Horizon Kinetics Reports 63% Revenue Growth to $19.8 Million in Q1 2025

Horizon Kinetics Holding Corporation reported significant financial performance for the first quarter of 2025, with total revenue reaching $19.8 million, a 63% increase from $12.1 million in the same period of 2024. The growth was primarily driven by a substantial rise in management and advisory fees, which surged to $18.9 million from $12.0 million year-over-year. The company also recorded a net income of $22.8 million, down from $40.8 million in the prior year, largely due to increased operating expenses and a notable decline in unrealized gains on digital assets.

The company’s operating expenses increased to $18.5 million from $12.2 million, reflecting higher compensation costs and marketing expenses associated with its recent acquisition of Scott’s Liquid Gold. Compensation and related employee benefits rose by 51% to $9.6 million, while sales, distribution, and marketing expenses more than doubled to $4.5 million. The increase in expenses was attributed to the expansion of personnel and higher commissions linked to the growth in assets under management (AUM).

As of March 31, 2025, Horizon Kinetics reported AUM of $10.8 billion, a 10% increase from the previous quarter, driven by favorable market conditions and net cash inflows into its various investment products. The company’s investments at fair value totaled $105.3 million, representing 5.1% of total assets. The firm also noted a significant increase in customer accounts, indicating a positive trend in client engagement and product adoption.

In terms of strategic developments, Horizon Kinetics has been actively consolidating certain proprietary funds, which has led to a gross-up effect on reported assets and liabilities. The company’s consolidated investment products generated $70.3 million in investment and other income for the quarter, although this was down from $271.9 million in the prior year, reflecting market volatility and performance fluctuations. The company continues to face challenges related to its internal controls, with material weaknesses identified in its financial reporting processes, which management is actively working to remediate.

Looking ahead, Horizon Kinetics remains cautiously optimistic about its growth trajectory, emphasizing the importance of market conditions and the performance of its investment products. The company has declared a cash dividend of $0.056 per share, payable on June 16, 2025, reflecting its commitment to returning value to shareholders while navigating the complexities of the current economic landscape.