A-Mark Precious Metals Inc
For the period ended Mar 31, 2025. Filed May 12, 2025.
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Mar 31, 2025 · Filed May 12, 2025
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Segment results of operations
The Company conducts its operations in three reportable segments: (i) Wholesale Sales & Ancillary Services, (ii) Direct-to-Consumer, and (iii) Secured Lending.
Results of Operations — Wholesale Sales & Ancillary Services Segment
The Company operates its Wholesale Sales & Ancillary Services segment directly and through its consolidated subsidiaries, A-Mark Trading AG (“AMTAG”), Transcontinental Depository Services ("TDS"), A-M Global Logistics, LLC (“AMGL” or "Logistics"), AM&ST Associates, LLC ("AMST" or the "Silver Towne Mint"), AM/LPM Ventures, LLC, which owns a majority interest in LPM Group Limited ("LPM"), Spectrum Group International, LLC, which was formed in February 2025 to acquire all of the stock of Spectrum Group International, Inc. ("SGI"), and Pinehurst Coin Exchange, Inc. ("Pinehurst"), which was acquired in February 2025.
— Wholesale Sales & Ancillary Services Segment
The operating results of our Wholesale Sales & Ancillary Services segment were as follows (in thousands, except performance metrics data):
| in thousands, except performance metrics | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | |||||||||
| $ · % of revenue · $ · % of revenue · $ · % | |||||||||
| Revenues | $2,435,036(a) | 100.000% | $2,274,977(b) | 100.000% | $160,059 | 7.0% | |||
| Gross profit | 15,852 | 0.651%(c) | 16,834 | 0.740%(d) | $(982) | (5.8%) | |||
| Selling, general, and administrative expenses | (17,425) | (0.716%) | (12,202) | (0.536%) | $5,223 | 42.8% | |||
| Depreciation and amortization expense | (1,084) | (0.045%) | (474) | (0.021%) | $610 | 128.7% | |||
| Interest income | 4,081 | 0.168% | 3,676 | 0.162% | $405 | 11.0% | |||
| Interest expense | (11,041) | (0.453%) | (7,266) | (0.319%) | $3,775 | 52.0% | |||
| Losses from equity method investments | (264) | (0.011%) | (223) | (0.010%) | $41 | 18.4% | |||
| Other income, net | 1,137 | 0.047% | 440 | 0.019% | $697 | 158.4% | |||
| Remeasurement loss on pre-existing equity interest | (7,043) | (0.289%) | — | —% | $7,043 | —% | |||
| Unrealized (losses) gains on foreign exchange | (269) | (0.011%) | 73 | 0.003% | $(342) | (468.5%) | |||
| Net (loss) income before provision for income taxes | $(16,056) | (0.659%) | $858 | 0.038% | $(16,914) | (1,971.3%) | |||
| Performance Metrics: | |||||||||
| Gold ounces sold(1) | 298,000 | 339,000 | (41,000) | (12.1%) | |||||
| Silver ounces sold(2) | 11,931,000 | 22,545,000 | (10,614,000) | (47.1%) | |||||
| Wholesale Sales ticket volume(3) | 35,653 | 26,150 | 9,503 | 36.3% | |||||
(a)
Revenues are presented net of inter-segment transactions with the Direct-to-Consumer segment that totaled $365.7 million. This segment’s gross sales before eliminations of inter-segment activity totaled $2.801 billion.
(b)
Revenues are presented net of inter-segment transactions with the Direct-to-Consumer segment that totaled $242.6 million. This segment’s gross sales before eliminations of inter-segment activity totaled $2.518 billion.
(c)
Gross profit percentage before elimination of inter-segment sales to the Direct-to-Consumer segment was 0.605% for the period.
(d)
Gross profit percentage before elimination of inter-segment sales to the Direct-to-Consumer segment was 0.648% for the period.
(1)
Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts. SGI's and Pinehurst's metrics are included after February 28, 2025.
(2)
Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts. SGI's and Pinehurst's metrics are included after February 28, 2025.
(3)
Wholesales Sales ticket volume represents the total number of product orders processed. SGI's and Pinehurst's metrics are included after February 28, 2025.
— Wholesale Sales & Ancillary Services Segment
The operating results of our Wholesale Sales & Ancillary Services segment were as follows (in thousands, except performance metrics data):
| Nine Months Ended March 31, · 2025 · 2024 · Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| $ · % of revenue · $ · % of revenue · $ · % | |||||||||
| Revenues | $6,835,365(a) | 100.000% | $6,142,233(b) | 100.000% | $693,132 | 11.3% | |||
| Gross profit | 55,576 | 0.813%(c) | 69,065 | 1.124%(d) | $(13,489) | (19.5%) | |||
| Selling, general, and administrative expenses | (41,567) | (0.608%) | (33,366) | (0.543%) | $8,201 | 24.6% | |||
| Depreciation and amortization expense | (2,692) | (0.039%) | (1,084) | (0.018%) | $1,608 | 148.3% | |||
| Interest income | 12,220 | 0.179% | 10,657 | 0.174% | $1,563 | 14.7% | |||
| Interest expense | (26,596) | (0.389%) | (20,989) | (0.342%) | $5,607 | 26.7% | |||
| Earnings (losses) from equity method investments | (2,172) | (0.032%) | 3,269 | 0.053% | $(5,441) | (166.4%) | |||
| Other income, net | 1,072 | 0.016% | 736 | 0.012% | $336 | 45.7% | |||
| Remeasurement loss on pre-existing equity interest | (7,043) | (0.103%) | — | —% | $7,043 | —% | |||
| Unrealized (losses) gains on foreign exchange | (110) | (0.002%) | 84 | 0.001% | $(194) | (231.0%) | |||
| Net (loss) income before provision for income taxes | $(11,312) | (0.165%) | $28,372 | 0.462% | $(39,684) | (139.9%) | |||
| Performance Metrics: | |||||||||
| Gold ounces sold(1) | 916,000 | 1,051,000 | (135,000) | (12.8%) | |||||
| Silver ounces sold(2) | 45,301,000 | 72,711,000 | (27,410,000) | (37.7%) | |||||
| Wholesale Sales ticket volume(3) | 95,294 | 73,456 | 21,838 | 29.7% | |||||
(a)
Revenues are presented net of inter-segment transactions with the Direct-to-Consumer segment that totaled $1.151 billion. This segment’s gross sales before eliminations of inter-segment activity totaled $7.987 billion.
(b)
Revenues are presented net of inter-segment transactions with the Direct-to-Consumer segment that totaled $724.1 million. This segment’s gross sales before eliminations of inter-segment activity totaled $6.866 billion.
(c)
Gross profit percentage before elimination of inter-segment sales to the Direct-to-Consumer segment was 0.708% for the period.
(d)
Gross profit percentage before elimination of inter-segment sales to the Direct-to-Consumer segment was 0.942% for the period.
(1)
Gold ounces sold represents the ounces of gold product sold and delivered to the customer during the period, excluding ounces of gold recorded on forward contracts. SGI's and Pinehurst's metrics are included after February 28, 2025.
(2)
Silver ounces sold represents the ounces of silver product sold and delivered to the customer during the period, excluding ounces of silver recorded on forward contracts. SGI's and Pinehurst's metrics are included after February 28, 2025.
(3)
Wholesales Sales ticket volume represents the total number of product orders processed. SGI's and Pinehurst's metrics are included after February 28, 2025.
Revenues — Wholesale Sales & Ancillary Services
| in thousands, except performance metrics | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | |||||||||
| $ · % of revenue · $ · % of revenue · $ · % | |||||||||
| Revenues | $2,435,036(a) | 100.000% | $2,274,977(b) | 100.000% | $160,059 | 7.0% | |||
| Performance Metrics | |||||||||
| Gold ounces sold | 298,000 | 339,000 | (41,000) | (12.1%) | |||||
| Silver ounces sold | 11,931,000 | 22,545,000 | (10,614,000) | (47.1%) | |||||
| Wholesale Sales ticket volume | 35,653 | 26,150 | 9,503 | 36.3% | |||||
(a)
Revenues are presented net of inter-segment transactions with the Direct-to-Consumer segment that totaled $365.7 million. This segment’s gross sales before eliminations of inter-segment activity totaled $2.801 billion.
(b)
Revenues are presented net of inter-segment transactions with the Direct-to-Consumer segment that totaled $242.6 million. This segment’s gross sales before eliminations of inter-segment activity totaled $2.518 billion.
Revenues for the three months ended March 31, 2025 increased $160.1 million, or 7.0%, to $2.435 billion from $2.275 billion in 2024. Excluding an increase in forward sales of $155.8 million, our revenues increased $4.3 million, which was due to higher average selling prices of gold and silver, partially offset by a decrease in gold and silver ounces sold. Revenues also increased due to the acquisitions of SGI and Pinehurst in February 2025.
Gold ounces sold for the three months ended March 31, 2025 decreased 41,000 ounces, or 12.1%, to 298,000 ounces from 339,000 ounces in 2024. Silver ounces sold for the three months ended March 31, 2025 decreased 10,614,000 ounces, or 47.1%, to 11,931,000 ounces from 22,545,000 ounces in 2024. On average, the selling prices for gold and silver increased by 37.8% and 34.8%, respectively, during the three months ended March 31, 2025 as compared to the prior year.
The Wholesale Sales ticket volume for the three months ended March 31, 2025 increased by 9,503 tickets, or 36.3% to 35,653 tickets from 26,150 tickets in 2024.
| in thousands, except performance metrics | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | |||||||||
| $ · % of revenue · $ · % of revenue · $ · % | |||||||||
| Revenues | $6,835,365(a) | 100.000% | $6,142,233(b) | 100.000% | $693,132 | 11.3% | |||
| Performance Metrics | |||||||||
| Gold ounces sold | 916,000 | 1,051,000 | (135,000) | (12.8%) | |||||
| Silver ounces sold | 45,301,000 | 72,711,000 | (27,410,000) | (37.7%) | |||||
| Wholesale Sales ticket volume | 95,294 | 73,456 | 21,838 | 29.7% | |||||
(a)
Revenues are presented net of inter-segment transactions with the Direct-to-Consumer segment that totaled $1.151 billion. This segment’s gross sales before eliminations of inter-segment activity totaled $7.987 billion.
(b)
Revenues are presented net of inter-segment transactions with the Direct-to-Consumer segment that totaled $724.1 million. This segment’s gross sales before eliminations of inter-segment activity totaled $6.866 billion.
Revenues for the nine months ended March 31, 2025 increased $693.1 million, or 11.3%, to $6.835 billion from $6.142 billion in 2024. Excluding an increase in forward sales of $540.5 million, our revenues increased $152.6 million, which was due to higher average selling prices of gold and silver, partially offset by a decrease in gold and silver ounces sold. Revenues also increased due to the acquisition of SGI and Pinehurst in February 2025.
Gold ounces sold for the nine months ended March 31, 2025 decreased 135,000 ounces, or 12.8%, to 916,000 ounces from 1,051,000 ounces in 2024. Silver ounces sold for the nine months ended March 31, 2025 decreased 27,410,000 ounces, or 37.7%, to 45,301,000 ounces from 72,711,000 ounces in 2024. On average, the selling prices for gold increased by 34.0% and selling prices for silver increased by 31.2% during the nine months ended March 31, 2025 as compared to the prior year.
The Wholesale Sales ticket volume for the nine months ended March 31, 2025 increased by 21,838 tickets, or 29.7% to 95,294 tickets from 73,456 tickets in 2024.
Gross Profit — Wholesale Sales & Ancillary Services
| in thousands | ||||||||
|---|---|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||||
| $ · % of revenue · $ · % of revenue · $ · % | ||||||||
| Gross profit | $15,852 | 0.651%(c) | $16,834 | 0.740%(d) | $(982) | (5.8%) | ||
| Performance Metric | ||||||||
| Wholesale Sales ticket volume | 35653 | 26150 | 9503 | 36.3% | ||||
(c)
Gross profit percentage before elimination of inter-segment sales to the Direct-to-Consumer segment was 0.605% for the period.
(d)
Gross profit percentage before elimination of inter-segment sales to the Direct-to-Consumer segment was 0.648% for the period.
Gross profit for the three months ended March 31, 2025 decreased $1.0 million, or 5.8%, to $15.9 million from $16.8 million in 2024. The overall gross profit decrease was primarily due to lower trading profits partially offset by wider premium spreads.
This segment’s profit margin percentage decreased by 8.9 basis points to 0.651% from 0.740% in 2024. The decrease in gross margin percentage was mainly attributable to increased forward sales and lower trading profits, partially offset by wider premium spreads.
Excluding an increase of $155.8 million of forward sales that had a negligible impact to the amount of gross profit, this segment's gross margin percentage for the three months ended March 31, 2025 decreased by 10.4 basis points to 1.556% from 1.660%. Forward sales increase revenues but are associated with negligible gross profit. The Company enters into forward contracts to hedge its precious metals price risk exposure and not for speculative purposes.
| in thousands | ||||||||
|---|---|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||||
| $ · % of revenue · $ · % of revenue · $ · % | ||||||||
| Gross profit | $55,576 | 0.813%(c) | $69,065 | 1.124%(d) | $(13,489) | (19.5%) | ||
| Performance Metric | ||||||||
| Wholesale Sales ticket volume | 95294 | 73456 | 21838 | 29.7% | ||||
(c)
Gross profit percentage before elimination of inter-segment sales to the Direct-to-Consumer segment was 0.708% for the period.
(d)
Gross profit percentage before elimination of inter-segment sales to the Direct-to-Consumer segment was 0.942% for the period.
Gross profit for the nine months ended March 31, 2025 decreased $13.5 million, or 19.5%, to $55.6 million from $69.1 million in 2024. The gross profit decrease was primarily due to lower premium spreads and lower trading profits.
This segment’s profit margin percentage decreased by 31.1 basis points to 0.813% from 1.124% in 2024. The decrease in gross margin percentage was mainly attributable to the impact of increased forward sales, lower premium spreads, and lower trading profits.
Excluding an increase of $540.5 million of forward sales that had a negligible impact to the amount of gross profit, this segment's gross margin percentage for the nine months ended March 31, 2025 decreased by 52.4 basis points to 1.722% from 2.246% in the prior year. Forward sales increase revenues but are associated with negligible gross profit. The Company enters into forward contracts to hedge its precious metals price risk exposure and not for speculative purposes.
Selling, General and Administrative Expenses — Wholesale Sales & Ancillary Services
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Selling, general, and administrative expenses | $(17,425) | (0.716%) | $(12,202) | (0.536%) | $5,223 | 42.8% |
Selling, general and administrative expenses for the three months ended March 31, 2025 increased $5.2 million, or 42.8%, to $17.4 million from $12.2 million in 2024. The change was primarily due to: (i) higher consulting and professional fees of $3.8 million, (ii) an increase in compensation expense (including performance-based accruals) of $0.8 million, (iii) an increase in advertising costs of $0.6 million, and (iv) an increase in facilities expense of $0.4 million, partially offset by (v) a decrease in insurance costs of $0.5 million. Selling, general and administrative expenses for the three months ended March 31, 2025 include expenses incurred by LPM, SGI and Pinehurst which were not included in the same year-ago period as these entities were not yet consolidated subsidiaries for the full period.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Selling, general, and administrative expenses | $(41,567) | (0.608%) | $(33,366) | (0.543%) | $8,201 | 24.6% |
Selling, general, and administrative expenses for the nine months ended March 31, 2025 increased $8.2 million, or 24.6%, to $41.6 million from $33.4 million in 2024. The change was primarily due to: (i) higher consulting and professional fees of $4.8 million, (ii) an increase in compensation expense (including performance-based accruals) of $2.1 million, (iii) an increase in facilities expense of $0.9 million, and (iv) an increase in advertising costs of $0.4 million. Selling, general, and administrative expenses for the nine months ended March 31, 2025 include expenses incurred by LPM, SGI and Pinehurst which were not included in the same year-ago period as these entities were not yet consolidated subsidiaries for the full period.
Depreciation and Amortization Expense — Wholesale Sales & Ancillary Services
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Depreciation and amortization expense | $(1,084) | (0.045%) | $(474) | (0.021%) | $610 | 128.7% |
Depreciation and amortization expense for the three months ended March 31, 2025 increased $0.6 million, or 128.7%, to $1.1 million from $0.5 million in 2024 primarily due to an increase of $0.4 million related to intangible assets acquired through our acquisitions of LPM, SGI, and Pinehurst.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Depreciation and amortization expense | $(2,692) | (0.039%) | $(1,084) | (0.018%) | $1,608 | 148.3% |
Depreciation and amortization expense for the nine months ended March 31, 2025 increased $1.6 million, or 148.3%, to $2.7 million from $1.1 million in 2024 primarily due to an increase in amortization expense of $0.9 million related to intangible assets acquired through our acquisitions of LPM, SGI, and Pinehurst as well as an increase in depreciation expense of $0.7 million due to an increase in capital expenditures.
Interest Income — Wholesale Sales & Ancillary Services
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Interest income | $4,081 | 0.168% | $3,676 | 0.162% | $405 | 11.0% |
Interest income for the three months ended March 31, 2025 increased $0.4 million, or 11.0%, to $4.1 million from $3.7 million in 2024. The overall increase is primarily due to a $0.3 million increase in interest income earned from spot deferred trade orders.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Interest income | $12,220 | 0.179% | $10,657 | 0.174% | $1,563 | 14.7% |
Interest income for the nine months ended March 31, 2025 increased $1.6 million, or 14.7%, to $12.2 million from $10.7 million in 2024. The overall increase was primarily due to: (i) a $1.3 million increase in interest income earned from spot deferred trade orders and (ii) a $0.6 million increase in interest and fees earned related to margin orders.
Interest Expense — Wholesale Sales & Ancillary Services
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Interest expense | $(11,041) | (0.453%) | $(7,266) | (0.319%) | $3,775 | 52.0% |
Interest expense for the three months ended March 31, 2025 increased $3.8 million, or 52.0%, to $11.0 million from $7.3 million in 2024. The overall increase was primarily due to: (i) higher interest and fees from product financing arrangements of $1.7 million, (ii) an increase of $0.9 million from liabilities on borrowed metals, and (iii) an increase of $0.7 million in connection with our Trading Credit Facility due to increased borrowings,
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Interest expense | $(26,596) | (0.389%) | $(20,989) | (0.342%) | $5,607 | 26.7% |
Interest expense for the nine months ended March 31, 2025 increased $5.6 million, or 26.7%, to $26.6 million from $21.0 million in 2024. The overall increase was primarily due to: (i) higher interest and fees from product financing arrangements of $2.4 million, (ii) an increase of $1.6 million from liabilities on borrowed metals, (iii) an increase of $1.7 million in connection with our Trading Credit Facility due to an increase in interest rates and increased borrowings, (iv) a decrease in inter-segment eliminations related to the DTC segment's product financing activity with A-Mark of $1.3 million. partially offset by (v) a decrease of $1.5 million related to the AMCF Notes (including amortization of debt issuance costs) due to their repayment in December 2023.
Earnings (Losses) from Equity Method Investments— Wholesale Sales & Ancillary Services
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Losses from equity method investments | $(264) | (0.011%) | $(223) | (0.010%) | $41 | 18.4% |
Earnings (losses) from equity method investments for the three months ended March 31, 2025 increased $0.0 million, or 18.4%, to a loss of $0.3 million from a loss of $0.2 million in 2024 due to decreased earnings of our equity method investees.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Earnings (losses) from equity method investments | $(2,172) | (0.032%) | $3,269 | 0.053% | $(5,441) | (166.4%) |
Earnings (losses) from equity method investments for the nine months ended March 31, 2025 decreased $5.4 million, or 166.4%, to a loss of $2.2 million from earnings of $3.3 million in 2024 due to decreased earnings of our equity method investees.
Remeasurement Loss on Pre-Existing Equity Interest
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Remeasurement loss on pre-existing equity interest | $(7,043) | (0.289%) | $— | —% | $7,043 | —% |
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Remeasurement loss on pre-existing equity interest | $(7,043) | (0.103%) | $— | —% | $7,043 | —% |
The Company incurred a remeasurement loss on our pre-existing equity interest in Pinehurst in February 2025 through the acquisition of the remaining equity interests it did not previously own. See further details in Note 1.
Results of Operations — Direct-to-Consumer Segment
The Company operates its Direct-to-Consumer segment through its wholly-owned subsidiaries JM Bullion, Inc. (“JMB”), Goldline, Inc. (“Goldline”), Spectrum Group International, LLC ("SGI"), and Pinehurst Coin Exchange, Inc. ("Pinehurst"), through its investment in Silver Gold Bull, Inc. ("SGB"), and through our subsidiary Precious Metals Purchasing Partners, LLC ("PMPP").
— Direct-to-Consumer Segment
The operating results of our Direct-to-Consumer ("DTC") segment were as follows (in thousands, except performance metrics data):
| Three Months Ended March 31, · 2025 · 2024 · Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| $ · % of revenue · $ · % of revenue · $ · % | |||||||||
| Revenues | $574,089(a) | 100.000% | $335,674(b) | 100.000% | $238,415 | 71.0% | |||
| Gross profit | 25,165 | 4.383% | 18,004 | 5.364% | $7,161 | 39.8% | |||
| Selling, general, and administrative expenses | (15,717) | (2.738%) | (10,259) | (3.056%) | $5,458 | 53.2% | |||
| Depreciation and amortization expense | (3,912) | (0.681%) | (2,392) | (0.713%) | $1,520 | 63.5% | |||
| Interest income | 27 | 0.005% | — | —% | $27 | —% | |||
| Interest expense | (532) | (0.093%) | (580) | (0.173%) | $(48) | (8.3%) | |||
| Other income, net | — | —% | 5 | 0.001% | $(5) | (100.0%) | |||
| Unrealized gains on foreign exchange | 36 | 0.006% | — | —% | $36 | —% | |||
| Net income before provision for income taxes | $5,067 | 0.883% | $4,778 | 1.423% | $289 | 6.0% | |||
| Performance Metrics: | |||||||||
| Gold ounces sold(1) | 134,000 | 107,000 | 27,000 | 25.2% | |||||
| Silver ounces sold(2) | 3,771,000 | 3,177,000 | 594,000 | 18.7% | |||||
| Number of new customers(3) | 899,600 | 56,600 | 843,000 | 1,489.4% | |||||
| Number of active customers(4) | 140,700 | 126,000 | 14,700 | 11.7% | |||||
| Number of total customers(5) | 4,087,100 | 2,496,500 | 1,590,600 | 63.7% | |||||
| DTC ticket volume from new customers(6) | 45,280 | 39,150 | 6,130 | 15.7% | |||||
| DTC ticket volume from pre-existing customers(7) | 142,491 | 120,836 | 21,655 | 17.9% | |||||
| DTC total ticket volume(8) | 187,771 | 159,986 | 27,785 | 17.4% | |||||
| DTC average order value(9) | $3,084 | $2,133 | $951 | 44.6% | |||||
| JMB average order value(9) | $1,994 | $2,003 | $(9) | (0.4%) | |||||
(a)
Includes $55.1 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(b)
Includes $2.9 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(1)
Gold ounces sold represents the ounces of gold product sold and delivered during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. Pinehurst's metrics are included after February 28, 2025.
(2)
Silver ounces sold represents the ounces of silver product sold and delivered during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. Pinehurst's metrics are included after February 28, 2025.
(3)
Number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(4)
Number of active customers represents the number of customers that have made a purchase during any month during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(5)
Number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(6)
Ticket volume from new customers represents the number of product orders from new customers processed by JMB, Goldline, SGB, and PMPP during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(7)
Ticket volume from pre-existing customers represents the total number of product orders from pre-existing customers processed by JMB, Goldline, SGB, and PMPP during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(8)
Total ticket volume represents the total number of product orders processed by JMB, Goldline, SGB, SGI, Pinehurst, and PMPP during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(9)
Average Order Value ("AOV") represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
— Direct-to-Consumer Segment
The operating results of our Direct-to-Consumer ("DTC") segment were as follows (in thousands, except performance metrics data):
| Nine Months Ended March 31, · 2025 · 2024 · Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| $ · % of revenue · $ · % of revenue · $ · % | |||||||||
| Revenues | $1,631,201(a) | 100.000% | $1,031,851(b) | 100.000% | $599,350 | 58.1% | |||
| Gross profit | 73,651 | 4.515% | 61,219 | 5.933% | $12,432 | 20.3% | |||
| Selling, general, and administrative expenses | (43,366) | (2.659%) | (32,569) | (3.156%) | $10,797 | 33.2% | |||
| Depreciation and amortization expense | (11,648) | (0.714%) | (7,209) | (0.699%) | $4,439 | 61.6% | |||
| Interest income | 123 | 0.008% | — | —% | $123 | —% | |||
| Interest expense | (1,713) | (0.105%) | (2,475) | (0.240%) | $(762) | (30.8%) | |||
| Other income, net | — | —% | 5 | 0.000% | $(5) | (100.0%) | |||
| Unrealized losses on foreign exchange | (785) | (0.048%) | — | —% | $(785) | —% | |||
| Net income before provision for income taxes | $16,262 | 0.997% | $18,971 | 1.839% | $(2,709) | (14.3%) | |||
| Performance Metrics: | |||||||||
| Gold ounces sold(1) | 380,000 | 340,000 | 40,000 | 11.8% | |||||
| Silver ounces sold(2) | 12,678,000 | 9,964,000 | 2,714,000 | 27.2% | |||||
| Number of new customers(3) | 1,020,300 | 148,200 | 872,100 | 588.5% | |||||
| Number of active customers(4) | 410,700 | 368,800 | 41,900 | 11.4% | |||||
| Number of total customers(5) | 4,087,100 | 2,496,500 | 1,590,600 | 63.7% | |||||
| DTC ticket volume from new customers(6) | 128,317 | 100,403 | 27,914 | 27.8% | |||||
| DTC ticket volume from pre-existing customers(7) | 407,236 | 365,687 | 41,549 | 11.4% | |||||
| DTC total ticket volume(8) | 535,553 | 466,090 | 69,463 | 14.9% | |||||
| DTC average order value(9) | $3,080 | $2,253 | $827 | 36.7% | |||||
| JMB average order value(9) | $2,077 | $2,093 | $(16) | (0.8%) | |||||
(a)
Includes $122.2 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(b)
Includes $6.2 million of inter-segment sales from the Direct-to-Consumer segment to the Wholesale Sales & Ancillary Services segment.
(1)
Gold ounces sold represents the ounces of gold product sold and delivered during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. Pinehurst's metrics are included after February 28, 2025.
(2)
Silver ounces sold represents the ounces of silver product sold and delivered during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. Pinehurst's metrics are included after February 28, 2025.
(3)
Number of new customers represents the number of customers that have registered or set up a new account or made a purchase for the first time during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(4)
Number of active customers represents the number of customers that have made a purchase during any month during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(5)
Number of total customers represents the aggregate number of customers that have registered or set up an account or have made a purchase in the past. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(6)
Ticket volume from new customers represents the number of product orders from new customers processed by JMB, Goldline, SGB, and PMPP during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(7)
Ticket volume from pre-existing customers represents the total number of product orders from pre-existing customers processed by JMB, Goldline, SGB, and PMPP during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(8)
Total ticket volume represents the total number of product orders processed by JMB, Goldline, SGB, SGI, Pinehurst, and PMPP during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
(9)
Average Order Value ("AOV") represents the average dollar value of product orders (excluding accumulation program orders) delivered to the customer during the period. SGB's metrics are included after the Company acquired a controlling interest on June 21, 2024. SGI's and Pinehurst's metrics are included after February 28, 2025.
Revenues — Direct-to-Consumer
| in thousands, except performance metrics | |||||||
|---|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | |||||||
| $ · % of revenue · $ · % of revenue · $ · % | |||||||
| Revenues | $574,089 | 100.000% | $335,674 | 100.000% | $238,415 | 71.0% | |
| Performance Metrics: | |||||||
| Gold ounces sold | 134,000 | 107,000 | 27,000 | 25.2% | |||
| Silver ounces sold | 3,771,000 | 3,177,000 | 594,000 | 18.7% | |||
| Number of new customers | 899,600 | 56,600 | 843,000 | 1,489.4% | |||
| Number of active customers | 140,700 | 126,000 | 14,700 | 11.7% | |||
| Number of total customers | 4,087,100 | 2,496,500 | 1,590,600 | 63.7% | |||
| DTC ticket volume from new customers | 45,280 | 39,150 | 6,130 | 15.7% | |||
| DTC ticket volume from pre-existing customers | 142,491 | 120,836 | 21,655 | 17.9% | |||
| DTC total ticket volume | 187,771 | 159,986 | 27,785 | 17.4% | |||
| DTC average order value | $3,084 | $2,133 | $951 | 44.6% | |||
| JMB average order value | $1,994 | $2,003 | $(9) | (0.4%) | |||
Revenues for the three months ended March 31, 2025 increased $238.4 million, or 71.0%, to $574.1 million from $335.7 million in 2024. The increase in revenue was due to an increase in gold and silver ounces sold and an increase in average selling prices of gold and silver. For the three months ended March 31, 2025, revenue from Goldline, PMPP, SGB, SGI, and Pinehurst, in the aggregate, was higher by $262.8 million as compared to the prior year, primarily related to acquiring SGI and Pinehurst in February 2025 and a controlling interest in SGB in June 2024. For the three months ended March 31, 2025, JMB's revenue decreased $24.4 million as compared to the prior year.
Gold ounces sold for the three months ended March 31, 2025 increased 27,000 ounces, or 25.2%, to 134,000 ounces from 107,000 ounces in 2024. Silver ounces sold for the three months ended March 31, 2025 increased 594,000 ounces, or 18.7%, to 3,771,000 ounces from 3,177,000 ounces in 2024.
Gold ounces sold by Goldline, PMPP, SGB, and Pinehurst, in the aggregate, increased 56,500 ounces for the three months ended March 31, 2025 compared to 2024 primarily due to the Company acquiring a controlling interest in SGB in June 2024. Gold ounces sold by JMB decreased 29,500 ounces for the three months ended March 31, 2025 compared to 2024. Silver ounces sold by Goldline, PMPP, SGB, and Pinehurst, in the aggregate, increased 1,610,000 ounces for the three months ended March 31, 2025 compared to 2024 primarily due to the Company acquiring a controlling interest in SGB in June 2024 and Pinehurst in February 2025. Silver ounces sold by JMB decreased 1,016,000 ounces for the three months ended March 31, 2025 compared to 2024.
On average, selling prices for gold increased by 24.8% and selling prices for silver increased by 31.4% during the three months ended March 31, 2025 as compared to the prior year.
The number of new customers for the three months ended March 31, 2025 increased 843,000, or 1,489.4% to 899,600 from 56,600 in 2024. The number of active customers for the three months ended March 31, 2025 increased 14,700, or 11.7% to 140,700 from 126,000 in 2024. The number of total customers as of March 31, 2025 increased 1,590,600, or 63.7% to 4,087,100 from 2,496,500 as of March 31, 2024. These changes in customer-based metrics were primarily due to the acquisition of SGB's customers upon the Company acquiring a controlling interest in June 2024, the acquisitions of SGI's and Pinehurst's customers in February 2025, as well as JMB's activity.
As of March 31, 2025, the number of total CyberMetals customers was 35,100, and CyberMetals customer assets under management were $9.7 million.
For the three months ended March 31, 2025, the Direct-to-Consumer ticket volume related to new customers increased by 6,130 tickets, or 15.7%, to 45,280 tickets from 39,150 tickets in 2024. For the three months ended March 31, 2025, Direct-to-Consumer ticket volume related to pre-existing customers increased by 21,655 tickets, or 17.9%, to 142,491 tickets from 120,836 tickets in 2024. For the three months ended March 31, 2025, the Direct-to-Consumer total ticket volume increased by 27,785 tickets, or 17.4%, to 187,771 tickets from 159,986 tickets in 2024. These changes in ticket volumes were primarily due to our acquisition of a controlling interest in SGB in June 2024, the acquisitions of SGI and Pinehurst in February 2025, as well as JMB's activity.
For the three months ended March 31, 2025, the Direct-to-Consumer average order value increased by $951, or 44.6%, to $3,084 from $2,133 in 2024.
| in thousands, except performance metrics | |||||||
|---|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | |||||||
| $ · % of revenue · $ · % of revenue · $ · % | |||||||
| Revenues | $1,631,201 | 100.000% | $1,031,851 | 100.000% | $599,350 | 58.1% | |
| Performance Metrics: | |||||||
| Gold ounces sold | 380,000 | 340,000 | 40,000 | 11.8% | |||
| Silver ounces sold | 12,678,000 | 9,964,000 | 2,714,000 | 27.2% | |||
| Number of new customers | 1,020,300 | 148,200 | 872,100 | 588.5% | |||
| Number of active customers | 410,700 | 368,800 | 41,900 | 11.4% | |||
| Number of total customers | 4,087,100 | 2,496,500 | 1,590,600 | 63.7% | |||
| DTC ticket volume from new customers | 128,317 | 100,403 | 27,914 | 27.8% | |||
| DTC ticket volume from pre-existing customers | 407,236 | 365,687 | 41,549 | 11.4% | |||
| DTC total ticket volume | 535,553 | 466,090 | 69,463 | 14.9% | |||
| DTC average order value | $3,080 | $2,253 | $827 | 36.7% | |||
| JMB average order value | $2,077 | $2,093 | $(16) | (0.8%) | |||
Revenues for the nine months ended March 31, 2025 increased $599.4 million, or 58.1%, to $1.631 billion from $1.032 billion in 2024. The increase in revenue was due to an increase in gold and silver ounces sold as well as by higher average selling prices of gold and silver. For the nine months ended March 31, 2025, revenue of Goldline, SGB, Pinehurst, SGI, and PMPP, in the aggregate, was higher by $639.2 million as compared to the prior year, primarily related to acquiring SGI and Pinehurst in February 2025 and a controlling interest in SGB in June 2024. For the nine months ended March 31, 2025, JMB's revenue decreased $39.8 million as compared to the prior year.
Gold ounces sold for the nine months ended March 31, 2025 increased 40,000 ounces, or 11.8%, to 380,000 ounces from 340,000 ounces in 2024. Silver ounces sold for the nine months ended March 31, 2025 increased 2,714,000 ounces, or 27.2%, to 12,678,000 ounces from 9,964,000 ounces in 2024.
Gold ounces sold by Goldline, PMPP, SGB, and Pinehurst, in the aggregate, increased 134,100 ounces compared to 2024, primarily due to the Company acquiring a controlling interest in SGB in June 2024. Gold ounces sold by JMB decreased 94,100 ounces for the nine months ended March 31, 2025 compared to 2024. Silver ounces sold by Goldline, PMPP, SGB, and Pinehurst, in the aggregate, increased 4,966,000 ounces compared to 2024, primarily due to the Company acquiring a controlling interest in SGB in June 2024 and Pinehurst in February 2025. Silver ounces sold by JMB decreased 2,252,000 ounces for the nine months ended March 31, 2025 compared to 2024.
On average, selling prices for gold increased by 26.7% and selling prices for silver increased by 28.9% during the nine months ended March 31, 2025 as compared to the prior year.
The number of new customers for the nine months ended March 31, 2025 increased 872,100, or 588.5%, to 1,020,300 from 148,200 in 2024. The number of active customers for the nine months ended March 31, 2025 increased 41,900, or 11.4% to 410,700 from 368,800 in 2024. The number of total customers as of March 31, 2025 increased 1,590,600, or 63.7% to 4,087,100 from 2,496,500 as of March 31, 2024. These changes in customer-based metrics were primarily due to the acquisition of SGB's customers upon the Company acquiring a controlling interest in June 2024, the acquisitions of SGI's and Pinehurst's customers in February 2025, as well as JMB's activity.
As of March 31, 2025, the number of total CyberMetals customers was 35,100, and CyberMetals customer assets under management were $9.7 million.
For the nine months ended March 31, 2025, the Direct-to-Consumer ticket volume related to new customers increased by 27,914 tickets, or 27.8%, to 128,317 tickets from 100,403 tickets in 2024. For the nine months ended March 31, 2025, Direct-to-Consumer ticket volume related to pre-existing customers increased by 41,549 tickets, or 11.4%, to 407,236 tickets from 365,687 tickets in 2024. For the nine months ended March 31, 2025, the Direct-to-Consumer total ticket volume increased by 69,463 tickets, or 14.9%, to 535,553 tickets from 466,090 tickets in 2024. These changes in ticket volumes were primarily due to our acquisition of a controlling interest in SGB in June 2024, the acquisitions of SGI and Pinehurst in February 2025, as well as JMB's activity.
For the nine months ended March 31, 2025, the Direct-to-Consumer average order value increased by $827, or 36.7%, to $3,080 from $2,253 in 2024.
Gross Profit — Direct-to-Consumer
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Gross profit | $25,165 | 4.383% | $18,004 | 5.364% | $7,161 | 39.8% |
Gross profit for the three months ended March 31, 2025 increased by $7.2 million, or 39.8%, to $25.2 million from $18.0 million in 2024. The increase in gross profit was mainly due to gross profit recognized as a result of our acquisition of a controlling interest in SGB in June 2024 and higher ticket volume during the period, partially offset by a lower gross profit margin percentage.
For the three months ended March 31, 2025, the Direct-to-Consumer segment's profit margin percentage decreased by 98.1 basis points to 4.383% from 5.364% in 2024. The decrease in the gross profit margin percentage was primarily due to our acquisition of a controlling interest in SGB.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Gross profit | $73,651 | 4.515% | $61,219 | 5.933% | $12,432 | 20.3% |
Gross profit for the nine months ended March 31, 2025 increased by $12.4 million, or 20.3%, to $73.7 million from $61.2 million in 2024. The increase in gross profit was mainly due to gross profit recognized as a result of our acquisition of a controlling interest in SGB in June 2024 and higher ticket volume during the period, partially offset by a lower gross profit margin percentage.
For the nine months ended March 31, 2025, the Direct-to-Consumer segment's profit margin percentage decreased by 141.8 basis points to 4.515% from 5.933% in 2024. The decrease in the gross profit margin percentage was primarily due to our acquisition of a controlling interest in SGB, as well as lower gross profit percentages of JMB and Goldline.
Selling, General and Administrative Expense — Direct-to-Consumer
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Selling, general, and administrative expenses | $(15,717) | (2.738%) | $(10,259) | (3.056%) | $5,458 | 53.2% |
Selling, general and administrative expenses for the three months ended March 31, 2025 increased $5.5 million, or 53.2%, to $15.7 million from $10.3 million in 2024. The change was primarily due to: (i) an increase in compensation expense (including performance-based accruals) of $2.6 million, (ii) an increase in advertising costs of $1.0 million, (iii) higher consulting and professional fees of $0.7 million, (iv) an increase in insurance costs of $0.4 million, and (v) an increase in facilities expenses of $0.3 million. Selling, general and administrative expenses for the three months ended March 31, 2025 include expenses incurred by SGB, SGI, and Pinehurst which were not included in the same year-ago period as these were not yet consolidated subsidiaries for the full period.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Selling, general, and administrative expenses | $(43,366) | (2.659%) | $(32,569) | (3.156%) | $10,797 | 33.2% |
Selling, general, and administrative expenses for the nine months ended March 31, 2025 increased $10.8 million, or 33.2%, to $43.4 million from $32.6 million in 2024. The change was primarily due to: (i) an increase in compensation expense (including performance-based accruals) of $4.3 million, (ii) an increase in advertising costs of $2.8 million, (iii) higher consulting and professional fees of $1.4 million, (iv) an increase in insurance costs of $0.7 million, (v) an increase in facilities expenses of $0.6 million, and (vi) an increase in information technology costs of $0.3 million. Selling, general and administrative expenses for the nine months ended March 31, 2025 include expenses incurred by SGB, SGI, and Pinehurst which were not included in the same year-ago period as these were not yet consolidated subsidiaries for the full period.
Depreciation and Amortization Expense — Direct-to-Consumer
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Depreciation and amortization expense | $(3,912) | (0.681%) | $(2,392) | (0.713%) | $1,520 | 63.5% |
Depreciation and amortization expense for the three months ended March 31, 2025, increased $1.5 million, or 63.5%, to $3.9 million from $2.4 million in 2024 primarily due to an increase in amortization expense of $1.8 million relating to intangible assets acquired through our acquisition of a controlling interest in SGB, partially offset by a $0.6 million decrease in JMB’s intangible asset amortization expense.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Depreciation and amortization expense | $(11,648) | (0.714%) | $(7,209) | (0.699%) | $4,439 | 61.6% |
Depreciation and amortization expense for the nine months ended March 31, 2025, increased $4.4 million, or 61.6%, to $11.6 million from $7.2 million in 2024 primarily due to an increase in amortization expense of $5.7 million relating to intangible assets acquired through our acquisition of a controlling interest in SGB, partially offset by a $1.7 million decrease in JMB’s intangible asset amortization expense.
Interest expense — Direct-to-Consumer
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Interest expense | $(532) | (0.093%) | $(580) | (0.173%) | $(48) | (8.3%) |
Interest expense for the three months ended March 31, 2025 decreased $0.0 million to $0.5 million from $0.6 million in 2024. The decrease in interest expense was not significant.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of revenue | $ | % of revenue | $ | % | |
| Interest expense | $(1,713) | (0.105%) | $(2,475) | (0.240%) | $(762) | (30.8%) |
Interest expense for the nine months ended March 31, 2025 decreased $0.8 million to $1.7 million from $2.5 million in 2024. The decrease is primarily related to the DTC segment's reduced product financing activity with the Wholesale & Ancillary Services segment.
Results of Operations — Secured Lending Segment
The Company operates its Secured Lending segment through its wholly-owned subsidiaries, Collateral Finance Corporation, LLC ("CFC") and CFC Alternative Investments (“CAI”). AM Capital Funding, LLC (“AMCF”), previously a wholly-owned subsidiary of CFC, was formed for the issuance of certain notes, which were repaid in December 2023. AMCF was dissolved in June 2024.
— Secured Lending Segment
The operating results of our Secured Lending segment were as follows (in thousands, except performance metrics data):
| Three Months Ended March 31, · 2025 · 2024 · Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| $ · % of interestincome · $ · % of interestincome · $ · % | |||||||||
| Interest income | $2,614 | 100.000% | $3,006 | 100.000% | $(392) | (13.0%) | |||
| Interest expense | (1,378) | (52.716%) | (2,061) | (68.563%) | $(683) | (33.1%) | |||
| Selling, general, and administrative expenses | (262) | (10.023%) | (393) | (13.074%) | $(131) | (33.3%) | |||
| Depreciation and amortization expense | — | —% | (83) | (2.761%) | $83 | 100.0% | |||
| Earnings from equity method investments | 42 | 1.607% | 17 | 0.566% | $25 | 147.1% | |||
| Other income, net | 34 | 1.301% | 318 | 10.579% | $(284) | (89.3%) | |||
| Net income before provision for income taxes | $1,050 | 40.168% | $804 | 26.747% | $246 | 30.6% | |||
| Performance Metric: | |||||||||
| Number of secured loans at period end(1) | 491 | 675 | (184) | (27.3%) | |||||
(1)
Number of outstanding secured loans to customers at the end of the period.
— Secured Lending Segment
The operating results of our Secured Lending segment were as follows (in thousands, except performance metrics data):
| Nine Months Ended March 31, · 2025 · 2024 · Change | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| $ · % of interestincome · $ · % of interestincome · $ · % | |||||||||
| Interest income | $8,260 | 100.000% | $8,438 | 100.000% | $(178) | (2.1%) | |||
| Interest expense | (4,992) | (60.436%) | (6,434) | (76.250%) | $(1,442) | (22.4%) | |||
| Selling, general, and administrative expenses | (842) | (10.194%) | (1,160) | (13.747%) | $(318) | (27.4%) | |||
| Depreciation and amortization expense | (4) | (0.048%) | (259) | (3.069%) | $(255) | (98.5%) | |||
| Earnings from equity method investments | 118 | 1.429% | 11 | 0.130% | $107 | 972.7% | |||
| Other income, net | 760 | 9.201% | 864 | 10.239% | $(104) | (12.0%) | |||
| Net income before provision for income taxes | $3,300 | 39.952% | $1,460 | 17.303% | $1,840 | 126.0% | |||
| Performance Metric: | |||||||||
| Number of secured loans at period end(1) | 491 | 675 | (184) | (27.3%) | |||||
(1)
Number of outstanding secured loans to customers at the end of the period.
Interest Income — Secured Lending
| in thousands, except performance metric | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of interestincome | $ | % of interestincome | $ | % | |
| Interest income | $2,614 | 100.000% | $3,006 | 100.000% | $(392) | (13.0%) |
| Performance Metric | ||||||
| Number of secured loans at period-end | 491 | 675 | (184) | (27.3%) | ||
Interest income for the three months ended March 31, 2025 decreased $0.4 million, or 13.0%, to $2.6 million from $3.0 million in 2024. The decrease in interest income earned from the segment’s secured loan portfolio was primarily due to lower average monthly loan balances as well as fewer loans outstanding. The number of secured loans outstanding decreased by 184, or 27.3%, to 491 from 675 as of March 31, 2024.
| in thousands, except performance metric | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of interestincome | $ | % of interestincome | $ | % | |
| Interest income | $8,260 | 100.000% | $8,438 | 100.000% | $(178) | (2.1%) |
| Performance Metric | ||||||
| Number of secured loans at period-end | 491 | 675 | (184) | (27.3%) | ||
Interest income for the nine months ended March 31, 2025 decreased $0.2 million, or 2.1%, to $8.3 million from $8.4 million in 2024. The decrease in interest income earned from the segment’s secured loan portfolio was primarily due to lower average monthly loan balances as well as fewer loans outstanding. The number of secured loans outstanding decreased by 184, or 27.3% to 491 from 675 as of March 31, 2024.
Interest Expense — Secured Lending
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of interestincome | $ | % of interestincome | $ | % | |
| Interest expense | $(1,378) | (52.716%) | $(2,061) | (68.563%) | $(683) | (33.1%) |
Interest expense for the three months ended March 31, 2025 decreased $0.7 million, or 33.1%, to $1.4 million from $2.1 million in 2024. The change was primarily due to a decrease of $0.6 million in connection with our Trading Credit Facility.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of interestincome | $ | % of interestincome | $ | % | |
| Interest expense | $(4,992) | (60.436%) | $(6,434) | (76.250%) | $(1,442) | (22.4%) |
Interest expense for the nine months ended March 31, 2025 decreased $1.4 million, or 22.4%, to $5.0 million from $6.4 million in 2024. The change was primarily due to: (i) a decrease of $1.0 million related to the AMCF Notes (including amortization of debt issuance costs) due to their repayment in December 2023 and by (ii) a decrease of $0.3 million in connection with our Trading Credit Facility.
Selling, General and Administrative Expenses — Secured Lending
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Three Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of interestincome | $ | % of interestincome | $ | % | |
| Selling, general, and administrative expenses | $(262) | (10.023%) | $(393) | (13.074%) | $(131) | (33.3%) |
Selling, general, and administrative expenses for the three months ended March 31, 2025 decreased $0.1 million, or 33.3%, to $0.3 million from $0.4 million in 2024. The change in selling, general, and administrative expenses was not significant.
| in thousands | ||||||
|---|---|---|---|---|---|---|
| Nine Months Ended March 31, · 2025 · 2024 · Change | ||||||
| $ | % of interestincome | $ | % of interestincome | $ | % | |
| Selling, general, and administrative expenses | $(842) | (10.194%) | $(1,160) | (13.747%) | $(318) | (27.4%) |
Selling, general, and administrative expenses for the nine months ended March 31, 2025 decreased $0.3 million, or 27.4%, to $0.8 million from $1.2 million in 2024. The change in selling, general, and administrative expenses was not significant.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.