FRMO Corp. Announces Fiscal 2027 First Quarter Results and Conference Call
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
FRMO (FRMO) reported a $35.7 million attributable net loss for its fiscal 2027 first quarter ended September 30, 2026. The loss was $0.81 per diluted share, versus $5.0 million, or $0.11 per share, a year earlier. Revenue fell to $802,000 from $907,000. Unrealized equity-security losses reached $119.953 million, versus $36.906 million.
Equity attributable to shareholders fell to $301.7 million, or $6.85 per share, from $337.4 million, or $7.66 per share, at June 30. Total book value declined to $566.6 million from $687.8 million. Excluding unrealized equity-security and digital-asset gains and losses, net of taxes, the non-GAAP attributable loss was $8.3 million versus income of $0.6 million. Cash declined to $46.325 million from $47.637 million, while liabilities fell to $83.765 million from $103.464 million. Management will host a conference call on November 19, 2026, at 4:15 p.m. Eastern Time.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointEquity earnings from partnerships, limited liability companies and other equity investments increased to $1.875 million from $918,000 year over year.
- Moderate pointTotal liabilities declined to $83.765 million from $103.464 million at June 30, 2026.
- Minor pointOperating expenses fell to $347,000 from $386,000 in the prior-year quarter.
- Minor pointDividend and interest income, net rose to $1.230 million from $1.103 million year over year.
- Minor pointUnrealized digital-asset gains increased to $4.159 million from $1.206 million in the prior-year quarter.
- Minor pointJune transition-period attributable income reached $6.401 million, versus an $842,000 loss in June 2025.
Negative
- Major pointQuarterly attributable net loss widened to $35.749 million, or $0.81 diluted, from $4.970 million, or $0.11 diluted.
- Moderate pointShareholder-attributable equity fell to $301.7 million, or $6.85 per share, from $337.4 million, or $7.66, at June 30.
- Minor pointTotal book value declined to $566.6 million from $687.8 million at June 30, 2026.
- Minor pointQuarterly revenue decreased to $802,000 from $907,000 a year earlier.
- Minor pointUnrealized equity-security losses widened to $119.953 million from $36.906 million in the prior-year quarter.
7 minor points
- Minor pointUnrealized investment losses widened to $27.296 million from $4.804 million in the prior-year quarter.
- Minor pointNon-GAAP attributable results moved to an $8.3 million loss from $0.6 million income, excluding specified unrealized gains and losses.
- Minor pointCash and cash equivalents declined to $46.325 million from $47.637 million at June 30, 2026.
- Minor pointNet realized investment results shifted to a $10,000 loss from a $46,000 gain year over year.
- Minor pointHKHC fee dependence remains: FRMO earns substantially all advisory fees from Horizon Kinetics Holding Corporation.
- Minor pointJune transition-period revenue declined to $270,000 from $324,000 in June 2025.
- Minor pointJune transition-period operating expenses increased to $225,000 from $148,000 in June 2025.
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, NY / ACCESS Newswire / November 12, 2026 / FRMO Corp. (the "Company" or "FRMO") (OTCID:FRMO) reported its financial results for the fiscal year 2027 first quarter ended September 30, 2026.
On July 10, 2026, the Company's Board of Directors approved a change in FRMO's fiscal year end from May 31 to June 30. As a result of the change in fiscal year, there was a one month transition period (the "Transition Period") beginning on June 1, 2026, and ending on June 30, 2026. The quarterly report includes both the one-month Transition Period and the first fiscal quarter for the three months ended September 30, 2026, as well as comparable periods from the prior year.
FRMO's total book value as of September 30, 2026 was
The Company's consulting and advisory fees decreased during the three months ended September 30, 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 lower management and advisory fees in the three months ended September 30, 2026 compared to the same period in 2025.
Current assets, comprised primarily of cash and cash equivalents, amounted to
FRMO's net loss attributable to the Company for the quarter ended September 30, 2026 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 September 30, 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 September 30, 2026. The market value of several securities and digital assets might have changed substantially since that date.
The interim condensed consolidated financial statements include the accounts of FRMO Corporation and its controlled subsidiaries (collectively referred to as the "Company"). The Company holds an equity interest in Horizon Kinetics Hard Assets LLC ("HKHA"), a company formed by Horizon Kinetics Holding Corporation ("HKHC") and certain officers, principal stockholders and directors of the Company. The Company owns
Further details are available in the Company's Condensed Consolidated Financial Statements for the three months ended September 30, 2026 and 2025 and for the Transition Period. 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.
Conference Call
Co-CEOs Peter Doyle and Steven Bregman, and David Arndt, CFO, will host a conference call on Thursday, November 19, 2026 at 4:15 p.m. Eastern Time. Only questions submitted to info@frmocorp.com before 9:00 p.m. ET on Wednesday, November 18, will be considered. You may register for the conference call by clicking on the following link:
Please register for FRMO 1Q 2027 Quarterly Conference Call on November 19, 2026 4:15 PM ET at:
https://attendee.gotowebinar.com/register/8282753492648824408
After registering, you will receive a confirmation email containing information about joining the webinar.
An audio replay link will be available on the FRMO website (https://frmocorp.com/q_transcripts.html) until the summary transcript is posted.
FRMO CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
| September 30, | June 30, | May 31, | ||||||||||
| 2026 | 2026 | 2026 | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
Assets | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 46,325 | $ | 47,637 | $ | 46,967 | ||||||
Accounts receivable (due from related parties) | 818 | 914 | 599 | |||||||||
Other current assets | 4 | 142 | 143 | |||||||||
Total current assets | 47,147 | 48,693 | 47,709 | |||||||||
Digital mining assets, net of accumulated depreciation of | - | - | 13 | |||||||||
Equity securities, at fair value | 361,822 | 480,769 | 433,928 | |||||||||
Digital assets, at fair value | 13,682 | 9,521 | 11,976 | |||||||||
Investments in limited partnerships and other equity investments at fair value | 184,302 | 201,164 | 204,350 | |||||||||
Other investments | 14,343 | 13,696 | 16,976 | |||||||||
Investment in Horizon Kinetics Holding Corporation | 18,822 | 27,187 | 22,162 | |||||||||
Horizon Kinetics Holding Corporation royalty participation | 10,200 | 10,200 | 10,200 | |||||||||
Total assets | $ | 650,318 | $ | 791,230 | $ | 747,314 | ||||||
Liabilities and Stockholders' Equity | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable and accrued expenses | $ | 953 | $ | 672 | $ | 397 | ||||||
Income taxes payable | 546 | 993 | 822 | |||||||||
Securities sold, not yet purchased | 557 | 678 | 705 | |||||||||
Total current liabilities | 2,056 | 2,343 | 1,924 | |||||||||
Deferred tax liability | 81,709 | 101,121 | 98,179 | |||||||||
Total liabilities | 83,765 | 103,464 | 100,103 | |||||||||
Commitments and contingencies (Note 11) | ||||||||||||
Stockholders' equity | ||||||||||||
Redeemable preferred stock - | - | - | - | |||||||||
Common stock - | 44 | 44 | 44 | |||||||||
Additional paid-in capital | 45,527 | 45,501 | 45,492 | |||||||||
Retained earnings | 256,093 | 291,842 | 285,441 | |||||||||
Stockholders' equity attributable to the Company | 301,664 | 337,387 | 330,977 | |||||||||
Noncontrolling interests | 264,889 | 350,379 | 316,234 | |||||||||
Total stockholders' equity | 566,553 | 687,766 | 647,211 | |||||||||
Total liabilities and stockholders' equity | $ | 650,318 | $ | 791,230 | $ | 747,314 | ||||||
FRMO CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
| Three Months Ended September 30, | Month Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenue: | ||||||||||||||||
Consulting and advisory fees and other income | $ | 802 | $ | 907 | $ | 270 | $ | 324 | ||||||||
Total revenue | 802 | 907 | 270 | 324 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative expenses | 347 | 372 | 212 | 143 | ||||||||||||
Depreciation | - | 14 | 13 | 5 | ||||||||||||
Total operating expenses | 347 | 386 | 225 | 148 | ||||||||||||
Other income (expense) | ||||||||||||||||
Dividends and interest income, net | 1,230 | 1,103 | 901 | 745 | ||||||||||||
Net realized gain (loss) from investments | (10 | ) | 46 | (5 | ) | (3 | ) | |||||||||
Equity earnings from limited partnerships, limited liability companies, and other equity investments | 1,875 | 918 | 303 | 163 | ||||||||||||
Unrealized gain (loss) from investments | (27,296 | ) | (4,804 | ) | 1,542 | (547 | ) | |||||||||
Unrealized gain (loss) from equity securities | (119,953 | ) | (36,906 | ) | 43,518 | (19,925 | ) | |||||||||
Unrealized gain (loss) from digital assets | 4,159 | 1,206 | (2,455 | ) | 403 | |||||||||||
Total other income (expense), net | (139,995 | ) | (38,437 | ) | 43,804 | (19,164 | ) | |||||||||
Income (loss) from operations before provision for income taxes | (139,540 | ) | (37,916 | ) | 43,849 | (18,988 | ) | |||||||||
Income tax (expense) benefit | 18,849 | 2,675 | (3,112 | ) | 1,694 | |||||||||||
Net income (loss) | (120,691 | ) | (35,241 | ) | 40,737 | (17,294 | ) | |||||||||
Less: net (income) loss attributable to noncontrolling interests | 84,942 | 30,271 | (34,336 | ) | 16,452 | |||||||||||
Net income (loss) attributable to the Company | $ | (35,749 | ) | $ | (4,970 | ) | $ | 6,401 | $ | (842 | ) | |||||
Net income (loss) per common share | ||||||||||||||||
Basic | $ | (0.81 | ) | $ | (0.11 | ) | $ | 0.15 | $ | (0.02 | ) | |||||
Diluted | $ | (0.81 | ) | $ | (0.11 | ) | $ | 0.15 | $ | (0.02 | ) | |||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 44,023 | 44,023 | 44,023 | 44,023 | ||||||||||||
Diluted | 44,023 | 44,023 | 44,024 | 44,023 | ||||||||||||
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 September 30, 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 and digital assets 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 September 30, | ||||||||||||||||
| 2026 | 2025 | |||||||||||||||
| Amount | Diluted earnings (loss) per common share | Amount | Diluted earnings (loss) per common share | |||||||||||||
| (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 | $ | (35,749 | ) | $ | (0.81 | ) | $ | (4,970 | ) | $ | (0.11 | ) | ||||
Unrealized gain (loss) from equity securities and digital assets | (115,794 | ) | (35,700 | ) | ||||||||||||
Unrealized gain (loss) from equity securities and digital assets attributable to noncontrolling interests | (85,493 | ) | (30,802 | ) | ||||||||||||
Unrealized gain (loss) from equity securities and digital assets attributable to the Company | (30,301 | ) | (4,898 | ) | ||||||||||||
Tax (provision) benefit on unrealized gain (loss) from equity securities and digital assets attributable to the company | 2,809 | (720 | ) | |||||||||||||
Unrealized gain (loss) from equity securities and digital assets attributable to the Company, net of taxes | (27,492 | ) | $ | (0.62 | ) | (5,618 | ) | $ | (0.13 | ) | ||||||
Net income (loss) attributable to the Company excluding the effect of unrealized gain (loss) from equity securities and digital assets | $ | (8,257 | ) | $ | (0.19 | ) | $ | 648 | $ | 0.01 | ||||||
Weighted average diluted shares outstanding | 44,023 | 44,023 | ||||||||||||||
SOURCE: FRMO Corp.
View the original press release on ACCESS Newswire
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were FRMO's fiscal 2027 first-quarter earnings?
FRMO recorded an attributable net loss of $35.7 million, or $0.81 per diluted share, for the three months ended September 30, 2026. The prior-year quarter had a $5.0 million loss, or $0.11 per diluted share.
Why does FRMO's fiscal 2027 first-quarter report include a June transition period?
FRMO changed its fiscal year-end from May 31 to June 30, creating a one-month transition period from June 1 through June 30, 2026. The board approved the change on July 10, 2026. The quarterly report includes that transition month and the three months ended September 30, 2026, with comparable prior-year periods.