Horizon Kinetics (HKHC) Q1 2026 earnings summary

Executive summary

• Assets under management (AUM) rose 19% year-over-year to $11.4 billion, driven by a 65% increase in Texas Pacific Land Corporation holdings, despite a 23% decline in bitcoin-related holdings and net outflows from private funds.

• Net income attributable to shareholders surged to $72.5 million ($3.89 per share), up from $22.8 million ($1.23 per share) in the prior year, reflecting strong investment performance and significant incentive fee realization.

• Management and advisory fees decreased 3.7% year-over-year to $18.3 million, mainly due to lower mutual fund fees, partially offset by higher ETF revenues and significant incentive fees from private funds.

• Leadership transition followed the unexpected passing of Murray Stahl, with co-CEOs reaffirming commitment to the firm's long-term, value-oriented investment philosophy and operational continuity.

• Staff enthusiasm and engagement remain high, with a focus on maintaining and building upon the organization's legacy.

Financial highlights

• GAAP revenues for Q1 2026 were $18.3 million, with net income attributable to shareholders at $72.5 million ($3.89 per share), and basic and diluted EPS from continuing operations at $3.89, up from $1.25 in the prior year.

• Assets under management (AUM) rose to $11.4 billion as of March 31, 2026, up from $9.6 billion at year-end 2025.

• Performance incentive fees of $18.1 million were recorded, driven by expiring trading restrictions on Miami International Holdings investments.

• Operating expenses increased to $22.6 million from $17.3 million, mainly due to higher compensation and marketing costs linked to incentive fees.

• GAAP operating loss was $4.3 million, but advisor-only operating income was $17.1 million after adjusting for incentive-related items.

Outlook and guidance

• Management expects continued volatility in quarterly and annual results due to incentive fees and unrealized gains or losses, especially from digital assets and strategic investments.

• Remaining unearned incentive fees from private funds are approximately $5.5 million, expected to be resolved in Q4 2026, subject to market performance.

• Management expects cash and cash equivalents to be sufficient to fund operations for at least one year.

• Forward-looking statements caution that actual results may differ due to risks and uncertainties, with further details available in annual and quarterly SEC filings.