Sprott Inc. (SII): Business Model Canvas [Apr-2026 Updated]

You're trying to map out exactly how a specialized player like Sprott Inc. makes its money in today's market, right? Honestly, their model boils down to being the pure-play expert in hard assets, moving well beyond simple gold funds to capture critical materials like uranium, which has driven their Assets Under Management past $50 billion as of late 2025. They blend high-touch merchant banking with scalable, exchange-listed products, pulling in $135.1 million in management fees just through Q3 2025. It's a focused strategy built on deep resource knowledge. Dig into the nine blocks below to see the exact partnerships and revenue streams that make this model tick.

Sprott Inc. (SII) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that make Sprott Inc.'s specialized asset management engine run, especially in the physical metals and critical materials space. These aren't just vendors; they are essential conduits for product delivery and capital deployment.

ALPS Distributors, Inc. for ETF Distribution and Sub-Advisory Services

Sprott Asset Management USA, Inc. uses ALPS Distributors, Inc. as the Distributor for its suite of exchange-listed products. ALPS Advisors, Inc. acts as a sub-adviser for these funds as well. ALPS Distributors, Inc. is noted as the 4th largest distributor of ETFs in the US, having entered the market in 1995.

ALPS Distributors, Inc. is the Distributor for 12 specific Sprott ETFs as of late 2025, including:

• Sprott Critical Materials ETF (SETM)
• Sprott Uranium Miners ETF (URNM)
• Sprott Junior Uranium Miners ETF (URNJ)
• Sprott Copper Miners ETF (COPP)
• Sprott Junior Copper Miners ETF (COPJ)
• Sprott Lithium Miners ETF (LITP)
• Sprott Nickel Miners ETF (NIKL)
• Sprott Active Gold & Silver Miners ETF (GBUG)
• Sprott Gold Miners ETF (SGDM)
• Sprott Junior Gold Miners ETF (SGDJ)
• Sprott Silver Miners & Physical Silver ETF (SLVR)
• Sprott Active Metals & Miners ETF (METL)

The total Assets Under Management (AUM) for Sprott ETFs has grown significantly; as of the reporting period following Q3 2025, ETF AUM has surpassed $4.5 billion, up from less than $400 million since 2022.

Global Custodians for Physical Bullion Trusts (e.g., Gold, Uranium)

The physical trusts rely on trusted custodians for secure storage. The metals for the Sprott Physical Bullion Trusts are held in custody by the Royal Canadian Mint, which is a Canadian Crown Corporation of the Government of Canada. This structure places unitholders one step removed from a leveraged financial institution.

The scale of these physical trusts is substantial, contributing heavily to the overall AUM. Here are the AUM figures for key trusts as of September 30, 2025:

Trust Name	Ticker	AUM (as of 9/30/2025)
Sprott Physical Gold Trust	PHYS	$14.11B
Sprott Physical Silver Trust	PSLV	$9.34B
Sprott Physical Gold and Silver Trust	CEF	$7.31B
Sprott Physical Platinum and Palladium Trust	SPPP	$485.03M

The Sprott Physical Gold Trust announced an update to its at-the-market equity program in October 2025, allowing for the issuance of up to U.S.$2 billion of units in the United States and Canada.

Major Stock Exchanges (NYSE, TSX) for Product Listing and Liquidity

Sprott Inc.'s common shares trade under the symbol "SII" on both the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). The company's total AUM reached $51 billion as of October 31, 2025.

Specific products also rely on these exchanges for liquidity. For example, the Sprott Physical Gold Trust units trade on the NYSE Arca under "PHYS" and on the TSX under "PHYS" (Canadian dollar denominated) and "PHYS.U" (U.S. dollar denominated). On October 24, 2025, the closing price for PHYS on the NYSE Arca was U.S.$31.06.

Brokerage and Financial Advisor Networks for Product Access

Access to Sprott's exchange-listed products is facilitated through the broader brokerage network. For ETFs, only "authorized participants" can trade directly with the Fund, typically in blocks of 10,000 shares. This mechanism is key to maintaining continuous liquidity on the secondary market.

Net sales across Sprott's strategies, which rely on these networks for distribution, totaled $3.5 billion for the first ten months of 2025.

Natural Resource Companies for Private Lending and Streaming Deals

Sprott partners with natural resource companies through its merchant banking and resource lending activities. Sprott Private Resource Streaming and Royalty (B) Corp. executed a deal to purchase a 3.1% net smelter return royalty on the Premier Gold Project for USD $30,000,000. This was a follow-on to a 2023 financing package that included a USD $110,000,000 gold and silver streaming agreement.

In the Sprott Physical Uranium Trust (SPUT) segment during the second quarter of 2025, the trust closed a $200 million bought deal financing and a $25.6 million non-brokered private placement. The total AUM for Sprott Inc. as of September 30, 2025, stood at $49.1 billion, reflecting strong inflows concentrated largely in the physical trusts.

The fair value of the Company's Level 3 private holdings, which includes these types of private investments, was reported at $4,540 million as of June 30, 2025.

Sprott Inc. (SII) - Canvas Business Model: Key Activities

You're looking at the core engine room of Sprott Inc. (SII) as of late 2025; these are the actions that drive their specialized asset management business, which has seen its Assets Under Management (AUM) grow to $51 billion as of October 31, 2025.

Active and passive asset management of specialized funds

The bulk of Sprott Inc.'s activity centers on managing assets across its three main segments. The Exchange Listed Products segment is the clear leader, representing 85% of the total AUM, or $41.8 billion, as of the third quarter of 2025. The Managed Equities segment accounts for 11% ($5.2 billion), and Private Strategies make up the remaining 4% ($2.1 billion). This management activity translates directly into revenue, with Management Fees for Q3 2025 reaching $50.7 million, a 30% increase compared to Q3 2024.

The underlying asset focus dictates the activity mix:

Product Category	AUM Percentage (Q3 2025)	AUM Amount (Q3 2025)
Gold	50%	$24.6 billion
Silver	26%	$13 billion
Uranium	19%	$9.1 billion

Developing and launching new exchange-listed products (ETFs)

Sprott Inc. is actively expanding its product shelf, a key activity driving AUM growth. They launched three new ETFs earlier in 2025. This focus on listed products has been transformative; ETF AUM has surged from less than $400 million in 2022 to over $4.5 billion by late 2025. The activity here is about capturing market interest quickly, as evidenced by the strong reception to these new strategies.

Specific recent ETF AUM figures as of September 30, 2025, include:

• Sprott Silver Miners & Physical Silver ETF (SLVR) AUM: $343 million.
• Sprott Active Gold & Silver Miners ETF (GBUG) AUM: $105 million.
• Sprott Critical Materials ETF (SETM) posted a quarterly return of 44% in Q3 2025.

Executing capital raises for physical trusts (e.g., Sprott Physical Uranium Trust)

A critical function is the continuous capital raising for the physical trusts, especially the Sprott Physical Uranium Trust (SPUT). Net sales for the first ten months of 2025 totaled $3.5 billion, concentrated largely in these physical trusts. September 2025 was the best sales month in company history, bringing in $879 million of inflows across 20 different investment strategies.

For SPUT specifically, capital raise activity included:

• SPUT closed a $200 million bought deal financing in Q2 2025.
• SPUT closed a $25.6 million non-brokered private placement in Q2 2025.
• SPUT raised $226 million during Q2 2025.
• As of December 4, 2025, SPUT held a total of 308,199,807 units outstanding.

Research and thought leadership on precious metals and critical materials

Sprott Inc. supports its investment products through active research, which is a necessary activity to maintain credibility in its niche. The company's flagship Sprott Gold Equity Fund posted a gain of 44% during Q3 2025 and was up 105.1% for the ten months ended October 31, 2025. The firm's commentary often highlights market fundamentals, such as the expectation that uranium demand will double by 2040.

Merchant banking and resource lending for private strategies

This segment involves more bespoke activities, like syndication and lending, which generate finance income. Finance income for Q3 2025 was $1.6 million, remaining largely flat compared to Q3 2024. However, the year-to-date finance income for the nine months ended September 30, 2025, was $4.2 million, representing a 44% decrease from the $7.5 million earned in the same period last year, mainly due to prior year syndication activity. This segment's AUM stood at $2.1 billion as of Q3 2025.

Overall, the firm's total reported revenues for Q3 2025 were $65.1 million, with Adjusted EBITDA growing 54% year-over-year to $31.9 million.

Sprott Inc. (SII) - Canvas Business Model: Key Resources

You're looking at the core assets that power Sprott Inc.'s specialized business model, which is heavily weighted toward hard assets and the expertise to manage them. These aren't just numbers on a page; they represent the physical backing and intellectual capital that define the firm's value proposition in late 2025.

The sheer scale of assets under management (AUM) is the first thing that stands out. As of October 31, 2025, Sprott Inc. reported AUM at $51 billion. This is up from $49.1 billion as of September 30, 2025. Honestly, seeing that growth trajectory is key to understanding their current valuation.

This AUM is built upon a specialized investment team whose focus is deep in natural resources and mining, which is their competitive moat. They aren't chasing every asset class; they stick to what they know best, which is evident in the structure of their offerings.

The physical holdings are perhaps the most tangible key resource. Sprott Inc. manages several physical bullion trusts that hold unencumbered metal, meaning there's no levered financial institution between the unitholder and the asset. As of September 30, 2025, the breakdown for the main precious metal trusts was substantial:

Trust Name	Ticker	AUM (as of September 30, 2025)
Sprott Physical Gold Trust	PHYS	$14.11 billion
Sprott Physical Silver Trust	PSLV	$9.34 billion
Sprott Physical Gold and Silver Trust	CEF	$7.31 billion
Sprott Physical Platinum and Palladium Trust	SPPP	$485.03 million

The critical materials segment is anchored by the Sprott Physical Uranium Trust (SPUT), which holds physical uranium in U3O8 form. As of May 12, 2025, SPUT held 66.2 million pounds of physical uranium.

For their Exchange Traded Products (ETPs), Sprott Asset Management employs proprietary factor-based indices, which they co-develop with partners to try and outperform standard market-cap-weighted funds. These specialized indices are central to their ETF strategy:

• Solactive Junior Gold Miners Custom Factors Index (SOLJGMFT)
• Nasdaq Sprott Silver Miners™ Index (NSLVR™)
• Solactive Gold Miners Custom Factors Index (SOLGMCFT)

Finally, the financial foundation supporting these operations is strong. You'll note that Sprott Inc. maintained a strong balance sheet, reporting no outstanding debt as of Q2 2025, which gives them significant financial flexibility for growth initiatives. That's a clean balance sheet in this environment.

Finance: draft 13-week cash view by Friday.

Sprott Inc. (SII) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors choose Sprott Inc. (SII) products, especially now, with precious metals and critical materials markets showing such strong moves through late 2025. Sprott Inc. offers a focused proposition in a world increasingly concerned about fiat currency stability.

Pure-play exposure to precious metals and critical materials

Sprott Inc. provides direct access to the physical commodities and the companies that mine them. As of September 30, 2025, total Assets Under Management (AUM) stood at $49.1 billion, which then surpassed the $50 billion milestone in October, reaching $51 billion as of October 31, 2025. This represents a 56% increase in AUM since December 31, 2024, when AUM was $31.5 billion.

The commodity focus is clear in the AUM mix as of September 30, 2025:

• Gold: 50% ($24.6 billion)
• Silver: 26% ($13 billion)
• Uranium: 19% ($9.1 billion)

The critical materials segment also delivered performance, with the Sprott Critical Materials ETF (SETM) posting a quarterly return of 44% in the third quarter of 2025.

Physical trusts offering direct ownership of bullion/commodities

The Physical Trusts are a cornerstone, offering unitholders direct, unencumbered ownership of physical bullion stored with the Royal Canadian Mint. This structure avoids a levered financial institution between the unitholder and the metal.

The growth in this segment was significant through Q3 2025. Physical Trusts AUM increased by $6.5 billion, or 21%, during the quarter. Year-to-date through October 31, 2025, the Physical Trusts gained $15.4 billion, or 64% in AUM. Net sales for the first ten months of 2025 totaled $3.5 billion.

Here is the AUM breakdown for key Physical Trusts as of September 30, 2025:

Trust Product	Ticker	AUM (as of Sept 30, 2025)
Sprott Physical Gold Trust	PHYS	$14.11B
Sprott Physical Silver Trust	PSLV	$9.34B
Sprott Physical Gold and Silver Trust	CEF	$7.31B
Sprott Physical Platinum and Palladium Trust	SPPP	$485.03M

Unitholders benefit from the potential tax advantage where gains on sale may be taxed at a capital gains rate of 15%/20% versus the 28% collectibles rate applied to many precious metals ETFs.

Active management expertise in mining equities (e.g., GBUG ETF)

Sprott Inc. applies its deep mining expertise through actively managed products. The flagship Sprott Gold Equity Fund posted a gain of 44% in Q3 2025 and a gain of 105.1% for the ten months ended October 31, 2025.

The Sprott Active Gold & Silver Miners ETF (GBUG), which launched on February 19, 2025, reached $100 million in AUM by September 22, 2025. By December 4, 2025, GBUG's Total Net Asset Value was $131.84 Million. This fund's Net Total Expense Ratio is 0.89%. GBUG's cumulative change in Net Asset Value (NAV) since inception as of December 4, 2025, was 105.00%.

Overall ETF AUM has seen rapid scaling, growing from less than $400 million since 2022 to over $4.5 billion by October 31, 2025.

Safe-haven and growth opportunities with inflation protection

The value proposition is tied directly to the performance of the underlying commodities, which act as inflation hedges. Metal price appreciation drove AUM growth in Q3 2025.

Precious metal price performance for the ten months ended October 31, 2025, shows substantial gains:

• Platinum: up 73.5%
• Silver: up 68.5%
• Palladium: up 57.6%
• Gold: up 52.5%

For the third quarter of 2025 alone, Gold gained 16.8% and Silver rose 29.2%.

Liquidity and transparency through exchange-listed products

Exchange Listed Products represented 85% ($41.8 billion) of Sprott Inc.'s total AUM as of September 30, 2025. This highlights the preference for liquid, exchange-traded structures over other strategies.

For products like GBUG, liquidity is offered through daily trading on the Nasdaq, with a premium/discount to NAV of only 0.27% as of December 4, 2025. Similarly, the Physical Trust units can be bought and sold on any open trading day on the NYSE or TSX. The daily transparency of the ETF structure is a key feature.

Finance: draft 13-week cash view by Friday.

Sprott Inc. (SII) - Canvas Business Model: Customer Relationships

You're looking at how Sprott Inc. manages its relationships across its diverse client base as of late 2025. It's a mix of high-touch service for sophisticated partners and scalable digital access for the broader market, all centered around their niche in precious metals and critical materials.

Dedicated institutional client relations team

Sprott Inc. maintains a dedicated structure to serve its largest clients and partners. You can reach out to Glen Williams, who serves as the Senior Managing Partner for Investor and Institutional Client Relations, at telephone number 416.943.4394 or via email at gwilliams@sprott.com. This team supports the relationships underpinning the firm's substantial asset base, which reached $49.1 billion as of September 30, 2025, and subsequently grew to $51 billion by October 31, 2025.

Proactive investor relations and shareholder communication

Shareholder communication is clearly structured, reflecting the firm's status as a publicly traded entity on both the New York Stock Exchange and Toronto Stock Exchange under the symbol SII. The board of directors is actively engaged, as shown by the declaration of a third quarter 2025 dividend of US$0.40 per common share on November 4, 2025, representing a 33% increase over the previous quarter's dividend. The total number of issued and outstanding shares as of that date was 25,801,644. The firm's commitment to its shareholders is also evident in the consistent growth of its AUM, which saw a 56% increase from $31.5 billion at the end of 2024 to $49.1 billion by September 30, 2025.

Here's a look at the scale of investor activity driving these relationships:

Metric	Value (as of late 2025)	Context
Total AUM (Oct 31, 2025)	$51 billion	Represents the total assets managed across all strategies.
Q3 2025 Net Sales	$1.1 billion	Concentrated largely in the physical trusts during the quarter.
Ten Months 2025 Net Sales (to Oct 31)	$3.5 billion	Shows sustained capital attraction year-to-date.
September 2025 Inflows	$879 million	The best sales month in company history, spread across 20 different investment strategies.

Digital content and thought leadership via Sprott Insights

Sprott Inc. uses its digital platform, Sprott Insights, to maintain a relationship with a wider audience by providing specialized analysis. This content focuses on the firm's core expertise in precious metals and critical materials. The firm deploys several subject matter experts to generate this thought leadership.

The relationship is fostered through various content formats:

• Report
• Video
• Webcast
• Infographics

Key experts contributing to this content include John Ciampaglia, Whitney George, John Hathaway, and Jacob White, among others. For instance, John Ciampaglia, CEO of Sprott Asset Management, provided takeaways from the September 2025 World Nuclear Symposium, highlighting surging uranium demand.

High-touch service for private strategies and lending partners

The Private Strategies segment requires a more direct, high-touch relationship model, though it represents a smaller portion of the overall asset base. As of September 30, 2025, this segment accounted for 4% of total AUM, equating to $2.1 billion. Management is aware that earnings from this segment are exposed to volatility due to sudden changes in interest rates, meaning these relationships require careful risk management processes.

Scalable, low-touch access for retail via brokerage platforms

The largest segment of Sprott Inc.'s customer base interacts via scalable, low-touch channels, primarily through Exchange Listed Products. This category dominates the asset mix. The firm has successfully launched new products that have scaled quickly, indicating strong retail and intermediary adoption through brokerage channels.

The AUM breakdown shows the reliance on this scalable channel:

• Exchange Listed Products: 85% of AUM ($41.8 billion as of September 30, 2025).
• New ETFs launched in 2025, like SLVR and GBUG, achieved AUM milestones faster than any prior launches.
• The AUM for the Sprott Silver Miners & Physical Silver ETF (SLVR) stood at $343 million as of September 30, 2025.
• The AUM for the Sprott Active Gold & Silver Miners ETF (GBUG) was $105 million as of September 30, 2025.

Overall ETF AUM has grown significantly, moving from less than $400 million in 2022 to over $4.5 billion by late 2025.

Sprott Inc. (SII) - Canvas Business Model: Channels

You're looking at how Sprott Inc. gets its specialized precious metals and critical materials investment products into the hands of clients as of late 2025. It's a multi-pronged approach, heavy on public markets but supported by direct institutional access.

The sheer scale of assets managed dictates the importance of the public exchange channels. As of September 30, 2025, Sprott Inc.'s Assets Under Management (AUM) stood at $49.1 billion, having surged 56% since the end of 2024.

Global stock exchanges (NYSE, TSX) for ETF and trust trading

• Exchange Listed Products represent 85% ($41.8 billion) of the total AUM as of Q3 2025.
• ETF AUM has grown from under $400 million in 2022 to over $4.5 billion by Q3 2025.
• Sprott Physical Gold Trust (PHYS.U) held a market capitalization of C$15.46 billion near the end of 2025.
• The company declared a third-quarter dividend of $0.40 per share, a 33% increase.

The distribution relies heavily on the liquidity and visibility provided by these major venues, which is key for attracting large flows, especially from institutional sources.

Discount and full-service brokerage platforms for retail access

• Retail interest in trust trading was noted as 'kind of soft' in Q1 2025, suggesting institutional interest was the primary driver of trust trading volumes then.
• Sprott Inc. expanded its product shelf earlier in 2025 with the launch of 3 new ETFs.

The direct sales effort targets the largest pools of capital, which is critical for the physical trusts and private strategies segments.

Direct sales to institutional investors and sovereign wealth funds

• Net sales for the first ten months of 2025 totaled $3.5 billion.
• Q3 2025 saw net sales of $1.1 billion, with September being the best sales month in company history at $879 million of inflows across 20 strategies.
• The Private Strategies AUM was $2.1 billion as of Q2 2025.
• In Q2 2025, the company completed 2 capital raises specifically in the Sprott Physical Uranium Trust.

The engagement with the broader financial ecosystem is evident through the firms that service high-net-worth individuals and manage substantial assets.

Financial advisors and wealth management firms

• Firms like Alliancebernstein L.P., Raymond James Financial Inc., and Invesco Ltd. are listed among institutional holders of Sprott Inc. stock.
• Sprott Focus Trust, Inc. declared a quarterly distribution of $0.1911 per share, payable December 29, 2025, based on November 30, 2025, performance metrics.

Here's a quick look at the AUM breakdown by segment, showing where these channels are directing capital:

Segment	AUM (as of Q3 2025)	Percentage of Total AUM
Exchange Listed Products	$41.8 billion	85%
Managed Equities	$5.2 billion	11%
Private Strategies	$2.1 billion	4%

Finally, the digital presence serves as the central hub for transparency and direct communication.

Corporate website and investor relations portal

• The corporate website was the source for the Q3 2025 financial results announced on November 5, 2025.
• The company reported total revenues of $65.1 million for Q3 2025.

Finance: review the Q4 2025 AUM projections against the October 31, 2025, figure of $51 billion by end of next week.

Sprott Inc. (SII) - Canvas Business Model: Customer Segments

You're looking at the core client base for Sprott Inc. as of late 2025, which is heavily influenced by the firm's specialization in precious metals and critical materials. The numbers clearly show where the bulk of the capital is coming from, which directly informs who Sprott Inc. is serving.

As of September 30, 2025, Sprott Inc.'s total Assets Under Management (AUM) stood at $49.1 billion. This figure grew to $51 billion by October 31, 2025, showing continued momentum in the latter part of the year.

The client base is segmented primarily by the investment vehicle they use, which aligns with the types of investors Sprott Inc. targets:

• The Exchange Listed Products segment is the dominant engine, accounting for 85% of total AUM as of Q3 2025.
• The firm has seen significant success with its newer Exchange Traded Funds (ETFs), with ETF AUM growing from less than $400 million in 2022 to over $4.5 billion by late 2025.
• Net sales for the first ten months of 2025 reached $3.5 billion, concentrated largely in the physical trusts, which appeal directly to retail and institutional investors seeking physical asset exposure.

Here is a breakdown of the AUM distribution across the primary product categories, which serve as the best proxy for the firm's customer segments as of September 30, 2025:

Customer Segment Proxy (Product Focus)	AUM Percentage (Q3 2025)	AUM Amount (Q3 2025)	Key Asset Class Exposure
Retail investors seeking inflation protection and hard asset exposure (Exchange Listed Products)	85%	$41.8 billion	Gold (50% of total AUM), Silver (26% of total AUM)
High-net-worth individuals seeking specialized alternative investments (Managed Equities)	11%	$5.2 billion	Active management in resource equities; flagship Gold Equity Fund gained 44% in Q3 2025.
Institutional investors, family offices, and capital for resource financing (Private Strategies)	4%	$2.1 billion	Private debt or streaming capital deployment, though specific deployment figures for natural resource companies aren't itemized here.

The focus on critical materials is also a clear segment driver, with uranium representing 19% of total AUM as of Q3 2025. This directly addresses global investors and entities focused on supply chain security.

The firm's offerings are designed to capture capital from both the traditional safe-haven buyer and the growth-oriented investor interested in the energy transition:

• Investors seeking physical ownership via trusts (appealing to retail and institutional).
• Investors allocating to the energy transition theme via uranium and critical materials strategies.
• Investors utilizing actively managed funds for sector-specific performance capture.

Finance: draft a memo by next Tuesday detailing the expected AUM growth rate needed to hit a $60 billion AUM run-rate by the end of 2026, based on the $3.5 billion net sales year-to-date figure.

Sprott Inc. (SII) - Canvas Business Model: Cost Structure

You're looking at the core expenses that Sprott Inc. (SII) incurs to run its specialized asset management business, which is heavily weighted toward personnel and the operational costs of its physical trusts and ETFs. Honestly, for a firm focused on niche, high-touch areas like precious metals and critical materials, compensation and related overhead are going to be significant drivers of the cost base.

Here's a look at the latest figures we have, primarily from the nine months ended September 30, 2025 (Q3 2025 results) and the full fiscal year 2024.

Cost Component	Latest Period Reported	Financial Amount (USD)
Net Compensation Expense (YTD)	Nine Months Ended September 30, 2025	$54.3 million
Stock-Based Compensation (Quarterly)	Q3 2025	$18.6 million
General and Administrative (SG&A) Expense (Annual)	Full Year Ended December 31, 2024	$18.8 million
Net Management Fees (Before Fund Expenses) (YTD)	Nine Months Ended September 30, 2025	$135.1 million
Net Compensation Ratio (YTD)	Nine Months Ended September 30, 2025	42%

Let's break down those line items based on your outline. The numbers show a clear increase in personnel-related costs, which tracks with the AUM growth to $49.1 billion as of September 30, 2025.

Employee compensation and benefits, including stock-based plans

This is the largest variable cost tied to revenue generation. Net compensation expense for the nine months ended September 30, 2025, reached $54.3 million, up 9% from the same period in 2024. The net compensation ratio-net compensation divided by net revenues-was 42% year-to-date for Q3 2025. The stock-based element is substantial; for the third quarter of 2025 alone, stock-based compensation was $18.6 million. For context, the full year 2024 net compensation expense was $67.3 million.

Distribution and marketing fees paid to partners like ALPS

Sprott Inc. does not explicitly break out fees paid to a specific partner like ALPS in the public filings I can access. However, we see the drivers of related overhead. For the full year 2024, SG&A expense increased by 13% to $18.8 million, driven by higher professional services, marketing, and technology costs. This suggests marketing spend is embedded within the SG&A figure.

General and administrative (SG&A) expenses for corporate operations

For the full year 2024, Sprott Inc. reported SG&A expenses of $18.8 million, which was a 13% increase from 2023. The quarterly run rate for Q4 2024 was $4.9 million.

Custodian and administrative fees for physical trusts

These costs, which cover the safekeeping and administration of physical assets in trusts and ETFs, are generally netted out of management fees as 'fund expenses.' For the nine months ended September 30, 2025, management fees (net of fund expenses) were $135.1 million. The fact that the net management fee rate is used suggests these operational costs are directly subtracted from gross management fees before they hit the income statement as net revenue.

Research and data costs for specialized investment analysis

Specific line-item data for research and data costs is not separately disclosed. These costs are absorbed within the broader operating expenses, such as the components driving the 2024 SG&A increase, which included higher technology costs.

Finance: review the Q4 2025 expense accruals against the Q3 2025 compensation ratio by Friday.

Sprott Inc. (SII) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Sprott Inc.'s earnings power as of late 2025, which is heavily weighted toward asset management fees, reflecting the significant growth in their Assets Under Management (AUM). The business model is clearly structured around recurring management fees, supplemented by performance-based income when their specialized strategies deliver outsized returns in the precious metals and critical materials space.

The primary revenue driver is the management fee component, which scales directly with the assets Sprott Inc. oversees. As of the nine months ended September 30, 2025, management fees totaled $135.1 million, marking a 19% increase compared to the same period in 2024. For the third quarter alone, management fees were $50.7 million. This growth is underpinned by the firm's AUM reaching $49.1 billion at the end of Q3 2025, which subsequently surpassed $50 billion in October 2025.

Performance fees and carried interest provide the variable upside, tied closely to the success of the actively managed strategies. For the nine months ended September 30, 2025, this stream generated $16.6 million, a substantial increase from only $4.8 million in the first nine months of 2024. The Q3 2025 figure was $1.8 million. This income crystallizes mainly from the Managed Equities segment, where flagship funds like the Sprott Gold Equity Fund posted a gain of 105.1% for the ten months ended October 31, 2025.

Net commissions from trading activities are a smaller, but important, component, heavily influenced by the physical trusts. Commission revenue saw an increase year-to-date, primarily driven by higher activity in the Sprott Physical Uranium Trust. While specific net commission figures for YTD 2025 aren't isolated in the same way as the other lines, the overall health of the fee-based business is clear from the total net fees.

Advisory service fees from various investment products are generally captured within the management fee structure for the listed products, but the firm's expertise in private strategies also contributes to revenue through deal flow and structuring. The firm is actively developing new exchange-listed products, including active ETFs, which have grown their AUM from under $400 million to over $4.5 billion since 2022.

Finance income, derived from resource lending and private strategies, was $4.2 million for the nine months ended September 30, 2025, though this was down 44% year-over-year. The Q3 2025 finance income was $1.6 million, largely flat compared to Q3 2024.

Here's a quick look at the key revenue components for the nine months ended September 30, 2025, compared to the prior year period:

Revenue Stream Component	YTD Q3 2025 Amount (Millions USD)	YTD Q3 2024 Amount (Millions USD)	Change YTD
Management fees from AUM	$135.1	$113.9	Up 19%
Carried interest and performance fees	$16.6	$4.8	Increase
Finance income	$4.2	$7.5	Down 44%
Total Net Fees (Closest Proxy)	$135.6	$106.1	Up 28%

The revenue mix shows a clear reliance on the base management fees, which are the most stable part of the income. Still, the significant jump in performance fees shows that the active management side is beginning to pay off handsomely as asset values rise.

• AUM as of September 30, 2025: $49.1 billion.
• AUM as of October 31, 2025: $51 billion.
• Net sales for the first ten months of 2025: $3.5 billion.
• September 2025 net sales: $879 million across 20 strategies.
• Managed Equities AUM segment: 11% of total AUM, or $5.2 billion.

To be fair, the growth in AUM across the physical trusts, which are less fee-intensive than managed equities, means the fee rate on total AUM might be compressed slightly, but the absolute dollar growth in management fees is strong. Finance: draft 13-week cash view by Friday.