GROW — U.S. Global Investors, Inc.

Summary of U.S. Global Investors Earnings Call (Q4 2025)

1. Key Financial Results and Metrics:

• Average Assets Under Management (AUM): $1.4 billion for FY 2025.
• Operating Revenues: $8.5 million, down 23% from $11 million in FY 2024.
• Net Loss: $334,000 or $0.03 per share, compared to a net income of $1.3 million or $0.09 per share in FY 2024.
• Operating Expenses: $11.4 million, relatively flat year-over-year.
• Operating Loss: $3 million for the year.
• Other Income: Increased to $2.7 million from $2.4 million in the prior year, attributed to higher investment income.

2. Strategic Updates and Business Highlights:

• U.S. Global Investors focuses on thematic investing, particularly in gold, precious metals, natural resources, airlines, and luxury goods through a "quantamental" strategy.
• The company is actively buying back stock on flat and down days to enhance shareholder value and has a strong cash position with a net working capital of $37.2 million.
• The firm is expanding its global reach, with ETFs like JETS and GOAU now listed on the Mexican Stock Exchange and gaining traction in Colombia, Peru, and Chile.
• The launch of the "War ETF" reflects a strategic focus on defense spending and military-related investments, which are expected to grow due to geopolitical tensions.

3. Forward Guidance and Outlook:

• Management remains optimistic about the potential for a rapid turnaround in fund flows, particularly in the airline and gold sectors, despite current apathy.
• The company aims to continue its monthly dividend payments and stock buybacks, indicating confidence in long-term growth.
• The macroeconomic environment, including rising gold prices and increased military spending, is expected to create favorable conditions for the company’s thematic products.

4. Bad News, Challenges, or Points of Concern:

• The significant decline in revenues and net income year-over-year raises concerns about the company’s ability to maintain profitability amid declining AUM, particularly in the JETS ETF.
• The overall market sentiment remains cautious, with redemptions in other gold ETFs indicating potential headwinds for GROW’s products.
• The company faces competitive pressures from larger ETFs and market volatility, which may impact investor confidence and fund flows.

5. Notable Q&A Insights:

• During the Q&A, management emphasized the importance of maintaining a long-term perspective in investing, despite short-term market fluctuations.
• Questions regarding the impact of geopolitical tensions on investment strategies were addressed, with management highlighting the potential for increased demand for gold and defense-related investments.
• Concerns about the ETF market's growth outpacing the number of public companies were acknowledged, with management advocating for more IPOs to enhance market liquidity.

Overall, U.S. Global Investors is navigating a challenging financial landscape with strategic initiatives aimed at long-term growth, despite facing significant revenue declines and market headwinds.