8-K: Old Market Capital Reports Strong Q1 Revenue Growth

Old Market Capital Corporation announced significantly improved financial results for its first fiscal quarter of 2026, driven by substantial revenue growth in its telecommunications segment.

Summary

• Net loss attributable to common shareholders improved significantly to $0.7 million for the three months ended June 30, 2025, compared to $3.3 million in the prior year period.
• Total revenue surged by 520.4% to $3.034 million for the three months ended June 30, 2025, up from $0.489 million in the prior year period.
• Adjusted EBITDA for the telecommunications segment turned positive at $0.665 million for the three months ended June 30, 2025, a 227.9% increase from a loss of $0.520 million in the prior year period.
• Fiber subscribers increased by 29.7% to 4,800, and fiber passings grew by 36.8% to 13,000 year-over-year as of June 30, 2025.
• The company drew an additional $0.9 million from its $21.3 million RUS Loan during the quarter, bringing the total drawn to $1.5 million at June 30, 2025, for fiber build-out.
• Fixed wireless subscribers decreased by 7.7% to 8,400 year-over-year as of June 30, 2025.
• Depreciation and amortization expenses increased by 568% to $0.6 million due to the ongoing installation of physical assets related to the fiber optic business.

Sentiment

Score: 8

Explanation: The company demonstrated significant financial improvement with substantial revenue growth and a positive Adjusted EBITDA in its core telecommunications segment. The strategic shift to fiber and securing a large, low-interest government loan for expansion are strong positives, despite a decline in fixed wireless subscribers and increased depreciation from capital expenditures.

Positives

• Total revenue increased by 520.4% to $3.034 million for the three months ended June 30, 2025, compared to $0.489 million in the prior year.
• Net loss attributable to common shareholders significantly improved to $0.748 million, from a loss of $3.302 million in the same period last year.
• Basic and diluted net loss per share from continuing operations improved to $(0.12) from $(0.79) year-over-year.
• Adjusted EBITDA for the telecommunications segment turned positive at $0.665 million, a 227.9% increase from a loss of $0.520 million in the prior year.
• Fiber subscribers increased by 29.7% to 4,800 at June 30, 2025, compared to 3,700 at June 30, 2024.
• Fiber passings increased by 36.8% to 13,000 at June 30, 2025, compared to 9,500 at June 30, 2024.
• Other operating expenses decreased by 14% to $3.412 million for the three months ended June 30, 2025.
• Secured a $21.3 million Reconnect Program Loan with a fixed interest rate of 2% and a three-year deferral period for principal and interest payments.

Negatives

• Fixed wireless subscribers decreased by 7.7% to 8,400 at June 30, 2025, from 9,100 at June 30, 2024.
• Depreciation and amortization expenses increased by 568% to $0.608 million, reflecting significant capital expenditure for fiber optic assets.
• Total income from discontinued operations, net of tax, decreased significantly to $38k from $2,059k year-over-year.
• Total Shareholder's Equity decreased to $52.465 million at June 30, 2025, from $53.140 million at March 31, 2025.

Risks

• Forward-looking statements are inherently uncertain and subject to certain risks, uncertainties, and assumptions that may cause results to differ materially from those expressed or implied.

Future Outlook

The company is exploring opportunities to allocate capital to increase shareholder returns and seeks to pursue additional controlling interests in other companies and sectors, beyond its current broadband operations.

Management Comments

• Management uses Adjusted EBITDA to evaluate segment performance, guide resource allocation, and determine certain employee compensation.
• We believe Adjusted EBITDA also helps investors compare performance across periods.

Industry Context

Old Market Capital Corporation's transition from consumer finance to a holding company focused on broadband, specifically fiber optic expansion, aligns with broader industry trends of increasing demand for high-speed internet infrastructure. The growth in fiber subscribers and passings, despite a decline in fixed wireless, indicates a strategic shift towards more robust and future-proof connectivity solutions, a common theme in the telecommunications sector.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to assess the company's performance against global benchmarks. However, the significant revenue growth and improvement in Adjusted EBITDA suggest strong operational momentum within its niche, particularly in fiber build-out, which is a capital-intensive but high-growth area in the broadband industry.

Stakeholder Impact

• Shareholders: Potential for increased returns through strategic capital allocation and growth in the broadband segment; improved financial performance may lead to increased shareholder value.
• Customers (Amplex): Expansion of fiber internet services will provide enhanced connectivity options in specific Ohio areas.
• Employees (Amplex): Continued investment in fiber infrastructure likely supports job stability and potential growth within the telecommunications segment.
• Creditors (RUS): The company is drawing down on its $21.3 million loan, indicating active investment and adherence to loan terms for fiber expansion.

Next Steps

• Continue fiber build-out in Ohio using the RUS Loan.
• Explore opportunities to allocate capital to increase shareholder returns.
• Pursue additional controlling interests in other companies and sectors.

Key Dates

Recommendation

The company has demonstrated a strong turnaround in its core telecommunications business, evidenced by a 520.4% revenue increase and a shift to positive Adjusted EBITDA. The strategic focus on fiber expansion, supported by a substantial, low-interest government loan, positions the company for future growth in a high-demand sector. While fixed wireless subscribers declined, the overall growth in total broadband subscribers and fiber passings indicates a successful pivot. The significant improvement in net loss per share suggests operational efficiency gains. These factors, combined with the stated intent to explore further capital allocation for shareholder returns and additional acquisitions, make OMCC an attractive 'buy' for investors seeking growth in the broadband infrastructure space.

Keywords

Old Market Capital Corporation, OMCC, Financial Results, Q1 2026, Telecommunications, Broadband, Fiber Internet, Wireless Internet, Adjusted EBITDA, Subscriber Growth, SEC Filing, 8-K, Amplex, RUS Loan