Boston Omaha Corporation Reports $108.3 Million Revenue with 12.5% Growth, Despite $8.5 Million Net Loss

Boston Omaha Corporation reported a total revenue of $108.3 million for the fiscal year ending December 31, 2024, marking a 12.5% increase from $96.3 million in the previous year. The growth was driven by increases across its business segments, with billboard rentals rising by 5.2% to $45.2 million, broadband services increasing by 10.6% to $39.1 million, and premiums earned from its surety insurance subsidiary surging by 41.8% to $19.8 million. The company also noted a slight increase in insurance commissions, which rose to $2.0 million, contributing to the overall revenue growth.

Despite the revenue increase, Boston Omaha reported a net loss from operations of $8.5 million, a slight improvement from the $8.9 million loss in 2023. The company attributed the ongoing losses to high operational costs, including a significant rise in employee costs, which increased by $5.6 million year-over-year, largely due to one-time severance and bonus payments related to the departure of its former Co-CEO. Total expenses for the year were $116.7 million, up from $105.1 million in 2023, although the percentage of expenses relative to revenue decreased from 109.2% to 107.8%.

Strategically, Boston Omaha has continued to expand its operations through acquisitions and investments. In May 2023, the company acquired 100% of the membership interests in 24th Street Asset Management, enhancing its asset management capabilities. The company also reported a significant investment in Sky Harbour Group Corporation, holding over 12.4 million shares as of December 31, 2024. The firm is winding down its asset management operations to focus on its core businesses, including billboard advertising and broadband services, while also exploring further acquisitions in these sectors.

Operationally, Boston Omaha has seen growth in its broadband customer base, reaching approximately 46,900 customers, with 15,600 of those being fiber customers. The company has also completed 39,800 fiber passings, indicating a strong push towards expanding its broadband infrastructure. The billboard segment operates around 4,000 billboards, with a focus on acquiring additional assets in the U.S. market. As of March 1, 2025, the company employed 452 individuals across its various business lines, reflecting its commitment to maintaining a robust workforce to support its growth initiatives.

Looking ahead, Boston Omaha aims to continue its growth trajectory by leveraging its existing cash reserves, which stood at approximately $28.3 million, and exploring additional financing options for future acquisitions. The company has authorized a share repurchase program of up to $20 million, which it plans to execute over the next year. However, the management cautioned that ongoing operational losses and the need for capital to fund acquisitions may impact its financial flexibility in the future.