FRMO (FRMO) Q1 2026 earnings summary

Executive summary

• Reported a mark-to-market loss due to a decline in Texas Land Trust shares and significant unrealized losses from equity securities, with no shares sold and cash increasing to $25 million.

• Interim financials for the quarter ended August 31, 2025, reviewed by an independent auditor with no material modifications required for US GAAP conformity.

• No changes in control, shell status, or significant legal or regulatory issues during the period.

• Focus remains on building an operating company around cryptocurrency, with a 44% stake in Winland and ongoing expansion in Scrypts mining (Dogecoin and Litecoin).

• Short sale positions in path-dependent ETFs now exceed $11 million at cost, contributing significantly to cash reserves.

Financial highlights

• Total assets decreased to $649.1M as of August 31, 2025, from $713.4M at May 31, 2025.

• Net loss attributable to the company was $(15.9)M for the quarter, compared to net income of $34.5M in the prior year quarter.

• Cash and cash equivalents increased to $45.0M from $43.9M at May 31, 2025.

• Dividend income dropped from $4.4 million in August 2024 to $1.1 million in August 2025 due to the absence of a prior extraordinary dividend from Wasabi Trust.

• Direct Bitcoin holdings are approximately 259 coins, with most exposure through ETFs and indirect holdings via Winland and Consensus Mining.

Outlook and guidance

• Management notes that interim results may not be indicative of full-year performance.

• Plans to continue gradual accumulation in royalty companies, cryptocurrency mining equipment, and shorting path-dependent ETFs to manage risk and obsolescence.

• Intends to eventually increase visibility and liquidity of the stock, but no immediate timeline due to management bandwidth.

• If Winland ownership surpasses 50%, consolidation will occur, changing financial statement presentation and potentially shifting valuation from book value to earnings multiple.

• No material impact expected from recently issued accounting pronouncements.