Marygold Companies, Inc. Announces 2025
The Marygold Companies, Inc. , a diversified global holding firm with interests spanning multiple industries, has announced its financial results for the second fiscal quarter of 2025, which concluded on December 31, 2024. This report offers a detailed overview of the Company’s financial performance, operational highlights, and strategic initiatives as it navigates a dynamic global market.
Financial Performance Overview
For the three-month period ending December 31, 2024, TMC reported revenue totaling $8.0 million. This figure reflects a decrease compared to the $8.5 million recorded in the same quarter of the previous fiscal year. The Company posted a net loss of $1.7 million, equivalent to a loss of $0.04 per share. This represents a wider loss compared to the net loss of $1.2 million, or $0.03 per share, reported for the second quarter of fiscal 2024.
When examining the financial performance over the six-month period ending December 31, 2024, TMC generated total revenue of $15.9 million. The net loss for this period was $3.3 million, translating to a loss of $0.08 per share. In comparison, the prior year’s corresponding period reported revenue of $16.7 million and a net loss of $1.7 million, or $0.04 per share. This comparative analysis highlights the challenges faced by TMC in maintaining revenue streams amid fluctuating market conditions.
Factors Influencing Financial Results
The decline in revenue over both the quarterly and half-year periods was primarily attributed to a reduction in average assets under management (“AUM”) at TMC’s largest subsidiary, USCF Investments. AUM decreased from $3.5 billion in the previous year to $3.1 billion in the current reporting period. The level of AUM is a critical factor as it directly influences the management fees earned by USCF Investments. These fluctuations are often tied to global commodity pricing trends, which have been volatile.
Additionally, the strengthening of the U.S. dollar had a slight negative impact on the Company’s revenue. This currency fluctuation adversely affected the currency translation values of TMC’s foreign subsidiaries, leading to reduced revenue figures when consolidated into the Company’s financial statements.
Despite these challenges, the performance of TMC’s core operating subsidiaries remained within expectations. The net loss for the quarter primarily reflects continued investments in the development and roll-out of the Company’s mobile banking fintech application through its Marygold & Co. subsidiaries in the U.S. and the U.K.
Balance Sheet and Financial Position
As of December 31, 2024, TMC reported cash and cash equivalents of $5.7 million, a slight increase from the $5.5 million recorded at the close of the prior fiscal year on June 30, 2024. This growth in cash reserves indicates prudent cash management amidst ongoing investments.
However, total stockholders’ equity decreased to $23.4 million from $26.6 million at the end of the previous fiscal year. This reduction was primarily due to the net loss incurred during the six months ending December 31, 2024.
Management Commentary and Strategic Initiatives
David Neibert, TMC’s Chief Operations Officer, provided insights into the Company’s financial performance. “For the quarter just ended, we had budgeted for continued losses, based in large part on cash expenditures incurred by our Marygold fintech subsidiary,” Neibert stated. “To support future development and the rollout of our fintech app, we secured a $4 million note during the first quarter. Additionally, in anticipation of an equity raise that generated $2.3 million in gross proceeds after the quarter’s end, we finalized a prospectus supplement for our Form S-3 shelf registration. These strategic financial moves incurred expenses during the second quarter, contributing to the net loss.”
Neibert also highlighted the positive performance of TMC’s operating subsidiaries in New Zealand, Canada, and the U.S. “Moving into the second half of our fiscal year, we expect to significantly reduce expenses at Marygold & Co., having successfully completed the proof-of-concept phase for our fintech app,” he added.
Nicholas Gerber, TMC’s Chief Executive Officer, emphasized the long-term strategic investments in the Marygold Project. “We have invested nearly $20 million into what we call the ‘Marygold Project,’ encompassing both Marygold & Co. and Marygold & Co. (UK) Limited. These investments are foundational for TMC’s future growth. We are on the cusp of launching our mobile app in the U.K. and are refining our marketing strategy for the U.S. market,” Gerber said.
Gerber acknowledged the challenges faced by shareholders during this transitional period. “As shareholders, we have endured a difficult phase marked by financial losses while repositioning our corporate resources towards the fintech sector. I am optimistic that we are nearing a turning point where we will begin to see tangible results from these efforts,” he concluded.
Overview of Business Units
TMC operates through a diversified portfolio of subsidiaries, each contributing to the Company’s overall performance:
- USCF Investments – Acquired in 2016 and based in Walnut Creek, California, USCF Investments manages, operates, and advises 15 exchange-traded products (ETPs). These ETPs are structured as limited partnerships or investment trusts and trade on the NYSE Arca. More information is available at USCF Investments.
- Gourmet Foods – Acquired in 2015, Gourmet Foods operates as a commercial-scale bakery in New Zealand. It produces and distributes iconic meat pies and pastries under the Pat’s Pantry and Ponsonby Pies brands. In 2020, Gourmet Foods expanded its operations by acquiring Printstock Products Limited, a specialized food wrapper printing company based in Napier, New Zealand. Details can be found at Gourmet Foods and Printstock Products.
- Brigadier Security Systems – This Canadian subsidiary, acquired in 2016 and headquartered in Saskatoon, provides comprehensive security solutions for residential, commercial, government, and educational institutions across Saskatchewan. It operates under the Brigadier Security Systems brand in Saskatoon and Elite Security in Regina. Learn more at Brigadier Security.
- Original Sprout – Acquired in 2017 and based in San Clemente, California, Original Sprout develops and distributes a full range of vegan, non-toxic hair and skin care products, including reef-safe sunscreen. The company serves markets throughout the U.S. and internationally. Visit Original Sprout for more information.
- Marygold & Co. – Established in 2019 and headquartered in Denver, Colorado, Marygold & Co. focuses on financial technology innovations. Its U.K. counterpart, Marygold & Co. (UK) Limited, was founded in 2021 to manage investment advisory services through its subsidiaries, Marygold & Co Limited (formerly Tiger Financial and Asset Management) and Step-by-Step Financial Planners, acquired in 2022 and 2024 respectively. For more details, visit Marygold & Co. and Marygold & Co. UK.
