U S GLOBAL INVESTORS INC
For the period ended Mar 31, 2026. Filed May 13, 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.
Mar 31, 2026 · Filed May 13, 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 2025-12-31; filed 2026-02-20.
0001437749-26-004918
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-13.
0001437749-26-016734
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 55 previous paragraphs and 54 current paragraphs.
27 unchanged; 22 reworded; 5 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 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 (5)
Current report
For the three and nine months ended March 31, 2026, the increase in AUM was primarily attributable to market appreciation within the equity funds. The net shareholder purchases reflected in the table above for the three-month period were primarily driven by reinvested dividends and distributions.
Current report
AUM also increased for the three and nine months ended March 31, 2025, primarily driven by market appreciation within the equity funds.
Current report
There was an income tax benefit of $844,000 for the three months ended March 31, 2026, compared with an income tax expense of $137,000 for the same period in 2025, representing a change of approximately $981,000. The change was primarily driven by discrete tax items, including a 481(a) adjustment related to the federal income tax treatment of certain HIVE convertible securities and a decrease in the valuation allowance. These discrete items reduced income tax expense for the three months ended March 31, 2026, and had the effect of offsetting tax expense recognized in the three months ending December 31, 2025. As a result, the Company’s effective tax rate may not be comparable between periods.
Current report
RESULTS OF OPERATIONS–** Nine months ended March 31, 2026, and 2025**
Current report
Income tax expense was $874,000 for the nine months ended March 31, 2026, compared with $229,000 for the same period in 2025, representing an increase of $645,000. The increase was primarily attributable to an increase in pretax income.
Removed paragraphs (6)
Previous 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.
Previous 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.
Previous 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.
Previous report
RESULTS OF OPERATIONS–** Six months ended December 31, 2025, and 2024**
Previous 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.
Previous 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.
Reworded paragraphs (22)
Previous 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.
Current wording
At March 31, 2026, total assets under management (“AUM”), including ETF and USGIF clients, were approximately $1.4 billion, compared to approximately $1.2 billion at March 31, 2025, representing an increase of $239.1 million. Average AUM for the nine months ended March 31, 2026, was approximately $1.5 billion, compared with approximately $1.5 billion for the nine months ended March 31, 2025, representing a decrease of $36.8 million, despite similar rounded amounts. Total AUM was approximately $1.3 billion at June 30, 2025, the Company’s prior fiscal year end, and increased by $105.7 million during the nine months ended March 31, 2026.
Previous wording
The following tables summarize the changes in AUM for USGIF for the three and six months ended December 31, 2025, and 2024.
Current wording
The following tables summarize the changes in AUM for USGIF for the three and nine months ended March 31, 2026, and 2025.
Previous 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.
Current wording
As reflected above, USGIF's period-end AUM at March 31, 2026, was higher than at March 31, 2025. Average net assets for both the three and nine months ended March 31, 2026, were also higher than the corresponding prior-year periods.
Previous 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.
Current wording
The average annualized investment management fee rate (total advisory fees, excluding performance fees, as a percentage of average assets under management) was 81 and 78 basis points for the three and nine months ended March 31, 2026, respectively, compared to 65 and 61 basis points for the corresponding prior-year periods.
Previous wording
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 wording
For equity funds, the average investment management fee was 89 and 87 basis points for the three and nine months ended March 31, 2026, respectively, compared to 79 and 75 basis points for the corresponding prior-year periods. 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.
Previous 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.
Current wording
As of March 31, 2026, the Company held investments carried at fair value on a recurring basis of $12.4 million and a cost basis of $13.2 million. The fair value of these investments is approximately 25.4 percent of the Company’s total assets at March 31, 2026. In addition, the Company held other investments of approximately $4.7 million, and held-to-maturity debt investments, net of allowance for credit losses, of $961,000.
Previous 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.
Current wording
Investments recorded at fair value on a recurring basis were approximately $12.4 million at March 31, 2026, compared to approximately $13.8 million at June 30, 2025, the Company’s prior fiscal year end, which is a decrease of approximately $1.3 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 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 wording
The Company recorded net income of $2.7 million ($0.23 per share) for the three months ended March 31, 2026, compared with net loss of $382,000 ($(0.03) per share) for the three months ended March 31, 2025, representing a change of approximately $3.1 million. The change was primarily attributable to higher net investment income, a favorable change in income tax expense/benefit, higher operating revenues, and lower operating expenses, as discussed further below.
Previous 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:
Current wording
Total consolidated operating revenues for the three months ended March 31, 2026, increased $659,000, or 31.3 percent, compared with the same period in 2025. The increase was primarily attributable to the following factors:
Previous 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.
Current wording
Total consolidated operating expenses for the three months ended March 31, 2026, decreased by $322,000, or 10.7 percent, compared with the same period in 2025.
Previous wording
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 wording
The decrease was primarily driven by a $143,000, or 11.1 percent, reduction in employee compensation and benefits, reflecting lower employee salaries, hiring costs, and profit sharing; a $138,000, or 56.8 percent, decline in advertising expenses, primarily attributable to elevated advertising spending in the prior-year period; and a $42,000, or 2.9 percent, decrease in general and administrative expenses, primarily due to lower ETF-related costs.
Previous wording
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 wording
Total consolidated other income was $1.7 million for the three months ended March 31, 2026, an increase of $1.1 million compared with $648,000 in the prior-year period. The increase was primarily driven by higher net investment income, reflecting a favorable change in unrealized gains on investment securities, partially offset by lower realized gains on debt securities and lower interest and dividend income.
Previous wording
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 wording
Net investment income totaled $1.7 million in the current period, compared with $548,000 in the prior-year period. The increase was driven by the following factors:
Previous 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.
Current wording
The Company recorded net income of $3.3 million ($0.27 per share) for the nine months ended March 31, 2026, compared with a net loss of $153,000 ($(0.01) per share) for the same period in 2025, representing a change of approximately $3.5 million. The increase was primarily attributable to higher net investment income, increased operating revenues, lower operating expenses, partially offset by higher income tax expense in the current period, as discussed further below.
Previous wording
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 wording
Total consolidated operating revenues for the nine months ended March 31, 2026, increased by $1.0 million, or 15.9 percent, compared with the same period in 2025. The increase was primarily attributable to the following factors:
Previous wording
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 wording
Total consolidated operating expenses for the nine months ended March 31, 2026, decreased by $443,000, or 5.2 percent, compared with the same period in 2025.
Previous wording
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 wording
The decrease was primarily driven by a $339,000, or 7.8 percent, reduction in general and administrative expenses, primarily due to lower ETF-related costs; and a $93,000, or 19.1 percent, decline in advertising expenses, primarily attributable to elevated advertising spending in the prior-year period.
Previous 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.
Current wording
Total consolidated other income was $4.7 million for the nine months ended March 31, 2026, an increase of $2.7 million compared with $2.1 million in the prior-year period. The increase was primarily driven by higher net investment income, reflecting a favorable change in unrealized gains on investment securities, partially offset by lower realized gains on debt securities and lower interest and dividend income.
Previous wording
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 wording
Net investment income totaled $4.5 million in the current period, compared with $1.8 million in the prior-year period. The increase was driven by the following factors:
Previous 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.
Current wording
At March 31, 2026, the Company had net working capital (current assets minus current liabilities) of approximately $36.2 million, a decrease of $1.0 million, or 2.7 percent, since June 30, 2025, and a current ratio (current assets divided by current liabilities) of 20.9 to 1. With approximately $24.6 million in cash and cash equivalents, an increase of $23,000, or 0.1 percent since June 30, 2025, and $12.4 million in securities carried at fair value on a recurring basis, which together comprise approximately 75.6 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 $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.
Current wording
The increase in cash and cash equivalents was primarily due to proceeds from principal paydowns of $2.3 million, net cash provided by operating activities of $519,000, proceeds on the sale of corporate investments of $500,000, and return of capital distributions of $174,000; partially offset by repurchases of the Company's common stock of $1.6 million, purchases of corporate investments of $1.0 million, and dividends paid of $862,000. Consolidated shareholders’ equity at March 31, 2026, was $46.0 million, an increase of $841,000, or 1.9 percent since June 30, 2025. The increase was primarily driven by net income of $3.3 million, partially offset by repurchases of the Company's common stock (including excise tax) of $1.6 million and $849,000 of dividends declared during the nine months ended March 31, 2026.
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, 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.
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 $37.0 million are available to fund current activities.