Sprott Announces Second Quarter 2025 Results

Executive Summary

• Sprott Inc. reported financial results for the three and six months ended June 30, 2025, with Assets Under Management (AUM) reaching an all-time high of $40 billion.
• Net income for the quarter was $13.5 million ($0.52 per share), essentially flat year-over-year, primarily due to increased stock-based compensation expenses from a new cash-settled plan, which offset gains from market appreciation and inflows.
• Adjusted EBITDA increased 14% to $25.5 million ($0.99 per share) for the quarter, driven by higher average AUM and crystallization of carried interest and performance fees.

Key Details

• Assets Under Management (AUM):
  • Ended Q2 2025 at $40.0 billion, up 14% from $35.1 billion (Q1 2025) and 27% from $31.5 billion (Q4 2024).
  • Driven by positive market value appreciation across product suites (precious metals, uranium, equities) and net inflows to physical trusts.
  • Subsequent AUM as of August 1, 2025, was $40.1 billion.
• Financial Performance (Q2 2025 vs Q2 2024):
  • Net Income: $13.5 million ($0.52/share) vs. $13.4 million ($0.53/share).
  • Adjusted EBITDA: $25.5 million ($0.99/share) vs. $22.4 million ($0.88/share), a 14% increase.
  • Net Fees: $53.2 million, up 54% from $34.4 million in Q2 2024.
  • Management Fees: $44.4 million, up 16% from $38.3 million.
  • Carried Interest & Performance Fees: $14.8 million, up significantly from $0.7 million in Q2 2024 (due to crystallization from wind-down of legacy LP and active mining equities fund).
  • Net Commissions: $0.8 million, down 49% from $1.5 million (due to lower copper trust offering and uranium ATM activity compared to prior year).
  • Finance Income: $1.2 million, down 70% from $4.1 million (due to lower syndication activity).
• Expense Highlights:
  • Net Compensation: $17.8 million, up 5% from $16.9 million.
  • Stock-Based Compensation: $18.6 million, up from $4.3 million in Q2 2024. This increase is attributed to the transition to a cash-settled stock plan effective Jan 1, 2025, which requires mark-to-market accounting under IFRS 2, creating volatility linked to the stock's 54% quarterly appreciation.
  • SG&A: $4.8 million, down 4% from $5.0 million.
• Dividend Declaration:
  • The Board of Directors announced a quarterly dividend of $0.30 per share on August 5, 2025.

Notable Quotes

• "Sprott’s Assets Under Management (“AUM”) were $40 billion as at June 30, 2025, up 14% from $35.1 billion as at March 31, 2025 and up 27% from $31.5 billion as at December 31, 2024... We also reported $1.2 billion in net sales during the quarter, concentrated largely in our physical trusts." — Whitney George, CEO
• "Our AUM is currently at an all-time high and investor allocations to our precious metals and critical materials strategies are steadily increasing with $1.6 billion in net sales during the first half of 2025." — Whitney George, CEO