Executive Summary

Q1 2026 revenue was $7.0M, down 11% YoY, but net loss improved to $0.4M ($0.01 per share) from $1.6M ($0.04 per share) on cost reductions and a $0.5M gain from the Brigadier sale .
Gross profit margin expanded sharply to 77.0% vs 73.1% in Q1 2025 on lower cost of revenue and reduced operating expenses; operating loss narrowed to $1.3M from $2.2M YoY .
Balance sheet strengthened: cash $4.9M, equity $22.9M, total assets $28.4M, and no debt after applying Brigadier sale proceeds to retire remaining obligations .
USCF Investments remained profitable; average AUM was ~$2.9B vs ~$3.1B in prior year’s Q1 amid energy-sector tariff-related volatility; non-financial units (Original Sprout, Gourmet Foods/Printstock NZ) were profitable with positive outlook .
No formal revenue/EPS guidance or earnings call transcript was available for Q1; management emphasized cost discipline, debt elimination, and U.K. fintech app development as forward drivers .

What Went Well and What Went Wrong

What Went Well

Significant cost actions: paused U.S. fintech app marketing, expected to save approximately $4M annualized; operating expenses declined YoY and operating loss narrowed .
Debt eliminated using Brigadier sale proceeds; CFO noted: “proceeds from the sale of Brigadier were applied to retire all of the Company’s remaining debt” .
Subsidiary performance: USCF profitable despite volatility; non-financial businesses (Original Sprout, Gourmet Foods/Printstock NZ) profitable with positive growth outlook .

What Went Wrong

Revenue declined 11.9% YoY to $7.0M, driven by lower fund management fees and loss of security systems revenue post-Brigadier sale .
USCF AUM down YoY ($2.9B vs $3.1B), pressured by tariffs/geopolitical uncertainty in energy, reducing fee revenue sensitivity .
Continued losses tied to funding the Marygold & Co. (U.K.) fintech build/marketing; management noted significant ongoing expenses during UK app development .

Financial Results

Metric	Q1 2025 (Sep 2024)	Q4 2025 (Jun 2025)	Q1 2026 (Sep 2025)
Revenue ($USD Millions)	$7.91	$7.20	$7.00
Net Income ($USD Millions)	$(1.59)	$(1.50)	$(0.36)
Diluted EPS ($USD)	$(0.04)	$(0.04)	$(0.01)
Gross Profit ($USD Millions)	$5.78	N/A	$5.36
Cost of Revenue ($USD Millions)	$2.13	N/A	$1.60
Operating Loss ($USD Millions)	$(2.17)	N/A	$(1.26)
Gross Margin (%)	73.1%	N/A	77.0%
EBIT Margin (%)	(27.4%)	N/A	(18.1%)
Net Income Margin (%)	(20.0%)	(20.8%)	(5.1%)

Notes: Margins are derived from reported figures (citations reflect the underlying financial statement sources).

Segment revenue breakdown:

Segment Revenue ($USD Millions)	Q1 2025 (Sep 2024)	Q3 2025 (Mar 2025)	Q1 2026 (Sep 2025)
Fund Management – Related Party	$4.59	$4.09	$4.33
Food Products	$1.82	$1.50	$1.76
Beauty Products	$0.60	$0.64	$0.67
Security Systems	$0.69	$0.57	$0.00
Financial Services	$0.21	$0.22	$0.21

Key balance sheet/kpi snapshot:

KPI	Q3 2025 (Mar 2025)	Q4 2025 (Jun 2025)	Q1 2026 (Sep 2025)
USCF Average AUM ($USD Billions)	$2.6	N/A	$2.9
Cash & Equivalents ($USD Millions)	$4.32	$5.01	$4.86
Total Assets ($USD Millions)	$33.47	$30.42	$28.44
Stockholders’ Equity ($USD Millions)	$24.28	$22.99	$22.91
Total Debt ($USD Millions)	$3.66 (notes payable current)	$1.27 (notes payable current)	$0.00 (no debt)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue/EPS guidance	FY2026/Q1 2026	None issued	None issued	Maintained
Marygold U.S. fintech app marketing	FY2026	Active U.S. marketing; substantial spend in prior periods	Paused U.S. marketing; ~$4M annualized expense savings	Lowered spend
Debt	Q1 2026	Notes payable outstanding ($3.52M at 12/31/24; $3.66M at 3/31/25)	No debt after Brigadier sale proceeds applied	Eliminated

No formal numeric guidance for revenue, margins, OpEx, OI&E, tax rate, or dividends was provided in Q1 2026 materials .

Earnings Call Themes & Trends

No Q1 2026 earnings call transcript was available in the document set [List: earnings-call-transcript returned 0].

Topic	Previous Mentions (Q2 & Q3 FY2025)	Current Period (Q1 2026)	Trend
Fintech/technology initiatives	U.K. app launch preparation; recognition by Forbes Advisor; ongoing spend; plan to reduce expenses later	Continued development/marketing in U.K.; U.S. marketing paused to save ~$4M annualized	Shift to U.K., cost discipline in U.S.
Tariffs/macro (energy)	AUM pressure from commodities volatility; YoY AUM down to $2.6B in Q3	USCF profitable; AUM ~$2.9B vs $3.1B prior-year Q1 amid tariff-related volatility	Modest improvement QoQ; YoY still lower
Product performance (Original Sprout)	Management noted improvement and channel repositioning; strong Q4 sequential growth (41% vs Q3)	Profitable in Q1; positive growth outlook for fiscal year	Improving trajectory
Regional trends (New Zealand printing)	Revenue up 13% in Q4 vs Q3; expected continued increase	New Zealand operations profitable; positive outlook	Positive continuation
Capital structure/debt	Increased debt during FY2025 to fund fintech; plan to reduce	Debt eliminated via Brigadier sale proceeds; balance sheet strong	Material improvement

Management Commentary

COO: “Proceeds from the sale of Brigadier were applied to retire all of the Company’s remaining debt… [U.K. fintech app] continues to develop and market… [U.S. app] paused… will save the Company approximately $4 million in annualized expenses” .
COO on USCF: “USCF… again experienced market volatility… related to tariffs within the energy sector. USCF was profitable for the quarter and had approximately $2.9 billion average assets under management (AUM) versus $3.1 billion in last year’s first quarter” .
CEO: “Actions taken… to reduce costs, eliminate debt, and the opportunistic sale of Brigadier are beginning to pay off… focus our growth… on financial services… innovative ETFs… investment advisory services… mobile fintech app in the U.K.” .

Q&A Highlights

No Q1 2026 earnings call/Q&A transcript was available; no analyst Q&A themes or clarifications could be assessed [List: earnings-call-transcript returned 0].

Estimates Context

Consensus estimates for Q1 2026 (revenue and EPS) were unavailable via S&P Global during retrieval. Reported revenue $7.0M and EPS $(0.01) cannot be compared to Street consensus for beat/miss assessment .
S&P Global disclaimer: Consensus values were not returned; values retrieved from S&P Global were unavailable.*

Metric	Reported	Consensus	Delta
Revenue ($USD Millions)	$7.00	N/A*	N/A
EPS ($USD)	$(0.01)	N/A*	N/A

Key Takeaways for Investors

Cost discipline is the core near-term driver: paused U.S. fintech marketing and lower operating expenses materially narrowed losses; watch trajectory of OpEx and margins in coming quarters .
Balance sheet de-risked: elimination of debt post-Brigadier sale reduces interest burden and financial risk, providing flexibility for U.K. fintech scaling and core financial services .
Revenue headwinds likely persist near term given AUM sensitivity to commodity markets and tariffs; monitor USCF AUM path and energy-market volatility as primary revenue swing factor .
Non-financial units are stabilizing and profitable, providing diversification; continued improvement at Original Sprout and New Zealand operations support cash generation .
With no formal guidance and no call transcript, the narrative hinges on execution in the U.K. fintech app and sustained profitability at USCF; any updates on UK app traction or AUM momentum could be stock catalysts .
YoY margin expansion is notable; further OpEx cuts or revenue stabilization could move Q2/Q3 toward breakeven—monitor operating loss vs gross profit progression .
Absent consensus estimates, traders should focus on tangible leading indicators (USCF AUM levels, U.K. app user growth/marketing spend cadence, segment profitability) for near-term positioning .

Citations:

Marygold Companies, Inc. (MGLD)·Q1 2026 Earnings Summary