Breaking Down First Majestic Silver Corp. (AG) Financial Health: Key Insights for Investors

You're looking at First Majestic Silver Corp. and seeing a confusing Q3 2025 earnings report-a classic disconnect between operational success and market perception. Honestly, the company is pulling off record production, delivering a massive 3.9 million ounces of silver and generating a record $140 million in cash flow, which has boosted their cash position to over $560 million; that's defintely a strong operational signal. But, the market focused on the miss, where the reported revenue of $285.1 million fell short of analyst forecasts, and the earnings per share (EPS) of $0.07 missed the consensus of $0.11. The key insight here is that First Majestic held back 758,000 ounces of silver and 4,000 ounces of gold in inventory, valued at $50.3 million, which artificially suppressed the reported revenue but signals management's confidence in higher near-term silver prices. This move, combined with a reaffirmed full-year production guidance of 30-32 million silver equivalent ounces, paints a picture of a company with strong underlying fundamentals that is simply timing the market, making its financial health far more nuanced than a simple headline miss suggests.

Revenue Analysis

You're looking at First Majestic Silver Corp. (AG) because you see the massive growth numbers, and honestly, they are hard to ignore. The direct takeaway is that the company's revenue streams are now structurally different and far more robust than last year, driven by a major acquisition and soaring metal prices. The Trailing Twelve Months (TTM) revenue ending September 30, 2025, hit an impressive $965.57 million. This performance puts the company on track to potentially meet the analyst projection of $1 billion in revenue for the full 2025 fiscal year.

The year-over-year revenue growth rate is what really jumps out. In the third quarter of 2025 (Q3 2025), First Majestic Silver Corp. reported record quarterly revenue of $285.1 million, which represents a massive 95% increase compared to the same period in 2024. That's not a small bump; that's a structural shift. The primary driver for this staggering growth is a combination of a 45% increase in payable Silver Equivalent (AgEq) ounces sold and a 31% increase in the average realized silver price, which reached $39.03 per AgEq ounce during Q3 2025.

When you break down the primary revenue sources, you see why the company is considered a silver-focused miner. For Q3 2025, approximately 56% of the total revenue came directly from silver sales. This focus is a key part of their strategy, which you can read more about in their Mission Statement, Vision, & Core Values of First Majestic Silver Corp. (AG). The balance comes from co-products like gold, which is a necessary part of the mining process but not the main event.

The most significant change in the revenue stream is the successful integration of the Los Gatos Silver Mine acquisition. This single asset has been transformative, contributing a substantial portion of the quarterly revenue. Here's the quick math on segment contribution for Q3 2025:

• Los Gatos Silver Mine: Contributed $108.7 million in revenue.
• Santa Elena Mine: Contributed $84.7 million in revenue.
• San Dimas Mine: Contributed $71.4 million in revenue, showing a notable 27% production increase.

The Los Gatos contribution alone is a huge piece of the pie, making the company less reliant on older assets and providing a new, high-margin revenue base. This acquisition is defintely the single biggest factor behind the 2025 revenue surge.

The year-to-date revenue trend is equally strong, starting with Q1 2025 revenue of $243.9 million (a 130% Y/Y increase) and Q2 2025 revenue of $264.2 million (a 94% Y/Y increase). This consistent, high-velocity growth shows the operational improvements are sticking, plus the rising silver prices are acting as a powerful tailwind. Still, remember that metal prices are cyclical, so while the Los Gatos acquisition provides a solid foundation, future revenue growth will still be sensitive to the silver market.

Profitability Metrics

You're looking for a clear signal on whether First Majestic Silver Corp. (AG) has finally turned the corner on profitability, and the most recent data from the trailing twelve months (TTM) ending September 2025 gives us a strong, positive answer. The company's operational efficiency is clearly improving, driven by higher realized silver prices and effective cost control at the mine level.

For the TTM period ending September 2025, First Majestic Silver Corp. (AG) has generated a gross profit margin of 48.26%, a significant jump from the full-year 2024 margin of roughly 34.3%. This is a massive improvement, and it tells you the core mining business is getting more profitable. Here's the quick math: TTM Revenue hit $965.57 million against a Cost of Revenue of $499.59 million, leaving a Gross Profit of $465.98 million.

When we look at the full picture, the margins for First Majestic Silver Corp. (AG) show a mixed but improving story against the industry median:

The good news is the Gross Profit Margin is actually higher than the industry median of 43.65%, meaning their cost of goods sold (COGS) is relatively well-managed compared to peers. Still, the Operating Profit Margin (earnings before interest and taxes) of 17.19% and Net Profit Margin of 7.07% lag the industry medians of 22.49% and 12.84%, respectively. This suggests that while the mines are performing well, the company's non-production overhead (like selling, general, and administrative expenses) or other non-operating costs are eating into that gross profit more than they should. You defintely need to dig into those operating expenses.

The trend in profitability is one of dramatic recovery. The TTM Operating Income is a strong positive at $166.01 million, a huge turnaround from the full-year 2023 operating loss of $138.74 million. This shift is primarily fueled by record quarterly revenue, which hit $285.1 million in Q3 2025, plus a 31% hike in the average realized silver price to $39.03 per ounce. The net effect is that the TTM Net Income is now a positive $68.27 million, which translates to the 7.07% Net Profit Margin.

Operational efficiency is the real driver here, and it's where the company is executing well. The focus on cost management is showing up in the All-In Sustaining Cost (AISC)-the true cost of producing an ounce of metal-which improved 11% year-over-year to $19.24 per silver equivalent (AgEq) ounce in Q1 2025.

• Cash Costs per AgEq ounce dropped 9% to $13.68 in Q1 2025.
• Mine operating earnings reached $49.4 million in Q2 2025, up significantly from the prior year.
• The higher gross margin is directly linked to a 45% rise in silver equivalent ounces sold in Q3 2025.

This cost discipline, coupled with higher metal prices, is what's making the gross margin look so healthy right now. For a deeper look at who is betting on this turnaround, check out Exploring First Majestic Silver Corp. (AG) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You're looking at First Majestic Silver Corp. (AG)'s balance sheet, and the first thing that jumps out is how conservatively they finance their operations. This is a company that prefers to fund its growth through equity and retained earnings, not debt. It's a low-leverage model, which is defintely a source of financial strength.

As of the third quarter of 2025, the company's total debt is remarkably low, especially considering their operational scale. Here's the quick math on their Q3 2025 debt structure:

• Short-Term Debt & Capital Lease Obligation: $14.4 million.
• Long-Term Debt & Capital Lease Obligation: $222.8 million.

The total debt is approximately $237.2 million, set against a Total Stockholders' Equity of roughly $2,599.5 million. That's a huge equity cushion.

The Debt-to-Equity Ratio: A Clear Signal

The Debt-to-Equity (D/E) ratio is the clearest indicator of this conservative approach. For First Majestic Silver Corp. (AG), the D/E ratio as of the third quarter of 2025 is around 0.09, or 9%. Some reports even place it lower, at 0.08. This means for every dollar of shareholder equity, the company uses only about nine cents of debt to finance its assets. That's a very low number.

To put that in perspective, the average D/E ratio for the broader Materials sector in the US is around 17.0%. A ratio this low suggests minimal financial risk from leverage, which is a significant positive for investors worried about rising interest rates or a downturn in metal prices. It's a balance sheet built for resilience.

Financing Strategy: Equity Over Leverage

First Majestic Silver Corp. (AG) clearly favors equity funding and internal cash generation over taking on new debt. The last major debt move was the US$230 million Convertible Senior Notes offering back in December 2021, which matures in 2027. There have been no significant new debt issuances or major refinancing activities reported in 2024 or 2025, which makes sense given their liquidity.

The company ended Q3 2025 with a record cash position of over $560 million, which is a massive war chest. Plus, they generated strong free cash flow of nearly $98.8 million in the quarter. This operational cash strength is the primary engine for capital expenditure and growth, not new borrowing. This strategy provides immense financial flexibility, which is critical when navigating the volatility of the precious metals market, and it gives them the capital to pursue organic growth or strategic acquisitions without immediate dilution or interest expense pressure. For a deeper dive into who is investing in this low-leverage model, check out Exploring First Majestic Silver Corp. (AG) Investor Profile: Who's Buying and Why?

The key takeaway is that the company's capital structure is extremely conservative and built for financial stability, prioritizing equity and cash flow over leverage. This is a very low-risk profile in terms of debt management, but still, you need to watch how they deploy that cash pile.

Liquidity and Solvency

You want to know if First Majestic Silver Corp. (AG) has the cash to cover its bills, and the short answer is a definitive yes. The company's liquidity position is the strongest it has ever been, driven by record production and higher silver prices in the first half of 2025.

The core of a company's short-term financial health is its current ratio (current assets divided by current liabilities) and quick ratio (a stricter measure excluding inventory). For First Majestic Silver, the Trailing Twelve Months (TTM) current ratio stands at a robust 3.27, and the quick ratio is 2.84. A ratio above 1.0 is generally good, so these numbers show a substantial cushion. Simply put, for every dollar of short-term debt, First Majestic Silver holds over three dollars in short-term assets. That's a very comfortable spot to be in.

Here's the quick math on their liquidity position as of Q2 2025:

• Current Ratio (TTM): 3.27
• Quick Ratio (TTM): 2.84
• Total Liquidity (including undrawn credit): $583.8 million

The trend in working capital-the capital available to run day-to-day operations-is a clear strength. In Q2 2025, First Majestic Silver reported a record working capital balance of $444.1 million. This figure represents a massive 98% increase from the $224.5 million reported at the end of the 2024 fiscal year. This growth is a direct result of strong operational performance and higher realized metal prices, which is a great sign for future operational flexibility. This is defintely a trend you want to see continue.

When you look at the cash flow statements, the picture is equally positive. The company is generating significant cash from its operations, which is the most sustainable source of liquidity.

The operating cash flow before changes in working capital and taxes hit a record $114.9 million in Q2 2025, up significantly from Q1's record of $110.0 million. This cash generation is what funded the record quarterly free cash flow of $77.9 million in Q2 2025. For investing activities, the company is committing to growth, with a planned 2025 capital expenditure of approximately $182 million, split between $80 million for sustaining activities and $102 million for expansionary projects. The strong operating cash flow is more than capable of covering these investments without strain. Financing cash flow remains manageable, even after accounting for a $30.6 million tax installment payment in Q2 2025.

The key takeaway is that First Majestic Silver is in an enviable liquidity position, with no immediate concerns. The record cash generation and high current ratios mean the company has ample capacity to manage its short-term obligations and fund its aggressive growth and exploration plans for the year. For a deeper dive into who is capitalizing on this strong performance, check out Exploring First Majestic Silver Corp. (AG) Investor Profile: Who's Buying and Why?

Valuation Analysis

You want to know if First Majestic Silver Corp. (AG) is a buy, a hold, or a sell right now. Looking at the metrics as of November 2025, the stock appears to be priced for significant growth, suggesting it is currently overvalued based on trailing earnings, but analysts see a clear runway for it to grow into its price. It's a classic case of buying a growth story in a cyclical sector.

The core valuation ratios tell a mixed, yet expensive, story. The Trailing Price-to-Earnings (P/E) ratio is high at 90.43, which is defintely a premium compared to the Metals & Mining industry median of around 20.09. However, the Forward P/E ratio, which uses future earnings estimates, drops significantly to a more palatable 17.65, showing that investors are betting heavily on a sharp increase in earnings for the 2026 fiscal year.

Here's the quick math on other key multiples:

• Price-to-Book (P/B) Ratio: 2.32. This is fairly reasonable for a mining operation, meaning the stock trades at just over two times its book value.
• Enterprise Value-to-EBITDA (EV/EBITDA): 15.71. This is a common metric in mining, and a value over 10 often suggests a premium valuation, reflecting expected high cash flow generation.

Stock Trend and Analyst Sentiment

The stock has been volatile over the past 12 months, which is typical for a silver producer. The 52-week trading range for First Majestic Silver Corp. (AG) was between a low of $5.09 and a high of $15.69. With the closing price on November 14, 2025, at $12.01, the stock is trading well above its 52-week low but still has significant ground to cover to re-test the high. This movement is largely tied to the price of silver itself, plus the company's operational performance, like the recent Q2 2025 record EBITDA of $119.9 million.

The analyst community is generally bullish. The consensus rating is a Moderate Buy, with an average price target set at $17.33. This target suggests a potential upside of over 44% from the current $12.01 price, but you must remember that price targets are frequently updated. To be fair, some analysts have recently downgraded the stock to a 'Hold' while others maintain a 'Strong Buy,' so it's not a unanimous call.

Dividend Profile and Payout Sustainability

First Majestic Silver Corp. (AG) is not a stock you buy for income. The dividend yield is minimal at just 0.17%, based on an annualized dividend of $0.02 per share. The payout ratio, which measures the percentage of earnings paid out as dividends, is low, sitting at 14.3% on a trailing twelve-month basis. This low ratio is actually a good thing for a growth-focused miner, as it signals that the company is retaining most of its earnings to fund capital expenditures and expansion, which is critical for future production growth.

The dividend is safe and highly sustainable. Analysts anticipate a future payout ratio as low as 1.3%, based on expected higher earnings per share next year. This low payout gives the company maximum financial flexibility, a key factor when you look at the volatility in the silver market. For a deeper look at the company's long-term strategy, check out the Mission Statement, Vision, & Core Values of First Majestic Silver Corp. (AG).

The action is clear: First Majestic Silver Corp. (AG) is a growth-oriented investment in a precious metal, not a value play. The high trailing multiples are a red flag, but the low forward P/E and strong analyst target price of $17.33 suggest the market is pricing in a massive earnings turnaround.

Risk Factors

You're looking at First Majestic Silver Corp. (AG) and seeing some impressive 2025 numbers-record Q2 revenue of $264.2 million and a full-year revenue track that could top $1 billion. That's great, but as a seasoned analyst, I focus on what can derail that momentum. The biggest risks aren't always operational; sometimes, they're regulatory or geological. You need to map these out clearly before making a move.

The core of First Majestic Silver's risk profile sits at the intersection of Mexican operations, metal price volatility, and a major tax dispute. The company is doing a lot right-like revising 2025 production guidance up to a mid-point of 31.6 million silver equivalent ounces-but these three areas are where your capital is most exposed.

The Tax and Regulatory Headwind

The single most significant overhang right now is the ongoing tax reassessment issue in Mexico, which is a major regulatory and financial risk. Honestly, this is why the stock dropped over 7% on the day of the strong Q3 2025 earnings report, despite record revenue of $285.1 million. This kind of uncertainty is a direct hit to investor sentiment and valuation. Plus, operating in Mexico means you're always subject to changes in government regulation, which can affect everything from concessions to environmental standards.

Another external factor is the Mexican Peso (MXN) to U.S. Dollar (USD) exchange rate. A stronger Peso increases the local operating costs when translated back to USD, which can partially offset the benefit of rising silver prices, as seen in Q3 2025.

Operational and Geological Challenges

While the acquisition of Cerro Los Gatos is a huge win, contributing significantly to the 7.9 million silver equivalent ounces produced in Q2 2025, the company faces internal operational risks at its legacy mines.

• Declining Grades: At legacy assets like Santa Elena, grades are declining, meaning they have to process more rock (higher throughput) to get the same or fewer ounces, which pushes costs higher.
• Cost and Production Volatility: Although the company has improved its 2025 cash cost guidance to a range of $13.94 to $14.37 per ounce, they've missed initial guidance in the past, and unexpected events like weather-related disruptions and power outages in Q2 2025 can immediately impact production.
• Reserve Replacement: Maintaining a long-term life-of-mine plan requires consistent reserve replacement, which has been a challenge at some sites like San Dimas.

Mitigation and Financial Buffer

To be fair, First Majestic Silver isn't ignoring these risks. They are actively mitigating them with a few key strategies. The most important one is their financial strength. They ended Q2 2025 with a record treasury balance of $510.1 million and a strong current ratio of 3.27. That's a serious liquidity buffer for any unexpected operational costs or adverse legal outcomes. They also continue to invest heavily in exploration, planning approximately 270,000 meters of drilling in 2025, a significant increase over 2024, to address the reserve replacement issue.

Here's a quick snapshot of the key risks you should monitor:

Your next step should be to dig into the company's full Annual Information Form to get the granular details on the tax dispute and the Mission Statement, Vision, & Core Values of First Majestic Silver Corp. (AG).

Growth Opportunities

You're looking at First Majestic Silver Corp. (AG) and wondering where the real growth comes from, especially after a strong first half of 2025. The direct takeaway is this: the company's growth is now firmly driven by a major acquisition and a significant increase in capital spending on high-potential exploration, pushing production guidance higher for the year.

Key Drivers: Acquisition and Operational Scale

The biggest growth driver in 2025 is the acquisition of Gatos Silver, Inc., which brought the Cerro Los Gatos Silver Mine into the portfolio on January 16, 2025. This move immediately boosted production, contributing to a revised full-year attributable silver equivalent (AgEq) production guidance of 30.6 to 32.6 million ounces for 2025, a 7% increase from the original forecast. We're seeing the results already; Q2 2025 silver production jumped 76% year-over-year. That's a huge leap.

To keep that momentum, First Majestic Silver Corp. (AG) has upped its capital budget by 7% to $193 million for 2025, with $82 million dedicated to underground development. This isn't just maintenance; it's about expansionary projects at key mines like Santa Elena and San Dimas. They're spending money to make money, and that's what you want to see.

• Sustain Los Gatos throughput at 4,000 tonnes per day (tpd).
• Upgrade Santa Elena to reach 3,500 tpd throughput.
• Drill 255,000 meters across 20 active rigs for resource growth.

Revenue Projections and Earnings Estimates

The ramp-up in production and a favorable metal price environment-which they've revised to $30.00/oz for silver and $2,800/oz for gold in the second half of 2025-are setting the stage for record financials. Management is targeting a full-year revenue of approximately $1 billion for 2025, which is a massive goal. Here's the quick math: Q2 2025 revenue hit a record $268 million, and Q3 2025 revenue followed closely at $285.10 million, so they're defintely on track.

On the profitability side, the consensus estimate for full-year 2025 earnings per share (EPS) is $0.54 per share. While Q3 2025 EPS of $0.07 missed analyst expectations, the sheer revenue growth signals a strong underlying business. Plus, the company has improved its cash cost guidance to a range of $13.94 to $14.37 per AgEq ounce, reflecting better operational efficiencies across the portfolio.

Strategic Edge and Future Initiatives

First Majestic Silver Corp. (AG) holds a clear competitive advantage in the silver sector: its purity. The company boasts a 55% silver content in its production mix, which is significantly higher than competitors whose silver content often ranges from 24% to 44%. This makes them a purer play on silver price movements, which is a huge factor in a bullish precious metals market.

For the future, the exploration program is already showing promise. The Navidad discovery at the Santa Elena property, for example, has an initial resource estimate of 30 million ounces. That's a potential game-changer. They are also working to increase their internal product innovation, aiming to have their First Mint production account for 10% of total production, which adds a value-added component to their business. You can check out their core focus here: Mission Statement, Vision, & Core Values of First Majestic Silver Corp. (AG).