AMCON Distributing Company Reports 3% Revenue Growth in Q3 2025, Net Income Declines

AMCON Distributing Company reported its financial results for the third quarter and nine months ended June 30, 2025, revealing a revenue increase of 3% to $739.6 million for the quarter, compared to $717.9 million in the same period last year. For the nine-month period, revenue rose by 5.4% to $2.07 billion, up from $1.96 billion in the prior year. The company's gross profit for the quarter was $49.6 million, reflecting a 3.5% increase from $48.0 million in Q3 2024, while gross profit for the nine months increased by 4.5% to $139.5 million.

Despite the revenue growth, AMCON experienced a decline in net income available to common shareholders, which fell to $1.3 million for the third quarter, down 11.5% from $1.5 million in the previous year. For the nine-month period, net income plummeted by 97.5% to $77,006, compared to $3.1 million in the same period last year. The decrease in profitability was attributed to rising operating expenses, which increased by 8.1% to $130.5 million for the nine months, driven by higher costs associated with acquisitions and increased health insurance expenses.

Strategically, AMCON made significant moves during the quarter, including the acquisition of Arrowrock Supply for approximately $6.1 million, which is expected to enhance the company's service capabilities and market reach. The company also reported that its wholesale segment, which serves approximately 7,900 retail outlets across 34 states, continues to be a major contributor to its revenue, with sales in this segment increasing by 2.9% to $728.3 million in Q3 2025. The retail segment also saw an 11.1% increase in sales, reaching $11.3 million, primarily due to higher sales volumes in existing stores.

Operationally, AMCON's total assets increased to $393.9 million as of June 30, 2025, up from $374.1 million at the end of September 2024. The company reported a total of 645,462 shares of common stock outstanding as of July 17, 2025. The company continues to face challenges from inflationary pressures and changing consumer preferences, which have impacted its cost structure and sales volumes, particularly in the cigarette category.

Looking ahead, AMCON remains focused on enhancing its competitive position through strategic investments and geographic expansion. The company is optimistic about its growth potential, particularly with the recent opening of a new distribution facility in Colorado City, which is expected to improve service capabilities in the inter-mountain and western regions of the United States. However, management acknowledges the ongoing risks associated with market conditions, regulatory changes, and consumer demand, which could impact future performance.