A-Mark Precious 2025 Q3 Earnings Misses Targets as Net Income Declines 269%

A-mark Precious (AMRK) reported its fiscal 2025 Q3 earnings on May 12th, 2025. A-Mark Precious Metals missed its earnings expectations for Q3 2025. The company reported a net loss of $8.71 million, a significant drop from a net income of $5.15 million in the previous year’s corresponding quarter. The company anticipates modest improvement in market conditions going forward, supported by its strategic acquisitions and expanded brand portfolio. A-Mark expects revenue growth and aims to maintain its quarterly cash dividend of $0.20 per share, showing confidence in its strategic execution for the future.

Revenue
Total revenue for A-Mark Precious increased by 15.3%, reaching $3.01 billion in Q3 2025 compared to $2.61 billion in Q3 2024. The Wholesale Sales & Ancillary Services segment, after netting out eliminations, contributed $2.44 billion, while the Direct-to-Consumer segment generated $574.09 million, culminating in the overall revenue figure of $3.01 billion.

Earnings/Net Income
A-Mark Precious transitioned from a profit of $0.22 per share in Q3 2024 to a loss of $0.36 per share in Q3 2025, marking a substantial 263.6% decline. The company reported a net loss of $8.71 million for Q3 2025, a 269% decline from the $5.15 million net income recorded in Q3 2024. This performance indicates challenges in maintaining earnings per share.

Price Action
The stock price of A-Mark Precious has edged down 1.93% during the latest trading day, has tumbled 9.22% during the most recent full trading week, and has dropped 4.50% month-to-date.

Post-Earnings Price Action Review
A-Mark Precious Metals has historically shown strong post-earnings performance when revenue exceeds expectations, with a 30-day holding strategy yielding a return of 177.51%, significantly outpacing a benchmark return of 95.08%. However, this strategy carries considerable risk, as evidenced by its low Sharpe ratio of 0.44, reflecting modest risk-adjusted returns. The maximum drawdown of -58.62% during the backtest period underscores the strategy's volatility and potential concerns for risk-averse investors. This suggests that while the strategy can provide high returns, it also involves substantial risk, which investors must carefully consider when evaluating their investment approach.

CEO Commentary
Greg Roberts, CEO of A-Mark Precious Metals, highlighted that the company's third-quarter results reflect performance amid volatile market conditions, with challenges stemming from tariff concerns leading to decreased market liquidity and trading losses. Despite these headwinds, the firm achieved $41 million in gross profit and engaged in strategic acquisitions, including Pinehurst Coin Exchange and Spectrum Group International, which bolster its competitive position and expand into higher-margin luxury segments. Roberts expressed optimism regarding the long-term growth opportunities, particularly in Asian markets and wholesale channels, emphasizing a commitment to operational efficiencies and shareholder value.

Guidance
Looking ahead, A-Mark anticipates modest improvement in market conditions, supported by its expanded brand portfolio and optimization opportunities. The company expects continued growth in revenues, with a target of $3 billion for the fiscal third quarter, and aims to maintain its quarterly cash dividend of $0.20 per share. The leadership remains confident in executing its strategic priorities while navigating the current economic landscape.

Additional News
In recent weeks, A-Mark Precious Metals has completed several strategic acquisitions. Notably, the company finalized its acquisition of Pinehurst Coin Exchange and Spectrum Group International, strengthening its market position and expanding its reach into higher-margin luxury segments. Additionally, A-Mark acquired AMS Holding, LLC, further enhancing its competitive edge. These acquisitions are part of A-Mark's strategy to capitalize on market opportunities and drive growth. Furthermore, the company reaffirmed its commitment to maintaining a regular quarterly cash dividend of $0.20 per share, underscoring its focus on delivering shareholder value. These developments highlight A-Mark's proactive approach in expanding its business and optimizing its operations amidst the current market landscape.