A-Mark Precious Metals(US:AMRK)2026-02-06 21:47Company Overview - The Company changed its name to Gold.com, Inc. and transferred its listing to the New York Stock Exchange under the symbol "GOLD" as of December 2, 2025[285]. - The Company expanded its product portfolio in February 2025 through the acquisition of SGI, which is the parent company of Stack's Bowers Galleries, a leading auction house[295]. - The Company acquired Pinehurst Coin Exchange, Inc. in February 2025, enhancing its position as a leading e-commerce retailer of modern and numismatic coins[294]. - The Company operates a joint venture with Stack's Bowers Galleries and Pinehurst to acquire a 10% interest in AMS, later acquiring the remaining 90%[305]. Financial Performance - The Company reported revenues of $11.0 billion for fiscal year 2025, indicating significant growth in the bullion and coin markets[311]. - Revenues for the three months ended December 31, 2025 increased by $3.735 billion, or 136.2%, to $6.477 billion from $2.742 billion in 2024[349]. - Revenues for the six months ended December 31, 2025 increased by $4.700 billion, or 86.1%, to $10.158 billion from $5.457 billion in 2024[352]. - The company attributed revenue increases to higher average selling prices and acquisitions of SGI, Pinehurst, and AMS in 2025[349]. - Revenues for the Wholesale Sales & Ancillary Services segment for the three months ended December 31, 2025 were $4,887.97 million, a 124.9% increase from $2,173.34 million in 2024[382]. - Revenues for the six months ended December 31, 2025 increased by $3.305 billion, or 75.1%, to $7.705 billion from $4.400 billion in 2024[396]. Sales and Volume Metrics - Gold ounces sold for the three months ended December 31, 2025 increased by 79,000 ounces, or 17.0%, to 545,000 ounces from 466,000 ounces in 2024[350]. - Silver ounces sold for the three months ended December 31, 2025 decreased by 3,193,000 ounces, or 14.6%, to 18,635,000 ounces from 21,828,000 ounces in 2024[350]. - Gold ounces sold for the six months ended December 31, 2025 increased by 120,000 ounces, or 13.9%, to 984,000 ounces from 864,000 ounces in 2024[353]. - Silver ounces sold for the six months ended December 31, 2025 decreased by 13,251,000 ounces, or 31.3%, to 29,026,000 ounces from 42,277,000 ounces in 2024[353]. - The number of new customers increased by 30,700, or 46.9%, to 96,100 from 65,400 in 2024[428]. - The number of active customers increased by 89,000, or 63.5%, to 229,100 from 140,100 in 2024[428]. - Total customers increased by 1,174,000, or 36.8%, to 4,361,500 from 3,187,500 as of December 31, 2024[428]. Pricing and Margins - Average selling prices for gold increased by 50.6% and for silver increased by 67.2% during the three months ended December 31, 2025 compared to the prior year[350]. - The overall gross margin percentage for the three months ended December 31, 2025 decreased by 19.0 basis points to 1.442% from 1.632% in 2024, but excluding forward sales, it increased by 58.4 basis points to 3.072%[356]. - The profit margin percentage for the six months ended December 31, 2025 decreased by 34.4 basis points to 0.559% from 0.903% in 2024[405]. Expenses and Costs - Selling, general, and administrative expenses for the three months ended December 31, 2025 increased by $34.0 million, or 132.1%, to $59.8 million from $25.8 million in 2024[361]. - Selling, general, and administrative expenses for the six months ended December 31, 2025 increased by $67.2 million, or 128.4%, to $119.6 million from $52.4 million in 2024[362]. - Interest expense for the three months ended December 31, 2025 increased by $5.9 million, or 56.8%, to $16.3 million from $10.4 million in 2024[369]. - Interest expense for the six months ended December 31, 2025 increased by $8.5 million, or 41.8%, to $28.9 million from $20.4 million in 2024[370]. Cash Flow and Financing - Net cash provided by operating activities for the first half of 2025 was $152,795,000, a significant increase of 975.2% compared to $(17,458,000) in the first half of 2024[469]. - The company’s total lines of credit decreased to $300,000,000 as of December 31, 2025, down from $345,000,000 in June 2025[475]. - Cash generated from operations is primarily derived from sales and financing of precious metals products, with approximately 87% of assets being liquid as of December 31, 2025[471]. Market Conditions and Strategy - The Company operates in a high volume/low margin industry, with revenues influenced by product volume, market prices, and market volatility[320]. - Macroeconomic volatility has positively affected the Company's trading revenues and gross profit, with increased demand for products during high volatility periods[339]. - The Company focuses on enhancing its business through strategic investment opportunities, geographic expansion, and complementary products and services[311]. Other Financial Metrics - The Company utilizes non-GAAP measures such as adjusted net income before provision for income taxes and EBITDA to analyze financial performance[290]. - EBITDA for Q4 2025 was $33,879,000, representing a 108.8% increase from $16,224,000 in Q4 2024[468]. - Adjusted net income before provision for income taxes (non-GAAP) for Q4 2025 was $23,216,000, reflecting a 73.7% increase from $13,363,000 in Q4 2024[461].