Horizon Kinetics Holding Corporation

For the second quarter of 2026, GAAP management and advisory revenues were $18.8 million, essentially unchanged from the prior-year quarter. Operating income was $3 million, down 19% year over year, and operating expenses were $16.1 million, up 5.5%. The company reported a quarterly net loss of approximately $113 million, including $95 million attributable to redeemable noncontrolling interests, and net loss attributable to Horizon Kinetics shareholders was $18.4 million, or $0.99 per share. AUM was $10.8 billion at June 30, up from $9.6 billion at December 31, 2025, but down from $11.4 billion at the end of the first quarter. For the first six months, management and advisory fee revenue was $59.0 million versus $41.7 million a year ago, and GAAP net income was $54.2 million, or $2.91 per share. The board declared a $0.13 per share dividend payable September 10, 2026, bringing trailing 12-month dividend declarations to $0.484 per share. No third-party debt was reported, and cash was $34.3 million, alongside a $105 million investment portfolio and $8.3 million of digital assets. Management did not provide formal next-quarter or full-year financial guidance.

Peter Doyle focused on continuity after Murray’s passing and said the firm has talented people stepping up, with idea generation and analytical work continuing uninterrupted. Strategically, he stressed Horizon Kinetics’ preference for owning high-return, durable businesses and for exploiting market inefficiencies created by short time horizons and index-driven behavior. He also said the firm is seeing new opportunities, including securities and private deals, and remains confident about future results, while acknowledging the need to improve distribution for its ETF products.

Mark Herndon emphasized that operating income is the best proxy for cash generated by the asset-management business, while noting GAAP results remain volatile because of unrealized gains and losses in investments and digital assets. He highlighted the quarter’s $18.8 million of revenue, $3 million of operating income, and $16.1 million of operating expenses, with higher rent and occupancy costs from a planned move to two New York locations. On the balance sheet, he pointed to $34.3 million of cash, $105 million of investments, $8.3 million of digital assets, about $263 million of private fund interests, no third-party debt, and an approximately $18 million increase in operating lease liability from the new office leases. He also noted approximately $8.3 million of unearned incentive fees at June 30 and said third-quarter expense pressure should still reflect a full quarter of overlap from the office move.

In Q&A, management was asked about lower AUM, the marketing approach for the Japan and ETF products, and how new investments are allocated across vehicles. Peter Doyle said most of the mutual-fund AUM decline came from one large redemption that had been initiated while Murray was still alive, and he said that in future such redemptions would likely be handled in kind. On marketing, management said it will shift toward targeted outreach using databases and focusing on holders of similar ETFs, with a read on progress expected by mid-October or November. On new investments, they said allocation is case by case depending on suitability, timing, liquidity, and whether the opportunity fits client portfolios after-tax.