A-Mark Precious Metals(AMRK) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 FY 2025 revenues increased 15% to $3.009 billion from $2.611 billion in Q3 FY 2024[8] - Q3 FY 2025 gross profit rose 18% to $41.0 million compared to $34.8 million in Q3 FY 2024[8] - Q3 FY 2025 net loss attributable to the company was $8.5 million, a decrease of 270% from a net income of $5.0 million in Q3 FY 2024[8] - Q3 FY 2025 diluted loss per share was $(0.36), a 271% decrease from $0.21 in Q3 FY 2024[8] - Non-GAAP adjusted net income for Q3 FY 2025 was $5.7 million, down 50% from $11.6 million in Q3 FY 2024[8] - EBITDA for Q3 FY 2025 decreased 90% to $1.3 million from $12.6 million in Q3 FY 2024[8] - Revenues increased 15% to $3.009 billion from $2.611 billion in the same year-ago quarter[40] - Gross profit increased 18% to $41.0 million, representing 1.36% of revenue, compared to $34.8 million, or 1.33% of revenue, in the same year-ago quarter[41] - Adjusted net income before provision for income taxes decreased 44% to $33.9 million from $60.1 million in the same year-ago period[57] - EBITDA for the nine months ended March 31, 2025 decreased 48% to $35.3 million from $68.2 million in the same year-ago period[58] - Net income attributable to the Company decreased by 81.4% to $6,996, down from $37,606 in the previous year[85] - Basic net income per share dropped by 81.6% to $0.30, compared to $1.63 for the same period in 2024[85] - Net income before provision for income taxes decreased by 83.1% to $8,250, compared to $48,803 in the same period last year[88] - Net income decreased by 85.1% to $5,684 from $38,098 in the previous year[89] Customer Metrics - Direct-to-Consumer new customers increased significantly to 899,600 in Q3 FY 2025 from 56,600 in Q3 FY 2024[12] - Total Direct-to-Consumer customers reached 4,087,100 in Q3 FY 2025, up from 2,496,500 in Q3 FY 2024[12] - Direct-to-Consumer new customers increased 1,489% to 899,600 from 56,600 for the same period last year, with 84% attributable to acquisitions[30] - Direct-to-Consumer average order value increased 45% to $3,084 from $2,133 for the same period last year[30] - Direct-to-Consumer total customers reached 4,087,100, up from 2,496,500 year-over-year[31] - Direct-to-Consumer new customers increased 588% to 1,020,300 from 148,200 for the nine months ended March 31, 2024[43] Expenses and Costs - Selling, general and administrative expenses increased 46% to $33.4 million from $22.9 million in the same year-ago quarter[42] - Selling, general, and administrative expenses increased by 46.2% to $(33,404) for the three months ended March 31, 2025, compared to $(22,854) in the same period of 2024[83] - Selling, general, and administrative expenses rose by 27.8% to $85,775, up from $67,095 in 2024[85] - Interest expense increased 31% to $13.0 million from $9.9 million in the same year-ago quarter[45] - Interest expense increased by 30.7% to $(12,951) for the three months ended March 31, 2025, compared to $(9,907) in the same period of 2024[83] - Interest expense increased by 11.4% to $33,301 from $29,898 in the previous year[89] - Acquisition costs rose by 95.0% to $5,389 from $2,763 year-over-year[88] - Amortization of acquired intangibles increased by 78.6% to $11,658 compared to $6,528 in the previous year[88] - Depreciation expense increased by 32.7% to $2,686 from $2,024 year-over-year[88] Assets and Liabilities - Total current assets increased to $1,757,875 as of March 31, 2025, from $1,442,203 as of June 30, 2024, representing a growth of 21.9%[78] - Total assets reached $2,183,548 as of March 31, 2025, compared to $1,827,820 as of June 30, 2024, indicating an increase of 19.5%[78] - Total liabilities increased to $1,486,677 as of March 31, 2025, from $1,165,964 as of June 30, 2024, reflecting a rise of 27.5%[78] Strategic Acquisitions - The company completed three strategic acquisitions during the quarter, enhancing market position and expanding into higher-margin segments[3] - The company has undertaken recent acquisitions aimed at achieving cost efficiencies and expanding market presence, although specific financial impacts were not detailed[74] - The company noted challenges in integrating recent acquisitions with existing operations, which may affect future performance[74] Cash Flow - For the nine months ended March 31, 2025, net cash provided by operating activities was $85,381, compared to a net cash used of $(21,916) in the same period of 2024[82] - Net cash provided by operating activities for the three months ended March 31, 2025, was $102,839, an increase of 29.0% from $79,751 in 2024[86] - The company experienced a net cash used in investing activities of $(43,461) for the nine months ended March 31, 2025, compared to $(58,508) in the same period of 2024[82] - The cash balance at the end of the period was $114,345, up from $35,167 at the end of the same period in 2024[82] Management Commentary - Management emphasized the importance of reviewing financial information in its entirety, including both GAAP and non-GAAP measures, to assess the company's performance accurately[74] - The company reported an adjusted net income before provision for income taxes, which excludes certain non-recurring items, to provide a clearer view of operational performance[75]