BOC

Boston Omaha is a decentralized holding company — billboards (~3,900 structures, ~7,500 faces), rural fiber/fixed-wireless broadband (~49,500 customers, 48,300 fiber passings), surety insurance (UCS, all 50 states), plus minority stakes in commercial real estate (30% of Logic), an auto-lending bank, and private-aviation hangars. The top line is compounding steadily — revenue up from $57M (FY2021) to $114M (FY2025), a clean four-year climb, with FY2025 +5.6% YoY and a rich 65.8% gross margin. The balance sheet is the real anchor: $516M of equity against just $177M of liabilities (0.34x), $48.8M total debt, and $713M of assets. At a $474M market cap the stock trades at roughly 0.9x book — you are buying the equity for less than its stated value, which is the core of the bull case.

The problem is that the reported business does not yet earn its keep. FY2025 flipped to a -$12.4M net loss (-$0.40 diluted EPS) and a -$3.4% operating margin; net income has now been negative or negligible for three straight years (-$7.0M in 2023, -$1.3M in 2024, -$12.4M in 2025) after the $52.7M FY2021 print that was largely non-operating gains. Broadband is the culprit: fiber is a capital sink — FY2025 capex of $27.9M exceeded operating cash flow of $17.9M, so the consolidated entity is burning cash to build passings that won't season into profit for years. D&A (~$19.6M) alone swamps the -$3.9M operating line, meaning the losses are heavily non-cash, but the growth math still consumes capital. ROE is -2.4%.