Sprott (SII) Q2 2026 earnings summary

Executive summary

• AUM at June 30, 2026, was $55.6B, down 15% sequentially and 7% from year-end, mainly due to a correction in gold and silver prices, but average AUM for the quarter was $63.9B, up 70% year-over-year, reflecting business model resilience.

• Critical materials strategies and ETFs delivered positive net sales and net inflows, offsetting some outflows from precious metals products, and recent ETF launches achieved AUM and liquidity targets faster than previous launches.

• Geopolitical and trade disruptions are strengthening the investment case for precious metals and critical materials, with investor interest broadening from specialists to generalists.

• Investments continue in sales, marketing, and technology to support growth and productivity.

Financial highlights

• Net income for Q2 2026 was $34.3M ($1.33/share), up 154% year-over-year; for the first six months, $63.5M, up 149%.

• Adjusted EBITDA for Q2 2026 was $50.8M ($1.97/share), up 99% year-over-year; for the first six months, $108.7M, up 129%.

• Total revenues for Q2 2026 were $80.2M, up from $65.2M in Q2 2025; management fees for the quarter were $76.4M, up 72% year-over-year.

• Net compensation expense was $22.7M, up 27% year-over-year; net compensation ratio improved to 32% from 43%.

• Stock-based compensation expense fell 73% to $5M due to a 21% stock price decline in the quarter.

Outlook and guidance

• Management expects the pullback in precious metals to be short-lived, with potential catalysts for a rebound including policy shifts and renewed gold purchases.

• Remains constructive on critical materials due to energy security trends, supply constraints, and ongoing investor interest driven by electrification, AI, and energy security.

• Ongoing expansion of exchange-listed product offerings and new lending fund fundraising.

• The company expects commodity prices, especially for critical materials, to have more room to grow as higher incentive pricing is needed to reshore and expand capacity in the West.

• Despite short-term volatility, the structural elements of the precious metals bull market are seen as intact.