Horizon Kinetics Holding Corporation Reports Second Quarter Results

About this update from Horizon Kinetics Holding Corporation

Horizon Kinetics Holding Corporation Reports Second Quarter Results Horizon Kinetics Holding Corporation Reports Second Quarter Results Highlights for the Quarter ended June 30, 2025: Management and advisory fee revenue of $18.8 million for the quarter ended June 30, 2025, a 66% increase from the second quarter of 2024 Net loss attributable to Horizon Kinetics Holding Corporation of $(10.5) million, or $(0.56) per common share for the three months ended June 30, 2025 Operating income for the second quarter of 2025 was $2.5 million, an increase of $3.2 million from a $0.6 million loss during the second quarter of 2024 Assets under management ("AUM") of $10.5 billion as of June 30, 2025, an increase of 7% from December 31, 2024 and 43% from June 30, 2024 Board of Directors declares a $0.071 per share dividend NEW YORK CITY, NEW YORK / ACCESS Newswire / August 12, 2025 / Horizon Kinetics Holding Corporation (the "Company" or "HKHC") (OTCID:HKHC) reported financial results for the second quarter of 2025. The Company's management and advisory fee revenue grew during the quarter as compared to 2024 resulting from increases in AUM in its separately managed accounts, ETFs, mutual funds and private funds. The increases in AUM across each of the various products and strategies throughout calendar year 2024 were largely driven by the increases in the market value of Texas Pacific Land Corporation ("TPL") and Grayscale Bitcoin Trust, which have resulted in higher monthly management fees during 2025. The Company has also experienced net cash inflows into the various products and strategies and has increased its customer accounts during the quarter. The Company's operating income for the second quarter of $2.5 million was positively impacted by the increased revenues, which were only partially offset by a variety of higher operating expenses, including higher commissions and higher distribution costs. In addition, the second quarter included $0.9 million of various operating expenses and a $0.9 million non-cash goodwill impairment associated with the consumer products asset group with no comparable amounts in the second quarter of 2024. Advisor only Operating income, a non-GAAP measure, was $4.4 million for the second quarter of 2025, an increase of $3.0 million from 2024. The second quarter included $15.5 million of investment losses, net primarily from unrealized declines in the fair value of certain private placements held within the Company's consolidated investment products. Our clients' interests in these amounts are reflected in the redeemable noncontrolling interests, which was $12.9 million for the three months ended June 30, 2025. The Company experienced unrealized losses on investments of $15.4 million for the three months ended June 30, 2025, which was primarily the impact of a 20% decline in the fair value of TPL during the quarter. In addition, the Company's equity losses, net were $4.6 million from various equity interest holdings. These unrealized losses were partially offset by the unrealized gains of $3.4 million for the three months ended June 30, 2025 from its digital asset holdings. On August 8, 2025, the Company's Board of Directors declared a cash dividend of $0.071 per share, payable on September 15, 2025, to shareholders of record as of the close of business on August 21, 2025. Conference Call Murray Stahl, Chairman and Chief Executive Officer, and Mark Herndon, Chief Financial Officer, will host a conference call on Tuesday, August 19th, 2025 at 4:15 pm EDT. You may register for the conference call by clicking on the following link: https://attendee.gotowebinar.com/register/4072864197449531742 HORIZON KINETICS HOLDING CORPORATION Consolidated Statements of Operations (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 As Restated As Restated Revenue: Management and advisory fees $ 18,798 $ 11,323 $ 37,703 $ 23,315 Other income and fees 963 119 1,857 257 Total revenue 19,761 11,442 39,560 23,572 Operating expenses: Compensation, related employee benefits, and cost of goods sold 8,384 6,338 17,951 12,684 Sales, distribution and marketing 4,441 2,719 8,897 4,909 Depreciation and amortization 342 459 841 919 General and administrative expenses 2,971 2,090 5,850 4,734 Impairment of goodwill 900 - 900 - Expenses of consolidated investment products 217 501 1,312 1,065 Total operating expenses 17,255 12,107 35,751 24,311 Operating income (loss) 2,506 (665 ) 3,809 (739 ) Other income (expense): Equity earnings (losses), net (4,561 ) 1,711 (1,510 ) 2,231 Interest and dividends 454 181 945 370 Other income (expense) (190 ) (46 ) (241 ) (173 ) Investment and other income (losses) of consolidated investment products, net (15,533 ) 27,949 54,734 299,849 Interest and dividend income of consolidated investment products 1,887 4,780 4,792 8,606 Unrealized gain (loss) on digital assets, net 3,428 (1,296 ) 1,649 2,887 Realized gain (loss) on investments, net (2 ) 127 2,197 319 Unrealized gain (loss) on investments net (15,422 ) 8,942 (1,689 ) 13,622 Total other income, net (29,939 ) 42,348 60,877 327,711 Income before provision for income taxes (27,433 ) 41,683 64,686 326,972 Income tax (expense) benefit 4,083 (234 ) (6,201 ) (1,478 ) Net income $ (23,350 ) $ 41,449 $ 58,485 $ 325,494 Less: net income attributable to redeemable noncontrolling interests 12,861 (27,411 ) (46,133 ) (270,615 ) Net (loss) income attributable to Horizon Kinetics Holding Corporation $ (10,489 ) $ 14,038 $ 12,352 $ 54,879 Basic and diluted net (loss) income per common share: Net income (loss) $ (0.56 ) $ 0.78 $ 0.66 $ 3.05 Weighted average shares outstanding: Basic and diluted 18,635 17,984 18,635 17,984 HORIZON KINETICS HOLDING CORPORATION Consolidated Statements of Financial Condition (in thousands) June 30, December 31, 2025 2024 (Unaudited) Assets Cash and cash equivalents $ 38,854 $ 14,446 Fees receivable, net 7,316 8,670 Investments, at fair value 89,963 91,435 Assets of consolidated investment products Cash and cash equivalents 33,604 44,306 Investments, at fair value 1,749,698 1,746,850 Other assets 26,871 19,247 Other investments 23,775 13,443 Operating lease right-of-use assets 4,122 5,105 Property and equipment, net 112 99 Prepaid expenses and other assets 2,533 2,352 Due from affiliates 11 27 Digital assets 14,919 13,240 Intangible assets, net 43,715 44,531 Goodwill 23,525 24,425 Total assets $ 2,059,018 $ 2,028,176 Liabilities, Noncontrolling Interests, and Shareholders' Equity Liabilities: Accounts payable, accrued expenses and other $ 14,902 $ 22,011 Accrued third party distribution expenses 607 6,522 Deferred revenue 263 222 Liabilities of consolidated investment products Accounts payable and accrued expenses 3,828 1,486 Other liabilities 6,600 2,793 Deferred tax liability, net 96,083 95,683 Due to affiliates 7,806 11,597 Operating lease liability 6,112 7,379 Total liabilities 136,201 147,693 Commitments and contingencies (Note 11) Redeemable noncontrolling interests 1,573,332 1,540,312 Shareholders' equity Preferred stock, no par value, authorized 20,000 shares; no shares issued and outstanding - - Common stock; $0.10 par value, authorized 50,000 shares; issued and outstanding 18,635 shares, net of treasury stock; 1 share at June 30, 2025 and December 31, 2024, respectively 1,864 1,864 Additional paid-in capital 39,243 39,243 Retained earnings 308,378 299,064 Total shareholders' equity 349,485 340,171 Total liabilities, noncontrolling interests, and shareholders' equity $ 2,059,018 $ 2,028,176 Additional Information about our performance The Company consolidates certain private funds in order for the consolidated financial statements to conform with generally accepted accounting principles. As a result, the assets and liabilities of the applicable consolidated funds are presented on the Company's consolidated statements of financial condition. Additionally, an amount that represents the Company's clients' interests in these consolidated private funds will be presented as redeemable noncontrolling interests on the Company's consolidated statements of financial condition. The investment income (losses), other income (losses) and the expenses of the consolidated investment products will be presented within the Company's consolidated statements of operations. Additionally, an amount that represents the net income attributable to redeemable noncontrolling interests as well as the net income (loss) attributable to Horizon Kinetics Holding Corporation will be presented on the Company's consolidated statement of operations. Consolidated Investment Products ("CIPs") consist of certain private investment funds which are sponsored by the Company. The Company has no right to the CIPs' assets, other than its direct equity investments in them and investment management and other fees earned from them. The liabilities of the CIPs have no recourse to the Company's assets beyond the level of its direct investment, therefore the Company bears no other risks associated with the CIPs' liabilities. As indicated in the additional information presented in the tables below there are several notable presentational differences as a result of the consolidation of the CIPs: Management and advisory fees from CIPs, including incentive fees, are eliminated from consolidated revenues. Accordingly, our presentation without the CIPs reflects an increased revenue growth to $20.5 million, a 59% increase from the second quarter of 2024. The presentation of Operating income without the CIPs includes the revenues to the advisor and excludes the line item expenses of consolidated investment products. Management views this operating measure as a useful tool because it is prior to the impact of various fair value measurements of investments and digital assets, which can be volatile from quarter to quarter. The equity in earnings of private funds which results primarily from CIPs are eliminated from the consolidated presentation as that activity is included within the investment results of the CIPs. Accordingly, our presentation without the CIPs reflects an increased level of equity earnings that presents an increase in the value of our holdings within the CIPs. Stockholders' equity and net income attributable to Horizon Kinetics Holding Corporation are not impacted by the consolidation process. The Statement of Financial Condition without the consolidation of private funds presents lower total assets as a result of excluding the total assets held by the CIPs as well as the associated redeemable noncontrolling interests, which represents our clients' interests in these funds. A portion of the total assets held by private funds continues to relate to $254.5 million of economic interests held by Horizon Kinetics Holding Corporation, which is reflected in Other Investments in the presentation below. HORIZON KINETICS HOLDING CORPORATION Statements of Operations (Unaudited) (in thousands) (Advisor only: without consolidation of private funds) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue: Management and advisory fees $ 20,534 $ 12,886 $ 41,679 $ 26,801 Other income and fees 963 119 1,857 264 Total revenue 21,497 13,005 43,536 27,065 Operating expenses: Compensation, related employee benefits, and cost of goods sold 8,384 6,338 17,951 12,684 Sales, distribution and marketing 4,441 2,719 8,897 4,909 Depreciation and amortization 342 460 841 919 General and administrative expenses 2,980 2,030 5,894 4,690 Impairment of goodwill 900 - 900 - Expenses of consolidated investment products - - - - Total operating expenses 17,047 11,547 34,483 23,202 Operating income 4,450 1,458 9,053 3,863 Other income (expense): Equity in earnings of proprietary funds, net (7,290 ) 4,906 6,639 35,476 Interest and dividends 454 181 945 370 Other income (expense) (190 ) - (241 ) - Investment and other income (losses) of consolidated investment products, net - - - - Interest and dividend income of consolidated investment products - - - - Unrealized (loss) gain on digital assets, net 3,428 (1,343 ) 1,649 2,707 Realized gain on investments, net (2 ) 127 2,197 319 Unrealized gain (loss) on investments net (15,422 ) 8,943 (1,689 ) 13,622 Total other income (expense), net (19,022 ) 12,814 9,500 52,494 Income before provision for income taxes (14,572 ) 14,272 18,553 56,357 Income tax (expense) benefit 4,083 (234 ) (6,201 ) (1,478 ) Net income $ (10,489 ) $ 14,038 $ 12,352 $ 54,879 Less: net income attributable to redeemable noncontrolling interests - - - - Net income Attributable to Horizon Kinetics Holding Corporation $ (10,489 ) $ 14,038 $ 12,352 $ 54,879 Basic and diluted net income per common share: Net income $ (0.56 ) $ 0.78 $ 0.66 $ 3.05 Weighted average shares outstanding: Basic and diluted 18,635 17,984 18,635 17,984 Six Months Ended June 30, 2025 Consolidated Company Entities Consolidated Investment Products Eliminations Consolidated Revenue: Management and advisory fees $ 41,679 $ - $ (3,976 ) $ 37,703 Other income and fees 1,857 - 1,857 Total revenue 43,536 - (3,976 ) 39,560 Operating expenses: Compensation, related employee benefits, and cost of goods sold 17,951 - - 17,951 Sales, distribution and marketing 8,897 - - 8,897 Depreciation and amortization 841 - - 841 General and administrative expenses 5,894 - (44 ) 5,850 Impairment of goodwill 900 - - 900 Expenses of consolidated investment products - 1,268 44 1,312 Total operating expenses 34,483 1,268 - 35,751 Operating income 9,053 (1,268 ) (3,976 ) 3,809 Other income (expense): Equity in earnings of proprietary funds, net 6,639 - (8,149 ) (1,510 ) Interest and dividends 945 - - 945 Other income (expense) (241 ) - - (241 ) Investment and other income (losses) of consolidated investment products, net - 54,734 - 54,734 Interest and dividend income of consolidated investment products - 4,792 - 4,792 Management fees of consolidated investment products - 3,758 (3,758 ) - Unrealized (loss) gain on digital assets, net 1,649 - - 1,649 Realized gain on investments, net 2,197 - - 2,197 Unrealized gain (loss) on investments net (1,689 ) - - (1,689 ) Total other income (expense), net 9,500 63,284 (11,907 ) 60,877 Income (loss) before provision for income taxes 18,553 62,016 (15,883 ) 64,686 Income tax (expense) benefit (6,201 ) - - (6,201 ) Net income (loss) $ 12,352 $ 62,016 $ (15,883 ) $ 58,485 Less: net income attributable to redeemable noncontrolling interests - (47,514 ) 1,381 (46,133 ) Net income (loss) attributable to Horizon Kinetics Holding Corporation $ 12,352 $ 14,502 $ (14,502 ) $ 12,352 HORIZON KINETICS HOLDING CORPORATION Statements of Financial Condition (Unaudited) (in thousands) (Advisor only: without consolidation of private funds) June 30, December 31, 2025 2024 Assets Cash and cash equivalents $ 38,854 $ 14,446 Fees receivable 8,982 59,047 Investments, at fair value 89,963 91,435 Assets of consolidated investment products Cash and cash equivalents - - Investments, at fair value - - Other assets - - Other Investments 248,520 228,870 Operating lease right-of-use assets 4,122 5,105 Property and equipment, net 112 99 Prepaid expenses and other assets 2,533 2,353 Due from affiliates 13 34 Digital assets 14,919 13,240 Intangible assets, net 43,715 44,531 Goodwill 23,525 24,425 Total Assets $ 475,258 $ 483,585 Liabilities, Noncontrolling Interests, and Shareholders' Equity Liabilities: Accounts payable, accrued expenses and other $ 14,902 $ 22,011 Accrued third party distribution expenses 607 6,522 Deferred revenue 263 222 Liabilities of consolidated investment products Accounts payable and accrued expenses - - Other liabilities - - Deferred tax liability, net 96,083 95,683 Due to affiliates 7,806 11,597 Operating lease liability 6,112 7,379 Total Liabilities 125,773 143,414 Commitments and contingencies Redeemable Noncontrolling Interests - - Shareholders' Equity Preferred stock, no par value, authorized 20,000 shares; no shares issued and outstanding - - Common stock; $0.10 par value, authorized 50,000 shares; issued and outstanding 18,635 shares, net of treasury stock; 1 share at June 30, 2025 and December 31, 2024, respectively 1,864 1,864 Additional paid-in capital 39,243 39,243 Retained earnings 308,378 299,064 Total Shareholders' Equity 349,485 340,171 Total Liabilities, Noncontrolling Interests, and Shareholders' Equity $ 475,258 $ 483,585 June 30, 2025 Consolidated Company Entities Consolidated Investment Products Eliminations Consolidated Assets Cash and cash equivalents $ 38,854 $ - $ - $ 38,854 Fees receivable 8,982 - (1,666 ) 7,316 Investments, at fair value 89,963 - - 89,963 Assets of consolidated investment products Cash and cash equivalents - 33,604 - 33,604 Investments, at fair value - 1,782,188 (32,490 ) 1,749,698 Other assets - 26,871 - 26,871 Other investments 248,520 - (224,745 ) 23,775 Digital assets 14,919 - - 14,919 Intangible assets, net 43,715 - - 43,715 Goodwill 23,525 - - 23,525 Other assets 6,780 - (2 ) 6,778 Total assets $ 475,258 $ 1,842,663 $ (258,903 ) $ 2,059,018 Liabilities, Noncontrolling Interests, and Shareholders' Equity Liabilities: Accounts payable, accrued expenses and other $ 14,902 $ - $ - $ 14,902 Accrued third party distribution expenses 607 - - 607 Deferred revenue 263 - - 263 Liabilities of consolidated investment products Accounts payable and accrued expenses - 3,830 (2 ) 3,828 Due to affiliates - 1,731 (1,731 ) - Other liabilities - 7,840 (1,240 ) 6,600 Deferred tax liability, net 96,083 - - 96,083 Due to affiliates 7,806 - - 7,806 Operating lease liability 6,112 - - 6,112 Total liabilities 125,773 13,401 (2,973 ) 136,201 Commitments and contingencies Redeemable noncontrolling interests - 1,641,826 (68,494 ) 1,573,332 Equity interests 349,485 187,436 (187,436 ) 349,485 Total liabilities, noncontrolling interests, and shareholders' equity $ 475,258 $ 1,842,663 $ (258,903 ) $ 2,059,018 Non-GAAP Measures In discussing financial results, the Company presented tables without the consolidation of certain private funds (also labeled "Advisor only") which is not in accordance with Generally Accepted Accounting Principles (GAAP). We use this non-GAAP financial measure internally to make operating and strategic decisions, including evaluating our overall performance and as a factor in determining compensation for certain employees. We believe presenting this non-GAAP financial measure provides additional information to facilitate comparison of our historical operating costs and their trends, and provides additional transparency on how we evaluate our financial condition and results of operations. We also believe presenting this measure allows investors to view our financial condition and results of operations using the same measure that we use in evaluating our performance and trends. Note Regarding Forward-Looking Statements This news release may contain "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "assumptions," "target," "guidance," "strategy," "outlook," "plans," "projection," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe", "potential," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's subsequent Quarterly Reports on Form 10-Q and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent filings with the Securities and Exchange Commission. About Horizon Kinetics Holding Corporation Horizon Kinetics Holding Corporation (OTCID:HKHC) primarily offers investment advisory services through its subsidiary Horizon Kinetics Asset Management LLC ("HKAM"), a registered investment adviser. HKAM provides independent proprietary research and investment advisory services for mainly long-only and alternative value-based investing strategies. The firm also obtained a portfolio of consumer products, which are marketed and distributed in the retail marketplace, as a result of its August 2024 merger with Scott's Liquid Gold-Inc. The firm's offices are located in New York City, White Plains, New York, and Summit, New Jersey. For more information, please visit http://www.hkholdingco.com . Investor Relations Contact: [email protected] SOURCE: Horizon Kinetics Holding Corporation View the original press release on ACCESS Newswire https://app.accessnewswire.com/img.ashx?id=1060051 © Copyright 2025 ACCESS Newswire. All Rights Reserved.

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