Executive Summary

Fiscal Q4 2025 reporting centered on full-year results: FY2025 operating revenues were $8.452M, with a net loss of $0.334M ($0.03 per share) as average AUM fell to $1.4B; management cited tariff-driven market volatility and AUM declines (especially JETS) as primary drivers .
Liquidity remained strong with ~$24.6M cash and ~~$37.2M net working capital; Board authorized monthly dividend of $0.0075/share for Jul–Sep 2025 and executed 801,043 share repurchases (~~$2M) during FY2025 .
Strategic progress: SEA listed in Mexico and GOAU listed in Colombia; AI/Defense WAR ETF positioned against record defense spending and NATO’s long-term target increases .
Near-term catalyst: subsequent quarter (Q1 FY2026) returned to profitability (net income $1.507M; EPS $0.12), with operating revenues up sequentially; gold inflows supported fund flows into USERX/GOAU, offering potential momentum into year-end .

What Went Well and What Went Wrong

What Went Well
- Strong balance sheet and liquidity: net working capital ~$37.2M and cash ~$24.6M at FY-end; monthly dividend continued .
- Strategic expansion: SEA listed on BMV (Mexico) and GOAU listed in Colombia; WAR positioned for AI/cyber/defense super-cycle (“WAR was built for this moment…”) .
- Management conviction and support: 801,043 shares repurchased (~$2M) and ongoing monthly dividend program; Holmes emphasized quantamental Smart Beta 2.0 and disciplined buybacks on “flat/down days” .
What Went Wrong
- Top-line pressure: FY2025 operating revenues declined 23% YoY to $8.452M; operating loss widened to $(2.986)M .
- AUM headwinds: average AUM fell to $1.4B (from $1.9B), with CFO attributing the revenue decline primarily to lower AUM, “especially in our JETS ETF” .
- Macro/tariff volatility: management repeatedly cited tariff uncertainty as a key challenge; quarterly EPS/earnings impacted by tariff war; investor apathy toward airlines and gold persisted despite improving fundamentals .

Financial Results

FY performance (full-year release aligned with Q4 FY2025 quarter):

Metric	FY 2024	FY 2025
Operating Revenues ($USD Millions)	$10.984	$8.452
Operating Expenses ($USD Millions)	$11.464	$11.438
Operating Income (Loss) ($USD Millions)	$(0.480)	$(2.986)
Total Other Income ($USD Millions)	$2.395	$2.724
Income (Loss) Before Income Taxes ($USD Millions)	$1.915	$(0.262)
Income Tax Expense ($USD Millions)	$0.582	$0.072
Net Income (Loss) ($USD Millions)	$1.333	$(0.334)
Net Income (Loss) Per Share ($USD)	$0.09	$(0.03)
Avg. Common Shares Outstanding (Basic)	14,182,300	13,343,506
Avg. AUM ($USD Billions)	$1.9	$1.4

Quarterly trend (prior two quarters and the subsequent quarter for context; Q4 FY2025 quarterly detail was not broken out in filings/call):

Metric	Q2 FY2025 (Dec 31, 2024)	Q3 FY2025 (Mar 31, 2025)	Q1 FY2026 (Sep 30, 2025)
Operating Revenues ($USD Millions)	$2.231	$2.103	$2.251
Operating Expenses ($USD Millions)	$2.770	$2.996	$2.766
Operating Income (Loss) ($USD Millions)	$(0.539)	$(0.893)	$(0.515)
Total Other Income (Loss) ($USD Millions)	$0.423	$0.648	$2.359
Income (Loss) Before Income Taxes ($USD Millions)	$(0.116)	$(0.245)	$1.844
Income Tax Expense (Benefit) ($USD Millions)	$(0.030)	$0.137	$0.337
Net Income (Loss) ($USD Millions)	$(0.086)	$(0.382)	$1.507
EPS ($USD)	$(0.01)	$(0.03)	$0.12
Avg. AUM ($USD Billions)	$1.5	$1.4	$1.4

Segment/earnings mix (company’s two buckets, per CFO remarks and FY data):

Metric	FY 2024	FY 2025
Operating Revenues ($USD Millions)	$10.984	$8.452
Total Other Income ($USD Millions)	$2.395	$2.724
CFO framing: operational vs “other” (investments)	Operational earnings (advisory services); other driven by realized/unrealized gains/losses—both fluctuate with markets	Operational earnings (advisory services); other driven by realized/unrealized gains/losses—both fluctuate with markets

KPIs and balance sheet highlights:

KPI	FY End (Jun 30, 2025)	Subsequent Quarter (Sep 30, 2025)
Total AUM at period-end ($USD Billions)	$1.3	$— (not disclosed)
Avg. AUM ($USD Billions)	$1.4	$1.4
Net Working Capital ($USD Millions)	~$37.2	~$37.2
Cash & Cash Equivalents ($USD Millions)	~$24.6	~$24.6
Shareholder Yield	9.1%	8.32%
Share Repurchases (shares; $USD Approx.)	801,043; ~$2.0M	159,074; ~$0.4M
Monthly Dividend ($/share)	$0.0075 (Jul–Sep 2025)	$0.0075 (Oct–Dec 2025)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Monthly Dividend per Share	Q4 FY2025 (Jul–Sep 2025)	$0.0075/month approved for Apr–Jun 2025	$0.0075/month approved for Jul–Sep 2025	Maintained
Share Repurchase Program	Ongoing (annual authorization)	Up to $5M per calendar year (renewed annually)	Up to $5M per calendar year (renewed annually)	Maintained
Earnings Webcast	Q4 FY2025	May 9 webcast (Q3 results)	Sep 9 webcast (FY2025/Q4 context)	Scheduled update

No formal revenue, margin, OpEx, OI&E, or tax rate guidance was issued in Q4 FY2025 materials .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 FY2025)	Trend
AI/technology initiatives (WAR ETF)	WAR launched Dec 2024; AI/data center spend highlighted; EU defense spend context	“Record Defense Spending Constructive for AI WAR ETF”; WAR built for this moment (AI, semis, cybersecurity, aerospace)	Increasing emphasis on AI-driven defense exposure
Tariffs/macro volatility	Tariff fears; gold as hedge; Dec quarter losses noted	Holmes/CFO cite tariff war and volatility impacting quarterly EPS and revenue; shipping rates rebounded despite tariffs	Persistent headwind, some operational normalization
Gold/product performance	Gold demand at all-time high; GOAU positive performance	Gold at/all-time highs; gold stocks “ripping”; GOAU flows comparatively resilient	Strengthening tailwinds; central bank buying backdrop
Bitcoin ecosystem	Company increasing investment in Bitcoin; HIVE strategy outlined	“Increase our exposure to the Bitcoin ecosystem”; redeploying debenture repayments into crypto ecosystem	Expansion of digital asset exposure
International listings/distribution	TRIP moved to active management; travel secular growth	SEA listed on BMV; GOAU listed in Colombia; expanding LatAm access	Broadening geographic reach
Shareholder capital returns	Continued dividends; higher buyback activity YoY	801k shares repurchased (~$1.9–$2.0M), monthly dividends maintained; shareholder yield ~9%	Maintained/steady capital return

Management Commentary

“Markets in fiscal 2025 were among the most difficult to navigate… Yet amid the turbulence, we also witnessed a remarkable rebound in U.S. equities… At U.S. Global, we remain committed to helping investors navigate the volatility with disciplined strategies in specialized sectors” — Frank Holmes .
“WAR was built for this moment, blending our quantamental Smart Beta 2.0 approach with active management to give investors access to companies driving the future of defense and security” — Frank Holmes .
“Our operating revenues were $8.5 million… a decrease of 23%… The decrease is primarily due to a decrease in assets under management, especially in our JETS ETF” — CFO Lisa Callicotte .
“We strategically buy back the stock using an algorithm on flattened down days… preserve cash for future growth… Increase our exposure to the Bitcoin ecosystem” — Frank Holmes .
“The company pays a monthly dividend… Shareholder yield is 9%” — Frank Holmes .

Q&A Highlights

Format: Webcast featured prepared remarks (CEO, CFO, Marketing) and invited audience questions via email; no live sell-side Q&A captured in transcript .
Clarifications: CFO linked revenue decline to AUM pressure (notably JETS), while other income rose on investment income and lower realized/unrealized losses YoY .
Strategy emphasis: Management reiterated Smart Beta 2.0, buybacks/dividends discipline, Bitcoin ecosystem exposure, and WAR positioning for AI/defense super-cycle .

Estimates Context

S&P Global consensus: No published EPS or revenue consensus for Q4 FY2025 or Q1 FY2026 was available; S&P Global returned no consensus values for GROW’s quarterly EPS/revenue and target price at this time (Values retrieved from S&P Global).*
Implication: With limited/absent coverage, estimate-based beat/miss analysis is not practicable; investors should focus on AUM trajectory, revenue mix, and other income variability tied to market performance .

Key Takeaways for Investors

Balance sheet strength and ongoing capital returns (buybacks/dividends) create downside support while AUM-driven revenue remains the key swing factor .
Gold strength and defense/AI themes provide secular tailwinds for GOAU/WAR; management highlighted improving gold flows and WAR’s positioning amid record defense spending .
Airlines/travel exposure via JETS/TRIP intersects with tariff/macro sensitivity; management sees operational AI/pricing power in airlines but acknowledges recent apathy in flows .
Near-term trading: Watch monthly AUM updates and fund flows across JETS/GOAU/SEA—inflections tend to correlate with revenue and stock interest .
Medium-term thesis: Quantamental Smart Beta 2.0 platform with expanding international distribution (Mexico/Colombia) and active strategies (WAR/TRIP) positions GROW for diversified fee streams .
Other income variability can materially affect quarterly results; expect earnings sensitivity to investment income and market swings, especially in volatile macro regimes .
With consensus estimates scarce, monitor management execution milestones (product listings, buybacks/dividends continuity) and macro catalysts (gold, defense spend, tariffs) for narrative shifts .

Notes:
*Values retrieved from S&P Global.

U S GLOBAL INVESTORS INC (GROW)·Q4 2025 Earnings Summary