A-Mark Precious Metals Q4 Profit Soars

A-Mark Precious Metals(NASDAQ:AMRK) reported fiscal Q4 and full-year 2025 results on September 4, 2025, delivering $17.3 million in net income for the year, with annual revenue of $10.98 billion and gross profit up 22% year-over-year. Management emphasized that recent acquisitions fueled a 90% year-over-year gross profit increase in the fourth quarter, despite persistent market headwinds and sharply elevated operating expenses. Key insights below detail integration progress, risk management challenges, and international strategy advancements with implications for long-term investors.

AMRK gross profit surges from acquired businesses

The fourth quarter saw a 90% year-over-year gross profit increase, reaching $81.7 million, while full-year gross profit rose 22% year-over-year to $210.9 million, despite only a modest 1.3% revenue increase, highlighting the outsized impact of new businesses. The contribution from direct-to-consumer (DTC) and control of Silver Gold Bull (SGB), Spectrum Group International (SGI), Pinehurst Coin Exchange, and AMS Holdings was central to this margin expansion, although selling, general, and administrative (SG&A) expenses more than doubled year-over-year in the fourth quarter.

"Gross profit per Q4 fiscal 2025 increased 90% to $81.7 million or 3.25% of revenue from $43 million or 1.71% of revenue in Q4 of last year. The increase was primarily due to the acquisition of a controlling interest in SGB in June 2024 and the acquisitions of SGI and Pinehurst in February 2025 and AMS in April 2025. For the full fiscal year, gross profit increased 22% to $210.9 million or 1.92% of revenue from $173.3 million or 1.79% of revenue in the prior fiscal year. The increase in gross profit was due to higher profits earned by our direct-to-consumer segment partially offset by lower gross profits earned from our wholesale sales and ancillary services segment."

-- Carrie Dixon, CFO

This exceptional margin improvement validates management’s M&A-centric strategy, but sustaining margin gains will require tight expense discipline and ongoing integration synergies to offset elevated SG&A.

AMRK acquisition integration delivers cost synergies

Non-restricted inventory reached $794.8 million at fiscal year-end, up by $215 million from the prior year, reflecting both increased scale and inventory centralization at the upgraded AMGL Las Vegas hub. Migration of Pinehurst’s logistics from North Carolina and technology automation in Las Vegas were cited as concrete post-acquisition milestones to realize operational leverage and reduce redundancy.

"We have made steady progress bringing Spectrum Group International, AMS Holdings, and Pinehurst Coin Exchange under the A-Mark umbrella. Managing inventory levels and completing automation upgrades at our AMGL facility with centralized operations now in place. We completed the migration of Pinehurst Logistics operations from North Carolina to AMGL in Las Vegas. One example of our cost-saving synergies we expect to achieve from our recent acquisitions. As we continue to progress our integration initiatives, the scale and efficiencies we are achieving will help to optimize expenses, create greater operating leverage, and maintain costs at more optimal levels going forward."

-- Greg Roberts, CEO

By capitalizing on acquired platforms’ operational overlaps, the company can rationalize cost structure, supporting resilience during challenging industry cycles.

Tariff volatility disrupts AMRK risk management and inventory financing

Market uncertainty was exacerbated by U.S. tariff disruptions, which affected both the cost of carrying precious metals inventory and the profitability of the core hedging strategy, leading to contango-to-backwardation curve inversions and product-specific price dislocations. Management cited a $1 per ounce price swing on thousand-ounce silver bars delivered to New York, despite shrinking retail premiums, underscoring risk management complexity in the current regulatory and commodity climate.

"There have been a number of occasions over the last eight to twelve weeks where uncertainty as it relates to where metal should be located to avoid tariffs has disrupted a number of our different places that we borrow metal or where we borrow dollars. And the cost of carry has just been higher for us. I think also the uncertainty just as it relates to what will be taxed or what will be tariffed and what will not, has caused some disruption. In our hedge position, which historically has been a regular contributor to our profitability, and that what we call contango, has had some periods of flipping to backwardation. So that, in general, we get paid to have a short position. And that reduces our carry costs. In a backwardation situation, near-term spot prices are higher than longer-term prices. And, you know, that can negatively affect our profitability."

-- Greg Roberts, CEO

Elevated metal-carrying costs and unpredictable hedging outcomes have increased earnings volatility, making the company more sensitive to geopolitical and policy risks than in stable environments.

Looking Ahead

Management declined to provide explicit fiscal 2026 earnings or margin targets but reiterated confidence in extracting further operating leverage from ongoing acquisition integrations, automation, and cost optimization, especially at the Las Vegas facility. Explicit guidance was absent; however, A-Mark expects its expanded brand portfolio and strengthened position across DTC, luxury, and international markets to support long-term growth and shareholder value. No quantitative forecasts or specific milestones were provided for revenue or EBITDA.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,056%* — a market-crushing outperformance compared to 185% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of September 8, 2025

This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.