Horizon Kinetics Holding Reports Q3 Results with Mixed Performance
News related to:Horizon Kinetics Holding Corporation · 2 min read
Horizon Kinetics Holding Corporation reported its financial results for the third quarter of 2026, highlighting a mix of growth and challenges. For the quarter ended September 30, 2026, the company's management and advisory fees remained steady at $17.8 million, marking a 0.3% increase from the same period in 2025. However, the year-to-date period saw a 1.2% decrease in these fees.
The company's exchange-traded funds (ETFs) contributed significantly to the revenue, with a 26% increase in revenues for the quarter. This growth was particularly driven by the Inflation Beneficiaries ETF, which saw a 30% increase in revenues year-to-date. Despite this, the company experienced a decline in revenues from its mutual funds.
Separately managed accounts (SMAs) also showed growth, with revenues increasing 2.0% for the quarter and 4.3% year-to-date. The company's operating income for the quarter was $1.8 million under GAAP presentation and $4.3 million under advisor-only presentation, reflecting the core asset management operations.
Net income for the quarter ended September 30, 2026, was a net loss of $18.4 million, or $0.98 per common share. This loss was attributed to unrealized declines in the fair value of certain key investment holdings, including those at consolidated investment products. In contrast, the net income for the nine months ended September 30, 2026, was $35.8 million, or $1.92 per share, reflecting significant unrealized gains from the same investment holdings.
Assets under management (AUM) stood at $10.0 billion as of September 30, 2026, a 7.3% decrease from June 30, 2026. However, AUM was still higher than the beginning of the year value of $9.6 billion, reflecting a 3.9% increase from December 31, 2025. The increase in AUM was primarily due to the 13.4% year-to-date growth in the value of Texas Pacific Land Corporation (TPL), partially offset by decreases in bitcoin-related holdings.
On November 11, 2026, the company's Board of Directors declared a $0.13 per share dividend, payable on December 10, 2026, to shareholders of record as of the close of business on November 23, 2026. Additionally, the Board authorized a $25.0 million share repurchase program, aimed at enhancing shareholder value.
Total operating expenses increased by $1.3 million, or 8.9%, during the third quarter, primarily due to higher general and administrative expenses associated with the commencement of new replacement office leases. These increased costs were partially offset by lower variable compensation.
The company's financial performance, while showing some growth in specific areas, also faced significant challenges, particularly in the form of unrealized losses and decreased AUM. The Board's decision to declare a dividend and authorize a share repurchase program reflects a commitment to maintaining shareholder value despite these challenges.