📊 HKHC Key Takeaways
Is HKHC a Good Investment? Thesis Analysis
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.
Why Buy 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
HKHC Investment Risks to Consider
- 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
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
HKHC Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 4.92x current ratio provides a solid financial cushion.
HKHC Profitability Ratios
HKHC vs Default Sector
How Horizon Kinetics Holding Corp compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HKHC Overvalued or Undervalued?
Based on fundamental analysis, Horizon Kinetics Holding Corp has mixed fundamental signals relative to the Default 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.
HKHC Balance Sheet & Liquidity
HKHC 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
HKHC Quarterly 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.
HKHC Capital Allocation
HKHC SEC 10-K & 10-Q Filing 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 an AI rating of SELL with 88% 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.
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.
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 88% 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 Default stocks?
Vs Default sector averages: Net margin 7.0% (avg: 12%), ROE 1.5% (avg: 15%), current ratio 4.92 (avg: 1.8).