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.
SECOND QUARTER HIGHLIGHTS
Net income attributable to EZCORP increased 93% to $49.1 million. On an adjusted basis1, net income attributable to EZCORP increased 84% to $46.5 million.
Diluted earnings per share (EPS) increased 85% to $0.61. On an adjusted basis1, diluted earnings per share increased 76% to $0.58.
Adjusted EBITDA increased 76% to $76.9 million.
Total revenues increased 46% to $446.9 million, while gross profit increased 46% to $260.0 million.
Pawn loans outstanding (PLO) increased 33% to $349.4 million.
Completed the acquisition of Founders One, LLC ("Founders") and its subsidiary, Simple Management Group, Inc. ("SMG") effective January 2, 2026.
Grew our footprint by 123 stores, including 117 acquired stores (105 from SMG) and 6 de novo stores.
CEO COMMENTARY AND OUTLOOK
Lachie Given, Chief Executive Officer, stated, "The second quarter was another exceptional period for EZCORP, delivering record revenue, record PLO, and a 76% increase in adjusted EBITDA. This growth was driven by disciplined execution across all segments, sustained customer demand for immediate cash solutions and high-quality, affordable secondhand goods, together with favorable gold prices and the contribution from SMG.
"We expanded our footprint by 123 stores during the quarter, including the SMG and El Bufalo acquisitions completed in early January, and ended the period with 1,506 stores across 16 countries. We are focused on driving operational improvements across SMG while capitalizing on the advantages of our scaled global platform and the significant runway ahead in existing and new pawn markets. In April, we acquired 32 stores in Guatemala strengthening our market leading position there.
"Backed by a highly liquid balance sheet, we remain disciplined in capital allocation and active in pursuing attractive organic and inorganic growth opportunities. I thank our team members across every geography for their dedication to exceptional customer service. Guided by our core values of People, Pawn and Passion, we continue our focus on strengthening our core and scaling our operations, while delivering sustainable, long-term value for our shareholders."
CONSOLIDATED RESULTS
Three Months Ended March 31,
As Reported
Adjusted1
in millions, except per share amounts
2026
2025
2026
2025
Total revenues
$
446.9
$
306.3
$
434.9
$
306.3
Gross profit
$
260.0
$
178.5
$
253.4
$
178.5
Income before income taxes
$
65.5
$
34.4
$
61.8
$
34.3
Consolidated net income attributable to EZCORP
$
49.1
$
25.4
$
46.5
$
25.3
Diluted earnings per share attributable to EZCORP
$
0.61
$
0.33
$
0.58
$
0.33
EBITDA (non-GAAP measure)
$
80.8
$
43.8
$
76.9
$
43.8
PLO increased 33% to $349.4 million (16% on a same-store2 basis), primarily due to higher average loan size, continued strong pawn demand and improved operational performance.
Total revenues increased 46% and gross profit increased 46%, reflecting improved merchandise sales, jewelry scrap sales, and pawn service charges (PSC). Excluding SMG, total revenues increased 29% and gross profit increased 31%.
PSC increased 30% as a result of higher average PLO and additional stores.
Merchandise sales gross margin increased to 36% from 34%, while aged general merchandise decreased 128 basis points (bps) to 1.5% of total general merchandise inventory.
Jewelry scrap sales increased 288%, and jewelry scrap sales gross margin increased from 22% to 38% due to increase in gold price and jewelry purchases.
Net inventory increased 33% (15% on a same-store basis) due to an increase in PLO, layaways and purchases, partially offset by an increase in inventory turnover to 2.7x, from 2.5x.
Store expenses increased 33% (13% on a same-store basis), primarily due to labor costs, including minimum wage increases in Latin America.
General and administrative expenses increased 37%, primarily due to labor costs (including higher incentive compensation) and expenses associated with SMG.
Income before taxes increased to $65.5 million, up 90% from $34.4 million, and adjusted EBITDA increased 76% to $76.9 million.
Diluted earnings per share increased 85% to $0.61. On an adjusted basis, diluted earnings per share increased 76% to $0.58.
Cash and cash equivalents decreased to $354.2 million from $505.2 million as of March 31, 2025. The decrease was primarily driven by the retirement of SMG's existing third-party indebtedness of $134.2 million and cash used for acquisitions.
SEGMENT RESULTS
U.S. Pawn
PLO increased 16% to $230.5 million (13% on a same-store basis) due to an increase in average loan size, strong loan demand and improved operational performance.
Total revenues and gross profit increased 27%, driven by increased jewelry scrap sales, PSC and merchandise sales.
PSC increased 13% as a result of higher average PLO.
Merchandise sales increased 9% (7% on a same-store basis). Sales gross margin increased by 170 bps to 38%.
Jewelry scrap sales increased 228%, and jewelry scrap sales gross margin increased to 41% from 22% due to increase in gold price and jewelry purchases.
Net inventory increased 20% (16% on a same-store basis) due to increase in PLO, layaways and purchases; inventory turnover remained consistent at 2.3x. Aged general merchandise decreased by 95 bps to 2.3%, or $0.9 million of total general merchandise inventory.
Store expenses increased 9% on a total and 6% on a same-store basis, primarily due to increased labor, in line with store activity.
Segment contribution increased 59% to $78.1 million.
Segment store count increased to 559 due to the acquisition of 12 stores in Texas during the quarter.
Latin America Pawn
PLO increased 38% to $86.3 million (27% on constant currency basis). On a same-store basis, PLO increased 25% (15% increase on a constant currency basis) due to strong loan demand and improved operational performance.
Total revenues increased 34% (19% on constant currency basis), and gross profit increased 42% (27% on a constant currency basis), primarily due to increased jewelry scrap sales, PSC and merchandise sales.
PSC increased to $38.0 million, an increase of 34% (21% on a constant currency basis) as a result of higher average PLO.
Merchandise sales increased 31% (17% on constant currency basis) and 21% on a same-store basis (8% increase on a constant currency basis). Merchandise sales gross margin increased to 34% from 30%.
Jewelry scrap sales increased 64%, and jewelry scrap sales gross margin increased to 38% from 24% due to increase in gold price.
Net inventory increased 21% (10% on a constant currency basis) due to an increase in PLO. Inventory turnover remained consistent at 3.2x. On a same-store basis, net inventory increased by 11% (consistent on a constant currency basis). Aged general merchandise decreased below 1% of total general merchandise inventory.
Store expenses increased 45% (29% on a constant currency basis) and increased 33% on a same-store basis (19% on a constant currency basis) due to increased labor, in line with store activity and minimum wage increases.
Segment contribution increased 38% to $19.1 million (24% on a constant currency basis to $17.1 million).
Segment store count increased by 4 de novo stores to 840 during the quarter.
SMG
On January 2, 2026, EZCORP acquired a controlling 87.7% interest in Founders, which owns 85.1% of SMG. The second quarter of fiscal 2026 represents the first quarter of SMG consolidation. As SMG was not owned during the comparable prior-year period, results are presented on an absolute basis without year-over-year comparisons.
PLO of $32.6 million and net inventory of $26.1 million, with aged general merchandise below 1% of total general merchandise inventory.
Total revenues were $51.3 million, comprised of jewelry scrap sales of $19.1 million (with a margin of 30.6%), merchandise sales of $17.8 million (with a margin of 33.1%) and PSC of $14.4 million.
Store expenses totaled $16.6 million.
Segment contribution was $8.8 million.
Segment store count increased by 2 to 107 due to the addition of de novo stores.
FORM 10-Q
EZCORP's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 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, May 7, 2026, at 8:00 am Central Time to discuss Second Quarter Fiscal 2026 results. Analysts and institutional investors may participate on the conference call by registering online at https://register-conf.media-server.com/register/BI28c4fe4baaf941ed813a0581b4f93ab1. 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/dbus7ezd/. 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 is 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.
Follow us on social media:
Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZCORP Instagram Official https://www.instagram.com/ezcorp_official/
EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/
EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/
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 pandemics. 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: [email protected]Phone: (512) 314-2220
EZCORP, Inc.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)
Three Months EndedMarch 31,
Six Months EndedMarch 31,
(in thousands, except per share amount)
2026
2025
2026
2025
Revenues:
Merchandise sales
$
214,465
$
169,467
$
424,612
$
355,810
Jewelry scrap sales
81,240
20,938
121,149
37,670
Pawn service charges
151,128
115,871
283,045
232,923
Other revenues
48
40
94
83
Total revenues
446,881
306,316
828,900
626,486
Merchandise cost of goods sold
136,788
111,555
269,544
233,379
Jewelry scrap cost of goods sold
50,055
16,309
76,352
29,251
Gross profit
260,038
178,452
483,004
363,856
Operating expenses:
Store expenses
148,119
111,067
274,891
222,003
General and administrative
34,488
25,100
61,231
49,284
Depreciation and amortization
9,588
8,020
18,344
16,355
Loss on sale or disposal of assets and other
—
17
87
25
Total operating expenses
192,195
144,204
354,553
287,667
Operating income
67,843
34,248
128,451
76,189
Interest expense
8,354
3,281
16,520
6,428
Interest income
(2,587
)
(1,875
)
(7,401
)
(3,968
)
Equity in net income of unconsolidated affiliates
(1,166
)
(1,505
)
(2,989
)
(2,980
)
Other (income) expense
(2,244
)
(65
)
(2,336
)
913
Income before income taxes
65,486
34,412
124,657
75,796
Income tax expense
15,902
9,022
30,769
19,390
Consolidated net income
49,584
25,390
93,888
56,406
Consolidated net (income) attributable to non-controlling interest
(481
)
—
(481
)
—
Consolidated net income attributable to EZCORP
$
49,103
$
25,390
$
93,407
$
56,406
Basic earnings per share attributable to EZCORP
$
0.80
$
0.46
$
1.52
$
1.03
Diluted earnings per share attributable to EZCORP
$
0.61
$
0.33
$
1.17
$
0.74
Weighted-average basic shares outstanding
61,653
54,965
61,446
54,895
Weighted-average diluted shares outstanding
83,410
83,140
83,354
83,247
EZCORP, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
(in thousands, except per share amount)
March 31, 2026
March 31, 2025
September 30, 2025
Assets:
Current assets:
Cash and cash equivalents
$
354,175
$
505,239
$
469,524
Short-term restricted cash
958
9,499
525
Pawn loans
349,368
261,830
307,496
Pawn service charges receivable, net
53,031
42,323
48,733
Inventory, net
275,963
207,783
248,457
Prepaid expenses and other current assets
58,551
40,283
51,221
Total current assets
1,092,046
1,066,957
1,125,956
Investments in unconsolidated affiliates
26,093
13,967
18,123
Other investments
6,883
51,903
51,903
Property and equipment, net
86,894
64,150
75,331
Right-of-use assets
269,742
229,878
236,462
Long-term restricted cash
14,929
—
14,664
Goodwill
473,513
305,239
324,889
Intangible assets, net
124,657
57,079
58,832
Deferred tax asset, net
13,454
25,090
29,455
Other assets, net
18,546
15,365
15,594
Total assets
$
2,126,757
$
1,829,628
$
1,951,209
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net
$
—
$
103,325
$
—
Accounts payable, accrued expenses and other current liabilities
124,185
70,843
105,443
Customer layaway deposits
39,522
31,016
33,901
Operating lease liabilities, current
68,041
58,855
61,228
Total current liabilities
231,748
264,039
200,572
Long-term debt, net
519,001
517,188
518,076
Deferred tax liability, net
2,571
1,818
2,571
Operating lease liabilities
211,956
182,873
184,736
Other long-term liabilities
19,556
12,135
19,769
Total liabilities
984,832
978,053
925,724
Commitments and contingencies
Stockholders' equity:
Class A Non-Voting Common Stock, par value $0.01 per share; shares authorized: 100,000,000; issued and outstanding: 58,622,115 as of March 31, 2026; 52,043,599 as of March 31, 2025; 57,921,451 as of September 30, 2025
586
520
579
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3,000,000; issued and outstanding: 2,970,171 as of March 31, 2026, March 31, 2025 and September 30, 2025
30
30
30
Additional paid-in capital
451,471
347,796
450,892
Retained earnings
703,687
561,211
612,687
Accumulated other comprehensive loss
(35,765
)
(57,982
)
(38,703
)
Total EZCORP equity
1,120,009
851,575
1,025,485
Non-controlling interest
21,916
—
—
Total equity
1,141,925
851,575
1,025,485
Total liabilities and equity
$
2,126,757
$
1,829,628
$
1,951,209
EZCORP, Inc.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
Six Months EndedMarch 31,
(in thousands)
2026
2025
Operating activities:
