Q3 2025 U.S. Global Investors Inc Earnings Call
And you can see on slide number two.
The presenters for today's program are Frank Holmes.
Holly Schoenfeldt: U S Global Investors', CEO, and Chief Investment Officer, Lisa Callicott, Chief Financial Officer, and myself, Holly Schoenfeldt director of marketing.
Holly Schoenfeldt: On to slide number three during this webcast. We may make forward looking statements about our relative business outlook any forward looking statements and all other statements made during this webcast that don't pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press.
Holly Schoenfeldt: Release, and corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward looking statements any such statements are made as of today and U S. Global investors accepts no obligation to update them in the future alright.
Holly Schoenfeldt: Alright, let's move onto slide number four as always we appreciate our loyal shareholders, if you'd like one of our signature U S. G. I had featured here on this slide simply email us at info at <unk> Dot com with your mailing address and we would be more than happy to single a little U S. Gi swag.
Speaker Change: Or wait.
Speaker Change: Moving onto the next slide I will briefly review the company for any one new here U.
Speaker Change: U S. Global investors is an innovative investment manager with vast experience in global markets and specialized sectors. We use a quantum mental strategy to create the matic smart beta two <unk> products the.
Speaker Change: The company was originally founded as an investment club, becoming a registered investment adviser and 1968 and has a longstanding history of global investing and launching first of their kind investment products, including the first no load Gold fund finally, we are experts in the medic investing in.
Speaker Change: <unk> Goldman precious metals natural resources Airlines and luxury goods all using a quantum mental approach that includes both macro and micro factors, let's move on to the next slide.
Speaker Change: This is a graphic we often start all of our presentations with titled the DNA of volatility.
Speaker Change: Serves as a helpful reminder, for investors that market fluctuations are a natural part of asset behavior over time.
Natural Part of Asset Behaviour Over Time
Holly Schoenfeldt: At this point, I do want to hand things over to our CEO and CIO, Frank Holmes, who can dive deeper into the macro overview of the past quarter. Frank, over to you. Thank you, Holly, and thank you for all of our oil investors during a challenging time in this.
Realm of Capital Markets.
Holly Schoenfeldt: which is so different than in the crypto world. And I'm going to give you some more color on that in the presentation. But let's just talk about now this DNA of volatility.
What's important here is that-
Holly Schoenfeldt: 70% of the time, approximately, is a non-abent for gold and the S&P to go up or down 1% and over 10 days plus or minus 3%. We update this data because if we go back to prior 2008, the volatility daily of gold was greater than the S&P.
and Tanger's even much more so.
Speaker Change: So, we also found that Grows, Volatility, was much more with Gold Stocks.
and that volatility was using three to one.
Speaker Change: But capital markets change over time. And ETFs and arbitrage between shorts and shorting individual names going along with ETF. All of us, these are arbitraising out information ball changes
Speaker Change: But what I want to point out here is that our volatility of growth is pretty well with the S&P 500 and bullion is.
Speaker Change: It's less than the Dow Jones, U.S. Osset Managers Index over 10 days.
Speaker Change: and I found that most interesting, why that's evolved this way, because I went back a few years ago, when stock ran up to $12, a lot of it was in 2021, was Bitcoin being early adopters into the Bitcoin ecosystem by the co-founding the creation of high digital and high DNA volatility back then was
plus or minus, like, 7%.
Speaker Change: and so our big holding we were moving now with whatever Bitcoin was doing in the capital mining space but that's change and so that's why it's important that when you look at holdings and what we're doing and what our volatility is and how it relates to the underlying assets in our investments.
Speaker Change: What's most interesting, and it's not sure this time, is strategy, Michael Sailor's ETF.
Speaker Change: Basically, it's become this is stock, but that stock is also a single purpose and the cover writing against it for the income plus all the converts he's done. Where they go bore from the ETF to go short the stock to do the convertible. There's just so much trading around that name and that volatility is actually greater than what the Bitcoin is. [inaudible]
Speaker Change: I want to thank the shareholders like I've mentioned earlier, but and especially long term shareholders.
<unk> capital and recently Gator Capital Management next please.
Speaker Change: I own approximately 19% of the company.
Speaker Change: And approximately 99% of the voting control that voting control is all has to do with rules of SEC 40 Act investment advisor rules.
Speaker Change: So that they still have to have independent directors, which I have.
Speaker Change: Four of the company being public and listed on NASDAQ.
Speaker Change: Next please.
Speaker Change: Strategy and tactics, most important strategy and can we execute on it while it create dramatic products that are sustainable using a smart beta two point requires rigorous back testing for thousands of hours and.
Speaker Change: His proven itself with the jets in particular that we went to beat the New York Stock Exchange Global airline index, which we've done after fees and that discipline is basically to rebalance your portfolio every quarter and recalibrate looking for.
Speaker Change: <unk> unique business model or you're looking for about 60% seems to be the 70% focus on factors that our momentum.
Speaker Change: Who's got the fastest growth in revenue out of a universal stocks and who has the fastest growth in EBITDA and cash flow.
Speaker Change: And then you want to look at the remaining part.
Speaker Change: The GARP investors deep value discount and usually thats, a high free cash flow yield.
Speaker Change: A debt to equity ratio of less than.
Speaker Change: Industry, So thats, what we do and we're happy to see that it's been working now for our funds.
It's interesting way, we know that the world itself is high frequency. The it's an arbitrage of information on average is less than three days.
Speaker Change: So holding something for three quarters is next to impossible for three months is also.
Speaker Change: When you're a mutual fund and ETF.
Speaker Change: Even if your active you can you.
Speaker Change: Youll get criticized for having that high frequency volume trading in transactions et cetera. So.
Speaker Change: For me it was trying to figure out something that was quant base that had a macro overlay and also a bottom up stock picking factors and that also recalibrated. So I'm happy to share with you.
Speaker Change: It works and we're going to continue to expand and grow with us.
Speaker Change: Because our mission is to make people feel happy financially secure that when they buy one of our products. They can manage their expectations to deliver something that what they thought it would deliver.
Speaker Change: And we are trying to create a product that is unique and special.
<unk> that we think has long term growth toward strategic buyback of stock as we continue to do that flattened down days managed to preserve cash for future growth opportunities or market corrections.
Speaker Change: Merger M&A activity to acquire funds grow our subscriber base and followers.
Speaker Change: Now, we're going to start increasing our exposure back to the bitcoin ecosystem, we had a unique convertible debenture with hive and thats slowly being paid down the 8% coupon is going away and we want to deploy the remaining capital back into.
Speaker Change: Bitcoin.
Speaker Change: And also to back into high because we believe the high end.
Speaker Change: <unk> has a very unique.
Speaker Change: Growth opportunity, which has been very public about and that has been the four times increase in bitcoin production. This year. So we think that it's deeply undervalued.
Speaker Change: And we remain very bullish about bitcoin next please.
So for the long term you can see here.
Speaker Change: Outperformed.
Speaker Change: The Russell.
Speaker Change: Microcap index.
Speaker Change: So we're happy with that and but we would be happier if we had stronger growth in the short term and that's predominantly because the apathy in the discouragement of of the industry.
Speaker Change: And the great worry that we kept listening to both the airline industry and we experienced just being redeemed and we were scratching our head because you've got some some of the airlines, we own like United was up 130% last year and they continue to do well the airline industry.
Speaker Change: We just so surprised the negative narrative that comes out of Wall Street.
Speaker Change: It's a cyclical business and I'm going to share with you. It's not if you want to go and get more granularity go to our presentations that airline industry used to have a high season low season pricing same with hotels is now high season and very high season.
Speaker Change: It is still very expensive.
Speaker Change: And what's happening with AI is not just for Las Vegas, they are using it for they're using for managing flights and managing that.
Speaker Change: Luxury goods manage the supply and I think that this industry has tremendous pricing power and the psychology of society due to Covid is more pent up to want to travel.
Speaker Change: And this has really become evident in Europe.
Speaker Change: The influx of people want to go to museums and parks that cities like Venice, and Barcelona are charging a fee and the cities are becoming like thematic parks like going to Disney World to go visit and you have to pay $100 they get in.
Speaker Change: If you want the family luxury pockets use even more.
Speaker Change: It's very expensive and so what the merits of Barcelona, Venice, I've said that they need this tax and it's to repair the roads and there's just so much traffic and interesting there's a park.
Speaker Change: Barcelona, the goatee had design the famous.
Speaker Change: Architected and its architecture.
And.
Speaker Change: Is so unique and special and this park overseas Barcelona was always free.
Speaker Change: Today, it's like 20 euros.
Speaker Change: And you have to book online.
Speaker Change: Hey.
Speaker Change: Now become a Disney Park and the locals are able with a special pass et cetera, They never have to pay because that's where they stayed especially during COVID-19, but anyone else wants to see it.
Speaker Change: To repair the pocket because the tourism is so big it's recognizing that this tourism is not going away next please so I believe the airlines industry will go from being characterized as a cyclical business to more of a growth business.
Speaker Change: And I have been early on these things before.
Speaker Change: Like we were on Bitcoin, we couldnt launch of Bitcoin ETF in 2017, So we ceded and co founded the first crypto mining company to go public called Hive.
Speaker Change: So this is a.
Speaker Change: The journey of Jets led us to over to England to get listed and then the opportunity was the case something that on a broader universe in travel that was trip.
Speaker Change: And so we merged our our jets ETF with another group that wanted to get out of the business and and we're very happy with this and it's also the first active ETF to be on the London stock exchange, it's very much like Jets is very smart beta 2.0.
Speaker Change: Even though it's called octave and it has a broader number of names because it includes the industries of cruise lines and hotels, whereas the jeffs product. That's listed on the New York Stock Exchange in Mexico City, and Bogota, and Lima that product is very much more focused around the <unk>.
Speaker Change: Lines themselves in airlines and airports and airline manufacturers next please.
Speaker Change: So I mentioned earlier initiatives our strategy to increase as the investments we have several million dollars coming back from hive used to be much higher so we want to refocus.
Speaker Change: On the bitcoin ecosystem for as many.
Speaker Change: Factors such as it will become a regulated industry there'll be regulations coming out of the administration is pro bitcoin. So I think that it's a much more safer.
Speaker Change: Process to go down.
Speaker Change: A channel that banks now allowed to own bitcoin.
Speaker Change: Things are really changing rapidly under president Trump and the regime. So I think it's very positive for the crypto industry.
Speaker Change: And so we plan to increase our exposure.
Speaker Change: Dollar cost program for.
Speaker Change: Bitcoin.
Speaker Change: Etfs Bitcoin and invest in highest shares next please.
Speaker Change: Where ETF looks positioned to benefit amid rising geopolitical risks.
Speaker Change: It relates to our latest ETF called war is the AI application to two buildup against cyber security attacks and military it's really the spread up China.
Speaker Change: We're very happy because we create this model it outperforms all the other.
Speaker Change: Security type of.
Speaker Change: Defense Etfs before we launched the product with extensive testing and in year to date, it's held its ground, it's not down whereas the overall market.
Speaker Change: Has really taken it on the chin and expanded its volatility ever since the president Trump's started going after countries on a creating a tariff war.
Speaker Change: <unk>.
Speaker Change: Golar Darling, we used a tradeoff of gold stocks. The correlation was so high and I want to try to point out that this century.
Speaker Change: You can see that the.
Speaker Change: Annual average gold price has been up 84% of the time, it's outperformed the S&P 500, it just shocks people when they they just like they don't want to believe how great of an asset class. This has been and it's only going to get better as.
Speaker Change: As we go forward for several reasons, but here's what's important is that the modern monetary theory.
Speaker Change: Is a mechanism just printing money and since I've really start to grasp with politicians and government agencies around the beginning of this century, we've seen gold do phenomenally well.
Speaker Change: We can see that we see 911 trigger.
Speaker Change: Triggered gold rising, but we'd also triggered.
Speaker Change: In military spending.
Speaker Change: And then with Russia going into <unk>, and then going back and then showing that theyre not going to change and invading Ukraine, that's had a significant impact.
Speaker Change: On gold as an asset class and central banks, becoming skittish and paper money the way the printing paper money has exploded we look today at the G 20 countries and we're going to take a look at India, and China, who are collectively 40% of the world's population.
Speaker Change: Their money supply <unk> has jumped almost up to 10% growth so that only bodes well for gold.
Speaker Change: And I think we're going to continue to see that the central banks are buying.
Speaker Change: It's also going through under Basel, III, which is the international banking regulations for the Big money Center banks, but physical gold is going to all of a sudden be treated as tier one which is called high quality liquid asset, meaning it could be counted as full market value alongside with government.
Speaker Change: <unk> and cash when calculating the bank's liquidity coverage ratio. This became something that was very significant.
Speaker Change: In 2008 banking crisis and gold as we've seen it really this ideal raises the status from a risky commodity to a safe liquid asset, making them more attractive for banks to hold or when I first moved to taxes in 2009.
Speaker Change: 19.
Speaker Change: 1990.
Speaker Change: It was nothing but negative for golar, but it was known for gold funds and we had great Gold fund performance when gold was up that year. It was always deal with his goals of high risk commodity it's bad.
Speaker Change: It's now we're early and I would say to share with you 35 years early on that's our journey, where I really think that gold is the 10% Golden rule is going to grasp with investors and institutions and now with the banks be encouraged it also impacts Basel III and emphasis.
Physical gold not gold Etfs.
Speaker Change: Saw this first sort of Germany that you've got tax differently. If you had physical gold versus if you had a gold ETF and so they really want people to have an enhanced physical coal. So this idea really legitimizes gold's roles of financial Safe Haven.
Speaker Change: And I think that we're going to see gold like I mentioned, a couple of years ago go to 4000, while its almost there I think it goes to 6000 by the end of trumps.
Speaker Change: Presidency.
Speaker Change: <unk>.
Speaker Change: So gold mining stocks are outpacing the physical and it's really odd it's happening, but nothing like it used to happen before.
Speaker Change: Used to get those two to one run with gold stocks, taking off when gold is taking off and there seems to be like we're seeing in the airlines one of the big parts. The biggest cost the airlines have this falling oil prices well that was a big thing we wrote about talked about last year and the airlines were up much more than the S&P 500.
Speaker Change: And those falling oil prices, while oil prices fell again this quarter. So therefore, the more profitable, but theres that apathy apathy towards the airline industry, even though all the.
Speaker Change: Lakeshore Park and.
Speaker Change: And that's just a psychology.
Speaker Change: I don't know directly and honestly with all respect this annoying and frustrating because we're picking good quality stocks and the same thing now it comes to the gold stocks, but you can see in particular in the first quarter that the gold mining stocks are on a tear next please.
Well a lot of this stuff happens with them that they would like to say that 50 day moving average and what.
Speaker Change: We saw is a Gulf source trading so all time, new high when Trump first one after Mexico and Canada around.
Speaker Change: Valentine's day.
Speaker Change: And that first move all of a sudden you start seeing gold rise.
Speaker Change: Above its 50 day moving average.
Speaker Change: And then we saw gold.
Speaker Change: Go through another big change was the Liberation day.
Speaker Change: Where it's slightly sold off and then boom. It just charged up to all time highs.
Speaker Change: So having a 10% weighting in gold is just prudent and is shown up for the decade, it's shown up for this century.
Speaker Change: And as shown in this quarter. This year, so we think that.
Speaker Change: With Basel III as a backdrop institutions that we're going to get a greater interest in gold at our Gulf funds, while all of a sudden start to get a different flow next please.
Speaker Change: This is just to give you an idea how.
Speaker Change: Bearish people are.
Speaker Change: Gold stocks conundrum.
Speaker Change: We're seeing the largest gold equity Etfs.
Speaker Change: <unk> gold miners, it's got redemptions, even though the price of gold is going up even though the price of gold is making all time highs.
Why would you be doing this and so it doesn't make sense, but people are happy you're seeing gold stocks make at all time high but theyre going to redeem because no one believes.
Speaker Change: It's I've never seen such as gold.
Speaker Change: It's also the airlines next please.
Speaker Change: Another visual showing you that gold is rising but redemptions are rising and it is it's very weird, we're not experiencing that with our <unk> is pretty well flat.
Speaker Change: During this time period, but in talking to.
Speaker Change: So the owner of.
Speaker Change: Gtx and CTX, Jay was commenting that a lot of hedge funds were short periods gold games and there were long of ETF as appears trade and as gold stocks, continuing Aurora and they are off site to start covering so thats why they think the redemptions coming from that but I think it's a lot of just apathy towards the stock.
Speaker Change: Market next please.
So.
Speaker Change: Gold mining stocks are trading a multiyear high well, but the strange isn't it.
Speaker Change: It goes 3500 and really they are trading at the same level than they were 500. So these stocks are just charging with free cash flow high free cash flow something they've never had but I've been writing the past two years, it's been slowly rising that the universe of almost 90 gold producers, we follow around the world that.
Speaker Change: So there was 70 of them were had free cash flow yields and made them a high free cash flow yields higher than the overall S&P 500.
Speaker Change: And so now these numbers are coming up for this past quarter theyre going to be just massive in the quarter. We're in right now.
Speaker Change: To have back to back huge.
Speaker Change: Both in revenue and cash flow on an.
Speaker Change: Earnings next please.
Speaker Change: This is a simple ratio taken the New York Arca Gold miners index by the S&P 500, and then it's always been recommended that you have a weighting in this sector in the.
Speaker Change: When you look at the Etfs.
Speaker Change: They used to have at one time, but something like 6% was waiting.
Speaker Change: And it fell down to a half a percent and really.
Start to much higher but it's so deeply undervalued relative to the overall S&P 500, So I remain very bullish about the future for our products and and just weathering through this storm of apathy due to the tariff.
Speaker Change: The model is taking place.
Speaker Change: Next please.
Speaker Change: I love IBD because of their cancer model.
Speaker Change: That is very agnostic towards industries, but they capture industry themes when they start to take off and what's really important for me for you to share with you is in 2003, we had the same thing where the gold stocks were taking off the only difference was back then we would get some days $50 million coming into our gold funds, that's not happening today.
Speaker Change: And it's not going into <unk>. So there is something thats very weird, but they are showing up where they have growth in momentum in their revenue and their earnings and it's been picked up by IBD and their stock prices of these names. So now we have something like 20% of the <unk>.
Speaker Change: 50 names that gets updated every week, our gold stocks and we own the.
Speaker Change: The majority of these names in our funds so it's positive.
Speaker Change: We see this as a great backdrop that when.
Speaker Change: The world wakes up to gold that is a long term secular trend destock.
Speaker Change: These stocks will go through a big re rating next please.
Speaker Change: Fear of tariffs money market funds seem to see increased I'll use as an example, vanguard with money funds seeing how much money came in.
Speaker Change: With.
Speaker Change: Trumps.
Speaker Change: Bottle from Valentine's day to Liberation day on April the second.
Speaker Change: Fund flows really start going into and out of the stock market.
Speaker Change: Next please.
Speaker Change: Warren Buffett retires wellness brilliant dyes and retires with almost 345 billion in cash 94 years old what an amazing GARP investor.
Speaker Change: And I want to.
Speaker Change: Just sort of tip my hat to him, but also remember he has a big cash position looking for Selloffs Dubai next please.
Speaker Change: Positive news I'm, giving this because the stock buybacks are back even though there was a tax imposed by the previous administration on buying back stocks because they sold off.
Speaker Change: We saw a drop in 2024 by combination of the stock market soaring to new highs and this is now I'll sell off and we're seeing a repositioning of people buy back stock, even though gold stocks newmont is not buying other gold mining companies are expanding their exploration they are buying back their stock from all of our free cash flow.
Speaker Change: Next please.
Speaker Change: So why we buyback our stock while the company. We believe the stock is undervalued of therefore, we buy back shares of grow when the prices flat or down from the previous stream day using our basic algorithm and this is part of the company's two pillar strategy to enhance shareholder value by increasing the dividends as well as buyback stock.
Speaker Change: Got.
Speaker Change: And with Us overall apathy.
Speaker Change: Just continuing to increase our positioning up or buying back stock I think that when we start to see our various indoor.
Speaker Change: Industries that we're in we see a positive news from fund flows that we may change that position of our stock were buying but is trading at a very deep discount and yes, we lost money because of the change in.
Speaker Change: Our asset base because of the stock market's concerns on tariffs, but I think over the next 60 days will probably get a bottom to this next please.
Speaker Change: So the current repurchase program for the three months ended.
Speaker Change: <unk> 31, 2025, the company repurchased a total of 187987 class a shares using cash of approximately 454000 next please.
Speaker Change: So the repurchase program shows you that it's increased.
Speaker Change: It continues to increase.
Speaker Change: As the stock goes lower then we'll buy back more next please.
Speaker Change: The company has paid monthly dividend since June 2007.
Speaker Change: The current yield.
Speaker Change: It works out to about four 3%.
Speaker Change: It pays monthly next please.
Speaker Change: So they know both shareholder yield.
Speaker Change: I think it's just a brilliant way of looking at companies that are paying down their debt buying back stock and paying dividends and increasing our dividends. One of those three factors are really important for driving overall value for market cap next lease.
Speaker Change: Showed our investors are committed to returning value to shareholders. So we like to do this comparison to a five year treasury yields because dividends are really important the five years, where they engage you on your dividend yield as a whole.
Speaker Change: 10 years predominantly coupon they pay there is a tradeoff for funding for building a data center or building a building.
Speaker Change: Youre going to get bank lending, it's always a discounted cash flow over 10 years, but dividend paying stocks is five years. So when you look at us buying back our stock and what our dividend yield is today. That's a total shareholder yield of 10 five 3%. So we think it's a very attractive investment looking for the bottom in this cycle.
Speaker Change: And we continue to invest in the R&D for Smart beta two point all themes next lease.
Speaker Change: Relative valuations always important as a money manager.
Speaker Change: And this unique the spectrum here and it rotates.
Speaker Change: If we go back a couple of years ago. Her wisdom tree, we hired a higher return on assets.
Speaker Change: Now I'll have a higher which you can understand with the change of asset structure in our 8% convertible bond being paid down that additional income if it affects your return on your assets.
Speaker Change: But our pretax margins have felt the decline.
Speaker Change: In the us assets and you can see this with Invesco Invesco has <unk>, a beast 300 over $300 billion product.
Speaker Change: Which is 40% of their assets.
Speaker Change: They've sold off along with the <unk> and.
Speaker Change: And the dividend yield is now, 6%, which is greater than what a five year mark.
Speaker Change: So.
Speaker Change: I think that from a.
Speaker Change: Current income it looks pretty attractive if you believe like Warren Buffett.
Speaker Change: The ultimate Investor believe in America builds your cash like you did last year in the first quarter and look for something to buy when it sells off but by the dip and hold on for Dear life because of America's greatest country in the world.
Speaker Change: <unk> covers NASDAQ so I think that it makes these companies look quite interesting next please.
Speaker Change: Look at Q3 2025, the company a steady cash flow, despite challenging macro market environment, which I've gone through the company has a strong balance sheet, which includes cash and other investments of three the company continues to buy back stock on flat or down days and pays a monthly dividend.
Speaker Change: That makes us unique and special.
Speaker Change: And we will get through this where we think that will go through the re rating and we also remain.
Speaker Change: That we feel that the high position is slowly being paid down that we need to be repositioned in the bitcoin ecosystem for politics has changed and we think that the bitcoin adoption will continue to grow next lease.
Speaker Change: Smart Beta 2.0, I think are pretty well covered that it's really an important fundamental investment strategy that.
Speaker Change: Is it requires robust amount of hours and you have to do.
Speaker Change: We look at it all the time because when you do the quarterly rebalancing the data posed by third party and ourselves are always different and the data pull from Bloomberg or Factset you have to check that every quarter. So there is an ongoing vigilance.
Speaker Change: Picking the stocks creep in that portfolio. So we don't think it's a black box you sit back and do nothing once you buy your basket of names. It's the opposite next please.
Speaker Change: We have a growth and investment in high digital and it's from $15 million, we have down to $2 3 million left is paid off quarterly.
Speaker Change: The 8% convertible and so.
Speaker Change: As this is money has come again will redeployed.
Speaker Change: The bitcoin ecosystem next please.
Speaker Change: So rose $2 18.
Speaker Change: $1 4 billion in assets $2 1 million quarterly operating revenues. Please.
Speaker Change: So you can see our earnings were down this is going to give you more color and granularity on it.
Speaker Change: But a lot of it has to do with.
Speaker Change: So the fears of the airline industry.
Speaker Change: And fears of gold stocks that theyre, not going to be sustainable and gold whatever it is is the apathy.
Speaker Change: I've seen it before witnessed through it so I believe that will cost through this we're a lean machine of less than 25 employees.
Speaker Change: And we know that at any moment. These products can go like jets went from $150 million $140 million down to two less than $50 million then up to four big It and then now it's down to just under $1 billion. So you just have to realize that.
Speaker Change: That's just the volatility of office sentiment and during that whole period will make sure that we're always picking the best of breed stocks next lease.
Speaker Change: We just celebrated jets being 10 years, we have the opportunity of.
Speaker Change: The New York stock exchange and sharing that with us.
Speaker Change: Other people so it.
Speaker Change: It was a great trip next please.
Speaker Change: Now the brains and hardworking Lisa Helicop.
Speaker Change: It's going to give you a financial analysis of what took place so I turn it over to Lisa.
Lisa Helicop: Thank you Frank.
Lisa Helicop: First I'll start with our financial highlights.
Lisa Helicop: Alright.
Lisa Helicop: Under management were $1 49 for the quarter.
Lisa Helicop: Quarter.
And our operating revenues were $2 1 million and <unk>.
Lisa Helicop: Accordingly net loss.
Lisa Helicop: ADT now.
Lisa Helicop: The next slide.
Lisa Helicop: Talk about the breakout of <unk>.
Lisa Helicop: Operational earnings which consists of our advisory services.
Lisa Helicop: Also had other mainly at realized and unrealized gains and losses on our investment.
Lisa Helicop: Yes.
Lisa Helicop: We are dependent on the market from a parts right Apple market.
Lisa Helicop: On the next slides, we will see more detail about our operations in the quarter ending March 31 2025.
Lisa Helicop: Here, we see that the operating revenue $19 1 million for the quarter and this is a decrease of 490000 or 19% from $19 six last.
Lisa Helicop: Last year.
Lisa Helicop: The decrease was primarily due to decreases in assets under management.
Lisa Helicop: And especially in our GAAP EPS.
Lisa Helicop: Operating expense for the current quarter were $3 million.
Lisa Helicop: Increase of 85000 or 3% primarily.
Lisa Helicop: The decrease in general and administrative expenses of 281000 or 16%.
Lisa Helicop: Lower <unk> expense.
Lisa Helicop: The decrease was somewhat offset by an increase in advertising at a 146000.
Lisa Helicop: Primarily attributable to increasing average ticket.
Lisa Helicop: Management.
Lisa Helicop: On the next slide we see our operating loss for the quarter with 893000 or an unfavorable change beforehand.
In the same quarter last year.
Lisa Helicop: Other income increased $1 million.
Lisa Helicop: Now.
Lisa Helicop: And that was due to net realized and unrealized losses on equity securities.
Lisa Helicop: Alright, alright.
Stuart: Firstly Stuart and good morning.
Stuart: Again, which was a favorable change in 100.
Stuart: Net loss after tax for the quarter.
Stuart: In 2003 cents per share, which is an unfavorable change of 347.
Stuart: In that light.
Stuart: At the same quarter perfect. Thank you.
Speaker Change: Good morning.
Speaker Change: And then on the next slide you see our balance sheet.
Speaker Change: We have a strong balance sheet with high levels of cash and securities.
Speaker Change: Then on slide 45, we see we still don't have any long term debt.
Mike: And Mike when you think you can see our applebee's.
Mike: The company has a networking capital of $37 5 million and a current ratio of $21 71.
Speaker Change: With that I will turn it over Hollywood as marketing and distribution.
Lisa Helicop: Thank you Lisa.
Speaker Change: The first slide in my section.
Speaker Change: Highlights our continued commitment to sharing original timely market insight on Youtube as well as tick tock and video and they are one of the most effective ways to educate and engage both new and existing shareholders still if you haven't yet we highly recommend checking out our Youtube channel.
Speaker Change: And on the next slide this is our latest in house video, which we think shareholders will find both insightful and timely it ties in well with our war ETF and the ongoing focus on the defense sector right now and this video actually covers President Reagan strategic defense initiative or better known as Star Wars.
Speaker Change: Check that out when you have some time.
Speaker Change: Then on the next slide.
Speaker Change: These are just a few of the upcoming conferences, where the U S. Global investors team will be participating first is wealth management edge that happened in June where we'll be engaging with RIS gating the media exposure and connecting with potential shareholders and then in July we will be at the rule natural resource.
Speaker Change: Symposium, which is hosted by Rick rule.
Speaker Change: And while we're while we are there we are going to have a modest presence and we're especially excited that our both fund manager Ralph Aldis will be speaking on the investing legend panel alongside industry leaders like great huge stress from PRA group, Rob Mcewen Mcewen mining.
Speaker Change: And Jonathan Goodman from Dundee.
Speaker Change: Moving onto the next slide I want to point out that the Frank talk blog continues to expand its third party distribution and now you can sign up to receive it on sub stack and this platform has around 20 million monthly active subscribers.
Speaker Change: On the next slide.
Speaker Change: To recap the most spread Frank talk blog posts during the quarter, though as you can see here the top teams focus on tariffs trade Wars and then goal.
Speaker Change: And honestly all of those are still incredibly timely as we head into the next quarter.
Speaker Change: Finally on my last slide I do encourage you all to follow U S global investors on social media, where on Twitter Linkedin, Youtube Instagram and Facebook. So wherever you prefer to get you need to be sure to check it out.
Speaker Change: This way you are up to date with everything that's going on not only with <unk>, but with our funds and just the broader market insights.
Speaker Change: As a reminder to our audience. If you have any questions. Today. Please E mail to info at <unk> Dot Com and we will gladly follow up with you to get anything clarified that you may need more information on <unk>.
Speaker Change: So much for tuning in today that concludes our webcast.
Speaker Change: Goodbye.