Boston Omaha Corporation Reports Q2 2025 Revenue Growth Despite Net Loss

Boston Omaha Corporation reported its financial results for the second quarter and first half of fiscal 2025, revealing total revenues of $28.2 million for the quarter, a 4.1% increase from $27.1 million in the same period last year. For the first six months, revenues reached $55.9 million, up 6.3% from $52.6 million in the prior year. The growth was driven by a 17.5% increase in premiums earned from its insurance subsidiary, General Indemnity Group, and a 4.6% rise in broadband service revenues, which reflected subscriber growth. However, billboard rental revenues remained flat, indicating stable occupancy rates across various markets.

The company reported a net loss of $4.6 million for the second quarter, compared to a loss of $2.0 million in the same quarter of 2024. The net loss attributable to common stockholders was $2.3 million, or $0.07 per share, consistent with the previous year. For the first half of 2025, the net loss attributable to common stockholders was $2.99 million, a decrease from $5.04 million in the first half of 2024. The increase in losses was attributed to higher loss and loss adjustment expenses in the insurance segment, which rose significantly due to increased claim payments.

Operationally, Boston Omaha's employee costs decreased to $8.7 million in the second quarter from $11.8 million in the prior year, primarily due to one-time severance payments made in the previous year. The company also reported a reduction in professional fees, which fell from $1.7 million to $0.7 million, reflecting lower legal costs associated with executive transitions. The total costs and expenses for the second quarter were $29.0 million, down from $31.5 million in the same quarter last year, resulting in a decrease in the total costs as a percentage of revenues from 116.2% to 102.9%.

In terms of strategic developments, Boston Omaha continues to focus on expanding its billboard and broadband operations, with approximately 3,950 billboards and 48,400 broadband customers as of June 30, 2025. The company has also been winding down its asset management operations, which has led to significant cost-cutting measures. The firm has approximately $29.7 million in unrestricted cash and $18.4 million in short-term U.S. Treasury securities, positioning it well for future acquisitions and investments. The company has authorized a share repurchase program of up to $20 million, which is set to run until September 2025, although no shares were repurchased in the first half of 2025 due to blackout periods.

Looking ahead, Boston Omaha aims to continue its growth trajectory by pursuing additional acquisitions in the billboard and broadband sectors while managing its existing operations efficiently. The company remains optimistic about its ability to generate positive cash flows and is prepared to explore various financing options to support its strategic initiatives.