Boston Omaha Corporation (BOC): Business Model Canvas [Dec-2025 Updated]

You're digging into Boston Omaha Corporation's (BOC) model, trying to make sense of how this diversified holding company actually makes money across billboards, fiber, and surety insurance. Honestly, it looks complex, but at its core, the strategy is disciplined capital allocation-moving capital to where it generates the best return. For instance, Q3 2025 saw billboard rentals net \$11.8 million while they expanded fiber passings by ~1.1k in the same quarter. Below, I've mapped out their entire nine-block structure, showing exactly where the \$56.2 million in cash and investments sits and how they plan to grow intrinsic value for shareholders.

Boston Omaha Corporation (BOC) - Canvas Business Model: Key Partnerships

You're looking at the external relationships Boston Omaha Corporation relies on to execute its multi-faceted strategy. These aren't just vendors; they are capital sources, co-investors, and site providers that are absolutely critical to the asset management and insurance segments.

The reliance on external capital for the real estate ventures is clear. Noncontrolling interests on the balance sheet reflect this, primarily stemming from the Build for Rent Fund and the 24th Street commercial real estate funds. For instance, as of June 30, 2025, the Noncontrolling Interests were reported at $24,309,975, down from $29,899,944 at the end of 2024. This shows third-party capital flowing into and out of these managed funds.

The Build for Rent (BFR) sector is a key area where these partnerships manifest. Boston Omaha Corporation saw proceeds of $10.9 million from the Build for Rent Fund during the second quarter of fiscal 2025. This segment relies on developers and operators to execute the physical build and management, though specific partner names aren't in the latest public filings.

The investment in Sky Harbour Group Corporation (SKYH) represents a major strategic partnership in private aviation infrastructure. Boston Omaha Corporation accounts for its stake under the equity method. As of September 30, 2025, the investment in SKYH Class A common stock and warrants was valued at $82.7 million on the balance sheet, or $126.9 million if accounted for at fair market price. This stake was reported as 15.4% as of June 30, 2025. The subsidiary, United Casualty & Surety Insurance Company, also holds shares, adding to the total relationship.

For the outdoor advertising business, landowners are the fundamental partners, providing the physical locations for the assets. While the exact number of lease agreements isn't itemized, the revenue generated from these sites gives us a scale indicator. Billboard rentals net revenue for the third quarter of 2025 hit $11.8 million. Furthermore, the total quarterly leases for June 2025 were reported at $5.3Mn. At one point, Boston Omaha Corporation reported having over 7,500+ Billboard Faces.

The surety insurance operations depend on reinsurers to manage and transfer risk exposure. The insurance segment generated $5.6 million in premiums earned for the third quarter of 2025. The insurance subsidiary, General Indemnity Group, LLC, is the vehicle for this. The extent of risk transfer via reinsurance agreements is a key operational detail, though specific reinsurer amounts aren't public.

Here's a quick look at the financial scale tied to these key external relationships as of mid-to-late 2025:

The asset management side, which includes the real estate funds, saw its total Invested Capital reach $581.4Mn for June 2025. The 24th Street Funds also saw $7.8 million in proceeds during Q2 2025.

The operational reliance on these partners can be seen in the cash flow from operations for the nine months ended September 30, 2025, which was $12.1 million, showing the cash generated from the underlying businesses that support these partnerships.

Key aspects of these relationships include:

• The insurance subsidiary, United Casualty & Surety Insurance Company, holds 2,673,831 shares of SKYH as of April 2025.
• The BFR Fund and 24th Street Funds contribute to the Noncontrolling Interests balance.
• Billboard operations are conducted through Link Media Holdings, LLC.
• The surety insurance business is conducted through General Indemnity Group, LLC.

Finance: draft 13-week cash view by Friday.

Boston Omaha Corporation (BOC) - Canvas Business Model: Key Activities

The Key Activities for Boston Omaha Corporation center on deploying capital into its four principal business units: outdoor advertising, broadband telecommunications, surety insurance, and asset management. This involves continuous investment to grow the physical and financial assets underpinning each segment.

The allocation of capital is reflected in the operational scale and revenue generation across these areas. For the three months ended September 30, 2025, total revenue reached $28.73M, with the core operating segments driving the top line, while the asset management segment contributed to net other expenses through fair value adjustments.

Expanding fiber infrastructure remains a major capital deployment focus. While the prompt suggests a specific growth target, the reported data for Q3 2025 shows significant expansion in the broadband segment. The activity involves growing the network footprint to increase recurring service revenue.

• Expanding fiber infrastructure, adding ~1.1k new passings in Q3 2025.
• Total fiber passings reached 36.0k as of September 30, 2025, up from 30.0k previously.
• Fiber subscribers grew to 14.1k in Q3 2025.

The outdoor advertising segment focuses on monetizing its physical assets through selling ad space. This activity is measured by the inventory size and the resulting rental revenue.

• Selling advertising space on 7,570 billboard faces.
• Billboard Rentals revenue for the nine months ended September 30, 2025, was $33,992,908.
• Link Media Outdoor posted a record Adjusted EBITDA of approx. $4.8M in Q3 2025.

Underwriting and issuing surety bonds is managed through General Indemnity Group (GIG). This activity is about managing underwriting risk while growing the premium base through modern digital offerings.

• General Indemnity Group (GIG) saw its loss ratio rise to 25.3% in Q3 2025.
• GIG's total annual revenue for FY 2024 was $23.9M.
• United Casualty & Surety Insurance Company (UCS), a GIG company, is approved by the U.S. Department of the Treasury to bond federal projects.

Managing and winding down certain asset management funds, specifically Boston Omaha Asset Management (BOAM), is a necessary activity that impacts non-operating results. This involves marking investments to market, which creates volatility in GAAP earnings.

• BOAM contributed to $2.0M in fair value losses during the third quarter of fiscal 2025.
• Net Other Expense in Q3 2025 also included an unrealized loss of $1.5M on Sky Harbour warrants.

The company maintained financial flexibility with unrestricted cash plus U.S. Treasuries totaling approx. $41.1M at the end of Q3 2025, though total cash, cash equivalents, and restricted cash was reported at $56.23M for the nine-month period. Finance: draft 13-week cash view by Friday.

Boston Omaha Corporation (BOC) - Canvas Business Model: Key Resources

You're looking at the core assets Boston Omaha Corporation is using to run its diverse set of businesses-billboards, broadband, and insurance. These aren't just line items; they are the engines for their growth strategy.

The liquidity position, as of the end of the third quarter of 2025, shows Boston Omaha Corporation held $56,203,902 in Total Unrestricted Cash and Investments. This figure supports ongoing operations and acquisition efforts across its segments. Also, for tax planning and future profitability offsetting, the company maintains significant Net Operating Loss (NOL) carryforwards of $91.1 million.

The physical assets underpinning the advertising segment are substantial. Boston Omaha Corporation possesses an extensive portfolio of 7,570 billboard faces, which includes 107 digital displays. This physical footprint is a primary driver of the Link Media Outdoor segment's revenue generation.

The telecommunications segment relies on its deployed infrastructure. This includes the Fiber-optic and fixed wireless broadband network infrastructure, which serves multiple rural and suburban markets across states like Massachusetts, Colorado, Wisconsin, Michigan, and Iowa. The scale of this resource is evidenced by subscriber metrics:

• Fiber subscribers reached 14.1k as of Q3 2025.
• Total passings stood at 36.0k as of Q3 2025.
• Broadband adjusted EBITDA was approximately $3.2 million for Q3 2025 across AireBeam, InfoWest, and Utah Broadband.

Another critical asset is the strategic equity holding in Sky Harbour Group Corporation. If accounted for at fair value based on its quoted market price as of September 30, 2025, this investment, which includes Class A common stock and warrants, was valued at $126.9 million. Honestly, this non-core investment represents a significant, albeit mark-to-market sensitive, component of the balance sheet.

Here's a quick look at the balance sheet context around these key resources as of September 30, 2025, compared to the end of the prior year:

Finance: draft 13-week cash view by Friday.

Boston Omaha Corporation (BOC) - Canvas Business Model: Value Propositions

For Advertisers: Broad reach via a large, geographically-diverse billboard inventory

The value proposition centers on the physical assets managed by Link Media Outdoor. As of the second quarter of 2025, the inventory consisted of 3,950 structures offering 7,570 advertising faces, which included 107 digital displays. This segment delivered a gross margin of 67.6% in Q2 2025.

For Broadband Customers: High-speed fiber internet in underserved, rural areas

Boston Omaha Broadband provides service across multiple customer types. As of the second quarter of 2025, the segment maintained a subscriber base of 30,600 fixed wireless customers and 13,500 fiber subscribers. The segment reported 35,000 fiber passings. The Greenfield Fiber New Homes Division, Fiber Fast Homes, reported 4,200 fiber subscribers and a backlog of 9,400 homes. This segment generated revenue of $10,150,921 for the three months ended September 30, 2025.

For Surety Clients: Specialized surety bond products and underwriting expertise

The value here is demonstrated through the financial performance of the insurance operations, specifically Premiums Earned. For the nine months ended September 30, 2025, Premiums Earned totaled $16,765,865.

For Shareholders: Long-term intrinsic value growth through disciplined capital allocation

Shareholders receive value through the company's balance sheet strength and capital deployment flexibility. As of September 30, 2025, book value per share was $16.80, down from $16.99 at December 31, 2024. The company had 30,872,876 shares of Class A common stock and 580,558 shares of Class B common stock outstanding as of September 30, 2025. The Board approved a share repurchase program of up to $30,000,000 of Class A common stock through December 31, 2026.

• Cash inflow from operations for the nine months ended September 30, 2025 was $12.1 million.
• Cash, cash equivalents, and restricted cash totaled $56.2 million at period-end September 30, 2025.
• Unrestricted cash was $22.7 million and U.S. Treasury securities were $18.4 million as of June 30, 2025.

For Investors: Access to a diversified portfolio of uncorrelated, cash-generative assets

Investors gain exposure to a portfolio including four majority-owned businesses and minority investments. The investment in Sky Harbour Group Corporation (SKYH) was valued at $82.7 million on the balance sheet as of September 30, 2025, though its quoted market value was $126.9 million. The company holds significant tax assets, specifically $91.1 million in net operating loss carry forwards.

You're looking at a holding company structure where segment performance directly impacts the investment thesis. Here's the quick math on the nine-month performance:

Finance: draft 13-week cash view by Friday.

Boston Omaha Corporation (BOC) - Canvas Business Model: Customer Relationships

You're looking at how Boston Omaha Corporation (BOC) manages its connections across its diverse customer base, from individual broadband users to large institutional investors. It's a mix of digital efficiency and direct, high-touch engagement depending on the segment.

Automated, self-service billing for broadband subscribers

Boston Omaha Broadband uses systems to handle billing for its growing customer base. As of the second quarter of 2025, the segment maintained a base of 30,600 fixed wireless customers and 13,500 fiber subscribers. For the three months ended September 30, 2025, Broadband Services generated revenue of \$10,150,921, with Adjusted EBITDA growing 23.2% year-over-year to \$3.2 million.

• Fiber passings reported for Q2 2025: 35,000.
• Year-to-date fiber subscriber additions (as of Q2 2025): approximately 1,100.

Direct sales teams for large-scale billboard advertising contracts

The Link Media Outdoor division relies on direct engagement for securing billboard advertising contracts. This is where large-scale, long-term brand awareness campaigns are sold. For the three months ended September 30, 2025, Billboard Rentals, Net revenue reached \$11,788,400. The segment achieved its highest ever Adjusted EBITDA of \$4.8 million in Q3 2025, up 5.6% year-over-year.

The inventory supporting these contracts includes a significant number of advertising faces. As of December 31, 2024, the company operated approximately 7,600 advertising faces across its structures.

Broker-based distribution network for surety insurance products

The surety insurance business, through General Indemnity Group, uses a network of agents and brokers to distribute its products across the country. For the nine months ended September 30, 2025, Premiums Earned totaled \$16,765,865. The Q3 2025 revenue for the segment was \$6,800,000, with a reported loss ratio of 25.3% for that quarter.

This distribution model allows Boston Omaha Corporation to service a fragmented customer base needing surety bonds.

Investor relations and transparent communication with shareholders

Boston Omaha Corporation maintains a policy of transparent communication with its public shareholders, issuing quarterly financial results and supplemental presentations. As of November 17, 2025, the company announced the adoption of a \$30 Million Class A Common Stock Repurchase Program. The book value per share stood at \$16.80 as of September 30, 2025. Cash inflow from operations for the nine months ended September 30, 2025, was \$12.1 million.

The company's commitment to shareholder alignment is evident in its actions and disclosures.

• Shares outstanding (Class A and Class B) as of November 12, 2025: 30,872,876 and 580,558, respectively.
• Total unrestricted cash and investments as of September 30, 2025: \$56,203,902.

High-touch, long-term relationships with key investment partners

For its significant equity method investments, such as Sky Harbour Group Corporation, the relationship requires management attention, even if the day-to-day operations are separate. The investment in Sky Harbour Class A common stock and warrants was valued at \$126.9 million as of September 30, 2025, based on equity method accounting.

Here's a quick look at the segment-level revenue drivers that inform these relationships for Q3 2025:

Finance: draft 13-week cash view by Friday.

Boston Omaha Corporation (BOC) - Canvas Business Model: Channels

You're looking at how Boston Omaha Corporation (BOC) gets its value propositions to its customers across its four main business lines. The channels here are quite diverse, reflecting the holding company structure, ranging from direct sales teams for infrastructure to agent networks for insurance.

For the Link Media Outdoor segment, the channel is primarily a direct sales force engaging businesses for billboard advertising placements. While I don't have the exact headcount for the direct sales force as of late 2025, we can gauge the scale of their reach by looking at their inventory and recent performance. For instance, in the third quarter of 2025, Link Media Outdoor generated $11.8 million in billboard rentals revenue. The physical channel consists of 7,570 total advertising faces as of the end of Q3 2025, with 109 of those being digital faces. The high Adjusted EBITDA margin of 41% in Q3 2025 suggests their sales process is efficient at monetizing this physical inventory.

The Boston Omaha Broadband segment relies on direct-to-consumer sales and installation teams to deploy and service its fiber and fixed wireless networks. This is a hands-on channel. Looking at the Q2 2025 figures, the segment was serving 30,600 fixed wireless customers and 13,500 fiber subscribers. Overall, the Boston Omaha Broadband family of companies provides internet service to over 40,000 subscribers. Their Q3 2025 revenue from broadband services was $10.2 million. The need for installation teams is clear given the ongoing fiber build-out, with approximately 2,100 new fiber passings added in Q2 2025 alone.

For the surety bonds business, General Indemnity Group (GIG), the channel relies on independent insurance agents and brokers to distribute their policies. This is an indirect sales channel supported by the underwriting entity, United Casualty and Surety, which is licensed to write surety policies in all 50 states. The scale of this channel is reflected in the $5.6 million in premiums earned during Q3 2025.

The channel for public investors is purely digital and regulatory. Boston Omaha Corporation uses its official SEC filings, such as the Form 10-Q for Q3 2025, to communicate material information. Furthermore, they direct investors to their dedicated investor relations website, which is a comprehensive resource: https://investor.bostonomaha.com/.

Finally, for capital allocation back to shareholders, the channel involves the execution of buybacks, authorized up to $30 million of Class A common stock through December 31, 2026. The Board also authorized the potential establishment of Rule 10b5-1 trading plans to manage these repurchases compliantly during blackout periods.

Here's a quick look at the channel-relevant scale metrics we have for the operating segments as of late 2025:

The company uses several methods to reach its customers, which is key for a diversified entity like Boston Omaha Corporation. You can see the direct sales effort in the broadband segment's customer counts, which is a heavy lift for installation teams.

• Link Media Outdoor utilizes its physical inventory of 7,570 faces for direct advertising sales.
• Boston Omaha Broadband deploys installation teams to service its subscriber base, which includes 13,500 fiber customers as of mid-2025.
• Surety bond distribution depends on a network of independent agents across 50 states.
• Investor communication channels are centered on SEC filings and the investor relations website.
• Shareholder return is channeled via an authorized $30 million share repurchase program.

Finance: draft a pro-forma cash flow statement incorporating the Q3 2025 operating cash flow of $12.1 million for the nine months ended September 30, 2025, by next Tuesday.

Boston Omaha Corporation (BOC) - Canvas Business Model: Customer Segments

You're looking at the customer base for Boston Omaha Corporation (BOC) as of late 2025. It's a holding company structure, so the customers are quite varied, spanning from local advertisers to institutional capital allocators. Honestly, the diversity is the point, but it means you have to track several distinct markets.

The core operating segments serve distinct groups. For outdoor advertising, the customers are businesses needing physical reach. For broadband, it's about getting connectivity to homes and enterprises in specific build-out areas. Surety insurance targets contractors needing guarantees for their work.

Here's a look at the quantitative data points for the primary operating customer-facing segments based on the Third Quarter 2025 filings:

The outdoor advertising segment, Link Media Outdoor, served businesses needing ad space. As of Q2 2025, they maintained an inventory of 3,950 structures, which translated to 7,570 advertising faces, including 107 digital displays. Their Q3 2025 revenue from billboard rentals hit $11.8 million.

For the residential and commercial customers in underserved broadband markets, Boston Omaha Broadband (BOB) is the vehicle. As of Q2 2025, they served 13,500 fiber subscribers and 30,600 fixed wireless customers. Management noted in early 2025 that the total subscriber base was over 44,000 across Arizona and Utah, plus new developments. The Fiber Fast Homes division, focused on new developments, had 4,200 fiber subscribers as of Q2 2025.

Contractors and businesses requiring surety bonds are served through General Indemnity Group. In Q2 2025, this segment reported gross written premiums of $7.9 million. The segment's reach spans 50 States providing surety bonds.

Public equity investors are a key segment, as BOC is a publicly traded holding company. As of September 30, 2025, the outstanding share count was 30,872,876 shares of Class A common stock and 580,558 shares of Class B common stock. The book value per share for these investors stood at $16.80 at that date.

Finally, third-party limited partners are customers of the Asset Management division (BOAM). This group is exposed through funds managed by BOC. For instance, Q3 2025 saw losses of $2.0 million related to the underlying assets within the 24th Street Funds. Furthermore, BOC's own investment in Sky Harbour Class A stock and warrants was valued at $82.7 million on the balance sheet as of September 30, 2025.

• Local and national businesses requiring outdoor advertising (billboards)
• Residential and commercial customers in underserved broadband markets
• Contractors and businesses requiring surety bonds (e.g., construction)
• Public equity investors seeking a diversified holding company structure
• Third-party limited partners in commercial real estate and BFR funds

Finance: draft 13-week cash view by Friday

Boston Omaha Corporation (BOC) - Canvas Business Model: Cost Structure

You're looking at the expense side of Boston Omaha Corporation's operations as of late 2025. It's a mix of heavy infrastructure spending, ongoing asset upkeep, and segment-specific operational costs. The capital intensity of the broadband buildout definitely shows up here, alongside the fixed nature of the billboard business.

The broadband segment is a major driver of capital outlay. For the second quarter ended June 30, 2025, Boston Omaha Broadband invested $6.6 million in capital expenditures, pushing network expansion forward. This investment pace is key to their growth strategy, but it directly impacts the cost structure through future depreciation.

Speaking of depreciation, that non-cash charge is significant because of the tangible assets across the company. For the three months ended June 30, 2025, the total Depreciation and Amortization Expense was $6,164,312. Looking at the first half of 2025, this expense totaled $12,156,295. The increase in depreciation expense is directly tied to those continued capital investments within the broadband businesses, as noted in their filings.

Here's a breakdown of some key non-cash and operational cost figures we see from the first half of 2025:

For the billboard revenues side, the direct cost of services is where you find the land lease payments. While the specific Cost of billboard revenues (exclusive of depreciation and amortization) for Q2 2025 isn't explicitly isolated in the summary data, we do see that their quarterly lease obligations, which include land leases, were reported around $5.3 million for June 2025. The Link Media Outdoor segment maintained a gross margin of 67.6% in Q2 2025, showing they manage those fixed costs reasonably well against their stable revenue base.

Employee costs are definitely ticking up in certain areas. For instance, in the insurance segment, employee costs rose by $319,000 year-over-year in the second quarter of 2025. This trend of rising personnel expenses is something to watch across all segments, especially as the broadband operations scale.

The insurance segment's cost of revenue is heavily influenced by claims. The loss ratio for General Indemnity Group stood at 32.2% for Q2 2025. Loss and Adjustment Expenses (LAE) are a core component of that direct cost structure, though the specific LAE dollar amount isn't broken out separately from the overall loss figures in the summaries.

You can see how these costs translate into overall performance, for example, by looking at the nine-month results ending September 30, 2025, where higher depreciation and an other investment loss pressured the bottom line, leading to a net loss attributable to common stockholders of $5.6 million for the nine months.

• Broadband segment gross margin improved to 80.9% in Q2 2025.
• Billboard segment gross margin was 67.6% in Q2 2025.
• The company reported a net loss per share of $0.07 for Q2 2025.
• Total liabilities stood at $175.3 million as of June 30, 2025.

Finance: draft 13-week cash view by Friday.

Boston Omaha Corporation (BOC) - Canvas Business Model: Revenue Streams

You're looking at how Boston Omaha Corporation brings in the money across its diverse portfolio as of late 2025. It's a mix of hard assets like billboards and infrastructure, plus insurance and investments. Honestly, the operating segments are the main story here.

The core operating revenue streams for the third quarter ended September 30, 2025, show the relative weight of each business unit. Billboard rentals, net, generated $11,788,400 for the quarter. Broadband services followed closely, bringing in $10,150,921 in revenue for the same period. Surety insurance premiums earned added $5,636,732 to the top line in Q3 2025.

Here's a quick look at those three main operating revenue components for Q3 2025:

For the nine months ended September 30, 2025, total revenues reached $84,668,519, up from $80,341,450 in the same period last year. That's solid top-line movement, even if profitability gets tricky with investment marks.

Beyond the core operations, Boston Omaha Corporation captures revenue from its capital deployment and insurance float:

• Interest and dividend income from cash and investments totaled $528,320 in Q3 2025, though one filing noted interest and dividend income of $0.3 million for that quarter.
• Equity in earnings/loss from unconsolidated affiliates, which heavily features the Sky Harbour position, resulted in a loss of approximately $600,000 for Q3 2025.

You should also note that Investment and Other Income, which contains the interest and dividend component, was $528,320 for the quarter. The equity method loss from affiliates was specifically cited as a loss of $0.6 million in the third quarter of 2025.

Finance: draft 13-week cash view by Friday.