A-Mark Precious Metals Reports Fiscal Second Quarter 2025 Results

Financial Performance - A-Mark Precious Metals reported diluted earnings per share of $0.27 for Q2 FY 2025, with net income of $6.6 million and non-GAAP EBITDA of $16.2 million [1][2][10] - Revenues for the three months ended December 31, 2024, increased by 32% to $2.742 billion compared to $2.079 billion for the same period in 2023 [10][43] - Gross profit for the same period decreased by 3% to $44.8 million, resulting in a gross profit margin of 1.63% [10][44] - Net income attributable to the company decreased by 52% to $6.6 million from $13.8 million in the prior year [10][50] - Adjusted net income before provision for income taxes decreased by 38% to $13.4 million from $21.7 million in the same year-ago quarter [10][51] - EBITDA for the quarter decreased by 35% to $16.2 million from $25.1 million in the same year-ago quarter [10][52] Operational Highlights - Gold ounces sold increased by 4% to 466,000 ounces compared to 450,000 ounces for the same period in 2023, while silver ounces sold decreased by 18% to 21.8 million ounces [32][39] - The number of secured loans at period end decreased by 28% to 518 from 715 as of December 31, 2023 [39][33] - Direct-to-Consumer new customers increased by 25% to 65,400 from 52,500 in the same year-ago quarter [39][32] - Direct-to-Consumer average order value increased by 43% to $3,178 from $2,218 in the same year-ago quarter [39][32] Strategic Developments - A-Mark is nearing the completion of the A-Mark Global Logistics facility expansion and is executing plans to enhance its presence in Asia and Singapore [3][4] - The company has entered into a definitive agreement to acquire Spectrum Group International, which will expand its presence in the premium collectible markets [4][5] - A-Mark amended its Trading Credit Facility to increase its revolving commitment to $457 million from $422.5 million [5] Shareholder Returns - The company reaffirmed its regular quarterly cash dividend policy of $0.20 per share, with the latest dividend paid on January 28, 2025 [1][63] - A-Mark repurchased 169,512 common shares for $5.1 million during the quarter [1][5] Market Position - A-Mark operates through three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending, serving a diverse global customer base [67][68] - The Direct-to-Consumer segment contributed 21% of consolidated revenue in Q2 FY 2025, up from 18% in the same quarter of the previous year [43] - The company is a U.S. Mint-authorized purchaser and has longstanding distributorships with various sovereign mints [68]