U.S. Global Investors — Q1 Fiscal 2027 Earnings Summary

Financial Performance:

• Operating revenues reached $2.7 million for the quarter ended September 30, 2026, representing an 18% year-over-year increase from $2.251 million in the same quarter of the prior year.
• The Company returned to operating profitability with an operating income of $55,000, compared to an operating loss of $515,000 in the September 2025 quarter, driven by a 6% year-over-year decline in operating expenses to $2.602 million from $2.766 million.
• Net income for the quarter was $171,000 ($0.01 per share), a significant decrease from $1.507 million ($0.12 per share) in the prior year period, primarily due to lower total other income of $193,000 compared to $2.359 million previously.
• Average assets under management (AAUM) were $1.6 billion, up 14% from $1.4 billion in the prior year quarter; total assets under management at quarter-end stood at $1.6 billion, a 17% increase year-over-year.
• Net working capital was approximately $35.4 million as of September 30, 2026, with cash and cash equivalents of $24.3 million.

Business Segments and Product Lines:

• Gold and precious metals strategies led growth, with combined average assets in the Gold and Precious Metal Miners ETF (USERX), World Precious Metals Fund (UNWPX), and U.S. Global GO GOLD and Precious Metal Mines ETF (GOAU) reaching $547.6 million, a 45% increase from the prior year quarter.
• The U.S. Global Technology and Aerospace & Defense ETF (WAR) saw average assets grow to $37.4 million, up 17% from the June quarter and nearly five times the level of the same quarter a year earlier.
• The U.S. Global Sea to Sky Cargo ETF (SEA) reported average assets of $16.2 million, an 81% increase from the same quarter a year earlier, supported by strong global manufacturing data and record U.S. containerized imports.
• The U.S. Global Jets ETF (JETS) was highlighted for historical seasonal performance, with research indicating positive fourth-quarter performance in approximately 80% of years over the past decade.

Market and Competitive Landscape:

• Global markets experienced volatility due to rising interest rates in Japan, the unwinding of the yen carry trade, geopolitical conflicts involving Iran and Russian energy infrastructure, and potential U.S. policy changes ahead of midterm elections.
• The JPMorgan Global Manufacturing PMI registered 52.6 in October, marking 15 consecutive months of expansion, while the U.S. PMI was 54.9, also in its 15th consecutive month of expansion.
• U.S. containerized imports totaled 2.55 million TEUs in September, the highest September volume on record and up 10.3% from the prior year.
• Management noted that defense spending is increasingly focused on AI, autonomous systems, and cybersecurity, positioning the WAR ETF to capture targeted exposure to these sectors.

Risks and Challenges:

• The press release outlines risks including currency fluctuations, political instability, and economic volatility associated with non-U.S. issuers and emerging markets.
• Specific sector risks include price volatility for gold and precious metals, adverse economic conditions affecting airline and cargo demand, and intense competition in cybersecurity and semiconductor industries.
• Forward-looking statements regarding revenues, expenses, and market conditions involve uncertainties and risks that could cause actual results to differ materially from expectations.

Management Commentary and Tone:

• CEO Frank Holmes expressed confidence in the disciplined, actively managed exposure to high-quality miners, noting that gold miners continued to draw significant investor interest.
• Management views strong manufacturing PMIs as reliable leading indicators that demand remains high, boding well for shipping and logistics companies in the SEA ETF.
• Regarding the WAR ETF, management emphasized that defense is being reshaped by technology and that government spending on national security supports the fund's strategy.
• The tone regarding the fourth quarter is cautiously optimistic, acknowledging that while seasonal patterns in airline stocks are favorable, they are not guaranteed.

Other Key Points:

• The Board of Directors approved a monthly dividend of $0.0075 per share beginning in October 2026 through December 2026, with record dates of November 16 and December 14.
• Shareholder yield as of September 30, 2026, was 8.33%, compared to 5.09% and 5.29% for the five-year and 10-year Treasury bonds, respectively.
• The Company maintains a share repurchase program authorized to purchase up to $5 million of outstanding common shares annually; 105,457 shares were repurchased during the quarter ended September 30, 2026.
• A webcast was scheduled for November 13, 2026, featuring CEO Frank Holmes, CFO Lisa Callicotte, and Director of Marketing Holly Schoenfeldt.