FRMO Corp. Announces Fiscal 2026 Results and Annual Meeting
Rhea-AI Summary
FRMO Corp (OTC: FRMO) reported fiscal 2026 results for the year and quarter ended May 31, 2026. Full‑year revenue from consulting and advisory fees and other income was $4.3 million, down from $4.8 million in 2025, while fourth‑quarter consulting and advisory fees rose 76.3% to $1.7 million, largely tied to royalty participation with Horizon Kinetics Holding Corporation (HKHC).
Full‑year net income attributable to the Company was $2.9 million ($0.07 per diluted share), sharply lower than $100.5 million ($2.28 per diluted share) a year earlier, reflecting a major decline in other income to $23.5 million, including significantly lower unrealized gains from investments and digital assets. Fourth‑quarter net loss attributable to the Company widened to $45.6 million ($1.04 per diluted share), mainly linked to an equity security referred to as Investment A.
Despite earnings volatility, book value increased: total stockholders’ equity rose to $647.2 million from $626.1 million, and equity attributable to shareholders grew to $331.0 million, or $7.52 per share, versus $327.9 million, or $7.45 per share, at May 31, 2025. Total assets reached $747.3 million and total liabilities were $100.1 million, driven primarily by deferred tax liabilities and securities sold, not yet purchased.
FRMO reiterated that valuations of securities and digital assets may have changed after May 31, 2026, and it aims to expand its digital asset mining operations. The company will hold its 2026 Annual Meeting of Shareholders on September 10, 2026, at 2:30 p.m. Eastern Time at Vinson & Elkins in New York, with a simultaneous virtual meeting accessible via a unique 16‑digit control number for shareholders.
Positive
- Book value growth: total stockholders’ equity increased to $647.2M from $626.1M year over year
- Equity attributable to shareholders rose to $331.0M ($7.52/share) from $327.9M ($7.45/share)
- Q4 consulting and advisory fees increased 76.3% to $1.7M, driven by HKHC incentive fees
- Total other income (expense), net remained positive at $23.5M for fiscal 2026 despite lower unrealized gains
Negative
- Net income attributable to the Company fell to $2.9M from $100.5M; EPS declined to $0.07 from $2.28
- Other income, net dropped to $23.5M from $271.1M, a 91.3% year‑over‑year decrease
- Q4 net loss attributable to the Company widened to $45.6M ($1.04/share) from $26.6M ($0.60/share)
- Non‑GAAP result: fiscal 2026 loss excluding unrealized investment and digital asset effects was $7.0M versus income of $54.3M in 2025
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 10 | Fiscal year change | Neutral | -1.8% | Board approved changing the fiscal year end from May 31 to June 30 |
| Apr 14 | Third-quarter results | Positive | -0.2% | Reported quarterly net income after a prior-year loss |
| Apr 08 | Leadership change | Negative | -4.8% | Announced the passing of founder and CEO Murray Stahl |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
In the available history, the two non-negative events were followed by negative 24-hour reactions, while the negative leadership event also had a negative reaction.
Key Terms
noncontrolling interests financial
deferred tax liability financial
unrealized gain (loss) from equity securities and digital assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Financial highlights for the fourth quarter and year ended May 31, 2026:
Consulting and advisory fees of
$1.7 million for the fourth quarter of 2026, an increase of76.3% from the same period in 2025Consulting and advisory fees of
$4.3 million for the year ended May 31, 2026, a decrease of10.7% from the same period in 2025Other expense, net of
$171.6 million for the fourth quarter of 2026, an increase of42.1% from 2025Other income, net of
$23.5 million for the year ended May 31, 2026, a decrease of91.3% from the same period in 2025
WHITE PLAINS, NY / ACCESS Newswire / August 27, 2026 / FRMO Corp. (the "Company" or "FRMO") (OTCID:FRMO) reported its financial results for the fourth quarter and fiscal year ended May 31, 2026.
FRMO's total book value as of May 31, 2026 was
The Company's consulting and advisory fees increased during the three months ended May 31, 2026 compared to the same period in the prior year due to fees earned from its royalty participation with Horizon Kinetics Holding Corporation. HKHC recognized significant incentive fees during the Company's quarter ended May 31, 2026.
Current assets, comprised primarily of cash and cash equivalents, amounted to
FRMO's net loss attributable to the Company for the quarter ended May 31, 2026 was
For the year ended May 31, 2026, FRMO's net income attributable to the Company was
Net loss attributable to the Company excluding the effect of unrealized gain or loss from equity securities and digital assets net of taxes for the three months ended May 31, 2026 was
Net income or loss attributable to the Company excluding the effect of unrealized gain or loss from equity securities and digital assets net of taxes is a measure not based on GAAP and is defined and reconciled to the most directly comparable GAAP measures in "Information Regarding Non-GAAP Measures" at the end of this release.
Valuation of securities and digital assets are subject to change after May 31, 2026. The market value of several securities and digital assets might have changed substantially since that date. We look forward to finding new ways to expand our digital assets mining operations.
The consolidated financial statements include the accounts of FRMO Corporation and its controlled subsidiaries (collectively referred to as the "Company"). As of May 31, 2026 and 2025, respectively, the Company held a
Further details are available in the Company's Consolidated Financial Statements for the years ended May 31, 2026 and 2025. These statements have been filed on the OTC Markets Group Disclosure and News Services, which may be accessed at www.otcmarkets.com/stock/FRMO/filings. These documents are also available on the FRMO website at www.frmocorp.com.
Annual Meeting
Co-CEOs Peter Doyle and Steven Bregman, and David Arndt, CFO, will host the 2026 Annual Meeting of Shareholders (the "Annual Meeting") on Thursday, September 10, 2026 at 2:30 pm Eastern Time, to be held at:
Vinson & Elkins, L.L.P.
1114 Avenue of the Americas, 32nd Floor
New York, NY 10036
https://www.virtualshareholdermeeting.com/FRMO2026
To access the virtual Annual Meeting, please have your proxy card at hand and enter your unique 16-digit control number. Only shareholders with valid control numbers will be able to vote and ask questions via the electronic portal. Guests may register for the webcast by entering their first and last names and a valid email address. Shareholders and guests may submit questions in advance to info@frmocorp.com by 11:59 P.M. Eastern Time on Sunday, September 6, 2026.
Admission to the FRMO in person Annual Meeting is limited to stockholders who owned Common stock as of the close of business on July 14, 2026, the record date, or their duly appointed proxies, and one guest. Proof of ownership of FRMO stock and valid government-issued photo identification must be presented in order to be admitted to the physical Annual Meeting. Guests must also present valid government-issued photo identification. If your shares are held in the name of a bank, broker, or other holder of record, you must bring a brokerage statement or other proof of ownership (or the equivalent proof of ownership as of the close of business on the record date of the stockholder who granted you the Proxy). If your shares are held in certificate form, ownership will be verified by consulting the list of Registered Shareholders as of the record date. Registration will begin at 1:30 PM.
FRMO CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (in thousands) | ||||||||
May 31, | May 31, | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 46,967 | $ | 43,864 | ||||
Accounts receivable (due from related parties) | 599 | 1,042 | ||||||
Prepaid income taxes | - | 1,223 | ||||||
Other current assets | 143 | 176 | ||||||
Total current assets | 47,709 | 46,305 | ||||||
Digital mining assets, net of accumulated depreciation of | 13 | 1,013 | ||||||
Equity securities, at fair value | 433,928 | 408,553 | ||||||
Digital assets, at fair value | 11,976 | 16,949 | ||||||
Investments in limited partnerships and other equity investments at fair value | 204,350 | 201,529 | ||||||
Investments in securities exchanges | 15,679 | 7,947 | ||||||
Other investments | 1,297 | 469 | ||||||
Investment in Horizon Kinetics Holding Corporation | 22,162 | 32,955 | ||||||
Horizon Kinetics Holding Corporation royalty participation | 10,200 | 10,200 | ||||||
Total assets | $ | 747,314 | $ | 725,920 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 397 | $ | 242 | ||||
Income taxes payable | 822 | - | ||||||
Current portion of mortgage note payable | - | 26 | ||||||
Securities sold, not yet purchased | 705 | 1,307 | ||||||
Total current liabilities | 1,924 | 1,575 | ||||||
Deferred tax liability | 98,179 | 97,619 | ||||||
Mortgage note payable, net of current portion | - | 622 | ||||||
Total liabilities | 100,103 | 99,816 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity | ||||||||
Redeemable preferred stock - | - | - | ||||||
Common stock - | 44 | 44 | ||||||
Additional paid-in capital | 45,492 | 45,350 | ||||||
Retained earnings | 285,441 | 282,505 | ||||||
Stockholders' equity attributable to the Company | 330,977 | 327,899 | ||||||
Noncontrolling interests | 316,234 | 298,205 | ||||||
Total stockholders' equity | 647,211 | 626,104 | ||||||
Total liabilities and stockholders' equity | $ | 747,314 | $ | 725,920 | ||||
FRMO CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (in thousands, except per share data) | ||||||||
Year Ended May 31, | ||||||||
2026 | 2025 | |||||||
Revenue: | ||||||||
Consulting and advisory fees and other income | $ | 4,309 | $ | 4,823 | ||||
Total revenue | 4,309 | 4,823 | ||||||
Operating expenses: | ||||||||
General and administrative expenses | 1,409 | 1,352 | ||||||
Depreciation | 46 | 152 | ||||||
Loss on sale of long-lived assets | 734 | - | ||||||
Total operating expenses | 2,189 | 1,504 | ||||||
Operating income (loss) | 2,120 | 3,319 | ||||||
Other income (expense): | ||||||||
Dividends and interest income, net | 4,590 | 7,807 | ||||||
Net realized gain (loss) from investments | 988 | (71 | ) | |||||
Equity earnings from limited partnerships, limited liability companies, and other equity investments | 2,570 | 8,381 | ||||||
Unrealized gain (loss) from investments | (11,751 | ) | 79,995 | |||||
Unrealized gain (loss) from equity securities | 32,140 | 169,065 | ||||||
Unrealized gain (loss) from digital assets | (5,026 | ) | 5,878 | |||||
Total other income (expense), net | 23,511 | 271,055 | ||||||
Income (loss) from operations before provision for income taxes | 25,631 | 274,374 | ||||||
Income tax (expense) benefit | (5,496 | ) | (48,189 | ) | ||||
Net income (loss) | 20,135 | 226,185 | ||||||
Less: net (income) loss attributable to noncontrolling interests | (17,199 | ) | (125,731 | ) | ||||
Net income (loss) attributable to the Company | $ | 2,936 | $ | 100,454 | ||||
Net income (loss) per common share | ||||||||
Basic | $ | 0.07 | $ | 2.28 | ||||
Diluted | $ | 0.07 | $ | 2.28 | ||||
Weighted average shares outstanding | ||||||||
Basic | 44,023 | 44,023 | ||||||
Diluted | 44,027 | 44,030 | ||||||
About FRMO Corp.
FRMO Corp. is an intellectual capital firm that provides consulting and advisory services in the asset management sector and engages in the mining of digital assets.
FRMO had 44,022,781 shares of common stock outstanding as of May 31, 2026.
For more information, visit our website at www.frmocorp.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 - With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like "believe," "expect" and "anticipate" mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, the general economics of the financial industry, our ability to finance growth, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market.
Further information on our risk factors is contained in our quarterly and annual reports as filed on our website www.frmocorp.com and on www.otcmarkets.com/stock/FRMO/filings.
Contact
Thérèse Byars
Corporate Secretary
Email: tbyars@frmocorp.com
Telephone: 646-495-7337
www.frmocorp.com
Information Regarding Non-GAAP Measures
Net income or loss attributable to the Company excluding the effect of unrealized gain or loss from equity securities and digital assets is net income or loss attributable to the Company exclusive of unrealized gains or losses from equity securities and digital assets, net of tax. Net income or loss attributable to the Company is the GAAP measure most closely comparable to net income attributable to the Company excluding the effect of unrealized gain or loss from equity securities and digital assets.
Management uses net income or loss attributable to the Company excluding the effect of unrealized gain or loss from equity securities and digital assets, along with other measures, to gauge the Company's performance and evaluate results, which can be skewed when including unrealized gain or loss from equity securities and digital assets, which may vary significantly between periods. Net income or loss attributable to the Company excluding the effect of unrealized gain or loss from equity securities is provided as supplemental information, and is not a substitute for net income or loss attributable to the Company and does not reflect the Company's overall profitability.
The following table reconciles the net income or loss attributable to the Company excluding the effect of unrealized gain or loss from equity securities and digital assets to net income or loss attributable to the Company (in thousands) for the periods indicated:
Three Months Ended May 31, | Year Ended May 31, | |||||||||||||||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||
Amount | Diluted earnings (loss) per common share | Amount | Diluted earnings (loss) per common share | Amount | Diluted earnings (loss) per common share | Amount | Diluted earnings (loss) per common share | |||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||
Net Income (Loss) Attributable to the Company Excluding the Effect of Unrealized Gain (Loss) from Equity Securities and Digital Assets, and Diluted Earnings per Common Share Reconciliation: | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to the Company | $ | (45,629 | ) | $ | (1.04 | ) | $ | (26,553 | ) | $ | (0.60 | ) | $ | 2,936 | $ | 0.07 | $ | 100,454 | $ | 2.28 | ||||||||||||
Unrealized gain (loss) from equity securities and digital assets | (138,174 | ) | (110,686 | ) | 27,114 | 174,943 | ||||||||||||||||||||||||||
Less: Unrealized gain (loss) from equity securities and digital assets attributable to noncontrolling interests | (101,052 | ) | (79,667 | ) | 16,817 | 121,357 | ||||||||||||||||||||||||||
Unrealized gain (loss) from equity securities and digital assets attributable to the Company | (37,122 | ) | (31,019 | ) | 10,297 | 53,586 | ||||||||||||||||||||||||||
Tax (provision) benefit on unrealized gain (loss) from equity securities and digital assets attributable to the company | 2,900 | 1,933 | (356 | ) | (7,455 | ) | ||||||||||||||||||||||||||
Unrealized gain (loss) from equity securities and digital assets attributable to the Company, net of taxes | (34,222 | ) | $ | (0.78 | ) | (29,086 | ) | $ | (0.66 | ) | 9,941 | $ | 0.23 | 46,131 | $ | 1.05 | ||||||||||||||||
Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities and digital assets | $ | (11,407 | ) | $ | (0.26 | ) | $ | 2,533 | $ | 0.06 | $ | (7,005 | ) | $ | (0.16 | ) | $ | 54,323 | $ | 1.23 | ||||||||||||
Weighted average diluted shares outstanding | 44,023 | 44,023 | 44,027 | 44,030 | ||||||||||||||||||||||||||||
SOURCE: FRMO Corp
View the original press release on ACCESS Newswire