U.S. Global Investors Reports 12% Sequential Growth in Assets Under Management in Q2 of Fiscal 2026

Financial Performance - U.S. Global Investors reported total assets under management (AUM) of approximately $1.5 billion at the end of Q2 fiscal 2026, marking a 12% increase from the prior quarter and a 5% increase year-over-year [1] - Operating revenue rose by $259,000, or 11.5%, compared to the previous quarter, and by $279,000 compared to the same quarter in the previous year [1] - The company's income before taxes was $535,000, a significant improvement from a loss of $116,000 in the same quarter of the previous year [1] Tax and Accounting - The company recorded a tax expense of approximately $1.3 million related to HIVE Digital Technologies Ltd. convertible securities, with an expected offsetting tax benefit of $1.3 million in the following quarter [2] - The effective tax rate for the quarter was elevated due to a non-cash valuation allowance of approximately $471,000 against deferred tax assets [2] Shareholder Initiatives - The company's shareholder yield as of December 31, 2025, was 9.89%, significantly higher than the yields on five-year and ten-year Treasury bonds [3] - A monthly dividend of $0.0075 per share was approved by the Board, starting in January 2026 through March 2026 [3] - The company has a share repurchase program allowing for the annual purchase of up to $5 million of its outstanding common shares, with 262,195 shares repurchased during the last quarter [4] Industry Insights - Air travel demand remained strong in 2025, with a 5.3% increase in passenger demand compared to 2024, despite ongoing capacity constraints [5] - The global passenger load factor reached a record 83.6%, with international demand rising by 7.1% [5][6] - Consumers continue to prioritize experiences, indicating a positive long-term growth potential for the airlines and travel ecosystem [7] Gold Market Trends - Gold demand exceeded 5,000 metric tons for the first time in 2025, with an annual value of approximately $555 billion, up 45% year-over-year [8][9] - Central bank purchases totaled 863 tons in 2025, contributing to gold's record-setting prices [9] - Analysts expect continued support for gold prices due to macroeconomic uncertainty, with Goldman Sachs raising its year-end 2026 gold forecast to $5,400 per ounce [12]