EZCORP Reports Third Quarter Fiscal 2025 Results Continued Top-line Momentum Drives Exceptional Earnings Growth
AUSTIN, Texas, July 30, 2025 (GLOBE NEWSWIRE) -- EZCORP, Inc. (NASDAQ:EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its third quarter ended June 30, 2025.
Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") and comparisons shown are to the same period in the prior year.
THIRD QUARTER HIGHLIGHTS
Pawn loans outstanding (PLO) increased 11% to $291.6 million.
Net income increased 48% to $26.5 million. On an adjusted basis1, net income increased 46% to $25.2 million.
Diluted earnings per share increased 36% to $0.34. On an adjusted basis, diluted earnings per share increased 38% to $0.33.
Adjusted EBITDA increased 42% to $45.2 million.
Total revenues increased 11% to $311.0 million, while gross profit increased 10% to $183.6 million.
Grew our footprint by 52 stores, including 40 stores acquired in Mexico on June 17, 2025.
CEO COMMENTARY AND OUTLOOK
Lachie Given, Chief Executive Officer, stated, "This quarter showcased continued strong momentum in our business, disciplined execution from our team, and the scalability of our platform. We delivered record Q3 revenue and achieved all-time high PLO as demand remains strong for immediate cash solutions and secondhand goods. When combined with meaningful efficiency gains throughout the organization, we turned top-line momentum into exceptional earnings growth, as reflected by a 42% increase in adjusted EBITDA and 36% growth in diluted EPS.
"During the quarter, we grew our footprint by 52 stores, including 49 in LatAm and 3 in the US, 1 of which is a luxury store in Miami Beach. We continue to focus on strategic expansion to scale our business, as well as exceptional operating performance across geographies. In the U.S., disciplined expense management and store level execution drove a 32% increase in segment contribution. In Latin America, we delivered over 30% growth in contribution on a constant currency basis, resulting from both organic growth and a partial quarter benefit from acquired stores.
"Our recently strengthened balance sheet with $472 million in liquidity enables us to fund accelerated growth, organically and through strategic acquisitions. Our pipeline of M&A prospects is compelling, and we are ideally positioned to capitalize on attractive scale opportunities. Looking ahead, we remain highly focused on disciplined capital allocation, operational excellence, and delivering long-term value for our shareholders."
CONSOLIDATED RESULTS
Three Months Ended June 30
As Reported
Adjusted1
in millions, except per share amounts
2025
2024
2025
2024
Total revenues
$
311.0
$
281.4
$
319.9
$
281.4
Gross profit
$
183.6
$
166.7
$
188.4
$
166.7
Income before tax
$
34.7
$
23.0
$
34.0
$
22.9
Net income
$
26.5
$
18.0
$
25.2
$
17.2
Diluted earnings per share
$
0.34
$
0.25
$
0.33
$
0.24
EBITDA (non-GAAP measure)
$
45.7
$
31.8
$
45.2
$
31.7
PLO increased 11% to $291.6 million, up $29.9 million. On a same-store2 basis, PLO increased 9% due to increase in average loan size, continued strong pawn demand and improved operational performance.
Total revenues increased 11% and gross profit increased 10%, reflecting improved pawn service charge (PSC) revenues due to higher average PLO.
PSC increased 7% as a result of higher average PLO.
Merchandise sales gross margin remained consistent at 36%. Aged general merchandise improved to 2.3% of total general merchandise inventory, down 83 basis points.
Net inventory increased 31%, as a result of an increase in PLO, layaways and purchases and a decrease in inventory turnover to 2.4x, from 2.7x.
Store expenses increased 2% and 1% on a same-store basis.
General and administrative expenses increased 9% primarily due to labor, with approximately 50% due to long term incentive compensation.
Income before taxes was $34.7 million, up 51% from $23.0 million, and adjusted EBITDA increased 42% to $45.2 million.
Diluted earnings per share increased 36% to $0.34. On an adjusted basis, diluted earnings per share increased 38% to $0.33.
Cash and cash equivalents at the end of the quarter was $472.1 million, up from $170.5 million as of September 30, 2024. The increase was due primarily to $300.0 million (less issuance costs) from the issuance of the Senior Notes due 2032 offset by an increase in earning assets.
SEGMENT RESULTS
U.S. Pawn
PLO ended the quarter at $221.1 million, an increase of 11% on a total and same-store basis due to increase in average loan size, strong loan demand and improved operational performance.
Total revenues increased 11% and gross profit increased 12%, driven by increased PSC, merchandise sales and scrap sales.
PSC increased 8% as a result of higher average PLO, partially offset by lower PLO yield.
Merchandise sales increased 4%, on a total and same-store basis, and sales gross margin increased by 80 bps to 38.5%. Aged general merchandise decreased by 260 basis points to 2.5%, or $1.2 million of total general merchandise inventory. Excluding our Max Pawn luxury stores, aged general merchandise was 1.8%.
Net inventory increased 36% due to increase in PLO, layaways and purchases and a decrease in inventory turnover to 2.1x, from 2.6x.
Store expenses increased 3% on a total and same-store basis.
Segment contribution increased 32% to $47.6 million.
Segment store count increased by 3 to 545, due to acquisitions, including 1 luxury store in Miami Beach.
Latin America Pawn
PLO improved to $70.6 million, an increase of 13% (16% on constant currency basis). On a same-store basis, PLO increased 2% (4% increase on a constant currency basis). The difference is driven primarily by our recent acquisition.
Total revenues increased 11% (21% on constant currency basis), and gross profit increased 6% (16% on a constant currency basis), primarily due to increased merchandise sales and pawn service charges.
PSC increased to $31.4 million, an increase of 3% (13% on a constant currency basis) as a result of higher average PLO.
Merchandise sales increased 12% (23% on constant currency basis) and increased 8% on a same-store basis (19% increase on a constant currency basis). Merchandise sales gross margin decreased to 31% from 32%. Aged general merchandise increased to 2.2% from 0.9% of total general merchandise inventory.
Net inventory increased 18% (21% on a constant currency basis) due to an increase in PLO and decrease in inventory turnover to 3.0x, from 3.1x. On a same-store basis, net inventory increased by 10% (13% on a constant currency basis). The difference is driven primarily by our recent acquisition.
Store expenses increased 1% (12% increase on a constant currency basis) and decreased 3% on a same-store basis (7% increase on a constant currency basis). The constant currency increase was due primarily to increased labor, in line with store activity and minimum wage increases.
Segment contribution increased 20% to $12.4 million (30% on a constant currency basis to $13.5 million).
Segment store count increased by 49 to 791, primarily due to the acquisition of 40 stores, the addition of 10 de novo stores and the consolidation of 1 store.
FORM 10-Q
EZCORP's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company's website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.
CONFERENCE CALL
EZCORP will host a conference call on Thursday, July 31, 2025, at 8:00 am Central Time to discuss Third Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://register-conf.media-server.com/register/BI4f3cd4b3bf1d44a198c59f67b0acdc6f. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: https://edge.media-server.com/mmc/p/hqptihjy. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call.
ABOUT EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index.
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FORWARD LOOKING STATEMENTS
This announcement contains certain forward-looking statements regarding the Company's strategy, initiatives and expected performance. These statements are based on the Company's current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company's strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company's business and prospects, see the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
Contact:Email: (512) 314-2220
EZCORP, Inc.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
Three Months EndedJune 30,
Nine Months EndedJune 30,
(in thousands, except per share amounts)
2025
2024
2025
2024
Revenues:
Merchandise sales
$
168,624
$
158,140
$
524,434
$
502,230
Jewelry scrapping sales
26,970
15,395
64,640
43,191
Pawn service charges
115,339
107,830
348,262
321,442
Other revenues
48
56
131
188
Total revenues
310,981
281,421
937,467
867,051
Merchandise cost of goods sold
108,226
101,211
341,605
322,680
Jewelry scrapping cost of goods sold
19,116
13,483
48,367
37,479
Gross profit
183,639
166,727
547,495
506,892
Operating expenses:
Store expenses
119,123
116,335
352,101
341,472
General and administrative
21,780
20,060
60,089
54,869
Depreciation and amortization
8,003
8,158
24,358
24,942
Loss (gain) on sale or disposal of assets and other
—
20
25
(149
)
Other operating income
(1,262
)
—
(1,262
)
(765
)
Total operating expenses
147,644
144,573
435,311
420,369
Operating income
35,995
22,154
112,184
86,523
Interest expense
8,458
3,539
14,886
10,381
Interest income
(5,440
)
(2,931
)
(9,408
)
(8,452
)
Equity in net income of unconsolidated affiliates
(1,200
)
(1,263
)
(4,180
)
(4,135
)
Other (income) expense
(536
)
(191
)
377
(627
)
Income before income taxes
34,713
23,000
110,509
89,356
Income tax expense
8,210
5,050
27,600
21,457
Net income
$
26,503
$
17,950
$
82,909
$
67,899
Basic earnings per share
$
0.45
$
0.33
$
1.47
$
1.23
Diluted earnings per share
$
0.34
$
0.25
$
1.08
$
0.89
Weighted-average basic shares outstanding
59,134
54,898
56,308
55,022
Weighted-average diluted shares outstanding
82,918
83,008
83,144
84,309
EZCORP, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
(in thousands, except share and per share amounts)
June 30,2025
June 30,2024
September 30,2024
Assets:
Current assets:
Cash and cash equivalents
$
472,088
$
218,038
$
170,513
Short-term restricted cash
9,609
9,204
9,294
Pawn loans
291,634
261,720
274,084
Pawn service charges receivable, net
45,410
40,638
44,013
Inventory, net
225,489
171,937
191,923
Prepaid expenses and other current assets
43,417
40,391
39,171
Total current assets
1,087,647
741,928
728,998
Investments in unconsolidated affiliates
13,753
12,297
13,329
Other investments
51,903
51,220
51,900
Property and equipment, net
67,439
59,926
65,973
Right-of-use assets, net
236,064
235,030
226,602
Long-term restricted cash
5,380
—
—
Goodwill
321,907
308,847
306,478
Intangible assets, net
57,960
60,164
58,451
Deferred tax asset, net
25,841
25,245
25,362
Other assets, net
15,174
15,506
16,144
Total assets
$
1,883,068
$
1,510,163
$
1,493,237
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net
$
—
$
137,326
$
103,072
Accounts payable, accrued expenses and other current liabilities
78,756
69,742
85,737
Customer layaway deposits
33,336
20,067
21,570
Operating lease liabilities, current
60,183
58,905
58,998
Total current liabilities
172,275
286,040
269,377
Long-term debt, net
517,601
223,998
224,256
Deferred tax liability, net
2,017
416
2,080
Operating lease liabilities
184,295
188,996
180,616
Other long-term liabilities
16,822
9,258
12,337
Total liabilities
893,010
708,708
688,666
Commitments and contingencies
Stockholders' equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 57,992,965 as of June 30, 2025; 51,771,917 as of June 30, 2024; and 51,582,698 as of September 30, 2024
580
518
516
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171
30
30
30
Additional paid-in capital
448,073
347,082
348,366
Retained earnings
586,549
493,830
507,206
Accumulated other comprehensive loss
(45,174
)
(40,005
)
(51,547
)
Total equity
990,058
801,455
804,571
Total liabilities and equity
$
1,883,068
$
1,510,163
$
1,493,237
EZCORP, Inc.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
Nine Months EndedJune 30,
(in thousands)
2025
2024
Operating activities:
Net income
$
82,909
$
67,899
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
24,358
24,942
Amortization of deferred financing costs
1,238
1,212
Non-cash lease expense
43,889
43,999
Deferred income taxes
(542
)
438
Other adjustments
(1,877
)
69
Provision for inventory reserve
39
589
Stock compensation expense
9,213
7,945
Equity in net income from investment in unconsolidated affiliates
(4,180
)
(4,135
)
Changes in operating assets and liabilities, net of business acquisitions:
Pawn service charges receivable
(364
)
(1,593
)
Inventory
(9,205
)
(2,775
)
Prepaid expenses, other current assets and other assets
(74
)
(3,625
)
Accounts payable, accrued expenses and other liabilities
(58,023
)
(65,396
)
Customer layaway deposits
11,276
1,055
Income taxes
(927
)
(360
)
Net cash provided by operating activities
97,730
70,264
Investing activities:
Loans made
(738,670
)
(683,121
)
Loans repaid
417,734
391,297
Recovery of pawn loan principal through sale of forfeited collateral
291,903
272,781
Capital expenditures, net
(23,051
)
(16,870
)
Acquisitions, net of cash acquired
(17,093
)
