U.S. Global Investors (NASDAQ:GROW) reported a return to profitability in the first quarter of fiscal 2026, supported by increased investment income and renewed investor interest in gold-related assets.
For the quarter ended September 30, the company posted net income of $1.5 million, compared with a loss in the prior quarter and up 378% from $315,000 a year earlier.
Investment income rose to $2.3 million, an increase of nearly 300% from the previous quarter and 148% from the same period last year.
Total operating revenues reached $2.3 million, up 15% sequentially and 4% year over year.
Average assets under management stood at $1.4 billion, up slightly from $1.3 billion in the prior quarter but below $1.5 billion a year earlier.
As of the quarter-end, the company’s shareholder yield was 8.32%, roughly twice that of five- and 10-year US Treasury yields on the same day.
U.S Global Investors CEO and chief investment officer Frank Holmes said the rebound was aided by a strong gold market, with prices up 47% year-to-date through September amid global economic and geopolitical uncertainty.
“I’m thrilled to see fund flows into our gold mining and natural resources funds turn positive in the first quarter of fiscal 2026, a welcome reversal from a year earlier,” Holmes said.
According to the company, its Global Natural Resources Fund (PSPFX), Gold and Precious Metals Fund (USERX), and U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) all recorded positive fund flows compared with net outflows in the prior year’s quarter.
Holmes noted that gold and gold mining assets continue to be viewed as hedges against inflation, currency weakness, and policy risk, reiterating his recommendation that investors maintain a 10% weighting in gold, split evenly between physical bullion and mining stocks.
Additionally, the company’s board approved a monthly dividend of $0.0075 per share for October through December 2025. Remaining payments are scheduled for November 24 and December 29.
U.S. Global Investors repurchased 159,074 shares during the quarter for approximately $400,000 under its long-standing $5 million annual share repurchase authorization.