FRMO (OTCPK:FRMO) Q3 EPS Surge To US$1,893 Tests Volatile Earnings Narratives

FRMO (OTCPK:FRMO) has just posted an unusual Q3 2026 print, with total revenue of about US$0.9 million sitting alongside net income of roughly US$83.4 million and basic EPS of about US$1,893.40, which reflects the impact of prior period swings in performance flowing through the current share count. The company has seen quarterly revenue move from US$354.9 million and EPS of US$3.11 in Q2 2025 to US$78.8 million and EPS of US$0.65 in Q3 2025, then to US$0.9 million and EPS of US$1,893.40 in Q3 2026. Investors are therefore dealing with highly volatile top line and per share outcomes that put the focus squarely on how sustainable current margins really are.

See our full analysis for FRMO.

With the latest numbers on the table, the next step is to set these results against the prevailing stories around FRMO to see which narratives match the margin profile and which are challenged by the recent earnings pattern.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Shift From 37.8% To 16.4%

• Net profit margin over the last 12 months was 16.4%, compared with 37.8% the prior year, and that period also included a one off loss of US$155.9 million that weighed on reported profitability.
• What stands out for the bearish view is how the 16.4% margin and that US$155.9 million one off loss sit alongside five year average earnings growth of 15.9% per year. This creates tension between:
  • Bears who focus on the lower margin level versus the prior 37.8% outcome and argue that recent profitability looks weaker on a trailing basis.
  • Supporters who point to the 15.9% annual earnings growth figure and treat the one off hit as a special item that does not reflect the longer run trend.

Investors who are weighing this margin reset against the longer term earnings track record may want to understand how skeptics frame the downside case in more detail before deciding what it means for FRMO’s story. 🐻 FRMO Bear Case

TTM EPS At US$0.98 With Volatile Quarters

• On a trailing 12 month basis, FRMO reported basic EPS of US$0.98, which is built from very different quarterly figures that range from US$1,893.40 in Q3 2026 back to losses of US$0.80 per share in Q4 2025 and smaller losses in Q1 and Q2 2026.
• Supporters often talk about FRMO as a niche research and advisory platform whose value is tied to intellectual capital, and this earnings pattern tests that idea in a few ways:
  • Critics highlight that such large swings in quarterly EPS, from triple digit gains to modest losses, make it harder to link the business narrative to a smooth financial profile.
  • Others focus on the full trailing EPS of US$0.98 alongside the 16.4% margin, viewing the longer period as more relevant than any one extreme quarter when thinking about how the business converts its research work into profit.

P/E Of 7.2x Versus 38.4x Peers

• The trailing P/E ratio is 7.2x compared with a peer average of 38.4x and a US Capital Markets industry average of 41.5x, while the current share price of about US$7.04 sits well below a DCF fair value estimate of roughly US$15.74.
• Supportive investors often frame FRMO as a specialist firm that can be overlooked, and the current valuation gap shapes that argument in a concrete way:
  • One side points to the 7.2x P/E and the gap to the DCF fair value of about US$15.74 as evidence that the market is pricing in the weaker 16.4% margin and the one off US$155.9 million loss quite heavily.
  • Others focus on the five year earnings growth rate of 15.9% per year and argue that, if that kind of growth profile is the reference point, a P/E of 7.2x and price of US$7.04 look low compared with both peers and the DCF fair value estimate.

If you want to see how other investors connect these valuation gaps to different storylines about FRMO’s future, it is worth reviewing the broader community views in one place. 📊 Read the what the Community is saying about FRMO.

Next Steps

Don’t just look at this quarter; the real story is in the long-term trend. We’ve done an in-depth analysis on FRMO’s growth and its valuation to see if today’s price is a bargain. Add the company to your watchlist or portfolio now so you don’t miss the next big move.

With sentiment split between the volatile earnings profile and the valuation gap, now is a good time to review the data yourself and weigh both the bullish and bearish angles against your own risk tolerance, starting with the 1 key reward and 2 important warning signs

See What Else Is Out There

FRMO’s sharp margin reset, one off US$155.9 million loss, and extremely volatile EPS pattern highlight uncertainty around how consistently it can turn revenue into profit.

If that earnings volatility makes you cautious, it is worth balancing your portfolio with companies that score well in the 71 resilient stocks with low risk scores and could offer a steadier ride.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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