U.S. Global Investors, Inc.

What they do

The company operates two segments: Investment Management Services and Corporate Investments. Investment Management Services provides investment advisory and administrative services to U.S. Global Investors Funds (USGIF), four U.S.-based ETF clients, and one European-based ETF, The Travel UCITS ETF. The company also invests its own cash through the Corporate Investments segment. Fees from advisory and administrative services, plus investment income, are the primary revenue sources.

Revenue drivers

• Advisory fees from USGIF — Advisory fees from U.S. Global Investors Funds were $3.8 million in fiscal 2026, up approximately $2.2 million or 128% year over year, driven by higher average AUM in gold and natural resources sector funds and by the absence of a performance fee adjustment that had reduced fiscal 2025 fees.
• Advisory fees from ETF clients — Advisory fees from ETF clients were $6.2 million in fiscal 2026, down from $6.6 million in fiscal 2025, reflecting lower average net assets in the U.S. Global Jets ETF (JETS).
• Corporate Investments — The company invests its own cash in trading securities, debt securities, and other investments. Net investment income was $4.1 million in fiscal 2026, versus $2.4 million in fiscal 2025, including a non-cash net gain of approximately $3.2 million on equity securities carried under the measurement alternative.

Recent performance

For fiscal year 2026, the company reported net income of $3.1 million, or $0.24 per diluted share, compared with a net loss of $334,000, or $(0.03) per share, in fiscal 2025. Total operating revenue rose 21% year over year, while the operating loss narrowed to $603,000 from $3.0 million. Average AUM for fiscal 2026 was $1.5 billion, up 8%, and period-end AUM was $1.7 billion, up 26% from $1.3 billion at June 30, 2025. Quarterly revenue accelerated through the year, reaching $6.9 million in the quarter ended June 30, 2026, up from $2.8 million in the prior quarter.

Strategy

Management continues to focus on specialized, thematic investment strategies, with recent growth concentrated in gold and natural resources funds and in the U.S. Global Technology and Aerospace & Defense ETF (WAR). The WAR ETF, launched in December 2024, ended fiscal 2026 with $41.3 million in assets, up from $6.1 million at June 30, 2025. The company maintains a significant corporate investment portfolio, which generated a substantial portion of fiscal 2026 net income. It also pays a quarterly dividend and reported a shareholder yield of 7.9% as of June 30, 2026.

Risks

• Competition — The investment management business is intensely competitive, with rivals including banks, broker-dealers, and other advisers, and some competitors may offer alternative asset classes perceived as more attractive.
• Regulatory compliance — Failure to comply with federal securities laws and regulations could result in fines, sanctions, or censures that reduce earnings and the stock price.
• Internal control weakness — Management identified a material weakness in internal control over the calculation of weighted average shares outstanding, leading to a restatement and a conclusion that disclosure controls were not effective as of March 31, 2026.
• AUM concentration — Revenue depends heavily on advisory fees from USGIF and ETF clients, and a decline in AUM or client redemptions, particularly in gold and natural resources or JETS, would directly reduce revenue.

Outlook

Management did not provide specific financial guidance in the earnings release, but highlighted continued momentum in the WAR ETF and ongoing gold demand from central banks as factors supporting the business. The company said it is implementing remedial measures to address the material weakness in internal control over financial reporting.