A-Mark Precious Metals, Inc. (AMRK) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary shows mixed indicators: strong revenue growth and promising international market expansion, but concerns over tariffs and backwardation remain. Positive developments like strategic acquisitions and automation investments are counterbalanced by declining DTC order values and unclear management responses. The Q&A section highlights optimism in certain areas but also reveals ongoing challenges and uncertainties. Given these factors, the stock price is likely to remain stable, resulting in a neutral prediction.
Key Financial Performance
Net Income (Fiscal Year 2025) $17.3 million, a significant decrease from $68.5 million in the prior fiscal year. The decline was attributed to challenging market conditions and lower gross profits from wholesale sales and ancillary services.
Net Income (Q4 Fiscal 2025) $10.3 million, a decrease from $30.9 million in Q4 of the previous year. The decline was due to lower earnings from equity method investments and increased SG&A expenses.
Revenue (Fiscal Year 2025) $10.98 billion, a 1.3% increase from $9.7 billion in the prior fiscal year. The increase was driven by higher average selling prices of gold and silver and acquisitions of SGB, SGI, Pinehurst, and AMS.
Revenue (Q4 Fiscal 2025) $2.51 billion, a 1% decrease from $2.52 billion in Q4 of the previous year. The decline was due to a $94 million decrease in forward sales, partially offset by higher average selling prices of gold and silver.
Gross Profit (Fiscal Year 2025) $210.9 million, a 22% increase from $173.3 million in the prior fiscal year. The increase was due to higher profits in the direct-to-consumer segment, offset by lower profits in wholesale sales.
Gross Profit (Q4 Fiscal 2025) $81.7 million, a 90% increase from $43.0 million in Q4 of the previous year. The increase was primarily due to acquisitions of SGB, SGI, Pinehurst, and AMS.
SG&A Expenses (Fiscal Year 2025) $139 million, a 55% increase from $89.8 million in the prior fiscal year. The increase was driven by higher compensation expenses, advertising costs, and consulting fees, as well as expenses from recent acquisitions.
SG&A Expenses (Q4 Fiscal 2025) $53.4 million, a 135% increase from $22.7 million in Q4 of the previous year. The increase was due to higher compensation expenses, advertising costs, and consulting fees, along with expenses from acquisitions.
Depreciation and Amortization (Fiscal Year 2025) $22.9 million, a 101% increase from $11.4 million in the prior fiscal year. The increase was due to amortization of intangible assets from acquisitions and higher capital expenditures.
Depreciation and Amortization (Q4 Fiscal 2025) $8.6 million, a 201% increase from $2.8 million in Q4 of the previous year. The increase was due to amortization of intangible assets from acquisitions.
Interest Income (Fiscal Year 2025) $25.9 million, a 4% decrease from $27.2 million in the prior fiscal year. The decline was due to lower interest income from secured lending and other finance products.
Interest Income (Q4 Fiscal 2025) $5.3 million, a 34% decrease from $8.1 million in Q4 of the previous year. The decline was due to lower interest earned from repurchase agreements and other finance products.
Interest Expense (Fiscal Year 2025) $46.2 million, a 17% increase from $39.5 million in the prior fiscal year. The increase was driven by higher borrowings related to precious metal leases and financing agreements.
Interest Expense (Q4 Fiscal 2025) $12.9 million, a 34% increase from $9.6 million in Q4 of the previous year. The increase was due to higher borrowings related to precious metal leases and financing agreements.
EBITDA (Fiscal Year 2025) $64.4 million, a 40% decrease from $106.5 million in the prior fiscal year. The decline was due to lower gross profits and higher SG&A expenses.
EBITDA (Q4 Fiscal 2025) $29.2 million, a 24% decrease from $38.4 million in Q4 of the previous year. The decline was due to lower gross profits and higher SG&A expenses.
Gold Sales (Fiscal Year 2025) 1.6 million ounces, an 11% decrease from the prior fiscal year. The decline was due to lower demand.
Gold Sales (Q4 Fiscal 2025) 346,000 ounces, a 23% decrease from Q4 of the previous year. The decline was due to lower demand.
Silver Sales (Fiscal Year 2025) 73.6 million ounces, a 32% decrease from the prior fiscal year. The decline was due to lower demand.
Silver Sales (Q4 Fiscal 2025) 15.7 million ounces, a 38% decrease from Q4 of the previous year. The decline was due to lower demand.
DTC New Customers (Fiscal Year 2025) 1,129,200, a 57% increase from 718,500 in the prior fiscal year. The increase was driven by acquisitions of SGI, Pinehurst, and AMS.
DTC New Customers (Q4 Fiscal 2025) 108,900, an 81% decrease from Q4 of the previous year. The decline was due to lower customer acquisition rates.
DTC Average Order Value (Fiscal Year 2025) $2,886, a 19% increase from the prior fiscal year. The increase was due to higher average selling prices.
DTC Average Order Value (Q4 Fiscal 2025) $2,443, a 15% decrease from Q4 of the previous year. The decline was due to lower customer spending.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
New acquisitions: Acquired Spectrum Group International, AMS Holdings, and Pinehurst Coin Exchange, integrating them under the A-Mark umbrella.
Automation upgrades: Completed automation upgrades at AMGL facility, centralizing operations in Las Vegas.
Expansion into Asia: LPM is now fully operational in Singapore, expanding reach into Southeast Asian markets through wholesale and e-commerce channels.
Cost savings synergies: Achieved cost savings by migrating Pinehurst logistics operations to Las Vegas.
Operational leverage: Improved operational leverage through integration initiatives and centralized operations.
Diversified platform: Broadened platform with acquisitions and international presence, targeting higher-margin collectible and luxury segments.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Market Uncertainty: Ongoing uncertainty in the physical markets has led to increased supply and range-bound premium spreads, which could impact profitability and operational stability.
Revenue Decline in Key Segments: Revenues for Q4 fiscal 2025 decreased by 1% compared to the same period last year, and there was a notable decrease in gold and silver ounces sold, which could affect future revenue streams.
SG&A Expense Increase: SG&A expenses for Q4 fiscal 2025 increased by 135%, driven by higher compensation, advertising, and consulting costs, which could pressure margins.
Interest Expense Growth: Interest expense for Q4 fiscal 2025 increased by 34%, primarily due to higher borrowings, which could strain financial resources.
Decline in New Customers: The number of new customers in the DTC segment decreased significantly by 81% in Q4 fiscal 2025 compared to the same period last year, which could hinder customer base expansion.
Inventory Turnover Decline: The inventory turn ratio for Q4 fiscal 2025 decreased by 17% compared to the same period last year, indicating potential inefficiencies in inventory management.
Earnings Decline: Net income on a GAAP basis for Q4 fiscal 2025 decreased significantly compared to the same period last year, reflecting challenges in maintaining profitability.
Secured Loan Reduction: The number of secured loans and the receivable balance decreased significantly, which could impact the company's secured lending segment.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Future Growth and Market Positioning: The company is optimistic about its long-term trajectory and ability to deliver shareholder value in fiscal 2026, supported by an expanded brand portfolio and ongoing integration and optimization opportunities.
Operational Efficiency: Investments in infrastructure and automation technology at the Las Vegas facility are expected to centralize operations, manage costs, and enable scalability as market conditions evolve.
International Expansion: The company has broadened its reach into the Southeast Asian market with LPM fully operational in Singapore, targeting both wholesale and e-commerce channels.
Market Segments: A-Mark aims to expand its footprint into higher-margin luxury and collectible segments, leveraging its recent acquisitions and international presence.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Where does the company believe we are in the current market cycle?
A:The company observed strength in April, but May and June were slower. They continue to face challenges with higher spot prices and premiums on silver products. Despite these challenges, they are optimistic about the integration of acquisitions and cost optimization efforts, though the market remains similar to the past 3-6 months.
Q:What are the company's current thoughts on strategic M&A?
A:The company is open to future acquisitions and believes they are ready to digest new opportunities. They have made progress in integrating recent acquisitions and are balancing capital allocation between inventory, acquisitions, and optimization of existing purchases. They see slower markets as better opportunities for acquisitions.
Q:What is the status of the company's countercyclical acquisitions?
A:The company highlighted the success of Stack's Bowers, which recently concluded its largest rare coin auction, generating $62 million over 9 days. The rare coin market is strong, and the countercyclical strategy is proving beneficial, particularly in higher-margin areas like rare coins.
Q:Has the company completed upgrading its Vegas distribution center?
A:The Vegas distribution center is 95% complete. Infrastructure is finished, and work continues on software and IT integration. The center is operational, has increased capacity, and has onboarded new clients, which is expected to drive future business and market share.
Q:What constitutes a good environment for the company, and what are the current challenges?
A:A good environment includes volatility and uncertainty in equity markets, which drive demand for their products. Current challenges include high spot prices driven by central banks, tariffs, and higher inventory carrying costs. The company is working to reduce inventory and manage costs while preparing for potential market changes.
Q:How are tariffs impacting the company's business?
A:Tariffs have caused uncertainty and disruptions in metal sourcing and hedging strategies. This has led to higher carrying costs and occasional backwardation in the market, negatively affecting profitability. The company has managed these challenges but continues to face uncertainty.
Q:What drove the strong gross margin performance?
A:The strong gross margin was driven by contributions from recent acquisitions and higher-margin businesses. However, these higher-margin businesses represent a small portion of total sales. The company is focusing on efficiencies, synergies, and inventory reduction to further improve margins.
Q:What is the company's outlook on international market exposure?
A:The company is optimistic about growth in international markets, particularly in Asia. They have integrated their LPM acquisition in Hong Kong, expanded into Singapore, and gained access to new products and customers. While not immediately material to top-line sales, these markets show promise for future growth.
Q:What are the promising areas in the current soft environment?
A:Promising areas include higher-premium bullion products, rare coins, and the CFC finance business, which has seen growth in loans. The company is also seeing positivity in silver products as prices rise above $40. They continue to adjust their business to capitalize on these opportunities.
Q:What is the impact of backwardation and recent government announcements on the business?
A:Backwardation and government announcements, such as declaring silver a strategic metal, have caused market disruptions and increased costs. These events have affected the company's ability to finance inventory and hedge effectively. While these disruptions are usually short-term, they create uncertainty and challenges.
Q:What progress has been made in integrating recent acquisitions?
A:Significant progress has been made in integrating acquisitions like Pinehurst, AMS, and Stack's Bowers. Key achievements include moving inventory and logistics to Las Vegas, finding synergies in marketing, and building an integrated trading desk. The company continues to work on eliminating redundancies and optimizing operations.
Q:Review of Unclear Management Responses
A:Management avoided providing clear answers on the long-term impact of tariffs and backwardation, as well as specific details on how they plan to address these challenges. Additionally, while they expressed optimism about international markets and acquisitions, they did not provide concrete timelines or measurable goals for these initiatives.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AMS Holdings
AMS acquisition
AMS increase
AMS period
Coin Exchange
Group International
Pinehurst AMS
Pinehurst Coin
SGA increase
SGB SGI
SGB acquisition
SGI Pinehurst
Spectrum Group
Thor
accrual increase
acquisition AMS
acquisition SGI
amortization share
basis share
borrowing metal
channel reach
decrease interest
facility product
financing agreement
income basis
income decrease
income non
increase acquisition
interest SGB
interest tax
lease trading
leverage
loss
metal lease
month acquisition
non income
tax depreciation
tax interest
AMRK Transcript
A-Mark Precious Metals, Inc. (AMRK) Q1 2026 Earnings Call Transcript
Positive11-6
The earnings call summary reveals strong financial performance with increased gold sales and new customer growth, despite a decline in silver sales. The Q&A highlights positive market demand for gold and strategic acquisitions like Monex, aimed at enhancing operational efficiency and expanding market presence. Management's focus on cost synergies and logistics capacity further supports a positive outlook. However, some uncertainties regarding customer behavior and cost reduction timelines remain. Overall, the strong demand and strategic initiatives suggest a positive stock price movement over the next two weeks.
A-Mark Precious Metals, Inc. (AMRK) Q4 2025 Earnings Call Transcript
Unknown9-9
The earnings call summary shows mixed indicators: strong revenue growth and promising international market expansion, but concerns over tariffs and backwardation remain. Positive developments like strategic acquisitions and automation investments are counterbalanced by declining DTC order values and unclear management responses. The Q&A section highlights optimism in certain areas but also reveals ongoing challenges and uncertainties. Given these factors, the stock price is likely to remain stable, resulting in a neutral prediction.
A-Mark Precious Metals, Inc. (AMRK) Q3 2025 Earnings Call Transcript
Unknown5-7
Despite a 32% revenue increase, A-Mark experienced a net loss and significant EBITDA decline, raising investor concerns. The Q&A highlighted uncertainties in gold market dynamics and unclear management responses on key issues, particularly regarding backwardation impacts and long-term gold holders' actions. While acquisitions and DTC expansion are positives, the negative financial metrics and uncertainties overshadow these. Additionally, the absence of strong guidance or a new partnership announcement further dampens sentiment. Given these factors, a negative stock price reaction is expected over the next two weeks.
Earnings call transcript: Amark Preci Q2 FY2025 sees revenue rise 32%
Unknown2-6
The earnings call presents a mixed picture: strong revenue growth contrasts with decreased net income and EBITDA. Despite an optimistic outlook on acquisitions and market expansion, management's vague responses about the Stacks deal's accretiveness and the balancing of dividends, buybacks, and M&A raise concerns. The maintained dividend and share repurchase provide some support, but the decline in gross profit and increased expenses temper optimism. These factors suggest a neutral sentiment, with no strong catalysts for a significant stock price movement in either direction.
AMRK Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
