Marygold Companies Reports $1.0 Million Net Loss and 11% Revenue Decline for Q1 2025

Marygold Companies, Inc. reported a net loss of $1.0 million for the three months ended March 31, 2025, compared to a loss of $0.5 million in the same period last year, marking a 91% increase in losses. Revenue for the quarter decreased by 11% to $7.0 million, down from $7.9 million in the prior year. The decline in revenue was primarily attributed to decreased performance in the U.S. fund management segment, which saw a 7% drop in revenue due to lower average assets under management (AUM), as well as declines in the food and beauty products segments. Average AUM for the quarter was $2.6 billion, down from $3.0 billion a year earlier, reflecting the impact of commodity price fluctuations and geopolitical uncertainties.

For the nine months ended March 31, 2025, total revenue also fell by 7% to $22.9 million, down from $24.6 million in the previous year. The decrease was driven by a $1.1 million reduction in revenue from the U.S. fund management segment and a $0.5 million decline in food products. Operating expenses increased by 4% to $22.5 million, primarily due to higher general and administrative costs associated with the development of the company's fintech app. The net loss for the nine-month period was $4.3 million, nearly double the $2.2 million loss reported in the same period last year.

Strategically, Marygold Companies has made significant moves, including the acquisition of Step-By-Step Financial Planners Limited, which closed in April 2024. This acquisition is expected to enhance the company's financial services capabilities in the U.K. Additionally, the company has paused operations of its fintech app in the U.S. to focus on launching it in the U.K., where it anticipates better market conditions. The app, which was soft-launched in June 2023, has generated minimal revenue thus far.

Operationally, the company reported a decrease in customer engagement metrics across several segments. The beauty products division experienced a 25% drop in revenue, largely due to the discontinuation of sales to domestic distributors. In contrast, the security systems segment saw a slight increase in revenue, attributed to growth in larger commercial installations. The company’s employee headcount remained stable, with no significant changes reported.

Looking ahead, Marygold Companies anticipates the need for additional financing to support its fintech operations and other business initiatives. The company has recently entered into a note purchase agreement, securing $4.4 million in financing, with the potential for an additional $2.2 million. The management remains focused on improving operational efficiencies and expanding its market presence, particularly in the U.K. financial services sector, while navigating the challenges posed by current economic conditions.