we are going to start increasing our exposure back to the Bitcoin ecosystem
— Frank Holmes
03Detailed Report
GROW
Company GROW
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 26, 2026
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Executive Summary
US Global Investors Inc (GROW) reported Q3 2025 operating results that reflect the ongoing transition and scale challenges typical of a small-cap asset manager focused on thematic investment products. Revenue for the quarter was $2.103 million, with a gross profit of $0.813 million and an EBITDA of $(0.893) million, yielding an operating loss of $(0.893) million and a net loss of $(0.382) million. Earnings per share stood at $(0.03). Assets under management were $1.4 billion, supporting a diversified lineup of funds, including JETS (airlines), WAR (AI/cyber/defense), and gold-focused strategies. The company maintained a strong liquidity position (current ratio ~21.7:1) and a cash balance of $26.26 million, with no long-term debt reported. Management emphasized an active capital-allocation program (stock buybacks and dividends) and a strategic pivot toward expanding exposure to the Bitcoin ecosystem, alongside ongoing Smart Beta 2.0 portfolio recalibration. The management team reiterated confidence in Gold as a safe-haven asset and outlined plans to redeploy capital from the paid-down 8% HIVE convertible debenture into Bitcoin and HIVE, aiming to capture growth opportunities in crypto mining and digital asset ecosystems. The commentary also highlighted a longer-term belief in the airline/growth theme (JETS) and a secular backdrop for gold and gold equities, supported by Basel III considerations for physical gold. Near-term guidance suggests a potential bottom in the cycle within the next 60 days, with a continued emphasis on M&A, expansion of the client base, and selective reallocation to Bitcoin-related investments. Investors should monitor fund inflows, fund-structure changes (Smart Beta 2.0 backtesting discipline), and the evolving regulatory environment for crypto.
Key Performance Indicators
Revenue
Increasing
2.10M
QoQ: -5.74% | YoY: 165.03%
Gross Profit
Increasing
813.00K
38.66% margin
QoQ: -19.10% | YoY: 124.82%
Operating Income
Decreasing
-893.00K
QoQ: -65.68% | YoY: -65.99%
Net Income
Decreasing
-382.00K
QoQ: -344.19% | YoY: -991.43%
EPS
Decreasing
-0.03
QoQ: -368.75% | YoY: -1 100.00%
Revenue Trend
Margin Analysis
Financial Highlights
Performance snapshot (quarter ended 2025-03-31):
- Revenue: $2.103 million (YoY growth not stated in company commentary; QoQ change: -19% from $2.604 million in Q3 2024)
- Gross Profit: $0.813 million; Gross margin: 38.66%
- Operating Expenses: $1.726 million; EBITDA: $(0.893) million; EBIT/Operating Income: $(0.893) million; Operating Margin: -42.46%
- Other Income/(Expense), Net: $0.648 million; Income Before Tax: $(0.245) million; Income Tax Expense: $0.137 million; Net Income: $(0.382) million; Net Margin: -18.16%
- EPS (GAAP): $(0.03) per share; Diluted EPS: $(0.03)
- Weighted Average Shares Outstanding: 13.02 million (basic), 13.02 million (diluted)
- AUM: $1.40 billion;assets under management
- Cash and Cash Equivalents: $26.26 million; Total Assets: $48.76 million
- Current Ratio: 21.69x; No long-term debt; Total Debt: $0.017 million; Net Debt: $(26.245) million (net cash position)
- Free Cash Flow: $(0.424) million; Operating Cash Flow: $(0.425) million
- Shareholder Activity: Dividends paid and stock repurchases contributed to a total shareholder yield around 10.5% (per ratio metrics), reflecting ongoing capital return strategy
Quarterly comparison highlights (from earnings call and 10-Q data):
- Revenue declined 19% QoQ versus the prior quarter; asset-level headwinds largely tied to lower JETS AUM and market conditions impacting advisory revenues. Management cited a weaker short-term cycle in JETS-based funds but remained constructive on the longer-term growth trajectory of gold, crypto, and defense-themed products.
- EBITDA and net income remained negative, reinforcing the ongoing profitability/scale challenge in a small cap asset manager with niche Smart Beta 2.0 strategies. The company remains focused on cost discipline, cash preservation, and strategic buybacks as a means to create value over the cycle.
- Balance sheet remained highly liquid with robust cash, minimal liabilities, and no long-term debt, enabling strategic flexibility to fund growth initiatives and capital returns.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.10M
165.03%
-5.74%
Gross Profit
813.00K
124.82%
-19.10%
Operating Income
-893.00K
-65.99%
-65.68%
Net Income
-382.00K
-991.43%
-344.19%
EPS
-0.03
-1 100.00%
-368.75%
Key Financial Ratios
Gross Profit Margin
Fair
38.70%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
-0.43%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.18%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
21.69
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-19.26x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.64x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.
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