Sprott Inc.

Sprott reported second-quarter 2026 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. AUM finished 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, with $0.4 billion in net redemptions. Average AUM was $63.9 billion for the quarter, up 70% year over year from $37.6 billion. Management did not provide formal next-quarter or full-year financial guidance, but said precious-metals prices have stabilized, critical-materials interest remains broadening, and the latest ETF launches are reaching scale faster; they also said the firm is debt-free, generating strong free cash flow, and continuing opportunistic share repurchases.

Whitney George said the quarter was difficult because of a severe but, in his view, cyclical correction in precious metals, not a deterioration in the long-term bull case. He emphasized that government debt, fiscal deficits, monetary debasement and demand for reserve assets still support gold, while critical materials are gaining attention from both specialist and generalist investors. His tone was confident and constructive, repeatedly framing the business as resilient and still early in a larger secular trend.

Kevin Hibbert highlighted that AUM fell to $55.6 billion, but average AUM rose sharply to $63.9 billion in the quarter and $66.6 billion year to date, which supported earnings. He said net income was $34.3 million for the quarter and adjusted EBITDA was $50.8 million, both more than double last year’s quarter, and pointed to higher average AUM plus carried interest crystallization in Private Strategies as key drivers. He also said the cash and liquidity profile remains strong and that the company continues to repurchase shares opportunistically.

Analysts focused on ETF growth if resource prices stay flat, the profitability of exchange-listed products, which commodities best fit the critical-materials theme, and why precious-metals trusts saw heavier outflows. Management said the ETF opportunity is still early because investors are only beginning to allocate to critical materials, and they expect secular demand from electrification, AI data centers, energy security and defense. On buybacks, management said repurchases are guided by its own financials and cash level, not peer valuation, and that it has already been active in Q3.