The firm exhibits structural margin compression, with gross margins declining from a 65.9% peak in 2024Q2 to 47.5% by 2026Q1, reflecting significant operational inefficiency.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 | Jun'96 |
|---|
| Sales/Revenue | 10.83M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 7.02M | 3.52M | 6.18M | 10.28M | 18.66M | 14.29M | 1.64M | 575K | 1.99M | 3.01M | 587K | 1.93M | 2.01M | 6.31M | 9.52M | 21.98M | 0 | 0 | 56.04M | 58.6M | 44.85M | 16.98M | -4.97B | 7.48M | 7.77M | 8.89M | 10.91M | 9.02M | 10.02M | 14.01M | 20.21M |
| Gross Margin % | 64.85% | 41.66% | 56.28% | 68.17% | 75.48% | 65.97% | 36.55% | 16.62% | 31.8% | 44.49% | 10.66% | 26.37% | 23.51% | 36.44% | 42.56% | 53.7% | - | - | 100% | 100% | 100% | 100% | -38298.34% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -43.04% | -39.84% | -44.92% | 30.59% | 773.17% | 184.52% | -71.12% | -33.83% | 412.61% | -69.65% | -3.59% | -68.21% | -33.74% | -56.67% | - | - | -100% | -4.38% | 30.66% | 164.13% | 100.34% | -66586.27% | -3.72% | -12.66% | -18.5% | 21.01% | -10.02% | -28.46% | -30.7% | 28.18% |
| Operating Expenses | 7.18M | 6.51M | 6.66M | 6.75M | 7.54M | 6.12M | 4.04M | 3.33M | 4.28M | 3.88M | 4.76M | 5.44M | 5.28M | 6.5M | 6.68M | 10.96M | -8.51M | 3.61M | 39.46M | 37.26M | 28.99M | 14.74M | 10.07M | 7.73M | 8.02M | 9.54M | 10.38M | 9.82M | 9.76M | 12.12M | 11.57M |
| OpEx % of Revenue | - | 76.99% | 60.65% | 44.79% | 30.52% | 28.26% | 90.24% | 96.33% | 68.34% | 57.4% | 86.52% | 74.2% | 61.91% | 37.54% | 29.87% | 26.77% | - | - | 70.41% | 63.58% | 64.62% | 86.83% | 77.54% | 103.42% | 103.24% | 107.29% | 95.14% | 108.87% | 97.34% | 86.5% | 57.21% |
| Selling, General & Admin | 6.08M | 6.45M | 6.46M | 6.5M | 7.32M | 5.92M | 3.84M | 3.12M | 4.04M | 3.63M | 4.45M | 5.11M | 5.03M | 6.23M | 6.41M | 10.67M | 26.2M | 26.48M | 20.9M | 7.99M | 5.97M | 4.19M | 3.96M | 2.82M | 7.85M | 9.32M | 9.99M | 9.32M | 9.3M | 11.64M | 10.52M |
| SG&A % of Revenue | - | 76.25% | 58.84% | 43.15% | 29.6% | 27.36% | 85.72% | 90.14% | 64.49% | 53.66% | 80.78% | 69.74% | 58.91% | 35.99% | 28.65% | 26.06% | - | - | 37.3% | 13.63% | 13.32% | 24.68% | 30.47% | 37.77% | 101.12% | 104.75% | 91.52% | 103.4% | 92.78% | 83.06% | 52.05% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -154K | -2.99M | -480K | 3.52M | 11.11M | 8.16M | -2.4M | -2.76M | -2.29M | -873K | -4.18M | -3.51M | -3.28M | -191K | 2.84M | 11.02M | 8.51M | -3.61M | 16.58M | 21.35M | 15.87M | 2.24M | 2.92M | -256K | -251.4K | -648.25K | 530.15K | -799.49K | 266.34K | 1.89M | 8.65M |
| Operating Margin % | -1.42% | -35.33% | -4.37% | 23.38% | 44.97% | 37.71% | -53.69% | -79.71% | -36.54% | -12.91% | -75.86% | -47.82% | -38.4% | -1.1% | 12.69% | 26.93% | - | - | 29.59% | 36.42% | 35.38% | 13.17% | 22.46% | -3.42% | -3.24% | -7.29% | 4.86% | -8.87% | 2.66% | 13.5% | 42.79% |
| Operating Income Growth % | - | -522.08% | -113.62% | -68.28% | 36.11% | 439.78% | 12.84% | -20.5% | -162.08% | 79.09% | -19.08% | -7.02% | -1615.71% | -106.73% | -74.24% | 29.53% | 335.66% | -121.77% | -22.32% | 34.53% | 609.46% | -23.29% | 1238.91% | -1.83% | 61.22% | -222.28% | 166.31% | -400.18% | -85.92% | -78.13% | 1807.05% |
| EBITDA | -111K | -2.92M | -284K | 3.77M | 11.34M | 8.54M | -2.2M | -2.54M | -2.05M | -620K | -3.86M | -3.18M | -3.02M | 84K | 3.12M | 11.31M | 8.83M | -3.34M | 16.87M | 21.59M | 16.02M | 2.35M | 3.02M | -134.51K | -86.73K | -422.1K | 925.6K | -306.91K | 723.72K | 2.37M | 9.07M |
| EBITDA Margin % | -1.02% | -34.61% | -2.59% | 25% | 45.88% | 39.43% | -49.17% | -73.52% | -32.69% | -9.17% | -70.12% | -43.37% | -35.36% | 0.48% | 13.95% | 27.64% | - | - | 30.1% | 36.84% | 35.72% | 13.82% | 23.29% | -1.8% | -1.12% | -4.75% | 8.48% | -3.4% | 7.22% | 16.94% | 44.89% |
| EBITDA Growth % | 95.19% | -929.93% | -107.54% | -66.77% | 32.79% | 487.96% | 13.45% | -24.23% | -230.16% | 83.94% | -21.38% | -5.37% | -3692.86% | -97.31% | -72.41% | 28.12% | 364.36% | -119.8% | -21.88% | 34.77% | 582.75% | -22.4% | 2347.95% | -55.09% | 79.45% | -145.6% | 401.59% | -142.41% | -69.5% | -73.85% | 816.17% |
| D&A (Non-Cash Add-back) | 43K | 61K | 196K | 243K | 226K | 374K | 202K | 214K | 241K | 253K | 316K | 327K | 259K | 275K | 282K | 291.7K | 321.42K | 270.33K | 284.24K | 244.07K | 152.75K | 109.9K | 108.06K | 121.49K | 164.67K | 226.15K | 395.45K | 492.58K | 457.39K | 481.51K | 425.3K |
| EBIT | 3.88M | -261K | 1.92M | 4.09M | 4.97M | 8.16M | -2.4M | -2.76M | -2.29M | -873K | -4.18M | -3.51M | -3.28M | -191K | 2.84M | 11.02M | 8.51M | -3.61M | 16.58M | 21.35M | 15.87M | 2.24M | 12.98M | -256K | -251.4K | -758.5K | 530.15K | -799.49K | 266.34K | 1.89M | 8.65M |
| Net Interest Income | -335K | -1K | -3K | -4K | 0 | 464K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | -330K | 0 | 0 | 0 | 0 | 464K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 5K | 1K | 3K | 4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 3.87M | -262K | 1.92M | 4.08M | 4.97M | 37.44M | -4.64M | -4.27M | 886K | -527K | -3.69M | -3.07M | -1.11M | 71K | 2.66M | 12.03M | 8.51M | -3.61M | 16.58M | 21.35M | 15.87M | 2.24M | 2.84M | 32.11K | -336.79K | -758.5K | 469.23K | -1.67M | -188.19K | 616.13K | 3M |
| Pretax Margin % | 35.76% | -3.1% | 17.43% | 27.09% | 20.1% | 172.89% | -103.64% | -123.42% | 14.15% | -7.79% | -67.05% | -41.91% | -13.03% | 0.41% | 11.9% | 29.4% | - | - | 29.59% | 36.42% | 35.38% | 13.17% | 21.89% | 0.43% | -4.34% | -8.53% | 4.3% | -18.51% | -1.88% | 4.4% | 14.84% |
| Income Tax | 717K | 72K | 582K | 934K | 1.53M | 5.48M | -175K | -977K | 197K | 17K | -6K | 822K | -475K | 100K | 1.02M | 4.2M | 3.16M | -1.37M | 5.75M | 7.59M | 5.43M | 789.97K | 675.84K | -10.5K | -95.35K | 36.18K | -26.53K | 183.33K | -39.57K | 331.98K | 1.01M |
| Effective Tax Rate % | 18.51% | -27.48% | 30.39% | 22.88% | 30.76% | 14.63% | 3.77% | 22.89% | 22.23% | -3.23% | 0.16% | -26.75% | 42.72% | 140.85% | 38.47% | 34.89% | 37.13% | 38.03% | 34.65% | 35.54% | 34.23% | 35.32% | 23.78% | -32.71% | 28.31% | -4.77% | -5.65% | -10.98% | 21.03% | 53.88% | 33.78% |
| Net Income | 3.16M | -334K | 1.33M | 3.15M | 3.44M | 31.96M | -4.68M | -3.39M | 647K | -513K | -3.67M | -4.03M | -970K | -194K | 1.53M | 7.83M | 5.35M | -2.24M | 10.84M | 13.76M | 10.44M | 1.45M | 2.17M | 42.61K | -241.43K | -794.68K | 495.76K | -1.85M | -148.62K | 284.15K | 1.99M |
| Net Margin % | 29.15% | -3.95% | 12.14% | 20.89% | 13.92% | 147.6% | -104.65% | -97.95% | 10.33% | -7.59% | -66.76% | -54.96% | -11.37% | -1.12% | 6.84% | 19.14% | - | - | 19.34% | 23.48% | 23.27% | 8.52% | 16.69% | 0.57% | -3.11% | -8.94% | 4.54% | -20.55% | -1.48% | 2.03% | 9.83% |
| Net Income Growth % | 1848.77% | -125.06% | -57.67% | -8.46% | -89.24% | 782.34% | -38.25% | -623.65% | 226.12% | 86.04% | 8.81% | -315.46% | -400% | -112.68% | -80.47% | 46.42% | 339.07% | -120.65% | -21.24% | 31.85% | 621.44% | -33.24% | 4984.58% | 117.65% | 69.62% | -260.3% | 126.76% | -1146.68% | -152.3% | -85.7% | 151.65% |
| Net Income (Continuing) | 3.16M | -334K | 1.33M | 3.15M | 3.44M | 31.96M | -4.46M | -3.29M | 689K | -544K | -3.69M | -3.9M | -637K | -29K | 1.64M | 7.83M | 5.35M | -2.24M | 10.84M | 13.76M | 10.44M | 1.45M | 2.17M | 42.61K | -241.43K | -794.68K | 495.76K | -1.9M | -148.62K | 284.15K | 1.99M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | -338K | -147K | 0 | 0 | -18K | -81K | -326K | -165K | -108K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 467K | 518K | 484K | 518K | 574K | 633K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.27 | -0.03 | 0.09 | 0.22 | 0.23 | 2.12 | -0.30 | -0.23 | 0.04 | -0.03 | -0.24 | -0.26 | -0.06 | -0.01 | 0.10 | 0.51 | 0.35 | -0.15 | 0.71 | 0.90 | 0.69 | 0.10 | 0.15 | 0.00 | -0.02 | -0.06 | 0.04 | -0.14 | -0.01 | 0.02 | 0.15 |
| EPS Growth % | 2801.08% | -126.6% | -57.27% | -4.35% | -89.15% | 806.67% | -30.43% | -638.64% | 226.71% | 85.96% | 7.69% | -314.67% | -401.6% | -112.5% | -80.39% | 45.71% | 333.33% | -121.13% | -21.11% | 30.43% | 626.32% | -36.67% | - | 119.33% | 72.73% | -257.14% | 125% | -1161.26% | -155.5% | -86.67% | 146.88% |
| EPS (Basic) | - | -0.03 | 0.09 | 0.22 | 0.23 | 2.12 | -0.30 | -0.23 | 0.04 | -0.03 | -0.24 | -0.26 | -0.06 | -0.01 | 0.10 | 0.51 | 0.35 | -0.15 | 0.71 | 0.91 | 0.69 | 0.10 | 0.15 | 0.01 | -0.02 | -0.06 | 0.04 | -0.14 | -0.01 | 0.02 | 0.15 |
| Diluted Shares Outstanding | 11.88M | 13.34M | 14.18M | 14.64M | 15.01M | 15.07M | 15.11M | 15.14M | 15.16M | 15.21M | 15.29M | 15.4M | 15.46M | 15.48M | 15.44M | 15.38M | 15.34M | 15.28M | 15.28M | 15.24M | 15.15M | 15.13M | 14.44M | 14.94M | 16.1M | 14.45M | 14.75M | 13.33M | 13.34M | 13.33M | 13.2M |
| Basic Shares Outstanding | 11.86M | 13.34M | 14.18M | 14.64M | 15.01M | 15.07M | 15.11M | 15.14M | 15.16M | 15.21M | 15.24M | 15.4M | 15.46M | 15.48M | 15.44M | 15.38M | 15.34M | 15.28M | 15.25M | 15.16M | 15.03M | 14.96M | 14.44M | 14.92M | 16.1M | 14.45M | 14.16M | 13.23M | 13.23M | 13.33M | 13.2M |
| Dividend Payout Ratio | - | - | 95.87% | 42.33% | 36.02% | 2% | - | - | 70.32% | - | - | - | - | - | 242.22% | 47.14% | 68.82% | - | 29.7% | 28.84% | - | - | - | - | - | - | - | - | - | - | - |
High revenue concentration risk
As indicated by the quarterly income statement data, GROW's revenue has trended downward from $2.8M in 2024Q2 to $2.3M in 2026Q1, reflecting a challenging environment for its thematic asset management products that warrants close monitoring by investors regarding future AUM stability.
The consistent decline in top-line performance suggests that the firm's niche focus on airline and precious metals ETFs is struggling to maintain scale in the current market cycle. This downward trajectory implies that the firm may be facing significant net outflows, which could further pressure the revenue base if thematic interest continues to wane.
Based on reported financial figures, the firm's gross margin has fluctuated significantly, dropping from a peak of 65.9% in 2024Q2 to 47.5% in 2026Q1, which highlights the difficulty of maintaining profitability within a high-fixed-cost asset management model during periods of declining assets under management.
The erosion of gross margins suggests that the direct costs associated with maintaining ETF listings and regulatory compliance are becoming increasingly burdensome relative to the shrinking fee revenue. Investors should consider whether the firm possesses the pricing power necessary to offset these rising relative costs or if margin compression is a permanent feature of its current scale.
According to the provided income statement, the firm has struggled to achieve positive operating income, with margins frequently dipping into negative territory, such as the -50.8% operating margin recorded in 2025Q4, indicating a lack of operational scalability in the current business model.
The inability to scale operating income faster than gross profit suggests that SG&A expenses remain stubbornly high despite the contraction in revenue. This implies that the firm's current cost structure is not optimized for its present size, potentially requiring a significant reduction in overhead to reach a sustainable break-even point.
Financial statements reveal a recurring discrepancy between operating losses and net income, such as the 2026Q1 period where a -22.9% operating margin was offset by a 66.9% net margin, suggesting that non-operating investment gains are significantly distorting the firm's true underlying profitability.
The reliance on non-operating income to bolster the bottom line indicates that the core asset management business is currently failing to generate consistent earnings. Analysts should be wary of these accounting anomalies, as they may mask the fundamental deterioration of the firm's primary advisory operations.
As reported in recent filings, the firm's persistent operating losses and reliance on cash reserves to maintain operations raise questions about the long-term viability of its current strategy, particularly given the -23.05% revenue decline observed in recent periods.
Short-term observers might argue that the firm's substantial cash position provides a safety net, but this capital is effectively being eroded to fund ongoing operational deficits. This trend suggests that without a pivot to a more efficient revenue model, the firm may continue to see its intrinsic value decline alongside its shrinking AUM.
Quick answers to the most common questions about buying GROW stock.
U.S. Global Investors, Inc. (GROW) reported a net loss of $0.3M for the fiscal year ending 2025.
U.S. Global Investors, Inc. (GROW) reported an operating income of $-3.0M, resulting in an operating profit margin of -35.3%. This margin reflects the operational efficiency of the business before interest and taxes.
U.S. Global Investors, Inc. (GROW) generated $3.5M in gross profit for the year, representing a gross profit margin of 41.7%. This demonstrates the company's core pricing power and production efficiency.