Sprott Inc.

Sprott reported Q2 net income of $34.3 million, up from $13.5 million in the same quarter last year, and adjusted EBITDA of $50.8 million, up from $25.5 million. Year to date, net income was $63.5 million versus $25.5 million last year, and adjusted EBITDA was $108.7 million versus $47.4 million. AUM finished the quarter at $55.6 billion, down 15% from $65.1 billion at March 31, 2026 and down 7% from $59.6 billion at December 31, 2025; average AUM was $63.9 billion, up 70% year over year. Management did not provide formal next-quarter or full-year financial guidance on the call, but said precious-metals prices had stabilized, critical-materials flows remained positive, and the new ETF suite continued to scale quickly.

Whitney George framed the quarter as challenging for precious metals but argued the pullback was cyclical rather than a change in long-term fundamentals. He emphasized that the drivers behind gold remain intact, including rising government debt, fiscal deficits, monetary debasement and demand for reserve assets outside the sovereign debt system. He also highlighted operating leverage in the model, saying adjusted EBITDA margins have increased from 53% to 71%, and pointed to the company being debt-free and generating strong free cash flow.

Kevin Hibbert said AUM fell to $55.6 billion, down 15% sequentially and down 7% from year-end 2025, mainly because of market depreciation and precious-metals outflows, partly offset by critical-materials inflows. He reported net income of $34.3 million and adjusted EBITDA of $50.8 million for Q2, with both figures improving sharply year over year, and noted year-to-date net income of $63.5 million and adjusted EBITDA of $108.7 million. He also said cash and liquidity remain strong and that the company continued to repurchase shares opportunistically.

Analysts focused on what ETF growth could look like if resource prices stayed flat, and John Ciampaglia replied that the opportunity is tied to a long secular trend in critical materials, especially as investors learn the importance of rare earths, copper and uranium in supply chains and electrification. On profitability, he said ETF scale is the key driver because fixed costs decline as a percentage of AUM and many North American 40 Act funds can approach breakeven around $25 million in assets. Management also explained that buybacks are driven by internal financial levels and cash, executed in a dollar-cost-averaging manner, and confirmed they were active in Q3.