Sprott (NYSE: SII) raises its dividend 25%, but October brings an AUM drop

What happened

Sprott Inc. (NYSE: SII) raised its regular quarterly dividend 25% on Nov. 3 and declared a payout of $0.50 per share.

The Nov. 4 earnings release showed third-quarter net income of $22 million, or $0.86 per share, up 67% from $13.2 million a year earlier. It also showed that assets under management (AUM) were $52.1 billion on Oct. 30, down 9% from $57.3 billion at Sept. 30.

That is a $5.2 billion drop in one month. Sprott's revenue growth rests on higher average AUM, so the size of the asset base matters for fees. Holders must weigh the quarter's gains against October's drop.

Key numbers

Metric	Latest	Change	Source
AUM at Oct. 30 (change vs. Sept. 30)	$52.1 billion	-9%	Sprott Q3 2026 press release (SEC 6-K)
Q3 net income	$22 million	from $13.2 million, +67%	Sprott Q3 2026 press release (SEC 6-K)
Q3 management fees	$70.8 million	from $50.7 million, +40%	Sprott Q3 2026 press release (SEC 6-K)
Q3 net fees	$64.5 million	from $47.1 million, +37%	Sprott Q3 2026 press release (SEC 6-K)
Q3 adjusted EBITDA	$46 million	from $31.9 million, +44%	Sprott Q3 2026 press release (SEC 6-K)
Quarterly dividend declared Nov. 3	$0.50 per share	+25%	Sprott Q3 2026 press release (SEC 6-K)

Read more: Sprott (SII) company research

How the quarter came in

Fees did the work. Management fees were $70.8 million, up 40% from $50.7 million a year earlier. Net fees reached $64.5 million, up 37% from $47.1 million.

Average AUM for the quarter was $58.8 billion, up 39% from $42.3 billion in the third quarter of 2025. Sprott says net inflows and market value gains across most fund products more than offset pullbacks in precious metals prices that began in the second quarter.

Pay grew more slowly than fees. Net compensation expense rose 16% to $22.1 million, and the net compensation ratio was 33%, down from 39% a year earlier. Adjusted EBITDA was $46 million, or $1.79 per share, up 44% from $31.9 million.

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Where assets moved

The mix of flows matters as much as the total. Sprott reported net redemptions in its precious metals strategies in the quarter and net sales in its critical materials strategies. Its AUM schedule shows precious metals physical trusts and ETFs with $399 million of net outflows, against $232 million of net inflows for critical materials trusts and ETFs. Market value changes added $1.41 billion to the precious metals group.

Over nine months the split is wider. Precious metals trusts and ETFs had $805 million of net outflows and $4.02 billion of market value declines. Critical materials products took in $2.34 billion of net inflows. Across Sprott, AUM was down 4% from $59.6 billion at the end of 2025, with $1.13 billion of net inflows offset by $3.42 billion of market value declines.

Precious metals physical trusts and ETFs still held $37.75 billion of the quarter-end total, the largest of Sprott's AUM groupings.

Why it matters

OptimistFi has argued that Sprott creates value if its specialist franchise keeps drawing fee-paying assets through commodity cycles and turns that into per-share earnings. The quarter shows the earnings side working. October's drop tests the cycle side, and OptimistFi reads the filing as weakening the case.

Some of the quarter's strength is less repeatable. Carried interest and performance fees were $0.1 million, down from $1.8 million a year earlier. The nine-month total of $52.1 million, up from $16.6 million, benefited from carried interest crystallization in private strategies in the first quarter.

Stock-based compensation also helped the comparison. That expense fell 26% to $16.5 million from $22.4 million. Sprott attributes this to a smaller mark-to-market on cash-settled restricted stock units, after its stock rose 6% in the quarter, compared with 20% a year earlier.

Chief Executive Whitney George tied the dividend increase to continued strong financial results. The filing also says dividends are not guaranteed and that the board sets their amount and timing at its discretion. Third-quarter fees were based on average AUM, and the Oct. 30 balance sits below that average.

What's next

The next quarterly report is the next scheduled test. AUM recovering from the Oct. 30 level, or renewed net inflows into precious metals strategies, would support the dividend increase and the investment case.

Another month like October, or continued net redemptions in precious metals, would put pressure on management fees, the largest revenue line in this quarter's results.

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