The Marygold panies(MGLD) - 2026 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended December 31, 2025 decreased by $0.4 million or 5% to $7.643 million compared to $8.004 million in the same period of 2024[106]. - Revenue for the six months ended December 31, 2025 decreased by $1.3 million or 8% to $14.607 million compared to $15.913 million in the same period of 2024[114]. - Total revenue for the six months ended December 31, 2025, was $14.6 million, down 8% from $15.9 million in the same period in 2024[139]. Asset Management - Average Assets Under Management (AUM) for the three months ended December 31, 2025 was $3.0 billion, down from $3.1 billion in the prior year, reflecting a decrease due to commodity price fluctuations and geopolitical uncertainties[108]. - Average AUM for the six months ended December 31, 2025, was $2.9 billion, a decrease from $3.1 billion in the prior year, leading to a revenue decrease of $0.4 million or 4%[141]. Operating Expenses and Losses - Operating expenses decreased by $1.5 million or 19% to $6.287 million for the three months ended December 31, 2025, primarily due to cost reductions associated with the Marygold & Co. subsidiary[109]. - Loss from operations improved by $1.2 million or 65%, resulting in a loss of $631,000 for the three months ended December 31, 2025 compared to a loss of $1.826 million in the prior year[110]. - Operating loss for the U.S. and U.K. Financial Services segment was $0.7 million for the six months ended December 31, 2025, compared to a loss of $3.3 million in the same period in 2024[151]. - Operating loss for corporate headquarters was relatively flat at $2.4 million for the six months ended December 31, 2025, compared to $2.5 million in the same period in 2024[152]. Net Loss and Other Income - Net loss for the three months ended December 31, 2025 decreased by $1.2 million or 67% to $576,000, driven by the changes in revenue and operating expenses[112]. - Total other income increased by $1.1 million or 372% for the six months ended December 31, 2025, driven by a $0.5 million gain on the sale of Brigadier and reduced interest expenses[120]. Segment Performance - The beauty products segment saw a revenue increase of $0.3 million or 39% for the three months ended December 31, 2025, attributed to changes in distribution channels[131]. - Operating income for the beauty products segment improved to $0.1 million for the three months ended December 31, 2025, compared to an operating loss of $0.1 million in the prior year[132]. - Revenue from beauty products increased by $0.4 million or 28% for the six months ended December 31, 2025, driven by changes in distribution channels[145]. - The security systems segment's revenue was eliminated following the sale of Brigadier on July 1, 2025, resulting in a 100% decrease in revenue from this segment[106]. Cash and Investments - Cash and cash equivalents decreased to $4.1 million as of December 31, 2025, from $5.0 million as of June 30, 2025, a decline of $0.9 million or 18%[154]. - The company invested a total of $19.3 million in the fintech app since its inception in 2019, with ongoing development costs expected[154]. Dividends - The company has never declared or paid any cash dividends and intends to retain future earnings to finance operations and expansion[159]. Other Developments - Marygold US paused its mobile banking fintech app in the US effective April 1, 2025, after earning only de minimis revenues since its soft launch in June 2023[135]. - For the three months ended December 31, 2025, Marygold UK reported a total Financial Services revenue increase of $0.1 million, with a consolidated operating loss of $0.4 million, a decrease of $1.3 million or 78% compared to the same period in 2024[137].