U.S. Global Investors (GROW) investor relations material

Executive summary

• Fiscal year 2025 saw a net loss of $334,000 ($0.03 per share) on $8.5 million in operating revenues, compared to net income in the prior year, with average AUM of $1.4 billion and period-end AUM of $1.3 billion.

• Operating revenues declined 23% year-over-year, primarily due to lower assets under management, especially in the JETS ETF.

• The company maintains a strong balance sheet with $24.6 million in cash and equivalents, net working capital of $37.2 million, and a current ratio of 20.9 to 1.

• Strategic focus remains on Smart Beta 2.0, thematic ETFs, expanding exposure to the Bitcoin ecosystem, and international ETF listings in Mexico and Colombia.

• Ongoing shareholder value initiatives include monthly dividends, active share repurchases, and a shareholder yield of 9.1%.

Financial highlights

• Operating revenues for FY2025 were $8.5 million, down $2.5 million from the prior year.

• Operating expenses for the year were $11.4 million, flat year-over-year.

• Operating loss for the year was $2.99 million; other income rose to $2.72 million.

• Net loss after taxes was $334,000, a $1.7 million unfavorable swing from the prior year’s $1.3 million net income.

• Net working capital stood at $37.2 million; cash and equivalents totaled $24.6 million.

Outlook and guidance

• Management remains bullish on long-term secular bull markets for thematic asset classes and is committed to disciplined strategies in specialized sectors.

• Recommends a 10% portfolio allocation to gold, split between physical and mining equities.

• Expects rapid fund flow reversals and positive momentum in gold and airline sectors as market sentiment shifts.

• Cites global defense spending and supply chain infrastructure as key investment themes.

• Continued focus on buying back stock and paying monthly dividends.