Horizon Kinetics Holding Corp. reported a net loss of $18.4 million in the second quarter of 2026, equating to a loss of $0.99 per share on an adjusted basis, as the asset manager navigated a challenging quarter marked by shifting revenue streams and rising expenses.
The loss contrasted with a $113 million GAAP net loss, which included $95 million attributable to redeemable non-controlling interests in its consolidated investment products. Management and advisory revenues remained essentially flat year-over-year at $18.8 million, while adjusted revenue edged up to $19.04 million. Operating income fell 19% to $3.0 million, pressured by a 5.5% rise in operating expenses to $16.1 million.
Assets under management totaled $10.8 billion as of June 30, 2026, down from $11.4 billion in the prior quarter but up from $9.6 billion at the end of 2025. Revenue growth was driven by a 30% year-over-year increase in ETF sales, led by the Inflation Beneficiaries ETF, while separately managed account revenue rose 8.6%. Mutual fund revenue, however, declined 17%.
The company maintained a debt-free balance sheet with $34.3 million in cash and $105 million in its investment portfolio. Digital assets holdings stood at $8.3 million, with private funds and investments totaling approximately $263 million. The current ratio was 2.48, and the debt-to-equity ratio remained low at 0.07.
Horizon Kinetics’ stock slipped 0.55% to $27.00 following the report, with shares last trading at $26.65, down 1.84% from the pre-earnings level of $27.15. The company’s P/E ratio stood at 8.9, with a dividend yield of 1.96% and a market capitalization of $496.6 million. Shares have traded within a 52-week range of $22.51 to $39.49.
Executives highlighted the firm’s strategic focus on high-return companies outside broad indices, with Co-CEO Peter Doyle noting the contributions of staff following the death of founder Murray Rosenthal. Co-CEO Steven Bregman emphasized valuation discipline, citing the firm’s positioning around critical resources for AI data centers and confidence in portfolio performance even amid inactivity.
Operating expenses rose due to overlapping office relocations in New York, while a targeted marketing campaign is set to launch in early September 2026, leveraging databases to target holders of competing ETF products.
