Name: U S GLOBAL INVESTORS INC Q2 2025 Earnings Call
Start: 2025-02-13T13:31:00.000Z

Executive Summary

Operating revenues were $2.231M with a net loss of $86K ($0.01) for Q2 FY2025 (quarter ended Dec 31, 2024), reflecting lower AUM and weaker other income versus the prior year .
Average AUM declined to $1.5B (from $1.9B YoY), with operating expenses up 5% and operating loss at $539K; management emphasized balance sheet strength and ongoing buybacks/dividends .
Strategic launch of WAR (Technology and Aerospace & Defense ETF) and strong gold demand themes were highlighted; management reiterated focus on Smart Beta 2.0, capital returns, and marketing reach .
Wall Street consensus estimates from S&P Global were unavailable at time of writing; no formal revenue/EPS guidance was issued, limiting beat/miss context for this quarter [functions.GetEstimates error; S&P Global data unavailable].

What Went Well and What Went Wrong

WAR launch: “WAR is all about defense, protection and security,” positioning for secular growth in AI-enabled defense, semis, cybersecurity, and data centers .
Gold demand: WGC reported record 2024 gold demand and new highs; management sees continued investor interest and cited GOAU performance momentum .
Capital returns: Continued monthly dividends ($0.0075/share through March) and buybacks underscore shareholder yield discipline; net working capital ~$38.0M and cash ~$26.0M .

Revenue pressure: Total revenues fell 21% YoY to $2.2M, primarily due to lower AUM, especially in JETS; operating expenses rose 5%, lifting operating loss to $539K .
Other income volatility: Other income decreased $1.1M YoY, with unrealized losses and FX losses versus gains in the prior year .
AUM decline: Average AUM fell to $1.5B (vs $1.9B YoY), compressing advisory fee base and contributing to the net loss .

Metric (USD, except per share; AUM in $B)	Q2 2024 (YoY comp)	Q1 2025 (Prior qtr)	Q2 2025 (Current)
Operating Revenues ($ Thousands)	$2,818	$2,157	$2,231
Operating Expenses ($ Thousands)	$2,626	$2,716	$2,770
Operating Income (Loss) ($ Thousands)	$192	($559)	($539)
Total Other Income (Loss) ($ Thousands)	$1,473	$995	$423
Income (Loss) Before Taxes ($ Thousands)	$1,665	$436	($116)
Income Tax Expense (Benefit) ($ Thousands)	$436	$121	($30)
Net Income (Loss) ($ Thousands)	$1,229	$315	($86)
Diluted EPS ($)	$0.09	$0.02	($0.01)
Avg. AUM ($ Billions)	$1.9	$1.5	$1.5

Margins	Q2 2024	Q1 2025	Q2 2025
Operating Margin % (Operating Income / Revenues)	6.8%	(25.9%)	(24.1%)
Net Income Margin % (Net Income / Revenues)	43.6%	14.6%	(3.9%)

KPIs	Q2 2024	Q1 2025	Q2 2025
Avg. Basic Shares Outstanding	14,291,328	13,714,517	13,497,961
Cash & Cash Equivalents ($ Millions)	N/A	$27.3	~$26.0
Net Working Capital ($ Millions)	N/A	~$38.2	~$38.0
Quarterly Shares Repurchased (Class A)	N/A	197,887	236,731

Note: Operating and net margins are calculated from cited revenues and income metrics; underlying figures are cited in each cell .

Metric	Period	Previous Guidance	Current Guidance	Change
Monthly Dividend ($/share)	Jan–Mar 2025	$0.0075/month through Dec 2024	$0.0075/month through Mar 2025	Maintained/Extended
Share Repurchase Authorization	Through Dec 31, 2024	Up to $5M repurchase authorization (update announced Sept)	No new update disclosed for Q2 FY2025; ongoing buybacks highlighted	Maintained program
Revenue/EPS/OpEx Guidance	Q2 FY2025 onward	None disclosed	None disclosed	N/A

Topic	Previous Mentions (Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Shareholder Yield & Buybacks	Updated buyback up to $5M; monthly dividend maintained; net working capital ~$38.2M; cash $27.3M	Shareholder yield ~10%; continued buybacks; net working capital ~$38.0M; cash ~$26.0M	Stable to positive on capital returns
AUM & Revenue Pressure	Average AUM $1.5B; revenue $2.157M; profitability aided by other income	Average AUM $1.5B; revenue $2.231M; operating loss driven by AUM decline (esp. JETS) and higher OpEx	Persistent headwind
AI/Defense and WAR ETF	N/A	WAR launched; focus on AI/data centers, semis, cybersecurity, aerospace & defense; secular spend tailwinds	New strategic initiative
Gold & GOAU	N/A	WGC record demand; gold at ATHs; positive commentary on GOAU traction	Positive macro tailwind
Airlines/JETS	Seasonality and airline fundamentals; industry webcast for RIAs	JETS outperformance vs benchmarks highlighted; airline bookings strong; oil correlation noted	Improving sentiment narrative
Marketing/Distribution	Marketing recognition; content strategy; webcast planned	Ongoing YouTube/TikTok content; social reach emphasized	Ongoing engagement

“WAR is all about defense, protection and security… AI and data centers are as crucial… as mechanization was at the turn of the last century.” — Frank Holmes, CEO/CIO .
“We’re very happy with how well our U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE: GOAU) performed… With tariff concerns persisting… we have high hopes that GOAU will continue to spark interest.” — Frank Holmes .
“The Board’s approval of continued monthly dividends, combined with our increased share buybacks, underscores our confidence in the Company’s long-term growth and financial strength.” — Frank Holmes .
“Total revenues were $2.2 million… a decrease of $587,000, or 21%… primarily due to a decrease in assets under management, especially in our JETS ETF.” — Lisa Callicotte, CFO .
“Other income decreased $1.1 million… mainly due to unrealized losses… and realized foreign currency losses…” — Lisa Callicotte, CFO .

The webcast did not include a live Q&A; management invited questions via email and emphasized ongoing investor education content and social media engagement .

S&P Global consensus estimates for Q2 FY2025 (EPS and revenue) were unavailable via our tool at the time of writing; therefore, an estimates comparison and beat/miss assessment cannot be provided. Values would normally be retrieved from S&P Global.

Revenue stabilized sequentially (+3% vs Q1) but remains down YoY; operating loss persists with lower AUM and higher OpEx—watch flows into JETS and GOAU, and WAR’s early traction for a revenue base recovery .
Balance sheet resilience (net working capital ~$38M; cash ~$26M) supports continued buybacks/dividends, underpinning shareholder yield during AUM softness .
WAR launch adds an AI/defense theme with secular spend tailwinds; product success could diversify revenue away from travel cyclicality and support margin mix longer term .
Gold demand backdrop remains constructive; sustained central bank buying and currency debasement narratives support GOAU positioning and potential fee stability .
Other income volatility (unrealized and FX) materially impacted YoY results; investors should expect income swings from market marks alongside advisory revenues .
No formal guidance or consensus estimates available this quarter; near-term stock narrative likely tied to fund flows and macro drivers (oil for airlines, gold for GOAU, defense/AI for WAR) .
Execution focus: investor engagement and distribution expansion (social/video content, Latin America listings) to drive flows and rebuild AUM over the medium term .