Sprott Inc. (NYSE/TSX: SII) shares plummeted 5.22% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results. Despite reporting significant revenue growth, the company's earnings fell short of analyst expectations, disappointing investors.

The asset management firm, which specializes in precious metals and critical materials investments, reported earnings of $0.52 per share for the quarter ended June 30, 2025. This represents a slight decrease from $0.53 per share in the same period last year and falls below the FactSet analyst consensus estimate of $0.55 per share. The earnings miss comes despite a substantial increase in total revenue, which rose to $65.174 million, up 56.71% from $41.589 million in the previous year and significantly beating the analyst estimate of $47.022 million.

Sprott's Assets Under Management (AUM) reached a record high of $40 billion as of June 30, 2025, up 14% from $35.1 billion at the end of the first quarter and 27% from $31.5 billion at the end of 2024. The company attributed this growth to market value appreciation across its product suite, driven by rising precious metals and uranium prices, as well as strong performance in its managed equities segment. Net sales for the quarter were $1.2 billion, primarily concentrated in the company's physical trusts. Despite these positive indicators, investors seem to be focusing on the earnings miss, leading to the sharp decline in the stock price.