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Q1 2025 Financial Results May 14, 2025 1
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2 SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation by Boston Omaha Corporation contains “forward-looking statements, ” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events, trends, contingencies or results, appear at various places in this presentation and use words like “anticipate, ” “assume, ” “believe, ” “continue, ” “estimate, ” “expect, ” “forecast, ” “future, ” “intend, ” “plan, ” “potential, ” “predict, ” “project, ” “strategy, ” “target” and similar terms, and future or conditional tense verbs like “could, ” “may, ” “might, ” “should, ” “will” and “would. ” For example, management may use forward-looking statements when addressing topics such as: the outcome of contingencies; changes in the Company’s business strategies and methods of generating revenue; the development and performance of the Company’s services and products; the expected impact of acquisitions and dispositions; the Company’s effective tax rates; future actions by regulators; and the Company’s cost structure, cash flows or liquidity. Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things: • economic, financial, political, and regulatory conditions (including slower GDP growth or recession, instability in the business sectors we serve and inflation), and factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, public health crises (e.g., pandemics), geopolitical uncertainty (including military conflict), and conditions that may result from legislative, regulatory, trade and policy changes; • our ability to make acquisitions and dispositions and successfully integrate the businesses we acquire; • competition by other companies; • our ability to maintain adequate physical, technical and administrative safeguards to protect the security of confidential information and data, and the potential for a system or network disruption that results in regulatory penalties and remedial costs or improper disclosure of confidential information or data; • our ability to attract, incentivize and retain key employees, especially in a competitive business environment; • our significant equity investments in other companies, including Sky Harbour Group Corporation (NYSE:SKYH and SKYH.WS) and in other public and privately-held businesses; • a decline in the demand for our products and services by our customers and other market participants; • the ability of the Company, and its third-party service providers, to maintain adequate physical and technological infrastructure; • the Company’s ability to successfully recover from a disaster or other business continuity problem, such as an earthquake, hurricane, flood, civil unrest, terrorist attack, outbreak of pandemic or contagious diseases, security breach, cyber attack, data breach, power loss, telecommunications failure or other natural or man-made event; • the level of merger and acquisition activity in the United States in each of our business segments; • the level of our future cash flows and capital investments; • the continuously evolving regulatory environment in the United States affecting each of our businesses and the products they offer, and our compliance therewith; and • the impact of changes in applicable tax or accounting requirements on the Company. The factors noted above are not exhaustive. The Company and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Further information about the Company’s businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company’s filings with the SEC, including Item 1A, Risk Factors in our most recently filed Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025. COMPARISON OF ADJUSTED INFORMATION TO U.S. GAAP INFORMATION This presentation includes Company financials on an as-reported basis. The Company also refers to and presents “Adjusted EBITDA” as the only non-GAAP financial measure within this presentation, for which additional disclosure is required as a “non-GAAP” measure within the meaning of Regulation G under the Securities Exchange Act of 1934. The Company’s use of this non-GAAP financial measure includes adjustments that reflect how management views our separately reported business segments. The Company believes the use of this non-GAAP financial measure provides useful supplemental information that enables investors to better compare the Company's performance across periods, and management also uses this measure internally to assess the operating performance of each of its business segments, to assess performance for employee compensation purposes and to decide how to allocate resources. However, investors should not consider the use of this non-GAAP financial measure in isolation from, or as a substitute for, the financial information that the Company reports. The Company's earnings releases, including its earnings release dated May 14, 2025, for the three months ended March 31, 2025, contain financial measures calculated in accordance with GAAP that correspond to the non-GAAP financial measure included in this presentation. The Company's earnings releases are available on the Company's website at www.investor.bostonomaha.com/news. Reconciliations of the use of this non-GAAP financial measure to the most comparable GAAP measure are provided in the appendix to this presentation.
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3 Q1 2025 Highlights Link Media Outdoor • Revenue growth of 0.6% YoY • Land cost of 20.8% (18.5% excl. ASC 842 lease accounting entries) • Adjusted EBITDA of ~$3.6 million Boston Omaha Broadband • ~2.3k new fiber passings / ~1.5k new fiber subscribers • ~$6.2 million in capital expenditures • Adjusted EBITDA of ~$2.7 million (~$3.6 million excluding Fiber Fast Homes) General Indemnity Group • Gross written premium up 37.9% YoY • Revenue growth of 31.6% YoY • Adjusted EBITDA of ~$0.3 million Boston Omaha Asset Management • ~$1.9 million in distributions to Boston Omaha Corporation Investment in Sky Harbour Group • Realized gain of ~$1.3 million on sale of 220,889 shares of SKYH Class A common stock • Unrealized gain of ~$1.2 million related to SKYH warrants • Equity method loss of ~$2.3 million related to SKYH Class A common stock
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Business Unit Updates
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($M) Q1 ‘25 Q1 ‘24 YoY Growth Revenue $10.8 $10.7 0.6% Land cost % (1) 20.8% 19.1% 1.7% Gross margin % 64.3% 64.6% (0.3)% Net income $0.9 $1.3 (29.1)% Adjusted EBITDA (2) $3.6 $3.9 (7.7)% 1. Land costs as a percentage of revenue 2. Adjusted EBITDA is defined as net income (loss) before income tax expense (benefit), noncontrolling interest in subsidiary income (loss), interest expense, interest and dividend income, depreciation, amortization, accretion, gain or loss on disposition of assets, and other investment income (loss) 5 Link Media Outdoor Outdoor Advertising Highlights • Softer revenue growth of 0.6% YoY due to reduced advertising spend in Entertainment, Automotive, and Government categories. • Increase in land cost mainly due to ASC 842 lease accounting entries. Land cost excl. ASC 842 was 18.5% during Q1 ‘25 compared to 18.3% in Q1 ‘24. • Employee costs increased by $357k in Q1 ‘25 compared to Q1 ‘24 due to filling of open positions and changes to Link’s management compensation structure. Key Metrics Q1 ‘25 Q1 ‘24 Debt to EBITDA ratio (3) 2.0x 1.6x Structure and face count 4,000 / 7,600 4,000 / 7,600 Digital faces 105 100 3. Consolidated leverage ratio as defined in Link’s credit agreement which was most recently amended and filed as an 8-K with the SEC on June 5, 2024
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($M) Q1 ‘25 Q1 ‘24 YoY Growth Revenue $9.8 $9.5 3.2% Gross margin % 80.8% 78.9% 1.9% Net income (loss) (4) $0.4 ($0.1) $0.5 Adjusted EBITDA (4,5) $3.6 $2.7 34.2% Capital Expenditures $4.8 $5.8 (17.2)% 4. Includes allocation of broadband parent company overhead expenses 5. Adjusted EBITDA is defined as net income (loss) before income tax expense (benefit), noncontrolling interest in subsidiary income (loss), interest expense, interest and dividend income, depreciation, amortization, accretion, gain or loss on disposition of assets, and other investment income (loss) 6 Boston Omaha Broadband AireBeam, InfoWest and Utah Broadband Highlights • ~2.1k new fiber passings and ~900 new fiber subscribers during Q1 ‘25. • Reduced employee costs and G&A by ~$500k in Q1 ‘25 compared to Q1 ’24. • Continue to focus on developing strategic partnerships and driving cost efficiencies across all three businesses. Key Metrics Q1 ‘25 Q1 ‘24 Fixed wireless subscribers 30.8k 32.8k Fiber subscribers 13.2k 8.8k Fiber passings 33.9k 25.3k Debt to EBITDA ratio 0.5x -
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($M) Q1 ‘25 Q1 ‘24 YoY Growth Revenue $0.5 $0.2 158.5% Gross margin % 8.5% (136.1)% 144.6% Net loss (6) ($1.4) ($1.6) 17.4% Adjusted EBITDA (6,7) ($0.9) ($1.3) 30.7% Capital Expenditures $1.4 $2.0 (30.0)% 6. Includes allocation of broadband parent company overhead expenses 7. Adjusted EBITDA is defined as net income (loss) before income tax expense (benefit), noncontrolling interest in subsidiary income (loss), interest expense, interest and dividend income, depreciation, amortization, accretion, gain or loss on disposition of assets, and other investment income (loss) 7 Boston Omaha Broadband Fiber Fast Homes – Greenfield Fiber New Homes Division Highlights • ~200 new fiber passings and ~600 new fiber subscribers during Q1 ‘25. • Working to continue growing subscriber base while integrating costs to lower burn rate. • The team continues to work on sourcing additional contracted backlog in geographies where we can obtain scale. Key Metrics Q1 ‘25 Q1 ‘24 Fiber subscribers 3.9k 1.8k Fiber passings 8.3k 5.2k HOA & Joint Venture Backlog (8) 8.4k 9.1k Debt to EBITDA ratio - - 8. Contracted backlog passings/subscribers available to us at present which we may or may not complete depending on a host of factors
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9. Losses and loss adjustment expenses as a percentage of premiums earned at our UCS insurance company 10. Adjusted EBITDA is defined as net income (loss) before income tax expense (benefit), noncontrolling interest in subsidiary income (loss), interest expense, interest and dividend income, depreciation, amortization, accretion, gain or loss on disposition of assets, and other investment income (loss) ($M) Q1 ‘25 Q1 ‘24 YoY Growth Gross written premium $6.2 $4.5 37.9% Revenue $6.6 $5.0 31.6% Loss ratio % (9) 21.0% 17.0% 4.0% Gross margin % 56.8% 62.2% (5.4)% Operating income $0.2 $0.4 (47.9)% Net income $0.7 $0.7 (1.9)% Adjusted EBITDA (10) $0.3 $0.5 (40.3)% 8 General Indemnity Group Surety Insurance Highlights • Agencies consolidated as of January 2024 and rebranded to BOSS Bonds® in June 2024. • Increase in loss ratio mainly related to two larger claim payments on outstanding contract bonds. • Boston Omaha contributed ~$15M of SKYH shares to UCS during Q1 ‘25. Key Metrics ($M) Q1 ‘25 Q1 ‘24 UCS surplus $55.9 $22.7 UCS admitted assets $91.8 $46.0
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($M) GAAP Value (11) Market Value (12) Proceeds to Date (13) Sky Harbour $92.2 $182.2 $5.5 CB&T $19.1 n/a BOAM General Partner (14) $6.2 $4.1 Build for Rent Fund $4.1 $10.9 24th Street Funds $4.0 $7.8 Other (15) $3.8 $1.7 11. GAAP value as of March 31, 2025 12. NYSE market value of 12,180,700 shares of Sky Harbour Class A common stock and 7,719,779 warrants as of March 31, 2025 13. Includes distributions and sale proceeds from investments 14. Includes management fees and promote earned to date at Boston Omaha Asset Management 15. Includes MyBundle TV, Logic, and Breezeway 9 Investments
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Cash, Tax Assets, and Share Repurchase Authorization
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11 Cash, Tax Assets, and Share Repurchase Program ($M) As of March 31, 2025 Unrestricted cash (16) $14.7 U.S. Treasury securities $19.3 Total $34.0 Net operating loss carry forwards (17) $91.1 BOC share repurchase authorization remaining (18) $18.4 16. Excludes United Casualty and Surety Insurance Company, 24th Street Funds and Build for Rent Fund 17. Net operating loss carry forwards as of December 31, 2024 18. $20 million Class A common stock repurchase authorization effective through September 30, 2025. During fiscal 2024, we repurchased 111,323 shares of our Class A common stock for a total cost of approximately $1.6 million. We did not repurchase any shares during the first three months of fiscal 2025 due to a stock repurchase blackout period.
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Appendix
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Change 2025 2024 # Net income 0.9$ 1.3$ (0.4)$ Interest expense, net 0.4 0.2 0.1 Depreciation 1.3 1.3 0.0 Amortization 1.0 1.0 (0.0) Accretion 0.1 0.1 (0.0) Loss on disposition of assets 0.1 0.2 (0.1) Adjusted EBITDA 3.6$ 3.9$ (0.3)$ Change 2025 2024 # Net loss (1.0)$ (1.7)$ 0.7$ Interest expense, net 0.1 0.0 0.1 Depreciation 2.7 2.1 0.6 Amortization 0.9 0.9 (0.0) Accretion 0.0 0.0 0.0 Loss on disposition of assets 0.0 0.0 0.0 Noncontrolling interest - 0.1 (0.1) Adjusted EBITDA 2.7$ 1.4$ 1.3$ Change 2025 2024 # Net income 0.7$ 0.7$ (0.0)$ Depreciation 0.0 0.0 (0.0) Amortization 0.0 0.0 - Other investment income (0.3) (0.3) (0.0) Noncontrolling interest (0.2) - (0.2) Adjusted EBITDA 0.3$ 0.5$ (0.2)$ Ended March 31, For the Three Months General Indemnity Group For the Three Months Ended March 31, Ended March 31, Boston Omaha Broadband For the Three Months Link Media Outdoor 13 Non-GAAP Information ($M)