Wheaton Precious Metals Corp. (WPM) Income Statement

The growth trajectory is not linear but shows a clear inflection point starting in Q4 2025, where revenue growth jumped from the 20-60% range to triple digits. This acceleration appears driven by the full contribution of cornerstone assets like Salobo and potentially higher gold and silver prices, as the streaming model's fixed-cost structure allows revenue to scale directly with commodity prices. The durability of this growth hinges on the production schedules of underlying mine operators and the company's ability to maintain its reserve replacement ratio without overpaying for new streams.

The margin profile demonstrates a clear upward trend, with the most recent quarters sustaining gross margins above 74%, well above the 65-70% range seen in early 2024. This expansion suggests that WPM's fixed cash cost per ounce is becoming an increasingly smaller fraction of the realized price, amplifying profitability as metal prices rise. Compared to peers like Franco-Nevada (73.9% gross margin), WPM's current margin is competitive, though the slight compression from Q1 2026's 77.5% warrants monitoring for any shift in the portfolio's cost structure or metal delivery mix.

The operating margin has expanded significantly from 53.3% in Q1 2024, demonstrating that SG&A costs are not growing proportionally with revenue. This is a hallmark of the streaming business model, where the primary cost is the upfront capital deployment, and ongoing administrative overhead is minimal relative to the scale of cash flows. The consistent sub-$25M quarterly SG&A expense, even as revenue has tripled, suggests a highly efficient corporate structure that allows a greater portion of gross profit to flow directly to operating income.

COGS as a percentage of revenue has declined from 42.2% in Q1 2024 to 26.0% in Q2 2026, which is a direct result of the fixed-price purchase agreements in WPM's streaming contracts. This structural advantage means that as gold and silver prices rise, WPM's cost per ounce remains largely static, leading to margin expansion. The primary cost risk is not operational but contractual; any future shift toward 'cost-plus' streaming agreements could alter this favorable dynamic, though the current portfolio appears firmly rooted in fixed-price structures.