U.S. Global Investors Reports 12% Sequential Growth in Assets Under Management in Q2 of Fiscal 2026

Rhea-AI Summary

U.S. Global Investors (NASDAQ: GROW) reported Q2 fiscal 2026 results for the quarter ended Dec 31, 2025: AUM $1.5B (12% sequential, +5% YoY) and $1.7B AUM as of Feb 19, 2026. Operating revenue rose 11.5% QoQ; income before taxes was $535k versus a prior-year loss. A $1.3M tax expense tied to HIVE convertible securities elevated the effective tax rate; the company expects a $1.3M offset in the March 31, 2026 quarter pending IRS review. The Board approved a $0.0075/month dividend for Jan–Mar 2026 and repurchased 262,195 shares in the quarter. Cash was $25.2M with net working capital $36.7M.

AI-generated analysis. Not financial advice.

Positive

• AUM +12% sequential growth to $1.5B
• Operating revenue +11.5% quarter-over-quarter
• Income before taxes improved to $535k
• Board-approved dividend of $0.0075 per share monthly (Jan–Mar 2026)
• Share repurchases of 262,195 shares during the quarter
• $25.2M in cash supporting liquidity

Negative

• Reported net loss of $846k for the quarter
• Income tax expense of $1.381M tied to HIVE securities
• Expected $1.3M tax benefit not recognized in quarter; IRS review pending

News Market Reaction – GROW

+1.84%

1 alert

+1.84% News Effect

On the day this news was published, GROW gained 1.84%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Quarter-end AUM: $1.5 billion AUM post-quarter: $1.7 billion Operating revenues: $2,510 thousand +5 more

8 metrics

Quarter-end AUM $1.5 billion As of Dec 31, 2025; +12% QoQ, +5% YoY

AUM post-quarter $1.7 billion Total AUM as of Feb 19, 2026

Operating revenues $2,510 thousand Three months ended Dec 31, 2025 vs $2,231K prior year

Net income (loss) $(846) thousand Three months ended Dec 31, 2025 vs $(86)K prior year

Income before taxes $535 thousand Q2 FY26 vs loss before taxes of $(116)K in Q2 FY25

Tax expense Approximately $1.3 million Q2 FY26 tax expense tied to HIVE convertible securities

Shareholder yield 9.89% As of Dec 31, 2025; compared to five- and ten-year Treasuries

Monthly dividend $0.0075 per share Per month, approved for Jan–Mar 2026

Market Reality Check

Price: $2.64 Vol: Volume 1,315 is only 0.01...

low vol

$2.64 Last Close

Volume Volume 1,315 is only 0.01x the 20-day average of 109,911, indicating very light trading ahead of/around the release. low

Technical Price at $3.17 is trading above the 200-day MA of $2.52, reflecting a pre-news uptrend.

Peers on Argus

GROW’s modest 0.63% gain contrasted with mixed peers: EQS (-0.01), BCG (-0.43), ...

1 Up

GROW’s modest 0.63% gain contrasted with mixed peers: EQS (-0.01), BCG (-0.43), CUBA (-1.18), RAND (-1), while RMCO was up (1.28). Only one loosely related peer (MGLD, +2.80%) appeared in momentum scans.

Historical Context

5 past events · Latest: Dec 30 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 30	ETF strategy update	Positive	+0.0%	GOAU ETF moved to active management and WAR ETF hit one-year mark.
Dec 12	Dividend & outlook	Positive	-1.6%	Maintained monthly dividend and highlighted strong airline and commodity trends.
Nov 12	Earnings – Q1 FY26	Positive	-2.9%	Reported rebound to profitability with higher revenues and investment income.
Nov 06	Webcast announcement	Neutral	-2.9%	Scheduled webcast to discuss fiscal 2025 results and outlook.
Oct 28	Community partnership	Neutral	+0.0%	Announced multi‑year partnership and funding for Keystone School’s Model UN.

Pattern Detected

Recent positive operational and dividend news has often seen flat or negative next-day moves, suggesting a tendency for the stock to underreact or fade good news.

Recent Company History

Over the last few months, GROW highlighted ETF strategy evolution, dividend continuity, and a return to profitability. On Nov 12, 2025, it reported Q1 fiscal 2026 profitability with higher investment income and strong liquidity, yet the stock fell 2.88%. A December dividend update and sector commentary saw a 1.62% decline. Strategic ETF changes and a school partnership in late 2025 produced flat price reactions. Today’s Q2 2026 update continues the theme of improving operations and active capital returns.

Market Pulse Summary

This announcement underscores rising AUM, improved pre-tax profitability, and active shareholder ret...

Analysis

This announcement underscores rising AUM, improved pre-tax profitability, and active shareholder returns through dividends and buybacks. At the same time, a roughly $1.3 million tax expense and non-cash valuation allowance produced a quarterly net loss, adding complexity to the earnings picture. Investors may track how the expected tax benefit for the March 2026 quarter, continued AUM growth from approximately $1.5 billion to $1.7 billion, and ongoing capital return policies influence future results and capital allocation flexibility.

Key Terms

assets under management, revenue passenger kilometers, available seat kilometers, load factor, +4 more

8 terms

assets under management financial

"Total assets under management (AUM) were approximately $1.5 billion at quarter-end"

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

revenue passenger kilometers technical

"passenger demand, measured in revenue passenger kilometers (RPKs), rose 5.3% versus 2024"

Revenue passenger kilometers (RPK) measures the total distance flown by paying passengers, calculated by multiplying each passenger by the number of kilometers they travel. Investors treat it like a demand gauge—rising RPKs indicate more people are flying farther, which usually signals stronger ticket revenue and helps assess whether an airline’s route choices, pricing and capacity are translating into real sales.

available seat kilometers technical

"capacity (available seat kilometers, or ASKs) increased 5.2%"

Available seat kilometers (ASKs) measure an airline’s passenger capacity by multiplying the number of seats the airline offers for sale by the distance those seats are flown, expressed in kilometers. Investors watch ASKs like a retailer’s shelf space: rising ASKs signal more supply or network growth, while comparisons with actual passenger demand and revenue per kilometer reveal how efficiently that capacity is being filled and how it may affect future revenue and costs.

load factor technical

"The global passenger load factor reached 83.6%—a record for full-year traffic"

Load factor is a measure of how efficiently a transportation service, such as a plane, train, or bus, fills its available seats or space over a period of time. It is calculated by dividing the actual number of passengers or usage by the total available capacity. A higher load factor indicates better utilization, which can lead to more profitable operations and is important for investors assessing the efficiency and profitability of transportation companies.

Internal Revenue Service regulatory

"the Company filed a tax accounting method change with the Internal Revenue Service (IRS)"

The Internal Revenue Service is the U.S. federal agency that administers and enforces tax laws, collects taxes, issues refunds, and provides official guidance on tax rules. For investors, its actions are important because tax assessments, audits, rule changes or interpretations can change a company’s after-tax profits, cash flow and legal risk—similar to how a referee’s calls and rulebook affect the outcome in a game.

share repurchase program financial

"The Company maintains a share repurchase program, authorized by the Board"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

Form 10-Q regulatory

"file its Quarterly Report on Form 10-Q for the quarter ended December 31, 2025"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

Form 13F regulatory

"filed a Form 13F reporting institutional holdings totaling $933,957,324"

A Form 13F is a quarterly filing that large investment managers must submit to disclose their holdings in publicly traded stocks and certain other securities. It acts like a peek into the portfolios of big investors, helping other market participants see what large players are buying or selling and offering clues about investment trends, crowded trades, and potential market impact.

AI-generated analysis. Not financial advice.

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SAN ANTONIO, Feb. 20, 2026 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm¹ with longstanding experience in global markets and specialized sectors, today reported financial results for the second quarter of fiscal 2026 ended December 31, 2025. Total assets under management (AUM) were approximately $1.5 billion at quarter-end, representing a 12% increase from the prior quarter and 5% higher than AUM at the end of the year-ago quarter. This rose to $1.7 billion in total AUM as of Thursday, February 19. Operating revenue increased by $259,000, or 11.5%, compared to the prior quarter, and by $279,000 compared to the quarter ended December 31, 2024. Additionally, the Company’s expenses decreased by $172,000 in the current quarter compared to the same quarter last year. The Company’s income before taxes was $535,000, a significant improvement from a loss before taxes of $116,000 in the quarter ended December 31, 2024.

During the three months ended December 31, 2025, the Company recorded a tax expense of approximately $1.3 million related to the tax treatment of certain HIVE Digital Technologies Ltd. (“HIVE”) convertible securities. However, the Company expects an offsetting tax benefit of $1.3 million in the quarter ending March 31, 2026. The tax expense included a non-cash valuation allowance of approximately $471,000 against deferred tax assets tied primarily to capital loss carryforwards. As a result, the Company’s effective tax rate for the quarter was significantly elevated. After quarter-end, the Company filed a tax accounting method change with the Internal Revenue Service (IRS) related to the treatment of these HIVE securities. Because the filing occurred after December 31, 2025, the anticipated $1.3 million benefit was not reflected in the December quarter results and remains subject to IRS review.

Shareholder Value Initiatives

The Company’s shareholder yield as of December 31, 2025, was 9.89%, more than double the yield on the five-year and 10-year Treasury bonds on the same trading day.²

The Company’s Board of Directors (the “Board”) approved payment of a $0.0075 per share per month dividend beginning in January 2026 and continuing through March 2026.

The Company maintains a share repurchase program, authorized by the Board, allowing for the annual purchase of up to $5 million of its outstanding common shares on the open market, as market and business conditions permit. The program has been in place since December 2012 and has been renewed each calendar year by the Board. During the three-month period ended December 31, 2025, the Company repurchased 262,195 shares.

Travel Demand Remains Resilient as Capacity Stays Constrained

The Company is pleased to report that air travel demand continued to prove resilient in 2025, even as airlines and airports faced persistent capacity constraints. The International Air Transport Association (IATA) reported that full-year passenger demand, measured in revenue passenger kilometers (RPKs), rose 5.3% versus 2024, while capacity (available seat kilometers, or ASKs) increased 5.2%. The global passenger load factor reached 83.6%—a record for full-year traffic—while international demand rose 7.1%, with a record international load factor of 83.5%.³

This strength has been visible across major markets. Airports Council International (ACI) Europe reported that passenger traffic across Europe’s airports increased 4.4% in 2025, with airports welcoming an additional 100 million passengers and reaching a new record of 2.6 billion passengers.⁴ Meanwhile, Airlines Reporting Corporation (ARC) data showed U.S.-based travel agency air ticket sales totaled over $100 billion in 2025, also a record.⁵

“Consumers are still prioritizing experiences, and the data continues to show that air travel remains one of the most resilient categories in the global economy,” said Frank Holmes, the Company’s Chief Executive Officer (CEO) and Chief Investment Officer (CIO). “Even with capacity constraints, the industry has been setting records for demand and load factors. That’s a constructive backdrop for investors looking at the long-term growth potential of the airlines and travel ecosystem.”

Gold Demand Breaks 5,000 Tons as Investors Seek Safe Haven

Gold demand and prices both reached historic milestones in 2025. According to the World Gold Council (WGC), total gold demand exceeded 5,000 metric tons for the first time ever, and the record-setting run in gold prices produced an unprecedented annual value of approximately $555 billion, up 45% year-over-year. The WGC also noted that central bank purchases totaled 863 tons in 2025, during which the gold price set 53 new all-time highs.⁶

Looking ahead, several major market observers expect gold to remain supported by continued diversification and macro uncertainty. Goldman Sachs raised its year-end 2026 gold forecast to $5,400 per ounce, citing continued demand from central banks as well as private sector diversification.⁷

“Gold has continued to do what it has historically done best—serve as a portfolio hedge during periods of macroeconomic and geopolitical uncertainty,” said Mr. Holmes. “When demand breaks records and central banks remain large buyers, it reinforces gold’s role as a strategic asset. Against that backdrop, we believe investors will continue to look closely at gold exposure, including the potential upside in quality precious metals miners.”

Healthy Liquidity and Capital Resources

As of December 31, 2025, the Company had net working capital of approximately $36.7 million. With approximately $25.2 million in cash and cash equivalents, the Company has adequate liquidity to meet its current obligations, in addition to investments in our funds.

Tune In to the Earnings Webcast

The Company has scheduled a webcast for 7:30 a.m. Central time on Monday, February 23, 2026, to discuss the Company’s key financial results for the quarter. Frank Holmes will be accompanied on the webcast by Lisa Callicotte, chief financial officer, and Holly Schoenfeldt, director of marketing. Click to register for the earnings webcast or visit www.usfunds.com for more information.

Selected Financial Data (unaudited): (dollars in thousands, except per share data)

	Three months ended
		12/31/2025			12/31/2024
Operating Revenues	$2,510			$2,231
Operating Expenses		2,598			2,770
Operating Income (Loss)		(88)			(539)
Total Other Income (Loss)		623			423
Income (Loss) Before Income Taxes		535			(116)
Income Tax Expense (Benefit)		1,381			(30)
Net Income (Loss)	$(846)			$(86)
Net Income (Loss) Per Share (Basic and Diluted)	$(0.07)			$(0.01)
Avg. Common Shares Outstanding (Basic)		12,762,003			13,497,961
Avg. Common Shares Outstanding (Diluted)		12,765,706			13,498,306
Avg. Assets Under Management (Billions)	$1.5			$1.5

About U.S. Global Investors, Inc.

The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides investment management and other services to U.S. Global Investors Funds and U.S. Global ETFs.

Forward-Looking Statements and Disclosure

This news release and other statements by U.S. Global Investors may include certain “forward-looking statements,” including statements relating to revenues, expenses and expectations regarding market conditions. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “opportunity,” “seeks,” “anticipates” or other comparable words. Such statements involve certain risks and uncertainties and should be read with corporate filings and other important information on the Company’s website, www.usfunds.com, or the Securities and Exchange Commission’s website at www.sec.gov.

These filings, such as the Company’s annual report and Form 10-Q, should be read in conjunction with the other cautionary statements that are included in this release. Future events could differ materially from those anticipated in such statements and there can be no assurance that such statements will prove accurate and actual results may vary. The Company undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

Frank Holmes serves as executive chairman of the Board of Directors of HIVE Digital Technologies. Both Mr. Holmes and U.S. Global Investors own securities of HIVE.

Carryforward is the process of transferring unspent funds, unused tax losses, or remaining credits from one budget, accounting, or tax period to the next. 

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

_______________________
¹ Registration does not imply a certain level of skill or training.
² The Company calculates shareholder yield by adding the percentage of change in shares outstanding, the dividend yield and any debt reduction for the 12 months ended December 31, 2025.
³ International Air Transport Association (IATA), « Strong 2025 Passenger Demand Masks Ongoing Capacity Constraints,” Press Release No. 5, January 29, 2026, https://www.iata.org/en/pressroom/2026-releases/2026-01-29-02/
⁴ Airports Council International Europe (ACI EUROPE), “2025 All about Traffic Resilience as Europe’s Airports Welcomed an Additional 100 Million Passengers,” February 5, 2026, https://www.aci-europe.org/mediaroom/579-2025-all-about-traffic-resilience-as-europe-s-airports-welcomed-an-additional-100-million-passengers.html
⁵ Airlines Reporting Corporation (ARC), “Annual U.S. Travel Agency Air Ticket Sales Surpass $100 Billion for the First Time,” January 15, 2026, https://www2.arccorp.com/about-us/newsroom/2026-news-releases/december-2025-air-ticket-sales/
⁶ World Gold Council, “Gold Demand Trends: Q4 and Full Year 2025,” January 29, 2026, https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-full-year-2025
⁷ Preeti Soni, “Goldman Raises Year-End Gold Forecast to $5,400 an Ounce,” Bloomberg, January 21, 2026, https://www.bloomberg.com/news/articles/2026-01-22/goldman-sachs-raises-year-end-gold-forecast-to-5-400-an-ounce

Contact:
Holly Schoenfeldt
Director of Marketing
210.308.1268
hschoenfeldt@usfunds.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b5c398d1-b579-4fda-9d39-59e383ef82a5

FAQ

What were U.S. Global Investors (GROW) assets under management in Q2 fiscal 2026?

AUM were approximately $1.5 billion at quarter-end, up 12% sequentially and 5% year-over-year. According to U.S. Global Investors, AUM rose further to $1.7 billion as of February 19, 2026, reflecting post-quarter inflows and market moves.

How did U.S. Global Investors (GROW) revenue and profit change in Q2 FY2026?

Operating revenue increased by 11.5% versus the prior quarter, while income before taxes was $535,000. According to U.S. Global Investors, higher revenue and lower expenses drove the pre-tax improvement despite a large tax charge.

Why did U.S. Global Investors (GROW) report a tax expense in Q2 2026 and will it reverse?

The company recorded a $1.381M tax expense related to HIVE convertible securities, elevating the effective tax rate this quarter. According to U.S. Global Investors, a roughly $1.3M offset is expected in the quarter ending March 31, 2026, pending IRS review.

What shareholder actions did U.S. Global Investors (GROW) take in Q2 fiscal 2026?

The Board approved a monthly dividend of $0.0075 for Jan–Mar 2026 and the company repurchased 262,195 shares in the quarter. According to U.S. Global Investors, the repurchase program allows up to $5M annually.

Does U.S. Global Investors (GROW) have sufficient liquidity after Q2 2026 results?

Yes; the company reported approximately $25.2M in cash and $36.7M net working capital as of Dec 31, 2025. According to U.S. Global Investors, this liquidity supports current obligations and fund investments.