A-Mark Precious Metals(AMRK) - 2025 Q4 - Annual Results

Financial Performance - Q4 FY 2025 revenues decreased 1% to $2.51 billion from $2.52 billion in Q4 FY 2024 and decreased 17% from $3.00 billion in Q3 FY 2025[10] - Q4 FY 2025 gross profit increased 90% to $81.7 million from $43.0 million in Q4 FY 2024 and increased 99% from $41.0 million in Q3 FY 2025[10] - Q4 FY 2025 net income decreased 67% to $10.3 million from $30.9 million in Q4 FY 2024, but increased 221% from a net loss of $8.5 million in Q3 FY 2025[10] - FY 2025 revenues increased 13% to $10.98 billion from $9.70 billion in FY 2024, with a 15% increase excluding forward sales[12] - FY 2025 gross profit increased 22% to $210.9 million from $173.3 million in FY 2024[12] - FY 2025 net income decreased 75% to $17.3 million from $68.5 million in FY 2024[12] - FY 2025 diluted earnings per share totaled $0.71, a 75% decrease compared to $2.84 in FY 2024[12] - Adjusted net income for FY 2025 decreased 34% to $53.1 million from $80.3 million in FY 2024[12] - EBITDA for FY 2025 decreased 40% to $64.4 million from $106.5 million in FY 2024[12] - Revenues for the fiscal fourth quarter 2025 decreased 1% to $2.51 billion, but increased 5% excluding a $94 million decrease in forward sales[37] - Gross profit increased 90% to $81.7 million, representing 3.25% of revenue, primarily due to acquisitions made in 2024 and 2025[38] - Revenues for the year ended June 30, 2025, increased to $10,978,614, representing a 13.2% growth from $9,699,039 in 2024[79] - Gross profit for the same period was $210,916, up from $173,255 in 2024, indicating a significant improvement in profitability[79] - Net income attributable to the Company decreased to $17,320 from $68,546 in 2024, reflecting a decline of 74.7%[79] - Revenues for the three months ended June 30, 2025, were $2,512,048, a decrease of 0.5% from $2,524,955 in the same period of 2024[82] - Gross profit for the three months ended June 30, 2025, was $81,689, representing a 90.1% increase from $42,971 in 2024[82] - Net income attributable to the Company for the three months ended June 30, 2025, was $10,324, a decrease of 66.6% from $30,940 in 2024[82] - Basic net income per share for the three months ended June 30, 2025, was $0.42, down 68.9% from $1.35 in 2024[82] - Net income before provision for income taxes decreased by 74.3% from $82,778,000 in 2024 to $21,270,000 in 2025[87] Customer Metrics - Gold ounces sold decreased 23% to 346,000 ounces from 448,000 ounces for the same period last year[28] - Silver ounces sold decreased 38% to 15.7 million ounces from 25.4 million ounces for the same period last year[28] - Direct-to-Consumer new customers decreased 81% to 108,900 from 570,300 for the same period last year[28] - Direct-to-Consumer active customers increased 49% to 170,600 from 114,600 for the same period last year[28] - Direct-to-Consumer average order value decreased 15% to $2,443 from $2,890 for the same period last year[28] - JM Bullion's average order value decreased 8% to $2,415 from $2,639 for the same period last year[28] - Direct-to-Consumer total customers increased to 4,196,000 from 3,066,800 for the same period last year[29] - The number of CyberMetals total customers increased to 37,000 from 29,600 for the same period last year[29] - Direct-to-Consumer new customers increased 57% to 1,129,200, with 79% attributed to recent acquisitions[40] Expenses and Liabilities - Selling, general, and administrative expenses rose 135% to $53.4 million, driven by increased compensation and advertising costs[39] - Interest expense increased 17% to $46.2 million, primarily due to increased borrowings and product financing arrangements[53] - Current liabilities rose to $1,114,128, compared to $883,770 in 2024, marking a 26.1% increase[77] - The Company reported a net cash used in investing activities of $104,665 for the year ended June 30, 2025, compared to $63,597 in 2024[81] - Interest expense increased by 33.9% to $12,902 for the three months ended June 30, 2025, compared to $9,633 in 2024[85] Cash Flow and Assets - Cash reserves increased to $77,741 from $48,636 in 2024, showing a growth of 60.0%[77] - Total assets as of June 30, 2025, reached $2,215,431, a 21.2% increase from $1,827,820 in 2024[77] - Net cash provided by operating activities for the year ended June 30, 2025, was $152,347, compared to $60,934 in 2024[81] - The Company had a net increase in cash of $29,105 for the year ended June 30, 2025, compared to $9,318 in 2024[81] - Net cash provided by operating activities decreased by 19.2% to $66,966, compared to $82,850 in the same period last year[86] Strategic Focus - The company is focused on integrating recent acquisitions to optimize expenses and enhance operational leverage[4] - The Company is focused on optimizing expenses and enhancing operating leverage to drive future growth[70] - A-Mark continues to explore acquisition opportunities to expand its market presence and enhance its service offerings[70]