U S GLOBAL INVESTORS INC
For the period ended Dec 31, 2025. Filed Feb 20, 2026.
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.
Dec 31, 2025 · Filed Feb 20, 2026
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 2025-09-30; filed 2025-11-12.
0001437749-25-034452
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-20.
0001437749-26-004918
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 37 previous paragraphs and 55 current paragraphs.
23 unchanged; 13 reworded; 19 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 previous and 12 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 (19)
Current report
For both the three and six months ended December 31, 2024, USGIF's period-end AUM decreased. The decrease for the three month period was primarily driven by market depreciation in the equity funds, while the decrease for the six month period was primarily driven by dividends and distributions.
Current report
For equity funds, the average investment management fee was 89 and 86 basis points for the three and six months ended December 31, 2025, respectively, compared to 68 and 72 basis points for the same periods in 2024. The Company has contractually and voluntarily agreed to limit fund expenses, which resulted in fee waivers and expense reimbursements. As a result, the average investment management fee for the fixed income funds was minimal.
Current report
The Company recorded net loss of $846,000 ($(0.07) per share) for the three months ended December 31, 2025, compared with net loss of $86,000 ($(0.01) per share) for the three months ended December 31, 2024, representing a change of approximately $760,000. The change was primarily attributable to higher income tax expense in the current period, partially offset by increased operating revenues, higher net investment income, and lower operating expenses, as discussed further below.
Current report
The decrease was primarily attributable to a $207,000, or 14.9 percent, reduction in general and administrative expenses, primarily related to lower ETF-related costs, partially offset by a $45,000, or 3.7 percent, increase in employee compensation and benefits, reflecting higher bonus expense.
Current report
Total consolidated other income was $623,000 for the three months ended December 31, 2025, an increase of $200,000 compared with $423,000 in the prior year period. The increase was primarily driven by higher net investment income, reflecting unrealized gains on investment securities and favorable foreign currency movements, partially offset by lower interest and dividend income.
Current report
Net investment income totaled $541,000 in the current period, compared with $354,000 in the prior year period. The change was driven by the following factors:
Current report
Income tax expense was $1.4 million for the three months ended December 31, 2025, compared with an income tax benefit of $30,000 for the same period in 2024, representing a change of $1.4 million. The increase in income tax expense was primarily attributable to tax adjustments of $1.3 million related to the federal income tax treatment of certain HIVE convertible securities. In connection with its evaluation of the appropriate tax treatment of these securities, the Company determined that a change in tax accounting method would be required and subsequently filed a tax accounting method change request on Form 3115 with the Internal Revenue Service. As of December 31, 2025, the method change had not yet been filed and, in accordance with U.S. GAAP, the Company’s interim tax provision does not reflect tax accounting method change.
Current report
The Company filed the non-automatic Form 3115 subsequent to December 31, 2025. The Company expects to record an offsetting $1.3 million tax benefit in the quarter ending March 31, 2026. As a result, comparability of the Company’s effective tax rate between periods will be affected.
Current report
RESULTS OF OPERATIONS–** Six months ended December 31, 2025, and 2024**
Current report
Operating Revenues
Current report
Total consolidated operating revenues for the six months ended December 31, 2025, increased by $373,000, or 8.5 percent, compared with the same period in 2024. The increase was primarily attributable to the following factors:
Current report
Operating Expenses
Current report
Total consolidated operating expenses for the six months ended December 31, 2025, decreased by $122,000, or 2.2 percent, compared with the same period in 2024.
Current report
The decrease was primarily attributable to a $298,000, or 10.3 percent, reduction in general and administrative expenses, primarily related to lower ETF-related costs. This decrease was partially offset by a $146,000, or 6.3 percent, increase in employee compensation and benefits, reflecting higher bonus expense, and a $44,000, or 18.0 percent, increase in advertising expenses related to expanded ETF marketing efforts.
Current report
Other Income (Loss)
Current report
Net investment income totaled $2.8 million in the current period, compared with $1.3 million in the prior year period. The change was driven by the following factors:
Current report
Provision for Income Taxes
Current report
Income tax expense was $1.7 million for the six months ended December 31, 2025, compared with $91,000 for the same period in 2024, representing a change of $1.6 million. The increase in income tax expense was primarily attributable to $1.3 million tax adjustments related to the federal income tax treatment of certain HIVE convertible securities. In connection with its evaluation of the appropriate tax treatment of these securities, the Company determined that a change in tax accounting method would be required and subsequently filed a non-automatic Form 3115 with the Internal Revenue Service. As of December 31, 2025, the method change had not yet been filed and, accordingly, the Company’s interim tax provision does not reflect the tax accounting method change.
Current report
The Company filed the non-automatic Form 3115 subsequent to December 31, 2025. The expects to record an offsetting $1.3 million benefit in the quarter ending March 31, 2026. As a result, comparability of the Company’s effective tax rate between periods will be affected.
Removed paragraphs (1)
Previous report
A tax expense of $337,000 was recorded for the three months ended September 30, 2025, compared to $121,000 for the same period in 2024, reflecting an increase of $216,000. The increase was primarily driven by higher net investment income in the current period.
Reworded paragraphs (13)
Previous wording
At September 30, 2025, total assets under management, including ETF and USGIF clients, were approximately $1.4 billion compared to $1.5 billion at September 30, 2024, a decrease of $167.2 million. During the three months ended September 30, 2025, average assets under management, including ETF and USGIF clients, were $1.4 billion, compared to $1.5 billion during the three months ended September 30, 2024. At June 30, 2025, the Company’s prior fiscal year end, total assets under management, including ETF and USGIF clients, were approximately $1.3 billion, and increased $52.9 million during the three months ended September 30, 2025.
Current wording
At December 31, 2025, total assets under management (“AUM”), including ETF and USGIF clients, were approximately $1.5 billion, compared to approximately $1.5 billion at December 31, 2024, representing an increase of $72.1 million, despite similar rounded amounts. Average AUM for the six months ended December 31, 2025, was approximately $1.4 billion, compared with $1.5 billion for the six months ended December 31, 2024, representing a decrease of $49.3 million. Total AUM was approximately $1.3 billion at June 30, 2025, the Company’s prior fiscal year end, and increased by $221.6 million during the six months ended December 31, 2025.
Previous wording
The following tables summarize the changes in assets under management for USGIF for the three months ended September 30, 2025, and 2024.
Current wording
The following tables summarize the changes in AUM for USGIF for the three and six months ended December 31, 2025, and 2024.
Previous wording
As shown above, USGIF's period-end assets under management (AUM) at September 30, 2025, were higher than at September 30, 2024. Average net assets during the three months ended September 30, 2025, were also higher than the corresponding period in 2024. For both the three months ended September 30, 2025, and 2024, USGIF's period-end AUM increased, primarily driven by market appreciation in the equity funds.
Current wording
As shown above, USGIF's period-end AUM at December 31, 2025, was higher than at December 31, 2024. Average net assets for both the three and six months ended December 31, 2025, were also higher than the corresponding periods in 2024. The increases in period-end AUM for both periods were primarily driven by market appreciation in the equity funds.
Previous wording
The average annualized investment management fee rate (total advisory fees, excluding performance fees, as a percentage of average assets under management) was 71 basis points for the three months ended September 30, 2025, compared to 62 basis points for the same period in 2024. For equity funds, the average investment management fee was 82 basis points for the three months ended September 30, 2025, compared to 77 basis points for the same period 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.
Current wording
The average annualized investment management fee rate (total advisory fees, excluding performance fees, as a percentage of average assets under management) was 79 and 75 basis points for the three and six months ended December 31, 2025, respectively, compared to 56 and 59 basis points for the corresponding periods in 2024.
Previous wording
As of September 30, 2025, the Company held investments carried at fair value on a recurring basis of $13.6 million and a cost basis of $16.3 million. The fair value of these investments is approximately 27.8 percent of the Company’s total assets at September 30, 2025. In addition, the Company held other investments of approximately $2.7 million, and held-to-maturity debt investments, net of allowance for credit losses, of $953,000.
Current wording
As of December 31, 2025, the Company held investments carried at fair value on a recurring basis of $12.9 million and a cost basis of $13.1 million. The fair value of these investments is approximately 27.4 percent of the Company’s total assets at December 31, 2025. In addition, the Company held other investments of approximately $2.8 million, and held-to-maturity debt investments, net of allowance for credit losses, of $958,000.
Previous wording
Investments recorded at fair value on a recurring basis were approximately $13.6 million at September 30, 2025, compared to approximately $13.8 million at June 30, 2025, the Company’s prior fiscal year end, which is a decrease of approximately $148,000. 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 $12.9 million at December 31, 2025, compared to approximately $13.8 million at June 30, 2025, the Company’s prior fiscal year end, which is a decrease of approximately $847,000. 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
Total consolidated operating revenues for the three months ended September 30, 2025, increased $94,000, or 4.4 percent, compared with the three months ended September 30, 2024. The increase was primarily attributable to the following:
Current wording
Total consolidated operating revenues for the three months ended December 31, 2025, increased $279,000, or 12.5 percent, compared with the same period in 2024. The increase was primarily attributable to the following factors:
Previous wording
Total consolidated operating expenses for the three months ended September 30, 2025, increased $50,000, or 1.8 percent, compared with the same period in 2024. The increase was primarily driven by a $101,000, or 9.3 percent, rise in employee compensation and benefits, reflecting higher bonuses, and a $52,000, or 47.7 percent, increase in advertising expenses related to expanded ETF marketing efforts. These increases were partially offset by a $93,000, or 6.2 percent, decline in general and administrative expenses, primarily due to lower ETF-related and travel and entertainment costs. Other operating expense categories experienced smaller, offsetting fluctuations.
Current wording
Total consolidated operating expenses for the three months ended December 31, 2025, decreased by $172,000, or 6.2 percent, compared with the same period in 2024.
Previous wording
The Company recorded net income of $1.5 million ($0.12 per share) for the three months ended September 30, 2025, compared to $315,000 ($0.02 per share) for the three months ended September 30, 2024, an increase of approximately $1.2 million. The increase is primarily attributed to an increase in net investment income and an increase in operating revenues, partially offset by an increase in tax expense and operating expenses during the current period compared to the same period in the prior year, as discussed further below.
Current wording
The Company recorded net income of $661,000 ($0.05 per share) for the six months ended December 31, 2025, compared with $229,000 ($0.02 per share) for the same period in 2024, representing an increase of approximately $432,000. The increase was primarily attributable to higher net investment income, increased operating revenues, and lower operating expenses, partially offset by higher income tax expense in the current period, as discussed further below.
Previous wording
Total consolidated other income was $2.4 million for the three months ended September 30, 2025, an increase of $1.4 million compared with $995,000 for the same period in 2024. The increase was primarily attributable to higher net investment income, which totaled $2.3 million for the three months ended September 30, 2025, compared with $917,000 in the prior year period. The change in net investment income was driven by the following components:
Current wording
Total consolidated other income was $3.0 million for the six months ended December 31, 2025, an increase of $1.6 million compared with $1.4 million in the prior year period. The increase was primarily driven by higher net investment income, reflecting unrealized gains on investment securities, partially offset by lower interest and dividend income.
Previous wording
At September 30, 2025, the Company had net working capital (current assets minus current liabilities) of approximately $37.2 million, a decrease of $51,000, or 0.1 percent, since June 30, 2025, and a current ratio (current assets divided by current liabilities) of 20.5 to 1. With approximately $24.6 million in cash and cash equivalents, an increase of $34,000, or 0.1 percent since June 30, 2025, and $12.8 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.
Current wording
At December 31, 2025, the Company had net working capital (current assets minus current liabilities) of approximately $36.7 million, a decrease of $580,000, or 1.6 percent, since June 30, 2025, and a current ratio (current assets divided by current liabilities) of 19.4 to 1. With approximately $25.2 million in cash and cash equivalents, an increase of $675,000, or 2.7 percent since June 30, 2025, and $12.9 million in securities carried at fair value on a recurring basis, which together comprise approximately 80.8 percent of total assets, the Company has adequate liquidity to meet its current obligations.
Previous wording
The increase in cash and cash equivalents was primarily due to proceeds from principal paydowns of $750,000 and return of capital distributions of $88,000; partially offset by repurchases of the Company's common stock of $390,000, dividends paid of $292,000, and purchases of corporate investments of $100,000. Consolidated shareholders’ equity at September 30, 2025, was $46.0 million, an increase of $784,000, or 1.7 percent since June 30, 2025. The increase was primarily driven by net income of $1.5 million, partially offset by repurchases of the Company's common stock (including excise tax) of $404,000, dividends declared of $287,000, and other comprehensive loss of $59,000 for the three months ended September 30, 2025.
Current wording
The increase in cash and cash equivalents was primarily due to proceeds from principal paydowns of $2.3 million, proceeds on the sale of corporate investments of $500,000, return of capital distributions of $180,000, and net cash provided by operating activities of $224,000; partially offset by repurchases of the Company's common stock of $1.1 million, purchases of corporate investments of $918,000, and dividends paid of $579,000. Consolidated shareholders’ equity at December 31, 2025, was $44.2 million, a decrease of $1.0 million, or 2.3 percent since June 30, 2025. The decrease was primarily driven by repurchases of the Company's common stock (including excise tax) of $1.1 million, and $571,000 of dividends declared, partially offset by net income of $661,000 during the six months ended December 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 $37.4 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, 2026, but may be suspended or discontinued. Cash and securities recorded at fair value on a recurring basis of approximately $38.1 million are available to fund current activities.