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Horizon Kinetics Holding Corporation (HKHC)
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Horizon Kinetics Holding Corporation (HKHC) AI Stock Analysis

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HKHC

Horizon Kinetics Holding Corporation

(OTC:HKHC)

Rating:51Neutral
Price Target:
Horizon Kinetics Holding Corporation faces significant profitability challenges despite strong revenue growth and cash flow improvements. The technical indicators are mixed, and the valuation suggests caution due to negative earnings. While recent corporate events reflect positive strategic initiatives, the overall financial health remains a concern, resulting in a moderate overall stock score.

Horizon Kinetics Holding Corporation (HKHC) vs. SPDR S&P 500 ETF (SPY)

Horizon Kinetics Holding Corporation Business Overview & Revenue Model

Company DescriptionHorizon Kinetics Holding Corporation (HKHC) is an investment management firm that operates primarily in the financial sector. It offers a range of investment products and services focused on wealth management, including mutual funds, private funds, and separately managed accounts. The company is known for its contrarian and fundamental research-driven approach to investment, seeking long-term capital appreciation for its clients.
How the Company Makes MoneyHorizon Kinetics Holding Corporation generates revenue primarily through management fees charged on the assets under its management. These fees are typically a percentage of the total assets managed and are collected from various investment products such as mutual funds, private funds, and individually managed accounts. Additionally, the company may earn performance-based fees, which are contingent upon exceeding certain benchmark returns. Such a fee structure aligns the firm's interests with those of its clients, incentivizing the pursuit of superior investment performance. HKHC's earnings are also supported by its research and advisory services, which may include partnerships or collaborations with other financial institutions, although specific details of such arrangements are not publicly disclosed.

Horizon Kinetics Holding Corporation Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue and operating income growth, strategic investments, and new product launches. However, this was tempered by a quarterly net loss, goodwill impairment, and potential volatility from digital asset holdings.
Q2-2025 Updates
Positive Updates
Significant Revenue Growth
The company recorded revenues of $19.8 million for the quarter, a meaningful increase from $11.4 million in the second quarter of 2024. Year-to-date revenue was $39.6 million in 2025.
Increase in Operating Income
Operating income was $4.5 million for the second quarter, up from $1.5 million in the prior year. Year-to-date operating income was $9.1 million compared to $3.9 million in the previous year.
Dividend Increase
The company's Board declared a $0.071 per share dividend in the second quarter, reflecting a 27% increase from Q1's dividend.
Notable Investments and Developments
The company made strategic investments in Miami International Holdings and Consensus Mining, both of which have shown potential for positive future impacts.
Launch of New ETFs
The company launched the Japan Owner Operator ETF and plans to launch another ETF, marking the seventh ETF created by Horizon Kinetics.
Negative Updates
Net Loss for the Quarter
Overall, the company reported a net loss of $0.56 per share for the quarter, which is lower than the $0.78 net income per share reported in the second quarter of 2024.
Impact of Goodwill Impairment
There was a $900,000 goodwill impairment, impacting the overall financial results for the quarter.
Volatility in Investment Returns
The call mentioned potential quarter-to-quarter volatility due to unrealized gains or losses in various holdings, including digital assets like Bitcoin.
Company Guidance
In the Horizon Kinetics Second Quarter Results Call for fiscal year 2025, the company reported a significant increase in revenue to $19.8 million, up from $11.4 million in the second quarter of 2024. Year-to-date revenues stood at $39.6 million, primarily due to growth in assets under management. Operating income at the adviser-only level rose to $4.5 million from $1.5 million in the previous year, and the year-to-date figure increased to $9.1 million compared to $3.9 million in 2024. Despite these gains, the company reported a net loss of $0.56 per share for the quarter, while the year-to-date net income was $0.66 per share, both down from 2024 figures. The company declared a $0.071 per share dividend, marking a 27% increase from the first quarter's dividend. Additionally, the call highlighted strategic investments in companies like Miami International Holdings and Consensus Mining, along with the launch of new ETFs, including the Japan Owner Operator ETF, reflecting the company's ongoing efforts to diversify and enhance its investment portfolio.

Horizon Kinetics Holding Corporation Financial Statement Overview

Summary
Horizon Kinetics Holding Corporation demonstrates mixed financial performance. Strong gross margins and a solid equity position are positive indicators, yet profitability remains a significant challenge due to negative net income and volatile revenue growth. Cash flow has shown improvement, but the lack of profitability affects the financial health.
Income Statement
45
Neutral
Horizon Kinetics Holding Corporation has faced challenges with profitability, as demonstrated by a consistently negative net income. The gross profit margin is strong at 92.82% for the TTM, indicating efficient production relative to revenue. However, the net profit margin is deeply negative, reflecting significant operating and financial expenses relative to revenue. Revenue growth has been volatile, with a substantial increase in TTM revenue compared to previous years, but this has not translated into profitability.
Balance Sheet
60
Neutral
The company's balance sheet indicates a strong equity position with a high equity ratio of 72.68% in the TTM, suggesting financial stability. The debt-to-equity ratio is low at 0.03, highlighting a conservative approach to leverage. However, the return on equity is negative, reflecting ongoing challenges in generating profits from shareholders' equity.
Cash Flow
55
Neutral
The cash flow statement shows improvement with positive operating cash flow in the TTM, indicating better cash generation from operations. Free cash flow has also improved, showing positive growth compared to previous negative figures. However, the operating cash flow to net income ratio suggests inefficiencies, as strong cash flows have not yielded corresponding net income.
BreakdownDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue
Gross Profit1.45M1.37M12.53M11.65M10.81M
EBITDA-4.72M-9.29M-4.71M-655.00K-352.00K
Net Income380.00K-8.85M-11.09M-1.55M-657.00K
Balance Sheet
Total Assets6.37M10.73M20.87M33.56M26.09M
Cash, Cash Equivalents and Short-Term Investments
Total Debt2.51M6.17M5.91M8.80M216.00K
Total Liabilities3.10M7.91M9.33M11.09M2.47M
Stockholders Equity
Cash Flow
Free Cash Flow-861.00K-1.85M-322.00K4.07M688.00K
Operating Cash Flow-861.00K-1.85M-322.00K3.58M679.00K
Investing Cash Flow
Financing Cash Flow

Horizon Kinetics Holding Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price37.92
Price Trends
50DMA
39.78
Negative
100DMA
38.90
Negative
200DMA
37.57
Positive
Market Momentum
MACD
-0.48
Negative
RSI
43.02
Neutral
STOCH
79.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HKHC, the sentiment is Negative. The current price of 37.92 is below the 20-day moving average (MA) of 38.15, below the 50-day MA of 39.78, and above the 200-day MA of 37.57, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 43.02 is Neutral, neither overbought nor oversold. The STOCH value of 79.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HKHC.

Horizon Kinetics Holding Corporation Risk Analysis

Horizon Kinetics Holding Corporation disclosed 19 risk factors in its most recent earnings report. Horizon Kinetics Holding Corporation reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Horizon Kinetics Holding Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$780.60M18.167.04%7.30%-13.73%
68
Neutral
$17.89B11.9510.28%3.72%9.74%1.61%
63
Neutral
$629.63M67.36-0.76%1.62%-22.65%-107.16%
59
Neutral
$440.63M70.464.09%9.62%
58
Neutral
$907.40M2,245.98-2.08%3.26%1.54%-134.75%
51
Neutral
$706.74M14.3128.39%2113.14%
41
Neutral
$512.37M-27.07%13.05%-72.80%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HKHC
Horizon Kinetics Holding Corporation
37.92
12.72
50.48%
MGPI
MGP Ingredients
29.57
-57.64
-66.09%
SENEA
Seneca Foods
113.20
53.50
89.61%
SPTN
SpartanNash Co
26.80
5.52
25.94%
HNST
Honest Company
3.96
-0.34
-7.91%
WEST
Westrock Coffee
5.41
-2.39
-30.64%

Horizon Kinetics Holding Corporation Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures
Horizon Kinetics Reports Strong Q3 2024 Performance
Positive
Nov 12, 2024

Horizon Kinetics Holding Corporation reported a strong third quarter for 2024, with a remarkable 20.6% increase in revenues to $15.4 million, largely driven by a surge in assets under management (AUM) to $8.3 billion. The growth was fueled by the appreciation of Texas Pacific Land Corporation’s market value, alongside gains from proprietary funds and investment securities. Despite increased operating expenses, the company declared a quarterly dividend of $0.053 per share, reflecting its robust financial performance and strategic growth initiatives.

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.Date of analysis: Dec 20, 2024