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Horizon Kinetics Holding Corporation (HKHC)
OTHER OTC:HKHC
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Horizon Kinetics Holding Corporation
(OTC:HKHC)
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Rating:62Neutral
Price Target:
$40.00
▲(14.55% Upside)
Horizon Kinetics Holding Corporation's overall stock score reflects strong financial performance with impressive revenue growth and improved profitability. However, technical indicators suggest bearish momentum, and the earnings call revealed challenges such as a quarterly net loss and goodwill impairment. The valuation is reasonable, but operational inefficiencies and market volatility pose risks.
Horizon Kinetics Holding Corporation (HKHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$633.60M
Dividend Yield0.2%
Average Volume (3M)550.00
Price to Earnings (P/E)12.8
Beta (1Y)-0.27
Revenue Growth2113.14%
EPS GrowthN/A
CountryUS
Employees78
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.56
Shares Outstanding18,635,320
10 Day Avg. Volume410
30 Day Avg. Volume550
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.93
Price to Sales (P/S)11.49
P/FCF Ratio55.75
Enterprise Value/Market Cap3.64
Enterprise Value/Revenue41.96
Enterprise Value/Gross Profit122.93
Enterprise Value/Ebitda-157.15
Forecast
1Y Price Target
$40.00Price Target Upside14.55% Upside
Rating ConsensusHold
Number of Analyst Covering0
Horizon Kinetics Holding Corporation Business Overview & Revenue Model
Company DescriptionHorizon Kinetics Holding Corporation (HKHC) is a diversified investment management firm that specializes in developing innovative investment strategies across various asset classes, including equities, fixed income, and alternative investments. The company focuses on delivering value to its clients through active management and research-driven insights, catering to both institutional and individual investors. HKHC operates through several subsidiaries, each targeting distinct market segments and investment opportunities, thereby enhancing its ability to adapt to changing economic conditions.
How the Company Makes MoneyHorizon Kinetics Holding Corporation generates revenue primarily through management fees and performance-based incentives from its investment management services. These fees are earned from the assets under management (AUM) in their various investment funds and vehicles. Additionally, the company may earn revenue from advisory services, research, and consulting for institutional clients. Key revenue streams include long-term client relationships and strategic partnerships with other financial institutions, which help to expand its market reach and client base. The company's focus on innovative investment strategies also enables it to capture unique market opportunities, thereby enhancing its earnings potential.
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 strong revenue growth and improved profitability, with a solid balance sheet characterized by low leverage. While cash flow generation is strong, operational efficiency needs improvement, as indicated by negative EBIT and EBITDA margins. Overall, the company is on a positive trajectory but must address operational challenges to sustain growth.Income Statement
Horizon Kinetics Holding Corporation has shown impressive revenue growth, particularly in the most recent year with a 399.75% increase. The net profit margin has improved significantly, turning from negative to a strong 161.72%, indicating a turnaround in profitability. However, the EBIT and EBITDA margins remain negative, suggesting operational inefficiencies that need addressing.75
Positive
Balance Sheet
The company maintains a low debt-to-equity ratio of 0.02, indicating conservative leverage and financial stability. The return on equity is robust at 27.18%, reflecting efficient use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.70
Positive
Cash Flow
Free cash flow has grown significantly by 233.12%, and the free cash flow to net income ratio is nearly 1, indicating strong cash generation relative to net income. However, the operating cash flow to net income ratio is relatively low at 0.24, suggesting potential issues with cash conversion.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 55.01M | 57.18M | 47.26M | 2.98M | 29.74M | 28.96M |
| Gross Profit | 18.78M | 18.60M | 20.41M | 1.37M | 12.53M | 10.64M |
| EBITDA | -14.69M | -13.61M | 46.00K | -9.29M | -4.71M | -655.00K |
| Net Income | 88.11M | 92.47M | -4.49M | -8.85M | -11.09M | -1.55M |
Balance Sheet | ||||||
| Total Assets | 2.06B | 2.03B | 1.12B | 10.73M | 20.87M | 33.56M |
| Cash, Cash Equivalents and Short-Term Investments | 72.46M | 58.75M | 69.59M | 49.00K | 770.00K | 5.00K |
| Total Debt | 6.11M | 7.38M | 9.50M | 6.17M | 5.91M | 8.80M |
| Total Liabilities | 136.20M | 147.69M | 28.80M | 7.91M | 9.33M | 11.09M |
| Stockholders Equity | 349.49M | 340.17M | 209.09M | 2.82M | 11.54M | 22.46M |
Cash Flow | ||||||
| Free Cash Flow | -9.07M | 11.79M | 25.38M | -1.99M | -791.00K | 3.56M |
| Operating Cash Flow | -16.91M | 11.84M | 25.48M | -1.85M | -322.00K | 3.58M |
| Investing Cash Flow | 28.60M | 2.14M | 782.00K | 338.00K | 4.38M | -10.10M |
| Financing Cash Flow | -6.02M | -24.82M | -15.39M | 290.00K | -2.79M | 5.43M |
Horizon Kinetics Holding Corporation Technical Analysis
Negative
34.92
Price Trends
38.01
Negative
39.85
Negative
37.50
Negative
Market Momentum
-0.94
Positive
30.61
Neutral
12.79
Positive
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 34.92 is below the 20-day moving average (MA) of 37.58, below the 50-day MA of 38.01, and below the 200-day MA of 37.50, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 30.61 is Neutral, neither overbought nor oversold. The STOCH value of 12.79 is Positive, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $690.00M | 22.62 | 10.03% | 5.64% | 53.35% | -24.09% | |
75 Outperform | $657.34M | 7.28 | 10.37% | 15.02% | 13.19% | -18.24% | |
71 Outperform | $777.95M | 8.76 | 8.95% | 11.66% | 5.87% | -12.64% | |
68 Neutral | $690.62M | 8.46 | 11.80% | 11.70% | -14.09% | -27.46% | |
68 Neutral | $806.02M | 10.39 | 5.90% | 10.52% | -7.74% | -15.34% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $633.60M | 12.80 | 28.39% | 0.20% | 2113.14% | ― |
* Financial Sector Average
HKHC
Horizon Kinetics Holding Corporation
34.92
11.12
46.72%
FDUS
Fidus Investment
19.31
1.85
10.60%
NOAH
Noah Holdings
11.01
-1.43
-11.50%
SLRC
SLR Investment Corp.
14.07
0.41
3.00%
VINP
Vinci Partners Investments
10.82
1.27
13.30%
NCDL
Nuveen Churchill Direct Lending Corp.
13.32
-2.06
-13.39%
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.