Executive Summary
AMark Precious Metals Inc (AMRK) reported QQ1 2025 results characterized by revenue growth driven by higher precious metal prices but with margin pressure and a modest bottom-line outcome. Revenue reached approximately $2.715 billion, up about 9% year over year, while gross profit declined to about $43.4 million (1.6% of revenue) from $49.4 million in the prior-year quarter, reflecting weaker wholesale margins despite gains in the Direct-to-Consumer (DTC) segment. GAAP EBITDA was $24.9 million, with management highlighting a non-GAAP EBITDA near $18 million for the quarter, underscoring the discretionary nature of some costs and acquisitions-related amortization.
The company’s results were framed by a strategically important set of initiatives: continued expansion of the logistics and automation platform, entry into Singapore with DTC capabilities, and the Silver Towne Mint acquisition to bolster minting capacity and premium product offerings. Management signaled a cautiously optimistic view on macro headwinds shifting in the medium term, noting episodic demand improvements and premium strength when spot prices retreat. liquidity was reinforced by a credit facility extension to September 2026 ($422.5 million) and ongoing diversification of liquidity tools. The near-term cash flow remained negative, with operating cash flow of about -$127.5 million and free cash flow of approximately -$128.1 million, illustrating a working-capital-intensive model typical for a physical precious metals merchant. The board sustained a quarterly dividend of $0.20 per share, signaling capital return discipline amid a constructive but still uncertain environment for metals markets.
Key drivers for the coming quarters include: (i) execution of logistics and automation projects to unlock capacity and cost savings; (ii) acceleration of DTC growth and new customer acquisition (55,300 new DTC customers in the quarter, +41% YoY, with 92% of the prior-quarter new customers tied to the SGB acquisition); (iii) continued M&A activity pipeline with expectations of 1–2 deals in the next 90 days; and (iv) preservation of capital flexibility via a diversified liquidity toolkit to weather metal-price volatility. Investors should monitor metal price dynamics, premiums, DTC customer engagement, and progression of the Singapore and minted-product initiatives as key directional indicators for AMRK’s profitability and growth trajectory.
Key Performance Indicators
QoQ: -3.42% | YoY:-38.95%
QoQ: -70.96% | YoY:-52.28%
QoQ: -68.80% | YoY:-51.85%
Key Insights
Revenue: $2.715B in QQ1 2025, up ~9% YoY (9.28% YoY in the metrics table; 7.53% QoQ). Gross profit: $43.4M, gross margin 1.6%, down 12.1% YoY but up vs. prior quarter due to DTC mix (gross margin YoY: -12.07%; QoQ: +8.27%). Operating income: $16.83M, margin ~0.62% (YoY margin -38.95%; QoQ -3.42%). Net income: $8.98M, net margin ~0.33% (YoY margin -52.28%; QoQ -70.96%). EPS: $0.37 on a diluted basis; EPS (GAAP) vs. diluted ended at $0.37; weighted-average shares outstanding ~23.03M (GAAP) and 23....
Financial Highlights
Revenue: $2.715B in QQ1 2025, up ~9% YoY (9.28% YoY in the metrics table; 7.53% QoQ). Gross profit: $43.4M, gross margin 1.6%, down 12.1% YoY but up vs. prior quarter due to DTC mix (gross margin YoY: -12.07%; QoQ: +8.27%). Operating income: $16.83M, margin ~0.62% (YoY margin -38.95%; QoQ -3.42%). Net income: $8.98M, net margin ~0.33% (YoY margin -52.28%; QoQ -70.96%). EPS: $0.37 on a diluted basis; EPS (GAAP) vs. diluted ended at $0.37; weighted-average shares outstanding ~23.03M (GAAP) and 23.98M (diluted). EBITDA: $24.87M (GAAP); non-GAAP EBITDA cited by management at ~$17.8M, down ~41% YoY. Cash flow: net cash from operating activities -$127.5M; free cash flow -$128.1M; cash at period-end $46.92M. Balance sheet: total assets $2.029B; total liabilities $1.364B; total stockholders’ equity $611.1M; cash and cash equivalents $46.92M; inventory $1.278B; current assets $1.645B; current liabilities $0.990B; long-term debt $348.17M; total debt $889.43M; net debt $842.51M. Liquidity: extension of primary credit facility to 2026 with $422.5M committed lines; dividend $0.20 per share quarterly. DTC contributed 18% of revenue in QQ1 2025 vs. 13% in prior-year Q1; JMB contributed 11% vs. 12% in prior-year Q1; new DTC customers and multi-channel growth supported by acquisitions and ongoing M&A activity. Inventory turnover 2.3x; secured loans 562 with a loan portfolio value of $101.9M. Key liquidity metrics include current ratio 1.66 and cash ratio ~0.047, indicating modest liquidity cushion relative to short-term liabilities but supported by reinforced liquidity facilities.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.72B |
9.28% |
7.53% |
| Gross Profit |
43.44M |
-12.07% |
8.27% |
| Operating Income |
16.83M |
-38.95% |
-3.42% |
| Net Income |
8.98M |
-52.28% |
-70.96% |
| EPS |
0.39 |
-51.85% |
-68.80% |
Key Financial Ratios
operatingProfitMargin
0.62%
operatingCashFlowPerShare
$-5.54
freeCashFlowPerShare
$-5.56
dividendPayoutRatio
51.6%
Management Commentary
Key management insights from the QQ1 2025 earnings call:
- Strategy and execution: AMRK reiterated the strength of its integrated platform, noting that it delivered profits even in a slower market and pursued capital structure optimization and capacity expansion: “Our first quarter results reflect the continued strength of our fully integrated platform to deliver profitable results, even during slower market conditions.”
- Growth levers and demand environment: Greg Roberts emphasized marketing investments to acquire new customers and the variability of weekly demand, with premium expansion observed toward the end of September and into October: "we can increase our marketing expenses... when markets are slower... we did see some premium expansion to the positive."; he also noted macro headwinds should shift in the medium term and that the company remains disciplined in capital allocation.
- M&A and strategic positioning: The Silver Towne Mint acquisition is highlighted as a strategic enhancement to minting capabilities and customer reach, with expectations to add ~20 million ounces of struck product annually and to reach a $100 million market for minted products after full integration; leadership signaled a funnel of acquisition opportunities and optimism for 90-day closes.
- Liquidity and capital allocation: The CFO highlighted extending the Trading Credit Facility to Sep-2026 and the diversified liquidity tools, supporting long-term capital needs and ongoing strategic investments.
- Operational metrics and DTC growth: Thor Gjerdrum reported Q1 2025 DTC metrics including 55,300 new customers (+41% YoY) and ~3.1 million total DTC customers by quarter end, with average order value of $2,967 (+22% YoY; +3% QoQ), indicating favorable cross-sell and price realization potential despite softer volumes in Wholesale.
"Our first quarter results reflect the continued strength of our fully integrated platform to deliver profitable results, even during slower market conditions."
— Gregory Roberts
"We executed an extension of our primary credit facility, which provides $422.5 million in committed lines now through September 2026, providing the company with stable long-term access to capital for the business."
— Kathleen Simpson-Taylor
Forward Guidance
AMRK framed a cautiously optimistic long-term outlook, acknowledging persistent macro headwinds but signaling a shift in demand dynamics as premiums stabilize post-peak buybacks. Key forward-looking considerations:
- Liquidity and capital structure: Extended lines through Sep-2026 to support capex, acquisitions, and working-capital needs, reducing funding risk amid metal-price volatility.
- M&A cadence: Active deal funnel with expectations of one to two acquisitions in the next 90 days, aimed at expanding DTC reach and wholesale capabilities, and increasing minted-product capacity via Silver Towne Mint and related assets.
- Market dynamics: Management expects a shift from a headwind to tailwind environment as premiums stabilize and demand recovers, with a focus on maximizing pricing power in a lower-spot-price regime where premiums typically expand.
- Operational execution: Completion of the A-Mark Global Logistics initiative and Singapore DTC expansion in the coming months to enhance cross-border reach and cost efficiencies.
Assessment: The absence of formal numeric guidance is typical for a diversified metals merchant given macro uncertainty. The achievability of management’s near-term growth hinges on: (1) the pace of premium normalization and retail demand recovery, (2) execution and integration success of acquisitions, (3) ongoing capacity expansion and cost savings from logistics automation, and (4) continued access to flexible liquidity. Investors should monitor metal price levels, premiums, DTC onboarding rates, and the progress of Singapore and minted-product initiatives as primary catalysts.