The Marygold Companies Announce 2025 Q2 Financial Results
The Marygold Companies Report Financial Results for Q2 2025
In the recent communications from The Marygold Companies, Inc. (NYSE American: MGLD), the company shared its financial results for the second fiscal quarter of 2025, which concluded on December 31, 2024.
Revenue Analysis
The company's revenue for the three-month period reached $8.0 million, showing a decrease from $8.5 million in the same quarter last year. Correspondingly, TMC reported a net loss of $1.7 million, equivalent to a loss of $0.04 per share, contrasting with the net loss of $1.2 million or $0.03 per share during the same quarter of 2024. For the six-month period ending December 31, 2024, total revenue was $15.9 million, alongside a net loss of $3.3 million, which translates to a loss of $0.08 per share. In the previous year, revenue for the comparable period stood at $16.7 million with a net loss of $1.7 million.
Driver Behind Revenue Changes
The ongoing revenue decline has been attributed primarily to a noticeable reduction in the average assets under management (AUM) at TMC’s main subsidiary, USCF Investments, which experienced a drop from $3.5 billion to $3.1 billion compared to the previous year. A decrease in AUM directly affects management fees, which generally fluctuate based on global commodity pricing trends. In addition, a strengthening U.S. dollar negatively impacted the translation values in the company’s international subsidiaries.
Cost Management Efforts
Despite the recorded net loss, the operational performance of TMC’s core subsidiaries met the company's expectations. According to David Neibert, Chief Operations Officer of TMC, the net loss mainly reflects the company’s expenses related to the ongoing development and rollout of its mobile banking fintech app via its Marygold & Co. subsidiaries in both the U.S. and the U.K.
Financial Position Highlights
As of December 31, 2024, TMC maintained cash and cash equivalents amounting to $5.7 million, slightly up from $5.5 million at the fiscal year-end of June 30, 2024. However, total stockholders’ equity witnessed a decline, recording $23.4 million compared to $26.6 million at the end of the prior fiscal year, primarily due to the net losses incurred during the six months ending December 31, 2024.
Future Outlook
Looking ahead, Neibert mentioned that the quarter's funds were largely allocated to their Marygold fintech subsidiary, and to facilitate ongoing developmental efforts, TMC secured a $4 million note in the first quarter. Additionally, the company anticipates generating approximately $2.3 million in gross proceeds from an equity raise following this quarter. To effectively manage future expenses, there are plans to significantly reduce costs in the Marygold & Co. subsidiary now that the proof-of-concept phase is complete.
Core Business Units
The Marygold Companies operates several subsidiaries with diverse business focuses. One of the key players, USCF Investments, serves as the investment manager and adviser to various exchange-traded products. Other subsidiaries include Gourmet Foods which specializes in producing iconic meat pies in New Zealand, Brigadier Security Systems offering security solutions in Canada, and Marygold & Co., focusing on financial technologies.
TMC's Investment in Future Growth
CEO Nicholas Gerber disclosed that the company has invested nearly $20 million in what they term the ‘Marygold Project’, which comprises Marygold & Co. and its U.K. counterpart. These expenditures are viewed as crucial investments in the long-term future of the company. TMC is poised for the initial app rollout in the U.K. shortly while planning its marketing strategy in the U.S.
Shareholder Perspective
Gerber acknowledges the challenging times shareholders have faced during the transition focused on fintech development but expresses optimism about soon witnessing tangible outcomes from these transformative efforts.
About The Marygold Companies, Inc.
Founded in 1996, The Marygold Companies underwent a rebranding in 2015 to emerge as a global holding enterprise. The company oversees subsidiaries dedicated to fund management, financial services, food production, and more under various brand names. Their operational reach spans across the U.S., New Zealand, U.K., and Canada.
Frequently Asked Questions
What are the recent financial results reported by The Marygold Companies?
The company reported revenue of $8.0 million for the second fiscal quarter of 2025, down from $8.5 million in the prior year.
Why did The Marygold Companies experience a net loss?
The net loss of $1.7 million was largely attributed to reduced assets under management at its subsidiary and ongoing expenses related to their fintech app development.
What strategic plans does The Marygold Companies have for the future?
Future plans include reducing costs in Marygold Co. now that the proof-of-concept phase is complete and securing additional funding through notes and equity raises.
How does The Marygold Companies view its investments in technology?
TMC considers its investments in fintech as crucial for its long-term sustainability, preparing for a launch in both the U.S. and U.K. markets.
What diverse operations does The Marygold Companies manage?
The company encompasses fund management, food production, security solutions, and beauty products, among other sectors.
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