Sprott(US:SII)2025-08-06 11:00Financial Performance - Net income for Q2 2025 was $13.5 million ($0.52 per share), up 1% from $13.4 million ($0.53 per share) in Q2 2024, and year-to-date net income was $25.5 million ($0.99 per share), up 2% from $24.9 million ($0.98 per share) for the same period last year[5] - Adjusted EBITDA for Q2 2025 was $25.5 million ($0.99 per share), a 14% increase from $22.4 million ($0.88 per share) in Q2 2024, and year-to-date adjusted EBITDA was $47.4 million ($1.83 per share), up 12% from $42.1 million ($1.66 per share) for the same period last year[6] - Total net revenues for Q2 2025 were $41.97 million, up from $37.38 million in Q1 2025, reflecting a growth of 7%[1] - Net income for the three months ended June 30, 2025, was $13,501,000, representing a net income margin of 21%[38] - Adjusted EBITDA for the same period was $25,453,000, with an adjusted EBITDA margin of 61%[38] - Total revenues for the three months ended June 30, 2025, increased to $65,174,000, up 36.0% from $47,988,000 in the same period of 2024[121] - Adjusted EBITDA for the first half of 2025 was $47,354,000, compared to $42,126,000 in the same period of 2024, reflecting a 12% growth[173] Assets Under Management (AUM) - Assets Under Management (AUM) reached $40 billion as of June 30, 2025, a 14% increase from $35.1 billion as of March 31, 2025, and a 27% increase from $31.5 billion as of December 31, 2024[3] - As of August 1, 2025, assets under management (AUM) reached $40.1 billion, a slight increase from $40 billion as of June 30, 2025[49] - Total AUM reached $40 billion as of June 30, 2025, representing a 14% increase from $35.1 billion as of March 31, 2025, and a 27% increase from $31.5 billion as of December 31, 2024[55] - Average AUM for Q2 2025 was $37.58 billion, up from $33.27 billion in Q1 2025[1] - Total AUM as of June 30, 2025, reached $34.0 billion, compared to $25.6 billion in the same period last year, reflecting a significant increase[68] Revenue and Sales - The company reported $1.2 billion in net sales during the quarter, primarily from physical trusts[4] - The company experienced $1.6 billion in net sales during the first half of 2025, reflecting growth in asset base and investor allocations[12] - Total net revenues for the quarter were $30.8 million, a 17% increase from $26.1 million in Q2 2024[68] - Revenue from Canada for Q2 2025 was $43,110,000, while revenue from the United States was $22,064,000, contributing to the overall revenue growth[174] Expenses and Compensation - Total expenses for Q2 2025 were $46.31 million, compared to $27.61 million in Q1 2025, reflecting a significant increase[1] - Total expenses increased to $12,760,000 for the three months ended June 30, 2025, compared to $8,243,000 in the same period of 2024, largely due to higher compensation costs[85] - Compensation expenses for the three months ended June 30, 2025, increased to $33,825,000, up 76.2% from $19,225,000 in 2024[121] - Stock-based compensation increased to $18.6 million for the quarter, up from $4.3 million in the same quarter last year, due to a change in accounting requirements[61] Market Performance and Investments - The Sprott Gold Equity Fund gained 15.5% in Q2 2025 and is up more than 47.4% year-to-date[9] - The Sprott Silver Miners & Physical Silver ETF (SLVR) gained 61% since its inception in January 2025, surpassing $160 million in assets, while the Sprott Active Gold & Silver Miners ETF (GBUG) is up 33% since its mid-February inception with over $50 million in assets[9] - Precious metals prices increased significantly, with gold up 6% in Q2 and 26% year-to-date, silver up 6% in Q2 and 32% year-to-date, and platinum and palladium up 36% and 12% in Q2, respectively[8] - Uranium prices firmed late in Q2 2025, with the Sprott Physical Uranium Trust raising $226 million through two financings, supported by a diverse range of investors[10] Financial Health and Liquidity - As of June 30, 2025, the company had $75.1 million in cash and cash equivalents, an increase from $46.8 million at the end of 2024, indicating improved liquidity[93] - The company had $nil outstanding on its credit facility as of June 30, 2025, indicating strong financial health and compliance with all covenants[94] - The company maintains a credit facility of $75 million, with a maturity date of August 8, 2028, and is currently in compliance with all covenants[176] - The company is in compliance with its respective capital requirements as of June 30, 2025, ensuring it meets regulatory obligations[155] Shareholder Returns - Total shareholder return includes changes in share price and dividends paid, indicating overall financial performance[32] - The company declared total dividends of $15,484,000 during the six months ended June 30, 2025, maintaining a regular dividend of $0.30 per share[89] - The company declared dividends of $15,484,000 during the six months ended June 30, 2025, compared to $12,932,000 in the same period of 2024[123] Market Outlook - The outlook indicates continued volatility in markets, with expectations of ongoing geopolitical tensions and economic challenges impacting future performance[11]