Gold.com, Inc. (GOLD) Earnings

Management highlights

• CEO Gregory Roberts noted the quarter reflected strength of fully integrated platform with unprecedented surge in activity across segments due to market dynamics. • Mentioned record financial performance including over $10B revenue, over $175M gross profit, $59.5M net income. • Direct-to-consumer segment led, wholesale sales and ancillary services improved, LPM built momentum in Asia. • Benefited from market conditions shifting to contango from backwardation. • Acquisition of Monnex delivering strong returns, addition of Sunshine Mint expanding production capabilities. • Strategic equity investment from Tether enhanced capital and liquidity position, entered agreements with Tether. • CFO Cary Dickson provided financial performance details including revenue, gross profit, SG&A, depreciation, interest, net income, EBITDA. • President Thor Gjerdrum discussed key operating metrics like gold and silver ounces sold, new customers in DTC, total customers, secured loans and loan portfolio.

Guidance

• Market conditions became more normalized but geopolitical dynamics remain a factor. • Focus on driving synergies across business units. • Acquisition of Monnex delivering strong returns, Sunshine Mint expansion. • Partnership with Tether providing benefits in storage and gold leasing. • Looking at capital deployment options including acquisitions, paying down debt, etc., with dividend philosophy being considered based on fourth quarter performance.

Segment performance

Direct-to-consumer segment led the way with strong customer engagement, higher order values, and increased transactional activity, including JMB outperforming and delivering record profitability. Wholesale sales and ancillary services segment also saw significant quarter-over-quarter improvement. LPM continued to build momentum across Asia. Revenue for Q3 2026 was over $10 billion, with direct-to-consumer, wholesale sales, and ancillary services contributing. Gross profit was over $175 million, net income was $59.5 million. For the quarter, revenues increased 244% to $10.3 billion from $3.0 billion in Q3 of last year. Gross profit increased 331% to $176 million. SG&A expenses increased 134% to $78 million. Depreciation and amortization expense increased 88% to $9.4 million. Interest income had some changes, interest expense increased. Net income attributable to the company for Q3 2026 totaled $60 million. EBITDA for Q3 2026 totaled $103.4 million. Sold 538 thousand ounces of gold in Q3 2026, 34.6 million ounces of silver. Number of new customers in DTC segment had changes. Secured loans and loan portfolio had changes.

Risks & headwinds

• Failure to agree on definitive transaction documents with Spectrum Group International. • Failure to complete contemplated transactions within timeline or at all. • Failure to obtain necessary third-party consents or approvals. • Greater-than-anticipated costs to consummate transactions. • Failure to execute growth strategy including identifying suitable acquisitions. • Greater-than-anticipated costs to execute strategy. • Government regulations impeding growth, especially in Asia. • Inability to successfully integrate recently acquired businesses. • Changes in international political climate affecting demand. • Adverse effects of supply chain problems. • Increased competition depressing pricing. • Business model failure to respond to market changes. • Changes in consumer demand and preferences. • Inflationary price pressures impact. • Inability to expand capacity at SilverTowne Mint. • Investee companies failing to meet customer base preferences. • General risks of doing business in commodity markets. • Strategic, business, economic, financial, political, and government risks described in SEC filings.

Analyst Q&A

• Q: What does 'normalized' mean and how does it relate to earnings power?

  A: Gregory Roberts said last year was below par, January and February were outperforming, March became more normalized, backwardation is unusual, contango is more normalized, and earnings potential was illustrated by the quarter given the environment, acquisitions, and access to capital.

• Q: How did M&A enable capitalizing on demand?

  A: In January and February, tide rose for all businesses, DTC had overachievers, JMB did well, LPM in new geographies did well, bullion was overachiever.

• Q: How did strategic partnership with Tether contribute?

  A: In the quarter, contributed with storage business growing from $1.1B to roughly double, gold leasing arrangements above projected, getting benefits including in current quarter.

• Q: Thoughts on one-time dividend philosophy?

  A: Explored special dividends before, active with capital deployment options, acquisitions are top of list now, will see how fourth quarter shapes up before deciding on special dividend.

• Q: Little bit over $1B increase in restricted inventory and Sunshine Mint help?

  A: Spot prices caused increase in inventory, SilverTowne Mint ramped up to satisfy demand, acquiring Sunshine Mint gives greater control over minting operations.

• Q: Potential SG&A synergies from recent acquisitions?

  A: Team looking for SG&A synergies, variable parts of SG&A will increase with higher sales, market environment will dictate cost savings and optimization.

• Q: Shift in hedging costs and strategic partnership with Tether on XAUT?

  A: Backwardation caused hedging cost issues, contango helped, $20 million investment in XAUT with onboarding completed, working on wallet and redemption features.

• Q: Rebranding benefits and Gold.com, Inc.-branded financial services?

  A: Rebranding gone great, working on Gold.com, Inc. credit card for DTC customers.