FRMO (FRMO) Q2 2025 earnings summary

Executive summary

• Book value per share reached $9.39 as of November 30, 2024, with shareholders' equity at $413.6 million and approximately 44 million shares outstanding.

• Net income for the six months ended November 30, 2024 was $418.3 million, up from $67.9 million for the same period last year, driven by significant unrealized gains from investments.

• Major holdings include Texas Pacific Land (TPL), Grayscale Bitcoin Trust (GBTC), Bitcoin Mini Trust (BTC), Miami International Holdings, and Winland.

• The company completed a transition in its equity interest following the merger of Horizon Kinetics LLC with Scott's Liquid Gold Inc., now Horizon Kinetics Holding Corporation.

• Uplisting to a higher exchange is a strategic priority, with board expansion to support this goal.

Financial highlights

• Revenue for the six months ended November 30, 2024 was $466.0 million, up from $78.6 million year-over-year, primarily due to $342.8 million in unrealized gains from equity securities.

• Net income per share (basic and diluted) for the six months was $3.89, compared to $0.84 for the prior year period.

• Deferred tax liability stands at $78.7 million, mainly related to unrealized gains on long-held securities.

• Securities sold short, particularly path-dependent ETFs, contributed to cash balances and profitability.

• Cash and cash equivalents rose to $41.5 million as of November 30, 2024.

Outlook and guidance

• Management plans to continue holding major positions in TPL and Bitcoin, acknowledging potential for future volatility.

• Interim results may not be indicative of full-year performance due to the nature of investment gains and market volatility.

• Further investments in cryptocurrency mining and data center-related assets are expected, with gradual scaling to mitigate technological obsolescence risk.

• Uplisting and increased transparency remain key near-term objectives.