U S GLOBAL INVESTORS INC

For Immediate Release

U.S. Global Investors Reports Profitability for the First Quarter of 2025 Fiscal Year

SAN ANTONIO–November 7, 2024–U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors from gold mining to airlines, today reported net income of $315,000, or $0.02 per share, for the quarter ended September 30, 2024, compared to a net loss of $176,000 in the same quarter a year earlier.

Net income was bolstered by strong consolidated other income of $995,000, a change of approximately $1.5 million from the quarter ended September 30, 2023. The change in other income was primarily due to net realized and unrealized gains in investment income, compared to net realized and unrealized losses in investment income in the three-month period a year ago. This helped offset lower operating revenue during the quarter ended September 30, 2024.

Inverted Yield Curve and U.S. Presidential Election Weighed on Investor Sentiment

Average assets under management (AUM) for the three-month period ended September 30, 2024, were $1.5 billion, a decrease of $640 million, or 30%, from the same quarter a year earlier. At 60 basis points, this represents about $3.8 million in annual revenue.

“The challenge to turn operating income from negative back to positive, as it was last year, is simply fund flows into our thematic, cyclical products,” says Company CEO and Chief Investment Officer Frank Holmes.

The Company believes many potential investors limited their exposure to risk due to a combination of factors, including global conflicts, uncertainty surrounding the U.S. presidential election and the inverted yield curve, which has been one of the most reliable recession indicators over the last 50 years.

“An inverted yield curve, where short-term rates are higher than long-term rates, has preceded every U.S. recession since the 1970s. This occurs because market participants, anticipating future rate cuts to combat a downturn, drive long-term rates lower,” says Mr. Holmes. “Before turning positive again in early September, the yield curve had been inverted for a staggering 783 consecutive days, the longest such period in U.S. history.1 We believe this kept a lot of investors on the sidelines. Despite these market pressures, we have remained committed to our disciplined investment approach. Post-election, we anticipate a renewed sense of investor confidence, and we’re optimistic that industry inflows will recover.