Q1 2026 US Global Investors Inc Earnings Call
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Good morning, everyone. Thank you for joining us today for our webcast announcing U.S. Global Investors' results for the first quarter of 2026.
On the next slide.
the presenters for today's program are Frank Holmes us Global Investors CEO and chief investment officer, Lisa kakot, Chief Financial Officer and myself, Holly shonfeld's
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, our subjects to risk and uncertainties that may materially affect actual results. Please refer to our press release and corresponding form. 10q 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 US Global accepts no obligation to update them in the future on the next slide. As always, we appreciate our loyal shareholders. If you'd like 1 of our signature hats.
Along with your mailing address and we would be happy to send them your way.
All right. Now, on to slide number 5, I will briefly review our company. Us, Global Investors is an Innovative investment manager with vast experience in global markets and specialized sectors. We use quantum mental strategy, to create thematic, smart beta 2.0 products. The company was originally founded as an investment Club becoming a registered investment advisor in 1968 and had a long-standing history of global investing in launching. First of their kind products, including the first no-load gold fund. Finally, we're experts in thematic investing in particular gold and precious metals natural resources, Airlines and luxury. Goods all using a Quantum approach that includes both macro and micro factors on the next slide.
We often begin our presentations with this visual called the DNA of volatility. It serves as a useful, reminder to shareholders that market ups, and downs are a normal part of long-term Behavior with assets.
With that. I'd like to turn it over to our CEO and CIO Frank Holmes.
To dive in to this quarter's earnings. Frank, thank you, Holly. Um, on the DNA of volatility, I think the visual is really important because it highlights what's a non-event. And I share with you. 20 years ago, gold was much more volatile on a daily basis. It was 2 to 3 times for the S&P and over 10 days. It was like
67% now it's changed um and us as classes like GLD. Um all of a sudden more funds institutions are going into it, they start to morph and change. The DNA of volatility Tesla used to have the highest volatility until it became a component of the S&P 500. So it's working and we update this every quarter for investors to recognize. What is that volatility? Uh, us Global volatility uh, a lot had to do with gold and gold stocks because that's a big part of our asset class composition and and you can see how it Compares. It's a non-event for gold to be up or down. 1% grow to be up or down 2% on a daily basis and the Dow Jones. US asset managers index is also 2%. But over 10 days, other factors. All of a sudden seem to have a bigger impact, uh, on larger asset classes, uh asset managers. Um, but it's important for you to recognize different asset classes have different dnas of
Volatility. And this all helps you to manage the expectations.
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Top institutional shareholders uh 6.28 is Gator, Capital Management. 5.68 is Vanguard and 4.81 is paired. Uh thank you for being long-term investors uh Gators knew uh and pair it capital Asset Management. Um has been a long-term investor in micro cops with a unique expertise in this space. Um so thank you all
uh, next please
As a CEO I owned approximately 19% of the company and approximately 99% of voting control that a lot of that voting control has to do with rules, uh, of the 40 act, which you can always if you need more information on that, uh, you can inquire, we'll get them for you next, please.
But in that context, we still have 3 independent directors uh at us Global um uh 1 with a law degree, others with the Steep knowledge of the capital markets uh and in addition to mutual funds and ETFs. So it's a it's a good long-term board. We now have 4 independent directors. Correct me on that. Um Bobby Duncan brings uh unique experience as a board member um and that knows everything about this industry. Um so now I'd like to talk about strategy and tactics. You know, we love this idea of creating thematic products that are sustainable using smart beta 2.0 strategy which requires rigorous back testing for thousands of hours and it's also you have to continuously do it. It's really uh, it's an it's an active money management process. But as rules based around these smart beta, uh, factors that you look at and portfolio construction and our mission is to make people feel financially happy and secure that the
Deploying it uh in uh other sort of unique products are out there that are also throwing off a yield. Um, so next, please
We believe that buyback or stock because stock is undervalued. And therefore we buy back shares of grow when the price is flat and down from the previous trading day, using a simple algorithm. This is part of the company's 2 pillar strategy to enhance your order value by paying the dividend as well as buying back the stock.
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Current share repurchase program for the end of of September. We pre purchased 159,074 Class, A shares using approximately 400,000 dollars as a stock rally uh through the quarter. We end up buying less stock because it was less days. It was down next, please.
This is a visual showing just a tremendous volatility. We've experienced last quarter last year. This time was the quarter and for the election uh then we had um March and June. There was just tremendous volatility, especially after April, the 2nd, this impacted the funds, but they seem to have. Uh, I would say have stability in certain asset classes that particular goal related or improving next, please
The company has paid monthly dividends since June 2007. The current yield at the share price of $260 is 3.46%.
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What's important is um an Investment Group in a thesis on call the shareholder yield, which is a combination of the dividends BuyBacks and debt reduction. Uh, so our our we don't have any debt. So from that end, um our market cap is uh is is really a big set of attractive Investments. So the next visual is going to show you that when you do stock BuyBacks and dividends. Um, our overall shareholder yield is much higher than a 5 year bond.
This is a another visual showing you. Uh,
Relative valuations on Price to Book, uh, were very attractive on a PE ratio. We have a much higher PE ratio, I think that relates a lot to the gold assets and the first couple quarters this year, uh, were impacted, uh, by the election. And, and the Tariff uh, uh, battles and um, and so I think that, uh, hopefully, uh, that the worst is behind us as we move forward. Going into next year. Next, please.
So this is a visual that's uh it relates to the previous thing about shareholder yield 5 year, yield is 3.74. That's roughly what our dividend is. Uh the 10 years 4.16 and with our dividends plus buying back stock for investors long-term, it's a 8.32% shareholder yield. So I think it's just nice and conservative methodology of managing our Capital next please.
Average assets under management and billions of dollars. Uh, from a year ago there are slightly down. Uh they were down 6B um which is important. Um, and it's it's interesting launching new products, the challenges of getting the story told. Um, even though you've got good profound performance, uh, and you have a unique asset class. It's it's just becoming more expensive and, and challenging. And, and, to me, it's really quite fascinating, the apathy that's taking place, um, uh, in some of the products that we noticed that even the gold last year, uh, the biggest gold ETFs and Equity had redemptions. And so did the bullion, uh, and it wasn't until this past quarter that you saw a big surge going into the GLD and into the gold equities as gold soared to over 4,200 dollars. Made an all-time high. I, it really is. I've never experienced where gold makes an all-time high.
And you don't have the substantial flows in the gold equities. Uh, as if, um, there's something else happening in the capital markets, uh, and and so I'm told that uh, some of the prop deaths are, uh, are are behind this, but I really don't know, as of yet, all I know is that we're still focused on what we're doing and and really providing Unique Products. Next, please,
This is a quarterly earnings. Um, the impact of the Tariff War. You can see did impact us and we've had a bit of a rebound assets or up and also our investment income uh is improved. So that's also uh helped us uh turning this corner next please.
Paid back over the next 6 months. Next please.
260 a share at the end of September, uh, 1.4 billion assets under management and 2.25 million, operating revenue for the quarter, next please.
I look at 26 uh company of steady cash flow, despite volatile and challenging macro Market in conditions. We continue to have a strong balance sheet which includes both cash and other Investments. And the company continues to buy back stock on flooded down days and pay a monthly dividend. Next, please.
Our fundamental investment strategy, combines Cutting Edge technology with robust data analysis, to help optimize returns and manage risk. Effectively, for our shareholders, we believe that this smart baited 2.0 factors are an orthotic lineup, is the Assessor's apart from our competition.
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So here's a sort of a, a lineup I think is important to see that the gold funds have had a, a huge bounce, uh, in in, in, in this past year. Um, and uh, the junior still have not taken off even though there's a great rebound, uh, luxury as done. Well, relative to discretionary, uh, uh, uh, consumer discretionary indexes. Um, it's also probably because it has a unique exposure to Gold momentum stocks, um, resource and commodities uh,
And I think it's really important for investors that that this is far outperformed 13 and 5 years. Um and and I think that Ray dalio not only recommends 10 to 15% in gold and gold stocks. He's also in resources and uh global resources is Opie performed as Benchmark. And it's a just a unique product and it's done a great job in performance this year. Uh, Jets was doing well until we started to shut down and now we have another sort of Calamity that's happening in in sentiment um, that the TSA number of the top 40 airports and business activity are are shrinking by 10%. So, there's longer lineups and that affects the sentiment of the airline industry in America, but I can share with you, it's booming in Europe and in Asia. Um, and you can see the travel industry ETF listed on the line in stock exchange, it's up 8.5%. So I think, uh, historically, this fourth quarter has been a, a huge win for the airline industry in America.
Uh, except for when you have a government shutdown, and that impacts TSA, uh, workers coming to show up and how fast people can make their connections Etc. But I, I, I come back that when this is over that, I think you'll have a, a big pop here. Uh, global Shipping is a real surprise, with all the terraformers that sold off. And then has had a rebound, shipping rates are up and the remaining strong, um, uh, and I think they will also see, uh, robust dividends being paid.
By the by shipping, this is unique because 80% of all Cargo in the world is by the ocean. And and this basically this product captures the world's global trade. So if you want to look at something that's really real time, capturing GDP of the world, I believe that c is the key factor. If it slows down the GDP is because shipping between uh exporting countries and importing countries is declined. And uh, right now, uh, it's it's pretty strong. Um, AI defense is our latest product called War. Uh, it's AI applications being applied to um, various industries that are so key to rebuilding our military and uh, what a lot of people don't realize this. Since XI Jiang, ping has been the dictator of China uh, and taking on the responsibilities and the power of the authority of now. Uh he has triple the uh the Navy. He has tripled military spending.
Spending. And so we're seeing now a big spend in America and in Europe. Uh, it's only gets exasperated in Europe with Putin and it's a battle in Ukraine of a great concern that we have to use the latest of technology to rebuild our military. So it's done a great job. Um, in the first, uh, 9 months of being launched and the gold royalties and streamers, uh, they're plus 92%. So we're very happy that um, they're doing what the the model suggests that they would do next, please.
And, and world, and, and, uh, gold shares, which was the first, uh, mutual fund? Uh, no-load mutual fund, um, that they're rebounding. Next, please.
Gold reaches all-time highs 4,300 and has gone through a correction as since October, but, uh, still it remains on top. Uh, it had an extremely overbought Condition. It's just normal for it to go through this correction uh remain very bullish. I'll explain to you in a few seconds. Why next please.
Um this here is that gold is outperforming, the S&P 500 and shocks so many investors that this Century. Gold is basically doubled what the S&P has done and it's really important that Ray Dahlia with the largest hedge fund. Having a 10 to 15% in gold and gold stocks. Really has helped his overall uh investing and investors not invest in this sector. It's and I'm going to show you in a visual are actually pretty well close to the all-time low of the apathy of of, ignoring the spectacular. Uh, diversifier for a diversified portfolio. Next please.
Uh, Ray dalio uh, says you 10 to 15% in Gold, next, please? And another 25% in natural resources. So we feel that we're in the right category, but here's what's really important to look at the national debt of the US is at 48 trillion and that's concerning. Um, so many countries
But it's really the rest of the world is on a debt frenzy. Uh, and the next place next visual, um, there's so much criticism of America especially by Americans and and I understand about accountability for money being spent. But when we look at the rest of the world, um it's 338 trillion and and it's more than 3 times the global GDP. So I I think that this concept of modern monetary Theory, this century is only led to Gold where you're seeing debt. Total Global debt Rising faster than Global GDP. Uh, and that just means resource assets, especially gold very attractive as a diversifier. Um, next please and I had, I'm not seeing any big changes. There's so many different sources of data. You can use the IMF or this is the Bank of international settlements, um, and there's other data metrics, but it's roughly trying to share with you that the debt, the US debt. Now,
Amongst the world's highest, uh, it's 249%. But look at China, it's 292%. And um, and then you would look at Japan as 380% and Hong Kong is probably a better reflection of the high debt to, uh, equity in GDP. Because China Masters, a lot between the interstate debts. Etc is, uh, many believe that's well over 350%, but just using the bank of international settlements, you can see that the
The rest of the world as printing money and um the debt levels are very high and this only bolds well for gold and the scarcity Factor next. Please.
Go. Aw, a significantly will perform the market um and we're happy to show you this and we still Advocate the 10% Golden Rule that a diversified portfolio, should have 10% as Ray. Dalio says 10 to 15% next please.
This is um, a, a standard uh, disclaimer when you give performance numbers. Next, please.
Uh, World presses minerals. Uh, it has a junior exposure to it so it has a higher number and midcap gold. Producers then go, aw, which is more big cop and royalty companies, but it's also going you as less volatile in the corrections. Next, please.
That's another disclaimer that's necessary for when showing your performance, next please.
Uh, the implied. Uh, this is to me really profound for investors that back in 2010. 2012 when XI Jiang Pang, became the uh the Imperial leader of uh communist China. Um the investors in America were about 8% in Gold, equity and gold bullion ETFs uh and this decline to 2% and as this seems to be starting to rise. So I think that
As growth momentum stocks next, please.
so this is a product we have, uh it's it's jets in Europe, uh, but it also has a bigger focus on um uh um
Cruise lines and airport and not airports but also bigger exposure to, uh, luxury hotels and hotel chains, which have really become igop when you look around the world and, um, and they're still showing, uh, great numbers and performance, uh, this year and, and British airlines as a stock individual stock is in a 45 degree, uh, rise from left to right. So, I, I, I remain very bullish on, on global Airlines. Next, please,
The other big theme that seems to be highlighted by Rocket, Barren, and the front cover of IBD is the AI market exploding. It's true, it is, and we remain very bullish on the sector. This is a compliment to our ETF. Next, please.
So, the Aerospace defense AI to rebuild the military. These are the 5 major industries that make up this new smart beta 2.0. Uh, ETF. Next, please,
And I asked this question often, and most people don't realize that, uh, 80% of the world's cargo is carried by shipping. And that's the best way to have your, your fingers on the arteries and veins of global economic activity. That's what cea uh ETF captures. Next please.
Uh, recently, we we're greatly concerned about, um, a a drop in democracy around the world. It's at an all-time low something. Like, 25% of, the world's population now is run, really, as a democracy. And, and a lot of even the United Nations has has gone to authoritarian and some forms of authoritarian regimes and so Keystone is ranked the number 1 School, in San Antonio year and year out and they have a very strong model you. And, and they're the most grads of from the school here, going to Ivy League or Stanford? Um, and so we want to get behind investing in the future of America, uh, investing in uh, model U and were democracy and capitalism, are very strong, uh, and Powerful. Uh, pillars for Innovation and sustainable growth. Next, please,
I like to turn over a hardworking uh uh our CFO Lisa kalakat.
Thank you, Frank. Good morning.
First, I start with our
You can see that um our quarterly average assets under management were 1.4 billion and operating revenues were 2.25 million. And net income was 1.5 million.
The next slide is a reminder of the different components of our earnings. We have operational earnings that consists of our advisory fees and we have other earnings which is mainly consists of both realized and unrealized gains and losses on our investment Holdings.
Our operational earnings are based on our average assets under management for the period and our investment. Earnings are based on the change in market value of the investments held.
The next slide provides more detail of our operations, uh, for the period ending September 30th 2025
We see our totally operating revenues with 2.3 million for the quarter, which was an increase of 94,000 or 4% from the 2.2 million, the same quarter last year. The increase is primarily due to increase in advisory and administrative fees for our Equity mutual funds.
Um, it was somewhat offset by a decrease in ETF fees.
As you can see, operating expenses increased by $50,000, or 2%, mainly due to employee compensation, which increased by $101,000, or 9%, reflecting higher bonuses. Additionally, advertising expenses rose by $52,000, or 48%, related to expanded ETF marketing efforts.
And these were partially offset, um, by a decrease of 93,000 in our general and administrative expenses, primarily due to lower ETF and travel costs.
The next slide shows our operating loss for the quarter ending September 30, 2025. It's $515,000, compared to the operating loss of $559,000 for the same quarter last year.
Other income for the quarter was 2.4 million compared to other income of $995,000. And the prior year,
the change is 1.4 million and it was primarily due to a higher net investment income and the current period due to unrealized gains on other Investments.
Net income after taxes for the quarter is 1.5 million or 12 cents per share. This is an increase of 1.2 million compared to the net income of 315,000 or 2 cents per share in the same quarter for the last fiscal year.
Moving to the next page, we see we have a strong balance sheet, includes high levels of cash and Investments.
Cash and cash equivalents was approximately 24.6 million at the September 30th 2025.
And it increased approximately 30% since June 2025.
Current Investments totaled. 9.7 million.
And the next slide, this is a detail of our other assets.
And the total of all the investments in other assets, it's approximately 7.5 million.
The following slide shows that our reliability slightly increased from June 30th 2025.
And on the following slide, we see our stockholder Equity detail.
September 30th 2025 the company had net operating.
working capital of 37.2 million and a current ratio of 20.5 to 1
With that, I'll turn it over to Holly.
Thank you, Lisa.
All right, for the first slide in my section, uh, this slide highlights our continued commitment to providing original And Timely marketing Insight through our YouTube channel.
Video remains 1 of our most effective ways to educate and engage both new and long-term shareholders.
And as you can see on this slide, our recent features include Frank's gold price forecast where he accurately predicted for thousand dollars an ounce gold and as well as his latest Outlook moving forward and another notable video Gold's. Next move, is a replay of our recent fireside chat with some of the industry's leading experts. So, we definitely encourage everyone to subscribe to our YouTube channel. To stay informed whenever new content is released
Okay, on the next slide. I'd like to Spotlight several recent interviews that Frank Holmes has done in the past quarter. Uh, this includes appearances on the Daniela cambone show with itm trading pre-market prep which streams Live on YouTube and X.
Proactive investors. And finally, you want to bring recent blog articles was featured in real assets advisor magazine and all of these can be found on their respective websites, but they are also shared on our social media channels.
All right. On the next slide. We currently have 2 exceptional, white papers that are available for our shareholders and other investors 1 of them focuses on the defense and AI sectors while the other provides an in-depth analysis of the distinctive business model of gold royalty and streaming companies,
These white papers serve as valuable educational resources for our shareholders. They've also helped expand our subscriber base as new readers provide their information to access the content. Both of these resources are available for download at usglobalets.com.
On to the next slide. We always like to recap the most read Frank talk blog posts during the recent quarter. So as you can see here,
This was absolutely.
Gold.
Gold, miners, and the price of gold. And in addition to that, people are still very curious about airports and investing in the global Aviation Space. So, if you're not already a Frank talk subscriber, it's free to do so and you can do that on our website.
Okay. And then next slide, which is my last slide, I just want to encourage everyone. To follow us on social media. We're on X LinkedIn, YouTube, Instagram and Facebook. So wherever you prefer to get your news. Be sure to check us out this way, you're up to date with what's going on. Not only with growth stock our funds but also just broader Market insights
Okay. On the last slide. Just a friendly reminder to our audience. If you have questions today, please email those to info at usms.com and we will gladly follow up with you to get anything clarified, that you might need some more information on. Thank you so much for tuning in today that concludes our webcast summarizing the first quarter of 2026.