U S GLOBAL INVESTORS INC
For the period ended Jun 30, 2026. Filed Sep 3, 2026.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Sep 3, 2026
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2025-06-30; filed 2025-09-08.
0001437749-25-028574
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-06-30; filed 2026-09-03.
0001437749-26-029613
Item 7. 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 66 previous paragraphs and 74 current paragraphs.
29 unchanged; 22 reworded; 21 added; 15 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 30 previous and 20 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 (21)
Current report
The Company’s operating revenues are closely tied to assets under management (“AUM”), which are influenced by market performance, investor inflows and outflows, and the mix of managed investment products. As a result, changes in financial markets and investor sentiment can have a significant impact on revenues and operating results.
Current report
During the fiscal year ended June 30, 2026, U.S. equity markets delivered strong returns, supported by resilient economic growth and continued technological innovation. The S&P 500 gained approximately 20.9 percent for the twelve months ended June 30, 2026, led by the Information Technology sector, which advanced approximately 36.7 percent. Investor enthusiasm surrounding artificial intelligence (“AI”), cloud computing, and digital infrastructure fueled strong earnings growth among technology companies. Semiconductor manufacturers and related businesses benefited from growing demand for AI-related hardware and data center investment. This demand contributed significantly to overall market performance.
Current report
At the same time, global financial markets continued to be influenced by geopolitical tensions, trade policy uncertainty, and shifting monetary policy expectations. Conflicts in Eastern Europe and the Middle East, along with changing tariff policies among major economies, contributed to periods of market volatility. These conditions increased investor interest in safe-haven assets, particularly gold. Gold prices reached record highs during the period, benefiting precious metals mining and royalty companies and supporting investor demand for related investment strategies.
Current report
While several central banks began easing monetary policy during the year, inflation remained above long-term targets in many regions. Economic growth moderated but remained positive across most major economies, supported by healthy labor markets and consumer spending. These conditions created a range of opportunities across asset classes and encouraged investors to seek targeted investment exposure through exchange-traded funds (“ETFs”).
Current report
The travel and tourism industry remained resilient throughout the fiscal year. Strong demand for leisure travel, international tourism, cruises, and hospitality services supported revenue growth across many travel-related companies. These trends benefited the Company’s travel-focused products, including the U.S. Global Jets ETF (JETS) and the U.S. Global Travel UCITS ETF (TRIP), as investors continued to seek exposure to the long-term growth of global travel.
Current report
Investors’ preference for ETFs over traditional mutual funds remained a key industry trend. The ETF industry continued to attract net inflows due to its transparency, liquidity, and tax efficiency, while actively managed mutual funds generally experienced net outflows. This shift reflects growing demand for flexible, cost-effective investment vehicles.
Current report
Management remains focused on growing assets under management through differentiated investment strategies, expanding distribution opportunities, and prudently managing market and geopolitical risks. The Company believes its specialized exposure to travel, precious metals, technology, aerospace and defense provides attractive opportunities for long-term growth as investor demand continues to evolve.
Current report
The Company generates operating revenues from providing investment management and related services to USGIF and ETF clients. These revenues are largely dependent on the value and composition of AUM. As a result, fluctuations in financial markets, investor sentiment and net cash flows directly affect AUM and, consequently, the Company's revenues and operating results.
Current report
Information regarding the mutual funds within USGIF, including prospectuses and performance information, is available on the Company's website, www.usfunds.com. Information regarding the Company's U.S.-Based ETFs, including prospectuses, performance and holdings, is available at www.usglobaletfs.com. Shareholders in USGIF are generally not required to provide advance notice prior to redeeming fund shares, and USGIF does not currently charge redemption fees. Similarly, the U.S.-based ETFs' authorized participants are generally not required to provide advance notice of share redemptions, and the U.S.-based ETFs do not charge redemption fees.
Current report
Investment advisory revenues are affected by changes in AUM, including:
Current report
As of June 30, 2026, USGIF AUM was $467.5 million compared to $350.4 million as of June 30, 2025, an increase of $117.0 million, or 33.4 percent. Average net assets for USGIF were $489.1 million during fiscal year 2026 compared to $308.4 million during fiscal year 2025, an increase of 58.6 percent. The change in USGIF AUM was primarily attributable to market appreciation in equity funds.
Current report
As of June 30, 2026, AUM in the Company's U.S.-based ETFs was $1.2 billion compared to $953.0 million as of June 30, 2025, an increase of $229.8 million, or 24.1 percent. Average net assets for the Company's U.S.-based ETFs were $1.0 billion during fiscal year 2026 compared to $1.1 billion during fiscal year 2025, a decrease of 6.1 percent. The change in U.S.-based ETF AUM was primarily attributable to market appreciation, particularly within JETS. The Company also serves as investment adviser to TRIP, a European-based ETF that is not included in the table above. Average net assets for TRIP were $20.5 million and $20.4 million during fiscal years 2026 and 2025, respectively.
Current report
During fiscal years 2026 and 2025, the Company recorded advisory fee revenue from USGIF of approximately $3.8 million and $1.7 million, respectively. Based on actual recorded amounts, total USGIF advisory fees increased by approximately $2.2 million, or 128.2 percent, in fiscal year 2026 compared to fiscal year 2025, primarily due to higher average AUM in the funds focused on the gold and natural resources sector. This increase was also attributable to the elimination of the performance fee adjustment, which reduced advisory fees in fiscal 2025 but did not impact advisory fees in 2026.
Current report
The average management fee rate for the Company's U.S.-based ETFs was 59 basis points and 60 basis points during fiscal years 2026 and 2025, respectively. Advisory fees from all ETF clients totaled $6.2 million and $6.6 million during fiscal years 2026 and 2025, respectively. Changes in ETF advisory fees during fiscal year 2026 were primarily attributable to lower average net assets in JETS.
Current report
Cryptocurrency markets and related securities have been, and are expected to continue to be, volatile and may be influenced by a variety of factors, including speculative activity, technological developments, market sentiment, and regulatory changes. Companies operating in the cryptocurrency industry also face cybersecurity, environmental, regulatory, and other operational risks. Changes in the market value of the Company's investments, including investments in companies operating in the cryptocurrency industry, may affect the investment values reported in the Company's Consolidated Balance Sheets and the gains and losses recognized in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss).
Current report
Advisory fees increased $1.7 million, or 20.5 percent, in fiscal 2026 compared to fiscal 2025. The increase consisted of approximately $1.5 million of higher management fees, primarily due to higher average assets under management, and a favorable $247,000 change related to the elimination of performance fee adjustments. Management fees from USGIF increased due to higher average assets under management, primarily driven by market appreciation. ETF advisory fees decreased due to lower average assets under management, primarily in JETS.
Current report
Total consolidated other income increased to $4.5 million for fiscal 2026 from $2.7 million for fiscal 2025, primarily due to higher net investment income. Net investment income was $4.1 million in fiscal 2026, compared to $2.4 million in fiscal 2025, reflecting an increase in realized and unrealized results on equity securities. Realized and unrealized gains on equity securities were $2.6 million in fiscal 2026, compared to losses of $281,000 in fiscal 2025. The fiscal 2026 results included net realized and unrealized gains of $3.2 million from equity investments accounted for under the measurement alternative in fiscal 2026, compared to realized losses of $362,000 in fiscal 2025.
Current report
Partially offsetting the fiscal 2026 increases, dividend and interest income declined $723,000, or 33.0 percent, to $1.5 million, primarily due to lower interest income earned on the Company's HIVE convertible debentures as a result of principal repayments. In addition, realized gains on debt securities decreased $502,000 to $108,000 in fiscal 2026 from $610,000 in fiscal 2025, reflecting lower gains recognized on the Company's HIVE convertible debenture investment.
Current report
Income tax expense was $829,000 for fiscal 2026, compared to $72,000 for fiscal 2025, an increase of $757,000. The increase was primarily attributable to higher earnings before income taxes, offset by changes in reserves for uncertain tax positions, and an increase in the valuation allowance on certain deferred tax assets. See Note 12 to the Consolidated Financial Statements of this Annual Report on Form 10-K for additional information regarding income taxes.
Current report
Cash and cash equivalents decreased $222,000 during fiscal 2026, primarily due to $2.0 million of common stock repurchases, $1.1 million of dividend payments, and $1.2 million of corporate investment purchases. These uses of cash were partially offset by $742,000 of net cash provided by operating activities and $2.3 million of proceeds from principal repayments on investments. Shareholders' equity decreased $68,000, or 0.2 percent, from June 30, 2025, primarily reflecting $2.0 million of common stock repurchases and $1.1 million of dividends declared, partially offset by net income of $3.1 million for fiscal 2026.
Current report
**Investments Without Readily Determinable Fair Values.**Certain investments are accounted for under the ASC 321 measurement alternative. Management applies significant judgment in assessing whether observable price changes exist and whether impairment indicators are present. Changes in these judgments could affect the carrying value of the investments and the related gains or losses recognized in earnings. Accordingly, management considers the accounting for these investments to be a critical accounting estimate.
Removed paragraphs (15)
Previous report
The Company’s operating revenues are highly correlated to the level of assets under management (“AUM”) and fees associated with various investment products. While AUM is directly impacted by changes in the financial markets, it is also impacted by cash inflows or outflows due to shareholder activity. Various products may have different fees, so changes in our product mix may also affect revenues. For example, international equity products will generally have a higher fee than fixed income products, so changes in assets in those products will have a larger impact on revenues.
Previous report
While products are offered for a wide variety of markets, the Company has traditionally focused on gold mining and exploration, natural resources, and emerging markets. More recently the airline industry has become more significant to our revenue. All these markets are volatile and subject to capital cycles.
Previous report
Reflecting on the significant developments and challenges of the past year ending and as of June 30, 2025, our outlook acknowledges the ongoing impact of geopolitical tensions, monetary policy decisions, and market dynamics that have shaped the investment landscape.
Previous report
Over the last year, the persistence of tariffs and trade sanctions across several key nations— including ongoing tensions involving China, the Ukraine-Russia conflict, and geopolitical uncertainties surrounding India-Pakistan and Israel-Iran—have continued to influence global trade flows. Despite these challenges, we believe that certain asset classes, particularly those aligned with natural resources such as precious metals and mining, have generally benefited from these geopolitical and macroeconomic shifts. The sustained demand for metals like gold and other commodities has supported our performance-driven assets within these sectors.
Previous report
Throughout 2024 and into 2025, the U.S. Federal Reserve has maintained higher interest rates for an extended period, with expectations originally calling for rate cuts in the first half of 2025. While two rate cuts were anticipated, the Fed has signaled a cautious approach, citing inflation remaining above target and geopolitical uncertainties as factors that warrant vigilance. The U.S. economy has shown resilience, with moderate growth and continued elevated inflation, driven partly by ongoing consumer spending and supply chain adjustments stemming from global disruptions.
Previous report
In the travel and tourism sector, robust demand persisted through the spring and summer months, supported by renewed leisure travel and business activity. This resilience has translated into strong investor interest, notably flowing into airline stocks and related industries, which has been a significant driver for our Jets ETF and airline-related revenues. This trend underscores the ongoing recovery in travel and transportation sectors, even amid macroeconomic headwinds.
Previous report
In broader market performance, the S&P 500 experienced a solid year, with a total return of approximately 13.6 percent for the trailing twelve months ended June 30, 2025. Notably, most sectors contributed positively, with Financials leading gains, reflecting ongoing deposit increases and digital transformation. Conversely, the Healthcare sector faced some headwinds due to elevated interest rates, inflationary pressures, and federal spending cuts which affected affordability and demand.
Previous report
Mutual funds continue to face outflows compared to ETFs and other alternative investments, as investors seek more flexible or tactical exposure amid ongoing market volatility. The Company has four ETF products listed on the New York Stock Exchange: the U.S. Global Jets ETF (ticker JETS), which concentrates on the U.S. and international airline industry, the U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOAU), which invests in companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means, the U.S. Global Sea to Sky Cargo ETF (ticker SEA), which concentrates on the global sea shipping and air freight industries, and the U.S. Global Technology and Aerospace & Defense ETF (ticker WAR), which invests in frontier sectors including emerging technologies, electronic warfare, aerospace, and defense. The Company has one European-based ETF product listed on certain exchanges in Europe, The Travel UCITS ETF (ticker TRIP), which concentrates on the travel industry. As we look ahead, our focus remains on sustainable growth, innovation, and maintaining a vigilant approach to geopolitical and macroeconomic risks. We remain committed to navigating these complexities, positioning ourselves for resilience and long-term value creation.
Previous report
The Company generates operating revenues from managing and servicing the Funds. The Company recorded advisory and administrative services fees from USGIF totaling approximately $1.8 million and $1.6 million in fiscal 2025 and fiscal 2024, respectively. These revenues are largely dependent on the total value and composition of assets under its management. Fluctuations in the markets and investor sentiment have a direct impact on the Funds’ asset levels, thereby affecting income and results of operations. Detailed information regarding the Funds within USGIF can be found on the Company’s website, www.usfunds.com, including the prospectus and performance information for each fund. The mutual fund shareholders in USGIF are not required to give advance notice prior to redemption of shares in the Funds, and USGIF does not currently charge a redemption fee.
Previous report
Mutual fund investment advisory fees are also affected by changes in assets under management, which include:
Previous report
Cryptocurrency markets and related stocks have been, and are expected to continue to be, volatile, and may be influenced by a wide variety of factors, including speculative activity. Cryptocurrency mining companies face a variety of risks, including, but not limited to, environmental concerns, regulatory factors, and heightened risks of cybersecurity attacks for which there may be no source of recovery. There has been significant volatility in the market price of HIVE, which has impacted the investment’s value included on the Consolidated Balance Sheets, unrealized gain (loss) recognized in net investment income (loss), and unrealized gain (loss) recognized in other comprehensive income (loss).
Previous report
Total consolidated other income for the year ended June 30, 2025, was $2.7 million, compared to $2.4 million for the year ended June 30, 2024, an increase of $329,000, or 13.7 percent. The change was primarily due to the following components and factors:
Previous report
A tax expense of $72,000 was recorded for the year ended June 30, 2025, compared to $582,000 for the year ended June 30, 2024, a decrease of $510,000, or 87.6 percent. The decrease can be mainly attributed to a higher operating loss in the current year than in the prior year, partially offset by return-to-provision adjustments in the current year. See Note 12 to the Consolidated Financial Statements of this Annual Report on Form 10-K for additional disclosures on income taxes.
Previous report
The decrease in cash and cash equivalents of $2.8 million, and accordingly, net working capital, was primarily due to repurchases of common stock of $2.0 million, dividends paid of $1.2 million, purchases of corporate investments of $1.2 million, and net cash used in operating activities of $822,000, offset by proceeds from principal paydowns of $2.3 million. Consolidated shareholders’ equity at June 30, 2025, was $45.2 million, a decrease of $3.8 million, or 7.8 percent since June 30, 2024. The decrease was primarily due to repurchases of common stock of $2.0 million, dividends declared of $1.2 million, other comprehensive loss of $486,000, and a net loss of $334,000 for the year ended June 30, 2025.
Previous report
Fair Value of Financial Instruments. The financial instruments of the Company are reported on the Consolidated Balance Sheets at market or fair values or at carrying amounts that approximate fair values. The Company believes that the estimates related to fair values of financial instruments are critical accounting estimates because the assumptions used could significantly impact the unrealized gains or losses recorded in the Company’s Consolidated Financial Statements.
Reworded paragraphs (22)
Previous wording
As of June 30, 2025, total AUM was $1.3 billion compared to $1.6 billion on June 30, 2024, a decrease of $238.7 million, or 15.3 percent. During fiscal year 2025, average AUM was $1.4 billion compared to $1.9 billion in fiscal year 2024, a decrease of 23.9 percent. The decrease was primarily due to outflows from the Jets ETF. The Jets ETF invests in airline-related stocks, including global airline carriers, airport operators and aircraft manufacturers.
Current wording
As of June 30, 2026, total AUM was $1.7 billion compared to $1.3 billion on June 30, 2025, an increase of $348.3 million, or 26.3 percent. The increase in AUM was driven primarily by growth in the USGIF and ETF clients focused on the gold and natural resources sector, and Jets ETF, which invests in airline-related stocks, including global airline carriers, airport operators and aircraft manufacturers. During fiscal year 2026, average AUM was $1.5 billion compared to $1.4 billion in fiscal year 2025, an increase of 8.1 percent.
Previous wording
The Company serves as investment advisor to four U.S.-based ETF clients: U.S. Global Jets ETF (ticker JETS), U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOAU), U.S. Global Sea to Sky Cargo ETF (ticker SEA), and U.S. Global Technology and Aerospace & Defense ETF (ticker WAR). The Company receives a unitary management fee of 0.60 percent of average net assets and has agreed to bear all expenses of the U.S.-based ETFs, except the U.S. Global Sea to Sky Cargo ETF. The Company has agreed to contractually limit the expenses of the U.S. Global Sea to Sky Cargo ETF through April 2026. The Company also serves as investment advisor to one European-based ETF, The Travel UCITS ETF (ticker TRIP). The Company receives a unitary management fee of 0.69 percent of average net assets and has agreed to bear all expenses of the ETF. The Company recorded advisory fees from the ETF clients totaling $6.6 million and $9.4 million in fiscal years 2025 and 2024, respectively. Average assets in the ETFs decreased in fiscal year 2025, primarily in the Jets ETF. Information on the U.S.-based ETFs can be found at www.usglobaletfs.com, including the prospectus, performance and holdings. The ETFs’ authorized participants are not required to give advance notice prior to redemption of shares in the ETFs, and the ETFs do not charge a redemption fee. The Travel UCITS ETF is not available to U.S. investors.
Current wording
The Company receives a management fee of 0.60 percent of average net assets for the U.S.-based ETFs. The Company also serves as investment adviser to one European-based ETF, The Travel UCITS ETF ("TRIP"), which pays a unitary management fee of 0.69 percent of average net assets. TRIP is not included in the AUM rollforward table below and is not available to U.S. investors.
Previous wording
Investment base advisory fees from USGIF are calculated as a percentage of average net assets, ranging from 0.375 percent to 1.00 percent, and are paid monthly. The base advisory fees on the equity funds within USGIF were adjusted upward or downward based on performance. This performance adjustment began to be phased out during the fourth quarter of fiscal 2024 and ceased during the fourth quarter of fiscal 2025. During the phase-out period, the adjustment for the performance fee could only be adjusted downward. For the years ended June 30, 2025, and 2024, the Company adjusted its base advisory fees downward by $247,000 and $429,000, respectively. USGIF advisory fees in total, including performance adjustments, increased by approximately $230,000, or 15.8 percent, in fiscal year 2025 compared to fiscal year 2024. This was primarily a result of lower downward adjustments for performance fees.
Current wording
In fiscal year 2025, advisory fees on certain USGIF equity funds remained subject to a performance-based adjustment that could decrease fees based on investment performance. The performance adjustment began to be phased out during the fourth quarter of fiscal 2024 and was fully eliminated during the fourth quarter of fiscal 2025. During the phase-out period, the adjustment could only reduce advisory fees. As a result, advisory fees were reduced by $247,000 in fiscal year 2025. The elimination of the performance fee adjustment contributed to the increase in USGIF advisory fees during fiscal year 2026.
Previous wording
The following tables summarize the changes in assets under management for USGIF for fiscal years 2025 and 2024.
Current wording
The following tables summarize the changes in AUM for USGIF equity funds, USGIF fixed income funds and the Company's U.S.-based ETFs. The tables exclude TRIP, the Company's European-based ETF, which is not available to U.S. investors.
Previous wording
The average annualized investment management fee rate (total advisory fees, excluding performance fees, as a percentage of average assets under management) was 63 and 65 basis points in fiscal year 2025 and 2024. The average investment management fee for equity funds in fiscal year 2025 and 2024 was 76 basis points and 81 basis points, respectively. The average investment management fee for the fixed income funds was nil for both fiscal years 2025 and 2024 due to fee waivers on these funds as discussed in Note 4, Investment Management and Other Fees, to the Consolidated Financial Statements of this Annual Report on Form 10-K.
Current wording
The average annualized investment management fee rate (total advisory fees, excluding performance fees, as a percentage of average assets under management) of USGIF was 79 and 63 basis points in fiscal year 2026 and 2025. The average investment management fee for equity funds in fiscal year 2026 and 2025 was 88 basis points and 76 basis points, respectively. The average investment management fee for the fixed income funds was nil for both fiscal years 2026 and 2025 due to fee waivers on these funds as discussed in Note 4, Investment Management and Other Fees, to the Consolidated Financial Statements of this Annual Report on Form 10-K.
Previous wording
Management believes it can more effectively manage the Company’s cash position by maintaining certain types of investments utilized in cash management and continues to believe that such activities are in the best interest of the Company.
Current wording
Management believes it can more effectively manage the Company’s cash position by maintaining certain types of investments utilized in cash management and continues to believe that such activities are in the best interest of the Company. As of June 30, 2026, investments measured at fair value on a recurring basis totaled $11.7 million, representing approximately 24.4 percent of the total assets.
Previous wording
The following summarizes the cost, unrealized gain or loss, and fair value of investments carried at fair value as of June 30, 2025, and 2024.
Current wording
The following table summarizes the cost, unrealized gains (losses), and fair value of investments measured at fair value on a recurring basis as of June 30, 2026, and 2025.
Previous wording
Included in the amounts above are investments in funds advised by the Company, with fair values of $10.6 million at June 30, 2025, and $10.5 million at June 30, 2024.
Current wording
Included in the amounts presented above are investments in funds advised by the Company, with fair values of $9.7 million and $10.6 million at June 30, 2026, and 2025, respectively.
Previous wording
Investment income can be volatile and may vary depending on market fluctuations, the Company’s ability to participate in investment opportunities, and timing of transactions. A significant portion of the unrealized gains and losses is concentrated in a small number of issuers. For fiscal year 2025, the Company had net investment income of $2.4 million, compared to $2.1 million for fiscal year 2024. Due to market volatility, the Company expects that gains or losses will continue to fluctuate in the future.
Current wording
Investment income can be volatile and may vary depending on market fluctuations, the Company’s ability to participate in investment opportunities, and timing of transactions. For fiscal year 2026, the Company had net investment income of $4.1 million, compared to $2.4 million for fiscal year 2025. Due to market volatility, the Company expects that gains or losses will continue to fluctuate in the future.
Previous wording
A portion of the securities recorded at fair value in the above table is in investments in HIVE Digital Technologies Ltd. (“HIVE”), which were convertible debentures and common shares valued at $1.6 million at June 30, 2025, and convertible debentures valued at $4.4 million at June 30, 2024. The investments in HIVE are discussed in more detail in Note 3, Investments, to the Consolidated Financial Statements of this Annual Report on Form 10-K. HIVE is a company that is headquartered in the United States with cryptocurrency mining facilities in Paraguay, Sweden, and Canada. Frank Holmes, CEO, is the executive chairman of HIVE.
Current wording
Included in the securities recorded at fair value in the table above are investments in HIVE Digital Technologies Ltd. (“HIVE”), consisting of common shares valued at $55,000, and $27,000 as of June 30, 2026, and 2025, respectively, and convertible debentures with a fair value of $1.6 million as of June 30, 2025. The investments in HIVE are discussed in more detail in Note 3, Investments, to the Consolidated Financial Statements of this Annual Report on Form 10-K. Frank Holmes, CEO, is the executive chairman of HIVE.
Previous wording
In addition to the investments above, as of June 30, 2025, and 2024, the Company owned other investments of approximately $1.3 million and $1.7 million, respectively, classified as securities without readily determinable fair values.
Current wording
In addition to the securities at fair value presented above, as of June 30, 2026, and 2025, the Company owned other investments of approximately $4.7 million and $1.3 million, respectively, classified as securities without readily determinable fair values and held-to-maturity debt investments, net of allowance for credit losses, of $972,000 and $948,000, respectively.
Previous wording
The Company had a net loss, as shown in the Consolidated Statements of Operations, of $334,000 ($ (0.03) per share) for the year ended June 30, 2025, compared with net income of $1.3 million ($ 0.09 per share) for the year ended June 30, 2024, a change of approximately $1.7 million. The change is primarily due to lower operating revenues, partially offset by higher net investment income and lower tax expenses, as discussed further below.
Current wording
The Company had net income, as shown in the Consolidated Statements of Operations, of $3.1 million, or $ 0.24 per share, for the year ended June 30, 2026, compared with a net loss of $334,000, or $ (0.03) per share, for the year ended June 30, 2025, a change of approximately $3.4 million. The change is primarily due to higher operating revenues and net investment income, partially offset by higher tax expenses, as discussed further below.
Previous wording
Total consolidated operating revenues for the year ended June 30, 2025, decreased $2.5 million, or 23.1 percent, compared with the year ended June 30, 2024. This decrease was primarily attributable to the following:
Current wording
Total consolidated operating revenues for the year ended June 30, 2026, increased $1.8 million, or 21.3 percent, compared to the year ended June 30, 2025. The increase was primarily attributable to higher advisory fees from the funds focused on the gold and natural resources sector.
Previous wording
**Advisory Fees.**Advisory fees, the largest component of the Company’s operating revenues, are derived from two sources: ETF advisory fees and USGIF advisory fees. In fiscal year 2025, the ETF advisory fees accounted for 78.6 percent of the Company’s operating revenues, and the USGIF advisory fees accounted for 19.9 percent of the Company’s operating revenues.
Current wording
**Advisory Fees.**Advisory fees, the largest component of the Company’s operating revenues, are derived from two sources: ETF advisory fees and USGIF advisory fees. In fiscal year 2026, the ETF advisory fees accounted for 60.4 percent of the Company’s operating revenues, and the USGIF advisory fees accounted for 37.5 percent of the Company’s operating revenues.
Previous wording
The Company serves as investment advisor to four U.S.-based ETF clients: U.S. Global Jets ETF (ticker JETS), U.S. Global GO GOLD and Precious Metal Miners ETF (ticker GOAU), U.S. Global Sea to Sky Cargo ETF (ticker SEA), and U.S. Global Technology and Aerospace & Defense ETF (ticker WAR). The Company receives a unitary management fee of 0.60 percent of average net assets and has agreed to bear all expenses of the U.S.-based ETFs, except the U.S. Global Sea to Sky Cargo ETF. The Company has agreed to contractually limit the expenses of the U.S. Global Sea to Sky Cargo ETF through April 2026. The Company also serves as investment advisor to one European-based ETF, The Travel UCITS ETF (ticker TRIP). The Company receives a unitary management fee of 0.69 percent of average net assets and has agreed to bear all expenses of the ETF. The Company recorded advisory fees from the ETF clients of $6.6 million and $9.4 million in fiscal years 2025 and 2024, respectively.
Current wording
The Company serves as investment advisor to four U.S.-based ETF clients. The Company receives a management fee of 0.60 percent of average net assets and has agreed to bear all expenses of the U.S.-based ETFs, except the U.S. Global Sea to Sky Cargo ETF, for which the Company has contractually agreed to limit expenses through April 2027. The Company also serves as investment advisor to one European-based ETF, for which it receives a unitary management fee of 0.69 percent of average net assets and has agreed to bear all expenses. The Company recorded advisory fees from the ETF clients of $6.2 million and $6.6 million in fiscal years 2026 and 2025, respectively.
Previous wording
Investment base advisory fees from USGIF are calculated as a percentage of average net assets, ranging from 0.375 percent to 1.00 percent, and are paid monthly. The base advisory fees on the equity funds within USGIF were adjusted upward or downward based on performance. This performance adjustment began to be phased out during the fourth quarter of fiscal 2024 and ceased during the fourth quarter of fiscal 2025. During the phase-out period, the adjustment for the performance fee could only be adjusted downward. For the years ended June 30, 2025, and 2024, the Company adjusted its base advisory fees downward by $247,000 and $429,000, respectively. USGIF advisory fees in total, including performance adjustments, decreased by approximately $230,000, or 15.8 percent, in fiscal year 2025 compared to fiscal year 2024.
Current wording
Investment base advisory fees from USGIF are calculated as a percentage of average net assets, ranging from 0.375 percent to 1.00 percent, and are paid monthly. The Company has contractually agreed to limit fund expenses through April 2027, except for the U.S. Government Securities Ultra Short Bond Fund, for which fee waivers and expense reimbursements are voluntary and may be discontinued at the Company's discretion. The base advisory fees on the equity funds within USGIF were adjusted upward or downward based on performance. This performance adjustment began to be phased out during the fourth quarter of fiscal 2024 and ceased during the fourth quarter of fiscal 2025. During the phase-out period, the adjustment for the performance fee could only be adjusted downward. For the year ended June 30, 2025, the Company adjusted its base advisory fees downward by $247,000. USGIF advisory fees in total, including performance adjustments, increased by approximately $2.2 million, or 128.2 percent, in fiscal year 2026 compared to fiscal year 2025.
Previous wording
Total consolidated operating expenses decreased $26,000, or 0.2 percent, compared with the previous fiscal year, as shown below.
Current wording
Total consolidated operating expenses decreased $584,000, or 5.1 percent, compared with the previous fiscal year, as shown below.
Previous wording
At June 30, 2025, the Company had net working capital (current assets minus current liabilities) of approximately $37.2 million 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 and $12.2 million in securities carried at fair value, excluding convertible securities, which together comprise approximately 76.4 percent of total assets, the Company has adequate liquidity to meet its current obligations. Total shareholders’ equity was approximately $45.2 million.
Current wording
At June 30, 2026, the Company had net working capital (current assets minus current liabilities) of approximately $35.7 million and a current ratio (current assets divided by current liabilities) of 19.7 to 1. With approximately $24.3 million in cash and cash equivalents and $11.7 million in securities carried at fair value, which together represented approximately 75.1 percent of total assets, the Company believes it has adequate liquidity to meet its current obligations. Total shareholders’ equity was approximately $45.1 million.
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. The stock repurchase plan is approved through December 31, 2025, but may be suspended or discontinued. Cash and securities recorded at fair value, excluding convertible securities, of approximately $36.7 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. The stock repurchase plan is approved through December 31, 2026, but may be suspended or discontinued. Cash and securities recorded at fair value of approximately $36.1 million are available to fund current activities.
Previous wording
As of June 30, 2025, the Board of Directors has authorized a monthly dividend of $0.0075 per share from July 2025 through September 2025. The total amount of cash dividends to be paid to class A and class C shareholders from July 2025 to September 2025 will be approximately $296,000, which is included as dividends payable in the Consolidated Balance Sheets at June 30, 2025. Payment of cash dividends is within the discretion of the Company’s Board of Directors and is dependent on earnings, operations, capital requirements, general financial condition of the Company, and general business conditions.
Current wording
As of June 30, 2026, the Board of Directors has authorized a monthly dividend of $0.0075 per share from July 2026 through September 2026. The total amount of cash dividends to be paid to class A and class C shareholders from July 2026 to September 2026 will be approximately $279,000, which is included as dividends payable in the Consolidated Balance Sheets at June 30, 2026. Payment of cash dividends is within the discretion of the Company’s Board of Directors and is dependent on earnings, operations, capital requirements, general financial condition of the Company, and general business conditions.
Previous wording
Contractual obligations primarily consist of agreements for services used in daily operations and for marketing and distribution. As of June 30, 2025, the Company had contractual obligations of $1.1 million for the fiscal years ending June 30, 2026, through 2030. Other contractual obligations consist of agreements to waive or reduce fees and/or pay expenses on certain funds. Future obligations under these agreements are dependent upon future levels of fund assets.
Current wording
Contractual obligations primarily consist of agreements for services used in daily operations and for marketing and distribution. As of June 30, 2026, the Company had contractual obligations of $755,000 for the fiscal years ending June 30, 2027, through 2030. Other contractual obligations consist of agreements to waive or reduce fees and/or pay expenses on certain funds. Future obligations under these agreements are dependent upon future levels of fund assets.
Previous wording
**Allowance for Credit Losses.**The Company’s allowance for credit losses requires significant judgment in estimating lifetime expected losses under the Current Expected Credit Losses (“CECL”) model, adopted on July 1, 2023. Management’s estimate incorporates historical experience, current conditions, and reasonable forecasts of future economic performance. Because these assumptions involve inherent uncertainty, changes in issuer performance or macroeconomic factors could cause actual losses to differ materially from current estimates. Adjustments to the allowance may therefore have a significant impact on the Company’s results of operations and financial condition.
Current wording
**Allowance for Credit Losses.**The Company’s allowance for credit losses requires significant judgment in estimating lifetime expected losses under the Current Expected Credit Losses (“CECL”) model, adopted on July 1, 2023. Management’s estimate incorporates historical experience, current conditions, and reasonable forecasts of future economic performance. Because these assumptions involve inherent uncertainty, changes in issuer performance or macroeconomic factors could cause actual losses to differ materially from current estimates. Adjustments to the allowance may impact the Company’s results of operations and financial condition.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Investment advisory fees from USGIF are generally calculated as a percentage of average net assets, ranging from 0.375 percent to 1.00 percent, and are paid monthly. The Company also serves as investment advisor to four U.S.-based ETF clients.
Current report — wording carried from elsewhere
The Company has agreed to bear all expenses of the U.S.-based ETFs, except the U.S. Global Sea to Sky Cargo ETF. The Company has agreed to contractually limit the expenses of the U.S. Global Sea to Sky Cargo ETF through April 2027. The Company has also agreed to bear all expenses of TRIP.