Executive Summary

Q1 FY26 returned to profitability: net income $1.51M ($0.12 EPS) on operating revenues $2.25M, up 15% sequentially and 4% year over year; improvement was driven by $2.36M in other income (primarily unrealized gains) as gold-related fund flows turned positive .
AUM averaged $1.4B vs $1.3B in the June quarter and $1.5B in the prior year; management highlighted strong gold pricing as a tailwind and positive flows into USERX, UNWPX, and GOAU .
Shareholder yield measured 8.32% as of Sept 30, supported by a $0.0075 monthly dividend through December and continued buybacks (159,074 shares, ~$0.4M in Q1) .
No explicit financial guidance was issued; strategic themes emphasized include gold allocation, AI/defense (WAR ETF), shipping (SEA), and measured Bitcoin/HIVE exposure—each positioned as potential stock narrative catalysts .

What Went Well and What Went Wrong

What Went Well

Investment income rebound: Other income rose to $2.36M from $0.99M YoY, flipping the quarter to profitability despite an operating loss; CFO attributed the change to higher net investment income from unrealized gains .
Positive fund flows in gold/natural resources: “I’m thrilled to see fund flows into our gold mining and natural resources funds turn positive,” said CEO Frank Holmes, citing secular support from record global debt and gold’s role as a hedge .
Liquidity and capital returns: Cash and equivalents remained strong at $24.6M, net working capital at ~$37.2M, and monthly dividends continued alongside buybacks (159,074 shares in Q1) .

What Went Wrong

Core operations still loss-making: Operating loss was $(0.52)M, reflecting expenses that outpaced fee revenues; EBIT margin remained negative .
ETF fee pressure and higher OpEx: CFO noted ETF fee declines and higher compensation/advertising (+$101K and +$52K respectively), partially offset by lower G&A (−$93K) .
AUM below prior year: Average AUM of $1.4B lagged $1.5B a year earlier, with management continuing to confront marketing/awareness challenges for new products .

Financial Results

Metric	Q1 2025 (Sep 2024)	Q3 2025 (Mar 2025)	Q4 2025 (Jun 2025)	Q1 2026 (Sep 2025)
Operating Revenues ($USD Millions)	$2.157	$2.103	$1.960*	$2.251
Net Income ($USD Millions)	$0.315	$(0.382)	N/A	$1.507
Diluted EPS ($USD)	$0.02	$(0.03)	N/A	$0.12
Operating Income (Loss) ($USD Millions)	$(0.559)	$(0.893)	N/A	$(0.515)
Net Income Margin %	14.6%	-18.2%	N/A	67.0%
EBIT Margin %	-25.9%	-42.5%	N/A	-22.9%
EBITDA ($USD Millions)	N/A	N/A	$(0.985)*	$(0.502)*
Avg. AUM ($USD Billions)	$1.5	$1.4	N/A	$1.4

Asterisk indicates values retrieved from S&P Global.

Segment breakdown: Not disclosed numerically; CFO indicated increases in equity mutual fund advisory/administrative fees offset by decreased ETF fees .

KPIs

KPI	Q1 2025	Q3 2025	Q4 2025	Q1 2026
Shareholder Yield (%)	N/A	10.5%	9.1%	8.32%
Cash & Equivalents ($USD Millions)	$27.3	$26.3	$24.6	$24.6
Net Working Capital ($USD Millions)	$38.2	N/A	$37.2	$37.2
Monthly Dividend ($/share)	$0.0075 (Oct–Dec 2024)	$0.0075 (Apr–Jun 2025)	$0.0075 (Jul–Sep 2025)	$0.0075 (Oct–Dec 2025)
Share Repurchases	197,887 shares in Q1	784,466 shares in 12 months ended Mar 31	801,043 shares in FY ended Jun 30	159,074 shares in Q1

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Monthly Dividend per share	Apr–Jun 2025	$0.0075	$0.0075 (Jul–Sep 2025)	Maintained
Monthly Dividend per share	Jul–Sep 2025	$0.0075	$0.0075 (Oct–Dec 2025)	Maintained
Share Repurchase Authorization	Annual	Up to $5M authorized	Up to $5M authorized (ongoing)	Maintained

No explicit revenue, margin, OpEx, OI&E, or tax rate guidance was provided in Q1 FY26 materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2: Q4 2025)	Previous Mentions (Q-1: Q3 2025)	Current Period (Q1 2026)	Trend
Gold/Precious Metals	Gold margins driving outperformance; 10% allocation recommended; BRICS de-dollarization tailwind	Gold at all-time highs; Basel III adoption viewed as supportive; investors under-allocated	Fund flows turned positive; gold miners cited as top BofA theme; underinvestment persists	Improving flows
Tariffs/Macro	FY25 turbulence; tariff uncertainty weighed on markets	High-tariff policies rattled markets; sequential weakness in operations	CEO sees worst potentially behind; stability improving in gold-related assets	Stabilizing
AI/Defense (WAR ETF)	Record defense spend; NATO target; WAR positioned for multi-decade theme	WAR performed well YTD; conflicts driving spend	Continued focus on AI-enabled defense; WAR cited as strategic exposure	Sustained tailwind
Bitcoin/HIVE	N/A in FY release	Strategy to maintain Bitcoin exposure monthly; accumulate HIVE shares as notes mature	Remaining HIVE convertible balance ~$842K; redeploying coupon income	Ongoing
Shipping/Global Trade (SEA)	SEA listed in Mexico; 80% of goods by sea; supply chain exposure	TRIP shift to active; travel secular growth; complements JETS	SEA rebounding with shipping rates; strong dividends expected	Rebounding
Airlines/JETS	Mixed FY narrative amid shutdown sentiment; robust in Europe/Asia	Seasonality supportive; industry sentiment challenged by shorts	U.S. sentiment pressured by TSA/shutdown; management expects recovery post-issue	Mixed/awaiting catalyst
Shareholder Yield/Buybacks	801,043 shares repurchased FY; monthly dividend authorized	12% YoY increase in buybacks; monthly dividend authorized	Algorithmic buybacks on down days; shareholder yield 8.32%	Ongoing discipline

Management Commentary

“I’m thrilled to see fund flows into our gold mining and natural resources funds turn positive… investors remain deeply underinvested in the gold and gold mining industries… I have recommended investors maintain a 10% weighting in gold” — Frank Holmes, CEO/CIO .
“Current share repurchase program… we purchased 159,074 Class A shares using approximately $400,000… as the stock rallied through the quarter, we ended up buying less stock” — Frank Holmes .
“Operating revenues were $2.3 million… increase due to advisory and administrative fees for equity mutual funds… offset by a decrease in ETF fees… operating loss $515,000… other income $2.4 million primarily due to unrealized gains” — Lisa Callicotte, CFO .
Liquidity emphasis: cash and equivalents ~$24.6M; net operating working capital ~$37.2M; current ratio ~20.5:1 .

Q&A Highlights

The webcast format did not include a live analyst Q&A; management invited questions via email ([email protected]) for follow-up .
No additional guidance clarifications beyond prepared remarks were provided .

Estimates Context

S&P Global consensus for EPS, revenue, target price, and estimate counts were unavailable for GROW this quarter; therefore, no beat/miss vs consensus can be determined. Actual revenue recorded: Q1 FY26 $2.251M; Q4 FY25 $1.960M*; EBITDA actual: Q1 FY26 $(0.502)M; Q4 FY25 $(0.985)M*. Values retrieved from S&P Global.

Where estimates may need to adjust: Given the magnitude of other income and non-operating gains driving profitability, any forward estimates should incorporate volatility in investment income rather than extrapolating operating trends alone .

Key Takeaways for Investors

Profitability rebound was driven by investment income in a quarter with still-negative EBIT; operational leverage remains constrained, but gold-driven flows and unrealized gains can swing results near-term .
Positive fund flows into gold/natural resources funds amid record gold prices and underinvestment can be a multi-quarter narrative catalyst; monitor USERX/UNWPX/GOAU flows and gold prices as primary drivers .
Shareholder returns remain a focus (monthly dividends, algorithmic buybacks), supporting the 8.32% shareholder yield; capital allocation discipline persists .
ETF fee pressure and higher marketing/compensation costs weigh on operating results; watch expense trajectory and ETF fee recovery to assess path to positive EBIT .
Strategic exposures (WAR, SEA, measured Bitcoin/HIVE) position the company across AI/defense and global trade cycles—narrative positives, but require continued marketing/awareness to translate into AUM growth .
With consensus estimates unavailable, trading setups will hinge on flows, gold price momentum, and realized investment gains; expect elevated earnings variability tied to market marks rather than core fees .
Near-term: stock narrative likely responds to gold price moves and evidence of sustained positive fund flows; medium-term: watch AUM growth, fee mix, and operating expense control for durable EBIT improvement .

Additional relevant press releases this quarter: webcast announcement (Nov 6) ; community partnership with Keystone School (Oct 28) ; industry AI engagement via Boosted.ai voice agents featuring US Global participation (Oct 27) .

U S GLOBAL INVESTORS INC (GROW)·Q1 2026 Earnings Summary