Executive Summary
US Global Investors (GROW) delivered a highly challenging QQ3 2024 quarter characterized by negative revenue and a slender bottom-line impact, with net income of -$35k and EBITDA of -$446k. Reported revenue was -$3.234 million, against a relatively small cost of revenue of $41k, producing a gross loss of -$3.275 million. The quarter also featured a negative operating result (-$0.538 million) and a marginal net income result on a per-share basis (-$0.0025). The negative top-line result stands in contrast to a historically asset-light, fee-based business model. Management commentary in the transcript is not available in the provided dataset, limiting the ability to quote direct strategic nudges. Still, the company finishes QQ3 2024 with a solid balance sheet and ample liquidity: cash and cash equivalents of $28.46 million, total cash and short-term investments of $38.53 million, and a modest total debt load of $0.0596 million, yielding a net debt position of approximately -$27.86 million. The balance sheet is complemented by a robust equity base (Total stockholders’ equity about $49.85 million) and a current ratio of 17.49, underscoring substantial liquidity. Given the revenue trough and the absence of disclosed forward guidance, the near-term earnings trajectory hinges on AUM/fund inflows, execution of cost controls, and potential strategic actions leveraging the balance sheet. As an investment thesis, GROW presents a cautious stance: meaningful upside requires a sustained rebound in fee-generating activities and an improvement in operating profitability, supported by the company’s cash position and low net leverage.
Key Performance Indicators
QoQ: -214.76% | YoY:-189.24%
QoQ: -276.45% | YoY:-238.77%
QoQ: -380.21% | YoY:-173.70%
QoQ: -102.85% | YoY:-102.16%
QoQ: -102.91% | YoY:-102.27%
Key Insights
Revenue: -$3.234 million in QQ3 2024 (YoY -189.24%, QoQ -214.76%). Gross Profit: -$3.275 million (Gross Margin: ~-101%). Operating Income: -$0.538 million (Operating Margin: ~-16.6%). EBITDA: -$0.446 million. Net Income: -$35 thousand (EPS: -$0.0025). Cash Flow (operating): -$0.057 million; Free Cash Flow: -$0.125 million. Balance Sheet: Total assets $52.77 million; Total liabilities $2.93 million; Total stockholders’ equity $49.85 million. Cash and cash equivalents: $28.46 million; Short-term...
Financial Highlights
Revenue: -$3.234 million in QQ3 2024 (YoY -189.24%, QoQ -214.76%). Gross Profit: -$3.275 million (Gross Margin: ~-101%). Operating Income: -$0.538 million (Operating Margin: ~-16.6%). EBITDA: -$0.446 million. Net Income: -$35 thousand (EPS: -$0.0025). Cash Flow (operating): -$0.057 million; Free Cash Flow: -$0.125 million. Balance Sheet: Total assets $52.77 million; Total liabilities $2.93 million; Total stockholders’ equity $49.85 million. Cash and cash equivalents: $28.46 million; Short-term investments: $10.07 million; Net debt: -$27.86 million (net cash). Liquidity ratios remain exceptionally strong (Current ratio 17.49; Quick ratio 17.49; Cash ratio 12.16). Equity remains the primary value driver, with minimal leverage.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
-3.23M |
-189.24% |
-214.76% |
| Gross Profit |
-3.28M |
-238.77% |
-276.45% |
| Operating Income |
-538.00K |
-173.70% |
-380.21% |
| Net Income |
-35.00K |
-102.16% |
-102.85% |
| EPS |
0.00 |
-102.27% |
-102.91% |
Key Financial Ratios
operatingProfitMargin
16.6%
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0.01
dividendPayoutRatio
-906%
priceEarningsRatio
-279.53
Management Commentary
Notes: The provided dataset contains an empty earnings transcript array for GROW, so no management quotes or themes can be quoted directly from the QQ3 2024 call. Consequently, there are no verbatim quotes to group by themes (strategy, operations, market conditions). Investors should rely on the 10-Q financials and accompanying management commentary released in conjunction with the filing for insights on AUM, product mix, cost controls, and strategic actions. Pending access to the actual transcript, the following qualitative takeaways are assumed: (a) commentary typically centers on fee-based revenue stability, fee-rate discipline, and expense management; (b) potential discussions around product initiatives (ETFs, mutual funds, and alternative strategies) and geographic diversification; (c) strategic actions such as cost controls or capital deployment could be highlighted if management signals a path to improved profitability.
Forward Guidance
No explicit forward guidance is provided in the QQ3 2024 10-Q dataset. Given the headline revenue decline and negative profitability in QQ3, investors should consider the following framework: - Near-term trajectory likely depends on stabilization or rebound in fee-based revenue, potential AUM growth, and successful execution of cost controls. - The company’s substantial cash position and low debt enable opportunistic capital allocation, potential share repurchases, or selective acquisitions if strategic fits arise. - Industry-wide factors to monitor include competitive pressure on management fees, cyclicality of assets under management, and product mix shifts toward higher-margin strategies (e.g., ETFs, optimized portfolios, and alternative funds). - Key monitorables: quarterly AUM trends, net inflows/outflows, fund performance relative to benchmarks, and any management commentary on cost structure optimization or strategic pivots.