Executive Summary

Q2 FY25 revenue rose 32% YoY to $2.74B, up 1% QoQ, but gross margin stayed thin at 1.63% and diluted EPS fell to $0.27 (-53% YoY, -27% QoQ), reflecting subdued demand, elevated metal prices, and lower wholesale margins .
Mix shifts were constructive: Direct-to-Consumer (DTC) drove 56% of gross profit (vs 48% YoY) with AOV up 43% YoY to $3,178 and new customers up 25% YoY, partially offsetting wholesale pressure .
Liquidity/capital allocation: Revolving commitment lifted to $457MM; $5.1MM repurchased in Q2; $0.20 quarterly dividend reaffirmed—supportive in a slow premium environment .
Strategic catalyst: Definitive agreement to acquire Spectrum Group International (Stack’s Bowers Galleries/Spectrum Wine) for $92MM (50% cash/50% stock); management expects accretion and higher-margin adjacency; closing targeted within ~30 days (subject to approvals) .
Estimates context: S&P Global consensus was unavailable at query time; comparison to Street estimates could not be assessed (see Estimates Context).

What Went Well and What Went Wrong

What Went Well
- DTC resilience and mix: DTC contributed 56% of consolidated gross profit (vs 48% YoY), with AOV up 43% YoY to $3,178 and new customers +25% YoY, evidencing effective marketing/reactivation and pricing strategy .
- Strategic M&A: Agreement to acquire SGI adds higher-margin numismatics/luxury adjacency and cross-sell into A-Mark’s large DTC base; CEO expects the deal to be accretive and to broaden customers/geography .
- Operating platform progress: AMGL logistics expansion near completion; inventory turns 2.2x in Q2 (+16% YoY), signaling operational efficiency in a slow-demand backdrop .
What Went Wrong
- Margin pressure: Gross margin compressed YoY to 1.63% (vs 2.22%) on lower wholesale gross profit and buyback-heavy flows that squeezed premiums; EBITDA fell 35% YoY to $16.2MM .
- Earnings decline: Diluted EPS fell to $0.27 (-53% YoY; -27% QoQ) and net income declined to $6.6MM on weaker wholesale profitability, higher amortization from LPM/SGB intangibles, equity-method losses, and slightly higher interest expense .
- Emerging macro/tariff headwinds: Management flagged recent tariff-related uncertainties (e.g., metal flows via Mexico/Canada) and increased borrowing costs; elevated spot prices remain a near-term headwind to premiums .

Financial Results

Headline financials (USD)

Metric	Q4 FY2024	Q1 FY2025	Q2 FY2025
Revenue ($B)	$2.525	$2.715	$2.742
Gross Profit ($MM)	$42.97	$43.44	$44.77
Gross Margin (%)	1.70%	1.60%	1.63%
Net Income Attributable ($MM)	$28.64	$8.98	$6.56
Diluted EPS ($)	$1.20	$0.37	$0.27
EBITDA ($MM)	$36.08	$17.78	$16.22

Notes: Q4 FY2024 diluted EPS includes a non-cash remeasurement gain tied to acquiring control of SGB; ex-gain EPS was $0.60 (management disclosure) .

Q2 FY25 change vs prior periods

Metric	YoY vs Q2 FY2024	QoQ vs Q1 FY2025
Revenue	+32%	+1%
Gross Profit	-3%	+3%
Gross Margin (bps)	down to 1.63% from 2.22%	up from 1.60%
Diluted EPS	-53%	-27%
EBITDA	-35%	-9%

Segment mix and contribution

Metric (% of consolidated)	Q4 FY2024	Q1 FY2025	Q2 FY2025
DTC share of Revenue	17%	18%	21%
JMB share of Revenue	15%	11%	11%
DTC share of Gross Profit	51%	54%	56%
JMB share of Gross Profit	42%	37%	38%

Key KPIs

KPI	Q4 FY2024	Q1 FY2025	Q2 FY2025
Gold ounces sold (000s)	448	398	466
Silver ounces sold (MM)	25.421	20.449	21.828
DTC new customers (000s)	570.3	55.3	65.4
DTC active customers (000s)	114.6	129.9	140.1
DTC average order value ($)	2,890	2,967	3,178
JMB average order value ($)	2,639	2,198	2,043
Secured loans (count)	588	562	518
Secured loans receivable ($000s)	113,067	101,887	98,461
CyberMetals AUM ($MM)	7.3	8.3	8.2

Drivers/why: Wholesale margins compressed amid elevated spot prices and net buyback flows dampening premiums (especially in DTC), while amortization from LPM/SGB intangibles, slightly higher net interest expense, and equity-method losses weighed on earnings; DTC mix and AOV increases partly offset .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Quarterly	$0.20	$0.20 reaffirmed; next expected April 2025	Maintained
Trading Credit Facility (revolver)	Current	$422.5MM	$457MM	Raised
Share repurchases	Q2 FY2025	N/A	$5.1MM repurchased	New activity
SGI acquisition (price/structure)	Closing targeted ~30 days	N/A	$92MM (50% cash/50% stock), subject to approvals	New transaction

No quantitative revenue/margin/OpEx/tax guidance provided for Q3/FY25 in the press release or call; focus was on capital allocation and strategic M&A .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY2024, Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Premiums/margins under pressure	Gross margin compressed; slower demand, elevated prices cited	Elevated spot + subdued demand; buybacks a high % of flows, pressuring premiums; wholesale GP down	Still pressured
DTC growth/marketing	Active customers +; AOV improving; SGB consolidation bolstered DTC	DTC GP 56%; AOV $3,178; new customers +25% YoY; reactivation efforts working	Strengthening mix
Asia expansion	Building Singapore trading/DTC presence	Singapore lease signed; build-out starting; focus on HK/Singapore	Advancing
Logistics/AMGL	Automation/expansion progressing	Nearing completion; inventory turns 2.2x (+16% YoY)	Near-term finish
M&A pipeline/SGI	Prior SGB control; active pipeline	SGI deal $92MM; accretion expected; higher-margin adjacency; more domestic M&A likely	Accelerating
Tariffs/macro	—	Tariffs recently increased borrowing costs and created metal flow uncertainty (Mexico/Canada)	Emerging risk

Management Commentary

“Our second quarter results continue to reflect the strength of our fully-integrated platform to perform profitably even with slower market conditions, elevated precious metals prices, and subdued demand.” — CEO Greg Roberts .
“We are nearing the completion of the A-Mark Global Logistics (AMGL) facility expansion and logistics initiatives… executing our plans for advancing our reach in Asia and our DTC presence in Singapore.” — CEO .
On SGI: “This proposed acquisition will expand our presence into the premium collectible markets and the adjacent higher margin luxury markets… cross-selling opportunities and synergies within the A-Mark platform.” — CEO .
“For this fiscal second quarter, our inventory turn ratio was 2.2x, a 16% increase from 1.9x in Q2 of last year.” — President Thor Gjerdrum .
“At the moment, higher gold and silver prices are a headwind… it costs more for us to hold an ounce of gold at $2,800 than at $2,200.” — CEO .

Q&A Highlights

Macro/volatility and premiums: CEO highlighted unprecedented high gold price environment and heavy buyback flows in DTC compressing premiums; referenced historical analogies to 1980 in silver for flow dynamics .
SGI/numismatics and wine adjacency: Management expects accretion and higher margins; Stack’s sizable bullion/numismatic direct sales (~$512MM of $536MM FY24 revenue) supports synergy; noted seasonality (front-half loaded) and major collections (Bruun) underpinning recent strength .
DTC marketing execution: Ongoing reactivation/new customer acquisition programs delivering “very good results” and market share gains through targeted pricing and product .
Asia footprint: No near-term expansion beyond HK/Singapore; signed Singapore lease; focus on staffing/build-out and domestic M&A while Asia matures .
Tariffs/costs and capital allocation: Tariffs raised borrowing costs and created cross-border metal flow uncertainty; capital deployment balanced among M&A, buybacks, inventory, and dividends; priority on accretive deals during slow period .

Estimates Context

Street consensus for Q2 FY2025 (revenue/EPS) via S&P Global was unavailable at query time due to data access limits. As a result, we cannot state beats/misses versus consensus for this quarter based on S&P data. If desired, we can refresh when S&P access restores.

Key Takeaways for Investors

Mix shift offsets: DTC’s rising share of gross profit (56%) and higher AOVs are cushioning wholesale margin pressure from buyback-heavy flows and subdued demand .
Margins still thin: Gross margin is stabilizing QoQ (1.63% vs 1.60%) but well below prior-year (2.22%); EBITDA down YoY with continued wholesale compression and equity-method losses .
Strategic adjacency catalyst: SGI brings higher-margin numismatics/luxury exposure and cross-sell to A-Mark’s DTC base; expected accretive and potentially less correlated to bullion premium cycles once closed .
Operational leverage ahead: AMGL expansion nearing completion and improved inventory turns (2.2x) should support fulfillment efficiency and working capital velocity into improving demand .
Liquidity and capital returns: Revolving commitment increased to $457MM; quarterly dividend maintained; opportunistic buybacks balanced with M&A pipeline .
Watch macro/tariffs: Elevated gold/silver prices remain a near-term headwind to premiums; new tariff framework has increased borrowing costs and created import uncertainty—potential near-term volatility driver .
Near-term catalysts: SGI deal closing and integration updates; Singapore retail/trading build-out; any sign of premium normalization or demand re-acceleration could drive upside to margins .

Citations:

Q2 FY2025 press release and 8-K exhibits, including financials, mix, and KPIs .
8-K furnishing of press release and highlights .
Q2 FY2025 earnings call transcript (prepared remarks and Q&A) .
Q1 FY2025 press release for prior-quarter comps and themes .
Q4 FY2024 preliminary press release for two-quarters-back trend .
SGI acquisition press release (terms, rationale, recent SGI KPIs) .

A-Mark Precious Metals, Inc. (AMRK)·Q2 2025 Earnings Summary