FRMO (FRMO) Q4 2024 earnings summary

Executive summary

• Achieved net income of $118.5 million for FY2024, reversing a prior year net loss of $31.8 million, driven by significant unrealized gains from investments and digital assets.

• Total assets increased to $439.2 million as of May 31, 2024, up from $303.5 million a year earlier.

• Revenue surged to $138.4 million in FY2024, compared to a loss of $33.1 million in FY2023, primarily due to strong investment performance.

• Earnings per share improved to $1.65 from a loss of $0.29 per share year-over-year.

Financial highlights

• Unrealized gains from equity securities and digital assets totaled $66.2 million and $6.3 million, respectively, in FY2024.

• Digital assets at fair value rose to $11.0 million from $4.2 million year-over-year.

• Equity securities at fair value increased to $221.7 million from $155.5 million.

• Cash and cash equivalents stood at $39.2 million at year-end, up from $38.1 million.

• Deferred tax liability increased to $33.7 million from $16.0 million.

Outlook and guidance

• Early adoption of new FASB guidance for digital assets, now measured at fair value, with expanded disclosures.

• Subsequent to year-end, Horizon Kinetics completed a merger, with FRMO receiving 823,863 shares in the new entity.