Horizon Kinetics (HKHC) Q1 2026 earnings summary

Executive summary

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

• Management and advisory fees decreased 3.7% year-over-year due to lower mutual fund fees, partially offset by higher ETF revenues and significant incentive fees 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 incentive fee realization.

• Incentive fees of $18.1 million were earned from private funds after the expiration of trading restrictions on MIAX investments.

• Board declared a $0.127 per share cash dividend, payable June 17, 2026, for shareholders of record as of May 27, 2026.

Financial highlights

• Total revenue for the quarter was $18.3 million (consolidated), down from $19.0 million year-over-year; advisor-only revenue was $39.0 million, up 84% year-over-year.

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

• Operating loss (GAAP) was $4.3 million, compared to operating income of $1.7 million in the prior year; advisor-only operating income was $17.1 million.

• Other income (advisor-only) was $85.5 million, mainly from unrealized gains and equity in earnings of private funds.

• Investment income from consolidated products was $192.5 million, with $135.7 million attributed to redeemable noncontrolling interests.

Outlook and guidance

• 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.