Earnings call · Jun 2026 (FY26)

U S GLOBAL INVESTORS FY26 earnings call GROW

Sep 4, 2026 Source

Executive summary

U.S. Global Investors FY26 Annual Results — Strong Revenue Growth and Shareholder Returns

U.S. Global Investors reported strong FY26 annual results, driven by a 21% increase in operating revenues to $10.3 million, primarily from growth in gold and natural resource funds. The company achieved a net income of $3.1 million, a significant turnaround from the prior year's loss. Management emphasized its commitment to shareholder value through an active share repurchase program, resulting in a 7.87% shareholder yield, and highlighted its focus on thematic ETFs and digital marketing to grow its subscriber base.

Highlights

Operating revenues increased by $1.8 million or 21% to $10.3 million in FY26.
Net income after taxes was $3.1 million or $0.24 per share, a favorable change of $3.4 million compared to a loss in FY25.
Company repurchased 733,848 Class A shares using $2 million in cash during FY26.
Shareholder yield, including stock buybacks, was 7.87%.
Strong balance sheet with net book value of $45.1 million, net working capital of $35.7 million, and a current ratio of 19.7:1.

Concerns

Operating loss for FY26 was $603,000, despite a favorable change from prior year.
Management believes the company's stock is "deeply underbid," leading to significant share buybacks.

Product announcements

Product	Type	Timeline	Details
WAR ETF	launch	recently
Return on Ideas podcast	launch	this week

Risks & headwinds

Volatility in asset classes Ongoing

S&P daily +/-1%, 10-day +/-2%; Bullion daily +/-2%, 10-day +/-4%; JETS daily +/-3%; GOAU daily +/-3%, 10-day +/-9%. Bitcoin more volatile than oil/gold over 10 days.

Mitigation:Educating investors that market swings are normal; using volatility to identify buying opportunities (e.g., buying when down 3% in a day or 6% over 10 days).

Company stock perceived as deeply underbid Ongoing

733,848 Class A shares repurchased for $2 million in FY26.

Mitigation:Algorithm-based share buyback program on flat or down days, preserving cash for future growth opportunities.

Rising global debt levels Ongoing

$350 trillion last year.

Mitigation:Recommending 5%-15% allocation to gold and Bitcoin in diversified portfolios as a hedge against modern monetary theory and increasing debt.

What to watch next

Operating revenue growth

Next fiscal year (FY27)

Current 21% YoY increase to $10.3 million in FY26

Target Continued growth, especially from gold and natural resource funds

Why it matters

Revenue growth is a key indicator of the company's ability to attract and retain AUM and generate advisory fees.

The increase was primarily due to increases in asset under management especially in our gold and natural resource funds.

2 min read 5 chapters

Detailed narrative

Volatility and Investment Strategy

Frank Holmes discussed the "DNA of volatility," explaining that market swings are a normal part of long-term investing. He highlighted the higher volatility of gold and airline-related ETFs (GOAU, JETS) compared to the S&P 500, and Bitcoin's higher volatility over 10 days. The company's strategy involves creating sustainable thematic products using a "smart beta 2.0" approach with rigorous backtesting, focusing on gold, precious metals, natural resources, airlines, and luxury goods.

Shareholder Value and Capital Allocation

The company is committed to returning value to shareholders through dividends and stock buybacks. It pays a monthly dividend with a current yield of 2.83% and actively repurchases shares on flat or down days using an algorithm. The company reduced shares outstanding by approximately 20% before COVID and reported an overall shareholder yield, including buybacks, of 7.87%.

Marketing and Digital Engagement

U.S. Global Investors is actively growing its subscriber base and followers through webcasts and digital platforms like YouTube and TikTok. They emphasize social media as a new classroom for financial education, noting the influence of financial content creators. The company recently launched a new podcast, "Return on Ideas," and interactive research pieces to engage with current and prospective shareholders.

Thematic Product Performance

The company highlighted the strong performance of its thematic ETFs, particularly SEA (shipping) and WAR (defense spending), which have outperformed the S&P 500 and relevant sector indices. The WAR ETF, a new product, focuses on defense spending, AI, cybersecurity, and autonomous systems, driven by increased global military expenditures.

Gold and Modern Monetary Theory

Management discussed the attractiveness of gold in the context of modern monetary theory, rising global debt ($350 trillion last year), and central bank gold purchases. They noted that G20 countries are increasingly printing money, with a significant portion now directed towards military spending and AI, making gold a crucial long-term asset.

AI-generated summary of the company's earnings call. Not investment advice.