U.S. Global Investors corrects Q3 FY26 EPS, reports strong income
U.S. Global Investors corrected its Q3 FY26 EPS to $0.21 from $0.23 due to a spreadsheet error understating weighted-average shares. The restatement does not impact net income of $2.7 million or operating revenues of $2.8 million. Average AUM reached $1.6 billion.
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U.S. Global Investors, Inc. has corrected its earnings per share (EPS) for the three and nine months ended March 31, 2026, following the identification of a spreadsheet error that understated weighted-average shares. The restatement reduced the previously reported basic and diluted EPS for the third quarter of fiscal year 2026 from $0.23 to $0.21. The company filed an amended Quarterly Report on Form 10-Q/A to reflect these changes, which do not affect net income, total revenues, operating income, or cash position.
The error stemmed from an inadvertent omission in the spreadsheet used to calculate weighted-average shares, resulting in an overstatement of per-share figures. For the three months ended March 31, 2026, weighted average shares were understated by 702,484 shares, leading to the $0.02 EPS adjustment. For the nine-month period, shares were understated by 230,743 shares, reducing EPS by $0.01. Lisa Callicotte, Chief Financial Officer, stated that the company is enhancing controls over spreadsheet calculations to ensure accurate financial reporting.
Corrected EPS – Three Months Ended March 31, 2026
| Metric | As Reported | As Restated |
|---|---|---|
| Basic & Diluted EPS | $0.23 | $0.21 |
| Avg. Shares (Basic) | 11,858,724 | 12,561,208 |
| Avg. Shares (Diluted) | 11,883,102 | 12,585,586 |
Corrected EPS – Nine Months Ended March 31, 2026
| Metric | As Reported | As Restated |
|---|---|---|
| Basic & Diluted EPS | $0.27 | $0.26 |
| Avg. Shares (Basic) | 12,535,652 | 12,766,395 |
| Avg. Shares (Diluted) | 12,546,628 | 12,777,371 |
Despite the restatement, the company reported a strong financial performance for the third quarter of fiscal year 2026. Net income was $2.7 million, or $0.21 per share (restated), compared to a net loss in both the prior quarter and the same quarter a year earlier. Total operating revenues rose to $2.8 million, a 10% increase over the prior quarter and a 31% increase over the same quarter in fiscal year 2025.
Average assets under management (AUM) reached $1.6 billion during the quarter, driven by strength in gold and natural resources strategies. Frank Holmes, Chief Executive Officer and Chief Investment Officer, emphasized that business fundamentals remain strong and noted that the company has repurchased more than 20% of its outstanding shares over the past five years.
Selected Financial Data (Three Months Ended)
| Metric | 3/31/2026 | 3/31/2025 |
|---|---|---|
| Operating Revenues | $2,762 | $2,103 |
| Operating Expenses | 2,674 | 2,996 |
| Operating Income (Loss) | 88 | (893) |
| Total Other Income (Loss) | 1,745 | 648 |
| Income (Loss) Before Income Taxes | 1,833 | (245) |
| Income Tax Expense (Benefit) | (844) | 137 |
| Net Income (Loss) | $2,677 | $(382) |
| Net Income (Loss) Per Share | $0.21 | $(0.03) |
| Avg. Shares Outstanding (Basic) | 12,561,208 | 13,023,636 |
| Avg. Shares Outstanding (Diluted) | 12,585,586 | 13,024,441 |
| Avg. Assets Under Management (Billions) | $1.6 | $1.4 |
What specific internal controls is the company implementing to prevent future spreadsheet calculation errors?
How will the recent restatement impact investor confidence and the company's stock price in the short term?
Will the company continue its share repurchase program at the same pace given the strong financial performance?
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