Gold.com, Inc. Q4 FY2025 earnings call

• Successfully integrated recent acquisitions like Spectrum Group International, AMS Holdings, and Pinehurst Coin Exchange, managing inventory levels and completing automation upgrades at AMGL facility with centralized operations in place, including migrating Pinehurst logistics to AMGL in Las Vegas for cost savings.
• Made progress in Asia with LPM fully operational in Singapore across wholesale and e-commerce channels, broadening reach into Southeast Asian market.
• Expanded into higher-margin collectible and luxury segments with acquisitions, strengthening distribution channels and improving operational leverage.

For the fourth quarter of fiscal 2025, revenues decreased 1% to $2.51 billion from $2.52 billion in the prior year's fourth quarter. Excluding a $94 million decrease in forward sales, revenues increased 5% due to higher average selling prices of gold and silver offset by fewer ounces sold. Gross profit for Q4 2025 increased 90% to $81.7 million (3.25% of revenue) from $43.0 million (1.7% of revenue) in the prior year's Q4. For the full fiscal year, revenues increased 1.3% to $10.98 billion from $9.7 billion in the prior fiscal year. Excluding a $446 million increase in forward sales, revenues increased 15% due to higher average selling prices of gold and silver partially offset by fewer ounces sold. Gross profit for the full year increased 22% to $210.9 million (1.92% of revenue) from $173.3 million (1.79% of revenue) in the prior fiscal year.

• Remain confident in A-Mark's long-term trajectory with expanded brand portfolio and ongoing integration/optimization opportunities.
• Enter the new fiscal year well positioned to capture growth across multiple channels.

• Market uncertainty with ongoing physical market challenges, increased supply, and range-bound premium spreads.
• Tariffs impacting gold importation and causing uncertainty in hedge positions, affecting profitability.
• Disruptions in contango/backwardation affecting carry costs and profitability.
• Challenges with inventory management and carry costs in the current market environment.
• Risks associated with integrating recent acquisitions, including ongoing efforts to find synergies and eliminate redundancies.

Q: At a high level, where do you think we are in the cycle right now?

A: Market has been slow for 3-6 months, with continued higher spot prices and headwinds in silver premiums. Integration of acquisitions will ultimately pay off but market remains as it has been.

Q: Where are your thoughts on strategic M&A today?

A: Always looking for opportunities, door is open. Market slowness presents easier to digest acquisitions, and we're ready to consider more if opportunities arise.

Q: Where are we with countercyclical efforts from acquisitions?

A: Rare coin side (Stack's Bowers) is strong, benefiting from higher margins, proving countercyclical strategy is sound.

Q: Have you finished fully upgrading your Vegas distribution center?

A: 95% complete, operational with infrastructure done, still working on software/IT integration but mostly complete with expected cost savings and capacity increases.

Q: What's a good environment for you guys?

A: Volatility and uncertainty in equity markets are good, as fear/uncertainty generally benefit precious metals business, though current higher spot prices haven't translated to strong DTC customer traction yet.

Q: How are tariffs impacting your business?

A: Tariffs cause disruption in metal location for avoiding tariffs, affecting cost of carry and hedge positions, creating uncertainty in parts of the business.

Q: What was the big driver to gross margin?

A: Gross margin up due to acquisitions adding higher-margin gross profit, though SG&A has increased, and focus on reducing inventories and carry costs moving forward.

Q: How is international market mix balancing out?

A: Positive growth in Asia with LPM in Singapore, onboarding new customers and accessing higher-margin products from Southeast Asia, though not yet a material portion of top line but showing promise.

Q: Any pockets of promise in DTC?

A: Higher premium bullion products, rare coins in Stack's Bowers, and CFC finance business showing positivity, with some uptick in new loans and draws against existing loans.

Q: Impact of backwardation in Q4 vs Q3 2025?

A: Backwardation continues to be challenging, with disruptions from White House announcements causing curve flips and uncertainty, affecting hedge positions and profitability.

Q: Highlights of digesting recent acquisitions?

A: Finance team completed purchase price accounting, Pinehurst inventory/logistics moved to Las Vegas eliminating costs, AMS being integrated with focus on marketing synergies, stack side moving resources for integrated trading desk.