In This Article:
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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A-Mark Precious Metals Inc (NASDAQ:AMRK) reported a 15% increase in revenues for fiscal Q3 2025, reaching $3 billion, driven by higher average selling prices of gold and silver.
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The company successfully executed three strategic acquisitions, including Pinehurst Coin Exchange, Spectrum Group International, and AMS Holdings LLC, strengthening its competitive position.
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Gross profit for fiscal Q3 2025 increased by 18% to $41 million, with the DTC segment contributing significantly to this growth.
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A-Mark Precious Metals Inc (NASDAQ:AMRK) expanded its customer base significantly, with the number of new customers in the DTC segment increasing by 1,489% year-over-year.
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The company has made significant progress in automation technology at its Las Vegas facility, which is expected to drive operational efficiencies and reduce costs.
Negative Points
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A-Mark Precious Metals Inc (NASDAQ:AMRK) faced trading losses and higher interest expenses due to market volatility and backwardation, impacting financial performance.
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Net loss attributable to the company for Q3 2025 was $8.5 million, compared to net income of $5 million in the same quarter last year.
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Interest expense increased by 31% to $13 million in fiscal Q3 2025, primarily due to product financing arrangements and liabilities on borrowed metals.
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The company experienced a decrease in gold and silver ounces sold, with gold sales down 3% and silver sales down 39% year-over-year.
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Selling, general, and administrative expenses increased by 46% to $33.4 million, driven by higher consulting fees, acquisition costs, and compensation expenses.
Q & A Highlights
Q: In April, gold and silver prices saw some volatility. Can you discuss what you've observed in the market so far this quarter? A: We observed increased activity post-April 2nd, which was encouraging after the previous quarter's challenges. The first few weeks of April were particularly active, although activity has slowed slightly in recent weeks. Overall, April was a solid month for us. - Greg Roberts, CEO
Q: You've recently expanded into the collectible space. Can you provide an update on the progress and outlook for this segment? A: We've successfully integrated the SGI and Pinehurst acquisitions, and the collectible market, particularly through our Stax Bowers division, has been active with impressive auction demand. While historically driven by precious metal prices, we're pleased with the current demand and execution in the collectible space. - Greg Roberts, CEO