FRMO Corporation (FRMO)
OTHER OTC:FRMO
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FRMO
(OTC:FRMO)
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Rating:56Neutral
Price Target:
$7.50
▼(-1.83% Downside)
Action:ReiteratedDate:04/09/26
The score is held back primarily by unstable financial performance (sharp TTM earnings/revenue deterioration) and weak technical momentum (below major moving averages with negative MACD). Offsetting factors include a very strong, low-debt balance sheet and generally positive cash generation, plus a constructive earnings-call tone around liquidity and strategic positioning, though near-term filing/tax uncertainty and halving/capex risks add caution.
Positive Factors
Very low leverage / strong balance sheet
FRMO's near-zero leverage and substantial equity base provide durable solvency and strategic optionality. A conservative balance sheet lowers default risk, permits opportunistic purchases or support for portfolio companies, and helps the firm endure investment-cycle volatility without forced asset sales.
Negative Factors
Highly volatile earnings and recent TTM loss
FRMO's earnings are driven by mark-to-market and realized investment outcomes, producing large swings and a recent TTM loss. This volatility undermines predictability for cash returns and capital planning, complicates forecasting, and raises the risk that profitable annual results may not persist under adverse market cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
FRMO's near-zero leverage and substantial equity base provide durable solvency and strategic optionality. A conservative balance sheet lowers default risk, permits opportunistic purchases or support for portfolio companies, and helps the firm endure investment-cycle volatility without forced asset sales.
Read all positive factors
FRMO (FRMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$306.40M
Dividend YieldN/A
Average Volume (3M)9.83K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-6.81%
EPS Growth-23.44%
CountryUS
Employees5
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)N/A
Shares Outstanding44,022,780
10 Day Avg. Volume11,479
30 Day Avg. Volume9,827
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.06
Price to Sales (P/S)1.42
P/FCF Ratio48.60
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue-2.26
Enterprise Value/Gross Profit-1.32
Enterprise Value/Ebitda-0.84
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FRMO Business Overview & Revenue Model
Company Description
FRMO Corporation, through its 4.95% interest in Horizon Kinetics, LLC, operates as an investment advisory and independent research company. It provides in-depth analysis of information-poor, under-researched companies, and strategies to identify t...
How the Company Makes Money
FRMO primarily makes money through investment returns generated from its portfolio holdings rather than through selling a standalone operating product. Key potential revenue and earnings drivers typically include: (1) gains from the sale of invest...
FRMO Earnings Call Summary
Earnings Call Date:Jan 08, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
Overall the call conveyed a predominantly positive tone driven by a stronger balance sheet (debt-free, high liquidity), strategic repositioning into exchange and supporting-crypto businesses (Synteq, MIAX), an efficient merged-mining approach that supports Bitcoin accumulation, and constructive industry observations (stablecoin growth, tokenization benefits). Notable risks discussed include the near-term disruption and equipment-replacement pressures associated with the multi-year halving cycle, a recent tax-related filing delay, and limited recent mining capex which could require future spending. On balance, the positives (liquidity, strategic stakes, mining efficiency, successful exchange IPO) outweigh the lowlights (filing delay, halving risk, capex timing and reporting nuances).Positive Updates
Company Now Debt-Free
Sold building previously housing HashMaster and used proceeds (partial) to repay mortgage to zero, resulting in no corporate debt and the most liquid balance sheet in company history with significant unused borrowing capacity.
Negative Updates
Delayed Filing and Meeting Due to Tax Dispute
Quarterly filing and meeting were delayed owing to a dispute over potential tax liability related to security sales, prompting an apology from management and scheduling of a follow-up meeting in ~6 weeks; this creates short-term reporting uncertainty.
Read all updates
Q2-2026 Updates
Positive
Negative
Company Now Debt-Free
Sold building previously housing HashMaster and used proceeds (partial) to repay mortgage to zero, resulting in no corporate debt and the most liquid balance sheet in company history with significant unused borrowing capacity.
Read all positive updates
Company Guidance
The call guided investors to expect a follow-up meeting in about six weeks to review February results and a likely different tax number as market values change, and emphasized preparing for the next Bitcoin halving (around April 18, 2028, roughly two years away); FRMO is debt-free (mortgage repaid), says it has its strongest liquidity and unused borrowing capacity, owns roughly 45% of Winland (will consolidate if >50%), and Murray Stahl personally holds just over 8 million shares; mining metrics noted digital mining assets/depreciation of about $31,000 and a ~$36,000 increase in digital‑asset cost basis in the six‑month period (assets mined), a three‑year depreciation policy, and a shift toward Scrypt (merged) mining; market/context numbers cited included Bitcoin 24‑hour volume ~$18.7B, Bitcoin market cap ~$1.3–1.4T with ~20M of a 21M cap mined, Litecoin 24‑hour volume ~ $10B and market cap ~$4.2B (≈3x Ethereum volume), Dogecoin 24‑hour volume ~$161M, the stablecoin market approaching ~$0.5T, Abaxx’s market value cited near ~$1.4B, and MIAX holdings reported ~935,202 restricted + ~11,441 public (~946k total), with diluted‑share variations driven by outstanding director options.FRMO Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | May 2024 | May 2023 | May 2022 | May 2021 | May 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -115.89M | 263.36M | 138.43M | 7.27M | 4.82M | 3.00M |
| Gross Profit | -198.14M | 263.36M | 138.43M | 7.27M | 13.87M | 150.57M |
| EBITDA | -311.09M | 262.01M | 137.12M | -36.26M | 12.14M | 142.92M |
| Net Income | -92.73M | 107.55M | 72.56M | -34.98M | 12.49M | 149.22M |
Balance Sheet | ||||||
| Total Assets | 611.74M | 713.40M | 439.16M | 303.49M | 338.28M | 328.79M |
| Cash, Cash Equivalents and Short-Term Investments | 45.15M | 452.42M | 260.87M | 197.81M | 220.68M | 206.70M |
| Total Debt | 635.41K | 647.79K | 668.62K | 699.84K | 729.86K | 758.74K |
| Total Liabilities | 81.78M | 62.21M | 35.88M | 19.38M | 23.96M | 29.87M |
| Stockholders Equity | 293.27M | 352.98M | 242.14M | 169.28M | 181.41M | 177.90M |
Cash Flow | ||||||
| Free Cash Flow | 5.37M | 7.71M | 3.59M | 5.20M | 841.32K | -198.58K |
| Operating Cash Flow | 5.40M | 7.73M | 3.67M | 5.24M | 1.39M | 31.15K |
| Investing Cash Flow | -1.34M | -1.95M | -2.23M | 346.62K | -2.79M | -3.14M |
| Financing Cash Flow | -444.76K | -1.11M | -331.22K | -800.12K | -282.98K | -360.63K |
FRMO Technical Analysis
Negative
7.64
Price Trends
7.81
Negative
7.70
Negative
8.21
Negative
Market Momentum
-0.08
Positive
33.12
Neutral
21.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRMO, the sentiment is Negative. The current price of 7.64 is below the 20-day moving average (MA) of 8.06, below the 50-day MA of 7.81, and below the 200-day MA of 8.21, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.12 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FRMO.
FRMO Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $464.19M | 12.44 | 27.96% | 3.38% | 7.47% | -2.12% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | $292.53M | 10.64 | 5.42% | 16.61% | -3.09% | 200.66% | |
56 Neutral | $306.40M | -6.41 | -27.11% | ― | -6.81% | -23.44% | |
56 Neutral | $394.02M | 19.71 | 7.50% | 9.31% | 41.12% | -40.68% | |
55 Neutral | $273.55M | 13.30 | 0.03% | 12.83% | 90.34% | -44.25% | |
53 Neutral | $358.02M | -24.53 | -2.75% | 15.77% | -11.01% | -65.56% |
* Financial Sector Average
FRMO
FRMO
6.96
-1.21
-14.81%
DHIL
Diamond Hill Investment Group
171.58
48.57
39.49%
GLAD
Gladstone Capital
17.44
-4.27
-19.68%
PNNT
Pennantpark Investment
4.48
-0.89
-16.64%
SCM
Stellus Capital
9.33
-1.30
-12.25%
CION
CION Investment Corp
7.09
-0.65
-8.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.