Sprott Announces First Quarter 2026 Results

TORONTO, May 06, 2026 (GLOBE NEWSWIRE) -- Sprott Inc. (NYSE/TSX: SII) (“Sprott” or the “Company”) today announced its financial results for the three months ended March 31, 2026. Management commentary "Sprott’s Assets Under Management (“AUM”) were $65.1 billion as at March 31, 2026, up 9% from $59.6 billion as at December 31, 2025," said Whitney George, Chief Executive Officer of Sprott. "Gold and silver prices were volatile during the first quarter of 2026, selling off sharply after reaching new highs in January. While near-term volatility remains elevated, the structural foundations of the precious metals market remain intact. Our critical materials strategies performed well during the period, accounting for 96% of our net sales across 13 different funds." "We continued to expand our ETF offerings, subsequent to quarter-end, with the launch of the Sprott Rare Earths Ex-China ETF ("REXC") on April 15, 2026," added Mr. George. "REXC has performed very well since it launched in April. The strength of the Sprott brand is evident as investor adoption of our ETFs is increasing and we achieve key AUM and liquidity milestones more quickly with each subsequent product launch." Key AUM highlights1 AUM was $65.1 billion as at March 31, 2026, up 9% from $59.6 billion as at December 31, 2025. On a three months ended basis, we benefited from market value appreciation across a majority of our fund products and positive net inflows to our exchange listed products. Key revenue highlights Management fees were $81.5 million for the quarter, up $41.5 million from $40 million for the quarter ended March 31, 2025. Carried interest and performance fees were $52 million in the quarter, up $52 million from $nil for the quarter ended March 31, 2025. Net fees were $93.8 million for the quarter, up $57.8 million from $35.9 million for the quarter ended March 31, 2025. Our revenue performance in the quarter was positively impacted by higher average AUM on market value appreciation and inflows to our physical trusts and ETFs, as well as higher average AUM in our managed equities products. Additionally, we benefited from carried interest crystallization in our private strategies segment and performance fee crystallization in our managed equities segment. Commission revenues were $5.8 million for the quarter, up $5.5 million from $0.3 million for the quarter ended March 31, 2025. Net commissions were $3 million for the quarter, up $2.8 million from $0.2 million for the quarter ended March 31, 2025. Commission revenue increased in the quarter due to higher ATM activity predominantly within our physical uranium trust, and to a lesser degree, in our physical copper trust. Finance income was $2.5 million for the quarter, up $1.1 million or 77% from $1.4 million for the quarter ended March 31, 2025. The increase in the quarter was due to higher income generated in co-investments made in our private strategies segment and increased interest income on higher cash balances. Key expense highlights Net compensation expense was $23.7 million for the quarter, up $6.3 million or 36% from $17.5 million for the quarter ended March 31, 2025. The increase in the quarter was primarily due to higher incentive compensation on increased net fee generation. Our net compensation ratio was 29% in the quarter (March 31, 2025 - 47%) Stock-based compensation expense was $34.7 million for the quarter, up $28.5 million from $6.3 million for the quarter ended March 31, 2025. The increase in the quarter was due to the Company's stock price appreciating 46% in the quarter, compared to 6% in the first quarter of last year. The Company issued 276,943 RSUs this year, down 72% from 976,550 RSUs in 2025. SG&A expense was $5.9 million for the quarter, up $1.7 million or 42% from $4.1 million for the quarter ended March 31, 2025. The increase in the quarter 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 $29.2 million ($1.13 per share), up $17.3 million from $12 million ($0.46 per share) for the quarter ended March 31, 2025. Our net income performance was primarily due to higher average AUM in our exchange listed products and managed equities segments and carried interest crystallization in our private strategies segment. These increases were partially offset by higher stock-based compensation expense as a result of the Company's stock price appreciating 46% in the quarter, compared to 6% in the first quarter of last year. Adjusted EBITDA was $57.9 million ($2.25 per share) for the quarter, up $36 million from $21.9 million ($0.85 per share) for the quarter ended March 31, 2025. Adjusted EBITDA in the quarter benefited from higher average AUM on market value appreciation and inflows to our physical trusts and ETFs, as well as higher average AUM in our managed equities products. Subsequent events Subsequent to quarter-end, as at May 1, 2026, AUM was $65.5 billion, up 1% from $65.1 billion as at March 31, 2026. Our performance subsequent to quarter-end was the result of $0.3 billion of market value appreciation and $0.2 billion in net inflows, primarily in our exchange listed products. On May 5, 2026, the Sprott Board of Directors announced a quarterly dividend of $0.40 per share. Supplemental financial information Please refer to the March 31, 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 March 31, 2026 and the Company's financial performance for the three months ended March 31, 2026. Schedule 1 - AUM continuity 3 months results                     (In millions $)   AUM Dec. 31, 2025 Net inflows (1)   Market value changes   Other net inflows(1) AUM Mar. 31, 2026   Net management fee rate(2) Exchange listed products                     - Precious metals physical trusts and ETFs                     - Physical Gold Trust   15,976 (10 ) 1,309   - 17,275   0.35% - Physical Silver Trust   15,109 587   649   - 16,345   0.45% - Physical Gold and Silver Trust   9,065 (334 ) 631   - 9,362   0.40% - Precious Metals ETFs   1,654 118   52   - 1,824   0.45% - Physical Platinum & Palladium Trust   773 —   (51 ) - 722   0.50%     42,577 361   2,590   - 45,528   0.40% - Critical materials physical trusts and ETFs                     - Physical Uranium Trust   6,158 562   124   - 6,844   0.31% - Critical Materials ETFs   2,950 1,018   216   - 4,184   0.57% - Physical Copper Trust   131 57   (8 ) - 180   0.33%     9,239 1,637   332   - 11,208   0.41%                       Total exchange listed products   51,816 1,998   2,922   - 56,736   0.40%                       Managed equities(3)   5,656 (106 ) 782   - 6,332   0.80%                       Private strategies   2,134 (178 ) 47   - 2,003   0.85%                       Total AUM(4)   59,606 1,714   3,751   - 65,071   0.45%                       (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 primarily precious metal strategies (49%), high net worth managed accounts (46%) and U.S. value strategies (5%).     (4) No performance fees are earned on exchange listed products. Certain managed equities and private strategies products earn either performance fees based on returns above relevant benchmarks or earn carried interest calculated as a predetermined net profit over a preferred return.           Schedule 2 - Summary financial information (In thousands $) Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Management fees 81,538   63,818   50,710   44,446   39,989   41,441   38,968   38,325   Fund expenses (3,452 ) (3,304 ) (2,778 ) (2,699 ) (2,464 ) (2,708 ) (2,385 ) (2,657 ) Direct payouts (2,987 ) (2,247 ) (1,871 ) (1,709 ) (1,602 ) (1,561 ) (1,483 ) (1,408 ) Carried interest and performance fees 52,033   38,104   1,757   14,807   -   2,511   4,110   698   Carried interest and performance fee payouts - internal (31,121 ) (15,465 ) (690 ) (1,298 ) -   (830 ) -   (251 ) Carried interest and performance fee payouts - external (2,247 ) -   -   -   -   -   -   -   Net fees 93,764   80,906   47,128   53,547   35,923   38,853   39,210   34,707   Commissions 5,822   2,655   3,816   1,725   286   819   498   3,332   Commission expense - internal (71 ) (275 ) (329 ) (180 ) (52 ) (146 ) (147 ) (380 ) Commission expense - external (2,791 ) (1,143 ) (1,801 ) (779 ) (47 ) (290 ) (103 ) (1,443 ) Net commissions 2,960   1,237   1,686   766   187   383   248   1,509   Finance income 2,481   2,464   1,583   1,213   1,402   1,441   1,574   4,084   Co-investment income 205   198   234   280   151   296   418   416   Less: Carried interest and performance fees (net of payouts) (18,665 ) (22,639 ) (1,067 ) (13,509 ) -   (1,681 ) (4,110 ) (447 ) Total net revenues(1) 80,745   62,166   49,564   42,297   37,663   39,292   37,340   40,269   Add: Carried interest and performance fees 52,033   38,104   1,757   14,807   -   2,511   4,110   698   Gain (loss) on investments 873   4,195   7,012   2,703   1,534   (3,889 ) 937   1,133   Fund expenses 3,452   3,304   2,778   2,699   2,464   2,708   2,385   2,657   Direct payouts 2,987   2,247   1,871   1,709   1,602   1,561   1,483   1,408   Commission expense - internal/external 2,862   1,418   2,130   959   99   436   250   1,823   Total revenues 142,952   111,434   65,112   65,174   43,362   42,619   46,505   47,988   Compensation 86,071   61,329   38,550   33,825   19,597   19,672   18,547   19,225   Direct payouts (2,987 ) (2,247 ) (1,871 ) (1,709 ) (1,602 ) (1,561 ) (1,483 ) (1,408 ) Carried interest and performance fee payouts - internal (31,121 ) (15,465 ) (690 ) (1,298 ) -   (830 ) -   (251 ) Commission expense - internal (71 ) (275 ) (329 ) (180 ) (52 ) (146 ) (147 ) (380 ) Severance, new hire accruals and other (169 ) (125 ) (111 ) (32 ) (52 ) (166 ) (58 ) -   Impact of market value fluctuation and graded vesting amortization on cash-settled equity plans(2) (27,988 ) (22,351 ) (16,598 ) (12,758 ) (412 ) 71   (114 ) (252 ) Net compensation 23,735   20,866   18,951   17,848   17,479   17,040   16,745   16,934   Net compensation ratio 29 % 34 % 39 % 43 % 47 % 44 % 46 % 44 % Direct payouts 2,987   2,247   1,871   1,709   1,602   1,561   1,483   1,408   Carried interest and performance fee payouts - internal 31,121   15,465   690   1,298   -   830   -   251   Commission expense - internal 71   275   329   180   52   146   147   380   Severance, new hire accruals and other 169   125   111   32   52   166   58   -   Impact of market value fluctuation and graded vesting amortization on cash-settled equity plans(2) 27,988   22,351   16,598   12,758   412   (71 ) 114   252   Fund expenses(3) 3,452   3,304   2,778   2,699   2,464   2,708   2,385   2,657   Carried interest and performance fee payouts - external(3) 2,247   -   -   -   -   -   -   -   Commission expense - external(3) 2,791   1,143   1,801   779   47   290   103   1,443   Selling, general, and administrative ("SG&A") 5,862   5,053   4,473   4,825   4,127   4,949   4,612   5,040   Interest expense 301   395   261   286   280   613   933   715   Depreciation and amortization 689   652   647   637   541   600   502   568   Foreign exchange (gain) loss (401 ) 1,080   (666 ) 3,263   554   (2,706 ) 1,028   122   Other (income) and expenses -   -   -   -   -   -   -   (580 ) Total expenses 101,012   72,956   47,844   46,314   27,610   26,126   28,110   29,190                     Net income 29,218   28,728   13,159   13,501   11,957   11,680   12,697   13,360   Net income per share 1.13   1.11   0.51   0.52   0.46   0.46   0.50   0.53   Adjusted EBITDA 57,890   42,130   31,916   25,453   21,901   22,362   20,675   22,375   Adjusted EBITDA per share 2.25   1.63   1.24   0.99   0.85   0.88   0.81   0.88   Total assets 504,271   525,779   466,169   439,429   386,131   388,798   412,477   406,265   Total liabilities 124,225   158,534   121,441   93,955   59,986   65,150   82,198   90,442                     Total AUM 65,071,077   59,605,519   49,088,162   40,040,822   35,076,761   31,535,062   33,439,221   31,053,136   Average AUM 69,316,718   53,216,229   42,346,242   37,580,867   33,265,327   33,401,157   31,788,412   31,378,343                     (1) Prior period net revenues include the following revenues from non-reportable segments: Q4 2024 - $406; Q3 2024 - $497; and Q2 2024 - $650 and fund expense recoveries: Q4 2025- $469; Q3 2025 - $386; Q2 2025 - $327; Q1 2025 - $279; Q4 2024 - $280; Q3 2024 - $275; and Q2 2024 - $260. (2) The increase in the quarter 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 market value fluctuations that were driven by NYSE:SII being up 46% in the quarter. (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 (In thousands $) Mar. 31, 2026 Mar. 31, 2025 Net income for the period 29,218   11,957   Net income margin(1) 20 % 28 % Adjustments:     Interest expense 301   280   Provision for income taxes 12,722   3,795   Depreciation and amortization 689   541   EBITDA 42,930   16,573   Adjustments:     (Gain) loss on investments(2) (873 ) (1,534 ) Stock-based compensation(3) 34,730   6,256   Foreign exchange (gain) loss (401 ) 554   Severance, new hire accruals and other 169   52   Carried interest and performance fees (52,033 ) -   Carried interest and performance fee payouts - internal 31,121   -   Carried interest and performance fee payouts - external 2,247   -   Adjusted EBITDA 57,890   21,901   Adjusted EBITDA margin 72 % 59 %           (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 increase in the quarter 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 market value fluctuations that were driven by NYSE:SII being up 46% in the quarter, compared to 6% in the first quarter of last year.   Conference Call and Webcast A webcast will be held today, May 6, 2026 at 10:00 am ET to discuss the Company's financial results. Webcast Details: Date: Time:  Webcast:  May 6, 2026 10:00am ET 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 market value fluctuations 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 March 31, 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 March 31, 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 [email protected]