FRMO Corp. Announces Fiscal 2027 First Quarter Results and Conference Call
FRMO Corp. Announces Fiscal 2027 First Quarter Results and Conference Call
Financial highlights for the first quarter ended September 30, 2026:
- Consulting and advisory fees of $0.8 million for the first quarter of fiscal 2027, a decrease of 12% from fiscal 2026
- Other loss, net of $140.0 million for the first quarter of fiscal 2027, an increase of 264% from fiscal 2026
- Net loss attributable to FRMO of $35.7 million, an increase in the net loss attributable to the Company of $30.8 million from the first quarter of 2026
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 $566.6 million. Excluding the non-controlling interests, equity attributable to shareholders was $301.7 million ($6.85 per share). This compares with total book value at June 30, 2026 of $687.8 million. Excluding the non-controlling interests, equity attributable to shareholders was $337.4 million ($7.66 per share) at June 30, 2026.
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 $47.1 million as of September 30, 2026, and $48.7 million as of June 30, 2026. Total liabilities were $83.8 million as of September 30, 2026, and $103.5 million as of June 30, 2026, comprised primarily of deferred taxes and securities sold, not yet purchased.
FRMO's net loss attributable to the Company for the quarter ended September 30, 2026 was $35.7 million ($0.81 per diluted share), compared to a net loss of $5.0 million ($0.11 per diluted share) a year earlier. The equity security investment that primarily accounts for the net loss is identified as Investment A in Note 4 of the Interim Condensed Consolidated Financial Statements under Investment Concentration.
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 $8.3 million ($0.19 per diluted share) compared to net income of $0.6 million ($0.01 per diluted share) for the three months ended September 30, 2025.
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 4.42% of HKHC and earns substantially all of its advisory fees from HKHC. Due to the common control and ownership between HKHA and the Company's principal stockholders and directors, HKHA has been consolidated within the Company's financial statements. The noncontrolling interest in HKHA has been eliminated from results of operations for all periods presented. Total stockholders' equity includes, as a separate item, the amount attributable to the noncontrolling interests.
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 [email protected] 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 $0, $0, and $85 at September 30, June 30, and May 31, 2026, respectively | - | - | 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 - $0.001 par value; authorized 2,000 shares; no shares outstanding | - | - | - | |||
Common stock - $0.001 par value, authorized 90,000 shares; issued and outstanding 44,023 shares at September 30, June 30, and May 31, 2026, respectively | 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 Lihttps://attendee.gotowebinar.com/register/8282753492648824408tion 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: [email protected]
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
P.Ortiz--RTC
