U.S. Global Investors Reports Decrease in Net Income and Revenues for Six Months Ended December 31, 2024

U.S. Global Investors, Inc. reported a net income of $229,000, or $0.02 per share, for the six months ended December 31, 2024, a significant decrease from the $1.1 million, or $0.07 per share, recorded in the same period the previous year. The company's total operating revenues fell to $4.4 million, down 26.3% from $5.9 million in the prior year, primarily due to a $1.6 million decline in advisory fees, which were impacted by lower average assets under management in its exchange-traded funds (ETFs). The decrease in revenues was partially offset by an increase in net investment income, which rose to $1.3 million from $903,000 in the prior year.

In the most recent quarter, U.S. Global Investors experienced a net loss of $86,000 compared to a net income of $1.2 million in the same quarter of 2023. This shift was attributed to a 20.8% decline in total operating revenues, driven by a $590,000 drop in advisory fees. Operating expenses increased by 5.5% to $2.8 million, largely due to higher employee compensation and benefits. The company also reported a decrease in other income, primarily from net investment income, which fell to $354,000 from $1.4 million in the previous year.

The company’s total assets decreased to $50.1 million as of December 31, 2024, down from $52.0 million at the end of June 2024. Current assets were reported at $39.9 million, with cash and cash equivalents at $26.0 million. U.S. Global Investors maintained a strong liquidity position, with a current ratio of 20.0 to 1, indicating its ability to meet short-term obligations. The company also has access to a $1.0 million credit facility, which remains unutilized.

Strategically, U.S. Global Investors continues to manage its investment advisory services for four U.S.-based ETFs and one European-based ETF. The company has also been active in share repurchases, acquiring 434,618 shares for $1.1 million during the six months ended December 31, 2024. The board has authorized a continuation of the monthly dividend of $0.0075 per share through March 2025, reflecting a commitment to returning value to shareholders despite recent financial challenges.

Looking ahead, U.S. Global Investors anticipates ongoing volatility in the investment management industry, influenced by market conditions and economic factors. The company remains focused on managing its assets effectively and adapting to changing market dynamics, while also addressing the material weakness in internal controls over financial reporting that has been identified. The management believes that current cash reserves and investments will be sufficient to meet foreseeable cash needs for operating activities.