The strong YoY earnings beat is largely a catch-up effect from prior AUM growth—ending AUM dropped sharply, signaling that Q3 revenue will face headwinds if precious metals don't recover. Monitor gold price action ($4,000/oz level) and net flow trends in critical materials ETFs for direction. The dividend is steady, but further AUM erosion would pressure the fee base.
Price Chart
Executive Summary
Sprott Inc. reported Q2 2026 net income of $34.3M ($1.33/share), up 154% YoY from $13.5M ($0.52/share), driven by a 70% increase in average AUM to $63.9B. However, ending AUM fell 15% QoQ to $55.6B due to a sharp correction in precious metals prices (gold -14.1%, silver -22%) and $377M in net redemptions. The strong headline earnings growth was largely a function of higher average AUM from prior quarters, while the sequential AUM decline signals ongoing headwinds from underlying commodity volatility.
Key Facts
- AUM was $55.6B as at June 30, 2026, down 15% from $65.1B at March 31, 2026 and down 7% from $59.6B at December 31, 2025.
- Net income Q2 2026: $34.3M ($1.33/share) vs $13.5M ($0.52/share) in Q2 2025 — up 154%.
- Adjusted EBITDA Q2 2026: $50.8M ($1.97/share) vs $25.5M ($0.99/share) in Q2 2025 — doubled.
- Management fees Q2 2026: $76.4M, up 72% from $44.4M in Q2 2025.
- Net redemptions of $377M in Q2 2026; market value depreciation of $9.1B.
- Subsequent AUM as at July 31, 2026: $55.3B, slightly below June 30.
- Quarterly dividend of $0.40 per share declared on August 4, 2026.
- New Sprott Rare Earths Ex-China ETF (REXC) launched April 15, 2026; Sprott Physical Copper Trust began NYSE trading under SCOP on May 4, 2026.
Financial Impact
Revenue of $80.2M (Q2 2026) vs $65.2M (Q2 2025); net income $34.3M vs $13.5M; Adjusted EBITDA $50.8M vs $25.5M. Cash & equivalents $189.8M; no debt drawn on $75M credit facility.
Risk Factors
- Further precious metals price declines could compress management fees and AUM.
- Concentration risk: 94% of managed equities AUM in precious metals strategies.
- Stock-based compensation is sensitive to SII's own stock price (15% YTD appreciation driving $39.7M expense).
- Geopolitical volatility (U.S.-Iran conflict) may sustain risk-off positioning, reducing investor flows into commodity funds.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-052907 |
| Document: pressrelease2026q2.htm | 0001628280-26-052907 |
| Document: sprott-q22026earningsx6xk.htm | 0001628280-26-052907 |
| Document: ceocertificate2026q2filing.htm | 0001628280-26-052907 |
| Document: cfocertificate2026q2filing.htm | 0001628280-26-052907 |
| Document: 0001628280-26-052907-index-headers.html | 0001628280-26-052907 |
| Document: 0001628280-26-052907-index.html | 0001628280-26-052907 |
| Document: 0001628280-26-052907.txt | 0001628280-26-052907 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 11w ago | 6-K | $115.64 $127.83 | ▲ +10.54% | ▲ +11.14% | $105.85 (−8.47%) |
Aug 5, 2026 11w ago | 6-K | $115.64 $127.83 | ▲ +10.54% | ▲ +11.14% | $105.85 (−8.47%) |
Aug 4, 2026 11w ago | Press Release | $104.75 $127.07 | ▲ +21.31% | ▲ +22.55% | $105.85 (+1.05%) |
Jul 31, 2026 12w ago | 6-K | $103.01 $132.95 | ▲ +29.07% | ▲ +26.08% | $105.85 (+2.76%) |
May 5, 2026 24w ago | Press Release | $126.77 $133.33 | ▲ +5.17% | ▲ +0.22% | $105.85 (−16.50%) |
Apr 28, 2026 25w ago | Press Release | $127.90 $128.00 | ▲ +0.08% | ▼ −5.39% | $105.85 (−17.24%) |
Apr 2, 2026 29w ago | 6-K | $140.81 $130.40 | ▼ −7.39% | ▼ −17.27% | $105.85 (−24.83%) |
US Market Status
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