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AP

A-Mark Precious Metals, Inc. (AMRK)·Q1 2026 Earnings Summary

Executive Summary

  • Revenue rose 36% year over year to $3.68B and 47% sequentially, with gross profit of $72.9M; however, diluted EPS was $(0.04) on sharply higher SG&A and a larger contingent consideration fair value adjustment .
  • Versus Wall Street consensus, the company delivered a large top-line beat (Q1 revenue $3.68B vs ~$2.67B estimate*) but a significant EPS miss (Q1 diluted EPS $(0.04) vs ~$0.48 estimate*) as premium spreads were tight in July–August and operating expenses climbed post-acquisitions .
  • Management announced a definitive agreement to acquire Monex for $33M cash/stock plus up to $20M earn-out and unveiled a corporate rebrand/NYSE listing under the G-O-L-D ticker in December, both serving as near-term stock catalysts .
  • Demand improved meaningfully after Labor Day with expanding premiums and strong auction activity at Stack’s Bowers; Asia (LPM) contributions strengthened, and logistics automation/centralization progressed, positioning the platform for operating leverage as conditions normalize .

Values retrieved from S&P Global for consensus estimates (*).

What Went Well and What Went Wrong

What Went Well

  • Late-quarter demand pivot: “conditions improved meaningfully after Labor Day…enabled us to deliver $72.9 million in gross profit” and premiums expanded post quarter-end, aiding inventory optimization .
  • DTC mix and auctions: Direct-to-Consumer contributed 71% of Q1 gross profit (vs 54% YoY) with strong Stack’s Bowers summer auctions; JM Bullion AOV up 16% YoY to $2,544 .
  • Strategic expansion: Announced Monex acquisition to deepen DTC and storage, plus rebrand/listing under G-O-L-D; Asia LPM delivered sizable contributions in Q1 .

What Went Wrong

  • Profitability compression: Gross margin fell to 1.98% from 3.25% in Q4; EBITDA down to $14.3M (vs $29.2M in Q4) as premium spreads were “historically tight” in July–August .
  • Expense escalation: SG&A surged to $59.8M (+125% YoY) on compensation, advertising, professional fees, facilities, and bank/credit costs tied to acquisitions; interest expense rose 26% YoY to $12.6M .
  • Headwinds from market structure: Backwardation, tariff uncertainty, and volatile lease/repo rates pressured trading profits and carry costs; management cited these as Q1 headwinds .

Financial Results

MetricQ1 2025 (YoY comp)Q4 2025Q1 2026
Revenue ($USD)$2,715,096,000 $2,512,048,000 $3,680,766,000
Gross Profit ($USD)$43,443,000 $81,689,000 $72,897,000
Gross Margin (%)1.60% 3.252% 1.980%
Net Income Attributable ($USD)$8,984,000 $10,324,000 $(939,000)
Diluted EPS ($)$0.37 $0.41 $(0.04)
Adjusted NI before taxes (non-GAAP, $USD)$14,784,000 $19,163,000 $4,872,000
EBITDA (non-GAAP, $USD)$17,782,000 $29,153,000 $14,301,000

Segment mix (contribution):

Segment MetricQ1 2025Q1 2026
DTC as % of Revenue18% 23%
DTC as % of Gross Profit54% 71%
JMB as % of Revenue11% 8%
JMB as % of Gross Profit37% 21%

Key KPIs (YoY and QoQ):

KPIQ1 2025 (YoY comp)Q4 2025Q1 2026
Gold Ounces Sold398,000 346,000 439,000
Silver Ounces Sold20,449,000 15,664,000 10,391,000
Secured Loans (#, period-end)562 445 424
Secured Loans Receivable ($USD)$101,887,000 $94,037,000 $103,633,000
DTC New Customers55,300 108,900 69,400
DTC Active Customers129,900 170,600 147,300
DTC Total Customers3,122,100 4,196,000 4,265,400
DTC AOV ($)$2,967 $2,443 $3,863
JMB AOV ($)$2,198 $2,415 $2,544
CyberMetals AUM ($USD)$8,300,000 $10,700,000 $13,800,000

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Ordinary Cash DividendQ2 FY26 onward$0.20/sh program in place $0.20/sh; to be declared around quarterly earnings announcements Maintained; timing aligned to earnings
Revenue/Margins/OpEx/OI&E/TaxFY26None providedNone providedN/A (no formal guidance)
Corporate ActionsNear-termN/ARebrand to Gold.com; exchange transfer to NYSE (ticker G-O-L-D) Dec 2 Strategic repositioning
M&ANear-termOngoing evaluationSigned definitive agreement to acquire Monex (purchase price $33M; up to $20M earn-out) Expansion of DTC/storage

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25 and Q4 FY25)Current Period (Q1 FY26)Trend
Premium spreads and demandTight spreads, backwardation, tariff uncertainty pressured profitability (Q3); Q4 still slow/soft environment Demand improved after Labor Day; premiums expanded; strong Sept/Oct activity Improving late-Q1 into Q2
Financing costs/market structureVolatile lease/repo; backwardation episodes; tariff confusion impacted hedges (Q4) Continued volatility; backwardation remains a headwind; managing short book Persistent headwind
DTC strategy and AOVDTC mix rising; AOV strength; acquisitions bolster reach (Q3/Q4) DTC 71% of gross profit; AOV up 30% YoY; Stack’s Bowers auctions strong Strengthening
Asia expansion (LPM)LPM launched retail/wholesale; optimistic on SE Asia (Q3/Q4) LPM delivered sizable contributions in Q1 Accelerating
Integration/automation (AMGL)Vegas facility upgrades near completion; capacity lift (Q4) Consolidated Pinehurst into AMGL; logistics capacity ~100k packages/month Executing/leveraging
M&A appetiteOpportunistic in slow markets; multiple targets (Q3/Q4) Monex acquisition signed; appetite remains for accretive deals Active
Rebrand/listingN/ACorporate rebrand to Gold.com; NYSE G-O-L-D listing Dec 2 New strategic identity
Secured lendingPortfolio dipped in FY25; monitoring demand (Q4) Loans at 424; receivables up QoQ to $103.6M Stabilizing

Management Commentary

  • “While July and August were marked by subdued demand and historically tight premium spreads, conditions improved meaningfully after Labor Day…enabled us to deliver $72.9 million in gross profit” (Greg Roberts) .
  • “Internationally, our move to Asia with LPM has delivered sizable contributions this quarter…traction…is a strong indicator of what’s ahead” (Greg Roberts) .
  • “Continued investments in automation at our fulfillment facility, AMGL, are paying dividends…successfully consolidated Pinehurst’s operations into AMGL…expect additional savings” (Greg Roberts) .
  • On Monex: “By joining forces…we can offer our customers a broader suite of products…and secure vault storage…$630 million in assets under custody” (Michael Carabini) .
  • On rebrand/listing: “Gold.com embodies who we are…we look forward to the official exchange transfer on December 2nd” (Greg Roberts) .

Q&A Highlights

  • M&A appetite: Management remains opportunistic across DTC and collectibles, emphasizes integration progress and SG&A control; Monex expected to add storage fees and a higher-frequency trading customer base .
  • Market dynamics: Discussion of stablecoins/crypto and gold demand; noted central bank buying, emerging U.S. retail interest, and premium expansion at JM Bullion in Sept/Oct .
  • Sustainability: Volatility persists; lease/repo rates and backwardation remain erratic; management cautiously optimistic as September/October trends were strong .
  • Cost synergies: Integration efforts include consolidating operations to Vegas and closing El Segundo office; focus on reducing redundancies and SG&A over time .
  • Logistics capacity: AMGL capable of shipping ~100,000+ packages/month with 1–2 day turnaround; automation provides moat vs. competitors .

Estimates Context

MetricQ1 2025 Estimate*Q1 2025 ActualQ4 2025 Estimate*Q4 2025 ActualQ1 2026 Estimate*Q1 2026 Actual
Revenue ($USD)$2,622,496,000*$2,715,096,000 $2,907,938,500*$2,512,048,000 $2,672,774,500*$3,680,766,000
Primary EPS ($)$0.8140*$0.37 $0.44*$0.6004 $0.4825*$(0.04)
EBITDA ($USD)$30,725,000*$17,782,000 $24,838,670*$29,153,000 $24,293,670*$14,301,000

Interpretation:

  • Q1 FY26 revenue beat by ~$1.01B vs consensus, driven by higher gold volumes, higher average selling prices, DTC mix, and contributions from SGI/Pinehurst/AMS acquisitions; EPS missed as gross margin compressed and SG&A/interest rose following acquisitions and market-structure headwinds .
  • S&P “Primary EPS” actual (0.1718*) differs from GAAP diluted EPS ($(0.04)); management emphasized non-GAAP measures and reconciliations, highlighting depreciation/amortization and contingent consideration adjustments .

Values retrieved from S&P Global for consensus estimates (*).

Key Takeaways for Investors

  • Revenue momentum with late-quarter demand/premium recovery suggests near-term upside as Q2 enters with stronger trends; watch DTC gross profit mix and AMGL throughput for operating leverage .
  • Expect margin volatility: gross margin likely sensitive to lease/repo rates and backwardation; improvement hinges on stable contango and continued premium expansion .
  • Strategic catalysts: Monex acquisition (storage/AUM, brand, loyal base) and NYSE G-O-L-D rebranding increase investor awareness and may expand DTC wallet share .
  • Expense discipline is pivotal: SG&A normalization and integration synergies (Pinehurst into AMGL; centralization) are critical to bridge EPS to consensus over time .
  • Segment mix shift: DTC contribution to gross profit (71%) underscores less reliance on wholesale trading—benefits when retail premiums widen; monitor JM Bullion and Stack’s Bowers trends .
  • Asia optionality: LPM contributions and product access in SE Asia/China add higher-margin avenues; continued traction could diversify earnings drivers .
  • Near-term trading: Favor catalysts (rebrand/Monex) and positive demand trends, but size positions acknowledging continued market-structure risk (rates/backwardation) and operating expense profile .
Notes:
- Non-GAAP definitions and reconciliations provided in the company’s materials **[1591588_0001193125-25-272000_amrk-ex99_1.htm:13]** **[1591588_2b0413c9a95d469988e8c45c6b60843f_16]**.