BOSTON OMAHA Corp Annual Report - How They Did This Year

I’ve put together a guide to help you make sense of Boston Omaha’s latest annual report. Think of this as a plain-English breakdown of how the company is doing, what they’re up to, and what you should watch as an investor.

1. What does this company do?

Boston Omaha is a "conglomerate," which means they own a collection of different, steady businesses. They focus on four main areas:

• Billboard Rentals: Operating as Link Media, they manage about 7,500 advertising faces across the Southeast and Midwest. This brought in $69.7 million in 2025.
• Broadband Services: They provide high-speed fiber internet to rural communities, serving over 18,000 subscribers.
• Insurance: They manage specialized "surety" insurance—bonds that act as guarantees for businesses—through General Indemnity Group, focusing on niche markets like construction.
• Investments: They hold stakes in other companies, most notably a 15% interest in Sky Harbour Group (NYSE: SKYH), a developer of private aviation hangars, valued at about $150 million.

2. The Financial Picture

Boston Omaha is currently in a "growth phase," prioritizing infrastructure development over immediate bottom-line profit.

• The Results: For 2025, the company reported a $3.9 million loss, an improvement from their $8.5 million loss in 2024.
• Revenue Growth: Total revenue reached $112.4 million in 2025, up from $98.2 million the year before, driven largely by their expanding broadband business.

3. Major Wins and Changes

• Buying Back Shares: In late 2025, the company initiated a program to buy back up to $30 million of its own stock. They spent $5.8 million to buy back 444,753 shares at an average price of $13.04. At year-end, the company’s book value was approximately $18.50 per share.
• Simplified Structure: They now own 100% of their broadband subsidiaries, ensuring they retain all generated profits. Additionally, Adam Peterson now serves as the sole CEO to streamline decision-making.

4. How They Fund Their Growth

The company utilizes a mix of debt and government support to finance its expansion:

• Debt Management: They carry about $48.8 million in long-term debt, primarily tied to specific units like Link Media. This structure isolates the parent company from the risks of individual business units.
• Government Grants: They are actively securing federal funding for rural internet expansion, recently landing about $37 million in grants and low-interest loans to offset the high costs of laying fiber.

5. Key Risks

• The "Build-Out" Trap: With over $45 million spent on fiber networks in 2025, the company’s success depends on achieving high customer adoption rates in these new markets to cover debt costs.
• Integration Challenges: A core part of their strategy involves acquiring other companies, which carries inherent operational complexity and management demands.
• Competitive Hurdles: In the broadband space, the company faces potential competition from larger telecommunications providers who may upgrade their own networks or lower prices to defend their market share.

6. The Bottom Line

Boston Omaha is playing the long game, shifting their focus from managing funds for others to owning and operating infrastructure. They are investing heavily in internet networks, supported by federal grants. If you are considering an investment, you are betting on management’s ability to navigate competition and convert these capital-intensive projects into a steady, long-term stream of cash. To track their progress, keep a close eye on their broadband subscriber growth and billboard occupancy rates.