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Horizon Kinetics Holding Corporation — Third Quarter 2026 Earnings Summary

HKHC

  • Financial Performance:

    • Management and advisory fees were $17.8 million for the three months ended September 30, 2026, unchanged from the same period in 2025; year-to-date fees were $54.8 million, down 1.2% from $55.5 million in 2025.
    • Total revenue was $18.0 million for the quarter, up 0.8% from $17.9 million in 2025; year-to-date total revenue was $55.4 million, down 0.8% from $55.8 million in 2025.
    • Operating income was $1.8 million (GAAP) for the quarter, down from $2.9 million in 2025; year-to-date operating income was $0.4 million, down from $8.3 million in 2025.
    • Non-GAAP advisor-only operating income was $4.3 million for the quarter, down from $5.5 million in 2025; year-to-date advisor-only operating income was $26.3 million, up from $16.1 million in 2025.
    • Net loss attributable to Horizon Kinetics Holding Corporation was $18.4 million ($0.98 per share) for the quarter, compared to net income of $7.2 million ($0.39 per share) in 2025; year-to-date net income was $35.8 million ($1.92 per share), up from $19.6 million ($1.05 per share) in 2025.
    • The quarterly net loss was driven by a $54.0 million unrealized loss on investments of consolidated investment products, partially offset by a $3.8 million unrealized gain on digital assets.
    • Total operating expenses were $16.3 million for the quarter, up 8.9% from $14.9 million in 2025; year-to-date expenses were $55.0 million, up 15.7% from $47.5 million in 2025.
    • Assets under management (AUM) were $10.0 billion as of September 30, 2026, a decrease of 7.3% from $10.8 billion at June 30, 2026, but an increase of 3.9% from $9.6 billion at December 31, 2025.
    • Cash and cash equivalents were $36.4 million as of September 30, 2026, compared to $36.9 million at December 31, 2025.
    • Total shareholders' equity was $367.7 million as of September 30, 2026, up from $339.0 million at December 31, 2025.

  • Guidance and Future Outlook:

    • No specific forward guidance, future growth targets, or long-term financial outlooks were provided in the press release.

  • Business Segments and Product Lines:

    • ETF revenues increased 26% for the quarter and 30% year-to-date, driven by the Inflation Beneficiaries ETF.
    • Separately managed account (SMA) revenues grew 2.0% for the quarter and 4.3% year-to-date.
    • Mutual fund revenues decreased, offsetting growth in ETFs and SMAs.
    • AUM growth year-to-date was primarily driven by a 13.4% increase in the market value of Texas Pacific Land Corporation (TPL).
    • Year-to-date net outflows occurred primarily from private funds holding shares of Miami International Holdings, Inc., following the expiration of trading restrictions after its 2025 IPO.
    • Consolidated Investment Products (CIPs) generated $18.1 million in incentive fees in the first quarter of 2026 related to Miami International Holdings, Inc.

  • Market and Competitive Landscape:

    • No specific market share data, competitor comparisons, or detailed market trend analysis was included in the press release.

  • Risks and Challenges:

    • The company faces volatility from unrealized declines in the fair value of key investment holdings, including consolidated investment products.
    • Operating expenses increased due to higher general and administrative costs associated with new replacement office leases, including impairment of right-of-use assets and overlapping lease terms in New York.
    • AUM decreased 7.3% in the quarter due to market value fluctuations and net outflows.
    • The company consolidates private funds, which impacts the presentation of assets, liabilities, and revenue in GAAP financial statements.

  • Management Commentary and Tone:

    • Management noted that ETF growth was "more than offset by decreased revenues from our mutual funds."
    • The tone regarding the quarterly net loss was explanatory, attributing it to unrealized declines in investment holdings, while noting the year-to-date period reflected unrealized gains.
    • No direct quotes from Co-CEOs or the CFO were included in the text, though a conference call was announced.

  • Other Key Points:

    • The Board of Directors declared a cash dividend of $0.13 per share, payable on December 10, 2026, to shareholders of record as of November 23, 2026.
    • The Board authorized a 3-year stock repurchase program allowing the repurchase of up to $25.0 million of outstanding common stock.
    • The repurchase program may be funded from existing cash and cash equivalents and executed via open market purchases, block trades, or privately negotiated transactions.
    • Conference call scheduled for November 17, 2026, at 4:15 pm EST with Co-CEOs Peter Doyle and Steve Bregman and CFO Mark Herndon.
    • The company holds economic interests of $219.5 million in Consolidated Investment Products as of September 30, 2026.