A-Mark Precious Metals (NASDAQ: AMRK), one of the U.S.’s largest integrated precious metals firms, reported fiscal Q3 2025 earnings that reflect a challenging quarter marked by market volatility, rising financing costs, and complex acquisition integration—but also signs of long-term strategic strength in the retail space. While the $8.5 million quarterly net loss may spook the weak hands, a deeper dive reveals a nuanced story about retail dominance, wholesale headwinds, and a changing bullion landscape.
Retail Resilience and Wholesale Weakness
The retail segment was the bright spot in an otherwise rough quarter. A-Mark’s Direct-to-Consumer (DTC) division, including JM Bullion, Pinehurst, and Goldline, saw strong customer growth—up 1,489% YoY—and average order values jumped 45% to $3,084. However, this growth came primarily through acquisitions, with Pinehurst accounting for 84% of new customers. Gross profit in DTC also increased, contributing 61% of the company’s total gross profit, up from 52% the year before.
In contrast, wholesale operations were a drag. Silver ounces sold cratered by 39% YoY, while gold volume dipped modestly. The Wholesale Sales & Ancillary Services segment experienced gross profit declines due to compressed spreads and higher financing costs driven by backwardation in the metals market. The broader turbulence—tariffs, rate hikes, and financing strain—created unfavorable conditions for bulk trading.
A-Mark Acquisitions: Pinehurst, SGI, & AMS
A-Mark leaned into M&A to deepen its market penetration. The acquisitions of Pinehurst and Spectrum Group International (SGI) and the post-quarter close buy of AMS Holdings (GOVMINT.com) broaden A-Mark’s footprint into luxury numismatics and collectible coins. These verticals often enjoy higher margins and better customer loyalty. While integration costs were steep this quarter—$4.6M in acquisition expenses and a $7M remeasurement loss from Pinehurst—the long-term payoff could be substantial once synergies kick in across warehousing, fulfillment, and marketing.
Outlook: Recovery in Motion?
Despite the ugly net loss, A-Mark reported positive adjusted net income ($5.7M) and EBITDA ($1.3M), and sees “momentum” heading into year-end. With gold and silver prices rallying and inflation concerns remaining sticky, the DTC growth path looks sustainable, mainly as more investors hedge into physical assets. The company’s expanded credit facility to $467M also positions it well for future leverage or inventory strategies.
However, risks remain. Interest rate volatility, geopolitical tensions, and metal price whipsaws make forward guidance tricky. Wholesale margins are especially vulnerable. And while acquisitions provide scale, they also increase complexity and integration risk.
State Legal Tender Bills and Bullion Demand
There’s also a powerful macro tailwind for precious metals emerging from statehouses across the U.S. Louisiana, Utah, Texas, and others are passing or advancing legislation to recognize gold and silver as legal tender. This adds legitimacy and potential tax advantages to physical bullion use and ownership. In practical terms, these moves—especially when paired with eliminating state sales tax on bullion in many of these jurisdictions—support grassroots demand from individual stackers and small investors.
This trend could reinforce retail volume for companies like A-Mark, whose brands are widely known to collectors and conservative investors. As confidence in fiat currencies erodes, these legislative shifts amplify gold and silver’s role as hedges and functional money.
Long-Term Bullish, Short-Term Messy
The Q3 numbers were rough, but A-Mark is playing a longer game—expanding its retail empire, controlling more of the bullion-to-collector pipeline, and hedging its exposure through diversified offerings. While wholesale trading may stay rocky, the firm’s ability to build a vertically integrated, digitally accessible precious metals ecosystem puts it ahead of most in the industry.
If you’re stacking silver or holding gold, keep watching A-Mark—not because of what it lost this quarter, but because of the infrastructure it’s quietly assembling to dominate the future of bullion.
