Sprott Announces Second Quarter 2026 Results
Rhea-AI Summary
Sprott (NYSE/TSX: SII) reported second quarter 2026 results with AUM of $55.6 billion at June 30, 2026, down 15% from March 31, 2026 and 7% from year-end 2025, mainly from precious metals market depreciation and net outflows, partly offset by inflows to critical materials products.
Average quarterly AUM rose 70% year over year to $63.9 billion. Management fees climbed 72% to $76.4 million, while net fees increased 29% to $69.3 million. Net income was $34.3 million ($1.33 per share), up from $13.5 million ($0.52) a year earlier, and Adjusted EBITDA rose to $50.8 million ($1.97 per share) from $25.5 million ($0.99). Net compensation was $22.7 million with a 32% compensation ratio, and SG&A was $5.1 million. According to Sprott, subsequent AUM was $55.3 billion on July 31, 2026, and the board declared a $0.40 per share quarterly dividend on August 4, 2026.
Positive
- Average AUM up 70% YoY to $63.9 billion in Q2 2026
- Management fees up 72% YoY to $76.4 million in Q2 2026
- Net fees up 29% YoY to $69.3 million in Q2 2026
- Net income up to $34.3 million ($1.33 per share) from $13.5 million
- Adjusted EBITDA nearly doubled to $50.8 million ($1.97 per share) from $25.5 million
- Net compensation ratio improved to 32% from 43% in Q2 2025
- Quarterly dividend of $0.40 per share declared on August 4, 2026
Negative
- Period-end AUM down 15% QoQ to $55.6 billion
- Precious metals products saw net outflows and market value depreciation in Q2 2026
- Carried interest and performance fees fell to $0 in Q2 from $14.8 million
- Company stock price declined 21% over the last three months, reducing Q2 stock-based compensation
- SG&A expense up 22% YTD to $11 million, driven by marketing and professional services
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 earnings report | Positive | +20.1% | Higher AUM, net fees, adjusted EBITDA, subsequent AUM, and quarterly dividend |
| Nov 05 | Q3 earnings report | Positive | +2.5% | Higher AUM, management fees, net income, adjusted EBITDA, and quarterly dividend |
| Aug 06 | Q2 earnings report | Positive | -1.3% | Higher AUM, net sales, management fees, performance fees, and net income |
| May 07 | Q1 earnings report | Positive | +0.9% | Higher AUM, management fees, net income, adjusted EBITDA, and post-quarter AUM |
| Nov 06 | Q3 earnings report | Positive | -5.1% | Record AUM, higher net income, management fees, net sales, and quarterly dividend |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history showed three aligned positive reactions and two divergences, including a -5.08% reaction to Q3 2024 results.
Key Terms
aum financial
carried interest financial
adjusted ebitda financial
atm activity financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
TORONTO, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Sprott Inc. (NYSE/TSX: SII) (“Sprott” or the “Company”) today announced its financial results for the three and six months ended June 30, 2026.
Management commentary
“Sprott’s Assets Under Management (“AUM”) were
“Our critical materials strategies performed better and delivered positive net sales during the period,” continued Mr. George. “We remain constructive on the sector as the growing emphasis on energy security, grid reliability and rising electricity demand continues to reinforce the long-term investment case for critical materials, while supply constraints in many key materials provide additional support for prices and related equities.”
“Despite weaker metals prices, our average AUM was
Key AUM highlights1
- AUM was
$55.6 billion as at June 30, 2026, down15% from$65.1 billion as at March 31, 2026 and down7% from$59.6 billion as at December 31, 2025. On a three and six months ended basis, our AUM was negatively impacted by market value depreciation and net outflows from our precious metals products, partially offset by positive net inflows to our critical materials products. Average AUM was$63.9 billion for the quarter, up$26.3 billion or70% from$37.6 billion for the quarter ended June 30, 2025, and$66.6 billion on a year-to-date basis, up$31.2 billion or88% from$35.4 billion for the six months ended June 30, 2025. On a three and six months ended basis, our average AUM was positively impacted by a combination of net inflows and market value appreciation across a majority of our fund products since the second quarter of last year, which more than offset the impact of the June pullback in precious metals valuations.
Key revenue highlights
- Management fees were
$76.4 million for the quarter, up$31.9 million , or72% from$44.4 million for the quarter ended June 30, 2025, and$157.9 million on a year-to-date basis, up$73.5 million , or87% from$84.4 million for the six months ended June 30, 2025. Carried interest and performance fees were $nil for the quarter, down$14.8 million from$14.8 million for the quarter ended June 30, 2025, and$52 million on a year-to-date basis, up$37.2 million from$14.8 million for the six months ended June 30, 2025. Net fees were$69.3 million for the quarter, up$15.7 million , or29% from$53.5 million for the quarter ended June 30, 2025, and$163 million on a year-to-date basis, up$73.6 million , or82% from$89.5 million for the six months ended June 30, 2025. Our revenue performance in the quarter and on a six months ended basis was primarily due to an increase in average AUM attributable to a combination of net inflows and market value appreciation across a majority of our fund products since the second quarter of last year, which more than offset the impact of the June pullback in precious metals valuations. Additionally, we benefited from carried interest crystallization in our private strategies segment in the first quarter.
- Commission revenues were
$1.5 million for the quarter, down$0.3 million from$1.7 million for the quarter ended June 30, 2025 and$7.3 million on a year-to-date basis, up$5.3 million from$2 million for the six months ended June 30, 2025. Net commissions were$0.7 million for the quarter, down slightly from$0.8 million for the quarter ended June 30, 2025 and$3.7 million on a year-to-date basis, up$2.7 million from$1 million for the six months ended June 30, 2025. The decrease in the quarter was due to lower private placement activity in our U.S. broker-dealer and the increase on a six months ended basis was due to higher ATM activity predominantly within our physical uranium trust, and to a lesser degree, in our physical copper trust.
- Finance income was
$1.6 million for the quarter, up$0.4 million or35% from$1.2 million for the quarter ended June 30, 2025 and$4.1 million on a year-to-date basis, up$1.5 million or57% from$2.6 million for the six months ended June 30, 2025. The increase in the quarter and on a six months ended basis was primarily due to increased interest income on higher cash balances.
Key expense highlights
- Net compensation expense was
$22.7 million for the quarter, up$4.8 million or27% from$17.8 million for the quarter ended June 30, 2025 and$46.4 million on a year-to-date basis, up$11.1 million or31% from$35.3 million for the six months ended June 30, 2025. The increase in the quarter and on a six months ended basis was primarily due to higher incentive compensation on increased net fee generation. Our net compensation ratio was32% in the quarter (June 30, 2025 -43% ) and30% on a year-to-date basis (June 30, 2025 -45% ).
Stock-based compensation expense was$5 million for the quarter, down$13.6 million or73% from$18.6 million for the quarter ended June 30, 2025 and$39.7 million on a year-to-date basis, up$14.9 million or60% from$24.8 million for the six months ended June 30, 2025. The decrease in the quarter was due to the Company's stock price depreciating21% over the last three months, while the increase on a six months ended basis was due to our stock price appreciating15% over the six month period. The Company issued 279,851 restricted stock units (“RSUs”) this year, down71% from 976,550 RSUs in 2025.
- SG&A expense was
$5.1 million for the quarter, up$0.3 million or6% from$4.8 million for the quarter ended June 30, 2025 and$11 million on a year-to-date basis, up$2 million or22% from$9 million for the six months ended June 30, 2025. The increase in the quarter and on a six months ended basis was due to higher marketing and professional services costs.
1 See “non-IFRS financial measures” section in this press release and schedule 2 and 3 of “Supplemental financial information”
Earnings summary
- Net income for the quarter was
$34.3 million ($1.33 per share), up$20.8 million from$13.5 million ($0.52 per share) for the quarter ended June 30, 2025 and$63.5 million ($2.46 per share) on a year-to-date basis, up$38 million from$25.5 million ($0.99 per share) for the six months ended June 30, 2025. Our net income performance was primarily due to higher average AUM in our exchange listed products and managed equities segments, as well as carried interest crystallization in our private strategies segment in the first quarter. On a six months ended basis, these increases were partially offset by higher stock-based compensation expense as a result of the Company's stock price appreciating15% over the six month period.
- Adjusted EBITDA was
$50.8 million ($1.97 per share) for the quarter, up$25.3 million , from$25.5 million ($0.99 per share) for the quarter ended June 30, 2025 and$108.7 million ($4.22 per share) on a year-to-date basis, up$61.3 million from$47.4 million ($1.83 per share) for the six months ended June 30, 2025. Our Adjusted EBITDA doubled in the quarter and on a six months ended basis due to an increase in average AUM, attributable to a combination of net inflows and market value appreciation across a majority of our fund products since the second quarter of last year, which more than offset the impact of the June pullback in precious metals valuations.
Subsequent events
- Subsequent to quarter-end, as at July 31, 2026, AUM was
$55.3 billion , down slightly from$55.6 billion as at June 30, 2026.
- On August 4, 2026, the Sprott Board of Directors announced a quarterly dividend of
$0.40 per share.
Supplemental financial information
Please refer to the June 30, 2026 quarterly financial statements of the Company and the related management discussion and analysis filed earlier this morning for further details into the Company's financial position as at June 30, 2026 and the Company's financial performance for the three and six months ended June 30, 2026.
Schedule 1 - AUM continuity
| 3 months results | |||||||||
| (In millions $) | AUM Mar. 31, 2026 | Net inflows (1) | Market value changes | Other net inflows (1) | AUM Jun. 30, 2026 | Net management fee rate (2) | |||
| Exchange listed products | |||||||||
| - Precious metals physical trusts and ETFs | |||||||||
| - Physical Gold Trust | 17,275 | (76 | ) | (2,450 | ) | — | 14,749 | ||
| - Physical Silver Trust | 16,345 | (96 | ) | (3,607 | ) | — | 12,642 | ||
| - Physical Gold and Silver Trust | 9,362 | (466 | ) | (1,564 | ) | — | 7,332 | ||
| - Precious Metals ETFs | 1,824 | (90 | ) | (261 | ) | — | 1,473 | ||
| - Physical Platinum & Palladium Trust | 722 | (39 | ) | (140 | ) | — | 543 | ||
| 45,528 | (767 | ) | (8,022 | ) | — | 36,739 | |||
| - Critical materials physical trusts and ETFs | |||||||||
| - Physical Uranium Trust | 6,844 | 141 | 59 | — | 7,044 | ||||
| - Critical Materials ETFs | 4,184 | 318 | (542 | ) | — | 3,960 | |||
| - Physical Copper Trust | 180 | 7 | 16 | — | 203 | ||||
| 11,208 | 466 | (467 | ) | — | 11,207 | ||||
| Total exchange listed products | 56,736 | (301 | ) | (8,489 | ) | — | 47,946 | ||
| Managed equities (3) | 6,332 | (69 | ) | (644 | ) | — | 5,619 | ||
| Private strategies | 2,003 | (7 | ) | 1 | — | 1,997 | |||
| Total AUM | 65,071 | (377 | ) | (9,132 | ) | — | 55,562 | ||
| 6 months results | |||||||||
| (In millions $) | AUM Dec. 31, 2025 | Net inflows (1) | Market value changes | Other net inflows (1) | AUM Jun. 30, 2026 | Net management fee rate (2) | |||
| Exchange listed products | |||||||||
| - Precious metals physical trusts and ETFs | |||||||||
| - Physical Gold Trust | 15,976 | (86 | ) | (1,141 | ) | — | 14,749 | ||
| - Physical Silver Trust | 15,109 | 491 | (2,958 | ) | — | 12,642 | |||
| - Physical Gold and Silver Trust | 9,065 | (800 | ) | (933 | ) | — | 7,332 | ||
| - Precious Metals ETFs | 1,654 | 28 | (209 | ) | — | 1,473 | |||
| - Physical Platinum & Palladium Trust | 773 | (39 | ) | (191 | ) | — | 543 | ||
| 42,577 | (406 | ) | (5,432 | ) | — | 36,739 | |||
| - Critical materials physical trusts and ETFs | |||||||||
| - Physical Uranium Trust | 6,158 | 703 | 183 | — | 7,044 | ||||
| - Critical Materials ETFs | 2,950 | 1,336 | (326 | ) | — | 3,960 | |||
| - Physical Copper Trust | 131 | 64 | 8 | — | 203 | ||||
| 9,239 | 2,103 | (135 | ) | — | 11,207 | ||||
| Total exchange listed products | 51,816 | 1,697 | (5,567 | ) | — | 47,946 | |||
| Managed equities (3) | 5,656 | (175 | ) | 138 | — | 5,619 | |||
| Private strategies | 2,134 | (185 | ) | 48 | — | 1,997 | |||
| Total AUM | 59,606 | 1,337 | (5,381 | ) | — | 55,562 | |||
| (1) See “Net inflows” and “Other net inflows” in the key performance indicators and non-IFRS and other financial measures section of the MD&A. | |||||||||
| (2) Net management fee rate represents the weighted average fees for all funds in the category, net of fund expenses. | |||||||||
| (3) Managed equities is made up of funds and high net worth managed accounts invested primarily in precious metals strategies ( | |||||||||
Schedule 2 - Summary financial information
| (In thousands $) | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | |||||||||
| Management fees | 76,388 | 81,538 | 63,818 | 50,710 | 44,446 | 39,989 | 41,441 | 38,968 | |||||||||
| Fund expenses | (4,107 | ) | (3,452 | ) | (3,304 | ) | (2,778 | ) | (2,699 | ) | (2,464 | ) | (2,708 | ) | (2,385 | ) | |
| Direct payouts | (3,007 | ) | (2,987 | ) | (2,247 | ) | (1,871 | ) | (1,709 | ) | (1,602 | ) | (1,561 | ) | (1,483 | ) | |
| Carried interest and performance fees | — | 52,033 | 38,104 | 1,757 | 14,807 | — | 2,511 | 4,110 | |||||||||
| Carried interest and performance fee payouts - internal | — | (31,121 | ) | (15,465 | ) | (690 | ) | (1,298 | ) | — | (830 | ) | — | ||||
| Carried interest and performance fee payouts - external | — | (2,247 | ) | — | — | — | — | — | — | ||||||||
| Net fees | 69,274 | 93,764 | 80,906 | 47,128 | 53,547 | 35,923 | 38,853 | 39,210 | |||||||||
| Commissions | 1,456 | 5,822 | 2,655 | 3,816 | 1,725 | 286 | 819 | 498 | |||||||||
| Commission expense - internal | (65 | ) | (71 | ) | (275 | ) | (329 | ) | (180 | ) | (52 | ) | (146 | ) | (147 | ) | |
| Commission expense - external | (652 | ) | (2,791 | ) | (1,143 | ) | (1,801 | ) | (779 | ) | (47 | ) | (290 | ) | (103 | ) | |
| Net commissions | 739 | 2,960 | 1,237 | 1,686 | 766 | 187 | 383 | 248 | |||||||||
| Finance income | 1,634 | 2,481 | 2,464 | 1,583 | 1,213 | 1,402 | 1,441 | 1,574 | |||||||||
| Co-investment income | 129 | 205 | 198 | 234 | 280 | 151 | 296 | 418 | |||||||||
| Less: Carried interest and performance fees (net of payouts) | — | (18,665 | ) | (22,639 | ) | (1,067 | ) | (13,509 | ) | — | (1,681 | ) | (4,110 | ) | |||
| Total net revenues (1) | 71,776 | 80,745 | 62,166 | 49,564 | 42,297 | 37,663 | 39,292 | 37,340 | |||||||||
| Add: Carried interest and performance fees | — | 52,033 | 38,104 | 1,757 | 14,807 | — | 2,511 | 4,110 | |||||||||
| Gain (loss) on investments | 615 | 873 | 4,195 | 7,012 | 2,703 | 1,534 | (3,889 | ) | 937 | ||||||||
| Fund expenses | 4,107 | 3,452 | 3,304 | 2,778 | 2,699 | 2,464 | 2,708 | 2,385 | |||||||||
| Direct payouts | 3,007 | 2,987 | 2,247 | 1,871 | 1,709 | 1,602 | 1,561 | 1,483 | |||||||||
| Commission expense - internal/external | 717 | 2,862 | 1,418 | 2,130 | 959 | 99 | 436 | 250 | |||||||||
| Total revenues | 80,222 | 142,952 | 111,434 | 65,112 | 65,174 | 43,362 | 42,619 | 46,505 | |||||||||
| Compensation | 24,157 | 86,071 | 61,329 | 38,550 | 33,825 | 19,597 | 19,672 | 18,547 | |||||||||
| Direct payouts | (3,007 | ) | (2,987 | ) | (2,247 | ) | (1,871 | ) | (1,709 | ) | (1,602 | ) | (1,561 | ) | (1,483 | ) | |
| Carried interest and performance fee payouts - internal | — | (31,121 | ) | (15,465 | ) | (690 | ) | (1,298 | ) | — | (830 | ) | — | ||||
| Commission expense - internal | (65 | ) | (71 | ) | (275 | ) | (329 | ) | (180 | ) | (52 | ) | (146 | ) | (147 | ) | |
| Severance, new hire accruals and other | (153 | ) | (169 | ) | (125 | ) | (111 | ) | (32 | ) | (52 | ) | (166 | ) | (58 | ) | |
| Impact of stock price changes and graded vesting amortization on cash-settled equity plans (2) | 1,756 | (27,988 | ) | (22,351 | ) | (16,598 | ) | (12,758 | ) | (412 | ) | 71 | (114 | ) | |||
| Net compensation | 22,688 | 23,735 | 20,866 | 18,951 | 17,848 | 17,479 | 17,040 | 16,745 | |||||||||
| Net compensation ratio | 32 | % | 29 | % | 34 | % | 39 | % | 43 | % | 47 | % | 44 | % | 46 | % | |
| Direct payouts | 3,007 | 2,987 | 2,247 | 1,871 | 1,709 | 1,602 | 1,561 | 1,483 | |||||||||
| Carried interest and performance fee payouts - internal | — | 31,121 | 15,465 | 690 | 1,298 | — | 830 | — | |||||||||
| Commission expense - internal | 65 | 71 | 275 | 329 | 180 | 52 | 146 | 147 | |||||||||
| Severance, new hire accruals and other | 153 | 169 | 125 | 111 | 32 | 52 | 166 | 58 | |||||||||
| Impact of stock price changes and graded vesting amortization on cash-settled equity plans (2) | (1,756 | ) | 27,988 | 22,351 | 16,598 | 12,758 | 412 | (71 | ) | 114 | |||||||
| Fund expenses (3) | 4,107 | 3,452 | 3,304 | 2,778 | 2,699 | 2,464 | 2,708 | 2,385 | |||||||||
| Carried interest and performance fee payouts - external (3) | — | 2,247 | — | — | — | — | — | — | |||||||||
| Commission expense - external(3) | 652 | 2,791 | 1,143 | 1,801 | 779 | 47 | 290 | 103 | |||||||||
| Selling, general, and administrative (“SG&A”) | 5,093 | 5,862 | 5,053 | 4,473 | 4,825 | 4,127 | 4,949 | 4,612 | |||||||||
| Interest expense | 291 | 301 | 395 | 261 | 286 | 280 | 613 | 933 | |||||||||
| Depreciation and amortization | 673 | 689 | 652 | 647 | 637 | 541 | 600 | 502 | |||||||||
| Foreign exchange (gain) loss | (980 | ) | (401 | ) | 1,080 | (666 | ) | 3,263 | 554 | (2,706 | ) | 1,028 | |||||
| Total expenses | 33,993 | 101,012 | 72,956 | 47,844 | 46,314 | 27,610 | 26,126 | 28,110 | |||||||||
| Net income | 34,257 | 29,218 | 28,728 | 13,159 | 13,501 | 11,957 | 11,680 | 12,697 | |||||||||
| Net income per share | 1.33 | 1.13 | 1.11 | 0.51 | 0.52 | 0.46 | 0.46 | 0.50 | |||||||||
| Adjusted EBITDA | 50,765 | 57,890 | 42,130 | 31,916 | 25,453 | 21,901 | 22,362 | 20,675 | |||||||||
| Adjusted EBITDA per share | 1.97 | 2.25 | 1.63 | 1.24 | 0.99 | 0.85 | 0.88 | 0.81 | |||||||||
| Total assets | 515,758 | 504,271 | 525,779 | 466,169 | 439,429 | 386,131 | 388,798 | 412,477 | |||||||||
| Total liabilities | 123,575 | 124,225 | 158,534 | 121,441 | 93,955 | 59,986 | 65,150 | 82,198 | |||||||||
| Total AUM | 55,562,022 | 65,071,077 | 59,605,519 | 49,088,162 | 40,040,822 | 35,076,761 | 31,535,062 | 33,439,221 | |||||||||
| Average AUM | 63,896,900 | 69,316,718 | 53,216,229 | 42,346,242 | 37,580,867 | 33,265,327 | 33,401,157 | 31,788,412 | |||||||||
| (1) | Prior period net revenues include the following revenues from non-reportable segments: Q4 2024 - | ||||||||||||||||
| (2) | The decrease in the quarter and the increase on a year-to-date basis was primarily due to the Company's “cash-settled” stock-based compensation plan which requires mark-to-market accounting under IFRS 2. This led to stock price changes that were driven by NYSE:SII being down | ||||||||||||||||
| (3) | Together, fund expenses, carried interest and performance fee payouts - external and commission expense - external are included in “Fund expenses” on the income statement. | ||||||||||||||||
Schedule 3 - EBITDA reconciliation
| 3 months ended | 6 months ended | ||||||||||||
| (In thousands $) | Jun. 30, 2026 | Jun. 30, 2025 | Jun. 30, 2026 | Jun. 30, 2025 | |||||||||
| Net income for the period | 34,257 | 13,501 | 63,475 | 25,458 | |||||||||
| Net income margin (1) | 43 | % | 21 | % | 28 | % | 23 | % | |||||
| Adjustments: | |||||||||||||
| Interest expense | 291 | 286 | 592 | 566 | |||||||||
| Provision for income taxes | 11,972 | 5,359 | 24,694 | 9,154 | |||||||||
| Depreciation and amortization | 673 | 637 | 1,362 | 1,178 | |||||||||
| EBITDA | 47,193 | 19,783 | 90,123 | 36,356 | |||||||||
| Adjustments: | |||||||||||||
| (Gain) loss on investments (2) | (615 | ) | (2,703 | ) | (1,488 | ) | (4,237 | ) | |||||
| Stock-based compensation (3) | 5,014 | 18,587 | 39,744 | 24,843 | |||||||||
| Foreign exchange (gain) loss | (980 | ) | 3,263 | (1,381 | ) | 3,817 | |||||||
| Severance, new hire accruals and other | 153 | 32 | 322 | 84 | |||||||||
| Carried interest and performance fees | — | (14,807 | ) | (52,033 | ) | (14,807 | ) | ||||||
| Carried interest and performance fee payouts - internal | — | 1,298 | 31,121 | 1,298 | |||||||||
| Carried interest and performance fee payouts - external | — | — | 2,247 | — | |||||||||
| Adjusted EBITDA | 50,765 | 25,453 | 108,655 | 47,354 | |||||||||
| Adjusted EBITDA margin | 71 | % | 61 | % | 71 | % | 60 | % | |||||
| (1) | Calculated as IFRS net income divided by IFRS total revenue. | ||||||||||||
| (2) | This adjustment removes the income effects of gains or losses on short-term investments, co-investments, and private holdings to ensure the reporting objectives of our adjusted EBITDA metric are met. | ||||||||||||
| (3) | The decrease in the quarter and the increase on a year-to-date basis was primarily due to the Company's “cash-settled” stock-based compensation plan which requires mark-to-market accounting under IFRS 2. This led to stock price changes that were driven by NYSE:SII being down | ||||||||||||
Conference Call and Webcast
A webcast will be held today, August 5, 2026 at 10:00 am ET to discuss the Company's financial results.
Webcast Details:
Date: August 5, 2026
Time: 10:00am ET
Webcast: Webcast Registration
This press release includes financial terms (including AUM, net commissions, net fees, expenses, adjusted EBITDA, adjusted EBITDA margin and net compensation) that the Company utilizes to assess the financial performance of its business that are not measures recognized under International Financial Reporting Standards (“IFRS”). These non-IFRS measures should not be considered alternatives to performance measures determined in accordance with IFRS and may not be comparable to similar measures presented by other issuers. Non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Our key performance indicators and non-IFRS and other financial measures are discussed below. For quantitative reconciliations of non-IFRS financial measures to their most directly comparable IFRS financial measures please see schedule 2 and schedule 3 of the “Supplemental financial information” section of this press release.
Net fees
Net fees are calculated as: (1) total management fees net of fund expenses and direct payouts; and (2) carried interest and performance fees, net of their related payouts. Net fees is a key revenue indicator as it represents revenue contributions after directly associated costs in managing our AUM.
Net commissions
Net commissions are calculated as total commissions, net of commission expenses. Net commissions primarily arise from the purchase and sale of critical materials in our exchange listed products segment.
Net revenues
Net revenues are calculated as the total of: (1) net fees, excluding carried interest and performance fees, net of their related payouts; (2) net commissions; (3) finance income; and (4) co-investment income.
Net compensation & net compensation ratio
Net compensation is calculated as total compensation expense before: (1) commission expenses paid to employees; (2) direct payouts to employees; (3) carried interest and performance fee payouts to employees; (4) severance and new hire accruals; and (5) impact of stock price changes and graded vesting amortization on cash-settled equity plans. Net compensation ratio is calculated as net compensation divided by net revenues.
EBITDA, adjusted EBITDA and adjusted EBITDA margin
EBITDA in its most basic form is defined as earnings before interest expense, income taxes, depreciation and amortization. EBITDA (or adjustments thereto) is a measure commonly used in the investment industry by management, investors and investment analysts in understanding and comparing results by factoring out the impact of different financing methods, capital structures, amortization techniques and income tax rates between companies in the same industry. While other companies, investors or investment analysts may not utilize the same method of calculating EBITDA (or adjustments thereto), the Company believes its adjusted EBITDA metric results in a better comparison of the Company's underlying operations against its peers and a better indicator of recurring results from operations as compared to other non-IFRS financial measures. Adjusted EBITDA margin is a key indicator of a company’s profitability on a per dollar of revenue basis, and as such, is commonly used in the financial services sector by analysts, investors and management.
Forward-Looking Statements
Certain statements in this press release contain forward-looking information and forward-looking statements (collectively referred to herein as the “Forward-Looking Statements”) within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the foregoing, this press release contains Forward-Looking Statements pertaining to: (i) our positioning will benefit from a highly compelling environment for precious metals, critical materials and their related equities; and (ii) the declaration, payment and designation of dividends and confidence that our business will support the dividend level without impacting our ability to fund future growth initiatives.
Although Sprott (“the Company”) believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including: (i) the impact of increasing competition in each business in which the Company operates will not be material; (ii) quality management will be available; (iii) the effects of regulation and tax laws of governmental agencies will be consistent with the current environment; (iv) the impact of public health outbreaks; and (v) those assumptions disclosed under the heading “Critical Accounting Estimates and significant judgments” in the Company’s MD&A for the period ended June 30, 2026. Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize, including: (i) difficult market conditions; (ii) poor investment performance; (iii) failure to continue to retain and attract quality staff; (iv) employee errors or misconduct resulting in regulatory sanctions or reputational harm; (v) performance fee fluctuations; (vi) a business segment or another counterparty failing to pay its financial obligation; (vii) failure of the Company to meet its demand for cash or fund obligations as they come due; (viii) changes in the investment management industry; (ix) failure to implement effective information security policies, procedures and capabilities; (x) lack of investment opportunities; (xi) risks related to regulatory compliance; (xii) failure to manage risks appropriately; (xiii) failure to deal appropriately with conflicts of interest; (xiv) competitive pressures; (xv) corporate growth which may be difficult to sustain and may place significant demands on existing administrative, operational and financial resources; (xvi) failure to comply with privacy laws; (xvii) failure to successfully implement succession planning; (xviii) foreign exchange (“FX”) risk relating to the relative value of the U.S. dollar; (xix) litigation risk; (xx) failure to develop effective business resiliency plans; (xxi) failure to obtain or maintain sufficient insurance coverage on favorable economic terms; (xxii) historical financial information being not necessarily indicative of future performance; (xxiii) the market price of common shares of the Company may fluctuate widely and rapidly; (xxiv) risks relating to the Company’s investment products; (xxv) risks relating to the Company's proprietary investments; (xxvi) risks relating to the Company's private strategies business; (xxvii) those risks described under the heading “Risk Factors” in the Company’s annual information form dated February 18, 2026; and (xxviii) those risks described under the headings “Managing Financial Risks” and “Managing Non-Financial Risks” in the Company’s MD&A for the period ended June 30, 2026. In addition, the payment of dividends is not guaranteed and the amount and timing of any dividends payable by the Company will be at the discretion of the Board of Directors of the Company and will be established on the basis of the Company’s earnings, the satisfaction of solvency tests imposed by applicable corporate law for the declaration and payment of dividends, and other relevant factors. The Forward-Looking Statements speak only as of the date hereof, unless otherwise specifically noted, and the Company does not assume any obligation to publicly update any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
About Sprott
Sprott is a global asset manager focused on precious metals and critical materials investments. We are specialists. We believe our in-depth knowledge, experience and relationships separate us from the generalists. Our investment strategies include Exchange Listed Products, Managed Equities and Private Strategies. Sprott has offices in Toronto, New York, Connecticut and California and the Company’s common shares are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol (SII). For more information, please visit www.sprott.com.
Investor contact information:
Glen Williams
Senior Managing Partner
Investor and Institutional Client Relations
(416) 943-4394
gwilliams@sprott.com
