ProShares Trust II reported its financial results for the period ending September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, total assets increased to $368.3 million from $283.4 million at the end of 2023. Shareholders' equity also rose to $364.6 million, up from $267.2 million. However, the net asset value (NAV) per share decreased to $50.16 from $51.69. The number of shares outstanding increased to 7.3 million from 5.2 million, reflecting a 40.6% rise in shares compared to the previous nine-month period.

Investment income for the three months ended September 30, 2024, was reported at $5.8 million, while for the nine months, it totaled $12.6 million. Total expenses for the three months were $1.5 million, leading to a net investment income of $4.3 million. In contrast, the net income for the three months ended September 30, 2024, was a loss of $7.4 million, compared to a net income of $5.8 million for the same period in 2023. For the nine months, net income was $44 million, down from $116.6 million in the previous year.

The ProShares Ultra Bloomberg Natural Gas Fund executed a 1-for-20 reverse share split on June 22, 2023, and a 2-for-1 forward split on April 10, 2024. The ProShares Short VIX Short-Term Futures ETF also executed a 2-for-1 forward split on April 10, 2024. These actions were retroactively applied, affecting the number of shares outstanding and the price per share without changing the aggregate net asset value.

The Trust identified a material weakness in its internal controls over financial reporting, specifically regarding the presentation and disclosure of segregated cash balances with brokers for futures contracts. This led to restatements of financial statements for several periods, including the years ended December 31, 2021, 2022, and 2023.

Overall, while the Trust experienced growth in total assets and shareholders' equity, it faced challenges in profitability, particularly in net income, which saw a significant decline compared to the previous fiscal period. The strategic adjustments, including share splits and internal control improvements, reflect ongoing efforts to enhance operational efficiency and financial reporting accuracy.