Company: MGLD
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001493152-25-021259
Chunk: 71

Company: Marygold Companies, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 71
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 (2,069) 
     -75%
  
    Benefit from income taxes 
     153 
     483  
     -68%
  
    Net loss 
    $(356) 
    $(1,586) 
     -78%

Revenue
decreased by $0.9 million or 12% for the quarter ended September 30, 2025 due to a decrease in revenue of $0.7 million from our
security systems segment as a result of the sale of Brigadier to a related party on July 1, 2025 as well as a decrease of
$0.3 million (or 6%) in our U.S. fund management segment. The decrease in U.S. fund management revenue was driven by a decrease in
average Assets Under Management (“AUM”). Average AUM for the quarter ended September 30, 2025 was $2.9 billion compared
to $3.1 billion for the quarter ended September 30, 2024. The decrease in average AUM in the quarter ended September 30, 2025 was
due to commodity price fluctuations, along with geopolitical and economic uncertainty. 

Gross
profit decreased by $0.4 million or 7%, driven by the reduced revenue from the lower average AUM as described above as well the elimination of gross profit from Brigadier which was sold on July 1, 2025.

Operating expenses decreased
by $1.3 million or 17% driven by a reduction of costs associated with our Marygold & Co subsidiary as they paused further development
of the Fintech app in the US as well as a reduction of $0.2 million of operating expenses incurred by Brigadier in the quarter ended September
30, 2024 as a result of the sale of Brigadier on July 1, 2025.

Loss from operations decreased by $0.9 million compared
to the prior year quarter as a net result of: the decrease in financial services loss by $1.2 million from pausing the Marygold Fintech
app in the US; improved profitability of our beauty products segment by $0.3 million; and improved profitability of our food products
segment of $0.1 million; offset by reduced profit of $0.6 million in the fund management segment due to lower average AUM and the elimination
of $0.1 million profit in our security systems segment as a result of the sale of Brigadier on July