A-Mark Precious Metals Reports Fiscal First Quarter 2026 Results and Announces Definitive Agreement to Acquire Monex Precious Metals, a Leading DTC Brand

Core Insights - A-Mark Precious Metals, Inc. reported its fiscal first quarter results for the period ending September 30, 2025, and announced a definitive agreement to acquire Monex Deposit Company, a major direct-to-consumer precious metals dealer in the U.S. [1][3] Acquisition Details - The acquisition of Monex is valued at $33 million, comprising $19 million in cash and $14 million in A-Mark common stock, with a holdback of 29% of the common stock for potential indemnification claims. An additional deferred purchase price of up to $20 million is contingent on achieving specified pre-tax income levels [5][3]. - Monex generated total revenue of $835 million in 2024 and held $630 million in assets under custody as of September 30, 2025, enhancing A-Mark's direct-to-consumer presence and operational synergies [2][3]. Financial Performance - A-Mark's revenues for the first quarter of fiscal 2026 increased by 36% to $3.68 billion compared to $2.72 billion in the same quarter of the previous year, and by 47% from $2.51 billion in the prior quarter [11][26]. - Gross profit rose 68% to $72.9 million, with a gross profit margin of 1.98%, up from 1.60% in the same quarter last year [11][27]. - The company reported a net loss of $0.9 million, a significant decrease from a net income of $9.0 million in the same quarter of the previous year [17][33]. Operational Highlights - Gold ounces sold increased by 10% to 439,000 ounces, while silver ounces sold decreased by 49% to 10.4 million ounces compared to the same quarter last year [29][11]. - The Direct-to-Consumer segment contributed 23% of consolidated revenue in the first quarter of fiscal 2026, up from 18% in the same quarter of the previous year [26][27]. Cost Management - Selling, general and administrative expenses surged by 125% to $59.8 million, primarily due to increased compensation, advertising, and consulting costs, reflecting the integration of recent acquisitions [28][27]. - Depreciation and amortization expenses increased by 61% to $7.6 million, driven by amortization related to acquired intangible assets [30][11]. Market Position - A-Mark operates through three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending, with a diverse customer base including mints, manufacturers, and retail customers [38][40]. - The company is well-positioned to leverage its integrated platform and expand its market share in the precious metals industry following the acquisition of Monex [3][4].