Earnings call transcript: Horizon Kinetics posts Q2 2026 loss as ETF sales rise

Horizon Kinetics disclosed a narrower GAAP loss in Q2 2026 due to investment gains and redeemable interests, despite fee-based business growth. The company reported a net loss of $18.4 million, or $0.99 per share, on $18.8 million in GAAP revenue, nearly unchanged year-over-year. Shares fell 0.55% to $27.00 after the report and are currently trading at $26.65, down 1.84% from pre-earnings levels.

The firm's advisory revenue remained steady, while operating income declined 5.5% to $16.1 million due to rising expenses. Horizon Kinetics attributes the GAAP loss to accounting impacts from its investment holdings and redeemable non-controlling interests. The company maintains a debt-free balance sheet with $34.3 million in cash, $105 million in investments, $8.3 million in digital assets, and about $263 million in private funds.

Analysts consider the stock undervalued, presenting potential upside for long-term investors. The core asset-management business remains the primary cash flow source, but quarterly earnings can fluctuate due to unrealized gains and losses. The operating result was weaker than the previous year, reflecting higher costs and pressure on profitability.

The stock remains near its 52-week low and above its recent low, suggesting cautious investor sentiment. Horizon Kinetics plans to launch an ETF marketing campaign in September 2026 to boost product awareness, with early results expected by mid-October to November. The company also aims to capitalize on growth opportunities in ETFs, SMAs, international strategies, AI infrastructure, and other assets as it strives for long-term valuation discipline.