8-K: Old Market Capital Reports Strong Q2 FY2026 Growth

Old Market Capital Corporation announced its financial results for the second quarter of fiscal year 2026, showing significant revenue growth and reduced net loss from continuing operations.

Summary

• Total revenue increased by 79.7% to $6.193 million for the six months ended September 30, 2025, compared to $3.447 million in the prior year period.
• Net loss attributable to common shareholders from continuing operations improved to $1.5 million (or $0.24 per share) for the six months ended September 30, 2025, from $4.0 million (or $1.02 per share) in the same period of 2024.
• Adjusted EBITDA for the telecommunications segment surged by 247.0% to $1.551 million from $0.447 million year-over-year.
• Fiber internet services revenue grew significantly to $1.946 million from $879 thousand.
• Fiber subscribers increased by 33.3% to 5,200, and fiber passings rose by 47.5% to 14,600.
• Fixed wireless subscribers decreased by 7.9% to 8,200.
• Depreciation and amortization expenses increased by 157% to $1.5 million, primarily due to the ongoing installation of physical assets for the fiber optic business.
• Other operating expenses decreased by 13.5% to $6.7 million.
• The company drew an additional $2.4 million under its $21.3 million RUS Loan, bringing the total drawn amount to $3.0 million, for fiber build-out in Ohio.

Sentiment

Score: 7

Explanation: The company demonstrated strong revenue and Adjusted EBITDA growth, coupled with significant improvements in net loss from continuing operations. The fiber build-out is progressing well, supported by favorable government financing. However, the company is still operating at a net loss, and the increase in depreciation reflects ongoing capital expenditures.

Positives

• Significant revenue growth of 79.7% year-over-year for the six months ended September 30, 2025.
• Substantial improvement in net loss from continuing operations, reducing from $4.0 million to $1.5 million.
• Adjusted EBITDA for the telecommunications segment increased by 247.0% to $1.551 million.
• Strong growth in fiber internet services revenue, fiber subscribers (33.3%), and fiber passings (47.5%).
• Decrease in other operating expenses by 13.5% to $6.7 million.
• Secured a $21.3 million RUS Loan at a fixed rate of 2% for fiber expansion, with a three-year deferral period for interest and principal payments.

Negatives

• The company is still reporting a net loss attributable to common shareholders of $1.5 million from continuing operations.
• Fixed wireless subscribers decreased by 7.9% year-over-year.
• Depreciation and amortization expenses increased significantly by 157% due to capital expenditures, which impacts reported net income in the short term.

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.
• Ongoing capital expenditure for fiber build-out leads to increased depreciation and amortization, potentially impacting reported net income.
• Reliance on the RUS Loan for fiber expansion, with specific terms and conditions, including the requirement to build out fiber in one specific area of Ohio.

Future Outlook

The company is exploring opportunities to allocate capital to try to increase shareholder returns and continues its fiber build-out in one specific area of Ohio using the $21.3 million RUS Loan.

Management Comments

• Management uses Adjusted EBITDA to evaluate segment performance, guide resource allocation, and determine certain employee compensation.

Industry Context

Old Market Capital Corporation is actively transitioning from a specialized consumer finance company to a holding company with a primary focus on broadband, specifically fiber optics. This strategic shift aligns with the broader industry trend of increasing demand for high-speed fiber internet services. The company's utilization of the federal Reconnect Program Loan (RUS Loan) for fiber expansion in Ohio demonstrates its participation in government initiatives aimed at bridging the digital divide in underserved areas. The decline in fixed wireless subscribers, while fiber subscriber numbers grow, reflects a strategic pivot towards more robust and future-proof fiber infrastructure, a common evolution in the telecommunications sector.

Comparison to Industry Standards

• The 79.7% revenue growth and 247% Adjusted EBITDA growth in the telecommunications segment are strong indicators, especially for a company undergoing a strategic transformation and significant infrastructure build-out, potentially outpacing many established broadband providers.
• The increase in fiber subscribers (33.3%) and fiber passings (47.5%) demonstrates effective execution of their fiber expansion strategy, which is crucial in the competitive broadband market where companies like AT&T, Verizon, and regional fiber providers are also aggressively expanding.
• The 2% fixed-rate RUS Loan for $21.3 million is a highly favorable financing term compared to typical commercial rates, significantly reducing the cost of capital for their fiber build-out project. This provides a substantial competitive advantage for the specific project area in Ohio, allowing for more aggressive deployment than competitors relying on market-rate financing.
• The decline in fixed wireless subscribers is a common trend as companies upgrade to fiber, but managing this transition while retaining overall subscriber growth (total broadband subscribers increased from 12,800 to 13,400) is key to maintaining market share against competitors offering similar services.

Stakeholder Impact

• Shareholders: Potential for increased returns through strategic capital allocation and improved financial performance in the broadband segment. The reduced net loss and strong EBITDA growth are positive signals.
• Customers (Broadband): Expansion of fiber services provides improved internet access and speed, particularly in the specific Ohio area targeted by the RUS Loan.
• Employees: Continued growth in the broadband segment may lead to job creation or stability within Amplex.
• Creditors (RUS): The company is drawing on the RUS Loan for its intended purpose, indicating progress on the funded project.

Next Steps

• Continue the fiber build-out in one specific area of Ohio using the RUS Loan.
• Explore additional controlling interests in other companies and sectors.
• Allocate capital to try to increase shareholder returns.

Key Dates

Recommendation

While Old Market Capital shows strong operational improvements with significant revenue and Adjusted EBITDA growth in its telecommunications segment, and a reduced net loss, it is still in a transitional phase. The substantial capital expenditure for fiber build-out, while strategic, will continue to impact reported profitability in the short term through increased depreciation. The favorable RUS loan is a positive, but the company's overall strategy to pursue additional controlling interests in other sectors is still undefined. A 'hold' recommendation reflects the positive momentum in the core broadband business balanced against the ongoing transformation and capital intensity.

Keywords

Old Market Capital, OMCC, Financial Results, Q2 2026, Broadband, Fiber Internet, Wireless Internet, Telecommunications, Adjusted EBITDA, SEC Filing, Form 8-K, RUS Loan, Subscriber Growth, Fiber Passings