U.S. Global Investors: From Gold to AI Infrastructure, a Strategic Pivot with a Sevenfold Win

The asset manager leans into HIVE's AI transition, defense ETFs, and a surging private investment while boosting shareholder yield.

GROW · Earnings Call · 2026-05-14

Quarter in Review

U.S. Global Investors reported a strong fiscal third quarter, with total revenue up 31% year-over-year to $3 million and net income of $2.7 million versus a loss a year ago. CFO Lisa Callicotte noted that “average assets under management were $1.63 billion for the quarter ending March 31, 2026. This is a 15% increase from the same quarter a year ago” — Lisa Callicotte, Chief Financial Officer · 2026-05-14, driven by higher gold mutual funds and the Gold ETF. The company also recorded a $1.9 million unrealized gain on its Investec Series investment, a $500,000 position now valued at roughly seven times that. Total Revenue rose to $3 million, up 31% YoY, though still well below its 2021 peak.

AI, Defense, and the Investec Surge

The most notable narrative shift this quarter is the company’s increasing emphasis on AI infrastructure and defense, driven by its stake in HIVE Blockchain, now transitioning to AI data centers. CEO Frank Holmes described HIVE as “a dual engine, both data centers, Tier 1 for Bitcoin mining, but Tier 3 is now building AI factories” — Frank Holmes, CEO and Chief Investment Officer · 2026-05-14. This aligns with a broader market theme where AI infrastructure is a dominant driver across both technology and energy. The company’s WAR ETF, focused on AI-enabled defense, has also performed well, up over 50% in the past 12 months. The Investec gain is a direct result of the company’s strategy of making “alternative investments” to stay close to technology trends, as Holmes explained: “we participate them so that we have our nose into what's going on in the world outside of listed public companies” — Frank Holmes, CEO and Chief Investment Officer · 2026-05-14.

With the stock buybacks, that total shareholder yield is 9.96%. So this just begs the thought process of continuing to buy back the stock and makes it a very compelling investment.
Frank Holmes, CEO and Chief Investment Officer · 2026-05-14

Shareholder Yield and Buybacks

The company continues to emphasize shareholder returns through a combination of dividends and aggressive buybacks. Management highlighted a total shareholder yield of 9.96%, well above the 5-year Treasury yield. In the quarter, GROW repurchased 176,592 Class A shares for $534,000. This is part of a broader strategy that has reduced shares outstanding by ~20% since 2019. As Holmes put it, “we strategically buy back our stock using an algorithm on flat and down days” — Frank Holmes, CEO and Chief Investment Officer · 2026-05-14. The stock buyback program is a core pillar of the value proposition, alongside the dividend.

Gold Momentum

Finally, the company is highlighting that gold equities are now demonstrating “momentum” characteristics, historically a precursor to sustained outperformance. Holmes pointed out that gold stocks are starting to show up as momentum stocks, similar to 2002 when they outperformed for five years. With gold prices having corrected from $5,500 but still far above year-ago levels, the firm sees a continued favorable environment for its flagship products. The emphasis on gold stocks remains central to the firm’s identity, and the recent strength in active ETFs (with active managers capturing an increasing share of flows) bodes well for its product suite. In prior quarters, the company’s focus on gold and HIVE was already evident, but this quarter’s explicit pivot toward AI data centers and defense, combined with a tangible sevenfold return on a private investment, marks a clear evolution. As Holmes noted then, “we're in the fund business and a lot of our funds are in the gold business” — Frank Holmes, Chief Executive Officer · 2024-11-08, yet the firm is now positioning itself at the intersection of AI, defense, and gold. With the stock up 31% in the last 90 days and a pristine balance sheet, U.S. Global Investors is offering a compelling story for investors wanting exposure to these macro themes in a micro-cap wrapper.