Q2 2026 Sprott Inc Earnings Call Transcript
Key Points
- Adjusted EBITDA doubled in Q2 2026 to $50.8 million, up from $25.5 million in the same period last year, reflecting strong operational performance.
- Average AUM surged 70% year-over-year to $63.9 billion in Q2 2026, driven by net inflows and market appreciation across most fund products.
- Critical materials ETFs, including uranium and rare earths, delivered positive net sales despite the challenging precious metals environment, showing diversification strength.
- The new Sprott Rare Earths ETF Ex-China (REXC) reached $50 million in assets in just 32 trading days, demonstrating rapid adoption and product innovation success.
- Adjusted EBITDA margins improved to 71% from 53%, highlighting significant operating leverage and a debt-free balance sheet with strong free cash flow generation.
- AUM decreased 15% quarter-over-quarter to $55.6 billion, driven by a sharp correction in precious metals prices and net redemptions.
- Net redemptions of $0.4 billion were recorded in Q2 2026, primarily from precious metals physical trusts, reflecting investor profit-taking.
- Sprott gold and silver prices fell sharply during the quarter, with gold down 14.1% and silver down 22%, impacting overall performance.
- Managed equities AUM contracted by approximately $0.7 billion due to lower precious metal prices weighing on mining equities.
- The precious metals physical trusts experienced higher relative outflows, partly due to legacy issues like wider discounts, making them more vulnerable to redemptions.
Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Sprott Inc.'s 2026 second quarter results conference call. (Operator Instructions) As a reminder, this conference is being recorded today, August 5, 2026.
On behalf of the speakers that follow, listeners are cautioned that today's presentation and the responses to questions may contain forward-looking information and forward-looking statements within the meaning of the applicable Canadian and US securities laws. Forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are implied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. For additional information about factors that may cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements, please consult the MD&A for the quarter and Sprott's other filings with the Canadian and US securities regulators.
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