Gold.com, Inc. Q2 FY2026 earnings call

• Rebrand to Gold.com and NYSE relisting in December. - Agreement with Tether Investments: Tether to purchase ~$125M of shares, provide gold leasing facility, etc. - Q2 results showed resilience with $11.6M net income. - Closed acquisition of Monex Deposit Company. - Integration of AMGL facility in Las Vegas operating at increased capacity. - Increased equity interest in U.K.-based Atkinsons Bullion & Coins. - Strong performance in LPM Hong Kong and new Singapore location.

Revenues for fiscal Q2 '26 increased 136% to $6.5 billion from $2.7 billion in Q2 of last year. Excluding an increase of $2.5 billion of forward sales, revenues increased $1.2 billion or 69%. Gross profit for fiscal Q2 '26 increased 109% to $93 million or 1.44% of revenue from $44.8 million or 1.63% of revenue in Q2 of last year. SG&A expenses for fiscal Q2 '26 increased 132% to $59.8 million from $25.8 million in Q2 of last year. Depreciation and amortization expense for fiscal Q2 '26 increased by 65% to $7.6 million from $4.6 million in the same year-ago quarter. Interest income for fiscal Q2 '26 decreased by 15% to $5.8 million from $6.8 million in the same year-ago period. Interest expense for fiscal Q2 '26 increased 57% to $16.3 million from $10.4 million in Q2 of last year. Net income attributable to the company for the second quarter of fiscal '26 totaled $11.6 million or $0.46 per diluted share.

• Consumer demand remains elevated, premium spreads expanded. - Markets moving back towards contango positive for trading business. - Strong balance sheet allows adjusting weekly production levels to manage inventory and meet demand.

• Failure to agree on transaction documents or complete transactions with Tether. - Government regulations impeding growth, especially in Asia. - Inability to integrate recently acquired businesses. - Changes in international political climate affecting precious metals market. - Supply chain issues. - Increased competition depressing pricing. - Failure of business model to respond to market changes. - Changes in consumer demand for precious metals products. - Inflationary pressure impact. - Inability to expand capacity at Silver Towne Mint. - Investee companies failing to maintain customer bases.

Q: Compare and contrast the performance of gold and silver in the December quarter? And talk about facility expansion.

A: Saw a shift back to silver, silver could be ~50% of total volume. Premiums higher for silver products. Expanded facility in Vegas, tested limits with over 120,000 packages in January, needed more employees.

Q: Impact of widening spreads in the March quarter versus December quarter on profitability?

A: Anticipate a really good quarter this quarter.

Q: Trading losses in December quarter due to backwardation? How does it play out in March quarter?

A: Backwardation created interest expense in Q2 vs Q2 '24. Buybacks helping as demand increases, reselling to retail improves performance.

Q: How does Tether investment impact profitability, especially storage?

A: Tether investment brings $150M fresh money and gold lease, expected to lower interest expense and dollar borrowings.

Q: Ability to keep products and inventory with surge in demand; combined monthly production capacity?

A: Have balance sheet and two mints, anticipate manufacturing over 800,000 ounces this week. Faced some delayed delivery with preorders.

Q: Throughput capacity at AMGL; aspirations and European/Asian facilities?

A: Anticipate 275,000 packages in Dec and Jan, automation ongoing. Big capital commitment needed for other facilities, no immediate need outside US.

Q: Noncontrolling items impact on GAAP earnings; transitory?

A: Anomaly due to Sunshine Mint shutting down facility, timing issue. Anticipate behind us now.

Q: Quantify backwardation cost; swing from contango to backwardation?

A: Roughly $10-12M swing year-over-year in same quarter. Hoping to swing back towards positive.

Q: Other commercial opportunities with Tether?

A: Many opportunities discussed, two-way street, excited about relationship.

Q: Tether relationship expansion; future plans?

A: Gold leasing, storage, stablecoins on retail platforms, potential with Gold.com credit card.

Q: Mint production volume, ramping up to meet demand?

A: Silver minting business feast or famine, ramped up quickly, liquidity good but cautious.

Q: Tether partnership impact on strategic M&A efforts?

A: Gives opportunity to grow with bigger transactions, Tether supportive.