Horizon Kinetics Holding Corporation Reports Fourth Quarter and Annual Results

Rhea-AI Summary

Horizon Kinetics Holding (HKHC) reported strong financial results for Q4 and full-year 2024. Annual revenues reached $57.2 million, up 21.0%, while Q4 revenues grew 81.8% to $19.2 million. The company posted net income of $92.5 million ($5.07 per share) for 2024 and $75.8 million ($4.07 per share) for Q4.

Assets under management (AUM) increased significantly to $9.8 billion, showing 18% growth in Q4 and 52% growth year-over-year. This growth was primarily driven by increased market value of holdings in Texas Pacific Land (up 111% YoY) and Grayscale Bitcoin Trust (up 114% YoY).

The company earned $51.7 million in incentive fees from proprietary funds in 2024 and benefited from unrealized gains of $40.3 million from investment holdings and $7.0 million from digital assets. The Board declared a dividend of $0.107 per share, payable March 28, 2025.

Positive

• Revenue growth of 81.8% in Q4 2024
• 52% increase in AUM to $9.8 billion
• Strong net income of $92.5 million for 2024
• $51.7 million in incentive fees earned
• Significant unrealized gains from investments ($40.3M) and digital assets ($7.0M)

Negative

• Higher operating expenses and commissions
• Non-cash deferred income tax expense of $59.7M due to C-Corp conversion

Annual and Fourth Quarter 2024 Highlights:

• Revenues of $57.2 million for the year ended December 31, 2024, an increase of 21.0%

• Revenues of $19.2 million for the fourth quarter of 2024, an increase of 81.8%

• Net income attributable to Horizon Kinetics Holding Corporation of $75.8 million and $92.5 million, or $4.07 and $5.07 per common share for the three months and year ended December 31, 2024, respectively

• Assets under management ("AUM") grew to $9.8 billion as of December 31, 2024, an increase of 18% for the fourth quarter and 52% for the year ended December 31, 2024

• Board of Directors declares a $0.107 per share dividend

NEW YORK, NY / ACCESS Newswire / March 26, 2025 / Horizon Kinetics Holding Corporation (the "Company" or "HKHC") (OTC PINK:HKHC) reported financial results for its fourth quarter and year ended December 31, 2024.

The Company continued to grow revenues during the fourth quarter resulting from continued increases in AUM in its proprietary funds, separately managed accounts, ETFs and mutual funds. The increases in AUM across many of these platforms were largely driven by the increases in the market value of Texas Pacific Land Corporation ("TPL"), which increased 25% during the quarter and 111% for the year and Grayscale Bitcoin Trust ("GBTC"), which increased 47% during the quarter and 114% for the year.

The Company's revenue increases were partially offset by a variety of higher operating expenses, including higher commissions on the higher revenues and general and administrative costs related to the acquisition of Scott's Liquid Gold and various professional and legal fees.

The Company benefited from incentive fees of $51.7 million earned from proprietary funds during the year ended December 31, 2024, which were predominantly recorded during the fourth quarter. The economic benefit is reflected primarily in the attribution to redeemable noncontrolling interests in the consolidated statement of operations. Similarly, the Company benefited from its interests within the consolidated investment products of approximately $101.0 million for the year ended December 31, 2024 as a result of their unrealized gains of $840.7 million for the year ended December 31, 2024.

The Company also benefited from unrealized gains of $40.3 million and $16.4 million for the year and three months ended December 31, 2024, respectively, from its investment holdings as well as unrealized gains of $7.0 million and $4.2 million for the year and three months ended December 31, 2024, respectively, from its digital asset holdings.

In connection with the August 1, 2024 merger transaction, the Company converted from an LLC to a C-Corp for federal and state income tax purposes. As a result, the Company recognized a non-cash deferred income tax expense of $59.7 million related to the tax basis differences for certain assets, principally unrealized gains in various investments, digital assets and indefinite lived intangible assets.

On March 6, 2025, the Company issued a press release announcing that, on March 3, 2025, the Company's Board of Directors declared a cash dividend of $0.107 per share, payable on March 28, 2025, to shareholders of record as of the close of business on March 17, 2025.

Conference Call

Murray Stahl, Chairman and Chief Executive Officer, and Mark Herndon, Chief Financial Officer, will host a conference call on Wednesday, April 2, 2025, at 4:15 p.m. EDT. You may register for the conference call by clicking on the following link: https://attendee.gotowebinar.com/register/7489969312130245721

HORIZON KINETICS HOLDING CORPORATION
Consolidated Statements of Operations
(in thousands)

		Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
						As Restated								As Restated
Revenue:
Management and advisory fees		$	18,209			$	10,532			$	55,486			$	46,845
Other income and fees			995				33				1,695				418
Total revenue			19,204				10,565				57,181				47,263
Operating expenses:
Compensation, related employee benefits, and cost of goods sold			18,280				6,028				38,579				26,851
Sales, distribution and marketing			11,504				2,387				19,510				10,209
Depreciation and amortization			505				460				1,919				1,828
General and administrative expenses			2,950				2,818				10,383				8,493
Expenses of consolidated investment products			668				464				2,319				1,664
Total operating expenses			33,907				12,157				72,710				49,045
Operating income (loss)			(14,703	)			(1,592	)			(15,529	)			(1,782	)
Other income (expense):
Equity earnings (losses), net			2,354				(816	)			6,037				(2,448	)
Interest and dividends			453				357				1,714				826
Other income (expense)			(127	)			(695	)			(2,985	)			(669	)
Investment and other income (losses) of consolidated investment products, net			398,266				110,324				840,735				92,962
Interest and dividend income of consolidated investment products			2,883				3,849				20,377				14,206
Unrealized gain on digital assets, net			4,192				-				6,984				-
Realized gain on investments, net			90				(21	)			432				1,388
Unrealized gain (loss) on investments net			16,386				(4,638	)			41,329				(15,376	)
Total other income (expense), net			424,497				108,360				914,623				90,889
Income before provision for income taxes			409,794				106,768				899,094				89,107
Income tax (expense) benefit			(33,548	)			829				(104,283	)			122
Net income			376,246				106,183				794,811				89,229
Less: net income attributable to redeemable noncontrolling interests			(300,486	)			(103,754	)			(702,339	)			(93,721	)
Net income (loss) attributable to Horizon Kinetics Holding Corporation		$	75,760			$	2,429			$	92,472			$	(4,492	)
Basic and diluted net income (loss) per common shares:
Net income (loss)		$	4.07			$	0.14			$	5.07			$	(0.25	)
Weighted average shares outstanding:
Basic and diluted			18,634				17,984				18,256				17,984

HORIZON KINETICS HOLDING CORPORATION
Consolidated Statements of Financial Condition
(in thousands)

		December 31,				December 31,
		2024				2023
						As Restated
Assets
Cash and cash equivalents		$	14,446			$	10,477
Fees receivable			8,670				3,304
Investments, at fair value			91,435				37,620
Assets of consolidated investment products
Cash and cash equivalents			44,306				59,117
Investments, at fair value			1,746,850				903,435
Other assets			19,247				19,903
Other investments			13,443				6,990
Operating lease right-of-use assets			5,105				5,651
Property and equipment, net			99				200
Prepaid expenses and other assets			2,352				1,882
Due from affiliates			27				2,660
Digital assets			13,240				1,829
Intangible assets, net			44,531				43,876
Goodwill			24,425				19,273
Total assets		$	2,028,176			$	1,116,217
Liabilities, Noncontrolling Interests, and Shareholders' Equity
Liabilities:
Accounts payable, accrued expenses and other		$	22,011			$	3,839
Accrued third party distribution expenses			6,522				1,022
Deferred revenue			222				70
Liabilities of consolidated investment products
Accounts payable and accrued expenses			1,486				5,840
Other liabilities			2,793				160
Deferred tax liability, net			95,683				617
Due to affiliates			11,597				9,966
Operating lease liability			7,379				7,281
Total liabilities			147,693				28,795
Commitments and contingencies
Redeemable noncontrolling interests			1,540,312				878,334
Shareholders' equity
Preferred stock, no par value, authorized 20,000 shares; no shares issued and outstanding			-				-
Common stock; $0.10 par value, authorized 50,000 shares; issued and outstanding 18,635 shares (2024) and 17,984 shares (2023), net of treasury stock; 1 and 0 shares at December 31, 2024 and December 31, 2023, respectively			1,864				1,798
Additional paid-in capital			39,243				-
Retained earnings			299,064				207,290
Total shareholders' equity			340,171				209,088
Total liabilities, noncontrolling interests, and shareholders' equity		$	2,028,176			$	1,116,217

Additional Information about our performance

As previously announced, the Company consolidates certain proprietary funds in order for the consolidated financial statements to conform with generally accepted accounting principles. As a result, the assets and liabilities of the applicable consolidated funds is presented on the Company's consolidated statements of financial condition. Additionally, an amount that represents the Company's clients' interests in these consolidated proprietary funds will be presented as redeemable noncontrolling interests on the Company's consolidated statements of financial condition. The investment income (losses), other income (losses) and the expenses of the consolidated investment products will be presented within the Company's consolidated statements of operations. Additionally, an amount that represents the net income attributable to redeemable noncontrolling interests as well as the net income (loss) attributable to Horizon Kinetics Holding Corporation will be presented on the Company's consolidated statement of operations.

Consolidated Investment Products ("CIPs") consist of certain private proprietary investment funds which are sponsored by the Company. The Company has no right to the CIPs' assets, other than its direct equity investments in them and investment management and other fees earned from them. The liabilities of the CIPs have no recourse to the Company's assets beyond the level of its direct investment, therefore the Company bears no other risks associated with the CIPs' liabilities.

As indicated in the additional information presented in the tables below there are several notable presentational differences as a result of the consolidation of the CIPs:

• Management and advisory fees, including incentive fees, from CIPs are eliminated from consolidated revenues. Accordingly, our presentation without the CIPs reflects an increased revenue growth to $113.2 million, a 122% increase from 2023, which is largely attributable to the incentive fees of $51.7 million from our proprietary funds.

• The equity in earnings of proprietary funds which results primarily from CIPs are eliminated from the consolidated presentation as that activity is included within the investment results of the CIPs. Accordingly, our presentation without the CIPs reflects an increased level of equity earnings that presents an increase in the value of our holdings within the CIPs. During 2024, this increased equity earnings is the result of unrealized gains due to fair value increases across several proprietary funds generally due to increases in TPL and GBTC.

• Stockholders' equity and net income attributable to Horizon Kinetics Holding Corporation are not impacted by the consolidation process.

• The Statement of Financial Condition without the consolidation of proprietary funds presents lower total assets as a result of excluding the total assets held by the CIPs as well as the associated redeemable noncontrolling interests, which represents our clients' interests in these funds. A portion of the total assets held by proprietary funds continues to relate to economic interests held by Horizon Kinetics Holding Corporation, which is reflected in Other Investments in the presentation below, which increased $124.9 million, or 120%, during 2024 primarily as a result of the performance of the CIPs.

HORIZON KINETICS HOLDING CORPORATION
Statements of Operations (Unaudited)
(in thousands)

		(without consolidation of proprietary funds)
		Year Ended December 31,
		2024				2023
Revenue:
Management and advisory fees		$	111,481			$	50,563
Other income and fees			1,695				418
Total revenue			113,176				50,981
Operating expenses:
Compensation, related employee benefits, and cost of goods sold			38,579				26,851
Sales, distribution and marketing			19,510				10,209
Depreciation and amortization			1,919				1,828
General and administrative expenses			10,490				8,581
Expenses of consolidated investment products			-				-
Total operating expenses			70,498				47,469
Operating income			42,678				3,512
Other income (expense):
Equity in earnings of proprietary funds, net			106,603				5,705
Interest and dividends			1,714				826
Other income (expense)			(2,985	)			(669	)
Investment and other income (losses) of consolidated investment products, net			-				-
Interest and dividend income of consolidated investment products			-				-
Unrealized (loss) gain on digital assets, net			6,984				-
Realized gain on investments, net			432				1,388
Unrealized gain (loss) on investments net			41,329				(15,376	)
Total other income (expense), net			154,077				(8,126	)
Income (loss) before provision for income taxes			196,755				(4,614	)
Income tax (expense) benefit			(104,283	)			122
Net income (loss)			92,472				(4,492	)
Less: net income attributable to redeemable noncontrolling interests			-				-
Net income (loss) Attributable to Horizon Kinetics Holding Corporation		$	92,472			$	(4,492	)
Basic and diluted net income (loss) per common shares:
Net income (loss)		$	5.07			$	(0.25	)
Weighted average shares outstanding:
Basic and diluted			18,256				17,984

		Year Ended December 31, 2024
		Consolidated Company Entities				Consolidated Investment Products				Eliminations				Consolidated
Revenue:
Management and advisory fees		$	111,481			$	-			$	(55,995	)		$	55,486
Other income and fees			1,695				-								1,695
Total revenue			113,176				-				(55,995	)			57,181
Operating expenses:
Compensation, related employee benefits, and cost of goods sold			38,579				-				-				38,579
Sales, distribution and marketing			19,510				-				-				19,510
Depreciation and amortization			1,919				-				-				1,919
General and administrative expenses			10,490				-				(107	)			10,383
Expenses of consolidated investment products			-				10,215				(7,896	)			2,319
Total operating expenses			70,498				10,215				(8,003	)			72,710
Operating income			42,678				(10,215	)			(47,992	)			(15,529	)
Other income (expense):
Equity in earnings of proprietary funds, net			106,603				-				(100,566	)			6,037
Interest and dividends			1,714				-				-				1,714
Other income (expense)			(2,985	)			-				-				(2,985	)
Investment and other income (losses) of consolidated investment products, net			-				840,735				-				840,735
Interest and dividend income of consolidated investment products			-				20,377				-				20,377
Unrealized (loss) gain on digital assets, net			6,984				-				-				6,984
Realized gain on investments, net			432				-				-				432
Unrealized gain (loss) on investments net			41,329				-				-				41,329
Total other income (expense), net			154,077				861,112				(100,566	)			914,623
Income (loss) before provision for income taxes			196,755				850,897				(148,558	)			899,094
Income tax (expense) benefit			(104,283	)			-				-				(104,283	)
Net income (loss)		$	92,472			$	850,897			$	(148,558	)		$	794,811
Less: net income attributable to redeemable noncontrolling interests			-				(762,695	)			60,356				(702,339	)
Net income (loss) attributable to Horizon Kinetics Holding Corporation		$	92,472			$	88,202			$	(88,202	)		$	92,472

HORIZON KINETICS HOLDING CORPORATION
Statements of Financial Condition (Unaudited)
(in thousands)

		(without consolidation of proprietary funds)
		December 31,
		2024				2023
Assets
Cash and cash equivalents		$	14,446			$	10,477
Fees receivable			59,047				4,453
Investments, at fair value			91,447				37,620
Assets of consolidated investment products
Cash and cash equivalents			-				-
Investments, at fair value			-				-
Other assets			-				-
Other Investments			228,871				103,962
Operating lease right-of-use assets			5,105				5,651
Property and equipment, net			99				200
Prepaid expenses and other assets			2,350				1,882
Due from affiliates			34				2,660
Digital assets			13,240				1,829
Intangible assets, net			44,531				43,876
Goodwill			24,425				19,273
Total Assets		$	483,595			$	231,883
Liabilities, Noncontrolling Interests, and Shareholders' Equity
Liabilities:
Accounts payable, accrued expenses and other		$	22,011			$	3,839
Accrued third party distribution expenses			6,522				1,022
Deferred revenue			222				70
Liabilities of consolidated investment products
Accounts payable and accrued expenses			-				-
Other liabilities			-				-
Deferred tax liability, net			95,684				617
Due to affiliates			11,597				9,966
Operating lease liability			7,379				7,281
Total Liabilities			143,415				22,795
Commitments and contingencies
Redeemable Noncontrolling Interests			-				-
Shareholders' Equity
Preferred stock, no par value, authorized 20,000 shares; no shares issued and outstanding			-				-
Common stock; $0.10 par value, authorized 50,000 shares; issued and outstanding 18,635 shares (2024) and 17,984 shares (2023), net of treasury stock; 1 and 0 shares at December 31, 2024 and December 31, 2023, respectively			1,864				1,798
Additional paid-in capital			39,223				-
Retained earnings			299,093				207,290
Total Shareholders' Equity			340,180				209,088
Total Liabilities, Noncontrolling Interests, and Shareholders' Equity		$	483,595			$	231,883

		December 31, 2024
		Consolidated Company Entities				Consolidated Investment Products				Eliminations				Consolidated
Assets
Cash and cash equivalents		$	14,446			$	-			$	-			$	14,446
Fees receivable			59,047				-				(50,377	)			8,670
Investments, at fair value			91,435				-				-				91,435
Assets of consolidated investment products			-				-				-				-
Cash and cash equivalents			-				44,306				-				44,306
Investments, at fair value			-				1,746,850				-				1,746,850
Other assets			-				19,247				-				19,247
Other investments			228,870				-				(215,427	)			13,443
Digital assets			13,240				-				-				13,240
Intangible assets, net			44,531				-				-				44,531
Goodwill			24,425				-				-				24,425
Other assets			7,591				-				(8	)			7,583
Total assets		$	483,585			$	1,810,403			$	(265,812	)		$	2,028,176
Liabilities, Noncontrolling Interests, and Shareholders' Equity
Liabilities:
Accounts payable, accrued expenses and other		$	22,011			$	-			$	-			$	22,011
Accrued third party distribution expenses			6,522				-				-				6,522
Deferred revenue			222				-				-				222
Liabilities of consolidated investment products			-				-				-				-
Accounts payable and accrued expenses			-				1,494				(8	)			1,486
Due to affiliates			-				50,375				(50,375	)			-
Other liabilities			-				2,793				-				2,793
Deferred tax liability, net			95,683				-				-				95,683
Due to affiliates			11,597				-				-				11,597
Operating lease liability			7,379				-				-				7,379
Total liabilities			143,414				54,662				(50,383	)			147,693
Commitments and contingencies
Redeemable noncontrolling interests			-				1,574,414				(34,102	)			1,540,312
Equity interests			340,171				181,327				(181,327	)			340,171
Total liabilities, noncontrolling interests, and shareholders' equity		$	483,585			$	1,810,403			$	(265,812	)		$	2,028,176

Non-GAAP Measures

In discussing financial results, the Company presented tables without the consolidation of certain proprietary funds which is not in accordance with Generally Accepted Accounting Principles (GAAP). We use this non-GAAP financial measure internally to make operating and strategic decisions, including evaluating our overall performance and as a factor in determining compensation for certain employees. We believe presenting this non-GAAP financial measure provides additional information to facilitate comparison of our historical operating costs and their trends, and provides additional transparency on how we evaluate our financial condition and results of operations. We also believe presenting this measure allows investors to view our financial condition and results of operations using the same measure that we use in evaluating our performance and trends.

Note Regarding Forward-Looking Statements

This news release may contain "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "assumptions," "target," "guidance," "strategy," "outlook," "plans," "projection," "may," "will," "would," "expect," "intend," "estimate," "anticipate," "believe", "potential," or "continue" (or the negative or other derivatives of each of these terms) or similar terminology.

Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, or results may differ materially from those set forth in any forward-looking statement. Some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's subsequent Quarterly Reports on Form 10-Q and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent filings with the Securities and Exchange Commission.

About Horizon Kinetics Holding Corporation

Horizon Kinetics Holding Corporation (OTCM Pink:HKHC) primarily offers investment advisory services through its subsidiary Horizon Kinetics Asset Management LLC ("HKAM"), a registered investment adviser. HKAM provides independent proprietary research and investment advisory services for mainly long-only and alternative value-based investing strategies. The firm also obtained a portfolio of consumer products, which are marketed and distributed in the retail marketplace, as a result of its August 2024 merger with Scott's Liquid Gold-Inc. The firm's offices are located in New York City, White Plains, New York, and Summit, New Jersey. For more information, please visit http://www.hkholdingco.com.

Investor Relations Contact:
ir@hkholdingco.com

SOURCE: Horizon Kinetics Holding Corporation

View the original press release on ACCESS Newswire

FAQ

What was HKHC's revenue growth in Q4 2024?

HKHC's Q4 2024 revenue grew 81.8% to $19.2 million.

How much did HKHC's Assets Under Management (AUM) grow in 2024?

HKHC's AUM grew 52% in 2024, reaching $9.8 billion by December 31, 2024.

What is the dividend amount declared by HKHC for March 2025?

HKHC declared a cash dividend of $0.107 per share, payable on March 28, 2025.

How much did HKHC earn in incentive fees during 2024?

HKHC earned $51.7 million in incentive fees from proprietary funds during 2024.

What was HKHC's net income per share for full-year 2024?

HKHC's net income per share for 2024 was $5.07, with total net income of $92.5 million.