Marygold Companies Reports Q2 2025 Financial Results Amid Strategic Investments in Fintech
The Marygold Companies, a diversified global holding firm, has announced its financial results for the second fiscal quarter of 2025, which ended on December 31, 2024. The Company reported a revenue decline compared to the prior year, reflecting challenges in its largest subsidiary and ongoing investments in its fintech initiatives. Despite these headwinds, TMC remains optimistic about its long-term growth prospects, particularly as it advances the development of its mobile banking app through its Marygold & Co. subsidiaries.
Second Quarter Financial Highlights
For the three months ended December 31, 2024, TMC generated revenue of $8.0 million, down from $8.5 million in the same period last year. The Company recorded a net loss of $1.7 million, equivalent to $0.04 per share, compared to a net loss of $1.2 million, or $0.03 per share, in the second quarter of fiscal 2024. For the six-month period, revenue totaled $15.9 million, with a net loss of $3.3 million ($0.08 per share), versus $16.7 million in revenue and a net loss of $1.7 million ($0.04 per share) in the comparable prior-year period.
The decline in revenue over both periods was primarily driven by a reduction in average assets under management (AUM) at USCF Investments, TMC’s largest subsidiary. AUM decreased to $3.1 billion from $3.5 billion a year ago, directly impacting management fees earned by the subsidiary. Additionally, the strengthening U.S. dollar negatively affected currency translation values for the Company’s foreign subsidiaries. Despite these challenges, the performance of TMC’s core operating subsidiaries remained within expectations, with the net loss largely attributable to expenses related to the development and rollout of its mobile banking fintech app.
Cash Position and Equity Update
As of December 31, 2024, TMC’s cash and cash equivalents stood at $5.7 million, slightly up from $5.5 million at the end of the prior fiscal year on June 30, 2024. Total stockholders’ equity, however, declined to $23.4 million from $26.6 million at fiscal year-end, primarily due to the net loss incurred during the first half of the fiscal year.
Leadership Commentary
David Neibert, TMC’s Chief Operations Officer, explained that the Company had anticipated continued losses in the second quarter, largely due to cash expenditures by its Marygold fintech subsidiary. To address future cash needs for the development and rollout of the fintech app, TMC secured a $4 million note during the first quarter and completed an equity raise of $2.3 million in gross proceeds shortly after the close of the second quarter. These actions contributed to the net loss for the period but were deemed necessary to support the Company’s strategic initiatives.
“We are pleased that our operating subsidiaries in New Zealand, Canada, and the U.S. continue to perform well overall,” Neibert stated. “Moving into the second half of our fiscal year, we expect to significantly reduce expenses in our Marygold & Co. subsidiary, having successfully completed the proof-of-concept phase.”
Nicholas Gerber, TMC’s Chief Executive Officer, emphasized the Company’s commitment to its fintech ambitions, noting that nearly $20 million has been invested in what TMC refers to as the “Marygold Project.” This includes Marygold & Co. and its counterpart, Marygold & Co. (UK) Limited. Gerber views these expenditures as critical investments in TMC’s long-term future, positioning the Company for the initial rollout of its mobile app in the U.K. while strategizing on its marketing direction in the U.S.
“As shareholders, we have endured a painful period of losses as we refocused our corporate resources in the fintech sector,” Gerber acknowledged. “I believe we will turn the corner soon and begin to see tangible results from these efforts.”
Business Unit Overview
TMC’s diverse portfolio of subsidiaries spans multiple industries, each contributing to the Company’s overall strategy and performance:
- USCF Investments
Acquired in 2016 and based in Walnut Creek, California, USCF Investments serves as the manager, operator, or investment adviser to 15 exchange-traded products. These products, structured as limited partnerships or investment trusts, issue shares traded on the NYSE Arca. The subsidiary’s performance is closely tied to global commodity pricing trends, which influence AUM levels and, consequently, management fees. - Gourmet Foods
Established in 2015 and headquartered in New Zealand, Gourmet Foods operates as a commercial-scale bakery producing iconic meat pies and pastries under the Pat’s Pantry and Ponsonby Pies brands. In 2020, the Company acquired Printstock Products Limited, a specialized food wrapper printer based in Napier, New Zealand, whose operations are consolidated with those of Gourmet Foods. - Brigadier Security Systems
Acquired in 2016, Brigadier Security Systems provides comprehensive security solutions across Saskatchewan, Canada. Operating under the Brigadier Security Systems and Elite Security brands, the subsidiary serves homes, businesses, government offices, schools, and other public buildings throughout the province. - Original Sprout
Based in San Clemente, California, Original Sprout produces and distributes a full line of vegan, safe, non-toxic hair and skin care products, including a “reef-safe” sunscreen. Founded in 2017, the brand has gained traction in the U.S. and internationally. - Marygold & Co.
Headquartered in Denver, Colorado, Marygold & Co. was established in 2019 to explore opportunities in the financial technology sector. Its U.K.-based counterpart, Marygold & Co. (UK) Limited, was founded in 2021 and operates through two advisory business units: Marygold & Co. Limited (formerly Tiger Financial and Asset Management) and Step-by-Step Financial Planners. These entities manage clients’ financial wealth across a diverse range of products.
While TMC continues to navigate short-term challenges, the Company remains focused on executing its long-term strategy. The anticipated rollout of its mobile banking app in the U.K. represents a significant milestone for the Marygold Project, with plans to expand its presence in the U.S. market following further refinements. By reducing expenses in its Marygold & Co. subsidiary and leveraging the strengths of its core operating businesses, TMC aims to achieve sustainable growth and deliver value to its shareholders.
As Nicholas Gerber aptly summarized, “We have made substantial investments to position ourselves for success in the fintech space. While the journey has been challenging, I am confident that our efforts will yield meaningful results in the near future.”
With a diversified portfolio of subsidiaries performing well and strategic initiatives gaining momentum, TMC is poised to capitalize on emerging opportunities and drive long-term profitability.
