U.S. Global Investors (NASDAQ:GROW) reported improved fiscal third-quarter results, citing higher assets under management, stronger revenue and gains on investment holdings during a webcast reviewing results for the quarter ended March 31, 2026.
Chief Financial Officer Lisa Callicotte said average assets under management were $1.63 billion for the quarter, up 15% from the same period a year earlier. Operating revenues were $2.8 million, an increase of approximately 31% year over year. The company reported quarterly net income of $2.6 million, or $0.23 per share.
Expenses Decline as Operating Income Turns Positive
Operating expenses were $2.7 million, down $322,000, or 11%, from the same quarter last year. Callicotte said the decrease was primarily tied to lower employee compensation, which fell $143,000, or 11%, and a $138,000, or 57%, decline in advertising expenses. The advertising comparison reflected elevated prior-year spending related to the launch of the company’s WAR ETF.
U.S. Global Investors posted operating income of $88,000 for the quarter, compared with an operating loss of $893,000 in the same quarter of fiscal 2025.
Other income also improved. Callicotte said other income increased by $1.1 million from the prior year, mainly due to net unrealized gains in equity securities of $1.3 million in the current period, compared with unrealized losses of $50,000 in the year-ago quarter. The company’s other income included a $1.9 million unrealized gain tied to an investment in the InvestX series, which Holmes discussed during the call.
The company recognized an $844,000 tax benefit in the quarter, compared with a tax expense of $137,000 in the March 31, 2025 quarter. Callicotte said the favorable change was driven by discrete tax items, including a federal tax adjustment related to the tax treatment of certain HIVE convertible securities and a decrease in valuation allowance.
Net income after taxes was $2.7 million, or $0.23 per share, compared with a net loss of $382,000, or $0.03 per share, in the same quarter of fiscal 2025.
Holmes Highlights Buybacks, Dividends and ETF Strategy
Chief Executive Officer and Chief Investment Officer Frank Holmes said the company continues to view its shares as undervalued and has been buying back stock as part of a strategy to enhance shareholder value through dividends and repurchases.
For the three months ended March 31, Holmes said the company repurchased 176,592 Class A shares using approximately $534,000 in cash. Since December 2019, he said, the company has reduced shares outstanding by approximately 20%.
Holmes described the company’s approach as a “2-pillar strategy” focused on monthly dividends and stock buybacks. He said the company’s monthly dividend is $0.0075 per share, equating to a present yield of about 3.4%, and said total shareholder yield, including buybacks, was 9.96%. Holmes also noted that the company has no debt.
Callicotte said U.S. Global Investors maintains a strong balance sheet, with total liabilities of $2.9 million. She said the company had net working capital of $36.2 million and a current ratio of 20.9 to 1.
Gold, Defense and AI Remain Core Themes
Holmes spent much of the webcast discussing the company’s thematic investment approach, including its focus on gold and precious metals, airlines, shipping, defense and artificial intelligence. He said U.S. Global Investors uses a “quantamental” approach and Smart Beta 2.0 strategy that combines macro and micro factors, advanced analytics and back testing.
Holmes reiterated his long-term positive view on gold, saying a diversified portfolio should include 5% to 15% in gold. He cited government money printing, fiscal and monetary imbalances, central bank buying and cultural demand for gold in countries such as China and India as factors supporting the asset class.
He said gold equities are beginning to show momentum, with gold miners’ free cash flow rising. Holmes also said central banks have been net purchasers of gold since 2010, with acceleration since 2020.
Holmes also discussed the company’s WAR ETF, which focuses on areas related to defense and AI. He said global military expenditures have reached a new high and are forecast to rise further, adding that AI is becoming significant for national security, cybersecurity and healthcare.
ETF Market Trends and Product Lineup
Holmes said the broader asset-management industry continues to see redemptions from mutual funds while ETFs grow, with active ETFs attracting significant inflows. He said active ETFs attracted $500 billion in net inflows in 2025, and more than 80% of ETF launches that year were active.
The company highlighted several products, including SEA, WAR, JETS and GOAU. Holmes said GOAU has risen 300% since launch, while JETS has outperformed the NYSE Arca Global Airline Index. He also said SEA and WAR performed strongly over the past year, despite market volatility tied to geopolitical and trade-related concerns.
Director of Marketing Holly Schoenfeldt said the company continues to market through conferences, digital content and social media. She noted that Holmes delivered a keynote presentation at the Swiss Mining Institute conference in Panama and spoke at the Wealthy & Wise Summit on themes involving gold, defense and AI. She also said the company plans to attend Wealth Management EDGE in June.
Schoenfeldt closed the webcast by encouraging investors to follow the company’s market commentary and submit questions by email.
About U.S. Global Investors (NASDAQ:GROW)
U.S. Global Investors, Inc is an independent asset management firm that specializes in natural resource and global equity investing. The company focuses on sectors such as precious metals, energy, agriculture and emerging markets, seeking long-term capital appreciation for individual and institutional investors. Its investment strategies are built around thematic, research-driven approaches that aim to capture opportunities across commodity cycles and global economic trends.
The firm offers a range of investment products, including open-end mutual funds, closed-end funds, exchange-traded funds and separately managed accounts.
