Financial Data and Key Metrics Changes - Quarterly average assets under management were $1.4 billion, operating revenues were $2.25 million, and net income was $1.5 million, showing a significant increase from the previous year [28][31] - Operating revenues increased by $94,000 or 4% from the same quarter last year, primarily due to increases in advisory and administrative fees for equity mutual funds [29] - Net income after taxes for the quarter increased by $1.2 million compared to the same quarter last fiscal year [31] Business Line Data and Key Metrics Changes - Operating expenses increased by $50,000 or 2%, mainly due to a $101,000 increase in employee compensation and a $52,000 increase in advertising expenses [30] - Other income for the quarter was $2.4 million compared to $995,000 in the prior year, primarily due to higher net investment income [30] Market Data and Key Metrics Changes - The company has experienced a rebound in assets and investment income, which has helped turn the corner after being impacted by the tariff war [13] - Gold reached an all-time high of $4,300, although it has gone through a correction since October [19] Company Strategy and Development Direction - The company is focused on creating thematic products using Smart Beta 2.0 strategy, which requires rigorous backtesting and continuous management [7][8] - U.S. Global has been buying back stock using an algorithm on flat and down days, aiming to enhance shareholder value through dividends and stock repurchases [9][10] Management's Comments on Operating Environment and Future Outlook - Management believes the worst impacts from the election and tariff battles are behind them as they move forward [11] - The company remains optimistic about the travel industry, particularly in Europe and Asia, despite challenges in the U.S. market [16][17] Other Important Information - The company has maintained a strong balance sheet with high levels of cash and investments, including approximately $24.6 million in cash and cash equivalents [32] - The current yield at the share price of $2.60 is 3.46%, and the company has paid a monthly dividend since June 2007 [10] Q&A Session Summary Question: What is the company's outlook on gold investments? - Management highlighted that gold has outperformed the S&P 500 and is considered a crucial diversifier for a diversified portfolio, with recommendations to allocate 10%-15% in gold [20][23] Question: How is the company addressing the challenges in the airline industry? - Management noted that while the U.S. airline industry is facing sentiment challenges, the European and Asian markets are booming, indicating potential for recovery [16][17] Question: What are the company's plans for future product launches? - The company is focused on launching new thematic products, particularly in AI and defense sectors, which are expected to capture significant market interest [18][26]

Financial Data and Key Metrics Changes - The company reported average assets under management of $1.4 billion and operating revenues of $2.25 million for the quarter, with net income of $1.5 million, an increase from $315,000 in the same quarter last year [28][30] - Operating revenues increased by $94,000 or 4% from the previous year, primarily due to higher advisory and administrative fees for equity mutual funds [29] - The company has maintained a strong balance sheet with cash and cash equivalents of approximately $24.6 million, reflecting a slight increase since June 2025 [30] Business Line Data and Key Metrics Changes - The company has seen a rebound in investment income, which has improved due to unrealized gains on investments [30] - The operational earnings consist of advisory fees, while other earnings include realized and unrealized gains and losses on investments [28] Market Data and Key Metrics Changes - The gold market has shown significant volatility, with gold reaching an all-time high of $4,300 before undergoing a correction [20][19] - The company noted that gold has outperformed the S&P 500, doubling its performance this century, which has led to increased interest in gold investments [20][21] Company Strategy and Development Direction - The company is focused on creating thematic products using a smart beta 2.0 strategy, which involves rigorous backtesting and active money management [7][14] - A two-pillar strategy is in place to enhance shareholder value through dividends and stock buybacks, with a current yield of 3.46% [10][9] - The company is actively buying back stock when prices are flat or down, indicating a belief that the stock is undervalued [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that the worst impacts of the tariff wars may be behind them, with a rebound in assets and investment income [11][13] - The company highlighted the importance of gold as a diversifier in investment portfolios, especially in light of rising global debt levels [21][22] Other Important Information - The company has been expanding its subscriber base and increasing exposure to the Bitcoin ecosystem through investments [8] - The company has maintained a monthly dividend since June 2007, reflecting its commitment to returning value to shareholders [10] Q&A Session Summary Question: What is the company's outlook on gold investments? - Management noted that gold has reached an all-time high and has outperformed the S&P 500, suggesting a strong future for gold investments [20][21] Question: How is the company managing its stock buyback program? - The company is using an algorithm to buy back shares on flat and down days, believing the stock is undervalued [9][10] Question: What are the key themes driving the company's investment strategy? - The focus is on thematic investing, particularly in gold, precious metals, and AI defense sectors, which are expected to see growth [18][26]

Financial Data and Key Metrics Changes - Quarterly average assets under management were $1.4 billion, operating revenues were $2.25 million, and net income was $1.5 million, representing a significant increase from the previous year [26][28][29] - Operating revenues increased by $94,000 or 4% from the same quarter last year, primarily due to increases in advisory and administrative fees for equity mutual funds [27] - Net income after taxes increased by $1.2 million compared to the same quarter last fiscal year, rising from $315,000 to $1.5 million [28][29] Business Line Data and Key Metrics Changes - Operating expenses increased by $50,000 or 2%, mainly due to higher employee compensation and advertising expenses related to expanded ETF marketing efforts [28] - The company has maintained a strong balance sheet with high levels of cash and investments, including approximately $24.6 million in cash and cash equivalents [29] Market Data and Key Metrics Changes - The gold market has seen significant volatility, with gold reaching an all-time high of $4,300 before undergoing a correction [18][19] - The company noted a rebound in fund assets compared to the previous year, indicating improved overall revenue [18] Company Strategy and Development Direction - The company is focused on creating thematic products using Smart Beta 2.0 strategy, which involves rigorous backtesting and active money management [6][7] - A two-pillar strategy is in place to enhance shareholder value through dividends and stock buybacks, with a current share repurchase program purchasing 159,074 Class A shares [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that the worst impacts of the election and tariff battles are hopefully behind the company [11] - The company remains committed to thematic investing, particularly in gold and precious metals, and believes that current market conditions make resource assets attractive [20][21] Other Important Information - The company has been actively engaging with shareholders through various marketing channels, including YouTube and social media, to provide insights and updates [31][32] - The company has a strong commitment to educational resources, offering white papers on defense and AI sectors, as well as the business model of gold royalty and streaming companies [32] Q&A Session Summary Question: What is the outlook for gold and gold equities? - Management noted that gold has outperformed the S&P 500 and emphasized the importance of having 10%-15% of a diversified portfolio in gold and gold stocks, as recommended by Ray Dalio [19][21] Question: How is the company managing its stock buyback program? - The company is buying back shares when the stock price is flat or down, using a simple algorithm to enhance shareholder value [9][10] Question: What are the company's views on the current macroeconomic environment? - Management highlighted concerns about rising global debt levels and their implications for gold as a diversifier in investment portfolios [20][21]

Financial Performance - For the quarter ended September 30, 2025, U.S. Global Investors reported net income of $1.5 million, a 378% increase compared to the same quarter in 2024[1] - Investment income reached $2.3 million, marking a nearly 300% increase from the previous quarter and a 148% increase year-over-year[1] Assets and Management - Average assets under management (AUM) were $1.4 billion, slightly up from $1.3 billion in the previous quarter but down from $1.5 billion a year earlier[2] - As of September 30, 2025, the company reported net working capital of approximately $37.2 million, with $24.6 million in cash and cash equivalents[13] Shareholder Returns - The company's shareholder yield was 8.32%, approximately double the yield on five-year and ten-year Treasury bonds[2] - The company has initiated a monthly dividend of $0.0075 per share starting October 2025, with payment dates set for November 24 and December 29[11] Fund Flows - Fund flows into gold mining funds reached $5.4 billion in Q3 2025, the highest for a single quarter since December 2009[2] - The Global Natural Resources Fund, Gold and Precious Metals Fund, and U.S. Global GO GOLD and Precious Metal Miners ETF all experienced positive fund flows compared to the same quarter in 2024[2] Share Repurchase - During the three-month period ended September 30, 2025, the company repurchased 159,074 shares at a cost of approximately $400,000[12] - The company maintains a share repurchase program allowing for the annual purchase of up to $5 million of its outstanding common shares[12]

Financial Performance - The Company recorded net income of $1.5 million ($0.12 per share) for the three months ended September 30, 2025, compared to $315,000 ($0.02 per share) for the same period in 2024, an increase of approximately $1.2 million [148]. - Total consolidated operating revenues for the three months ended September 30, 2025, increased by $94,000, or 4.4 percent, compared to the same period in 2024 [149]. - Total consolidated other income was $2.4 million for the three months ended September 30, 2025, an increase of $1.4 million compared to $995,000 for the same period in 2024 [150]. Assets and Capital - Total assets under management (AUM) as of September 30, 2025, were approximately $1.4 billion, a decrease of $167.2 million from $1.5 billion at September 30, 2024 [141]. - The Company had net working capital of approximately $37.2 million as of September 30, 2025, a decrease of $51,000, or 0.1 percent, since June 30, 2025 [154]. - Consolidated shareholders' equity at September 30, 2025, was $46.0 million, an increase of $784,000, or 1.7 percent, since June 30, 2025 [155]. - The Company held investments carried at fair value of $13.6 million as of September 30, 2025, which is approximately 27.8 percent of total assets [146]. Investment Management - Average investment management fee rate for the three months ended September 30, 2025, was 71 basis points, up from 62 basis points in the same period in 2024 [144]. - The investment advisory contracts have been renewed through September 2026, ensuring continuity in advisory services [157]. - The company's revenues from investment management and administrative services are based on a percentage of assets under management, which are directly affected by fluctuations in financial markets [163]. Market Risks - Macroeconomic declines, including inflation and geopolitical conflicts, may negatively affect the company's revenue and operating results [161]. - Interest rate fluctuations represent a market risk factor affecting the company's investments in debt securities, potentially impacting their value and net investment income [170]. - A portion of the company's cash and corporate investments are denominated in foreign currencies, exposing them to adverse changes in foreign currency exchange rates [171]. - The company has indirect exposure to cryptocurrencies through investments in securities of issuers in the cryptocurrency industry, which are subject to significant value fluctuations [173]. - Cryptocurrencies may experience unpredictable value changes due to various factors, including regulatory changes and investor perceptions [174]. - Prolonged trade wars and tariffs may disrupt global capital flows and increase market volatility, potentially leading to lower assets under management and reduced management fees [162]. Compliance and Financial Health - The company believes current cash reserves, investments, and financing will be sufficient to meet foreseeable cash needs for operating activities [159]. - The company's compliance personnel monitor investment activities to manage compliance with ethical codes and policies affecting investment practices [165]. - The Company has access to a $1.0 million credit facility, which remained unutilized as of September 30, 2025 [156]. Valuation of Securities - As of September 30, 2025, the estimated fair value of trading securities is $12,774,000, with a hypothetical 25% increase leading to a value of $15,968,000 and a hypothetical 25% decrease leading to $9,581,000 [168].

Core Insights - U.S. Global Investors, Inc. reported a net income of $1.5 million for the quarter ended September 30, 2025, marking a return to profitability and a 378% increase compared to the same quarter in 2024 [1][16] - The company's investment income reached $2.3 million, reflecting a nearly 300% increase from the previous quarter and a 148% increase year-over-year [1][16] - Average assets under management (AUM) were $1.4 billion, slightly up from $1.3 billion in the previous quarter but down from $1.5 billion a year earlier [2][16] Financial Performance - Total operating revenues for the first quarter of fiscal 2026 were $2.3 million, up 15% from the previous quarter and 4% higher than the same quarter last year [1][15] - The company's shareholder yield as of September 30, 2025, was 8.32%, approximately double the yield on five-year and ten-year Treasury bonds [2] Market Trends - Gold prices surged 47% year-to-date through September 2025, driven by economic and geopolitical issues, leading to significant inflows into gold mining funds [3] - The third quarter of 2025 saw inflows of $5.4 billion into gold mining funds, the highest for a single quarter since December 2009 [3] Fund Performance - The company's gold mining and natural resource funds experienced positive fund flows in the quarter ended September 30, 2025, reversing the negative trend from the same period in 2024 [4][6] - The company offers three investment vehicles for exposure to the gold mining industry: USERX, UNWPX, and GOAU [10] Strategic Outlook - The CEO highlighted that gold miners ranked as the number one investment theme for 2025 according to Bank of America, amid record global debt of $338 trillion [7][11] - The company maintains a share repurchase program, allowing for the annual purchase of up to $5 million of its outstanding common shares [12] Liquidity Position - As of September 30, 2025, the company reported net working capital of approximately $37.2 million, with $24.6 million in cash and cash equivalents, indicating strong liquidity [13]

Economic Impact - The ongoing government shutdown is projected to cost the U.S. economy up to $14 billion, equivalent to a 2 percentage point hit to GDP [2] - U.S. businesses and consumers are facing an average tariff rate of 18%, the highest in about 90 years, leading to an estimated income loss of around $1,800 per household this year [3] - Consumers are shouldering most of the tariffs, with American households responsible for about 55% of the new levies [4] Consumer Spending Trends - Record spending on Halloween is anticipated, with Americans expected to spend $13.1 billion this year, up from $11.6 billion last year [5] - Preliminary data suggests U.S. households will spend 4% less on gifts and 12% less on other items for Christmas compared to last year due to tariffs [6] Cocoa Market Dynamics - Cocoa prices have spiked due to plant disease and drought in West Africa, with futures prices reaching as high as $12,000 per metric ton [6] - Major chocolatiers have announced higher prices for chocolate products and have reformulated recipes to reduce cocoa content [7][8] - European chocolate manufacturers are expected to see a decline in operating margins this year due to increased competition and reduced demand for cocoa-containing products [10] Market Performance and Investor Sentiment - The S&P 500 has spent over 125 trading sessions above its 50-day moving average, the longest stretch since 2011, driven by enthusiasm over artificial intelligence [12] - Historical data suggests that stocks tend to outperform from November to April, with an average return of 7% during this period since 1945 [13] - If the S&P 500 is up more than 15% year-to-date by the end of October, stocks have finished higher in November and December 95% of the time [14]

Core Points - U.S. Global Investors, Inc. has announced a partnership with Keystone School to address global democratic backsliding [1][3] - The partnership includes a $10,000 initial donation and a commitment of $50,000 over multiple years to support Keystone's Model UN program [2][4] - The Model UN program aims to prepare students for roles in international relations and civic engagement, with over one-third of Keystone's Upper School students participating [3][4] Financial Commitment - The initial donation to Keystone School is $10,000, with a total commitment of $50,000 planned over several years [2] - The funding will enhance access to Model UN resources, including support for underrepresented students and participation in competitions [2] Educational Impact - The partnership is designed to cultivate future diplomats and policymakers, emphasizing the importance of investing in global citizenship [3] - Keystone's Model UN program has received multiple awards and has a strong track record of student participation in national conferences [3][4] Long-term Relationship - This initiative marks the beginning of a long-term relationship between U.S. Global Investors and Keystone School, focusing on preparing students for a global economy [4]

Core Viewpoint - China's recent restrictions on rare earth exports signify a strategic shift in the global supply chain for critical minerals, potentially igniting a new "gold rush" in the West as countries seek to secure their own supplies [2][20]. Industry Overview - China currently dominates the rare earth market, controlling approximately 70% of global mining, 92% of refining, and 98% of magnet production [5]. - The 17 rare earth elements (REEs) are essential for various modern technologies, including electric vehicles, defense systems, and consumer electronics [4]. Recent Developments - Starting December 1, 2023, companies exporting goods with over 0.1% of their value from Chinese-sourced rare earths must obtain a government license, marking the most extensive export ban in China's history [7]. - The new regulations also impact supply chains linked to foreign defense contractors, affecting advanced weapon systems like the F-35, which relies on significant amounts of rare earths [8]. Market Reaction - Following China's announcement, rare earth stocks have surged, particularly those of Lynas Rare Earths, Iluka Resources, and MP Materials, the largest rare earth miner in the U.S. [11]. Government Initiatives - The U.S. Department of Defense has made a $400 million equity investment in MP Materials to secure a stable supply of neodymium-praseodymium magnets for defense applications [12]. - The U.S. and Australia have signed a Critical Minerals Framework Agreement, committing at least $1 billion to enhance processing capacity and reduce reliance on Chinese supplies [13]. Future Outlook - The current situation may lead to a new resource supercycle in critical minerals, driven by bipartisan support for reshoring and significant capital investments [20]. - Historical precedents, such as the U.S. semiconductor industry's recovery in the 1990s, suggest that the U.S. could regain its footing in the rare earth sector if it maintains its strategic focus [18][19].

Group 1 - The U.S. government has been in a shutdown since October 1, marking the first shutdown since 2019, primarily due to political gridlock over funding issues [1] - Frank Holmes is a notable figure in the investment community, serving as CEO and chief investment officer of U.S. Global Investors, which manages over $4 billion in assets [1] - Holmes is recognized for his expertise in gold and precious metals, as well as for launching innovative investment products [1] Group 2 - Holmes also holds the position of executive chairman at HIVE Blockchain Technologies, the first publicly traded cryptocurrency mining company [1]