GROW

U.S. Global Investors Announces Intent to Restate EPS for the March 31, 2026, Financial Statements; Underlying Financial Results Unchanged

U.S. Global Investors restates EPS; modest fundamentals impact, near-term trading risk

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  <section data-block="information">
    <h3>Information</h3>
    <p>&lt;link type=&quot;text/css&quot; rel=&quot;stylesheet&quot; href=&quot;https://www.globenewswire.com/styles/gnw_nitf.css&quot;&gt;&lt;/li...</p>
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    <h3>AI Summary</h3>
    <p>U.S. Global Investors will amend its Q3 and 9M 2026 EPS after a clerical share-count omission overstated per-share results. The corrected figures show Q3 EPS of $0.21 and a restated share count, with no changes to net income, revenues, cash, or AUM which sits at $1.6B. The company maintains its two-pillar capital return strategy (monthly dividends and buybacks), while investors watch for the Form 10-Q/A filing and any near-term stock volatility.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>U.S. Global Investors to restate EPS for Q3 and 9M 2026 due to share-count error.</li><li>Q3 EPS overstated by $0.02 from 702,484 understated shares; corrected EPS $0.21.</li><li>Nine months EPS overstated by $0.01 due to 230,743 understated shares.</li><li>Net income unchanged; Q3 net income $2.7M; AUM $1.6B, highest in nearly two years.</li><li>Five-year buyback totalling ~2.7M shares, reducing float by &gt;20%.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>U.S. Global Investors, Inc. (GROW)</strong>: Announced EPS restatement for Q3 and 9M 2026 due to clerical share-count omission; underlying net income and cash flow unchanged.</li></ul>
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  <section data-block="category">
    <h3>Earnings</h3>
    <p>Category: Earnings. Restating EPS figures directly affects perceived quarterly performance and valuation multiples, even though core results and business fundamentals remain intact.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>EPS restatement may cause short-term price volatility despite unchanged fundamentals.</li><li>Active buyback has reduced shares by ~2.7 million, supporting per-share metrics.</li><li>Amended Form 10-Q/A filing is anticipated, potentially triggering transient moves around filing.</li><li>Bloomberg price data shows May trading around $2.63, indicating limited downside.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>EPS restatement applies to the three months ended March 31, 2026 and the nine months ended March 31, 2026.</li><li>Q3: weighted average shares understated by 702,484; EPS overstated by $0.02.</li><li>Nine months: understated by 230,743 shares; EPS overstated by $0.01.</li><li>Corrected Q3 basic/diluted EPS: $0.21; weighted average shares basic 12,561,208; diluted 12,585,586.</li><li>Five-year period ended March 31, 2026: ~2.7 million shares repurchased; &gt;20% reduction.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>GROW likely trades sideways in the near term as the restatement is clarified, with no lasting fundamental deterioration.</p>
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<article>
  <section>
    <p><strong>U.S. Global Investors, Inc. (NASDAQ: GROW) has announced it will restate its earnings per share (EPS) for the three-month and nine-month periods ended March 31, 2026, as previously reported in its Form 10-Q for the third quarter of fiscal year 2026. The restatement affects per-share metrics, but not net income, total revenues, operating income or cash position, and the company will file an amended Form 10-Q/A with the SEC.</strong></p>
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  <section>
    <h2>Nature of the Restatement</h2>
    <p>The Company identified a miscalculation of basic and diluted weighted average shares outstanding used to determine basic and diluted EPS. Within a supporting spreadsheet, a component of shares was inadvertently omitted from the calculation, resulting in understated basic and diluted weighted average common shares and overstated basic and diluted EPS for the three- and nine-month periods ended March 31, 2026. </p>
    <p>The miscalculation had no impact on the Company's reported net income, total revenues, operating income, cash position or any other line item in the consolidated financial statements. Only the weighted average number of shares outstanding and the resulting per-share figures are affected.</p>
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  <section>
    <h2>Management Commentary on the Correction</h2>
    <p>“The miscalculation was a clerical omission in a supporting schedule, not a change in the Company's underlying performance,” said Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors. “Because our share count moves every month as a result of our active buyback program, the weighted average share calculation is inherently dynamic. We have identified the issue and are implementing enhancements to our review procedures so that the per-share presentation of our results accurately reflects that dynamic in every reporting period.”</p>
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  <section>
    <h2>Three- and Nine-Month EPS Corrections</h2>
    <ul>
      <li>For the <strong>three months ended March 31, 2026</strong>, weighted average shares were understated by <strong>702,484 shares</strong>, resulting in an overstatement of basic and diluted EPS of <strong>$0.02</strong>. Corrected basic and diluted EPS is <strong>$0.21</strong>, with restated weighted average shares outstanding of <strong>12,561,208</strong> (basic) and <strong>12,585,586</strong> (diluted).</li>
      <li>For the <strong>nine months ended March 31, 2026</strong>, weighted average shares were understated by <strong>230,743 shares</strong>, resulting in an overstatement of basic and diluted EPS of <strong>$0.01</strong>. The corrected basic and diluted weighted average shares outstanding and the basic and diluted EPS will be reflected in the Company's amended Form 10-Q/A.</li>
    </ul>
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  <section>
    <h2>Regulatory Filings and Guidance</h2>
    <p>Any previously furnished reports, press releases, earnings releases and investor presentations or other communications describing the Company's consolidated financial statements as of and for the three and nine months ended March 31, 2026, should no longer be relied upon. The Company intends to file an amendment on Form 10-Q/A with the Securities and Exchange Commission (SEC) as promptly as practicable. Investors and shareholders are encouraged to review the amended filing once available. All other financial data previously disclosed in connection with the third quarter of fiscal year 2026 remains unchanged.</p>
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  <section>
    <h2>Returning Capital to Shareholders</h2>
    <p>The Company's commitment to returning capital to shareholders through its two-pillar strategy of monthly dividends and ongoing share repurchase program is longstanding. Over the five-year period ended March 31, 2026, the Company repurchased approximately <strong>2.7 million</strong> shares of its common stock, representing a more-than <strong>20%</strong> reduction.</p>
    <p>“I want to assure our shareholders that the fundamentals of our business remain strong,” said Mr. Holmes. “Net income for the quarter ended March 31, 2026, was <strong>$2.7 million</strong>, and our average assets under management (AUM) reached <strong>$1.6 billion</strong>, the highest level in nearly two years. The correction to our per-share figures does not change the underlying story of a profitable quarter.”</p>
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  <section>
    <h2>About U.S. Global Investors, Inc.</h2>
    <p>The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (<a href="https://www.usfunds.com" rel="nofollow" target="_blank">www.usfunds.com</a>) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides investment management and other services to U.S. Global Investors Funds and U.S. Global ETFs.</p>
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  <section>
    <h2>Forward-Looking Statements and Market Context</h2>
    <p><em>This news release may include certain "forward-looking statements" including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.</em></p>
    <p>Bloomberg data for the period May 13, 2026, through May 29, 2026, shows that GROW shares traded in a range of <strong>$2.55 to $2.71</strong>, with an average of <strong>$2.63</strong> and a net change of just <strong>$0.09</strong>, or <strong>3.53%</strong>. Average daily trading volume was <strong>24,154</strong>.</p>
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  <section>
    <h2>Attachment</h2>
    <ul>
      <li><a href="https://ml.globenewswire.com/Resource/Download/1ee101ca-c525-45ef-b44b-26f19c080895" target="_blank" rel="nofollow">Number of GROW Share Repurchases Per Quarter</a></li>
    </ul>
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  <section>
    <p><strong>Contact</strong><br>
    Holly Schoenfeldt<br>
    U.S. Global Investors, Inc.<br>
    210.308.1268<br>
    <a href="mailto:hschoenfeldt@usfunds.com">hschoenfeldt@usfunds.com</a></p>
  </section>
</article>

U.S. Global Investors will amend its Q3 and 9M 2026 EPS after a clerical share-count omission overstated per-share results. The corrected figures show Q3 EPS of $0.21 and a restated share count, with no changes to net income, revenues, cash, or AUM which sits at $1.6B. The company maintains its two-pillar capital return strategy (monthly dividends and buybacks), while investors watch for the Form 10-Q/A filing and any near-term stock volatility.

U.S. Global Investors Announces Intent to Restate EPS for the March 31, 2026, Financial Statements; Underlying Financial Results Unchanged

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Earnings

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