U.S. Global Investors(GROW) - 2026 Q2 - Quarterly Report

Assets Under Management - As of December 31, 2025, total assets under management (AUM) were approximately $1.5 billion, an increase of $72.1 million compared to the previous year[147] - Average AUM for the six months ended December 31, 2025, was approximately $1.4 billion, a decrease of $49.3 million from $1.5 billion for the same period in 2024[147] Operating Revenues - Total consolidated operating revenues for the three months ended December 31, 2025, increased by $279,000, or 12.5 percent, compared to the same period in 2024[157] - Total consolidated operating revenues increased by $373,000, or 8.5 percent, for the six months ended December 31, 2025, compared to the same period in 2024[165] Net Income and Loss - The net loss for the three months ended December 31, 2025, was $846,000 ($(0.07) per share), compared to a net loss of $86,000 ($(0.01) per share) for the same period in 2024[156] - The Company recorded net income of $661,000 ($0.05 per share) for the six months ended December 31, 2025, an increase of approximately $432,000 compared to $229,000 ($0.02 per share) for the same period in 2024[164] Investment Income - Net investment income totaled $541,000 for the three months ended December 31, 2025, an increase from $354,000 in the prior year period[160] - Net investment income totaled $2.8 million in the current period, compared with $1.3 million in the prior year period, reflecting a significant increase[168] Expenses - Total consolidated operating expenses decreased by $122,000, or 2.2 percent, for the six months ended December 31, 2025, primarily due to a $298,000, or 10.3 percent, reduction in general and administrative expenses[166] Tax Expenses and Benefits - Income tax expense was $1.4 million for the three months ended December 31, 2025, compared to an income tax benefit of $30,000 for the same period in 2024, representing a change of $1.4 million[160] - The Company expects to record an offsetting $1.3 million tax benefit in the quarter ending March 31, 2026, due to a tax accounting method change[163] - The Company expects to record an offsetting $1.3 million benefit in the quarter ending March 31, 2026, related to tax adjustments[172] Cash and Working Capital - The Company had net working capital of approximately $36.7 million as of December 31, 2025, a decrease of $580,000, or 1.6 percent, since June 30, 2025[173] - Cash and cash equivalents increased by $675,000, or 2.7 percent, to approximately $25.2 million since June 30, 2025[174] Shareholders' Equity - Consolidated shareholders' equity decreased by $1.0 million, or 2.3 percent, to $44.2 million since June 30, 2025, primarily due to stock repurchases[174] Credit Facilities - The Company has access to a $1.0 million credit facility, which remained unutilized as of December 31, 2025[175] Investment Management Fees - The average annualized investment management fee rate was 79 basis points for the three months ended December 31, 2025, compared to 56 basis points for the same period in 2024[151] - The average investment management fee for equity funds was 89 basis points for the three months ended December 31, 2025, compared to 68 basis points for the same period in 2024[152]