Gold.com, Inc. Q4 FY2025 Earnings Call

Good afternoon, and welcome to A-Mark Precious Metals Conference Call for the Fiscal Fourth Quarter and Full Year ended June 30, 2025. My name is John, and I will be your operator this afternoon. Before this call, A-Mark issued its results for the fiscal fourth quarter and full year 2025 in a press release, which is available in the Investor Relations section of the company's website at www.amark.com. You can find the link to the Investor Relations section at the top of the home page. Joining us for today's call are A-Mark's CEO, Greg Roberts; President, Thor Gjerdrum; and CFO, Cary Dickson. Following their remarks, we will open the call to your questions. Then before we conclude the call, I'll provide the necessary cautions regarding the forward-looking statements made by management during this call. I would like to remind everyone that this call is being recorded and will be made available for replay via a link available in the Investor Relations section of A-Mark's website. Now, I would like to turn the call over to A-Mark's CEO, Mr. Greg Roberts. Sir, please proceed.

Thank you, John, and good afternoon to everyone. Thanks once again for joining our call. As we reported in our earnings release today, our fourth quarter and fiscal year 2025 results underscore the ability of our fully integrated platform to generate positive results during challenging market conditions. Despite the ongoing uncertainty in the physical markets, which has led to increased supply and range-bound premium spreads, we reported $17.3 million of net income non-GAAP adjusted net income before provision for income taxes of $53.1 million, non-GAAP earnings before interest taxes, depreciation and amortization of $64.4 million and diluted EPS of $0.71 per share for our fiscal year 2025. For the fourth quarter of 2025, we generated $10.3 million of net income, non-GAAP adjusted net income before provisions for income taxes of $19.2 million, non-GAAP earnings before interest taxes, depreciation and amortization of $29.2 million and diluted EPS of $0.41 per share. Our fourth quarter results improved from the previous quarter with a 99% increase in gross profit, a 233% increase in non-GAAP adjusted net income and a 2,167% increase in non-GAAP EBITDA, reflecting the benefit of our recent strategic acquisitions. We have made steady progress bringing Spectrum Group International, AMS Holdings, and Pinehurst Coin Exchange under the A-Mark umbrella, managing inventory levels and completing automation upgrades at our AMGL facility with centralized operations now in place. We completed the migration of Pinehurst logistics operations from North Carolina to AMGL in Las Vegas. One example of our cost savings synergies we expect to achieve from our recent acquisitions. As we continue to progress our integration initiatives, the scale and efficiencies we're achieving will help to optimize expenses, create greater operating leverage, and maintain costs at more optimal levels going forward. We have also made significant progress in our expansion into Asia with LPM, now fully operational in Singapore across both wholesale and e-commerce channels, further broadening our reach into the Southeast Asian market. We believe these acquisitions, combined with our growing international presence, strengthen our distribution channels and expand our reach into higher-margin collectible and luxury segments. With a broader and more diversified platform, improved operational leverage and a strong balance sheet, we enter the new fiscal year well positioned to capture growth across multiple channels. Now, I will hand the call over to our new CFO, Cary Dickson, who will provide a more detailed financial overview of our results. Then A-Mark's President, Thor Gjerdrum, will discuss our key operating metrics. Afterwards, I will provide further updates on our business growth and strategy for the upcoming fiscal year and then take your questions. Cary?

Thank you, Greg, and good afternoon everyone. Our revenues for the fourth quarter of fiscal '25 decreased by 1% to $2.51 billion from $2.52 billion in the fourth quarter of last year. Excluding a reduction of $94 million in forward sales, revenues increased by $81 million or 5%, due to higher average selling prices for gold and silver, although this was offset by a decrease in the number of gold and silver ounces sold. For the full year, our revenues grew by 1.3% to $10.98 billion from $9.7 billion in the previous fiscal year. Excluding an increase of $446 million in forward sales, our revenues rose by $832.9 million or 15%, driven by higher average selling prices of gold and silver, partially offset by a decrease in gold and silver ounces sold. Revenues also benefited from acquiring a controlling interest in Silver Gold Bull in June '24, as well as the acquisitions of Spectrum Group International and Pinehurst Coin Exchange in February '25, and AMS Holdings in April '25. Gross profit for the fourth quarter of fiscal '25 increased 90% to $81.7 million or 3.25% of revenue, up from $43.0 million or 1.7% of revenue in Q4 of last year. This increase was largely due to the acquisition of SGB and the acquisitions of SGI and Pinehurst in February '25, along with AMS in April '25. For the full fiscal year, gross profit rose by 22% to $210.9 million or 1.92% of revenue, compared to $173.3 million or 1.79% of revenue last year. The increase was attributed to higher profits from our direct-to-consumer segment, partially offset by lower profits in our wholesale sales and ancillary services segment. SG&A expenses for Q4 of fiscal '25 rose 135% to $53.4 million from $22.7 million in Q4 of last year. The increase was mainly driven by higher compensation expenses, including performance-based accruals of $17.6 million, higher advertising costs of $5.3 million, and increased consulting and professional fees of $3.1 million, along with other expenses. SG&A expenses also included costs from SGB, SGI, Pinehurst, and AMS that were either not included or only partially included in the same quarter of the previous year. For the full fiscal year, SG&A expenses increased 55% to $139 million from $89.8 million in the prior fiscal year. The rise was mainly due to increased compensation expenses, including performance-based accruals of $24.1 million, as well as rises in consulting and professional fees of $9.1 million, advertising costs of $8.4 million, facilities expenses of $3.0 million, and other costs. SG&A expenses included amounts related to LPM, SGB, SGI, Pinehurst, and AMS that were not fully accounted for in the same quarter a year ago. Depreciation and amortization expense for Q4 of fiscal '25 increased 201% to $8.6 million from $2.8 million in Q4 of last year, primarily due to a $6 million increase in amortization related to intangible assets from the SGB acquisition and the recent acquisitions of AMS and SGI. For the full fiscal year, depreciation and amortization expenses increased by 101% to $22.9 million from $11.4 million in the last fiscal year, mainly due to a $12.9 million increase in amortization for intangible assets related to our acquisitions, alongside a $1.8 million rise in depreciation from increased capital expenditures, partially offset by a $3.1 million decrease in JMV intangible asset amortization. Interest income for Q4 of fiscal '25 fell by 34% to $5.3 million from $8.1 million in Q4 of last year, mainly due to reduced interest earned from repurchase agreements and other finance products. For the full fiscal year, interest income decreased by 4% to $25.9 million from $27.2 million last fiscal year, primarily because of lowered interest income from our Secured Lending segment and other finance product income. Interest expense for Q4 of '25 rose 34% to $12.9 million from $9.6 million in Q4 of last year, with the increase largely resulting from higher total borrowings related to precious metal leases, a trading credit facility, and product financing agreements. For the full fiscal year, interest expense increased 17% to $46.2 million from $39.5 million in the last fiscal year, driven primarily by higher total borrowings associated with precious metal leases and financing agreements, partially offset by the repayment of AM Capital funding notes in December 2023. Earnings from equity method investments in Q4 saw a 201% decrease to a loss of $0.8 million from earnings of $0.8 million in Q4 of last year. For the entire fiscal year, earnings from equity method investments decreased 170% to a loss of $2.8 million from earnings of $4.0 million in the previous fiscal year, due to lower earnings from our equity method investees. Net income on a GAAP basis attributable to the company for the fourth quarter of fiscal '25 was $10.3 million or $0.41 per diluted share, compared to $30.9 million or $0.29 per diluted share in Q4 of last year. For the full fiscal year, net income on a GAAP basis attributable to the company was $17.3 million or $0.71 per diluted share, compared to $68.5 million or $2.84 per diluted share last fiscal year. Adjusted net income before provision for income taxes, a non-GAAP performance measure excluding depreciation, amortization, acquisition costs, remeasurement gains or losses, and contingent consideration fair value adjustments for Q4 fiscal '25 was $19.2 million, a 5% decrease from $20.1 million in the same quarter of the previous year. Adjusted net income before provision for income taxes for the full fiscal year was $53.1 million, a 34% decrease from $80.3 million in the prior fiscal year. EBITDA, another non-GAAP liquidity measure excluding interest, taxes, depreciation, and amortization for Q4 fiscal '25 was $29.2 million, representing a 24% decrease from $38.4 million in Q4 of fiscal '24. EBITDA for the full fiscal year totaled $64.4 million, a 40% decrease from $106.5 million last fiscal year. Moving on to our balance sheet, at the end of the fiscal year, we had $77.7 million in cash compared to $48.6 million at the end of fiscal '24. Our non-restricted inventories totaled $794.8 million, an increase of $215 million from $579.4 million at the end of last fiscal year. This concludes my financial summary. Now, I will hand it over to Thor for an update on our key operating metrics. Thor?

Thank you, Cary. Looking at our key operational metrics for the fourth quarter and full year 2025, we sold 346,000 ounces of gold in Q4 fiscal 2025, which is down 23% from Q4 of last year and down 20% from the prior quarter. For the full fiscal year, we sold 1.6 million ounces of gold, which was down 11% from last fiscal year. We sold 15.7 million ounces of silver in Q4 fiscal 2025, which was down 38% from Q4 of last year and down 0.2% from the prior quarter. For the full fiscal year, we sold 73.6 million ounces of silver, which was down 32% from last year. The number of new customers in the DTC segment, which is defined as those who register, set up a new account, or made a purchase for the first time during the period, was 108,900 in Q4 fiscal 2025, which was down 81% from Q4 of last year and decreased 88% from last quarter. For the 3 months ended June 30, 2025, and June 30, 2024, approximately 30% and 92% of the new customers were attributable to the acquisition of AMS and the acquisition of a controlling interest in SGB, respectively. For the 3 months ended March 31, 2025, approximately 84% and 9% of the new customers were attributable to the acquisitions of Pinehurst and SGI, respectively. For the full fiscal year, the number of new customers in the DTC segment was 1,129,200, a 57% increase from the 718,500 new customers in the prior fiscal year. Approximately 79% of the new customers for the fiscal year ended June 30, 2025, were attributable to the acquisitions of SGI, Pinehurst, and AMS. Approximately 73% of new customers in fiscal year 2024 were attributable to the acquisition of a controlling interest in SGB. The number of total customers in the DTC segment at the end of the fourth quarter was approximately 4.2 million, a 37% increase from the prior year. The year-over-year increase in total customers was due to the acquisitions of SGI, Pinehurst, and AMS as well as the organic growth of our JMB customer base. The DTC segment average order value, which represents the average dollar amount of products ordered, excluding accumulation program orders delivered to customers during Q4 fiscal 2025, was $2,443, which is down 15% from Q4 fiscal 2024 and down 21% from the prior quarter. For the full fiscal year, our DTC average order value was $2,886, which was up 19% from fiscal 2024. For the fiscal fourth quarter, our inventory turn ratio was 1.9, which was a 17% decrease from 2.3 in Q4 of last year and a 21% decrease from 2.4 in the prior quarter. For the full fiscal year, our inventory turn ratio was 9.1, a 1% decrease from the 9.2% last fiscal year. And finally, the number of secured loans as of June 30, 2025, totaled 445, a decrease of 9% from March 31, 2025, and a decrease of 24% from June 30, 2024. Our secured loan receivable balance at the end of fiscal year was $94 million, a 9% decrease from March 31, 2025, and a 70% decrease from June 30, 2024. That concludes my prepared remarks. I'll now turn it over to Greg for closing remarks. Greg?

Thank you, Thor, and Cary. Our recent acquisitions and growing international presence have strengthened our competitive position while expanding our footprint into higher-margin luxury segments. Our investment in infrastructure and automation technology at our Las Vegas facility has enabled us to centralize our operations, manage costs, and allows us to scale up as market conditions evolve. Looking ahead to fiscal 2026 with our expanded brand portfolio and ongoing integration and optimization opportunities, we remain confident in A-Mark's long-term trajectory and our continuing ability to deliver shareholder value. That concludes my remarks. Operator, we can now open the line for questions.

Our first question comes from Thomas Forte with Maxim Group.

So 3 questions for me. I'll go one at a time. The first one is a high-level question. You had indicated and you saw in the quarter an improvement in the performance versus the prior quarter. At a high level, though, I was curious where you think we are in the cycle right now.

We experienced strong results in April, but May and June were a bit slower. As we've mentioned over the past few quarters, the ongoing high spot prices have led to increased carry costs for A-Mark, along with challenges related to the premiums on our silver products. We are still facing these issues. I remain hopeful that our efforts to integrate our acquisitions and reduce expenses will eventually yield positive results. However, the market conditions have remained consistent with what we've seen in the past three to six months.

Okay. And then for my second, you did engage in a lot of strategic M&A over the last 12, 18 months. Where are your thoughts today? It seems like you have more opportunities to take advantage of, but I don't know if you feel like you need to digest what you just did. But what are your current thoughts on strategic M&A?

I mean I think we're always looking for opportunities, and there are still opportunities in the pipeline that we're looking at. I do believe that we closed 3 acquisitions in our Q3, and we did digest those, and we do believe that we've made good progress in integrating them, although we're not complete yet. I think that the team at A-Mark has done a great job with the integration, and I believe that we are ready to digest something else if the opportunity presented itself. And we're just trying to, as usual, balance our capital allocation between inventory and acquisitions and continuing to optimize what we've already purchased. So work is ongoing in all areas, but I certainly wouldn't shut the door on future acquisitions. I've said before for quite some time that when the market is slow, we believe that opportunities will present themselves and that the acquisitions that we can make now when the market is slower are a lot easier for us to digest and grow and expand than making an acquisition when the market is very hot. So feeling good about it. Door is open and looking for opportunities.

All right. So 2 more. I just thought of one more I wanted to ask quickly. So I think that the answer to this one is that they're still in their early days, but some of the acquisitions you did were intended to give you some element of countercyclicality. So where are we with those efforts?

I think particularly in the Stack's Bowers area, we just concluded our largest sale in history on the Rare Coin auction side last Friday. It was a $62 million sale over nine days. We sold over 14,000 lots, which is a very good result. The team at Stack’s Bowers did excellent work getting that auction ready. The rare coin market is very strong right now. Regarding the counter-cyclical nature you mentioned, it appears we are gaining more from the higher-margin rare coins than from the 1-ounce silver rounds. I believe the strategy is sound, the acquisitions were appropriate and well-timed, and we just need to continue expanding on them.

Great. One last question. It wasn't clear to me in the prepared remarks; I apologize if it was clear and I just missed it. Have you completely upgraded your Vegas distribution center? I know you're implementing some impressive technology – is that done?

Yes. I would say we're 95% complete. From an infrastructure standpoint, we are complete. We continue to work on the software and IT side of it, integrating all of our different customers and all of our internal DTC customers, we are integrating that, but it is operational. And I would say that, like I said, it's mostly complete. We're very happy. The increased capacity and cost savings have been everything we expected it to be. We have been able to onboard a number of new clients there, which ultimately in the long term is going to translate into more business and give us an opportunity to take market share when the market heats up.

The next question comes from Mike Baker with D.A. Davidson.

Okay. I have a few questions. To start with the broader perspective, Greg mentioned at the outset that the environment continues to be weak or slow. Can you provide us with a reminder of what constitutes a favorable environment for your company? From an external viewpoint, what indicators should we look for to signal that the situation is improving? In April, there was significant volatility around Liberation Day, but it seems to have stabilized since then. Is the world currently just too favorable, or what factors contribute to creating a good environment for your business?

The equities market is very favorable at the moment, and many people are taking advantage of it due to the strong returns. Although April saw significant volatility, our business performed well in the first ten days. However, current uncertainties surrounding tariffs, interest rates, and financing costs have been negatively impacted by various strategies of the current administration. While volatility and some uncertainty in the equity markets would benefit us, larger macroeconomic factors that typically favor us include fear and uncertainty. Our last significant growth phase came during the Silicon Valley Bank crisis. Nonetheless, we cannot simply wait for these conditions to arise; we are actively working to grow our business and are focused on managing our SG&A, particularly our inventory and carrying costs. Historically, we've maintained a substantial inventory in anticipation of increased demand, but over the past nine months, we’ve likely held more inventory than necessary, which we are reassessing. Although higher spot prices have drawn attention to precious metals, they have not significantly benefited us. The demand driving these higher prices is largely from central banks and has not yet created a FOMO effect among our direct-to-consumer customers. We are seeing some signs of potential improvement, but not enough sustained progress at this time. We are committed to ensuring that we are prepared to capitalize on any opportunities that may arise unexpectedly.

Understood. Okay. That's helpful. A couple of follow-ups. One, you said you mentioned tariffs. Remind us how are tariffs impacting your business right now?

The tariffs are creating significant concern regarding the countries that are affected by them and the changes in the tariffs. A large portion of the gold imported into the United States comes from abroad, especially from Switzerland, London, and other locations. Recently, the uncertainty about where to position metal to circumvent tariffs has disrupted several of our borrowing sources, both for metal and dollars, resulting in higher carry costs. Moreover, the unpredictability concerning what will be taxed or tariffed has disrupted our hedge position, which has traditionally contributed to our profitability. The situation of contango has shifted to backwardation at times; under those conditions, short positions reduce carry costs since near-term spot prices exceed longer-term prices, which can negatively impact our profitability. Overall, while we have managed this situation effectively, it has undeniably introduced some uncertainty in aspects of our business.

Yes. Okay. A lot there. If I could ask one more good news question. Your gross margin was really strong. So I get that gross profit dollars were helped by acquisitions, but what was the big driver to the margin so gross profits relative to sales? It was up...

I believe the increase in gross profit is due to the contributions from our acquisitions. As Cary mentioned, we've also increased our SG&A significantly. Our actual gross profit percentage margin is expected to rise because we've integrated higher-margin businesses; however, these acquisitions and their higher margins make up just a small portion of our $11 billion in annual sales. The higher-margin businesses contribute a few hundred million dollars, which will increase our gross profit. Our focus now is to find efficiencies and synergies to capture more gross profit, which involves closely examining our SG&A. Additionally, we are working on an initiative to reduce our inventories and lower our carrying costs. Our interest carrying costs are notably high, and historically, this has provided us with options regarding the sale of inventory to maximize our premiums. In the current environment, those premiums have decreased, so we don't foresee needing to maintain the same level of inventory going forward.

The next question comes from Andrew Scutt with ROTH Capital.

You mentioned significant exposure to international markets during the call. While revenue may not be the best metric for your business, it has increased significantly, reaching around 50% last year and over 60% year-to-date. Can you discuss how you envision this mix balancing out in the medium and long term as you pursue these strategic acquisitions?

Yes. I would say that we're very pleased. It took 6 to 9 months, but we've been able to integrate our LPM acquisition that was in Hong Kong, that is in Hong Kong. And LPM has been able to expand and open a retail facility in Singapore. We've also made a couple of hires to move more into the wholesale trading business in Singapore. And those areas are new to us. We're very optimistic about what we've seen, particularly in the more recent months as the opportunities there appear to be what we hope they would be. And so I think we just like the growth opportunity down there. I'm not saying that it's going to be immediately a material portion of our top line sales. But we are onboarding new customers, and we have gained access through our LPM brand to a number of new product offerings and higher-margin products that originate in China or in Southeast Asia. And having access to those products gives us optimism that this is going to be a new kind of frontier for us that we haven't tackled before. We continue to have good strong new customer growth numbers in the U.S. But certainly, we are very new to the Asian markets, and we see some good client onboarding there, and we're starting to see some very positive numbers.

Great. Right now, it is a soft environment. You have really expanded your direct-to-consumer exposure to different types of markets, including online and phone sales. Are there any specific areas currently showing promise? Can you discuss how that expansion has benefited you in this environment?

I believe that some higher premium bullion products and the rare coins in our new Stack’s Bowers brand have been performing well. Our CFC finance business appears to be strong and is experiencing growth. Recently, we recovered over $100 million from our loan book. There seems to be an increase in new loans and draws against existing loans, though I'm not sure if it's related to the overall economic situation. We are still purchasing a significant amount of material from customers, with our DTC brands buying back a high percentage of their sales. We are managing this with regular melt lots and are currently melting a considerable amount of material. The premiums remain a challenge, and we are awaiting when that might change. There has been a recent uptick in silver prices, particularly with silver rising above $40, which has generated some positive sentiment from silver buyers. While there are some encouraging signs, I believe we are moving in the right direction and making the necessary adjustments in our business. I look forward to what the future holds.

The next question comes from Gregory Gibas with Northland Securities.

I wanted to follow up on what you mentioned earlier regarding backwardation. I know we talked about it last quarter. Just regarding the impact that maybe backwardation and the cost to carry had in the quarter in fiscal Q4 versus fiscal Q3, was it pretty similar? Or are you seeing it lighten up as there is a little bit more clarity in terms of tariffs?

You asked your question about Q4 compared to Q3 in 2025.

Yes. And just kind of how it's trending maybe post that as well.

I don't think the situation has improved at all; it's still quite challenging. Recently, the White House announced that silver would be classified as a strategic metal, which caused significant disruption in the silver market. This impacts our ability to finance our silver inventory and hedge, as a substantial portion of our hedge is in silver. These disruptions often lead to a flip in the contango curve, and for instance, there was a point two weeks ago when 1,000-ounce bars were trading at a $1 premium over the melt value for delivery to New York. In contrast, we are finding it difficult to sell 1-ounce silver rounds at $0.40 an ounce over melt. This illustrates the stark difference. When large traders expect metal scarcity, demand for immediate delivery to New York spikes, resulting in increased premiums over the spot price, indicating backwardation, where near-term values exceed future values. So far, this hasn't turned into a long-term situation; typically, announcements from the government create temporary panic or uncertainty for about a week or two before things stabilize. I recall a recent incident, which seemed like fake news, where a rumor suggested that tariffs would be imposed on imported gold from Switzerland amid trade war discussions. Ultimately, Trump clarified that there would be no tariffs on Swiss gold, but it took a few weeks for the administration to provide proper guidance to import agents regarding gold bars. There seems to be a lot of disinformation circulating. I believe some trading strategies are exploiting this situation. In my analysis, based on our 20-year track record, we've managed these market conditions profitably for A-Mark, but we are currently facing some challenges. Every morning, we wonder what developments may arise next.

Yes. I appreciate the details, Greg. And I guess I just wanted to follow up, too, in terms of the solid progress that you've made digesting those recent acquisitions. Could you maybe just go over the highlights in terms of what's been done and maybe what's on the horizon regarding integration work that's not yet completed with SGI and AMS?

Sure. I mean I think the first big lift was for Cary and Jill on our finance team. They've done a great job of the purchase price accounting. We were able to complete our year-end. We're here talking and we have our release here. And I think the integration of the accounting for the acquisitions is 90% complete now and a great job by the finance team. We started and it was our plan first to integrate Pinehurst, and Pinehurst was a stand-alone business that we had a minority interest in located in North Carolina. And we have completed moving their inventory and all of their shipping and logistics, storage, pick and pack, all of that has now been moved to Las Vegas. Thor Gjerdrum spearheaded that along with Brian Aquilino and Vince from Pinehurst, and that's now complete. We've been able to eliminate a lot of redundancy and a lot of costs there. From the Pinehurst DTC side of things, we are continuing to look for redundancies and synergies that we can find with JM Bullion and our DTC operations in Texas. As it relates to AMS, I think we are in the process of looking at where the synergies are, particularly with their marketing department and some of their marketing expertise that we're rolling out across some of our other platforms and again, looking for synergies and looking for redundancy in expenses that we don't have to incur. And I think on the stack side, we've moved some of our resources from El Segundo. We've moved them down to Orange County, and we are developing and building a more integrated trading desk down here. So we have a lot on our plate. We have a lot going on, but very excited about the opportunity.

At this time, this concludes our question-and-answer session. I'd now like to turn the call over to Mr. Roberts for his closing remarks.

I'd like to thank our many shareholders once again for your loyalty and being with the company and joining our call today. Continued interest and support is important to A-Mark. I'd also like to thank our many employees for their dedication and commitment to A-Mark's success. I look forward to keeping you apprised of A-Mark's progress and turn it back over to John. Thank you for being on the call today.

Before we conclude today's call, I would like to provide A-Mark's safe harbor statement that includes important cautions regarding forward-looking statements made during this call. During today's call, there were forward-looking statements made regarding future events. Statements that relate to A-Mark's future plans, objectives, expectations, performance, events and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. These include statements regarding expectations with respect to growth, the delivery of long-term value, expense optimization, cost containment, and operating leverage. Future events, risks and uncertainties individually or in the aggregate could cause actual results or circumstances to differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ include the following: the failure to execute the company's growth strategy, including the inability to identify suitable or available acquisition or investment opportunities; greater-than-anticipated costs incurred to execute this strategy; our inability to execute on our cost containment and expense reduction programs, government regulations that might impede growth, particularly in Asia, including with respect to tariff policy; the inability to successfully integrate recently acquired businesses; changes in the current international political climate, which historically has favorably contributed to demand and volatility in the precious metals markets, but also has posed certain risks and uncertainties for the company. Particularly in recent periods increased competition for the company's higher-margin services, which could depress pricing; the failure of the company's business model to respond to changes in the market environment as anticipated; changes in consumer demand and preferences for precious metal products generally; potential negative effects that inflationary pressure may have on our business; the failure of our investee companies to maintain or address the preferences of their customer bases; general risk of doing business in commodity markets and strategic business, economic, financial, political, and governmental risks and other risk factors described in the company's public filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements. Listeners are cautioned not to place undue reliance on these forward-looking statements. Finally, I would like to remind everyone that a recording of today's call will be available for replay via a link in the Investors section of the company's website. Thank you for joining us today for A-Mark's earnings call. You may now disconnect.