FRMO Corp.

FRMO reported net income attributable to FRMO of $83 million for the quarter, bringing year-to-date net income to just shy of $57 million. The quarter was primarily driven by unrealized gains in TPL, which rose 82% during Q3 and is up 40% year-to-date, and in Horizon Kinetics Holding Corporation, whose share price increased by over 20% during Q3. MIAX was also cited as a strong driver, up about 80% from the prior year-end, while Bitcoin declined 26% in the third quarter and is down 36% year-to-date, weighing on crypto-related exposure. The company also said consulting and advisory fees decreased versus the prior year because Horizon Kinetics did not benefit from significant incentive fees in the third quarter. On the balance sheet, FRMO said it has over $45 million of cash and is debt-free as of February following the sale of its land and building. No formal revenue, EPS, gross margin, or next-quarter/full-year guidance was provided on this call.

Peter Doyle’s tone was reflective and emotional, centered on Murray Stahl’s death and on continuity of the firm’s philosophy. Strategically, he emphasized long time horizons, scarce assets, royalties, optionality, and building FRMO into an operating company, saying the goal remains to increase the Winland stake to above 50% in an orderly manner. He also pointed to crypto mining, exchange-related relationships, and other research-driven opportunities as evidence that the firm still has a pipeline of ideas.

David Arndt said quarter results were dominated by unrealized gains, with net income attributable to FRMO of $83 million and year-to-date net income of just shy of $57 million. He highlighted over $45 million of cash, a debt-free balance sheet, and increased deferred tax liability tied to higher investment values. He also noted that investment gains were partly offset by Bitcoin-related losses and that consulting and advisory fees fell because Horizon Kinetics did not receive the same level of incentive fees as in the prior-year quarter.

Analyst questions focused on Winland, the company’s stock performance, Murray Stahl’s FRMO ownership, and the status of MIH/MIAX holdings. Management said the apparent increase in Murray’s share count was a reporting error from omitted affiliated holdings, not new purchases, and said it was unaware of any sale. On MIH/MIAX, they said previously restricted shares are now unrestricted or eligible to be unrestricted. They also addressed FRMO’s stock-price underperformance by arguing that intrinsic value can compound for long periods before the market recognizes it, and that they are more focused on long-term asset growth than short-term stock moves.