U.S. Global Investors(GROW) - 2026 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported average assets under management of $1.4 billion and operating revenues of $2.25 million for the quarter, with net income of $1.5 million, an increase from $315,000 in the same quarter last year [28][30] - Operating revenues increased by $94,000 or 4% from the previous year, primarily due to higher advisory and administrative fees for equity mutual funds [29] - The company has maintained a strong balance sheet with cash and cash equivalents of approximately $24.6 million, reflecting a slight increase since June 2025 [30] Business Line Data and Key Metrics Changes - The company has seen a rebound in investment income, which has improved due to unrealized gains on investments [30] - The operational earnings consist of advisory fees, while other earnings include realized and unrealized gains and losses on investments [28] Market Data and Key Metrics Changes - The gold market has shown significant volatility, with gold reaching an all-time high of $4,300 before undergoing a correction [20][19] - The company noted that gold has outperformed the S&P 500, doubling its performance this century, which has led to increased interest in gold investments [20][21] Company Strategy and Development Direction - The company is focused on creating thematic products using a smart beta 2.0 strategy, which involves rigorous backtesting and active money management [7][14] - A two-pillar strategy is in place to enhance shareholder value through dividends and stock buybacks, with a current yield of 3.46% [10][9] - The company is actively buying back stock when prices are flat or down, indicating a belief that the stock is undervalued [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that the worst impacts of the tariff wars may be behind them, with a rebound in assets and investment income [11][13] - The company highlighted the importance of gold as a diversifier in investment portfolios, especially in light of rising global debt levels [21][22] Other Important Information - The company has been expanding its subscriber base and increasing exposure to the Bitcoin ecosystem through investments [8] - The company has maintained a monthly dividend since June 2007, reflecting its commitment to returning value to shareholders [10] Q&A Session Summary Question: What is the company's outlook on gold investments? - Management noted that gold has reached an all-time high and has outperformed the S&P 500, suggesting a strong future for gold investments [20][21] Question: How is the company managing its stock buyback program? - The company is using an algorithm to buy back shares on flat and down days, believing the stock is undervalued [9][10] Question: What are the key themes driving the company's investment strategy? - The focus is on thematic investing, particularly in gold, precious metals, and AI defense sectors, which are expected to see growth [18][26]