📊 HKHC Key Takeaways
Is Horizon Kinetics Holding Corp (HKHC) a Good Investment?
Despite robust 30.5% revenue growth, fundamental quality is severely deteriorating as evidenced by -$43.1M negative operating cash flow against $5.1M positive net income, indicating poor earnings quality or unsustainable accounting practices. The 94.7% collapse in diluted EPS coupled with an abnormally low 1.0% gross margin suggests unprofitable growth and potential structural business deterioration.
Horizon Kinetics delivers strong top-line growth and maintains a very conservative balance sheet with minimal leverage and ample liquidity. However, earnings quality is mixed—net income and EPS declined, margins are only mid-teens at the operating level, and cash conversion is poor with sizable negative operating cash flow. A stabilization in profitability and a return to positive, consistent free cash flow are needed before a more constructive view.
Why Buy Horizon Kinetics Holding Corp Stock? HKHC Key Strengths
- Strong revenue growth of 30.5% year-over-year
- Minimal financial leverage with 0.01x debt-to-equity ratio and only $3.5M long-term debt
- Excellent liquidity with 4.92x current ratio and $36.9M cash position
- Robust revenue growth (+30.5% YoY)
- Strong liquidity and very low leverage (current ratio 4.92x; debt/equity 0.01x)
- Positive operating income and high interest coverage (76.4x)
HKHC Stock Risks: Horizon Kinetics Holding Corp Investment Risks
- Extreme earnings-to-cash-flow disconnect: $5.1M net income offset by -$43.1M operating cash flow indicates severe quality of earnings issues
- Profitability collapsing despite revenue growth: net income down 14.7% and EPS down 94.7% suggests unprofitable expansion
- Abnormally low 1.0% gross margin for investment advice sector raises concerns about business model sustainability or accounting practices
- Negative operating and free cash flow indicating weak cash conversion
- Earnings deterioration (net income -14.7% YoY; EPS -94.7%)
- Low returns on capital (ROE 1.5%, ROA 0.3%)
Key Metrics to Watch
- Operating cash flow trend - must turn positive to validate earnings quality
- Gross margin sustainability - 1.0% is unsustainable and needs investigation
- Net income trajectory relative to revenue - currently moving in opposite directions indicating deteriorating business economics
- Operating cash flow
- Operating margin
Horizon Kinetics Holding Corp (HKHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.92x current ratio provides a solid financial cushion.
HKHC Profit Margin, ROE & Profitability Analysis
HKHC vs Market Sector: How Horizon Kinetics Holding Corp Compares
How Horizon Kinetics Holding Corp compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Horizon Kinetics Holding Corp Stock Overvalued? HKHC Valuation Analysis 2026
Based on fundamental analysis, Horizon Kinetics Holding Corp has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Horizon Kinetics Holding Corp Balance Sheet: HKHC Debt, Cash & Liquidity
HKHC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Horizon Kinetics Holding Corp's revenue has grown significantly by 120% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.07 reflects profitable operations.
HKHC Revenue Growth, EPS Growth & YoY Performance
HKHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $13.1M | $7.2M | $0.39 |
| Q2 2025 | $11.4M | -$10.5M | $-0.56 |
| Q1 2025 | $12.1M | $22.8M | $1.23 |
| Q3 2024 | $12.7M | -$6.9M | $-0.38 |
| Q2 2024 | $718.0K | -$84.0K | $-0.03 |
| Q1 2024 | $852.0K | $369.0K | $0.03 |
| Q3 2023 | $733.0K | $369.0K | $-0.06 |
| Q2 2023 | $1.1M | -$84.0K | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Horizon Kinetics Holding Corp Dividends, Buybacks & Capital Allocation
HKHC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Horizon Kinetics Holding Corp (CIK: 0000088000)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HKHC
What is the AI rating for HKHC?
Horizon Kinetics Holding Corp (HKHC) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HKHC's key strengths?
Claude: Strong revenue growth of 30.5% year-over-year. Minimal financial leverage with 0.01x debt-to-equity ratio and only $3.5M long-term debt. ChatGPT: Robust revenue growth (+30.5% YoY). Strong liquidity and very low leverage (current ratio 4.92x; debt/equity 0.01x).
What are the risks of investing in HKHC?
Claude: Extreme earnings-to-cash-flow disconnect: $5.1M net income offset by -$43.1M operating cash flow indicates severe quality of earnings issues. Profitability collapsing despite revenue growth: net income down 14.7% and EPS down 94.7% suggests unprofitable expansion. ChatGPT: Negative operating and free cash flow indicating weak cash conversion. Earnings deterioration (net income -14.7% YoY; EPS -94.7%).
What is HKHC's revenue and growth?
Horizon Kinetics Holding Corp reported revenue of $72.8M.
Does HKHC pay dividends?
Horizon Kinetics Holding Corp pays dividends, with $6.3M distributed to shareholders in the trailing twelve months.
Where can I find HKHC SEC filings?
Official SEC filings for Horizon Kinetics Holding Corp (CIK: 0000088000) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HKHC's EPS?
Horizon Kinetics Holding Corp has a diluted EPS of $0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HKHC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Horizon Kinetics Holding Corp has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HKHC stock overvalued or undervalued?
Valuation metrics for HKHC: ROE of 1.5% (sector avg: 15%), net margin of 7.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HKHC stock in 2026?
Our dual AI analysis gives Horizon Kinetics Holding Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HKHC's free cash flow?
Horizon Kinetics Holding Corp's operating cash flow is $-43.1M, with capital expenditures of $315.0K. FCF margin is -59.6%.
How does HKHC compare to other Market stocks?
Vs Default sector averages: Net margin 7.0% (avg: 12%), ROE 1.5% (avg: 15%), current ratio 4.92 (avg: 1.8).