FRMO Corp. (OTCID:FRMO) has reported results for the fourth quarter and fiscal year ended May 31, 2026. The company recorded higher consulting and advisory fees in the fourth quarter, but lower fees for the full year, while its reported quarterly net loss increased from the prior-year period.
#Fourth-quarter and annual financial results
Consulting and advisory fees were $1.7 million in the fourth quarter of 2026, an increase of 76.3% from the same period in 2025. For the year ended May 31, 2026, the fees were $4.3 million, a decrease of 10.7% from the same period in 2025.
Other expense, net, was $171.6 million for the fourth quarter of 2026, an increase of 42.1% from 2025. For the year ended May 31, 2026, FRMO reported other income, net, of $23.5 million, a decrease of 91.3% from the same period in 2025.
FRMO reported a net loss attributable to the Company of $45.6 million, or $1.04 per diluted share, for the quarter ended May 31, 2026. This compared with a net loss of $26.6 million, or $0.60 per diluted share, a year earlier. The equity security investment primarily accounting for the quarterly net loss is identified as Investment A in Note 4 of the Consolidated Financial Statements under Investment Concentration.
For the year ended May 31, 2026, net income attributable to the Company was $2.9 million, or $0.07 per diluted share, compared with net income of $100.5 million, or $2.28 per diluted share, a year earlier.
#Results excluding unrealized gains or losses
FRMO also reported a non-GAAP measure that excludes the effect of unrealized gain or loss from equity securities and digital assets, net of taxes. For the three months ended May 31, 2026, the company recorded a net loss on this basis of $11.4 million, or $0.26 per diluted share, compared with net income of $2.5 million, or $0.06 per diluted share, for the three months ended May 31, 2025.
For the years ended May 31, 2026 and 2025, the corresponding figures were a net loss of $7.0 million, or $0.16 per diluted share, in 2026 and net income of $54.3 million, or $1.23 per diluted share, in 2025.
The company said this measure is supplemental, is not based on GAAP and is not a substitute for net income or loss attributable to the Company or a measure of overall profitability. It is defined and reconciled with the closest comparable GAAP measures in the release.
#Book value, assets and liabilities
FRMO's total book value was $647.2 million as of May 31, 2026. Excluding non-controlling interests, equity attributable to shareholders was $331.0 million, or $7.52 per share. At May 31, 2025, total book value was $626.1 million, while equity attributable to shareholders was $327.9 million, or $7.45 per share.
Current assets, consisting primarily of cash and cash equivalents, amounted to $47.7 million as of May 31, 2026, compared with $46.3 million as of May 31, 2025. Total liabilities were $100.1 million and $99.8 million at those respective dates, consisting primarily of deferred taxes and securities sold, not yet purchased.
FRMO said the consulting and advisory fee increase during the quarter reflected fees earned through its royalty participation with Horizon Kinetics Holding Corporation. HKHC recognized significant incentive fees during FRMO's quarter ended May 31, 2026.
#Ownership interests and valuation notice
As of May 31, 2026 and 2025, FRMO held a 21.78% and 21.82% equity interest in Horizon Kinetics Hard Assets LLC, respectively. The company owns 4.42% of Horizon Kinetics Holding Corporation and earns substantially all of its advisory fees from HKHC.
FRMO said the market value of several securities and digital assets might have changed substantially since May 31, 2026. The valuation of securities and digital assets is subject to change after that date.
#2026 Annual Meeting details
Co-CEOs Peter Doyle and Steven Bregman, together with CFO David Arndt, will host FRMO's 2026 Annual Meeting of Shareholders on Thursday, September 10, 2026 at 2:30 pm Eastern Time.
The meeting is scheduled to take place at Vinson & Elkins, L.L.P., 1114 Avenue of the Americas, 32nd Floor, New York, NY 10036, with online access also available. Virtual participants will need a proxy card and a unique 16-digit control number to vote and ask questions.
In-person attendance is limited to stockholders who owned common stock as of the close of business on July 14, 2026, the record date, or their duly appointed proxies, and one guest. Attendees must provide proof of ownership and valid government-issued photo identification. Registration will begin at 1:30 PM.
Shareholders and guests may submit questions in advance by 11:59 P.M. Eastern Time on Sunday, September 6, 2026. Shareholders whose shares are held through a bank, broker or other holder of record must bring a brokerage statement or equivalent proof of ownership. Holders of shares in certificate form will have ownership checked against the registered shareholder list as of the record date.
#Company profile and disclosures
FRMO describes itself as an intellectual capital firm providing consulting and advisory services in the asset management sector and engaging in the mining of digital assets. The company said it is looking for new ways to expand its digital assets mining operations. FRMO had 44,022,781 shares of common stock outstanding as of May 31, 2026.
The company's consolidated financial statements include FRMO Corporation and its controlled subsidiaries. Due to common control and ownership involving HKHA and FRMO's principal stockholders and directors, HKHA has been consolidated in the financial statements. The noncontrolling interest of 78.22% and 78.18% in HKHA has been eliminated from results of operations for the periods ended May 31, 2026 and 2025, respectively.
FRMO stated that matters in its release other than historical information are forward-looking statements involving risks and uncertainties. It said expected or anticipated results or events may not occur and that actual future results could differ significantly. The risks identified include maintaining competitive advantages, the general economics of the financial industry, financing growth, identifying and closing acquisitions on terms favorable to the Company, and a sustainable market.
#Key Takeaways
- Fourth-quarter consulting and advisory fees were $1.7 million, up 76.3% from the same period in 2025.
- Full-year consulting and advisory fees were $4.3 million, down 10.7% from the same period in 2025.
- FRMO reported a quarterly net loss attributable to the Company of $45.6 million and fiscal-year net income attributable to the Company of $2.9 million.
- Total book value was $647.2 million as of May 31, 2026, with equity attributable to shareholders of $331.0 million, or $7.52 per share.
- The 2026 Annual Meeting is scheduled for Thursday, September 10, 2026 at 2:30 pm Eastern Time, in person in New York and online.
#What financial results did FRMO Corp. report for the fourth quarter and fiscal year ended May 31, 2026?
FRMO reported consulting and advisory fees of $1.7 million for the fourth quarter of 2026, an increase of 76.3% from the same period in 2025. Fees for the year ended May 31, 2026 were $4.3 million, a decrease of 10.7% from the same period in 2025. Other expense, net, was $171.6 million for the fourth quarter of 2026, an increase of 42.1% from 2025. Other income, net, was $23.5 million for the year ended May 31, 2026, a decrease of 91.3% from the same period in 2025.
#What were FRMO's reported net income and net loss figures?
FRMO reported a net loss attributable to the Company of $45.6 million, or $1.04 per diluted share, for the quarter ended May 31, 2026. A year earlier, the net loss was $26.6 million, or $0.60 per diluted share. For the year ended May 31, 2026, net income attributable to the Company was $2.9 million, or $0.07 per diluted share, compared with net income of $100.5 million, or $2.28 per diluted share, a year earlier.
#What did FRMO report after excluding unrealized gains or losses from equity securities and digital assets?
FRMO reported a net loss attributable to the Company excluding the effect of unrealized gain or loss from equity securities and digital assets, net of taxes, of $11.4 million, or $0.26 per diluted share, for the three months ended May 31, 2026. For the three months ended May 31, 2025, the figure was net income of $2.5 million, or $0.06 per diluted share.
For the years ended May 31, 2026 and 2025, the figures were a net loss of $7.0 million, or $0.16 per diluted share, in 2026 and net income of $54.3 million, or $1.23 per diluted share, in 2025. FRMO stated that this is a non-GAAP measure, is supplemental, and is not a substitute for net income attributable to the Company or a measure of overall profitability.
#What was FRMO's book value and financial position at May 31, 2026?
FRMO reported total book value of $647.2 million as of May 31, 2026. Excluding non-controlling interests, equity attributable to shareholders was $331.0 million, or $7.52 per share. At May 31, 2025, total book value was $626.1 million and equity attributable to shareholders was $327.9 million, or $7.45 per share.
Current assets were $47.7 million as of May 31, 2026, compared with $46.3 million as of May 31, 2025. Total liabilities were $100.1 million and $99.8 million, respectively, and consisted primarily of deferred taxes and securities sold, not yet purchased.
#What investment and ownership interests did FRMO disclose?
As of May 31, 2026 and 2025, FRMO held a 21.78% and 21.82% equity interest in Horizon Kinetics Hard Assets LLC, respectively. The company owns 4.42% of Horizon Kinetics Holding Corporation and earns substantially all of its advisory fees from HKHC. FRMO identified Investment A in Note 4 of its Consolidated Financial Statements under Investment Concentration as the equity security investment primarily accounting for the quarterly net loss. The company also stated that several securities and digital assets might have changed substantially in market value since May 31, 2026.
#What does FRMO do and how many shares were outstanding?
FRMO describes itself as an intellectual capital firm that provides consulting and advisory services in the asset management sector and engages in the mining of digital assets. The company stated that it was looking for new ways to expand its digital assets mining operations. FRMO had 44,022,781 shares of common stock outstanding as of May 31, 2026.
#When and how will FRMO's 2026 Annual Meeting take place?
Peter Doyle and Steven Bregman, Co-CEOs, and David Arndt, CFO, will host the 2026 Annual Meeting of Shareholders on Thursday, September 10, 2026 at 2:30 pm Eastern Time. The meeting will be held at Vinson & Elkins, L.L.P., 1114 Avenue of the Americas, 32nd Floor, New York, NY 10036, and online.
Virtual attendees need a proxy card and unique 16-digit control number to vote and ask questions. In-person admission is limited to stockholders who owned common stock as of the close of business on July 14, 2026, the record date, or their duly appointed proxies, and one guest. Proof of ownership and valid government-issued photo identification are required. Questions may be submitted in advance by 11:59 P.M. Eastern Time on Sunday, September 6, 2026.
#What risks and uncertainties did FRMO identify?
FRMO stated that, apart from historical information, matters discussed in its release are forward-looking statements involving risks and uncertainties. It said expected or anticipated results or events may not take place and that actual future results could differ significantly. The factors identified include maintaining competitive advantages, the general economics of the financial industry, financing growth, identifying and closing acquisitions on terms favorable to the Company, and a sustainable market. FRMO also stated that valuation of securities and digital assets is subject to change after May 31, 2026.
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