Earnings call transcript: Amark Preci Q2 FY2025 sees revenue rise 32%
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
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.
Key Financial Performance
Revenue (Q2 FY 2025) $2,742,000,000, an increase of 32% from $2,079,000,000 in Q2 FY 2024. The increase was due to higher gold ounces sold and higher average selling prices of gold and silver, partially offset by a decrease in silver ounces sold.
Gross Profit (Q2 FY 2025) $44,800,000, a decrease of 3% from $46,000,000 in Q2 FY 2024. The decrease was due to lower gross profits earned from the Wholesale Sales and Ancillary Services segment, partially offset by an increase in gross profits earned by the DTC segment.
SG&A Expenses (Q2 FY 2025) $25,800,000, an increase of 15% from $22,400,000 in Q2 FY 2024. The increase was primarily due to higher consulting and professional fees, advertising costs, compensation expenses, and facilities expenses.
Depreciation and Amortization Expense (Q2 FY 2025) $4,600,000, an increase of 65% from $2,800,000 in Q2 FY 2024. The increase was primarily due to an increase in amortization expense relating to intangible assets acquired through acquisitions.
Interest Income (Q2 FY 2025) $6,800,000, an increase of 8% from $6,300,000 in Q2 FY 2024. The increase was due to an increase in other finance product income.
Interest Expense (Q2 FY 2025) $10,400,000, an increase of 2% from $10,200,000 in Q2 FY 2024. The increase was primarily due to increased borrowing associated with the trading credit facility and liabilities on borrowed metals.
Net Income (Q2 FY 2025) $6,600,000 or $0.27 per diluted share, a decrease from $13,800,000 or $0.57 per diluted share in Q2 FY 2024. The decrease was attributed to lower gross profit and increased expenses.
Adjusted Net Income (Q2 FY 2025) $13,400,000, a decrease of 38% compared to $21,700,000 in Q2 FY 2024.
EBITDA (Q2 FY 2025) $16,200,000, a decrease of 35% compared to $25,100,000 in Q2 FY 2024.
Cash (End of Q2 FY 2025) $37,800,000, down from $48,600,000 at the end of FY 2024.
Tangible Net Worth (End of Q2 FY 2025) $318,700,000, up from $306,000,000 at the end of the prior fiscal year.
Share Repurchase (Q2 FY 2025) $5,100,000 of common stock repurchased during the quarter.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Acquisition of Spectrum Group International: A Mark entered into a definitive agreement to acquire Spectrum Group International, expanding its presence into premium collectible markets and higher margin luxury markets.
DTC Segment Growth: The DTC segment's average order value increased by 43% to $3,178 in Q2 fiscal 2025.
Expansion in Asia: A Mark is advancing its reach in Asia and has established a DTC presence in Singapore.
Customer Base Growth: The number of new customers in the DTC segment increased by 25% year-over-year to 65,400 in Q2 fiscal 2025.
Facility Expansion: A Mark is nearing completion of its facility expansion and logistics initiatives at AMART Global Logistics in Las Vegas.
Inventory Turn Ratio: The inventory turn ratio improved by 16% to 2.2 in Q2 fiscal 2025.
Focus on M&A Opportunities: A Mark continues to explore various M&A opportunities, indicating a strategic focus on growth through acquisitions.
Diversification Strategy: A Mark aims to diversify its customer base and expand its DTC customer base.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Market Conditions: The company is facing slower market conditions with elevated precious metal prices and subdued demand, which may impact sales and profitability.
Competitive Pressures: Increased competition for higher margin services could depress pricing, affecting overall revenue.
Regulatory Issues: Government regulations, particularly in Asia, may impede growth and expansion efforts.
Supply Chain Challenges: Current problems in national and global supply chains pose risks to the company's operations and ability to meet demand.
Economic Factors: Inflationary pressures may negatively impact the business, affecting costs and consumer demand for precious metal products.
Acquisition Risks: There are risks associated with the proposed acquisition of Spectrum Group International, including potential failure to complete the transaction and higher than anticipated costs.
Integration Risks: The ability to successfully integrate recently acquired businesses poses a risk to achieving projected synergies and growth.
Market Volatility: Changes in the international political climate could affect demand and volatility in the precious metals markets, posing risks to the company's performance.
Consumer Preferences: The company's business model may struggle to adapt to anticipated changes in consumer demand and preferences for precious metals.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Facility Expansion and Logistics Initiatives: A Mark is nearing completion of its facility expansion and logistics initiatives at AMART Global Logistics in Las Vegas.
Acquisition of Spectrum Group International: A Mark entered into a definitive agreement to acquire Spectrum Group International, expanding its presence into premium collectible markets and higher margin luxury markets.
DTC Presence in Asia: A Mark continues to execute plans to advance its reach in Asia, with an established DTC presence in Singapore.
Customer Base Expansion: A Mark is focused on expanding its domestic and geographic reach and diversifying its customer base.
Revenue Expectations: For fiscal Q2 2025, A Mark's revenues increased 32% to $2.742 billion, with expectations of continued growth.
EBITDA Projections: The acquisition of Spectrum Group International is expected to contribute approximately $16 million in EBITDA for 2025.
Dividend Policy: A Mark's Board of Directors has maintained the company's regular quarterly cash dividend program of $0.20 per common share.
Future M&A Activity: A Mark anticipates being active in M&A opportunities in the next 90 days, focusing on accretive deals.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Quarterly Cash Dividend: A Mark's Board of Directors has continued to maintain the company's regular quarterly cash dividend program of $0.20 per common share. The most recent quarterly cash dividend was paid in January, and the next quarterly dividend is expected to be paid in April 2025.
Share Repurchase: A Mark returned capital to shareholders through the repurchase of $5,100,000 of common stock during the quarter.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Greg, could you point out a comparable period of low volatility and elevated gold prices?
A:You would have to go all the way back really to 1980, particularly in silver, where you had a similar phenomena where the flow back into the marketplace was a high percentage or exceeded the demand.
Q:How should we think about the counter cyclicality of the numismatics effort and the wine efforts from the SGI deal?
A:We see opportunities to cross sell more bullion products both to the Stacks customers as well as we believe that our other DTC brands that have focused on straight bullion products.
Q:What’s driving the profitability for Stacks?
A:The first six months are front loaded at Stacks and they had a very good first six months. There is some cyclicality to their business.
Q:Can you talk through how the marketing efforts are progressing and driving volume on your different DTC portals?
A:We are continuing the same strategy we talked about last quarter looking for opportunities to increase our active customer numbers and to also reengage customers that have fallen out.
Q:What kind of led you to believe the acquisition made sense more recently?
A:I think that Stacks has grown alongside AMR operating independently. I do believe that we're getting a very strong balance sheet in the transaction from Stacks.
Q:How accretive is the Stacks deal to your earnings?
A:I think we're comfortable that it's accretive. I don't think I'm comfortable at the moment when we're not closed on the deal really going into how accretive it is.
Q:Are other businesses you're looking at going to have to meet the same threshold for accretiveness?
A:I don't want to do any dilutive deals right now. I don't think I have to.
Q:Can you talk about your ability to pay a dividend, buyback shares and engage in strategic M&A all at the same time?
A:It is a balancing act that we believe that there are opportunities in M&A and as we manage our dividends and as we manage our stock buybacks.
Q:Review of Unclear Management Responses
A:Management appeared to avoid giving a direct answer when asked about the specific accretiveness of the Stacks deal, stating they would provide more specifics after the deal closes.
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
DC
Gibbous Northland
Group CEO
Group Maxim
Group queue
Maxim Group
Roth Capital
SGI
Securities Gibbous
Spectrum
accretiveness
afternoon question
base opportunity
beginning
bullion product
ceiling
coin
collection auction
couple
cyclicality
deal day
effort volume
flexibility
funnel
marketing effort
month period
numismatics
percentage
period number
period ounce
remark CEO
stock
synergy
tariff
transaction
wallet
wine
year
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.
