U.S. Global Investors (NASDAQ:GROW) reported net income of $3.1 million, or $0.24 per share, for the fiscal year ended June 30, 2026, reversing a net loss of $334,000, or $(0.03) per share, a year earlier.
Total operating revenue rose 21% to $10.3 million for the year, the investment advisory firm said.
The improvement reflected higher operating revenues and higher net investment income, partially offset by higher income tax expense. Net investment income totaled $4.1 million, up from $2.4 million a year earlier, and included a non-cash net gain of approximately $3.2 million on equity securities carried under the measurement alternative.
The company recorded an operating loss of $603,000, narrower than the $3 million operating loss posted in fiscal 2025.
Average assets under management for the year were $1.5 billion, up 8% from $1.4 billion. Total AUM at period-end reached $1.7 billion, up 26% from $1.3 billion a year earlier.
Shareholder yield stood at 7.9% as of June 30, 2026, above the five-year and 10-year US Treasury yields on the same trading day.
Advisory fees from U.S. Global Investors (NASDAQ:GROW) Funds totaled $3.8 million, up about $2.2 million, or 128%, from the prior year. The company attributed the increase to higher average AUM in funds focused on gold and natural resources, along with the elimination of a performance fee adjustment that had reduced advisory fees in fiscal 2025.
"Gold set a record near $5,600 an ounce in late January and then gave back a good deal of that by the end of our fiscal year," said Frank Holmes, the company's CEO and chief investment officer. "The companies that mine it had the better year. When the price of an ounce climbs faster than the cost of digging it up, the difference goes straight to the bottom line.
“What encourages me most is that these companies are holding onto the cash this time instead of spending it on bad deals, the way they did in past cycles."
Advisory fees from ETF clients totaled $6.2 million, compared with $6.6 million in fiscal 2025, reflecting lower average net assets in the U.S. Global Jets ETF.
The U.S. Global Technology and Aerospace & Defense ETF, launched in December 2024, ended the fiscal year with $41.3 million in assets, up from $6.1 million at June 30, 2025.
"Defense used to mean tanks, ships and fighter jets," Holmes said. "Today it also means chips, software and code. A drone costing a few thousand dollars can destroy a vehicle worth millions, and that changes what governments buy and who they buy it from. We built WAR to own both sides of that shift, the traditional hardware and the technology now driving it."
The company repurchased 733,848 shares during the fiscal year for approximately $2.0 million. Since the repurchase program's inception, it has bought back approximately 3.5 million class A shares, with about $4.1 million remaining under the calendar 2026 authorization.
The board has authorized a monthly dividend of $0.0075 per share from July through September 2026. The company has paid a monthly dividend since 2007.
As of June 30, 2026, the company reported net working capital of approximately $35.7 million and approximately $24.3 million in cash and cash equivalents. It had no borrowings outstanding under its $1 million credit facility.