U S Global Investors (GROW) risk factors, FY2026 10-K

U S Global Investors's FY2026 10-K, filed Sep 03, 2026, lists 29 risk factors in 4 groups. Against the prior year's 29: 1 new, 1 dropped, 4 substantially reworded.

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Risk factors listed
294 groups
New this year
1vs 29 last year
Dropped
1since the prior 10-K
Substantially reworded
4of those kept
Section length
4k wordsItem 1A

What the changes say

  • A new material weakness threatens accurate, timely reporting and could trigger scrutiny, penalties, litigation, costs, and reputational damage.
  • U.S. Global Jets ETF concentration declined, but still represented 53% of average assets and 47% of operating revenue.
  • Vendor and technology disruption risks now specifically include cybersecurity, cloud, banking, data integrity, and regulatory failures.
  • Corporate investment risks now cover broader market developments and potential effects on financial position, results, and cash flows.

What changed since the prior 10-K

New

  • NewRisks Related to Our Operations

    We have identified a material weakness in our internal control over financial reporting, which could adversely affect our ability to report our financial results accurately and on a timely basis

    A material weakness in financial controls could cause untimely or inaccurate reporting, regulatory action, penalties, litigation, higher costs, and reputational damage.

Dropped

  • DroppedRisks Related to Our Operations

    We previously identified a material weakness in our internal control over financial reporting, which has since been remediated, but may continue to impact perceptions of our controls and expose the Company to potential risk

Reworded

  • 100% rewrittenRisks Related to Our Corporate Investments

    Investment income and assets may be negatively impacted by fluctuations in the Company’s corporate investments

    The risk now covers broader market developments and declines in fair value, and adds possible effects on financial position, results, and cash flows.

  • 55% rewrittenRisks Related to Our Operations

    requiring substantial capital expenditures and operating expenses to remediate damage, replace our facilities, and restore our operations

    The risk now specifically names technology, cybersecurity, cloud, banking, business-continuity, and other service-provider disruptions, including data and regulatory failures.

  • 40% rewrittenRisks Related to Assets Under Management

    The Company derives a substantial portion of revenue from one fund under management

    U.S. Global Jets ETF concentration decreased from 69% to 53% of average assets and from 69% to 47% of operating revenue.

  • 25% rewrittenRisks Related to Our Operations

    We rely upon certain critical information systems for the operation of our business, and the failure of any critical information system, including a cybersecurity breach, may result in harm to our business

    The risk now expressly includes phishing, impersonation, social engineering, and fraud attempts alongside cyberattacks and other disruptions.

All 29 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The investment management business is intensely competitive
  2. 02Level of fees charged for services
  3. 03Failure to comply with government regulations could result in fines, which could cause the Company’s earnings and stock price to decline
  4. 04Our business is subject to substantial risk from litigation, regulatory investigations and potential securities laws liability
  5. 05Increased regulatory and legislative actions and reforms could increase costs and negatively impact the Company’s profitability and future financial results
  6. 06New tax legislation or changes to existing tax laws, our failure to adequately comply with tax laws, or the outcome of any audits or regulatory disputes with respect to our compliance with tax law could adversely affect us
  7. 07Investment Company Act - Certain changes in control of the Company would automatically terminate our investment management agreements with our client unless the funds' boards of directors and shareholders vote to continue the agreements

Risks Related to Our Common Stock

  1. 08One person beneficially owns substantially all of our voting stock and controls the outcome of all matters requiring a vote of stockholders, which may influence the value of our publicly traded non-voting stock
  2. 09The market price and trading volume of the Company’s class A common stock may be volatile, which could result in rapid and substantial losses for the Company’s stockholders
  3. 10General market and economic conditions
  4. 11The market price of the Company’s class A common stock could decline due to the large number of shares of the Company’s class C common stock eligible for future sale upon conversion to class A shares
  5. 12The Company intends to pay regular dividends to its stockholders, but the ability to do so is subject to the discretion of the Board of Directors
  6. 13Acquisitions involve inherent risks that could compromise the success of the combined business and dilute the holdings of current stockholders

Risks Related to Our Operations

  1. 14Natural disasters, epidemics, pandemics, and other unpredictable events could adversely affect our operations
  2. 15requiring substantial capital expenditures and operating expenses to remediate damage, replace our facilities, and restore our operations55% rewritten
  3. 16The loss of key personnel could negatively affect the Company’s financial performance
  4. 17The Company could be subject to losses if it fails to properly safeguard sensitive and confidential information
  5. 18We rely upon certain critical information systems for the operation of our business, and the failure of any critical information system, including a cybersecurity breach, may result in harm to our business25% rewritten
  6. 19Higher insurance premiums and related insurance coverage risks could increase costs and reduce profitability
  7. 20We have identified a material weakness in our internal control over financial reporting, which could adversely affect our ability to report our financial results accurately and on a timely basisNew

Risks Related to Assets Under Management

  1. 21Poor investment performance could lead to a decline in revenues
  2. 22The Company’s clients can terminate their agreements with the Company on short notice, which may lead to unexpected declines in revenue and profitability
  3. 23The Company derives a substantial portion of revenue from one fund under management40% rewritten
  4. 24Difficult market conditions can adversely affect the Company by reducing the market value of the assets we manage or causing shareholders to make significant redemptions
  5. 25Market-specific risks may negatively impact the Company’s earnings

Risks Related to Our Corporate Investments

  1. 26Investment income and assets may be negatively impacted by fluctuations in the Company’s corporate investments100% rewritten
  2. 27The Company has indirect exposure to the cryptocurrency markets through its investments
  3. 28Adverse changes in foreign currencies could negatively impact financial results
  4. 29Regulatory developments such as the GENIUS Act may adversely impact companies in which we invest

Other U S Global Investors 10-Ks

  • FY2025 10-K risk factors
    29 risks2 new1 dropped9 reworded

    Revenue concentration in the U.S. Global Jets ETF dropped from 80% to 69% of operating revenues. Material weakness in internal control was remediated. New stablecoin regulations and cryptocurrency exposures were added.

    Filed Sep 08, 2025
  • FY2024 10-K risk factors
    28 risks

    Concentration of 79 to 83 percent of average net assets in the U.S. Global Jets ETF dominates revenues. CEO Frank Holmes controls over 99 percent of voting stock via class C shares. A material weakness in internal control over financial reporting affects financial statement accuracy.

    Filed Sep 10, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.