Q3 2026 U.S. Global Investors Inc Earnings Call

May 14, 2026

Speaker #1: Broadcasting U S GLOBAL INVESTORS results for the third quarter of 2026. As you can see on slide number two, the presenters for today's program are Frank Holmes, U S GLOBAL INVESTORS CEO and Chief Investment Officer, Lisa Callicotte, Chief Financial Officer, and myself, Holly Schoenfeldt, Director of Marketing.

Speaker #1: Moving on to the next slide. 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.

Speaker #1: Please refer to our press release and corresponding forms and queue filings for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements.

Speaker #1: Any such statements are made as of today, and U S GLOBAL INVESTORS accepts no obligation to update them in the future. On slide number four, we're always grateful for our continued support of our valued shareholders.

Speaker #1: So if you'd like to receive one of our signature U S GLOBAL hats, featured here, just send us your mailing address to info@usfunds.com. We will gladly ship one out to you.

Speaker #1: All right, moving on to the next slide. I will briefly review the company. U S GLOBAL INVESTORS is an innovative investment manager with vast experience in global markets and specialized sectors.

Speaker #1: We use a 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 has a longstanding history of global investing and launching the first of their kind investment products.

Speaker #1: Finally, we are experts in thematic investing, in particular gold and precious metals, natural resources, airlines, and luxury goods, all using a quantum mental approach that includes both macro and micro factors.

Speaker #1: Moving on to the next slide. We often begin our presentations with this slide, what we call the DNA volatility. As a reminder that market swings are a normal part of long-term investing, with that in mind, I would like to hand it over to our CEO, CIO, Frank Holmes.

Speaker #2: Frank.

Speaker #3: Thank you, Holly. As Holly points out, that volatility is so important to appreciate these numbers always change when global factors such as a stock, like we know Tesla when it went into the S&P 500, its volatility dropped, gold bullion when the ETF was created, its volatility dropped.

Speaker #3: So other events could turn around to increase volatility and a non-event for Bitcoin to go up 3% in a day or down, same thing with the airline index, and the same numbers happen over, as you can see here, over 10 trading days versus gold.

Speaker #3: And gold stocks are even more volatile than gold. Next, please. I want to thank our shareholders, Gator Capital Management, seeing our deep value, owning 7.95% and 6% by capital wealth advisors, and Vanguard's index.

Speaker #3: Next, please. As a CEO and CIO, I want to approximate 19% of the company and have approximately 99% of voting control and this is a structure that is to be compliant with 40 acting rules for running money management companies.

Speaker #3: Next, please. So strategy and tactics create thematic products, look for rigorous process backtesting thousands of hours before launching a product for its resiliency in both up and down cycles.

Speaker #3: Our mission is to make people feel financially happy and secure that their wealth is consistently growing. 'Consistently' is really an important part when we look longer term.

Speaker #3: Short term, we can see periods where gold, which is where well-known for, can trade sideways or be down, but over this century and over this decade, it's had phenomenal performance and over the past five years, it's really kicked in over the past two years.

Speaker #3: So, it's recognizing over longer time periods. We used to strategically buy back our stock using an algorithm on flattened down days, and managed to preserve cash for future growth.

Speaker #3: Please we do subscribers for their thought processes, so feel free to subscribe and something that we look to increase in a very competitive marketing to drive down marketing costs, develop followers.

Speaker #3: And we increase our exposure to the Bitcoin ecosystem because we did launch Hive, the first crypto mining company to go public, which is a dual-engine, both data centers tier one for Bitcoin mining, but tier three is now building AI factories.

Speaker #3: Next, please. So I'm going to quickly go back and over the capital markets for you and our products and how they're aligned with them.

Speaker #3: But in that thought process, the great line from Steve Jobs, "You can't connect the dots looking forward. You can only connect them looking backwards." So you have to trust the dots will somehow connect to your future.

Speaker #3: And that's really a thought process that also shows up in smart beta 2.0 is backtesting, seeing if you can connect the dots, what are the factors for portfolio construction, as well as different themes have different key factors for stock pain.

Speaker #3: Next, please. The trend continues. Mutual funds continue to see a redemptions as ETFs continue to grow and what's really important for us is to see the active managed ETFs are going.

Speaker #3: Next, please. The total US ETF market remains the largest in the world. As you can see from ICI fact book, the total assets have surpassed 13 trillion.

Speaker #3: Next, please. So the rise of active ETFs, active ETFs attracted 500 billion in net inflows in 2025 and more than 80% of ETF launches in 2025 were active.

Speaker #3: This is a big difference from when we first launched the jets. In Q1, 2026, active ETFs were attracting nearly as much money as passive ETFs.

Speaker #3: Next, please. I really point out that I think Cathie Wood has been really instrumental in the creation and success when she was able to balloon to 100 billion dollars in technology suite of ETFs and really capture the whole boom and Bitcoin early and Elon Musk building Tesla being an early pioneer and being active and concealing to her is really research and the thought process is that people can download and look at research at the same time see how she looks to participate through her products.

Speaker #3: So I think that was a major game changer in that context. The company we believe its stock is deeply undervalued and continue to buy back shares.

Speaker #3: When the price is flat or down, as I mentioned earlier, and this part of the company's two pillar strategy to enhance shareholder value by paying dividends as well as buyback amounts per year.

Speaker #3: Next, please. For three months ended March 31st, the company repurchased a total of 176,592 Class A shares using cash for approximately 534,000. And since 12th of 2019, we have shrunk the shares outstanding by approximately 20%.

Speaker #3: Next, please. Growing buybacks—this is just looking at the past four quarters. As you can see, if markets become volatile and go down, we end up buying more during those periods.

Speaker #3: Next, please. So the key factor in this sort of thought process is what's called total shareholder yield. That's dividends plus buybacks plus debt reduction.

Speaker #3: And since we don't have debt, it's really focused on dividends and buyback. Divided by the market cap. Next, please. So on a comparative analysis, you can see that basically our monthly dividend is 0.0075 cents.

Speaker #3: That works out to a present yield of about 3.4%. And I think if we flip over to the next visual, it's really helpful to put this in context because the dividend growth model is really comparing dividends against five-year government bond yields.

Holly Schoenfeldt: Test U.S. Global Investors results for Q3 2026. As you can see on slide number 2, the presenters for today's program are Frank Holmes, U.S. Global Investors CEO and Chief Investment Officer, Lisa Callicotte, Chief Financial Officer, and myself, Holly Schoenfeldt, Director of Marketing. Moving on to the next slide. 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 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.

Holly Schoenfeldt: Test US Global Investors Results for Q3 2026. As you can see on slide number two, the presenters for today's program are Frank Holmes, US Global Investors CEO and Chief Investment Officer, Lisa Callicotte, Chief Financial Officer, and myself, Holly Schoenfeldt, Director of Marketing. Moving on to the next slide. During this webcast, we may make forward-looking statements about our relative business outlook.

Speaker #3: And you can see that our yield is slightly—as just a dividend—cash is slightly less than a five-year, but with stock buybacks, that total shareholder yield is 9.96%.

Speaker #3: So this just begs the thought process of continuing to buy back the stock and makes a very compelling investment. Next, please. Assets of 1.63 billion.

Holly Schoenfeldt: 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 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 US Global Investors accepts no obligation to update them in the future.

Speaker #3: And operating revenue of 2.8 million quarterly. Next, please. Average assets under management have been increasing. Which is positive and constructive. In the sort of the volatile markets we live with, it doesn't matter a year ago, we had which is really to me interesting, the contrarian is liberation day on April the 2nd and how that impacts assets and how we've slowly climbed out of that correction.

Holly Schoenfeldt: On slide number 4, we're always grateful for our continued support of our valued shareholders. If you'd like to receive one of our signature U.S. Global hats featured here, just send us your mailing address to info@usfunds.com, and we will gladly ship one out to you. All right, moving on to the next slide, I will briefly review the company. U.S. Global Investors is an innovative investment manager with vast experience in global markets and specialized sectors. We use a quantamental 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 has a long-standing history of global investing and launching first-of-their-kind investment products.

Holly Schoenfeldt: On slide number four, we're always grateful for our continued support of our valued shareholders. If you'd like to receive one of our signature US Global hats featured here, just send us your mailing address to info@usfunds.com, and we will gladly ship one out to you. All right, moving on to the next slide, I will briefly review the company. US Global Investors is an innovative investment manager with vast experience in global markets and specialized sectors. We use a quantamental 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 has a long-standing history of global investing and launching first-of-their-kind investment products.

Holly Schoenfeldt: Finally, we are experts in thematic investing, in particular gold and precious metals, natural resources, airlines, and luxury goods, all using a quantamental approach that includes both macro and micro factors. Moving on to the next slide. We often begin our presentations with this slide, what we call the DNA of volatility, as a reminder that market swings are a normal part of long-term investing. With that in mind, I would like to hand it over to our CEO and CIO, Frank Holmes. Frank?

Frank Holmes: Thank you, Holly Schoenfeldt. As Holly Schoenfeldt points out that volatility is so important to appreciate. These numbers always change when global factors, such as a stock, like we know Tesla, when it went into the S&P 500's volatility dropped. Gold bullion, when the ETF was created, its volatility dropped. Other events could turn around, increase volatility. It's a non-event for Bitcoin to go up 3% in a day or down. The same thing with the airline index. The same numbers happen over, as you can see here, over 10 trading days versus gold. Gold stocks are even more volatile than gold. Next, please. I want to thank our shareholders, Gator Capital Management, seeing our deep value, owning 7.9% and 6% by Capital Wealth Advisors and Vanguard's index. Next, please.

Frank Holmes: As, as a CEO and CIO, I own approximately 19% of the company and have approximately 99% of voting control. This is a structure that is completely in compliant with '40 Act and rules for running money management companies. Next, please. Strategy and tactics, create thematic products. Look for rigorous process of back testing thousands of hours before launching a product for its resiliency in both up and down cycles. Our mission is to make peoples feel financially happy and secure that their wealth is consistently growing. Consistently is really an important part when we look longer term. Short term, we can see periods for gold, which is we're well known for, can trade sideways or be down. Over this century and over this decade, it's had phenomenal performance.

Frank Holmes: Over the past 5 years, it's really clicked in over the past 2 years. It's recognizing over longer time periods. We strategically buy back our stock using an algorithm on flat and down days and manage to preserve cash for future growth. Please, we do love when we get more subscribers for their thought processes, so feel free to subscribe. It's something that we look to increase in a very competitive marketing to drive down marketing costs as we develop followers. We increase our exposure to the Bitcoin ecosystem because we did launch HIVE, the first crypto mining company to go public, which is a dual engine, both data centers tier 1 for Bitcoin mining, but tier 3 is now building AI factories. Next, please.

Frank Holmes: I'm gonna quickly go back over the capital markets for you, our products, and how they're aligned with them. In that thought process, a great line from Steve Jobs, you can't connect the dots looking forward. You can only connect them looking backwards. You have to trust the dots will somehow connect to your future. That's really a thought process that also shows up in Smart Beta 2.0, is back testing, seeing if you can connect the dots, what are the factors for portfolio construction, as well as different themes have different key factors for stock picking. Next, please. The trend continues. Mutual funds continue to see redemptions as ETFs continue to grow. What's really important for us is to see the active managed ETFs are growing. Next, please.

Frank Holmes: The total US ETF market remains the largest in the world. As you can see from ICI fact book, the total assets have surpassed $13 trillion. Next, please. The rise of active ETFs. You know, active ETFs attracted $500 billion in net inflows in 2025, and more than 80% of ETF launches in 2025 were active. This is a big difference from when we first launched the JETS. In Q1 2026, active ETFs were attracting nearly as much money as passive ETFs. Next, please.

Frank Holmes: I really point out that I think Cathie Wood has been really instrumental in the creation, and success when she was able to balloon to $100 billion in technology suite of ETFs, and really capture the whole boom in Bitcoin early, and Elon Musk building Tesla. Being an early pioneer, and being active and compelling to her is really research. The thought process is that people can download and look at research at the same time, see how she looks to participate through her products. I think that was a major game changer. I mean, in that context, the company we believe is, its stock is deeply undervalued and continue to buy back shares when the price is flat or down, as I mentioned earlier.

Frank Holmes: This is part of the company's two-pillar strategy to enhance shareholder value by paying dividends as well as buyback amounts per year. Next, please. For 3 months ended 31 March, the company repurchased a total of 176,592 Class A shares using cash for approximately $534,000. Since 12 2019, we have shrunk the shares outstanding by approximately 20%. Next, please. GROW by buybacks is just looking at the past 4 quarters. As you can see, if markets become volatile and down, we end up buying more on the down periods. Next, please. The key factor in this sort of thought process is what's called total shareholder yield. That's dividends plus buybacks plus debt reduction.

Frank Holmes: Since we don't have debt, it's really focused on dividends and buyback divided by the market cap. Next, please. On a comparative analysis, you can see that basically our monthly dividend is $0.0075. That works out to a present yield of about 3.4%. I think if we flip over to the next visual, it's really helpful to put this in context because the dividend growth model is really comparing dividends against five-year government bond yields. You can see that our yield is slightly just a dividend cash is slightly less than a five-year, but with the stock buybacks, that total shareholder yield is 9.96.

Speaker #3: And some of our products have done exceptionally well even with the negative doubts. Next, please. Quarterly EBITDA per share is basically showing you some of the volatility.

Frank Holmes: This just begs the thought process of continuing to buy back the stock and makes it a very compelling investment. Next, please. Assets of $1.63 billion and operating revenue of $2.8 million quarterly. Next, please. Average assets under management have been increasing, which is positive and constructive in the sort of the volatile markets we live with. It doesn't matter. A year ago, we had, which is really to me interesting. The contrarian is Liberation Day on 2 April and how that impacts the assets and how we've slowly climbed out of that correction. Some of our products have done exceptionally well even with the negative doubts. Next, please. Quarterly EBITDA per share is basically showing you some of the volatility.

Speaker #3: Lisa will give you more granularity, and if you want more details, you can feel free to phone her. Reach out, and she can walk you through some of the swings we've experienced.

Speaker #3: But looking back at the quarter of June of last year, that included April, Liberation Day, assets fell, assets rallied slowly from there, and we've also had some other gap reporting issues that create sort of non-cash volatility.

Speaker #3: Next, please. We like to compare wisdom trees 100% ETFs. Invesco is 40%, 63%. Sort of comparing our operating revenue, price to book, we are the deepest value.

Speaker #3: That's why we keep buying back our stock. We still generate higher returns on assets, our pre-tax margins remain healthy. And dividend yield is the highest.

Frank Holmes: Lisa Callicotte will give you more granularity, and if you want more details, you can feel free to phone her, reach out and walk you through some of the swings we've experienced. Looking back at Q2 2023, that included April Liberation Day, assets fell, assets rallied slowly from there. We've also had some other GAAP reporting issues that create this sort of non-cash volatility. Next, please. We like to compare WisdomTree's 100% ETFs. Invesco is 40%, we're 63%, and sort of comparing our operating revenue. Price to book, we're the deepest value. That's why we keep buying back our stock. We still generate higher returns on assets.

Speaker #3: Our price to EBITDA is extremely attractive when you compare it to the overall market. Next, please. A well-diversified portfolio should have 5 to 15% gold is Ray Dalio, master of the universe of big hedge funds, the biggest to last 136 billion dollars.

Speaker #3: Very quant discipline, but also big gold advocate. As imbalances take happen on a regular basis in the G20 countries between their monetary and fiscal policies, gold rises faster and those countries which have a bigger imbalance.

Speaker #3: Next, please. So, this is sort of connecting the dots. You can see here, gold's had a spectacular run since last year. In the past 12 months, from under $2,000 to over $5,500.

Speaker #3: It's corrected and now is bouncing back. I think gold still remains very attractive for many fundamental reasons. Next, please. And then one of the most compelling is modern monetary theory.

Frank Holmes: Our pre-tax margins remain healthy, and our dividend yield is the highest, and our price to EBITDA is extremely attractive when you compare it to the overall market. Next, please. A well-diversified portfolio should have 5 to 15% in gold as Ray Dalio, master of the universe of big hedge funds, the biggest, to last $136 billion, very quant discipline, but also a big gold advocate. As imbalances take happen on a regular basis in the G20 countries between their monetary and fiscal policies, gold rises faster in those countries which have a bigger imbalance. Next, please. This is sort of connecting the dots. You can see here gold's had a spectacular run since last year, in the past 12 months from under $2,000 to over $5,500.

Speaker #3: It basically is that governments this century have demonstrated a propensity to print their money out of any problem, and say that they will buy back that debt when the economy improves in their country, but they never do.

Speaker #3: So the debt continues to grow and there's approximately 8 billion ounces of gold in the surface of the earth, but the money printing is faster than the gold is coming out of the ground or gold is above the ground.

Speaker #3: So, that lends it that real assets like gold become an attractive asset, and I think that it's just an important part of a diversified portfolio to protect your family's legacy and have long-term exposure, particularly to gold stocks.

Speaker #3: Next, please. So one of the big factors of buying gold is not just the future trade, which is negative interest rates and balance of NMT.

Speaker #3: It's been the rising GDP per capita for countries like China and India, Middle East, and Southeast Asia. Where there's a huge cultural bias towards buying gold, especially on any corrections.

Frank Holmes: It's corrected and now is bouncing back. I think gold still remains very attractive for many fundamental reasons. Next, please. One of the most compelling is a modern monetary theory. It basically is that governments this century have demonstrated a propensity to print their money out of any problem, saying that they will buy back that debt when the economy improves in their country, but they never do. The debt continues to grow, and there's approximately 8 billion ounces of gold on the surface of the Earth, but the money printing is faster than the gold is coming out of the ground or gold is above the ground. That lends it that real assets like gold become an attractive asset.

Speaker #3: And so we quite often like to look at gold in rookie terms in Chinese yuan terms. You can see they're up substantially in rookie terms for India.

Speaker #3: And when you put India and China together, it's 40% of the world's population. You throw in Southeast Asia, Middle East, you're over 50% of the world's population.

Speaker #3: Who buy gold for love? So the correlation there is the highest GDP per capita or the rising in these countries has demonstrated a continuous buying this century.

Speaker #3: Next, please. What's really important for me as a money manager and US global and US investors is our gold equity stocks are now starting to show up as momentum stocks in the past year.

Frank Holmes: I think that it's just an important part in a diversified portfolio to protect your family's legacy and have a long-term exposure, in particular to gold stocks. Next, please. One of the big factors to buying gold is not just the fear trade, which is negative interest rates and imbalance of MMT. It's been the rising GDP per capita for countries like China, India, Middle East, and Southeast Asia, where there's a huge cultural bias towards buying gold, especially on any corrections. We quite often like to look at gold in rupee terms or Chinese yuan terms. You can see they're up substantially in rupee terms for India. When you put India and China together, it's 40% of the world's population.

Speaker #3: This is fundamental. This happened in 2002. Went on for five years. And gold stocks far over from the overall market. So this is a very positive telling sign of growth momentum and revenue and cash flow.

Speaker #3: Next, please. So gold miners free cash flow is surged as you can see in this visual even though it shows you gold's corrected. The overall free cash flow of the industry continues to rise faster than the overall S&P 500.

Speaker #3: So that's another reason why many of these stocks show up at IPD. Next, please. Central banks continue to be networkers of gold since 2010.

Speaker #3: But we can see the real acceleration has taken place since 2020. And we saw a big increases in 2018 and '19, especially out of China.

Frank Holmes: You throw in Southeast Asia, Middle East, you're over 50% of the world's population who buy gold for love. The correlation there is the highest GDP per capita or the rising in these countries has demonstrated a continuous buying this century. Next, please. What's really important for me as a money manager and U.S. Global Investors is our gold equity stocks are now starting to show up as momentum stocks in the past year. This is fundamental. This happened in 2002, went on for 5 years, and gold stocks far outperformed the overall market. This is a very positive telling sign of growth momentum and revenue and cash flow. Next, please. Gold miners' free cash flow has surged.

Frank Holmes: You throw in Southeast Asia, Middle East, you're over 50% of the world's population who buy gold for love. The correlation there is the highest GDP per capita or the rising in these countries has demonstrated a continuous buying this century. Next, please. What's really important for me as a money manager and US Global Investors is our gold equity stocks are now starting to show up as momentum stocks in the past year. This is fundamental. This happened in 2002, went on for 5 years, and gold stocks far outperformed the overall market. This is a very positive telling sign of growth momentum and revenue and cash flow. Next, please. Gold miners' free cash flow has surged.

Speaker #3: When Xi Jinping became dictator for life, China kept buying back gold. And China continues even this past month of showing a robust buying of gold to try to legitimize their currencies as a global currency.

Speaker #3: Next, please. So we believe that government policies are a precursor to change and this is a classic example of what happened to silver when the US government named silver a US strategic mineral in November.

Speaker #3: We saw a huge increase in the futures market by hedge funds, buying silver. It had a hyperlinked run to 100, almost $20 an ounce.

Speaker #3: And then the big correction took place because of more government policies, where the CME increased margins by 64%. It's gone through the correction and now has come off that bottom.

Frank Holmes: As you can see in this visual, even though it shows you gold's corrected, the overall free cash flow of the industry continues to rise faster than the overall S&P 500. That's another reason why many of these stocks show up at IBD. Next, please. Central banks continue to be net purchasers of gold since 2010. We can see the real acceleration has taken place since 2020. We saw big increases in 2018 and 2019, especially out of China, when Xi Jinping became dictator for life. China kept buying back gold. China continues even this past month of showing a robust buying of gold to try to legitimize their currency as a global currency. Next, please.

Speaker #3: Next, please. So our approach to investing is a fundamental approach to smart beta, and it's well known now that we use the fundamental approach to investing, requiring a broad and deep understanding of global economic trends, policies, and geopolitical events.

Speaker #3: Our smart beta 2.0 investment strategy integrates advanced analytics with data-driven decisions, diversification, and management of risk. Momentum and revenue and cash flow growth are very important.

Speaker #3: High free cash flow yield is also very important to generate higher cash flow returns on invested capital. But what we have found is that different assets, different themes have different factors for sticking those stocks in that industry, that category.

Speaker #3: And further, we have found that the structure of the portfolio is very important when you do backtesting. Next, please. So building a smart thematic ETF platform, see war jets go AU, gold is up 300% to go AU since we launched it.

Frank Holmes: We believe that government policies are a precursor to change. This is a classic example what happened to silver when the US government named silver a US strategic mineral in November. We saw a huge increase in the futures market by hedge funds buying silver. It had a run to $100 and almost 20 an ounce. Then the big correction took place because of more government policies, with the CME increasing margins by 64%. It has gone through the correction and now has come off that bottom. Next, please. Our approach to investing is a quantamental approach to Smart Beta, and it's well known now that we use this quantamental approach to investing, requiring a broad and deep understanding of global economic trends, policies, and geopolitical events.

Speaker #3: Jets has done exactly what we thought would outperform the New York Stock Exchange Global Airline Index. It's now these flags are showing you that jets is listed in Columbia, in Mexico.

Speaker #3: It's also in Peru. So it was gold go AU is listed in Columbia, Mexico, and Peru. And recently C is listed in Peru and Mexico.

Speaker #3: These will eventually get listed all through Latin America. And I think it's important that when we look at C, it's far overperforming the S&P.

Speaker #3: This past year, even after the tariff spike on April the 2nd, 2025, the whole world fell by 5 trillion. And it's cloud right back.

Speaker #3: The S&P last year was up about 12%, but C was more than double that. And war, which is basically AI for the rebuilding of military—it's had a spectacular year. I think it's over 12 months now, it's up over 50%.

Frank Holmes: Our Smart Beta 2.0 investment strategy integrates advanced analytics with data-driven decisions, diversification, and measure risk. Momentum and revenue and cash flow growth are very important. High free cash flow yield is also very important to generate higher cash flow returns on invested capital. What we have found is that different assets, different themes have different factors for picking those stocks in that industry, that category. Further, we have found that the structure of the portfolio is very important when you do back testing. Next, please. Building a smart thematic ETF platform, SEA, WAR, JETS, GOAU. Gold is up 300%, GOAU since we launched it. JETS has done exactly what we thought it would outperform the NYSE Arca Global Airline Index.

Speaker #3: So it's done what it should have done. Which are based on our models. So we're happy with that. And jets is continues to fly over all the negative narratives.

Speaker #3: It falls short term with rising negative sentiment like the war in Iran. And immediately you start to see the airlines this past quarter coming out with numbers far, far superior to global GDP.

Speaker #3: And domestic GDP. So I think that the airlines are in a sweet spot of being almost a leading indicator for global economic activity, like C. Cargo carries 80% of all commodities and finished products.

Speaker #3: Heavy big products. And it really captures the arteries and veins of global travel. World trade, whereas yes, it's global travel. Next, please. Gain seen in war and C amid international conflict.

Frank Holmes: It's now these flags are showing you that JETS is listed in Colombia, it's in Mexico, it's also in Peru. GOGOLD, GOAU is listed in Colombia, Mexico, and Peru. Recently, SEA is listed in Peru and Mexico. These will eventually get listed all through Latin America. I think it's important that when we look at SEA, it's far outperformed the S&P this past year, even after the tariff spot on, 2 April 2025, the whole world fell by $5 trillion. Then as clawed right back, the S&P last year was up about 12%, but, SEA was more than double that. WAR, which is basically AI for the rebuilding of military, it's had a spectacular year. I think it's over 12 months now, it's up over 50%.

Speaker #3: Sell off quickly and then go on to rise—totally contra to what many people thought. Next, please. Military expenditures we keep highlighting. If a new all-time high is forecast to be 5% of GDP in the next couple of years.

Speaker #3: Which is now pushing 2.9 trillion dollars and it's pretty easy to figure out five industries which are going to be benefit. But really the focus for us has been AI in those industries like cybersecurity to making aircraft carriers or fighter jets what we do see is this century since 9/11 took place.

Speaker #3: You can see that there's been a rise in spending globally. But you can also really see that since Xi Jinping became dictator for life, America has increased its spending because China now has the largest military force in the world.

Frank Holmes: It's done what it should have done, which are based on our models, so we're happy with that. JETS just continues to fly over all the negative narrative. It falls short-term with rising negative sentiment like the war in Iran. Immediately you start to see the airlines this past quarter coming out with numbers far, far superior to global GDP, domestic GDP. I think that the airlines are a sweet spot of being almost a leading indicator for global economic activity like SEA. Cargo carries 80% of all commodities and finished products, heavy, big products. And it really captures the arteries and veins of global travel. Or, sorry, world trade, whereas JETS is global travel. Next, please.

Speaker #3: And maybe more military ships than the US. Next, please. So AI, we've mentioned many times in our webcasts, is really key for cybersecurity. But for me personally, it's also been really key for healthcare.

Speaker #3: I do the Galleria test every year that looks for over 200 precursors to looking for proteins for precursors to cancer. And now the MRI that can look for tumors in your body that normal blood tests may not capture.

Speaker #3: They could be the stages, the stepping staging for cancer. So AI is really important for healthcare, cybersecurity, but key here for anyone listening is military spending.

Speaker #3: In 2000, in 1990, '89, 1999 under George Sr., America went in and arrested an early ago, the president of Panama, for narco dealing and other corrupt activities.

Frank Holmes: Gains seen in WAR and SEA amid international conflict sell off quickly and then go on to rise. Totally contrary to what many people thought. Next, please. Military expenditures, we keep highlighting, have hit a new all-time high. It's forecast to be 5% of GDPs in the next couple of years, which is now pushing $2.9 trillion. It's pretty easy to figure out the 5 industries which are gonna be benefit. Really the focus for us has been AI in those industries like cybersecurity to making aircraft carriers or fighter jets. What we do see this century since 9/11 took place, that you can see that there's been a rise in spending, globally.

Speaker #3: But 23 American soldiers were killed. Going into Venezuela was much more tricky because they had stocked themselves with a lot of Russian and Chinese surveillance equipment, radar equipment.

Speaker #3: But what's really key here is that no Americans were killed as we captured Maduro. So the idea of using AI is really quite profound when it looks at national security.

Speaker #3: Next, please. And this has been our theme for the creation of war, which we're showing you here is these AI data centers. Our hyperlinking information between a Delta force on the ground to an aircraft carrier to a fighter jet in the sky to data from satellite to a helicopter.

Frank Holmes: You can also really see, since Xi Jinping became dictator for life, that America has increased its spending because China now has the largest military force in the world, and maybe more military ships than the US. Next, please. AI, we've mentioned many times in our webcasts, is really key for cybersecurity. For me personally, it's also been really key for healthcare. I do the Galleri test every year that looks for over 200 precursors to cancer. Now the MRI that can look for tumors in your body that normal blood tests may not capture. They could be the stage, the staging for cancer. AI is really important for healthcare, cybersecurity, but key here for everyone listening is military spending.

Speaker #3: Take bringing in and taking out Delta forces. So the use of AI will continue to be very significant for national security in addition to healthcare.

Speaker #3: Next, please. And we believe we have the products are lined up with that, like recognizing the future demand accelerated with compute and graphic processing in NVIDIA and chips.

Speaker #3: Here I am with Jensen the CEO of NVIDIA, the largest market cap company in the world. And so it continues as we as our investments in Hive is as it builds out its AI infrastructure.

Speaker #3: Next, please. So we also look at some of these alternative investments that are illiquid. They wouldn't qualify for our funds. And we participate in them so that we have our nose into what's going on in the world outside of listed public companies.

Frank Holmes: In 1989 under George H. W. Bush, America went in and arrested Noriega, the president of Panama, for narco dealing and other corrupt activities, but 23 American soldiers were killed. Going into Venezuela was much more tricky because they had stocked themselves with a lot of Russian and Chinese surveillance equipment, radar equipment. What's really key here is that no Americans were killed as we captured Maduro. The idea of using AI is really quite profound when it looks at national security. Next, please. This has been our theme for the creating of WAR.

Speaker #3: And so we were able to participate in investment series. And it was a 500,000 investment. And now it's looking to go public. And the estimated value for our investment is up sevenfold.

Speaker #3: These things don't happen sometimes. There's lumps and losses in this speculation. But we as a company, as an investment company, not only invest in our own funds, we also invest in some real estate and the creation of new companies like we launched the creation of Hive, we also make these other special investments.

Speaker #3: So that we are in the information flow of where technology is going. Next, please. Now I'm going to turn it over to hardworking Lisa Callicotte to give you more granularity on the financials for this past quarter.

Frank Holmes: What we're showing you here is these AI data centers are hyperlinking information between a Delta Force on the ground to a aircraft carrier, to a fighter jet in the sky, to data from a satellite, to a helicopter, bringing in and taking out Delta Forces. The use of AI will continue to be very significant for national security in addition to healthcare. Next, please. We believe we have the products that are lined up with that, like recognizing the future demand accelerated with compute and graphic processing, NVIDIA and chips. Here I am with Jensen, the CEO of NVIDIA, the largest market cap company in the world. It continues as we, as our investments in HIVE, as it builds out its AI infrastructure.

Speaker #3: Lisa.

Speaker #2: Thank you, Frank. Good morning. On the next slide, you can see that we're going to start with our financial highlights. Average assets under management were 1.63 billion for the quarter ending March 31st, 2026.

Speaker #2: This is a 15% increase from the same quarter a year ago. Operating revenues were 2.8 million, an increase of approximately 31% compared to the same quarter last year.

Speaker #2: And we had quarterly net income of 2.6 million or 23 cents per share. As we move on to the next slide, this slide is a reminder of our two main components of our earnings.

Speaker #2: We have operational earnings that consist of our advisory services. And we have other earnings, which mainly consist of realized and unrealized gains and losses on our investment holdings.

Speaker #2: But both the advisory earnings and the investment gains and losses fluctuate based on. On the next slide, we're going to go into more detail about our results of operation.

Speaker #2: Here we see that our total revenues were 2.7 million for the quarter, which is an increase of 659,000 or 31% from the 2.1 million in the same quarter last year.

Frank Holmes: We also look at some of these alternative investments that are illiquid, they wouldn't qualify for our funds. We participate them so that we have our nose into what's going on in the world outside of listed public companies. We were able to participate InvestX series, and it was a $500,000 investment, and now it's looking to go public and the estimated value for our investment is up sevenfold. These things don't happen. Sometimes there's lumps and losses in this speculation. We as a company, as an investment company, not only invest in our own funds, we also invest in some real estate and the creation of new companies, like we launched the creation of HIVE.

Speaker #2: The increase is primarily due to higher assets under management, especially in our gold mutual funds and our gold ETFs. Operating expenses for the current quarter were 2.7 million.

Speaker #2: And decrease of 322,000 or 11% primarily due to decreases in employee compensation of 143,000 or 11%. And 138,000 or 57% decline in advertising expenses, which was primarily due to elevated expenses in the prior year related to the launching of our war ETF.

Frank Holmes: These things don't happen. Sometimes there's lumps and losses in this speculation. We as a company, as an investment company, not only invest in our own funds, we also invest in some real estate and the creation of new companies, like we launched the creation of HIVE. We also make these other special investments so that we are in the information flow of where technology is going. Next, please. Now I'm gonna turn it over to hardworking Lisa Callicotte to give you more granularity on the financials for this past quarter. Lisa?

Speaker #2: On the next slide, we can see our operating income for the quarter ending March 31st, 2026 is 88,000. And that's compared to a loss of 893,000 for the same quarter in fiscal year 2025.

Speaker #2: Other income increased $1.1 million compared to the prior year, mainly due to net unrealized gains in equity securities of $1.3 million in the current period, compared to unrealized losses of $50,000 in the same quarter in the prior year.

Frank Holmes: We also make these other special investments so that we are in the information flow of where technology is going. Next, please. Now I'm gonna turn it over to hardworking Lisa Callicotte to give you more granularity on the financials for this past quarter. Lisa?

Speaker #2: This was a favorable change of 1.4 million. Other income of the quarter includes a gain in the investment series investment, Frank discussed earlier. In the current period, the company recognized benefit compared to a tax expense of 137,000 in the March 31st, 2025 quarter.

Lisa Callicotte: Thank you, Frank. Good morning. On the next slide, you can see that we're gonna start with our financial highlights. Average assets under management were $1.63 billion for the quarter ending 31 March 2026. This is a 15% increase from the same quarter a year ago. Operating revenues were $2.8 million, an increase of approximately 31% compared to the same quarter last year. We had quarterly net income of $2.6 million or $0.23 per share. As we move on to the next slide, this slide is a reminder of our two main components of our earnings. We have operational earnings that consist of our advisory services, and we have other earnings, which mainly consist of realized and unrealized gains and losses on our investment holdings.

Speaker #2: This favorable change of $981,000 was primarily driven by discrete tax items, including a federal tax adjustment related to the tax rate of certain Hive convertible securities, and a decrease in evaluation allowance.

Speaker #2: In the December quarter, we recorded a tax expense related to the tax accounting method change. And we expected an offsetting benefit that was recorded in the March quarter.

Speaker #2: Net income after taxes for the quarter is 2.7 million or 23 cents per share. Which is a favorable change of 3.1 million compared to the net loss of 382,000 or a loss of 3 cents per share for the quarter ending the same quarter ending fiscal year 2025.

Lisa Callicotte: Both the advisory earnings and the investment gains and losses fluctuate based on market forces. On the next slides, we are going to go into more detail about our results of operation. Here we see that our total revenues were $2.7 million for the Q, which is an increase of $659 thousand, or 31%, from the $2.1 million the same Q last year. The increase is primarily due to higher assets under management, especially in our gold mutual funds and our gold ETF, GOAU.

Speaker #2: On the next slide, and the following slide, you see that we have a strong balance sheet that includes high levels of cash and securities.

Speaker #2: Moving on to the next slide, you can see our total liabilities are $2.9 million. And then the following slide shows our shareholder equity. The company has a net working capital of $36.2 million.

Lisa Callicotte: Operating expenses for Q1 were $2.7 million, an decrease of $322,000 or 11%, primarily due to decreases in employee compensation of $143,000 or 11%, and $138,000 or 57% decline in advertising expenses, which was primarily due to elevated expenses in the prior year related to the launching of our WAR ETF. On the next slide, we can see our operating income for Q1 ending 31 March 2026 is $88,000, and that's compared to a loss of $893,000 for the same Q1 in fiscal year 2025.

Speaker #2: And a current ratio of 20.9 to 1. With that, I'll hand it over to Holly to talk about our marketing.

Speaker #3: Thank you, Lisa. All right. The first slide in my section highlights several events that our marketing and investments team have recently attended as well as one that we are looking forward to in June.

Speaker #3: So in April, Frank Holmes delivered a keynote presentation at the Swiss Mining Institute conference in Panama, where he also had the opportunity to meet one-on-one with management teams from many of the precious metals companies that we own.

Speaker #3: And then in May, members of our team attended the Weiss Investment Summit where Frank also spoke on the intersection of gold, defense, and AI.

Lisa Callicotte: Other income increased $1.1 million compared to prior year, mainly due to net unrealized gains in equity securities of $1.3 million in the current period, compared to unrealized losses of $50,000 in the same quarter in the prior year. This was a favorable change of $1.4 million. Other income for the quarter includes a $1.9 million unrealized gain in the InvestX series investment Frank discussed earlier. In the current period, the company recognized $844,000 tax benefit compared to a tax expense of $137,000 in the Q1 2025. This favorable change of $981,000 was primarily driven by discrete tax items, including a federal tax adjustment related to the tax treatment of certain HIVE convertible securities and a decrease in evaluation allowance.

Speaker #3: Three themes we believe are becoming increasingly interconnected. And also, we are excited to once again represent U.S. Global at Wealth Management Edge in June.

Speaker #3: Which I believe will be our third consecutive year attending. And that event provides valuable opportunity to connect with advisors and peers across the ETF industry.

Speaker #3: All right. On the next slide, you will see our team representing US Global investors and NASDAQ-listed company under the ticker symbol GROW at the official NASDAQ Texas kickoff event.

Speaker #3: The gathering brought together business and economic leaders to discuss the future of innovation, growth, and capital markets in Texas and the important role our state can play going forward.

Lisa Callicotte: In Q4, we recorded a tax expense related to the tax accounting method change, and we expected an offsetting benefit that was recorded in Q1. Net income after taxes for the quarter is $2.7 million or $0.23 per share, which is a favorable change of $3.1 million compared to the net loss of $382,000, or a loss of $0.03 per share for the quarter ending the same quarter ending fiscal year 2025. On the next slide and the following slide, you see that we have a strong balance sheet that includes high levels of cash and securities. Moving on to the next slide, you can see our total liabilities are $2.9 million. The following slide shows our shareholders' equity.

Speaker #3: All right. Moving on. The next slide highlights our commitment to delivering timely and original market insights through our YouTube and TikTok channels. Which both are powerful platforms for engaging new and long-time shareholders.

Speaker #3: So if you've not seen any of these, we do encourage you to visit our YouTube page and our TikTok page and subscribe to our YouTube channel to stay up to date on the latest content.

Speaker #3: All right. Moving on to the next slide. We always like to recap the most read Frank Talcott blog posts during the recent quarter. As you can see here, the top themes really focused around commodities.

Lisa Callicotte: On the next slide and the following slide, you see that we have a strong balance sheet that includes high levels of cash and securities. Moving on to the next slide, you can see our total liabilities are $2.9 million. The following slide shows our shareholders' equity. The company has a net working capital of USD 36.2 million and a current ratio of 20.9 to 1. With that, I'll hand it over to Holly Schoenfeldt to talk about our marketing.

Speaker #3: Particularly oil prices and gold prices. And investors are focusing on gold and oil in 2026 because both of these assets are tied to several major macro themes shaping the markets right now.

Speaker #3: Inflation concerns, geopolitical instability, fiscal deficits, and it goes on. So if you're not a subscriber to Frank Talcott, I highly recommend you do so at usfunds.com.

Lisa Callicotte: The company has a net working capital of USD 36.2 million and a current ratio of 20.9 to 1. With that, I'll hand it over to Holly Schoenfeldt to talk about our marketing.

Speaker #3: And it is completely free. Finally, on my last slide, I do encourage you to follow US Global Investors across social media. We are on Twitter or X now.

Holly Schoenfeldt: Thank you, Lisa. All right. The first slide in my section highlights several events that our marketing and investments team have recently attended, as well as one that we are looking forward to in June. In April, Frank Holmes delivered a keynote presentation at the Swiss Mining Institute conference in Panama, where he also had the opportunity to meet one-on-one with management teams from many of the precious metals companies that we own. In May, members of our team attended the Weiss Investment Summit, where Frank also spoke on the intersection of gold, defense, and AI, three themes we believe are becoming increasingly interconnected.

Speaker #3: LinkedIn, YouTube, Instagram, Facebook, and TikTok. 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 GROW and our funds, but the broader market as well.

Holly Schoenfeldt: In April, Frank Holmes delivered a keynote presentation at the Swiss Mining Institute conference in Panama, where he also had the opportunity to meet one-on-one with management teams from many of the precious metals companies that we own. In May, members of our team attended the Weiss Investment Summit, where Frank also spoke on the intersection of gold, defense, and AI, three themes we believe are becoming increasingly interconnected. We are excited to once again represent U.S. Global at Wealth Management EDGE in June, which I believe will be our third consecutive year attending. That event provides a valuable opportunity to connect with advisors and peers across the ETF industry. On the next slide, you will see our team representing U.S. Global Investors, a Nasdaq-listed company under the ticker symbol GROW at the official Nasdaq Texas kickoff event.

Speaker #3: All right. As a reminder to our audience, if you have any questions today, please email those to info@usfunds.com. And we will gladly follow up with you to get anything clarified that you may need more information on.

Holly Schoenfeldt: We are excited to once again represent US Global at Wealth Management EDGE in June, which I believe will be our third consecutive year attending. That event provides a valuable opportunity to connect with advisors and peers across the ETF industry. On the next slide, you will see our team representing US Global Investors, a Nasdaq-listed company under the ticker symbol GROW at the official Nasdaq Texas kickoff event.

Holly Schoenfeldt: The gathering brought together business and economic leaders to discuss the future of innovation, growth, and capital markets in Texas and the important role our state can play going forward. Moving on. The next slide highlights our commitment to delivering timely and original market insights through our YouTube and TikTok channels, which both are powerful platforms for engaging new and longtime shareholders. If you've not seen any of these, we do encourage you to visit our YouTube page and our TikTok page and subscribe to our YouTube channel to stay up-to-date on the latest content. Moving on to the next slide. We always like to recap the most-read Frank Talk blog posts during the recent quarter. As you can see here, the top themes really focused around commodities, particularly oil prices and gold prices.

Holly Schoenfeldt: If you've not seen any of these, we do encourage you to visit our YouTube page and our TikTok page and subscribe to our YouTube channel to stay up-to-date on the latest content. Moving on to the next slide. We always like to recap the most-read Frank Talk blog posts during the recent quarter. As you can see here, the top themes really focused around commodities, particularly oil prices and gold prices.

Holly Schoenfeldt: Investors are focusing on gold and oil in 2026 because both of these assets are tied to several major macro themes shaping the markets right now: inflation concerns, geopolitical instability, fiscal deficits, and it goes on. If you're not a subscriber to Frank Talk, I highly recommend you do so at usfunds.com, and it is completely free. On my last slide, I do encourage you to follow U.S. Global Investors across social media. We are on Twitter or X now, LinkedIn, YouTube, Instagram, Facebook, and TikTok. 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 GROW and our funds, but the broader market as well. All right.

Holly Schoenfeldt: We are on Twitter or X now, LinkedIn, YouTube, Instagram, Facebook, and TikTok. 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 GROW and our funds, but the broader market as well. All right. As a reminder to our audience, if you have any questions today, please email those to info@usfunds.com, we will gladly follow up with you to get anything clarified that you may need more information on. Thank you so much for tuning in today. This concludes our webcast summarizing the Q3 of 2026.

Holly Schoenfeldt: As a reminder to our audience, if you have any questions today, please email those to info@usfunds.com, we will gladly follow up with you to get anything clarified that you may need more information on. Thank you so much for tuning in today. This concludes our webcast summarizing the Q3 of 2026.