Quick Verdict
Global Investors reported fiscal 2026 EPS of $0.24 and operating revenue of $10.3 million, with net income rebounding to $3.1 million from a prior-year loss. The U.S. Global Investors FY2026 Earnings reflected GROW’s reported quarterly EPS was negative, while full-year profitability and AUM improved; stock movement after the announcement was volatile, with shares down 8.87% on September 4.
About U.S. Global Investors
U.S. Global Investors, Inc. (NASDAQ: GROW) is a San Antonio, Texas-based registered investment adviser that manages mutual funds and ETFs with thematic exposure to areas including gold and precious metals, natural resources, airlines, global shipping, aerospace and defense, artificial intelligence, and digital assets. The firm’s roots go back more than 50 years; it became a registered investment adviser in 1968, according to management. Frank Holmes serves as Chief Executive Officer and Chief Investment Officer.
At the time of the fiscal-year release, GROW was a micro-cap company with a market capitalization of approximately $37.0 million. Its forward annual dividend rate was $0.09 per share, equivalent to an indicated yield of about 3.0%, and reported valuation references placed its trailing P/E near 12x following the return to profitability. The company has paid a monthly dividend since 2007 and complements this with an ongoing share-repurchase program.
The fiscal 2026 result was driven primarily by stronger advisory revenue as assets under management increased in the company’s gold and natural-resources investment products, alongside higher investment-related income.
Top Financial Highlights
- Total operating revenue increased 21% year over year to $10.3 million, from roughly $8.5 million in fiscal 2025.
- Net income was $3.1 million, compared with a net loss of $334,000 in fiscal 2025.
- Basic and diluted EPS improved to $0.24, versus a loss per share of $0.03 a year earlier.
- The company recorded an operating loss of $603,000, a favorable year-over-year improvement of approximately $2.4 million.
- Operating expenses were $10.9 million, down approximately 5% from fiscal 2025.
- Operating margin remained negative at approximately -5.9%, calculated from the $603,000 operating loss against $10.3 million in operating revenue.
- Other income rose to $4.5 million, from $2.7 million in the prior year, mainly due to higher unrealized investment gains.
- Average assets under management were $1.53 billion for fiscal 2026.
- Higher AUM in gold and natural-resource strategies was identified as the principal contributor to revenue growth.
- The firm repurchased 733,848 Class A shares for about $2.0 million during fiscal 2026. Management said outstanding shares have declined about 20% since before the COVID-19 period.
- Net working capital stood at $35.7 million, while the current ratio was a notably high 19.7:1 at fiscal year-end.
- Management reported a net book value of $45.1 million.
- The company maintained a monthly dividend of $0.0075 per share for the July–September 2026 period, equating to an annualized rate of $0.09 per share
- U.S. Global Investors reported a fiscal-year shareholder yield of approximately 7.9%, a non-GAAP-style measure incorporating dividends, share repurchases, and debt reduction relative to market value.
Beat or Miss?
Because the announcement covered the full fiscal year rather than a conventional quarter, the most relevant reported measures are annual operating revenue, net income, and EPS. Available market-data sources did not show a published analyst consensus for the full fiscal-year figures.
| Metric | Reported | Difference/Analysis |
| Fiscal 2026 operating revenue | $10.3 million | Up 21% year over year; no consensus estimate identified. |
| Fiscal 2026 net income | $3.1 million | Reversed a $334,000 loss in fiscal 2025. |
| Fiscal 2026 EPS | $0.24 | Improved from a $(0.03) loss per share; no consensus estimate identified. |
| Fiscal 2026 operating expenses | $10.9 million | Down 5% year over year, improving the operating-loss profile. |
| Fiscal 2026 operating loss | $(0.6) million | Improved by about $2.4 million versus fiscal 2025. |
| Q4 FY2026 revenue | $2.73 million | Market-data service reported no consensus estimate. |
| Q4 FY2026 EPS | ($0.03) | Market-data service reported no consensus estimate. |
The full-year report represents a fundamental improvement, but it is important to distinguish operating performance from total profitability. The advisory business still posted an operating loss; the overall $3.1 million net profit benefited significantly from investment-related income, including unrealized gains.
What Leadership Is Saying
CEO and CIO Frank Holmes emphasized thematic product development, investor education, and a capital-return approach based on monthly dividends and opportunistic repurchases:
“We believe that it is create thematic products that are sustainable using our Smart Beta 2.0 strategy, which requires rigorous backtesting of over thousands of hours before you launch a product.” — Frank Holmes, CEO and Chief Investment Officer
Holmes also reiterated management’s view that the company’s stock is undervalued and that repurchases are an important component of shareholder returns:
“Our strategy also, as a public company, because we believe that we are deeply undervalued, that we buy back the stock using an algorithm on flat and down days.”
— Frank Holmes, CEO and Chief Investment Officer
CFO Lisa Callicotte linked revenue growth principally to higher client assets in gold and natural-resources strategies, while noting the larger contribution from investment income to bottom-line profitability:
“Our average assets under management were $1.53 billion for the year, and our operating revenues were $10.3 million, and we had a net income of $3.1 million or $0.24 per share.” — Lisa Callicotte, CFO
“Other income for the year ended June 30th, 2026 was $4.5 million compared to $2.7 million in the prior year, an increase of approximately $1.8 million mainly due to higher unrealized gains in investments.” — Lisa Callicotte, CFO
Historical Performance
| Category | FY2026 | FY2025 | Change (%) |
| Operating revenue | $10.3 million | $8.5 million | 21% |
| Net income/(loss) | $3.1 million | $(0.3) million | Returned to profit |
| EPS | $0.24 | ($0.03) | Returned to profit |
| Operating expenses | $10.9 million | Approximately $11.5 million | -5% |
| Operating income/(loss) | $(0.6) million | Approximately $(3.0) million | Improved by approximately $2.4 million |
| Other income | $4.5 million | $2.7 million | Approximately +67% |
| Average AUM | $1.53 billion | Not specified in the fiscal-year release | N/A |
The central operating narrative is favorable: revenue grew while expenses declined. However, the company did not yet generate positive operating income during fiscal 2026. The move from a net loss to $3.1 million in net income was aided by a substantial increase in other income from investments, making earnings sensitive to market conditions and portfolio valuation changes.
Gold and Natural Resources Drove Revenue Growth
(Source: markets.businessinsider.com)
Gold reached a record high of nearly $5,600 per ounce in late January before giving back part of those gains by the end of the fiscal year, according to Frank Holmes, the Company’s CEO and Chief Investment Officer. He noted that gold mining companies delivered stronger performance during the year because gold prices increased faster than production costs, which supported higher profitability.
He also highlighted that many miners are retaining more cash rather than using it for poorly timed acquisitions, marking a more disciplined approach compared with previous market cycles.
Competitor Comparison
A direct competitor comparison is not available from the company’s announcement because U.S. Global Investors did not identify a peer group, and comparable fiscal-year results for other niche asset managers were not included. In addition, GROW is an unusually small, thematic asset manager, making peer selection highly dependent on whether the comparison emphasizes ETF sponsors, boutique active managers, or publicly traded asset-management firms.
| Category | U.S. Global Investors FY2026 | U.S. Global Investors FY2025 | Change (%) |
| Operating revenue | $10.3 million | $8.5 million | 21% |
| Net income/(loss) | $3.1 million | $(0.3) million | Returned to profit |
| Operating expenses | $10.9 million | Approximately $11.5 million | -5% |
For a meaningful competitor table, a report should benchmark GROW against similarly sized publicly traded boutique asset managers or ETF-focused firms, then normalize for AUM, fee mix, investment performance, and investment-gain exposure. The company’s own results are especially influenced by flows and performance in gold, natural resources, airline, defense, shipping, and related thematic funds.
How the Market Reacted?
The fiscal-year report was fundamentally positive: operating revenue grew 21%, AUM increased, expenses declined, and the company returned to profitability after a fiscal 2025 loss. However, the shares remained volatile. MarketBeat showed GROW at $2.98, down $0.29 or 8.87%, as of the September 4, 2026 close, immediately following the earnings release and webcast period.
That market reaction should be interpreted cautiously. The company is a small-cap asset manager whose operating results and stock performance are highly exposed to movements in specialized asset classes, particularly gold-related equities, airline-sector funds, defense themes, and investment-portfolio gains. The lack of formal forward guidance and the continued operating loss likely leave investors focused on whether higher AUM can translate into sustained advisory-fee profitability rather than one-year gains in other income
