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Home»Alternative Investments»Gold.com (GOLD): On A Gold Rush With Cracks Underneath
Alternative Investments

Gold.com (GOLD): On A Gold Rush With Cracks Underneath

By CharlotteSeptember 13, 20264 Mins Read
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On September 2, Gold.com Inc. (NYSE:GOLD) reported fiscal fourth-quarter and full-year results that showed just how much a string of acquisitions has reshaped the business. Revenue for the quarter ended June 30 nearly doubled to $5 billion, up 99% from a year earlier, while full-year revenue jumped 132% to $25.5 billion from $11 billion in fiscal 2025. Behind those numbers sits a company betting big on scale, and a business still working through what that scale costs.

Gold.com (GOLD): On A Gold Rush With Cracks Underneath
Gold.com (GOLD): On A Gold Rush With Cracks Underneath

Building A Full Metal Machine

The growth story here is mostly acquisition math. Gold.com bought Monex in January and closed the Sunshine Minting deal in April, and CEO Greg Roberts called Sunshine Minting a major milestone that expands the company’s production capacity for the United States Mint and other sovereign mints. Gold ounces sold climbed 51% to 521,000 in the quarter, and the company is now a vendor to Costco for minting, logistics, and trading services through its Silver Gold Bull Calgary office.

Management is also pushing into new territory, supplying gold and silver products to digital retail platforms built around social media and gamification to reach younger buyers. The partnership with Tether has scaled past what was originally disclosed at launch, with lease positions and storage volumes now at multiples of the initial figures. Collateral Finance Corporation, the company’s secured lending arm, is extending into sports card collateral loans, a sign that the vertically integrated model is reaching well past bullion. On top of that, cash on hand surged to $578 million from just $77.7 million a year ago, funding a special dividend of $1.00 per share payable September 28, a regular $0.20 quarterly dividend, and a stated plan to buy back shares at a discount to the company’s nearly $1 billion book value.

When Growth Doesn’t Reach The Bottom Line

The headline growth masks a business that is not converting revenue into profit at the same pace. Gross margin fell to 2.2% in the quarter from 3.3% a year earlier, a result of lower silver premiums and a shift in product mix, and net income rose just 18% to $12.2 million even as revenue nearly doubled. Diluted earnings per share came in flat at $0.41. Roberts pointed to an “on-again, off-again war situation” that caused customers to sit on their hands starting in mid-March, and Direct-to-Consumer new customers fell 38% to 67,900 in the quarter. Silver ounces sold dropped 2% year over year and 48% from the prior quarter.

Costs moved the other direction. SG&A expenses rose 46% to $77.9 million, driven by $17.1 million in higher compensation and rising advertising spend, and EBITDA actually slipped 3% to $28.2 million despite the revenue surge. Roberts also flagged that gold is currently trading more like an asset class than a traditional hedge, with higher interest rates sapping momentum in gold and silver prices, and warned that carrying excess gold leases without inventory to offset them could mean paying lease fees and contango costs.

Where Wall Street Money Sits

Hedge fund ownership of Gold.com rose to 27 funds from 22 the prior quarter, which points to institutions adding rather than trimming positions. Short interest sits at 15.83% of float, a level that suggests real skepticism is baked into the stock even as funds accumulate. The forward P/E of 14.37, as of September 11, is a modest multiple for a company that just posted triple-digit revenue growth, which means the market isn’t pricing in much of that growth continuing. That combination points to a stock where opinions are sharply divided.

The Long Game Versus The Near Term

Gold.com enters fiscal 2027 with a much bigger footprint than it had a year ago, stitched together through acquisitions that expanded minting capacity, secured lending and retail reach all at once. The bull case rests on that vertical integration compounding as Sunshine Minting and Monex fully integrate and the Tether and Costco relationships mature. The bear case rests on margins and costs catching up with revenue, especially if the geopolitical drag on demand and the higher rate environment persist.

While we acknowledge the potential of GOLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In.

Disclosure: None. Follow Insider Monkey on Google News.



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