First Majestic Silver Corp. (AG) Income Statement

The 171.8% YoY growth in 2025Q4 is the most striking figure, but it follows a string of quarters with triple-digit growth rates, indicating that the Los Gatos acquisition and elevated silver prices are the primary accelerants. The sequential dip from 2025Q4 to 2026Q1 (from $471.1M to $470.1M) suggests a plateau, and the 57% growth in 2026Q2, while still robust, may signal a deceleration as base effects normalize. Investors should monitor whether volume growth can persist without further M&A.

The gross margin trajectory is remarkable: from negative in 2024Q1 to 64.2% in 2026Q2, a swing driven by both revenue growth and COGS discipline. However, the 2026Q1 to 2026Q2 dip from 55.3% to 64.2% (actually an increase) indicates that the company is capturing price upside, but the volatility in COGS (e.g., $210.3M in 2026Q1 vs. $148.7M in 2026Q2) suggests that cost control is not yet stable. The peer comparison shows AG's gross margin now exceeds PAAS and HL, but this may be a cyclical peak.

The operating margin expanded from 14.8% in 2024Q4 to 47.5% in 2026Q2, with SG&A growing only modestly from $13.6M to $17.0M over the same period. This suggests that the company's cost structure is largely fixed, allowing revenue growth to flow through to operating income. However, the 2026Q1 to 2026Q2 decline in operating margin (from 49.5% to 47.5%) hints that cost pressures may be emerging, and investors should watch whether SG&A discipline holds as revenue growth slows.

The dramatic improvement in gross margin is primarily due to silver price appreciation, not structural cost reduction. COGS per ounce likely remains elevated due to inflationary pressures in Mexico, and the recent suspension of Jerritt Canyon may reduce gold production, shifting the mix toward silver. The company's high fixed-cost structure means that any decline in silver prices could quickly erode margins, as seen in 2024 when gross margins were in the low teens.

Before 2025, the company was struggling with negative operating income and net losses, but the combination of the Los Gatos acquisition and higher silver prices in 2025 created a step-change in financial performance. The 2025Q4 revenue of $471.1M was more than double the 2024Q4 figure, and margins have remained elevated since. This inflection appears durable if silver prices hold, but it also raises the bar for future growth, as the company now needs to maintain these elevated levels.