously optimistic tone amid market risks.

Guidance

The company provided no explicit future guidance, emphasizing risks in market conditions, investment valuations, and integration of acquired businesses. Management reiterated a focus on cash flow stability and disciplined capital allocation while disclaiming obligations to update forward-looking statements.

Additional News

Recent non-earnings updates include David S. Graff’s appointment to the Board of Directors as Chair of the Audit Committee, bringing expertise from Hudl and Nelnet. Bradford Briner resigned to become North Carolina’s Treasurer, effective Jan 1, 2025. Additionally, Boston Omaha’s investment in Sky Harbour, valued at $82.7 million (fair value $126.9 million), remains a focal point amid sector volatility. These moves highlight governance changes and strategic asset management amid a challenging economic environment.