Boston Omaha’s GIG divestiture, rural fiber runway, and asset-backed balance sheet create a potential long-term compounding story despite weak current GAAP profitability.
Overview
Boston Omaha Corporation is a U.S.-only holding company combining regional billboard advertising, rural broadband, minority investments, and a legacy surety operation. Link Media controls roughly 3,900 billboard structures and 7,500 faces, while BOB serves more than 50,400 broadband customers, including 21,600 fiber subscribers. The pending **$84.3 million all-cash GIG divestiture**, expected to close in the second half of 2026, should simplify the portfolio, return 2,673,831 SKYH shares, and provide $78.40 million of net cash for fiber investment or repurchases. Q1 2026 revenue rose 1.9% year over year to $28.25 million, but adjusted EBITDA fell to $4.2 million from $5.3 million and the company reported a $2.15 million net loss, reflecting D&A, equity-method losses, and surety claims. The long-term thesis rests on 12.0% projected sales CAGR, fiber conversion, billboard scarcity, and disciplined capital recycling. A base FCFF DCF yields $16.78 per share versus a cited $14.44 current price, while the probability-weighted five-year value is approximately $28.95. Near-term catalysts include GIG closing, USDA-funded fiber deployment, subscriber conversion, and buybacks.