Sprott Q2 Earnings Call Highlights

Precious-metals volatility reduced assets under management: Sprott’s AUM fell to C$55.6 billion, down C$9.5 billion quarter over quarter, after gold and silver declined sharply and investors recorded profits. The company reported C$400 million in net redemptions, mainly from physical precious-metals trusts. Earnings increased on higher average AUM: Second-quarter net income rose to C$34.3 million from C$13.5 million, while adjusted EBITDA doubled to C$50.8 million. Critical-materials ETFs attracted net inflows: Investor interest in uranium, copper, rare earths and other energy-security themes helped offset broader ETF AUM declines. Sprott said its newer products are reaching scale faster, while it continues fundraising and expanding its private-strategies business.

Sprott NYSE: SII reported second-quarter results marked by lower assets under management following a sharp pullback in precious-metals prices, while higher average assets over the past year supported growth in earnings and adjusted EBITDA. Chief Executive Officer Whitney George described the period as a challenging quarter for precious metals, citing volatility across commodity, currency and interest-rate markets. Spot gold declined 14.1% during the quarter and silver fell 22%, he said. George attributed the correction primarily to cyclical factors, adding that the company believes longer-term supports for gold—including government debt, fiscal deficits, monetary debasement and demand for reserve assets outside traditional sovereign debt markets—remain in place.

Assets Under Management Decline as Precious Metals Correct Total assets under management ended the quarter at C$55.6 billion, down C$9.5 billion from the prior quarter and 15% below C$65.1 billion as of March 31. AUM was also down 7% from C$59.6 billion at the end of 2025. The company reported C$400 million in net redemptions during the quarter, primarily from precious-metals physical trusts. John Ciampaglia, CEO of Sprott Asset Management, said the physical-trust business experienced a C$8.2 billion, or 16%, AUM decline as investors took profits in precious metals after eight consecutive quarters of inflows. Despite the quarterly decline, Ciampaglia said AUM in physical trusts remained more than 40% higher than a year earlier. Average AUM for the second quarter was C$63.9 billion, up 70% from C$37.6 billion in the year-earlier period. Year-to-date average AUM was C$66.6 billion, an 88% increase from the comparable period in 2025. Managed-equities AUM declined by about C$700 million during the quarter as lower precious-metals prices weighed on mining equities. George said the segment recorded modest net redemptions, although the company saw positive flows in its U.S. business as it completed the conversion of legacy brokerage client accounts into AUM.

Earnings and EBITDA Rise on Higher Average AUM Second-quarter net income was C$34.3 million, compared with C$13.5 million a year earlier. For the first six months of 2026, net income totaled C$63.5 million, up from C$25.5 million in the prior-year period. Adjusted EBITDA was C$50.8 million in the quarter, doubling from C$25.5 million a year earlier. First-half adjusted EBITDA reached C$108.7 million, compared with C$47.4 million in the first half of 2025. Chief Financial Officer and Co-COO Kevin Hibbert said the increases were driven primarily by higher average AUM in the company’s exchange-listed products and managed-equity businesses. The first-half results also benefited from carried-interest crystallization in the private-strategies segment during th...