OMCC Reports Results

Old Market Capital (NASDAQ:OMCC) reported robust Q1 FY2026 results, with GAAP revenue surging 520.4% year-over-year to $3.0 million and adjusted EBITDA turning positive at $0.7 million, reflecting progress in its telecom transition post-Amplex integration. The company's fiber subscriber base grew 30% and fiber passings expanded 36.8%, driving operational gains, though fixed wireless subscribers declined 7.7%. While OMCC significantly reduced its net loss and improved gross margin to 66.2%, it provided no forward guidance or dividend, and remains regionally concentrated on broadband expansion, supported by a $21.3 million federal loan for infrastructure buildout.

Analysis

Old Market Capital's (NASDAQ:OMCC) Q1 FY2026 results reflect a significant, yet nascent, operational turnaround following its restructuring into a telecom-centric holding company. The headline 520.4% year-over-year revenue growth to $3.0 million is primarily an artifact of integrating the Amplex acquisition, rather than purely organic expansion. More critically, the company achieved positive adjusted EBITDA and a substantial 77.6% reduction in GAAP EPS loss to ($0.11), signaling a move towards sustainable profitability. The core growth engine is clearly the fiber business, which saw a 30% increase in subscribers to 4,800 and a 36.8% expansion in fiber passings to 13,000 potential locations. This growth, which drove gross margin improvement to 66.2%, is strategically offsetting the managed 7.7% decline in the legacy fixed wireless subscriber base. However, significant uncertainties remain. The company provided no forward guidance on revenue or subscriber growth, making it difficult to project future performance. Furthermore, OMCC remains highly concentrated in its Ohio service area and has yet to detail its plans for geographic or sector diversification, while its aggressive fiber buildout, funded by a $21.3 million federal loan, has driven a 568% increase in depreciation expenses.

Key Decisions for Investors

• Investors should view the 30% fiber subscriber growth and positive adjusted EBITDA as strong validation of the company's strategic pivot to telecom, but weigh this against the lack of official forward guidance, which introduces considerable forecast risk.
• It is prudent to monitor the subscriber mix, particularly the rate at which fixed wireless customers are converted to higher-value fiber, as this will be a key driver of future average revenue per user and margin expansion.
• Closely track the pace of drawdowns from the $21.3 million federal loan and the impact of rising capital expenditures and depreciation on free cash flow, as the benefits of the infrastructure buildout must eventually outweigh its associated costs.