Horizon Kinetics (HKHC) investor relations material

Executive summary

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

• Management and advisory fees remained stable year-over-year at $18.8 million for Q2 2026, with ETF revenues up 30% and SMA revenues up 8.6%, offset by declines in mutual fund fees.

• Net income attributable to the company was $54.2 million for the six months ended June 30, 2026, up from $12.4 million in the prior year period, reflecting higher incentive fees and investment gains, while Q2 2026 saw a net loss of $18.4 million.

• Incentive fees of $18.4 million were earned in H1 2026, primarily from private funds, compared to none in the prior year.

• Board declared a $0.13 per share dividend for Q3 2026, payable September 10, 2026.

Financial highlights

• Total revenue for Q2 2026 was $19.0 million, nearly unchanged from Q2 2025, with a 0.7% increase driven by ETF and SMA growth, offset by a 17% decline in mutual fund revenues.

• Operating income for Q2 2026 was $3.0 million (GAAP), down from $3.7 million in Q2 2025, due to higher compensation and administrative expenses.

• Net income attributable to the company for Q2 2026 was a loss of $18.4 million, compared to a loss of $10.5 million in Q2 2025, due to significant losses in consolidated investment products.

• For the six months ended June 30, 2026, investment income from consolidated products was $77.3 million; net income attributable to redeemable noncontrolling interests was $41.2 million.

• Significant unrealized losses in Q2 2026 included $21.2 million from equity in private funds, $8.0 million from investments, and $1.4 million from digital assets.

Outlook and guidance

• Management expects continued volatility in incentive fees due to market conditions and performance hurdles.

• Cash and cash equivalents of $34.3 million are expected 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 in annual and quarterly SEC filings.

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