Loading...
01/11 16:25
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals several negative factors: a significant decline in AUM leading to reduced revenues, a net loss compared to previous net income, and high operating expenses. Despite optimistic guidance on thematic ETFs and shareholder return efforts, these positives are overshadowed by market volatility, geopolitical risks, and dependency on key products. The Q&A section's unclear management responses further contribute to uncertainty, reinforcing a negative sentiment. The stock is likely to experience a negative reaction of -2% to -8% over the next two weeks due to these challenges.
Average assets under management $1.4 billion for the year ending June 30, 2025, a decrease from the prior year due to reduced assets in JETS ETF.
Operating revenues $8.5 million, a decrease of $2.5 million or 23% year-over-year, primarily due to a decrease in assets under management, especially in JETS ETF.
Operating expenses $11.4 million, relatively flat compared to the prior year.
Operating loss $3 million for the year ending June 30, 2025.
Other income $2.7 million, an increase of $329,000 compared to the prior year, mainly due to higher investment income.
Net loss after taxes $334,000 or $0.03 per share, an unfavorable change of $1.7 million compared to the net income of $1.3 million or $0.09 per share in fiscal year 2024.
Net working capital $37.2 million as of June 30, 2025, with a current ratio of 20.9:1.
Smart Beta 2.0 Products: The company continues to focus on creating thematic smart beta 2.0 products, which are rigorously backtested for thousands of hours before launch.
War ETF: Launched 9 months ago, this ETF focuses on defense spending and cybersecurity-related investments, aligning with the growing AI and military spending trends.
Sea Cargo Shipping ETF: This product is gaining traction in emerging markets like Peru, offering exposure to global trade and shipping companies with high dividend payouts.
Global Expansion of ETFs: U.S. Global ETFs, including JETS and GOAU, are now listed on the Mexican Stock Exchange and other Latin American markets like Bogota, Peru, and Chile.
Increased Interest in Emerging Markets: Family offices in Mexico and Peru have shown interest in ETFs like JETS and the Sea Cargo Shipping ETF, reflecting growing demand in these regions.
Assets Under Management: Average assets under management were $1.4 billion for the fiscal year ending June 30, 2025, a decrease from the previous year due to reduced assets in JETS ETF.
Revenue and Loss: Operating revenues were $8.5 million, down 23% from the prior year, resulting in a net loss of $334,000 or $0.03 per share.
Share Buyback Program: The company repurchased shares worth $1.9 million as part of its strategy to enhance shareholder value.
Focus on Bitcoin Ecosystem: The company is increasing its exposure to the Bitcoin ecosystem, citing its scarcity and growing adoption, especially in the U.S.
AI and Military Spending: Thematic focus on AI and military spending, including investments in NVIDIA chips and autonomous technologies, aligns with global defense trends.
Gold and Alternative Assets: Increased focus on gold and Bitcoin as alternative asset classes, driven by global de-dollarization and central bank purchases of gold.
Market Volatility: The company faces challenges due to high market volatility, particularly in the S&P, gold, and other assets. This volatility impacts revenue and investment decisions.
Decline in Assets Under Management (AUM): AUM decreased significantly, especially in the JETS ETF, leading to a 23% drop in operating revenues compared to the prior year.
Net Loss: The company reported a net loss of $334,000 for fiscal year 2025, a significant decline from the previous year's net income of $1.3 million.
Regulatory and Geopolitical Risks: The company shut down its Eastern European fund due to geopolitical tensions, such as the Russia-Ukraine conflict, which disrupted market dynamics.
Gold and ETF Market Challenges: Despite gold reaching all-time highs, there were significant redemptions in gold ETFs, indicating market disconnect and investor hesitancy.
Economic and Trade Uncertainties: Global trade uncertainties, including tariffs and geopolitical tensions, have impacted sectors like cargo shipping and emerging markets.
Dependence on Key Products: Revenue heavily depends on specific ETFs like JETS and GOAU, making the company vulnerable to performance fluctuations in these products.
Bitcoin Ecosystem Exposure: The company has increased exposure to the Bitcoin ecosystem, which carries risks due to regulatory uncertainties and market volatility.
High Operating Expenses: Operating expenses remained flat at $11.4 million, despite a decrease in revenues, contributing to the overall net loss.
Liquidity and IPO Concerns: The lack of new IPOs and increased M&A activity could impact market liquidity and the company's ability to grow its investment portfolio.
Revenue Expectations: The company anticipates a potential rapid directional change in fund flows and assets under management, which could positively impact revenue. They remain committed to buying back stock on flat and down days to enhance shareholder value.
Market Trends: Gold and Bitcoin are expected to gain more appeal as alternative asset classes due to excessive money printing and global economic conditions. The company is optimistic about the growth of thematic ETFs, particularly in sectors like gold, airlines, and defense.
Business Segment Performance: Thematic ETFs like JETS and GOAU are expected to perform well, with JETS capturing 9% of global GDP and GOAU benefiting from increased interest in gold. The company is also optimistic about the growth of its WAR ETF, which focuses on defense spending and AI-related investments.
Capital Expenditures: The company plans to continue deploying capital into the Bitcoin ecosystem and thematic ETFs, particularly in emerging markets and sectors like AI and defense.
Growth Expectations: The company expects a long-term secular bull market for its thematic asset classes and remains bullish on the potential for rapid growth in assets under management.
Monthly Dividend: The company pays a monthly dividend with a yield of 3.66%, which is considered more attractive than many money funds.
Share Repurchase Program: The company repurchased shares totaling $1.9 million using cash by the end of June 30, 2025. This is part of the company's strategy to enhance shareholder value by buying back stock on flat and down days.
Shareholder Yield: The shareholder yield, which includes dividends, buybacks, and debt reduction divided by market cap, is calculated at 9%, making the stock an attractive buy.
The company's earnings call highlights several positive aspects, including increased operating revenues, net income, and a strong shareholder return plan with ongoing buybacks and dividends. Despite some challenges like decreased AUM and increased expenses, the optimistic outlook on thematic ETFs, gold, and Bitcoin, along with strategic investments, suggests potential growth. The positive sentiment is further bolstered by the company's belief in stock undervaluation and buyback strategy, indicating a positive stock price movement in the short term.
The earnings call reveals several negative factors: a significant decline in AUM leading to reduced revenues, a net loss compared to previous net income, and high operating expenses. Despite optimistic guidance on thematic ETFs and shareholder return efforts, these positives are overshadowed by market volatility, geopolitical risks, and dependency on key products. The Q&A section's unclear management responses further contribute to uncertainty, reinforcing a negative sentiment. The stock is likely to experience a negative reaction of -2% to -8% over the next two weeks due to these challenges.
The earnings call summary presents a mixed picture. The company is actively enhancing shareholder value through buybacks and dividends, and has a strong financial position with no long-term debt. However, there are concerns about decreased revenues and operating income, along with challenges in raising assets under management. The strategic focus on thematic investing and gold offers potential upside, but risks related to market volatility and competition persist. Overall, the sentiment is balanced, leading to a neutral stock price prediction over the next two weeks.
The earnings call reveals mixed signals. The strong buyback program and dividend yield are positive, but declining revenues and net income, along with market challenges, balance out the positives. The Q&A section didn't provide additional clarity, leaving uncertainties unaddressed. Overall, the sentiment is neutral as the positive shareholder returns are offset by financial declines and market risks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
