This article first appeared on GuruFocus.
Release Date: September 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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US Global Investors Inc (NASDAQ:GROW) has a strong balance sheet with high levels of cash and securities.
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The company has a strategic focus on thematic investing, particularly in gold, precious metals, natural resources, airlines, and luxury goods.
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US Global Investors Inc (NASDAQ:GROW) has been actively buying back its stock, which is part of its strategy to enhance shareholder value.
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The company pays a monthly dividend with a yield of 3.66%, which is more attractive than many money funds.
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US Global Investors Inc (NASDAQ:GROW) has expanded its global reach with ETFs like JETS and GOAU now listed on the Mexican Stock Exchange and other Latin American markets.
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US Global Investors Inc (NASDAQ:GROW) reported a net loss of $334,000 for the fiscal year 2025, compared to a net income of $1.3 million in the previous year.
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Operating revenues decreased by 23% from the prior year, primarily due to a decrease in assets under management, especially in the JETS ETF.
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The company experienced a decrease in assets under management, impacting its revenue generation.
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Despite the positive performance of gold, there have been significant redemptions in gold-related ETFs, affecting fund flows.
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The company faces challenges from a volatile and challenging macro environment, impacting its financial performance.
Q: Can you elaborate on the company’s strategy for managing volatility and its impact on revenue? A: Frank Holmes, CEO and CIO, explained that the DNA volatility of GROW has decreased significantly, now less than the Dow Jones US Asset Managers Index. This reduction in volatility is crucial as it impacts revenue derived from assets in JETS and GOAU, which are key drivers of the company’s overall revenue line.
Q: How is US Global Investors positioning itself in the cryptocurrency market, particularly with Bitcoin? A: Frank Holmes highlighted that the company is increasing its exposure to the Bitcoin ecosystem, especially following the approval of the Genius Act. They view Bitcoin’s scarcity, capped at 21 million coins, as a significant factor, and the adoption process is growing rapidly in America.
Q: What are the financial highlights for the fiscal year 2025? A: Lisa Callicotte, CFO, reported that average assets under management were $1.4 billion, with operating revenues of $8.5 million. The company experienced a net loss of $334,000 or $0.03 per share, primarily due to a decrease in assets under management, especially in the JETS ETF.