U.S. Global Investors (GROW) Q2 2026 earnings summary

Executive summary

• Average assets under management reached $1.48–$1.5 billion in Q2 2026, with operating revenues of $2.5–$2.51 million and pre-tax income of $535,000, reversing a prior-year loss.

• Net income for the six months ended December 31, 2025, was $661,000, up from $229,000 year-over-year, driven by higher investment income and operating revenues, despite a significant tax adjustment.

• The company maintained strong liquidity, steady cash flow, and a robust balance sheet, continuing share buybacks and monthly dividends.

• Strategic focus remains on Smart Beta 2.0, thematic investing in gold, natural resources, airlines, luxury goods, and expanding exposure to the Bitcoin ecosystem.

Financial highlights

• Operating revenues for the quarter were $2.5–$2.51 million, up 13% year-over-year, with operating expenses down to $2.6 million.

• Net loss after taxes was $846,000 for the quarter, mainly due to a $1.3 million tax adjustment related to HIVE convertible securities, with an offsetting benefit expected next quarter.

• Net income for the six months ended December 31, 2025, was $661,000, with net investment income of $2.8 million.

• Cash and cash equivalents stood at $25.2 million, up 2.7% since June 2025.

• Shareholders' equity at December 31, 2025, was $44.2 million, down $1.0 million since June 2025 due to repurchases and dividends.

Outlook and guidance

• Expectation of a $1.3 million tax benefit in the next quarter to offset the current period's tax expense.

• Board-approved monthly dividend of $0.0075 per share, yielding 2.84% at a $3.17 share price, extended through March 2026.

• Continued focus on ETF product growth, stock buybacks, and thematic funds, with positive outlook for gold and sector growth.

• Management believes current cash reserves and investments are sufficient for foreseeable needs.