U.S. Global Investors(GROW) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Average assets under management were $1.4 billion for the year ending June 30, 2025, with operating revenues of $8.5 million, a decrease of $2.5 million or 23% from the previous year [37][38] - The net loss for the year was $334,000, or $0.03 per share, compared to a net income of $1.3 million, or $0.09 per share for fiscal year 2024, representing an unfavorable change of $1.7 million [38] Business Line Data and Key Metrics Changes - Operating revenues decreased primarily due to a reduction in assets under management, especially in the JETS ETF [38] - Operating expenses for the current quarter were $11.4 million, relatively flat compared to the prior year [38] Market Data and Key Metrics Changes - The company noted that gold has reached an all-time high in 2025, with gold stocks showing significant growth, while the ETF space has not experienced redemptions as seen in other ETFs [12][13] - The SEA ETF is connected to emerging markets, highlighting the importance of cargo shipping in global trade [10] Company Strategy and Development Direction - The company aims to create thematic products that are sustainable using a Smart Beta 2.0 strategy, focusing on rigorous backtesting and thematic investing [7][8] - There is a strategic focus on increasing exposure to the Bitcoin ecosystem and acquiring fund assets regularly [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for rapid changes in fund flows and directional shifts in the market, despite current apathy towards JETS and gold [32][35] - The company believes it is well-positioned for a long-term secular bull market, emphasizing the importance of thematic asset classes [34] Other Important Information - The company has a strong balance sheet with high levels of cash and securities, and a current ratio of 20.9 to 1 [39] - The shareholder yield is reported at 9%, indicating an attractive investment opportunity [32] Q&A Session Summary Question: What is the outlook for the JETS ETF? - Management noted that JETS has validated the concept of capturing a significant portion of global GDP, and despite current challenges, they remain positive about its future performance [27][28] Question: How is the company addressing the current market volatility? - The company is strategically buying back stock on down days and preserving cash for future growth opportunities [8][30] Question: What are the key themes driving the company's investment strategy? - The focus is on thematic investing in sectors such as gold, precious metals, and the Bitcoin ecosystem, with an emphasis on macroeconomic factors and government spending [4][9]