EZCORP, Inc.

What they do

EZCORP advances cash against collateralized tangible personal property at pawn stores, earning pawn service charges on pawn loans outstanding, and sells forfeited or customer-purchased merchandise in its retail stores. As of September 30, 2025, it operated 545 U.S. pawn stores under EZPAWN and Value Pawn & Jewelry, 622 Mexico stores under Empeño Fácil and Cash Apoyo Efectivo, and 193 stores in Guatemala, El Salvador and Honduras under GuatePrenda and MaxiEfectivo. It also offers web-based EZ+ tools for managing pawn transactions, layaways and loyalty rewards.

Revenue drivers

• Pawn service charges (PSC) — Interest and fees on pawn loans outstanding (PLO); PSC increased 32% in the June 2026 quarter versus the prior-year period on higher average PLO and additional stores.
• Merchandise sales — Retail sale of pre-owned collateral and purchased goods; merchandise sales gross margin rose to 38% from 36% in the June 2026 quarter.
• Jewelry scrap — Sale of scrap gold and jewelry; jewelry scrap sales rose 110% in the June 2026 quarter due to higher gold prices and jewelry purchases, with scrap gross margin declining to 26% from 29%.
• Latin America Pawn segment — Mexico plus GPMX operations; segment contribution grew 56% in the June 2026 quarter, and the company acquired 33 new stores in Guatemala during the quarter.

Recent performance

For the quarter ended June 30, 2026, total revenues increased 35% to $418.7 million and gross profit rose 34% to $246.2 million. Net income attributable to EZCORP increased 44% to $38.2 million, or $0.48 diluted EPS, and adjusted EBITDA increased 48% to $65.6 million. PLO rose 33% to $387.2 million, or 18% on a same-store basis, and excluding SMG total revenues increased 21%. Net inventory increased 40%, or 21% same-store, while inventory turnover declined to 2.3x from 2.4x. For fiscal year 2025, revenue was $1.27 billion, net income $109.6 million and operating cash flow $149.0 million.

Strategy

Management organizes the business around three pillars: strengthening the core pawn business through operational execution, driving cost efficiency and simplification, and innovating to grow customer engagement. The stated foundational capabilities include developing team members, modernizing IT and data, strengthening risk and compliance, and building a sustainability program. The company has made strategic investments, owning 43.7% of Cash Converters International and a preferred interest in Founders, which had majority ownership of SMG. During the third quarter of fiscal 2026 and July 2026, EZCORP acquired the remaining interest in Founders and SMG, which operates 108 stores across 12 countries. It also grew its footprint by 43 stores in the quarter and on November 11, 2025 the Board approved a new share repurchase program.

Risks

• Regulatory changes — Adverse legislation or regulation in any jurisdiction where EZCORP operates could force store closures or consolidation, reducing revenues, earnings and assets.
• Compliance failures — Failure to comply with applicable pawn and consumer protection laws could result in fines, penalties, or orders to cease or suspend operations.
• Negative industry perception — Negative characterizations by consumer advocates or media could spur adverse legislation or regulation and hurt the market value of EZCORP stock.
• Gold price and market risk — The company identifies gold values, interest rates and foreign currency exchange rates as primary market risks affecting its operations.

Outlook

CEO Lachie Given said the company enters the final quarter of fiscal 2026 in a very strong operating and financial position, calling it an exceptionally strong year. Management cited the June 2026 quarter as one of the strongest in EZCORP's history, with record PLO of $387.2 million. It also said its view on SMG has strengthened, citing opportunity to introduce EZCORP systems, operating disciplines, culture and capital across the platform.