U.S. Global Investors, Inc. (GROW): Business Model Canvas [Dec-2025 Updated]

You're looking to see exactly how U.S. Global Investors, Inc. makes money managing those niche thematic funds, and honestly, their model is surprisingly focused for a firm with a history stretching back to 1968. They aren't trying to be BlackRock; instead, they lean hard into specialized areas like gold and airlines using their proprietary Smart Beta 2.0 process, which is key to their value proposition. With average Assets Under Management hitting $1.4 billion in FY2025 and returning capital via an 8.32% shareholder yield, the structure is clearly built around fee generation from targeted exposure and rewarding long-term holders. Dive into the nine blocks below to see the exact partnerships, activities, and revenue streams that keep this lean operation running on $8.5 million in operating revenue last fiscal year.

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Key Partnerships

You're looking at the external relationships that U.S. Global Investors, Inc. relies on to bring its specialized investment products to market and keep operations running smoothly as of late 2025. These partnerships are critical, especially given the firm's average Assets Under Management (AUM) stood at $1.4 billion for the quarter ended September 30, 2025, down from $1.9 billion the prior year.

Custodian banks and fund administrators for asset safekeeping

The operational backbone relies on third-party specialists for the safekeeping of assets and the administration of the U.S. Global Investors Funds and ETFs. While specific contractual partners for U.S. Global Investors, Inc. aren't public in the latest filings, the industry landscape shows key players handling similar mandates. For instance, in the broader asset servicing space for 2025, firms like Ultimus Fund Solutions were recognized for ETF Administration, while JP Morgan and RBC Investor Services secured honors in categories relevant to large and client-facing services, respectively. This context is important because major global service providers are noted to be moving away from servicing clients with less than $1 billion in AUM, placing U.S. Global Investors, Inc. near that critical operational scale point with total AUM at $1.3 billion as of June 30, 2025.

Broker-dealer networks and wirehouses for product distribution

Getting the niche thematic ETFs into investor hands requires robust distribution channels. The firm actively expanded its reach in fiscal year 2025 through direct international listings, which is a form of direct distribution partnership. The CEO, Frank Holmes, continues to emphasize shareholder yield, which was reported at 8.32% as of September 30, 2025, showing a commitment to returning value that supports these distribution relationships.

The international expansion efforts in fiscal 2025 included specific market access points:

• The U.S. Global Sea to Sky Cargo ETF (SEA) launched on the Mexican Stock Exchange.
• The GoGold and Precious Metal Miners ETF (GOAU) became available to investors in Colombia in May 2025.
• The GOAU ETF itself reached a record intraday high of $37.75 per share, indicating strong investor demand through these networks.

Index providers for benchmarked and smart-beta ETFs

For its thematic and actively managed products, partnerships with index providers are necessary for benchmarking and, in some cases, the underlying structure of smart-beta offerings. The firm launched its first actively managed ETF, the U.S. Global Technology and Aerospace & Defense ETF (WAR), in December 2024, suggesting a reliance on internal quantitative models (the quantamental strategy) rather than purely passive index tracking for this fund. However, for other products, the industry trend shows a move toward customization in indexing, with providers like FTSE Russell launching specialized indices for digital assets and fixed income in 2025. The focus on gold, with the GOAU ETF, aligns with the strong market performance of gold, which reached historic highs in 2025.

International stock exchanges for cross-listing thematic ETFs

The strategy explicitly uses international exchanges as a direct distribution and listing partnership, moving beyond traditional U.S. wirehouse reliance for certain products. This is a concrete action taken to grow the investor base outside the domestic market. The expansion in fiscal 2025 included listings in two distinct countries, which is a clear metric of this partnership strategy in action.

Financial data and technology vendors for the quantamental strategy

The firm's focus on specialized sectors like aerospace, defense, and technology-as seen with the WAR ETF-requires access to granular, timely data to support its 'quantamental' approach, which blends quantitative analysis with fundamental research. While specific vendor contracts are not disclosed, the firm's operational health is supported by strong liquidity, which is essential for technology investment. As of June 30, 2025, U.S. Global Investors, Inc. reported net working capital of approximately $37.2 million, including $24.6 million in cash and cash equivalents. This liquidity provides the necessary buffer to maintain and upgrade the technology stack required for complex data processing and strategy execution.

The firm's financial resilience, returning to net income of $1.5 million in Q1 fiscal 2026 (quarter ended September 30, 2025), supports continued investment in these essential, non-fee-generating technology partnerships. Finance: draft 13-week cash view by Friday.

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Key Activities

You're looking at the core functions that drive the business for U.S. Global Investors, Inc. as of late 2025. Here's the quick math on their recent operational scale and financial performance.

Active and quantitative investment management (Smart Beta 2.0)

The firm continues to employ its dynamic investment process, Smart Beta 2.0. This approach is specifically used in products like the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU). The goal is to target high-quality gold mining and royalty companies with strong fundamentals. The firm is also maintaining its balance sheet exposure to the Bitcoin ecosystem, anticipating a favorable regulatory shift. This strategy reflects a belief in digital assets as a legitimate portfolio diversifier.

• Smart Beta 2.0 applied to GOAU ETF.
• Maintaining balance sheet exposure to Bitcoin.

Launching and managing specialized thematic ETF products

U.S. Global Investors, Inc. manages and launches various funds, focusing on equity/balanced and fixed income. A key activity is managing thematic ETFs that capitalize on specific global trends. For instance, the U.S. Global Technology and Aerospace & Defense ETF (WAR) concentrates on sectors like Aerospace & Defense, Cybersecurity, and Semiconductors. The firm also transitioned the U.S. Global Investors Travel UCITS ETF (TRIP) to an actively managed strategy for greater flexibility. The company's revenue is directly tied to the assets in these key ETFs, such as JETS and GOAU.

Global marketing and investor education, especially on gold and airlines

Marketing efforts focus on educating investors about specialized sectors where U.S. Global Investors, Inc. has expertise, namely gold and the airline industry. The firm is expanding its distribution footprint. They reported the listing of U.S. Global ETFs on the Mexican Stock Exchange. Furthermore, they are seeing increasing trading activity in markets such as Bogota, Peru, and Chile. The shareholder yield was reported at a high of 10.5% in Q1 2025, which is a key metric used in shareholder communications.

Regulatory compliance and fund governance

As a registered investment advisory firm, compliance is a constant. While specific compliance expenditure figures aren't public, the firm's operational structure supports its fund governance. The firm reported operating expenses of $11.4 million for the fiscal year ending June 30, 2025, which remained flat compared to the prior year. The balance sheet strength, including $37.2 million in net working capital and a current ratio of 20.9:1 as of June 30, 2025, supports robust operational and regulatory functions. They defintely need this strong liquidity.

Strategic capital allocation, including stock buybacks

Returning value to shareholders is a stated priority through dividends and buybacks. Through June 30, 2025, the company used $1.9 million in cash specifically for share repurchases. The CEO noted a strategy of buying back stock using an algorithm on flat and down days. The company maintains a commitment to its monthly dividend, which translates to a forward yield of about 3.66%.

• Cash used for buybacks through June 30, 2025: $1.9 million.
• Commitment to monthly dividends.

Finance: review AUM trend analysis against Q2 2025 expense report by Tuesday.

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Key Resources

The core assets enabling U.S. Global Investors, Inc. to execute its specialized investment management model center on intellectual capital, financial strength, and human expertise.

The firm's management of capital is quantified by its Average Assets Under Management (AUM), which stood at $1.4 billion for the Fiscal Year 2025 period ending June 30, 2025. This AUM base is the direct engine for fee generation, despite a reported decrease from $1.9 billion in the prior year.

A critical intangible resource is the Proprietary Smart Beta 2.0 investment strategy. This factor- and rules-based approach to portfolio construction is applied across key thematic Exchange Traded Funds (ETFs), such as the U.S. Global Technology and Aerospace & Defense ETF (WAR) and the Travel UCITS ETF (TRIP).

Financial stability is supported by strong liquidity. As of the close of Fiscal Year 2025 on June 30, 2025, U.S. Global Investors, Inc. maintained $24.6 million in cash, alongside net working capital of $37.2 million, providing operational flexibility.

The brand and investment philosophy are heavily tied to the visibility of its leadership. CEO Frank Holmes's thought leadership and brand recognition serve as a key resource, with his commentary frequently cited regarding gold market projections (potentially reaching $7,000) and thematic investment trends like AI defense and global resources.

The operational structure relies on a lean, specialized workforce. The company maintains a small, specialized team, with the reported Number of employees listed as 24.

Here is a summary of the key quantifiable resources as of the late 2025 period:

The firm's commitment to shareholder returns is also a resource, evidenced by maintaining a monthly dividend program and a shareholder yield of 9.1% for FY2025.

Key personnel and their tenure also represent critical resources:

• Frank Holmes: CEO, Chief Executive Officer, tenure since 1989-09-30.
• Lisa Callicotte: Director of Finance/CFO, tenure since 2013-07-11.
• Thomas Lydon: Director/Board Member, tenure since 1994-12-31.

The company's expertise is concentrated in specific areas, which informs its product development:

• Gold mining and exploration.
• Natural resources.
• Airlines.

The firm's investment vehicles, such as ETFs, are also essential resources, including the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU).

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Value Propositions

You're looking at what U.S. Global Investors, Inc. offers that makes them stand out in the asset management space. It's all about specialization and a commitment to returning capital directly to you, the shareholder.

Access to niche, cyclical sectors like gold mining and global travel

The firm doesn't chase the biggest indexes; instead, they focus where they have deep, long-term knowledge. This means providing targeted exposure to sectors that often move differently than the broader market. For instance, their expertise in gold mining is clear, especially given the historic run gold saw in 2025.

• Expertise in gold mining stocks and the airline industry is a core focus.
• The U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) hit a record intraday high of $37.75 per share.
• The U.S. Global Technology and Aerospace & Defense ETF (WAR) offers exposure to defense and tech innovation.

Quantamental investment process (Smart Beta 2.0) for risk management

They use a factor- and rules-based approach, which they call Smart Beta 2.0, to construct their specialized exchange-traded funds (ETFs). This process is designed to screen for specific characteristics, aiming to manage risk while capturing sector upside. This methodology is applied across products like GOAU and WAR.

High shareholder yield of 8.32% through dividends and buybacks

U.S. Global Investors, Inc. has a clear policy of returning capital. As of September 30, 2025, the reported shareholder yield was 8.32%. This yield combines the regular cash distributions with the impact of share repurchases. Here's a quick look at the mechanics supporting that yield:

Specialized thematic ETFs (e.g., GOAU, SEA, WAR) for targeted exposure

You get direct access to these niche themes through their specific funds. For example, the GOAU ETF blends gold producers with royalty and streaming companies, which management views as the sector's 'smart money.'

Long-standing expertise in global markets since 1968

This isn't a new venture; the firm has been registered as an investment adviser with the SEC since June 16, 1968. That's a history spanning over five decades, giving them deep institutional memory in navigating global economic cycles, which is key when investing in areas like commodities and international equities.

• Founded Year: 1968.
• SEC Registration Effective Date: 6/16/1968.

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Customer Relationships

You're looking at how U.S. Global Investors, Inc. keeps its shareholders engaged and rewarded, which is central to their business as an investment adviser focused on niche markets. The relationship strategy heavily leans on direct cash returns and transparent communication, especially given the cyclical nature of their core gold and resource investments.

Consistent monthly dividend payments are a cornerstone of this relationship. The Board approved the payment of $0.0075 per share per month continuing through December 2025. This results in an annual dividend of $0.09 per share. Based on the September 15, 2025 closing price of $2.48, this payment represented an annualized yield of 3.63%. It's important to note the payout ratio was reported at 138.02%.

Direct engagement happens through scheduled events and ongoing commentary. For instance, the company hosted a webcast on November 13, 2025, at 7:30 a.m. Central time to discuss the fiscal year 2025 results. This is how they deliver research insights directly to you.

High transparency is maintained via regular CEO commentary. CEO Frank Holmes provided insights during these calls, noting the company believes its stock is deeply undervalued. He also detailed strategic positioning, such as anticipating further gold price increases due to Basel III regulations recognizing gold as a Tier 1 asset, and increasing exposure to the Bitcoin ecosystem via investments like HIVE.

The commitment to shareholder value is quantified by combining dividends with the automated stock buyback program. The Board has authorized an annual repurchase of up to $5 million of common shares. In the first quarter of fiscal 2026 (the quarter ending September 30, 2025), the company repurchased 159,074 shares for approximately $400,000. For the full 12-month period ending March 31, 2025, 784,466 shares were repurchased.

The combined effect of these actions is measured by the shareholder yield, which is a key metric U.S. Global Investors, Inc. emphasizes. This yield combines the dividend yield and the buyback yield.

Here is a breakdown of the key shareholder return metrics as of late 2025:

The dedicated investor relations for shareholder engagement goes beyond mandatory filings. The company actively encourages direct contact, for example, by inviting loyal shareholders to email info@usfunds.com to receive signature USGI hats. This personal touch helps foster a closer relationship.

The communication channels used for investor relations include:

• Scheduled webcasts for quarterly results.
• Regular press releases detailing dividend and repurchase actions.
• Direct email invitation for company merchandise.
• CEO commentary on market trends like gold and digital assets.

The company continues to buy back stock using an algorithm on flat and down days, which is part of its two-pillar strategy to enhance shareholder value alongside dividends. Finance: draft 13-week cash view by Friday.

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Channels

You're looking at how U.S. Global Investors, Inc. gets its specialized investment products into the hands of investors as of late 2025. The channels are the pathways to market for their actively managed funds and ETFs, which focus on niche global sectors like gold and technology.

The firm's total assets under management (AUM) as of March 31, 2025, stood at approximately $1.2 billion. This AUM is the base upon which fee revenue is generated across all distribution channels. For the quarter ended March 31, 2025, operating revenues were reported at $2.1 million.

Major U.S. brokerage and ETF trading platforms represent a primary conduit for retail and institutional access to U.S. Global Investors, Inc.'s exchange-traded products. While specific market share data across platforms like Fidelity or Schwab isn't public, the liquidity and trading activity of their flagship products, such as the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU), which reached an intraday high of $37.75 per share in 2025, is indicative of broad platform accessibility and investor interest.

Direct sales via the U.S. Global Investors website support the overall distribution ecosystem, often serving as a point of direct subscription for certain products or as a primary information hub. The commitment to shareholder return, which influences investor retention across all channels, is evidenced by the Board approving a monthly dividend of $0.0075 per share continuing through December 2025.

International stock exchanges for ETF listings are a key part of the global reach strategy, though specific AUM figures for non-U.S. listings aren't itemized in recent reports. The firm's expertise in global markets, including historical focus areas like Mexican and Colombian equities, suggests these listings serve as important, albeit smaller, distribution lanes for specialized mandates.

Financial advisors and registered investment advisors (RIAs) are critical for scaling asset gathering, especially for thematic and actively managed strategies. The firm's consistent dividend policy and shareholder yield, which was 10.5% as of March 31, 2025, are designed to appeal to advisors looking for income-oriented or specialized exposure for their clients.

Financial news and media outlets are used for content distribution, which drives awareness and interest in the firm's investment theses. This content distribution supports the entire sales funnel, from initial investor interest to final purchase on a trading platform. The firm's CEO actively comments on market drivers, such as historic gold prices in 2025, via these channels.

Here's a quick look at some key financial metrics underpinning the business that these channels support:

The firm utilizes several methods to communicate its investment philosophy, which directly impacts channel engagement. These include:

• Distribution of research on gold mining sector margins.
• Content highlighting performance of the U.S. Global Technology and Aerospace & Defense ETF (WAR).
• Market commentary on central bank gold buying trends.
• Updates on the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU).
• Investor relations materials supporting advisor due diligence.

If onboarding new funds onto a major platform takes longer than expected, the immediate revenue impact is a reduction in management fees from the existing AUM base, which was $1.2 billion at the end of Q1 2025.

Finance: review Q3 2025 AUM flow data by channel by end of January.

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Customer Segments

Retail investors seeking thematic, specialized sector exposure are drawn to U.S. Global Investors, Inc. (GROW) offerings like the U.S. Global Technology and Aerospace & Defense ETF (WAR), launched on December 30, 2024, which targets areas like electronic warfare and cybersecurity. The firm's overall Assets Under Management (AUM) stood at approximately $1.4 billion as of June 30, 2025, and remained at $1.4 billion as of September 30, 2025, reflecting investor interest in these niche strategies despite a decrease from $1.5 billion at the end of 2024.

Institutional investors and family offices interested in gold/hard assets are served by strategies that have historically helped preserve wealth during uncertainty. Fund flows into the Gold and Precious Metals Fund (USERX) and the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) were positive for the quarter ended September 30, 2025, a welcome reversal from negative flows in the same quarter of 2024. This aligns with the view that gold is in a secular bull market, partly due to Basel III validating the precious metal as a Tier 1 asset starting in July 2025.

Global investors are targeted through the firm's expanding distribution footprint. U.S. Global Investors, Inc. announced strategic international ETF expansions, including the listing of its SEA ETF on the Mexican Stock Exchange and the launch of the GOAU ETF in Colombia. This shows an effort to access new investor bases outside the primary U.S. market.

Long-term shareholders focused on capital return and yield are catered to through direct shareholder value policies. The company maintained a shareholder yield of 8.32% as of September 30, 2025, which was approximately double the yield on the five-year and 10-year Treasury bonds on that day. Furthermore, the company continued its monthly dividend program at $0.0075 per share and repurchased 801,043 shares during fiscal year 2025.

Investors in cyclical sectors like airlines, gold, and defense form a core part of the client base, as the firm is known for its deep expertise in these areas. The CEO noted that the challenge to turn operating income positive in late 2024 was simply fund flows into these thematic, cyclical products. The launch of the WAR ETF specifically targets the defense sector, where global spending on AI in aerospace and defense is estimated to expand from approximately $28 billion in 2025 to around $65 billion by 2034.

Here's a quick look at the key financial metrics relevant to these customer segments as of late 2025:

The overall investor sentiment context shows that fund ownership is widespread across the US, with 56.4 percent of US households owning shares of mutual funds or other US-registered investment companies, including ETFs, in 2025. For those households that do own mutual funds, 82 percent expressed confidence in them in 2025.

The firm's offerings are structured to capture specific market trends, which appeals to investors looking for targeted exposure:

• Exposure to gold and precious metals funds saw positive flows in Q1 FY2026.
• Thematic focus includes natural resources, gold mining, and airlines.
• New actively managed ETF (WAR) launched to capture defense/tech spending.
• International listings target non-US investors in Mexico and Colombia.
• Shareholder return focus evidenced by a yield of 8.32%.

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Cost Structure

The Cost Structure for U.S. Global Investors, Inc. (GROW) is anchored by the firm's operating performance for the fiscal year ended June 30, 2025, which saw total operating revenues of $8.5 million and an operating loss that widened to $2.986 million, contrasting with a net loss of $334,000 for the same period.

For the first quarter of fiscal year 2026, ending September 30, 2025, total operating expenses were calculated at $2,765,000, an increase of 2% or $50,000 over the prior year's quarter.

Key cost drivers showing recent movement in late 2025 include:

• Employee compensation and benefits for the small team increased by $101,000, representing a 9% rise in the quarter ending September 30, 2025.
• Marketing and advertising costs for thematic products saw a significant increase of $52,000, or 48%, in the quarter ending September 30, 2025, reflecting expanded ETF marketing efforts.

The relationship between the full-year operating results and specific cost centers for FY2025 is detailed below, using the latest available quarterly data points to illustrate the nature of these costs:

Specific dollar amounts for FY2025 fund operating expenses, including custody and administration fees, and regulatory compliance and legal fees, are not explicitly itemized in the latest filings to be directly tied to the $8.5 million revenue figure. General and administrative expenses are implicitly included within the total operating expenses that resulted in the $2.986 million operating loss for the full fiscal year 2025.

The firm's commitment to shareholder returns, while not a direct operating cost, represents a significant cash outflow consideration from the cost structure perspective:

• Monthly dividend rate maintained at $0.0075 per share through September 2025.
• Share repurchases totaled approximately $2 million for FY2025, buying back 801,043 shares.

U.S. Global Investors, Inc. (GROW) - Canvas Business Model: Revenue Streams

The primary engine for U.S. Global Investors, Inc. revenue remains the advisory and administrative fees based on AUM (Assets Under Management). These fees are generated through its Investment Management Services segment, which serves its U.S. Global Investors Funds (USGIF) and exchange-traded fund (ETF) clients. For the fiscal year ending June 30, 2025, the average AUM was $1.4 billion, a reduction from $1.9 billion the prior year, which directly impacted fee revenue.

A significant, though more volatile, component is the realized and unrealized gains from the firm's own investment portfolio, categorized under Corporate Investments. This source is reported as 'Other income' and can dramatically swing profitability. For instance, in the first quarter of fiscal year 2026 (ending September 30, 2025), this component was $2.3 million, primarily due to unrealized gains on other investments, which was a near 300% increase from the previous quarter.

Management fees from specialized mutual funds and ETFs form the core of the fee-based revenue. The firm is known for its expertise in thematic areas like gold mining, natural resources, and defense. The recent quarterly performance shows the interplay of these fee streams. For the first quarter of fiscal year 2026, operating revenues were $2.25 million, an increase of 4% year-over-year. This increase was driven by higher advisory and administrative fees for equity mutual funds, which was partially offset by a decrease in ETF fees.

You can see the key financial figures that define these revenue streams in the table below:

The firm's overall financial performance for the last full fiscal year reflected market pressures on AUM-based fees. Total operating revenues of $8.5 million for fiscal year 2025 represented a 23% decline from the prior year, coinciding with the drop in average AUM.

However, the most recent quarter showed a strong rebound in profitability driven by investment performance. Specifically, investment income, which totaled $2.3 million in Q1 2026, drove a net income of $1.5 million for that quarter. This highlights the dual nature of U.S. Global Investors, Inc.'s revenue model, where fee income provides a base, but investment gains provide the margin upside. The components contributing to the fee revenue are:

• Advisory and administrative fees for equity mutual funds (increased in Q1 2026).
• Management fees from ETFs (experienced a decrease in Q1 2026).
• Advisory services and administrative services to mutual funds.

Finance: draft 13-week cash view by Friday.