A-Mark Profit Jumps 90% in Fiscal Q4

Key Points

• Diluted earnings per share dropped to $0.41 from $1.29 in the prior year period, reflecting a 68.2 % decline.

• Gross profit for Q4 FY2025 increased 90% to $81.7 million, with gross margin reaching 3.25%, driven by recent acquisitions and integration efforts.

• Revenue decreased 1% to $2.51 billion, down 1% from the year-ago period, amid continued softness in gold and silver sold.

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A-Mark Precious Metals (NASDAQ:AMRK), a fully integrated precious metals trading and logistics company, reported results for its fiscal fourth quarter ended June 30, 2025 on September 10, 2025. The most significant news from this earnings release was a sharp year-over-year decline in net income and diluted earnings per share. Despite a substantial increase in gross profit, revenue showed little change. The quarter reflected the financial effects of its recent acquisition strategy, as well as the continued challenges in physical metals volumes. Overall, the quarter revealed increasing integration and consolidation activity but continued pressure on bottom-line profitability.

Business Overview and Strategic Focus

A-Mark Precious Metals is a global player in precious metals trading, distribution, logistics, minting, storage, hedging, and lending. Its business spans the value chain, serving both wholesale customers such as sovereign mints and refiners, as well as retail customers through consumer-facing brands.

Recently, the company has focused on growing its direct-to-consumer (DTC) business, expanding through major acquisitions, and consolidating logistics and distribution. Critical success factors include effective vertical integration, a diverse global customer base, and the ability to manage price volatility in commodity markets through hedging. The ability to absorb and integrate newly acquired companies efficiently is also central to its current direction.

Quarter Highlights: Financial and Operational Developments

Revenue remained stable year over year. However, A-Mark delivered a significant jump in gross profit and margin, with the figure almost doubling compared to the prior year quarter. This improvement primarily came from the impact of integrating several acquisitions, including Spectrum Group International, AMS Holding, Pinehurst Coin Exchange, and SGB. Management stated that the company completed the migration of logistics operations following the Pinehurst acquisition, a step expected to drive cost savings over time, though full cost benefits are not yet visible in financial results.

The DTC segment accounted for 26% of revenue, up from 17 % in the prior year, and contributed 63% of gross profit. This shift in business mix shows early results from acquisition and integration, as the company moves further up the value chain and reduces reliance on purely wholesale trading and the formerly dominant JM Bullion (JMB) brand. JMB accounted for a smaller share of gross profit—20% versus 42% in the prior year.

Despite these positive operational changes, sales volumes for key products fell. Gold ounces sold declined 23% from the prior year, and silver ounces sold fell 38%. The average order value for DTC transactions also declined 15% year over year. Management attributed the drop in metal volumes to subdued demand and elevated levels of customer reselling, as investors took advantage of high spot prices rather than making new purchases. Although DTC’s customer base grew 49% to 170,600 active customers, a sharp decrease in new customer additions reflected exceptional one-time gains in the prior year.

The company’s cost structure changed notably. Selling, General & Administrative (SG&A) expenses rose 135% to $53.4 million, outpacing gains in gross profit. Depreciation and amortization expense grew 201% to $8.6 million, mainly due to newly acquired intangible assets. Interest expense rose 34% to $12.9 million. Share repurchases and dividend payments both decreased compared to the prior year, corresponding with higher investment in acquisitions and integration.

What Drives the Business: Segments, Products, and Strategy

The company’s business includes precious metal trading, direct sales to consumers, and operation of multiple brands and platforms. Its DTC operations connect retail customers directly to gold, silver, and other precious metal products, offering coins, bars, and collectibles online. The DTC segment is now central to growth, contributing the bulk of gross profit despite challenging market conditions.

On the wholesale side, A-Mark continues to provide trading, storage, financing, and distribution for institutional customers and mints. Products include coins, bars, and fabricated metals made through its minting operation. Its ability to hedge commodity price fluctuations through futures and forwards is a key factor allowing the business to function independently of broad-based price swings in gold and silver. This hedging is designed to protect margins, especially in volatile periods.

Forward Outlook and Investor Considerations

Management did not provide specific financial guidance for the upcoming quarter or fiscal 2026 in this earnings release. Leadership commented that ongoing integration of acquisitions and further automation of logistics are likely to optimize expenses and create leverage, but cautioned that margin trends remain pressured and market conditions continue to evolve.

Investors should be aware of several areas heading into the next period. Net income and margins face continued pressure due to higher operating costs, step-up amortization of newly acquired intangible assets, and softness in demand for physical precious metals. While the company points to early signs of cost synergy from centralization and automation, it has not yet fully offset these higher expenses. No clear timeline or quantified forecast was offered for when these synergies will be fully realized, and management's cautious tone about market uncertainty reflects ongoing challenges.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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