Marygold Companies Reports Increased Net Loss and Decreased Revenue for Q4 2024

Marygold Companies, Inc. reported a net loss of $1.747 million for the three months ended December 31, 2024, compared to a loss of $1.183 million in the same period last year, marking a 48% increase in losses. Revenue for the quarter decreased by 5% to $8.004 million, down from $8.457 million in the prior year. The decline in revenue was primarily attributed to lower performance in the fund management segment, which saw a decrease in average Assets Under Management (AUM) from $3.5 billion to $3.1 billion, influenced by commodity price fluctuations and a high-interest rate environment. Gross profit also fell by 7% to $5.928 million, reflecting the reduced revenue.

For the six months ending December 31, 2024, the company reported a net loss of $3.332 million, nearly double the loss of $1.684 million for the same period in 2023. Total revenue for the first half of the fiscal year was $15.913 million, down from $16.692 million, with similar trends observed in the fund management segment. Operating expenses increased by 8% to $15.706 million, driven by higher costs associated with the development of the company's Fintech application and increased salaries and compensation.

Strategically, Marygold Companies has been focusing on expanding its financial services operations, particularly through the development of its Fintech application, which was soft-launched in June 2023. The app has yet to generate significant revenue, and the company incurred an operating loss of $1.5 million in its financial services segment for the quarter. Additionally, the company completed the acquisition of Step-By-Step Financial Planners Limited in April 2024, which is expected to enhance its market presence in the U.K. and contribute to revenue growth.

Operationally, the company reported a decrease in customer engagement metrics, particularly in its food products and beauty products segments, which saw revenue declines of 12% and 1%, respectively. The security systems segment, however, experienced a slight increase in revenue, attributed to growth in commercial installations. The overall employee headcount remained stable, with no significant changes reported in staffing levels.

Looking ahead, Marygold Companies anticipates continued challenges in its fund management and financial services segments due to ongoing market volatility and the need for further investment in its Fintech operations. The company has recently secured a financing arrangement of $4.4 million and plans to raise additional funds to support its growth initiatives. The management remains focused on optimizing its operations and expanding its market share, particularly in the U.K. financial services sector, while navigating the complexities of the current economic landscape.