U S GLOBAL INVESTORS INC
For the period ended Mar 31, 2025. Filed May 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
GROW$2.50+1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-12.
0001437749-25-003577
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001437749-25-015578
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 49 previous paragraphs and 48 current paragraphs.
27 unchanged; 17 reworded; 4 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Total consolidated operating expenses for the three months ended March 31, 2025, decreased by $85,000, or 2.8 percent, compared to the same period in 2024. This decrease was primarily driven by a $281,000, or 16.2 percent, reduction in general and administrative expenses, largely due to lower ETF and USGIF-related costs. The decrease was partially offset by a $146,000, or 150.5 percent, increase in advertising expenses, primarily attributed to increased efforts to grow ETF assets under management through targeted advertising spending.
Current report
A tax expense of $137,000 was recorded for the three months ended March 31, 2025, compared to $75,000 for the same period in 2024, reflecting an increase of $62,000. The increase was primarily driven by discrete items, including return-to-provision adjustments, partially offset by a higher operating loss in the current period.
Current report
RESULTS OF OPERATIONS–** Nine months ended March 31, 2025, and 2024**
Current report
Total consolidated operating expenses for the nine months ended March 31, 2025, decreased $144,000, or 1.7 percent, compared with the nine months ended March 31, 2024. This decrease was primarily driven by a $378,000, or 8.0 percent, reduction in general and administrative expenses, largely due to lower ETF and USGIF-related costs. The decrease was partially offset by a $196,000, or 67.4 percent, increase in advertising expenses, primarily attributed to increased efforts to grow ETF assets under management through targeted advertising spending.
Removed paragraphs (5)
Previous report
During the six months ended December 31, 2024, and 2023, USGIF period-end assets under management decreased in both periods. The decline during the six months ended December 31, 2024, was mainly due to dividends and distributions, whereas the decrease during the same period in 2023 was primarily the result of net redemptions, driven largely by equity fund liquidations.
Previous report
Total consolidated operating expenses for the three months ended December 31, 2024, increased $144,000, or 5.5 percent, compared with the three months ended December 31, 2023. The increase in operating expenses was primarily driven by an increase in employee compensation and benefits of $264,000, or 27.4 percent, mainly due to higher bonuses, and an increase in advertising of $23,000, or 20.5 percent. These were partially offset by a decrease in general and administrative expenses of $97,000, or 6.5 percent, and a reduction in depreciation of $46,000, or 74.2 percent.
Previous report
A tax benefit of $30,000 was recorded for the three months ended December 31, 2024, compared to a tax expense of $436,000 for the same period in 2023, reflecting a change of $466,000. The change is primarily driven by an operating loss in the current period compared to operating income in the same period of the prior year, along with a decrease in net investment income during the current period.
Previous report
RESULTS OF OPERATIONS–** Six months ended December 31, 2024, and 2023**
Previous report
Total consolidated operating expenses for the six months ended December 31, 2024, decreased $59,000, or 1.1 percent, compared with the six months ended December 31, 2023.
Reworded paragraphs (17)
Previous wording
At December 31, 2024, total assets under management, including ETF and USGIF clients, were approximately $1.5 billion compared to $2.1 billion at December 31, 2023, a decrease of $606.0 million. During the six months ended December 31, 2024, average assets under management, including ETF and USGIF clients, were $1.5 billion, compared to $2.0 billion during the six months ended December 31, 2023. At June 30, 2024, the Company’s prior fiscal year end, total assets under management, including ETF and USGIF clients, were approximately $1.6 billion, and decreased $89.1 million during the six months ended December 31, 2024.
Current wording
At March 31, 2025, total assets under management, including ETF and USGIF clients, were approximately $1.2 billion compared to $1.7 billion at March 31, 2024, a decrease of $548.2 million. During the nine months ended March 31, 2025, average assets under management, including ETF and USGIF clients, were $1.5 billion, compared to $1.9 billion during the nine months ended March 31, 2024. At June 30, 2024, the Company’s prior fiscal year end, total assets under management, including ETF and USGIF clients, were approximately $1.6 billion, and decreased $372.2 million during the nine months ended March 31, 2025.
Previous wording
The following tables summarize the changes in assets under management for USGIF for the three and six months ended December 31, 2024, and 2023.
Current wording
The following tables summarize the changes in assets under management for USGIF for the three and nine months ended March 31, 2025, and 2024.
Previous wording
As shown above, USGIF period-end assets under management at December 31, 2024, were lower compared to December 31, 2023. However, average net assets during the three and six months ended December 31, 2024, were higher compared to the corresponding periods in 2023.
Current wording
As shown above, USGIF period-end assets under management at March 31, 2025, were higher compared to March 31, 2024. Additionally, average net assets during the three and nine months ended March 31, 2025, were higher compared to the corresponding periods in 2024.
Previous wording
During the three months ended December 31, 2024, USGIF period-end assets under management declined, in contrast to an increase during the same period in 2023. The decrease during the three months ended December 31, 2024, was primarily due to market depreciation, while the increase during the same period in 2023 was largely attributed to market appreciation.
Current wording
During the three and nine months ended March 31, 2025, USGIF period-end assets under management increased, in contrast to a decline during the same periods in 2024. The increase during the three and nine months ended March 31, 2025, was primarily due to market appreciation, while the decrease during the same periods in 2024 was largely attributed to net redemptions. The net redemptions during the nine months ended March 31, 2024, were driven largely by equity fund liquidations.
Previous wording
The average annualized investment management fee rate (total advisory fees, excluding performance fees, as a percentage of average assets under management) was 56 basis points and 59 basis points for the three and six months ended December 31, 2024, respectively, and 65 basis points for both the three and six months ended December 31, 2023. For the equity funds, the average investment management fee was 68 basis points and 72 basis points for the three and six months ended December 31, 2024, respectively, compared to 82 basis points and 81 basis points for the same periods in 2023. The Company has agreed to contractually or voluntarily limit the expenses of the Funds. Therefore, the Company waived or reduced its fees and/or agreed to pay expenses of the Funds. As a result of these fee waivers, the average investment management fee for the fixed income funds was minimal.
Current wording
The average annualized investment management fee rate (total advisory fees, excluding performance fees, as a percentage of average assets under management) was 65 basis points and 61 basis points for the three and nine months ended March 31, 2025, respectively, and 64 basis points for both the three and nine months ended March 31, 2024. For the equity funds, the average investment management fee was 79 basis points and 75 basis points for the three and nine months ended March 31, 2025, respectively, compared to 81 basis points for the same periods in 2024. The Company has agreed to contractually or voluntarily limit the expenses of the Funds. Therefore, the Company waived or reduced its fees and/or agreed to pay expenses of the Funds. As a result of these fee waivers, the average investment management fee for the fixed income funds was minimal.
Previous wording
As of December 31, 2024, the Company held investments carried at fair value on a recurring basis of $14.0 million and a cost basis of $17.0 million. The fair value of these investments is approximately 27.9 percent of the Company’s total assets at December 31, 2024. In addition, the Company held other investments of approximately $1.7 million and held-to-maturity debt investments, net of allowance for credit losses, of $926,000.
Current wording
As of March 31, 2025, the Company held investments carried at fair value on a recurring basis of $13.3 million and a cost basis of $16.5 million. The fair value of these investments is approximately 27.3 percent of the Company’s total assets at March 31, 2025. In addition, the Company held other investments of approximately $1.7 million and held-to-maturity debt investments, net of allowance for credit losses, of $929,000.
Previous wording
Investments recorded at fair value on a recurring basis were approximately $14.0 million at December 31, 2024, compared to approximately $15.5 million at June 30, 2024, the Company’s prior fiscal year end, which is a decrease of approximately $1.5 million. See Note 2, Investments, in the Notes to Consolidated Financial Statements of this Quarterly Report on Form 10-Q, for further information regarding investment activities.
Current wording
Investments recorded at fair value on a recurring basis were approximately $13.3 million at March 31, 2025, compared to approximately $15.5 million at June 30, 2024, the Company’s prior fiscal year end, which is a decrease of approximately $2.2 million. See Note 2, Investments, in the Notes to Consolidated Financial Statements of this Quarterly Report on Form 10-Q, for further information regarding investment activities.
Previous wording
The Company recorded a net loss of $86,000 ($(0.01) per share) for the three months ended December 31, 2024, compared to net income of $1.2 million ($0.09 per share) for the three months ended December 31, 2023, a change of approximately $1.3 million. The change is primarily attributed to a decrease in both operating revenues and net investment income during the current period compared to the same period in the prior year, as discussed further below.
Current wording
The Company recorded a net loss of $382,000 ($(0.03) per share) for the three months ended March 31, 2025, compared to a net loss of $35,000 ($(0.00) per share) for the three months ended March 31, 2024, a change of approximately $347,000. The change is primarily attributed to a decrease in operating revenues, partially offset by a decrease in operating expenses and an increase in net investment income during the current period compared to the same period in the prior year, as discussed further below.
Previous wording
Total consolidated operating revenues for the three months ended December 31, 2024, decreased $587,000, or 20.8 percent, compared with the three months ended December 31, 2023. This decline was primarily driven by a decrease in advisory fees of $590,000, or 21.1 percent, which resulted from lower average assets under management in the ETFs and a decrease in base management fees earned. Advisory fees consist of two components: base management fees and performance fees. The reduction in base management fees was the key factor contributing to the overall decrease in advisory revenues as detailed below:
Current wording
Total consolidated operating revenues for the three months ended March 31, 2025, decreased $490,000, or 18.9 percent, compared with the three months ended March 31, 2024. This decline was primarily driven by a decrease in advisory fees of $494,000, or 19.3 percent, which resulted from lower average assets under management in the ETFs and a decrease in base management fees earned. Advisory fees consist of two components: base management fees and performance fees. The reduction in base management fees was the key factor contributing to the overall decrease in advisory revenues as detailed below:
Previous wording
For the three months ended December 31, 2024, total consolidated other income was $423,000, a decrease of approximately $1.1 million compared to $1.5 million for the same period in 2023. The primary cause of this decline was net investment income, which totaled $354,000 for the three months ended December 31, 2024. This represents a decrease of $1.1 million compared to $1.4 million in the corresponding quarter of the previous year. Net unrealized losses on equity securities, along with realized foreign currency losses, were primary factors driving the overall decrease in net investment income, as outlined below:
Current wording
For the three months ended March 31, 2025, total consolidated other income was $648,000, an increase of approximately $120,000 compared to $528,000 for the same period in 2024. The primary cause of this increase was net investment income, which totaled $548,000 for the three months ended March 31, 2025. This represents an increase of $88,000 compared to $460,000 in the corresponding quarter of the previous year. The primary factor driving the increase in net investment income was a decrease in net realized and unrealized losses on corporate investments, as outlined below:
Previous wording
The Company recorded net income of $229,000 ($0.02 per share) for the six months ended December 31, 2024, compared to $1.1 million ($0.07 per share) for the six months ended December 31, 2023, a decrease of approximately $824,000. The decline was primarily driven by lower operating revenues in the current period compared to the same period in the prior year, partially offset by higher net investment income, as discussed further below.
Current wording
The Company recorded a net loss of $153,000 ($(0.01) per share) for the nine months ended March 31, 2025, compared to net income of $1.0 million ($0.07 per share) for the nine months ended March 31, 2024, a change of approximately $1.2 million. The decline was primarily driven by lower operating revenues in the current period compared to the same period in the prior year, partially offset by higher net investment income, as discussed further below.
Previous wording
Total consolidated operating revenues for the six months ended December 31, 2024, decreased $1.6 million, or 26.3 percent, compared with the six months ended December 31, 2023. This decline was primarily driven by a decrease in advisory fees of $1.6 million, or 26.6 percent, which resulted from lower average assets under management in the ETFs and a decrease in base management fees earned. Advisory fees consist of two components: base management fees and performance fees. The reduction in base management fees was the key factor contributing to the overall decrease in advisory revenues as detailed below:
Current wording
Total consolidated operating revenues for the nine months ended March 31, 2025, decreased $2.1 million, or 24.0 percent, compared with the nine months ended March 31, 2024. This decline was primarily driven by a decrease in advisory fees of $2.1 million, or 24.3 percent, which resulted from lower average assets under management in the ETFs and a decrease in base management fees earned. Advisory fees consist of two components: base management fees and performance fees. The reduction in base management fees was the key factor contributing to the overall decrease in advisory revenues as detailed below:
Previous wording
For the six months ended December 31, 2024, total consolidated other income was $1.4 million, an increase of approximately $400,000 compared to $1.0 million for the same period in 2023. This primary driver of this increase was net investment income, which totaled $1.3 million for the six months ended December 31, 2024. This represents an increase of $368,000 compared to $903,000 in the corresponding period of the previous year. Impairment losses on equity securities recognized in the comparative period, combined with a reduction in realized gains on debt securities in the current period, were key drivers of the overall increase in net investment income, as outlined below:
Current wording
For the nine months ended March 31, 2025, total consolidated other income was $2.1 million, an increase of approximately $520,000 compared to $1.5 million for the same period in 2024. The primary cause of this increase was net investment income, which totaled $1.8 million for the nine months ended March 31, 2025. This represents an increase of $456,000 compared to $1.4 million in the corresponding period of the previous year. Impairment losses on equity securities recognized in the comparative period, which was partially offset with a reduction in realized gains on debt securities in the current period, was the key driver of the overall increase in net investment income, as outlined below:
Previous wording
A tax expense of $91,000 was recorded for the six months ended December 31, 2024, compared to $371,000 for the same period in 2023, representing a decrease of $280,000. The change is primarily driven by an operating loss in the current period compared to operating income in the same period of the prior year, partially offset by higher net investment income in the current period.
Current wording
A tax expense of $229,000 was recorded for the nine months ended March 31, 2025, compared to $446,000 for the same period in 2024, representing a decrease of $217,000. The decrease was primarily driven by a higher operating loss in the current period, partially offset by increased net investment income and the unfavorable impact of discrete items, including return-to-provision adjustments.
Previous wording
At December 31, 2024, the Company had net working capital (current assets minus current liabilities) of approximately $38.0 million, a decrease of $182,000, or 0.5 percent, since June 30, 2024, and a current ratio (current assets divided by current liabilities) of 20.0 to 1. With approximately $26.0 million in cash and cash equivalents, a decrease of $1.4 million, or 5.0 percent since June 30, 2024, and $11.0 million in securities carried at fair value on a recurring basis, excluding convertible securities, which together comprise approximately 73.8 percent of total assets, the Company has adequate liquidity to meet its current obligations.
Current wording
At March 31, 2025, the Company had net working capital (current assets minus current liabilities) of approximately $37.5 million, a decrease of $666,000, or 1.7 percent, since June 30, 2024, and a current ratio (current assets divided by current liabilities) of 21.7 to 1. With approximately $26.3 million in cash and cash equivalents, a decrease of $1.1 million, or 4.1 percent since June 30, 2024, and $11.0 million in securities carried at fair value on a recurring basis, excluding convertible securities, which together comprise approximately 76.4 percent of total assets, the Company has adequate liquidity to meet its current obligations.
Previous wording
The decrease in cash was primarily due to repurchases of the Company's common stock of $1.1 million, dividends paid of $613,000, and net cash used in operating activities of $383,000; offset by proceeds from principal paydowns of $750,000. Consolidated shareholders’ equity at December 31, 2024, was $47.3 million, a decrease of $1.7 million, or 3.5 percent since June 30, 2024. The decrease was primarily driven by $1.1 million in repurchases of the Company's common stock (including excise tax), $603,000 in dividends declared, and $276,000 in other comprehensive loss, partially offset by $229,000 in net income for the six months ended December 31, 2024.
Current wording
The decrease in cash was primarily due to repurchases of the Company's common stock of $1.6 million, dividends paid of $912,000, and net cash used in operating activities of $808,000; partially offset by proceeds from principal paydowns of $2.3 million. Consolidated shareholders’ equity at March 31, 2025, was $46.1 million, a decrease of $2.9 million, or 5.9 percent since June 30, 2024. The decrease was primarily driven by $1.6 million in repurchases of the Company's common stock (including excise tax), $900,000 in dividends declared, and $400,000 in other comprehensive loss for the nine months ended March 31, 2025.
Previous wording
The primary cash requirements are for operating activities. The Company also uses cash to purchase investments, pay dividends and repurchase Company stock. The cash outlays for investments and dividend payments are discretionary and management or the Board may discontinue as deemed necessary. The stock repurchase plan is approved through December 31, 2025, but may be suspended or discontinued. Cash and securities recorded at fair value on a recurring basis, excluding convertible securities, of approximately $37.0 million, are available to fund current activities.
Current wording
The primary cash requirements are for operating activities. The Company also uses cash to purchase investments, pay dividends and repurchase Company stock. The cash outlays for investments and dividend payments are discretionary and management or the Board may discontinue as deemed necessary. The stock repurchase plan is approved through December 31, 2025, but may be suspended or discontinued. Cash and securities recorded at fair value on a recurring basis, excluding convertible securities, of approximately $37.3 million, are available to fund current activities.