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.