GROW earnings analysis
What we found in GROW's 10-K: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
U.S. Global Investors delivered a significant fiscal 2026 earnings recovery, with revenue up 21.3%, AUM up 26.3%, and net income of $3.055 million versus a prior-year loss. Growth was concentrated in gold and natural-resources products, while ETF advisory revenue declined 6.8% because of lower average JETS assets, and the core investment-management segment still posted a $555,000 loss. The outlook is tempered by unresolved financial-reporting control weaknesses, high JETS concentration, and reliance on volatile corporate investment gains.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated
- Total operating revenue increased 21.3% to $10.251 million in fiscal 2026 from $8.452 million, driven primarily by higher advisory fees from gold and natural-resources-focused products.
- Returned to profitability
- Net income improved to $3.055 million, or $0.24 diluted EPS, from a $334,000 net loss, or $(0.03) per share, in fiscal 2025. The turnaround included $4.148 million of net investment income, up from $2.393 million.
- AUM expanded materially
- Total AUM rose 26.3% to $1.672 billion at June 30, 2026, from $1.324 billion, led by USGIF AUM growth of 33.4% to $467.5 million and U.S.-based ETF AUM growth of 24.1% to $1.183 billion.
- Gold products drove growth
- Gold and natural-resources products were the principal growth engine: ETF advisory fees increased 72.8% to $1.080 million, while USGIF gold and natural-resources advisory fees increased 148.1% to $3.407 million.
- Operating leverage improved
- Operating expenses declined 5.1% to $10.854 million from $11.438 million, including a 7.8% reduction in general and administrative expense and a 22.0% reduction in advertising expense. The resulting operating loss narrowed to $603,000 from $2.986 million.
- Continued shareholder distributions
- Capital returns remained significant: the Company repurchased 733,848 class A shares for approximately $2.0 million and paid $1.141 million of dividends in fiscal 2026. Approximately $4.1 million remained available under the 2026 repurchase authorization, and the monthly dividend was authorized at $0.0075 per share through September 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Material weakness remains unresolved
- Management identified a material weakness as of June 30, 2026, involving review controls over financial-reporting workpapers, including weighted-average shares used in EPS. The remediation plan had not been submitted to the Board for approval as of the report date, and disclosure controls were deemed ineffective.
- Material dependence on JETS
- Revenue is concentrated in one product: the U.S. Global Jets ETF represented 53% of average net assets and 47% of total operating revenue in fiscal 2026, compared with 69% for both measures in fiscal 2025. A significant decline in JETS market value or redemptions could therefore materially reduce revenue.
- Earnings exposed to investments
- Corporate investment results remain volatile and accounted for a substantial share of pretax earnings: net investment income was $4.148 million in fiscal 2026 versus an operating loss of $603,000. A hypothetical 25% decline in equity-security prices would reduce estimated fair value by $2.936 million and net income by $2.319 million after tax.
- Crypto exposure remains volatile
- The Company held $919,000 of crypto and digital-asset ETFs at June 30, 2026, with an unrealized loss of $660,000 relative to cost. The filing states cryptocurrency values may decline precipitously, including to zero, and cites evolving regulation, fraud, cybersecurity, and technology risks.
- Contract renewals and fee waivers
- USGIF and ETF advisory agreements are generally terminable on short notice and subject to renewal. USGIF agreements had been renewed only through September 2026, while the Company also bore $744,000 of USGIF fee waivers and fund expenses in fiscal 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.24
- Operating margin
- -5.9%
- Segment
- Investment management services: $10.251 million of operating revenue and a $555,000 segment loss in fiscal 2026, versus $8.452 million and a $2.924 million loss in fiscal 2025.
- Segment
- Corporate investments: $4.148 million of net investment income in fiscal 2026, versus $2.393 million in fiscal 2025.
What they said about what is next.
The 10-K does not provide quantitative forward revenue or EPS guidance; annual outlook was deferred to the earnings press release or call.
The filing reads about the same as the one before it.
What came before.
- 10-Q · June 5, 2026
- U.S. Global Investors reported a Q3 2026 revenue of $3 million, up from $2 million in Q2 and Q3 of the previous year, reflecting a 50% increase year-over-year. EPS improved significantly to $0.23, a turnaround from a…
- 10-Q · May 13, 2026
- In Q3 2026, U.S. Global Investors reported revenue of $2,762,000, representing a 31.3% increase from the prior year. Net income surged to $2.7 million ($0.23 per share), a significant recovery from the net loss of…
- 10-Q · February 20, 2026
- Revenue improved to $2,510,000 for the quarter ended December 31, 2025 (up $279,000 or +12.5% vs. $2,231,000 a year ago) and operating performance materially improved (operating loss narrowed to $(88,000) from…
- 10-K · September 8, 2025
- U.S. Global Investors experienced ongoing revenue challenges in FY 2025 with a total revenue of $8M, remaining static year-over-year. The company's operating margins worsened, leading to a diluted EPS loss of -$0.02 for…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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