U.S. Global Investors Reports Increased Net Income and Operating Revenues for Six Months Ending December 31, 2025

U.S. Global Investors, Inc. reported its financial results for the six months ending December 31, 2025, revealing a net income of $661,000, or $0.05 per share, compared to a net income of $229,000, or $0.02 per share, for the same period in 2024. This represents an increase of approximately 432,000, primarily driven by higher net investment income and increased operating revenues, despite a rise in income tax expenses. Total operating revenues for the six months increased by 8.5% to $4.76 million, up from $4.39 million in the prior year, largely due to higher advisory fees from U.S. Global Investors Funds (USGIF) and a favorable change in performance fee adjustments.

In terms of operational metrics, the company reported total assets of $47.22 million as of December 31, 2025, a decrease from $48.06 million at the end of June 2025. The decline in total assets was attributed to a reduction in investments in trading securities and a slight decrease in cash and cash equivalents, which rose to $25.23 million from $24.55 million. The company’s total liabilities increased to $3.05 million, up from $2.86 million, primarily due to an increase in accrued compensation and related costs.

U.S. Global Investors also noted significant changes in its investment strategy, with total assets under management (AUM) remaining stable at approximately $1.5 billion, despite fluctuations in market conditions. The company serves as an investment advisor to four U.S.-based ETFs and one European-based ETF, with advisory fees reflecting the net asset values of these funds. The average investment management fee increased to 0.79% for the six months ended December 31, 2025, compared to 0.56% in the same period of 2024, indicating a shift in fee structures in response to market conditions.

The company’s operational efficiency was highlighted by a decrease in total operating expenses, which fell by 2.2% to $5.36 million for the six months ended December 31, 2025. This reduction was primarily due to lower general and administrative expenses, offset by an increase in employee compensation and benefits. The company also reported a significant increase in net investment income, totaling $2.82 million, compared to $1.27 million in the prior year, driven by unrealized gains on trading securities and favorable foreign currency movements.

Looking ahead, U.S. Global Investors remains cautious about market volatility and its potential impact on future performance. The company has filed a tax accounting method change request with the IRS, which is expected to reduce capital loss carryforwards and may result in a tax benefit in the upcoming quarter. Management believes that current cash reserves and investments will be sufficient to meet foreseeable cash needs, while also maintaining a focus on strategic growth and operational efficiency.