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AP

A-Mark Precious Metals, Inc. (AMRK)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY25 printed a revenue beat but an EPS/EBITDA miss: revenue rose 15% year over year to $3.009B and 10% sequentially, while diluted EPS was $(0.36) and EBITDA was $1.3M amid tariff-driven backwardation and higher financing costs .
  • Versus S&P Global consensus, revenue beat ($3.009B vs $2.664B*) but EPS and EBITDA missed ($(0.36) vs $0.46* EPS; $1.3M vs $22.5M* EBITDA), primarily due to trading losses, higher product financing rates, acquisition-related costs, and a $7.0M remeasurement loss on Pinehurst .
  • Management executed on strategy under softer markets: closed Pinehurst and SGI in-quarter and AMS just after, reaffirmed a $0.20 quarterly dividend, and amended the revolving credit facility to $467M to support integration and optimization .
  • Near-term narrative drivers: tariff clarity post April 2 moved markets back toward contango, early April activity improved, and logistics/automation initiatives in Las Vegas are poised to lift capacity and lower SG&A as acquisitions integrate .

What Went Well and What Went Wrong

What Went Well

  • Closed three strategic acquisitions (Pinehurst, SGI, and AMS post-quarter), expanding into higher-margin luxury/collectibles and broadening DTC reach; integration underway at AMGL to drive efficiencies .
  • Revenue growth and mix shift toward DTC: Q3 revenue +15% YoY to $3.009B with DTC at 19% of revenue and 61% of gross profit, reflecting stronger retail economics despite wholesale softness .
  • Operational progress: Las Vegas automation enabling materially higher package throughput without more headcount; LPM now running retail and wholesale trading in Asia, positioning for future growth .

What Went Wrong

  • EPS and EBITDA miss: diluted EPS $(0.36) vs consensus $0.46*, EBITDA $1.3M vs $22.5M*; pressures from backwardation (paying to be short), trading losses, and higher financing rates .
  • One-time and integration costs: $4.6M acquisition costs and a $7.0M Pinehurst remeasurement loss weighed on GAAP results; non-GAAP adjusted pre-tax income fell 51% YoY to $5.7M .
  • Volume headwinds in silver and secured lending: silver ounces sold down 39% YoY; secured loans outstanding fell to 491 from 675 YoY, pressuring segment profitability despite revenue uplift .

Financial Results

Quarterly comps vs prior year, prior quarter, and consensus

MetricQ3 2024Q2 2025Q3 2025YoY ΔQoQ Δvs Consensus
Revenue ($USD Billions)$2.611 $2.742 $3.009 +15% +10% $2.664* → Beat
Diluted EPS ($)$0.21 $0.27 $(0.36) ↓ 271% ↓ 233% $0.46* → Miss
Gross Profit ($USD Millions)$34.8 $44.8 $41.0 +18% −8% N/A
Gross Margin (%)1.33% 1.63% 1.36% +3 bps −27 bps N/A
Adjusted pre-tax income ($USD Millions)$11.6 $13.4 $5.7 −50% −57% N/A
EBITDA ($USD Millions)$12.6 $16.2 $1.3 −90% −92% $22.5* → Miss

Estimates marked with * are Values retrieved from S&P Global.

Segment/mix highlights

MetricQ3 2024Q3 2025
DTC share of revenue (%)13% 19%
JMB share of revenue (%)12% 10%
DTC share of gross profit (%)52% 61%
JMB share of gross profit (%)45% 40%

KPIs

KPIQ3 2024Q2 2025Q3 2025
Gold ounces sold446,000 466,000 432,000
Silver ounces sold25,722,000 21,828,000 15,702,000
Secured loans (count)675 518 491
Secured loans receivable ($)$115,645,000 $98,461,000 $86,512,000
DTC new customers56,600 65,400 899,600
DTC active customers126,000 140,100 140,700
DTC total customers2,496,500 3,187,500 4,087,100
DTC AOV ($)$2,133 $3,178 $3,084
JMB AOV ($)$2,003 $2,043 $1,994
CyberMetals AUM ($)$6,800,000 $8,200,000 $9,700,000

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Regular quarterly dividendFY25 / Q3 timeframe$0.20 per share quarterly (reaffirmed in prior quarters) Reaffirmed $0.20 per share quarterly; next expected Aug 2025 Maintained
Revolving credit facility commitmentFY25 Q2$457M (amended) $467M (amended) Raised

Earnings Call Themes & Trends

TopicQ1 2025 (prior)Q2 2025 (prior)Q3 2025 (current)Trend
Tariffs / market structureNo specific tariff disruption noted; focus on platform resilience and Singapore expansion Still slower demand; focus on logistics expansion and M&A (SGI agreement) Early-quarter tariff uncertainty drove backwardation, trading losses; post Apr 2 tariff clarity, markets normalizing toward contango Improving post-clarity
Logistics/automation (AMGL Las Vegas)Expansion and automation to increase capacity in coming months Nearing completion; expected efficiencies and cost savings Hardware upgrades complete; automation to lift throughput 50–75% without more headcount Execution advancing
DTC/customer base growthDTC share rising; SGB consolidation adds customers DTC share at 21%; steady growth in metrics DTC at 19% of revenue, 61% of GP; total customers ~4.1M boosted by Pinehurst/SGI Scale-up via M&A
Collectibles strategy (SGI/Stack’s Bowers)Regency Mint assets enhance minting; initial Asia/DTC pushes SGI definitive agreement announced SGI closed; strong April auctions at Stack’s Bowers Integration bearing fruit
Capital allocation (dividend/buybacks/M&A)Dividend reaffirmed; facility extended Dividend reaffirmed; buybacks; facility raised to $457M Dividend reaffirmed; facility at $467M; continued M&A pipeline; flexible on buybacks Capacity enhanced

Management Commentary

  • “Early-quarter concerns around tariffs led to decreased market liquidity and backwardation, contributing to trading losses and higher interest expense... Despite these headwinds... we delivered $41.0 million in gross profit, $5.7 million in non-GAAP adjusted net income and $1.3 million in non-GAAP EBITDA.” — CEO Greg Roberts .
  • “We capitalized on the softer market to complete three strategic acquisitions... These acquisitions strengthen our market position and broaden our reach into adjacent, higher-margin luxury segments.” — CEO Greg Roberts .
  • “Our Las Vegas facility... automation... allows us to process higher volumes while reducing operational costs.” — CEO Greg Roberts .
  • “Adjusted net income before provision for income taxes... decreased... primarily due to lower net income before provision for income taxes... contingent consideration fair value adjustment... partially offset by exclusion of higher acquisition costs... higher amortization... and the remeasurement loss...” — CFO Kathleen Simpson-Taylor .

Q&A Highlights

  • April activity update: Post-April 2 tariff clarity, early April saw elevated customer activity vs Q3 run-rate, though it moderated later; overall April was solid .
  • Backwardation mechanics: Tariff uncertainty flipped contango to backwardation, causing A-Mark to pay to be short, pressuring trading revenue and GP; conditions normalizing back to contango post-April 2 .
  • Earnings power in gold-led cycle: Historically stronger margins in silver; recent gold-dominated market still supported earnings, but retail silver demand remains muted; volatility and equity risk-off can boost PM demand .
  • Acquisitions outlook: Preference to buy when markets are slow; pipeline remains active; enlarged DTC customer base positions company to outperform when margins recover .
  • Capital allocation: Flexible across inventory reduction, interest expense, dividends, buybacks, and M&A; focus near term on integrating acquisitions while remaining opportunistic on buybacks .

Estimates Context

MetricQ1 2025 Consensus*Q1 2025 ActualQ2 2025 Consensus*Q2 2025 ActualQ3 2025 Consensus*Q3 2025 Actual
Revenue ($USD Billions)$2.622*$2.715 $2.378*$2.742 $2.664*$3.009
Primary EPS ($)$0.814*$0.37 $0.572*$0.27 $0.455*$(0.36)
EBITDA ($USD Millions)$30.7*$17.8 $26.0*$16.2 $22.5*$1.3
# of Rev ests5*—5*—4*—
# of EPS ests5*—5*—4*—

Estimates marked with * are Values retrieved from S&P Global.

Implication: Street models underappreciated the magnitude of Q3’s trading/financing headwinds and one-time items; revenue resilience (helped by higher average selling prices) and DTC mix didn’t flow through to EPS/EBITDA given market structure and cost dynamics .

Key Takeaways for Investors

  • Near-term setup: Revenue resilient with improved post-April activity, but EPS/EBITDA remain sensitive to market structure (contango/backwardation) and financing rates; trading conditions normalized should alleviate headwinds .
  • DTC scale and mix: DTC contributed 61% of Q3 gross profit and 19% of revenue; acquisitions materially expanded customer base (~4.1M total), supporting medium-term margin potential as premiums recover .
  • Integration/efficiency: AMGL automation and centralized operations should drive SG&A leverage and throughput (+50–75% packages without added headcount), a key margin lever as volume returns .
  • Capital flexibility: Dividend maintained; revolving capacity lifted to $467M, providing liquidity to integrate M&A and pursue opportunities; buybacks remain a tool contingent on ROI vs M&A .
  • Silver vs gold dynamic: Margins historically stronger in silver; watch for demand revival and premium expansion; current gold-led cycle can support activity but may cap margin mix until silver recovers .
  • One-time items rolling off: Acquisition costs and Pinehurst remeasurement loss depressed GAAP in Q3; non-GAAP reconciliations help normalize view, suggesting EPS/EBITDA recovery potential with market normalization .
  • Catalysts: Continued normalization to contango, integration synergies (SGI/Pinehurst/AMS), Asia expansion via LPM, and logistics automation could re-rate margins; monitor quarterly gross margin progression and DTC KPIs .