Sprott (NYSE:SII) reported higher third-quarter earnings as growth in average assets under management helped offset volatile markets and investor withdrawals from its precious metals products. The company also announced a 25% increase in its regular quarterly dividend.
Net income rose 67% to $22 million from $13.2 million a year earlier, while adjusted EBITDA increased 44% to $46 million from $31.9 million, CFO and Co-COO Kevin Hibbert said on the company’s Nov. 4 earnings call.
Assets under management ended the quarter at $57.3 billion, up 3% from June 30 but down 4% from $59.6 billion a year earlier. Average assets under management, a key driver of the company’s fees, rose 39% year over year to $58.8 billion.
Higher Average Assets Drive Earnings
Hibbert said market value appreciation across most of Sprott’s fund products lifted assets during the third quarter. Over the first nine months of 2026, however, depreciation and net outflows from precious metals products weighed on assets, partly offset by inflows to critical materials products.
CEO Whitney George said the company recorded $200 million in net redemptions during the quarter, largely from its physical trusts. Its critical materials strategies generated $200 million in net sales.
For the first nine months of the year, net income rose to $85.5 million from $38.6 million. Adjusted EBITDA increased 95% to $154.7 million. Hibbert said the year-to-date net income result also benefited from carried interest crystallization in the private strategies segment during the first quarter.
During the question-and-answer session, George attributed accelerating free cash flow partly to operating leverage on fixed costs and a variable compensation structure. Hibbert added that fees based on average assets can support earnings even when assets at a particular point in time have pulled back.
Silver Outflows Contrast With Gold Demand
John Ciampaglia, CEO of Sprott Asset Management, said the Sprott Physical Silver Trust had $421 million in quarterly outflows as silver weakened. The Sprott Physical Gold Trust, by contrast, attracted $380 million in net flows.
Ciampaglia said silver faced pressure after India imposed import restrictions and increased duties in May, removing a significant physical buyer from the market. He said it was unclear when the measures would be relaxed. Despite the trust’s redemptions, Sprott increased its year-to-date share of assets relative to North American competitors, he said.
George noted that Sprott’s trusts differ from ETFs because their redemption feature operates monthly. Some of the silver trust’s third-quarter redemptions reflected a delayed reaction to market dislocations in the spring, he said.
In managed equities, George said assets rose modestly during the quarter, but the segment recorded net redemptions as flows into actively managed ETFs slowed and long-term investors took profits from the flagship mutual fund. Private strategies assets were flat at $2 billion at quarter-end.
Critical Materials and Capital Allocation
Ciampaglia said Sprott has more than $10 billion under management in uranium, a market to which it had no exposure five and a half years ago. He described a structural supply deficit in uranium and said new projects were several years away from production. He also pointed to supply disruptions at copper mines and investor interest in rare earth products excluding China.
Asked about potential ETF launches, George said any new products would remain within the critical materials suite, but added that nothing was imminent. He said the company was exploring modest distribution partnerships in Asia and making progress in Europe through its partnership with HANetf.
Hibbert said Sprott ended September with more than $200 million in cash and equivalents and no debt. The dividend increase marked its third consecutive year of double-digit dividend growth. Year-to-date share buybacks approached 1% of outstanding shares, he said.
George said Sprott was marketing its fourth lending fund and planned to make a co-investment. He also said the company had repurchased more stock after quarter-end and would continue to be opportunistic amid market volatility.
On technology, George and Hibbert said the current emphasis was on productivity rather than immediate cost savings. Sprott is using technology to improve processes and execution speed, while taking a cautious approach to artificial intelligence, Hibbert said.
About Sprott (NYSE:SII)
Sprott Inc is an alternative asset manager focused on precious metals and other real assets. The company provides investment solutions designed to give investors exposure to gold, silver, uranium, energy transition materials, and natural resources.
Its offerings include exchange-traded funds, closed-end funds, physical bullion trusts, managed accounts, and private-market strategies. Sprott’s products may invest directly in physical commodities, resource companies, or assets connected to the natural resources and real asset sectors.
Founded in 1981, Sprott serves institutional and individual investors across North America and international markets.
