Horizon Kinetics (HKHC) investor relations material

Executive summary

• Leadership expressed confidence in the firm's stability and future following the passing of a key founder, emphasizing the strength of the current team and robust idea generation.

• The investment philosophy remains focused on high-return, niche businesses outside major indices, diverging from conventional portfolio theory and indexation.

• Assets under management (AUM) rose to $10.8 billion as of June 30, 2026, up 13% from year-end, driven by market value increases in Texas Pacific Land Corporation (TPL), offset by declines in Grayscale Bitcoin Trust (GBTC).

• Management and advisory fee revenues were $18.8 million for Q2 2026, flat year-over-year, with ETF and SMA growth offset by mutual fund declines.

• Net income attributable to the company was $54.2 million for H1 2026, up from $12.4 million in the prior year, reflecting higher incentive fees and investment gains.

Financial highlights

• GAAP management and advisory revenues for Q2 2026 were $18.8 million, flat year-over-year.

• Operating income for Q2 2026 was $3.0 million, down from $3.7 million in Q2 2025, impacted by higher expenses and a shift in revenue mix.

• ETF revenues grew 30% and SMA revenues rose 8.6% in Q2 2026, while mutual fund revenues fell 17%.

• Net loss attributable to shareholders was $18.4 million ($0.99 per share) for Q2 2026, primarily due to investment losses in consolidated products.

• Year-to-date GAAP net income was $54.2 million ($2.91 per share), supported by strong Q1 incentive fees.

Outlook and guidance

• Management remains optimistic about future performance, citing strong business fundamentals and ongoing opportunity identification.

• The firm expects continued volatility in quarterly results due to market-driven AUM changes and incentive fee timing.

• Enhanced marketing efforts for ETFs and other products are expected to drive future AUM growth, with results anticipated by late 2026.

• Cash and cash equivalents of $34.3 million are expected to be sufficient to fund operations for at least one year.

• A quarterly dividend policy is in place, with a $0.13 per share dividend declared for Q3 2026.