US Global Investors Inc (0LHX.L) Q3 2024 Earnings Report

US Global Investors Inc (0LHX.L) reported QQ3 2024 results showing meaningful top-line contraction and a negative gross profit that culminated in a net loss for the quarter. Revenue totaled USD 2.593 million, down 28.45% YoY and 7.98% QoQ, while gross profit was negative USD 3.275 million, yielding a gross margin of -1.26%. The company recorded an operating loss of USD 0.538 million and an EBITDA of USD -0.497 million, with a net income of USD -0.035 million and basic/diluted earnings per share of USD -0.0025. These results reflect a challenging profitability environment despite a cash-rich balance sheet.

The balance sheet remains exceptionally liquid with cash and equivalents of USD 28.46 million and negligible debt, contributing to a substantial stockholders’ equity base of USD 49.846 million. Total assets stand at USD 52.772 million, while total liabilities are a modest USD 2.926 million. Despite weak quarterly profitability, the company generated negative operating cash flow of USD -0.057 million and negative free cash flow of USD -0.125 million, driven by working capital movements and capital expenditures of USD 0.068 million. The firm’s net cash position and light leverage provide strategic optionality for pursuing growth initiatives, share repurchases, or balance sheet optimization if market conditions improve.

Looking ahead, the absence of formal forward guidance in the provided data constrains a precise forecast. Management commentary (where available) would be critical to gauge expectations on AUM traction, product expansion (e.g., mutual funds, ETFs), and cost discipline. Given the small scale of current revenue and the sensitivity to market cycles, material de-risking will rely on revenue diversification, disciplined expense management, and potential accretive actions leveraging the ample liquidity.