The Marygold Companies — First Fiscal Quarter Ended September 30, 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, rose to $9.4 million (excluding $1.5 million from discontinued New Zealand operations) compared to $5.2 million in the prior year quarter.
• Net income from continuing operations was $1.7 million for the quarter, reversing a net loss of $0.5 million from the same period last year.
• Net income for the fiscal 2027 first quarter totaled $1.8 million, or $0.04 per share, compared to a net loss of $0.4 million, or $0.01 per share, a year ago.
• Total assets increased to $25.4 million from the prior fiscal year-end, with total stockholders' equity improving to $20.9 million.
• Cash and cash equivalents stood at $4.5 million at the close of the quarter.
• Gross profit increased to $8.953 million from $4.907 million in the prior year quarter.
• Total operating expenses rose to $7.092 million from $6.272 million in the prior year quarter.
• Income from continuing operations before income taxes was $2.148 million, compared to a loss of $0.615 million in the prior year quarter.

Guidance and Future Outlook:

• The Company announced a definitive merger agreement to be acquired by funds managed by Madison Dearborn Partners for $2.00 per share.
• The transaction represents a 100% premium over the closing share price on September 24, 2026.
• The deal is expected to close during the first half of 2027, or earlier, subject to customary closing conditions.

Business Segments and Product Lines:

• USCF Investments, the largest operating unit, reported revenue nearly doubling to $8.4 million from $4.3 million a year ago.
• Average assets under management at USCF Investments nearly doubled to $5.5 billion from $2.9 billion in the prior year quarter.
• The UK investment advisory business recorded a net loss of $0.1 million for the quarter, an improvement from a $0.4 million loss in the prior year quarter, attributed to reduced expenses from a paused mobile fintech banking app.
• Discontinued operations in New Zealand (Gourmet Foods and Printstock Products) were profitable during the quarter.
• Beauty products revenue increased to $792,000 from $671,000 in the prior year quarter.
• Financial services revenue decreased to $160,000 from $208,000 in the prior year quarter.

Market and Competitive Landscape:

• Growth in USCF Investments was driven by energy price volatility associated with geopolitical events in the Middle East and Eastern Europe, as well as economic uncertainty affecting inventory and demand.
• Increased activity in energy-related ETFs, partly due to the Iran war, contributed to the significant rise in revenues and income.

Risks and Challenges:

• The press release notes that forward-looking statements regarding the merger involve significant risks and uncertainties that could cause actual results to differ materially from expectations.
• Specific risks include the satisfaction of closing conditions and the potential for the transaction not to close as expected.

Management Commentary and Tone:

• David Neibert, Chief Operations Officer, stated that revenues and income increased significantly, primarily reflecting increased activity in energy-related ETFs.
• Neibert highlighted a significant reduction in expenses at the UK unit associated with the paused mobile fintech banking app.
• Nicholas Gerber, Chief Executive Officer, confirmed the merger agreement and expressed confidence in the transaction's expected timeline.

Other Key Points:

• The Company is a global holding firm with subsidiaries in financial services, food manufacturing, printing, and beauty products operating in the U.S., New Zealand, and the U.K.
• USCF Investments manages 16 exchange-traded products listed on the NYSE Arca.
• The New Zealand entities, Gourmet Foods and Printstock Products, are classified as "Discontinued Operations."
• The merger offer of $2.00 per share was announced following the closing share price on September 24, 2026.