FRMO Corporation (FRMO)
OTHER OTC:FRMO
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FRMO
(OTC:FRMO)
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Rating:69Neutral
Price Target:
$8.00
▲(4.71% Upside)
Action:ReiteratedDate:04/27/26
The score is driven primarily by solid underlying financial strength (notably a conservative, debt-free balance sheet) and attractive valuation (very low P/E). These positives are moderated by volatile earnings/cash-flow patterns and weak technical momentum (trading below major moving averages with negative MACD), while the earnings call was constructive overall but highlighted near-term headwinds from crypto exposure and lower fee revenue.
Positive Factors
Conservative Balance Sheet
A debt-free balance sheet with over $45M cash and a large equity base gives FRMO durable financial flexibility. This supports opportunistic investing, stake increases and absorbing market shocks without forced asset sales or leverage, sustaining strategic options over months.
Negative Factors
Volatile Operating Results
FRMO's earnings and cash flows are lumpy—including a sharp 2023 loss and negative TTM revenue despite positive net income—driven by investment swings. This reduces earnings quality and predictability, complicating budgeting, fee visibility and capital allocation decisions over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
A debt-free balance sheet with over $45M cash and a large equity base gives FRMO durable financial flexibility. This supports opportunistic investing, stake increases and absorbing market shocks without forced asset sales or leverage, sustaining strategic options over months.
Read all positive factors
FRMO (FRMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$297.15M
Dividend YieldN/A
Average Volume (3M)9.83K
Price to Earnings (P/E)1.1
Beta (1Y)0.40
Revenue Growth-29.85%
EPS Growth-96.18%
CountryUS
Employees5
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.43
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-2.15
Enterprise Value/Gross Profit-2.14
Enterprise Value/Ebitda2.95
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 (1) investment gains and income from its portfolio and holdings, and (2) earnings attributable to its ownership interests in other financial businesses. Key revenue/earnings drivers typically include realized gai...
FRMO Earnings Call Summary
Earnings Call Date:Feb 28, 2026
(Q3-2026)
| Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong underlying fundamentals: sizable unrealized gains driven by strategic equity holdings (notably TPL, Horizon Kinetics and MIAX), a debt-free balance sheet with >$45M cash, profitable short-sale operations, and a long-term compounding track record. These positives were tempered by meaningful cryptocurrency losses (Bitcoin down 26% in Q3 and 36% YTD), reduced advisory fee revenue, and a tax expense that depressed reported net income. Management also addressed a corrected reporting omission regarding founder ownership and outlined plans to increase operational stakes (Winland) and pursue board engagement with strategic investments. Overall, the company presents financial strength and strategic momentum, while acknowledging near-term headwinds from crypto exposure and fee timing.Positive Updates
Strong Quarterly Net Income
FRMO reported net income attributable to FRMO of $83 million for the quarter (FY2026 Q3), with year-to-date net income reported as just shy of $57 million (as stated on the call).
Negative Updates
Cryptocurrency Losses
Cryptocurrency exposure weighed on results: Bitcoin decreased 26% during Q3 and is down 36% year-to-date, producing unrealized losses that partially offset equity gains.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Quarterly Net Income
FRMO reported net income attributable to FRMO of $83 million for the quarter (FY2026 Q3), with year-to-date net income reported as just shy of $57 million (as stated on the call).
Read all positive updates
Company Guidance
Management's guidance stressed balance-sheet strength and a steady, deliberate path forward: FRMO reported Q3 net income attributable to the company of $83.0M and year‑to‑date net income of just shy of $57.0M, holds over $45.0M in cash, and is debt‑free as of February; key investments drove unrealized gains (TPL +82% in Q3, +40% YTD; Horizon Kinetics Holding +20%+ in Q3; MIAX down slightly in Q3 but ~+80% since prior year‑end) while crypto exposures weighed on results (Bitcoin -26% in Q3, -36% YTD). They noted conservative risk management (short positions with securities sold not yet purchased of $717K vs $1.3M on 5/31/25 and cumulative short proceeds just over $9M), continued focus on strategic assets (FRMO book value grew from $115M/$1.61 per share on 5/31/20 to $353M/$8.02 per share on 5/31/25), plans to increase Winland ownership (now ~47% with a >50% target by year‑end), exploration of board engagement with TPL/MIAX, and ongoing investments in research and selective crypto‑mining opportunities rather than any rapid or forced transactions.FRMO Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
84
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | May 2024 | May 2023 | May 2022 | May 2021 | May 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -117.24M | 263.36M | 138.43M | 7.27M | 4.82M | 3.00M |
| Gross Profit | -117.29M | 263.36M | 138.43M | 7.27M | 13.87M | 150.57M |
| EBITDA | 85.24M | 262.01M | 137.12M | -36.26M | 12.14M | 142.92M |
| Net Income | 19.32M | 107.55M | 72.56M | -34.98M | 12.49M | 149.22M |
Balance Sheet | ||||||
| Total Assets | 919.48M | 713.40M | 439.16M | 303.49M | 338.28M | 328.79M |
| Cash, Cash Equivalents and Short-Term Investments | 45.59M | 452.42M | 260.87M | 197.81M | 220.68M | 206.70M |
| Total Debt | 0.00 | 647.79K | 668.62K | 699.84K | 729.86K | 758.74K |
| Total Liabilities | 124.32M | 62.21M | 35.88M | 19.38M | 23.96M | 29.87M |
| Stockholders Equity | 376.70M | 352.98M | 242.14M | 169.28M | 181.41M | 177.90M |
Cash Flow | ||||||
| Free Cash Flow | 3.46M | 7.71M | 3.59M | 5.20M | 841.32K | -198.58K |
| Operating Cash Flow | 3.46M | 7.73M | 3.67M | 5.24M | 1.39M | 31.15K |
| Investing Cash Flow | -1.26M | -1.95M | -2.23M | 346.62K | -2.79M | -3.14M |
| Financing Cash Flow | -485.42K | -1.11M | -331.22K | -800.12K | -282.98K | -360.63K |
FRMO Technical Analysis
Negative
7.64
Price Trends
7.75
Negative
7.62
Negative
8.15
Negative
Market Momentum
-0.30
Positive
28.83
Positive
14.53
Positive
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 above the 20-day moving average (MA) of 7.56, below the 50-day MA of 7.75, and below the 200-day MA of 8.15, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 28.83 is Positive, neither overbought nor oversold. The STOCH value of 14.53 is Positive, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $297.15M | 1.06 | -27.11% | ― | -29.85% | -96.18% | |
69 Neutral | $451.18M | 6.11 | 5.59% | 9.31% | -46.94% | -51.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
55 Neutral | $282.24M | 17.24 | 7.23% | 12.83% | 16.48% | -46.87% | |
52 Neutral | $362.96M | 6.75 | 6.21% | 15.77% | -11.90% | 84.61% | |
50 Neutral | $298.40M | ― | 13.35% | 16.61% | 122.81% | 43.00% |
* Financial Sector Average
FRMO
FRMO
6.75
-1.60
-19.16%
GLAD
Gladstone Capital
19.97
-3.67
-15.51%
PNNT
Pennantpark Investment
4.57
-1.09
-19.33%
SCM
Stellus Capital
9.75
-1.88
-16.15%
CION
CION Investment Corp
7.29
-0.86
-10.53%
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.