Horizon Kinetics (HKHC) investor relations material

Executive summary

• Total revenue for Q2 2025 increased 66% year-over-year to $19.8 million, driven by higher management fees and new consumer product sales after the August 2024 merger.

• Assets under management reached $10.5 billion as of June 30, 2025, up 43% year-over-year but down 3% sequentially due to market value declines in key holdings.

• Net loss attributable to shareholders was $10.5 million, or $(0.56) per share, compared to net income of $14.0 million in Q2 2024, mainly due to $15.5 million in investment losses and a $0.9 million goodwill impairment.

• Operating income improved to $2.5 million from a loss of $0.7 million in Q2 2024.

• Board declared a $0.071 per share dividend, a 27% increase from Q1, payable September 15, 2025.

Financial highlights

• Management and advisory fees rose to $18.8 million, up 66% year-over-year.

• Operating expenses increased 43% year-over-year to $17.3 million, driven by higher compensation, marketing, and G&A costs.

• Cash and cash equivalents at June 30, 2025, were $38.9 million, up from $14.4 million at year-end 2024.

• Net cash provided by investing activities was $23.8 million for the first half of 2025.

• Net cash used in operating activities was $22.3 million for the first half of 2025.

Segment performance

• Asset management segment revenue for Q2 2025 was $20.6 million, with operating income of $2.5 million.

• Consumer products segment contributed $1.7 million in revenue and recorded a $0.9 million goodwill impairment.

• Management and advisory fee revenue growth attributed to increases in AUM across separately managed accounts, ETFs, mutual funds, and private funds.

• Advisor-only operating income (non-GAAP) was $4.4 million, up $3.0 million year-over-year.

• Proprietary capital returns were negative this quarter, and episodic performance fees are mainly assessed at year-end.