Is A-Mark Precious Metals' Dividend at Risk of a Cut in 2025?

A-Mark Precious Metals (NASDAQ: AMRK) has long been a fixture in the precious metals sector, offering a dividend yield of approximately 3.8% as of April 2025. However, the company’s financial fundamentals have deteriorated sharply in recent quarters, raising urgent questions about the sustainability of its $0.20-per-share quarterly payout. With a payout ratio now hovering near 74%—far exceeding the sector average of 42.6%—investors must ask: Is this dividend at risk of a cut in 2025?

Deteriorating Profitability and Rising Payout Ratio

A-Mark’s fiscal 2024 results showed preliminary revenues of $9.7 billion, but non-GAAP EBITDA plummeted by 42% year-over-year to $36.1 million in Q3 2024 [3]. This trend worsened in Q2 2025, where net income fell 52% to $6.56 million, and EBITDA dropped another 35% to $16.2 million [2]. The company’s gross profit margin also contracted to 1.63% of revenue, down from 2.22% in 2023 [2]. These declines have pushed the dividend payout ratio to unsustainable levels. At 74% of net income, A-Mark is distributing nearly three times more in dividends than its sector peers [2].

The company’s cash flow situation is equally dire. While 2024 cash flow from operations improved to $61 million [1], Q2 2025 saw negative operating cash flow, and the nine months ended March 31, 2025, reported a mere $23.8 million in financing activities [4]. This lack of liquidity, combined with a $457 million credit facility amendment to fund operations [2], signals growing reliance on debt—a risky strategy for a business already burdened by rising interest expenses.

Strategic Moves vs. Financial Realities

A-Mark has attempted to offset these challenges with strategic initiatives, including automation and expansion into Asia [3]. The recent acquisition of Spectrum Group International, aimed at entering premium collectible markets, adds operational complexity and integration costs [2]. While these moves could drive long-term growth, they also divert capital from core operations at a time when profitability is already under pressure.

The company’s dividend policy, however, remains unchanged. A-Mark reaffirmed its $0.20-per-share quarterly payout in August 2025, maintaining an annualized yield of $0.80 [5]. This decision appears disconnected from its financial reality: a 74% payout ratio implies that the company is paying out more in dividends than it earns in net income. For context, a payout ratio above 60% is generally considered a red flag for dividend sustainability [2].

What’s Next for A-Mark’s Dividend?

The upcoming Q4 2025 earnings report, scheduled for September 9, 2025, will be critical. Analysts project $0.78 in EPS for Q3 2025 [2], but a miss could accelerate concerns about a dividend cut. The company’s ability to reverse declining cash flow and reduce its debt load will determine whether the current payout remains viable.

Historically, A-Mark has cut its dividend during periods of financial stress. A 23% annualized growth rate since 2015 appears unsustainable given recent trends, and the stock’s 3.8% yield now reflects a market skeptical of long-term reliability [2]. Investors should monitor Q3 and Q4 results closely, particularly cash flow from operations and debt metrics.

Conclusion

A-Mark Precious Metals’ dividend is currently at risk due to deteriorating profitability, negative operating cash flow, and an unsustainably high payout ratio. While the company has reaffirmed its commitment to the dividend, the financial data suggests it is operating on thin ice. A cut in 2025 is not a certainty, but the likelihood increases if A-Mark fails to stabilize its earnings and cash flow. For now, the dividend remains a high-yield illusion, masking a business in need of urgent turnaround.

**Source:[1] A-Mark Precious Metals Cash Flow from Operating Activities [https://macrotrends.net/stocks/charts/AMRK/a-mark-precious-metals/cash-flow-from-operating-activities][2] Warning Signs for A-Mark Precious Metals: Dividend Sustainability Threat [https://www.ainvest.com/news/warning-signs-mark-precious-metals-dividend-sustainability-threat-2505/][3] A-Mark Precious Metals Reports Preliminary Fiscal Fourth Quarter and Full-Year 2024 Results [https://www.globenewswire.com/news-release/2024/08/29/2938104/31746/en/A-Mark-Precious-Metals-Reports-Preliminary-Fiscal-Fourth-Quarter-and-Preliminary-Full-Year-2024-Results.html][4] Cash Flow :: A-Mark Precious Metals, Inc. (AMRK) [https://ir.amark.com/financial-information/cash-flow]