GROW

U.S. Global Investors Announces Restatement of EPS for Q3 2026; Reported Financial Strength Remains Unchanged

U.S. Global Investors restates EPS; fundamentals remain solid, valuation clarity needed

<section class="insight" data-version="1">
  <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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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>U.S. Global Investors announced a restatement of EPS for the March 31, 2026 quarter and the nine months ended that same date due to an inadvertent share-count omission. Net income and cashflow were unchanged, while revenue rose 10% QoQ to $2.76 million and AUM held at about $1.6 billion, underscoring resilient fundamentals and a continued share-repurchase program that supports long-term shareholder value.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Restated EPS for Q3 and 9M due to share-count omission. EPS down $0.02 (Q3) and $0.01 (9M).</li><li>Net income unchanged; revenue up 10% QoQ to $2.76M; AUM at $1.6B.</li><li>Q3 net income restated to $2.677M; nine-month net income to $(0.382)M.</li><li>Firm reiterates strong fundamentals; more than 20% of shares repurchased over 5 years.</li><li>CFO notes improved controls; restatement completed promptly.</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; fundamentals remain intact; higher-level guidance unchanged.</li></ul>
  </section>

  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>Category: Corporate Developments. The piece centers on a restatement of earnings per share, a governance/controls update, and a related investor-relations narrative rather than operations, M&amp;A, or earnings surprises. Fits Corporate Developments as it influences valuation timing but not long-term business prospects.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>EPS restatement may pressure near-term multiple valuation; watch for short-term price reaction.</li><li>Net income and cash unchanged, reinforcing underlying business strength.</li><li>AUM remains $1.6B, supporting revenue potential in niche gold/natural resources strategies.</li><li>Share repurchase &gt;20% over 5 years signals ongoing capital allocation confidence.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Restatement announced June 5, 2026.</li><li>Q3 2026 EPS: As Reported $0.23; Restated $0.21.</li><li>Nine months ended 3/31/2026: EPS As Reported $0.27; Restated $0.26.</li><li>Q3 2026 weighted average shares (basic): 11,858,724 As Reported; 12,561,208 Restated.</li><li>Q3 2026 weighted average shares (diluted): 11,883,102 As Reported; 12,585,586 Restated.</li><li>Operating revenues Q3 2026: $2.762M; up 10% QoQ, 31% YoY.</li><li>AUM average during quarter: $1.6B.</li><li>Form 10-Q/A filed to reflect restatement.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Near-term ambiguity from EPS restatement; long-term fundamentals intact, monitor for any valuation readjustments over 1–3 quarters.</p>
  </section>
</section>


<article>
  <header>
    <h2>U.S. Global Investors Announces Restatement of EPS for Q3 2026; Reported Financial Strength Remains Unchanged</h2>
  </header>

  <p><strong>U.S. Global Investors, Inc.</strong> (NASDAQ: <strong>GROW</strong>) today announced that it has completed the restatement of its previously issued earnings per share (<strong>EPS</strong>) figures for the <strong>three-month</strong> and <strong>nine-month</strong> periods ended <strong>March 31, 2026</strong>, and has filed an amended Quarterly Report for the third quarter of fiscal year 2026 on Form 10-Q/A. The restatement results from a clerical omission in the weighted-average shares calculation, impacting per-share figures but not net income, total revenues, operating income or cash position.</p>

  <section>
    <h3>Nature of the Restatement</h3>
    <p>As was previously reported, the Company identified an inadvertent omission in the spreadsheet used to calculate weighted-average shares. The omission resulted 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>

    <p>"We recognize that per‑share information is important to our investors. Upon identifying the clerical omission, we completed the restatement as soon as practicable. We are enhancing our controls over the preparation and validation of spreadsheet calculations to support our commitment to accurate financial reporting," said Lisa Callicotte, Chief Financial Officer of U.S. Global Investors.</p>

    <p>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>.</p>

    <table border="1" cellpadding="4" cellspacing="0" width="100%">
      <tr>
        <td colspan="3"><strong>Corrected EPS – Three Months Ended March 31, 2026</strong></td>
      </tr>
      <tr>
        <td></td>
        <td style="text-align:center"><strong>As Reported</strong></td>
        <td style="text-align:center"><strong>As Restated</strong></td>
      </tr>
      <tr>
        <td><strong>Basic &amp; Diluted EPS</strong></td>
        <td style="text-align:center">$0.23</td>
        <td style="text-align:center">$0.21</td>
      </tr>
      <tr>
        <td><strong>Avg. Shares (Basic)</strong></td>
        <td style="text-align:center">11,858,724</td>
        <td style="text-align:center">12,561,208</td>
      </tr>
      <tr>
        <td><strong>Avg. Shares (Diluted)</strong></td>
        <td style="text-align:center">11,883,102</td>
        <td style="text-align:center">12,585,586</td>
      </tr>
    </table>

    <p>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>.</p>

    <p>Additional details for the nine-month period indicate the following:</p>

    <table border="1" cellpadding="4" cellspacing="0" width="100%">
      <tr>
        <td colspan="3"><strong>Corrected EPS – Nine Months Ended March 31, 2026</strong></td>
      </tr>
      <tr>
        <td></td>
        <td style="text-align:center"><strong>As Reported</strong></td>
        <td style="text-align:center"><strong>As Restated</strong></td>
      </tr>
      <tr>
        <td><strong>Basic &amp; Diluted EPS</strong></td>
        <td style="text-align:center">$0.27</td>
        <td style="text-align:center">$0.26</td>
      </tr>
      <tr>
        <td><strong>Avg. Shares (Basic)</strong></td>
        <td style="text-align:center">12,535,652</td>
        <td style="text-align:center">12,766,395</td>
      </tr>
    </table>

    <p>In connection with the restatement, U.S. Global Investors emphasizes that there is no impact on reported net income, total revenues, operating income, cash position or any other line item in the consolidated financial statements beyond the per-share figures.</p>
  </section>

  <section>
    <h3>Implications for Investors and Compliance</h3>
    <p>The restatement focuses solely on the <strong>weighted-average shares</strong> and resulting <strong>per-share</strong> figures. Management indicates progress in internal controls to prevent similar clerical errors and to strengthen validation processes for spreadsheet calculations. The company continues to emphasize that its overall financial strength remains unchanged.</p>
  </section>

  <section>
    <h3>About U.S. Global Investors and GROW</h3>
    <p>U.S. Global Investors, Inc. is a registered investment advisory firm with longstanding experience in global markets and specialized sectors. The company trades under the <strong>GROW</strong> ticker on the NASDAQ exchange.</p>

    <ul>
      <li><strong>Ticker</strong>: GROW (NASDAQ)</li>
      <li><strong>Industry</strong>: Investment advisory and asset management</li>
      <li><strong>Fiscal focus</strong>: Global markets and specialty sectors</li>
    </ul>
  </section>

  <section>
    <h3>Additional Context and Next Steps</h3>
    <p>The restatement will be reflected in the amended Form 10-Q/A for the third quarter of fiscal year 2026. The company will continue to report on its quarterly results and provide updates as new information becomes available.</p>
  </section>

  <section>
    <p><em>Source: Globe Newswire</em></p>
  </section>
</article>

U.S. Global Investors announced a restatement of EPS for the March 31, 2026 quarter and the nine months ended that same date due to an inadvertent share-count omission. Net income and cashflow were unchanged, while revenue rose 10% QoQ to $2.76 million and AUM held at about $1.6 billion, underscoring resilient fundamentals and a continued share-repurchase program that supports long-term shareholder value.

U.S. Global Investors Announces Restatement of EPS for Q3 2026; Reported Financial Strength Remains Unchanged

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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