The Marygold Companies, Inc. a diversified global holding firm, its financial results for the second fiscal quarter of 2025, which ended on December 31, 2024. The report highlights both the challenges and progress made by the Company as it continues to invest heavily in its fintech initiatives while managing its diverse portfolio of operating subsidiaries.
Financial Performance Overview
For the three months ended December 31, 2024, TMC reported revenue of $8.0 million, a slight decrease from $8.5 million during the same period last year. The Company recorded a net loss of $1.7 million, equivalent to a loss of $0.04 per share, compared to a net loss of $1.2 million, or $0.03 per share, in the second quarter of fiscal 2024. For the six months ended December 31, 2024, revenue totaled $15.9 million, with a net loss of $3.3 million, or $0.08 per share, versus revenue of $16.7 million and a net loss of $1.7 million, or $0.04 per share, for the comparable prior-year period.
The decline in revenue over both periods was primarily attributed to a reduction in average assets under management (AUM) at TMC’s largest subsidiary, USCF Investments. AUM decreased to $3.1 billion from $3.5 billion a year ago, directly impacting management fees earned by the Company. Additionally, fluctuations in global commodity pricing trends and a stronger U.S. dollar negatively affected currency translation values in TMC’s foreign subsidiaries. Despite these headwinds, the performance of TMC’s core operating subsidiaries remained within expectations.
The net loss for the quarter largely reflected ongoing expenses related to the development and rollout of TMC’s mobile banking fintech app through its Marygold & Co. subsidiaries in the U.S. and the U.K. These investments are part of the Company’s long-term strategy to establish a foothold in the rapidly growing fintech sector.
Strengthening Financial Position
As of December 31, 2024, TMC reported cash and cash equivalents of $5.7 million, a modest increase from $5.5 million at the close of the prior fiscal year on June 30, 2024. However, total stockholders’ equity declined to $23.4 million from $26.6 million at fiscal year-end, primarily due to the net losses incurred during the first half of the fiscal year.
To address cash flow needs for future development and the rollout of its fintech app, TMC secured a $4 million note during the first quarter. Additionally, the Company completed an equity raise of $2.3 million in gross proceeds shortly after the close of the second quarter, facilitated by a prospectus supplement for its Form S-3 shelf registration. While these actions provided necessary funding, they also contributed to the net loss for the quarter.
Leadership Insights: Challenges and Opportunities
David Neibert, TMC’s Chief Operations Officer, acknowledged the financial challenges faced during the quarter but emphasized the strategic steps being taken to position the Company for future success. “For the quarter just ended, we had budgeted for continued losses, based in large part on cash expenditures incurred by our Marygold fintech subsidiary,” said Neibert. “These investments are critical to advancing our mobile banking app and ensuring its successful launch.”
Neibert expressed optimism about the Company’s trajectory, noting that operating subsidiaries in New Zealand, Canada, and the U.S. continue to perform well overall. “Moving into the second half of our fiscal year, we expect to significantly reduce expenses in our Marygold & Co. subsidiary, having successfully completed the proof-of-concept phase,” he added.
Nicholas Gerber, TMC’s Chief Executive Officer, echoed this sentiment, emphasizing the importance of perseverance during this transformative period. “We have spent nearly $20 million on what we refer to as the ‘Marygold Project,’ which includes Marygold & Co. and its counterpart, Marygold & Co. (UK) Limited,” Gerber explained. “We view these costs as investments in TMC’s long-term future, and believe the Company is poised to move forward with the initial rollout of the mobile app in the U.K. shortly, while we strategize on marketing direction for the app in the U.S.”
Gerber acknowledged the difficulties faced by shareholders during this period of transition. “As shareholders, we all have gone through a painful period of enduring losses, while we refocused our corporate resources in the fintech sector, he said. I believe we will turn the corner soon and begin to see some tangible results for those efforts.
Diverse Portfolio of Operating Subsidiaries
TMC’s diversified portfolio spans multiple industries, reflecting its commitment to building a resilient and innovative global holding firm. Key subsidiaries include:
- USCF Investments: Based in Walnut Creek, California, USCF Investments manages, operates, or advises 15 exchange-traded products structured as limited partnerships or investment trusts. These products issue shares that trade on the NYSE Arca.
- Gourmet Foods: Acquired in 2015, this New Zealand-based commercial-scale bakery produces and distributes iconic meat pies and pastries under the brands Pat’s Pantry and Ponsonby Pies. In 2020, Gourmet Foods acquired Printstock Products Limited, a specialized food wrapper printer located in Napier, New Zealand.
- Brigadier Security Systems: Headquartered in Saskatoon, Canada, Brigadier Security Systems provides comprehensive security solutions to homes, businesses, government offices, schools, and public buildings throughout the province. The company operates under the brands Brigadier Security Systems in Saskatoon and Elite Security in Regina.
- Original Sprout: Based in San Clemente, California, Original Sprout produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a “reef-safe” sunscreen, across the U.S. and internationally.
- Marygold & Co.: Established in 2019 and headquartered in Denver, Colorado, Marygold & Co. explores opportunities in the financial technology sector. Its U.K.-based counterpart, Marygold & Co. (UK) Limited, operates through two investment advisory business units: Marygold & Co. Limited (formerly Tiger Financial and Asset Management) and Step-by-Step Financial Planners, both acquired in recent years.
