Executive Summary
AMark Precious Metals (AMRK) reported fiscal Q3 2025 revenue of $3.009B, up 14.5% year over year and about 9.7% quarter over quarter. Gross profit rose 18% to $41.0M but margins remained thin at 1.36% for the quarter, reflecting a trading environment historically sensitive to precious metals price dynamics and the mix shift toward higher-volume, lower-margin segments. Notably, the quarter benefited from three strategic acquisitions—Pinehurst Coin Exchange, Spectrum Group International (SGI), and AMS Holding, LLC—with Pinehurst and SGI closing in Q3 and AMS Holding closing just after quarter end, expanding AMRK’s footprint into higher-margin luxury and collectibles as well as bolstering logistics capabilities. Management emphasized ongoing integration benefits and cost efficiencies from these acquisitions as a core driver of long-term value.
The quarter also highlighted a challenging backdrops: tariff-related uncertainty and the emergence of backwardation in early 2025 pressured market liquidity and trading profit. Management cited a return to normalized market conditions following a tariff exemption for precious metals on April 2, 2025, after which contango environments and financing costs began to normalize. The company reiterated its commitment to expanding the DTC channel, leveraging automation in its Las Vegas facility, and scaling its Asian market presence via the LPM platform. While near-term profitability remains pressured by one-time acquisition costs and a pre-existing equity remeasurement loss, AMRK reported solid operating cash flow and a robust liquidity position, supported by a revolving facility and a strengthened balance sheet. The management team remains confident in a longer‑term growth trajectory, supported by a diversified revenue base, ongoing cost optimization, and strategic acquisitions that broaden the portfolio and enhance scale across multiple channels.
Key Performance Indicators
QoQ: -47.04% | YoY:-46.41%
QoQ: -230.31% | YoY:-270.48%
QoQ: -228.57% | YoY:-263.64%
Key Insights
Revenue: $3,009,125,000 in Q3 2025, up 14.50% YoY and 9.73% QoQ. Gross Profit: $41,017,000, up 17.74% YoY but down 8.38% QoQ, Gross Margin: 1.36%. Operating Income: $7,613,000, down 46.41% YoY and down 47.04% QoQ. Net Income: -$8,546,000, down 270.48% YoY and down 230.31% QoQ. EPS: -$0.36 (diluted), YoY -263.64%; QoQ -228.57%. EBITDA: $8,008,000.
Key cash and balance sheet highlights: Cash and cash equivalents ended the quarter at $114.345 million. Net debt stood at $759.834 million, with tota...
Financial Highlights
Revenue: $3,009,125,000 in Q3 2025, up 14.50% YoY and 9.73% QoQ. Gross Profit: $41,017,000, up 17.74% YoY but down 8.38% QoQ, Gross Margin: 1.36%. Operating Income: $7,613,000, down 46.41% YoY and down 47.04% QoQ. Net Income: -$8,546,000, down 270.48% YoY and down 230.31% QoQ. EPS: -$0.36 (diluted), YoY -263.64%; QoQ -228.57%. EBITDA: $8,008,000.
Key cash and balance sheet highlights: Cash and cash equivalents ended the quarter at $114.345 million. Net debt stood at $759.834 million, with total debt of $874.179 million. The revolving credit facility balance was updated to a $467 million commitment. Operating cash flow was $102.839 million for the period, with capex of $2.472 million. Free cash flow is reported as $102.839 million. At period-end, total assets were $2.1835 billion and total stockholders’ equity was $643.552 million. Current ratio was 1.557; quick ratio 0.884; days sales outstanding 3.74; days inventory outstanding 23.03. The DTC channel contributed 19% of quarterly revenue (vs. 13% in the prior-year quarter), and nine-month revenue contribution from DTC was 19% vs. 14% prior year. The DTC customer base expanded meaningfully to approximately 4.1 million total customers by Q3, with 899,600 new customers in the quarter (+1,489% YoY). Inventory turnover was 2.4 in Q3, and secured lending loans totaled 491 at quarter-end with a loan portfolio value of $86.5 million (down 25% YoY). End‑market indicators showed continued volatility, but post-April normalization supported better intra-quarter activity.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.01B |
14.50% |
9.73% |
| Gross Profit |
41.02M |
17.74% |
-8.38% |
| Operating Income |
7.61M |
-46.41% |
-47.04% |
| Net Income |
-8.55M |
-270.48% |
-230.31% |
| EPS |
-0.36 |
-263.64% |
-228.57% |
Key Financial Ratios
operatingProfitMargin
0.25%
operatingCashFlowPerShare
$4.35
freeCashFlowPerShare
$4.35
dividendPayoutRatio
-53.9%
priceEarningsRatio
-17.55
Management Commentary
Strategic acquisitions and integration: Management underscored the execution of Pinehurst Coin Exchange, Spectrum Group International (SGI), and AMS Holding, LLC within the quarter, highlighting projected synergies and expanded footprint in higher-margin luxury segments. Quote: "We capitalized on the softer market conditions to execute three strategic acquisitions: Pinehurst Coin Exchange, Spectrum Group International, which closed during the quarter, and AMS Holding, LLC, which closed just after quarter end." (Greg Roberts)
Market conditions and backwardation: The executives described backwardation as a meaningful headwind in February–March driven by tariff fears, with a pivot to contango after tariff exemptions. Quote: "The last time backwardation was material and affected us was right after the COVID... there was a significant fear that precious metals and bullion would be subject to tariffs. That caused a disruption in the normal contango market." (Greg Roberts)
Operational enhancements and logistics: AMRK highlighted Las Vegas logistics upgrades and automation investments designed to increase throughput while reducing unit costs. Quote: "Our hardware upgrade now complete, we have identified numerous opportunities to drive operational efficiencies... we continue to invest in automation technology in Las Vegas, enabling us to process higher volumes while reducing operational costs." (Greg Roberts)
DTC growth and customer expansion: The company reported dramatic new customer growth in DTC, driving a broadening customer base. Quote: "For the three-month period ended March 31, 2025, approximately 84% and 9% of the new customers were attributable to the acquisitions of Pinehurst and SGI respectively." (Thora Gjerdrum in remarks)
Asia growth and LPM: Management signaled long-term growth opportunities in Asia via wholesale and e-commerce, and progress integrating LPM’s retail and wholesale trading capabilities. Quote: "We are optimistic about the long-term growth opportunities in the Asian markets across wholesale and e-commerce channels and look forward to scaling the LPM brand alongside our other portfolio assets." (Greg Roberts)
"We capitalized on the softer market conditions to execute three strategic acquisitions: Pinehurst Coin Exchange, Spectrum Group International, which closed during the quarter, and AMS Holding, LLC, which closed just after quarter end."
— Greg Roberts
"Our revenues for fiscal Q3 2025 increased 15% to $3 billion from $2.6 billion in the same year ago quarter."
— Kathleen Simpson-Taylor
Forward Guidance
Management commentary emphasizes a gradual normalization of the macro environment and a clear emphasis on accretive acquisitions and cost synergies as primary drivers of profitability. Key themes include: (i) continued integration of Pinehurst, SGI, SGI non-controlling interest, and Spectrum with an expectation of immediate and long-term cost efficiencies; (ii) expansion into higher-margin luxury/collectibles segments and growth in Asia via wholesale and e-commerce channels; (iii) optimization of logistics and automation to handle higher volumes with lower per-unit costs; (iv) maintaining a disciplined capital allocation framework with a focus on acquisitions, then debt management, dividends, and potential buybacks if capital returns are favorable. The company reiterated a regular quarterly dividend of $0.20 per share with the next expected payment in August 2025, signaling ongoing capital return to shareholders while pursuing growth opportunities. Assessment: The guidance is qualitative and contingent on integration progress and market normalization. Achievability hinges on successful integration, sustained new customer growth in DTC, realized cost synergies, and favorable commodity cycles. Investors should monitor: (a) integration milestones and synergy capture from Pinehurst/SGI/Spectrum/AMS Holding; (b) DTC growth and average order value trends; (c) gross margin trajectory as higher-margin acquisitions come online; (d) commodity price volatility and backwardation/ contango dynamics; (e) liquidity position and debt levels given ongoing acquisitions.