Open the filing on EDGAREZCORP Reports Second Quarter Fiscal 2026 Results
Record Operating Results; PLO and Revenue reach all-time highs
Austin, Texas (May 6, 2026) - EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States, Latin America and the Caribbean, today announced results for its second quarter ended March 31, 2026.
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 basis, net income attributable to EZCORP increased 84% to $46.5 million.
- Diluted earnings per share (EPS) increased 85% to $0.61. On an adjusted basis, 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 | Adjusted |
| 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-store 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.
Note: The underlying numbers are in thousands and, as a result, may not agree to the percentages calculated from numbers in millions and tables may not foot. “Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.
“Same Store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.
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.
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FORWARD LOOKING STATEMENTS
Forward-looking statements notice
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.
Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions. Numbers may not foot or cross foot due to rounding. “Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.
“Same-store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended March 31, | Six Months Ended March 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 | |
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 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended March 31, |
|---|
| (in thousands) | | 2026 | | 2025 |
| Operating activities: | | |
| Net income | $93,888 | | $56,406 | |
| Adjustments to reconcile net income to net cash flows from operating activities: | | |
| Depreciation and amortization | 18,344 | | 16,355 | |
| Amortization of deferred financing costs | 925 | | 725 | |
| Non-cash lease expense | 33,267 | | 28,943 | |
| Deferred income taxes | (259) | | 10 | |
| Other adjustments | (897) | | (1,241) | |
| Provision for inventory reserve | (849) | | 39 | |
| Stock compensation expense | 8,534 | | 5,001 | |
| Equity in net income from investment in unconsolidated affiliates | (2,989) | | (2,980) | |
| Gain from remeasurement of previously held equity interest | (1,596) | | - | |
| Changes in operating assets and liabilities, net of business acquisitions: | | |
| Pawn service charges receivable | 1,515 | | 1,547 | |
| Inventory | (298) | | (5,390) | |
| Prepaid expenses, other current assets and other assets | (19,114) | | 444 | |
| Accounts payable, accrued expenses and other liabilities | (47,443) | | (45,490) | |
| Customer layaway deposits | 3,537 | | 9,640 | |
| Income taxes | 1,044 | | (1,081) | |
| Net cash provided by operating activities | 87,609 | | 62,928 | |
| Investing activities: | | |
| Loans made | (591,148) | | (484,611) | |
| Loans repaid | 351,519 | | 284,095 | |
| Recovery of pawn loan principal through sale of forfeited collateral | 240,010 | | 198,387 | |
| Capital expenditures | (17,910) | | (13,966) | |
| Acquisitions, net of cash acquired | (25,640) | | (79) | |
| Issuance of notes receivable | (9,000) | | - | |
| Investment in unconsolidated affiliate | (7,231) | | (509) | |
| Dividends from unconsolidated affiliates | 1,810 | | 1,902 | |
| Net cash used in investing activities | (57,590) | | (14,781) | |
| Financing activities: | | |
| Taxes paid related to net share settlement of equity awards | (6,347) | | (3,971) | |
| Proceeds from issuance of debt | - | | 300,000 | |
| Debt issuance cost | - | | (5,310) | |
| Payments on debt | (134,151) | | - | |
| Purchase and retirement of treasury stock | (4,008) | | (3,997) | |
| Payments of finance leases | (543) | | (266) | |
| Net cash (used in) provided by financing activities | (145,049) | | 286,456 | |
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | 379 | | 328 | |
| Net (decrease) increase in cash, cash equivalents and restricted cash | (114,651) | | 334,931 | |
| Cash and cash equivalents and restricted cash at beginning of period | 484,713 | | 179,807 | |
| Cash and cash equivalents and restricted cash at end of period | $370,062 | | $514,738 | |
OPERATING SEGMENT RESULTS
(Unaudited)
As a result of the acquisition of Founders One, LLC and its subsidiary Simple Management Group, Inc. effective January 2, 2026, the composition of our reportable segments changed beginning in the second quarter of fiscal 2026. SMG is now reported as a standalone reportable segment. Our equity interest in Cash Converters International Limited is now included within Corporate. Prior period segment information has been recast to reclassify Cash Converters equity income and interest income from notes receivable from Founders from the 'Other Investments' segment to Corporate. Because SMG was not a consolidated subsidiary in any prior period presented, no prior period SMG segment results exist.
| Three Months Ended March 31, 2026 |
|---|
| (in thousands) | U.S. Pawn | Latin America Pawn | SMG | Total Segments | Corporate Items | Consolidated |
| Revenues: | | | | | | |
| Merchandise sales | $127,884 | $68,762 | $17,819 | $214,465 | $ - | $214,465 |
| Jewelry scrap sales | 55,490 | 6,640 | 19,110 | 81,240 | - | 81,240 |
| Pawn service charges | 98,770 | 37,976 | 14,382 | 151,128 | - | 151,128 |
| Other revenues | 32 | 16 | - | 48 | - | 48 |
| Total revenues | 282,176 | 113,394 | 51,311 | 446,881 | - | 446,881 |
| Merchandise cost of goods sold | 79,647 | 45,227 | 11,914 | 136,788 | - | 136,788 |
| Jewelry scrap cost of goods sold | 32,658 | 4,137 | 13,260 | 50,055 | - | 50,055 |
| Gross profit | 169,871 | 64,030 | 26,137 | 260,038 | - | 260,038 |
| Segment and corporate expenses (income): | | | | | | |
| Store expenses | 88,982 | 42,523 | 16,614 | 148,119 | - | 148,119 |
| General and administrative | - | - | - | - | 34,488 | 34,488 |
| Depreciation and amortization | 2,809 | 2,733 | 674 | 6,216 | 3,372 | 9,588 |
| Interest expense | - | - | - | - | 8,354 | 8,354 |
| Interest income | - | - | - | - | (2,587) | (2,587) |
| Equity in net income of unconsolidated affiliates | - | - | - | - | (1,166) | (1,166) |
| Other (income) expense | - | (343) | 38 | (305) | (1,939) | (2,244) |
| Segment contribution | $78,080 | $19,117 | $8,811 | $106,008 | | |
| Income (loss) before income taxes | | | | $106,008 | $(40,522) | $65,486 |
| Three Months Ended March 31, 2025 | |
|---|
| (in thousands) | U.S. Pawn | Latin America Pawn | Total Segments | Corporate Items | Consolidated |
| Revenues: | | | | | |
| Merchandise sales | $116,915 | $52,552 | $169,467 | $ - | $169,467 |
| Jewelry scrap sales | 16,898 | 4,040 | 20,938 | - | 20,938 |
| Pawn service charges | 87,548 | 28,323 | 115,871 | - | 115,871 |
| Other revenues | 24 | 16 | 40 | - | 40 |
| Total revenues | 221,385 | 84,931 | 306,316 | - | 306,316 |
| Merchandise cost of goods sold | 74,772 | 36,783 | 111,555 | - | 111,555 |
| Jewelry scrap cost of goods sold | 13,235 | 3,074 | 16,309 | - | 16,309 |
| Gross profit | 133,378 | 45,074 | 178,452 | - | 178,452 |
| Segment and corporate expenses (income): | | | | | |
| Store expenses | 81,718 | 29,349 | 111,067 | - | 111,067 |
| General and administrative | - | - | - | 25,100 | 25,100 |
| Depreciation and amortization | 2,682 | 1,989 | 4,671 | 3,349 | 8,020 |
| Loss on sale or disposal of assets and other | 17 | - | 17 | - | 17 |
| Interest expense | - | - | - | 3,281 | 3,281 |
| Interest income | - | - | - | (1,875) | (1,875) |
| Equity in net income of unconsolidated affiliates | - | - | - | (1,505) | (1,505) |
| Other (income) expense | 4 | (137) | (133) | 68 | (65) |
| Segment contribution | $48,957 | $13,873 | $62,830 | | |
| Income (loss) before income taxes | | | $62,830 | $(28,418) | $34,412 |
- Interest income includes $0.6 million of interest income from notes receivable from Founders, which has been recast from the "Other Investments" segment to Corporate to conform to the current period presentation.
- Equity in net income of unconsolidated affiliates includes $1.9 million of equity income from CCV, which has been recast from the "Other Investments" segment to Corporate to conform to the current period presentation.
| Six Months Ended March 31, 2026 |
|---|
| (in thousands) | U.S. Pawn | Latin America Pawn | SMG | Total Segments | Corporate Items | Consolidated |
| Revenues: | | | | | | |
| Merchandise sales | $266,926 | $139,867 | $17,819 | $424,612 | $ - | $424,612 |
| Jewelry scrap sales | 91,005 | 11,034 | 19,110 | 121,149 | - | 121,149 |
| Pawn service charges | 193,944 | 74,719 | 14,382 | 283,045 | - | 283,045 |
| Other revenues | 61 | 33 | - | 94 | - | 94 |
| Total revenues | 551,936 | 225,653 | 51,311 | 828,900 | - | 828,900 |
| Merchandise cost of goods sold | 165,334 | 92,296 | 11,914 | 269,544 | - | 269,544 |
| Jewelry scrap cost of goods sold | 56,022 | 7,070 | 13,260 | 76,352 | - | 76,352 |
| Gross profit | 330,580 | 126,287 | 26,137 | 483,004 | - | 483,004 |
| Segment and corporate expenses (income): | | | | | | |
| Store expenses | 176,148 | 82,129 | 16,614 | 274,891 | - | 274,891 |
| General and administrative | - | - | - | - | 61,231 | 61,231 |
| Depreciation and amortization | 5,532 | 5,268 | 674 | 11,474 | 6,870 | 18,344 |
| Loss on sale or disposal of assets and other | 87 | - | - | 87 | - | 87 |
| Interest expense | - | - | - | - | 16,520 | 16,520 |
| Interest income | - | - | - | - | (7,401) | (7,401) |
| Equity in net income of unconsolidated affiliates | - | - | - | - | (2,989) | (2,989) |
| Other (income) expense | - | (366) | 38 | (328) | (2,008) | (2,336) |
| Segment contribution | $148,813 | $39,256 | $8,811 | $196,880 | | |
| Income (loss) before income taxes | | | | $196,880 | $(72,223) | $124,657 |
- Interest income includes $1.0 million of interest income from notes receivable from Founders recorded in the first quarter of fiscal 2026, which has been recast from the "Other Investments" segment to Corporate to conform to the current period presentation.
- Equity in net income of unconsolidated affiliates includes $1.8 million of equity income from CCV recorded in the first quarter of fiscal 2026, which has been recast from the "Other Investments" segment to Corporate to conform to the current period presentation.
| Six Months Ended March 31, 2025 | |
|---|
| (in thousands) | U.S. Pawn | Latin America Pawn | Total Segments | Corporate Items | Consolidated |
| Revenues: | | | | | |
| Merchandise sales | $245,715 | $110,095 | $355,810 | $ - | $355,810 |
| Jewelry scrap sales | 32,396 | 5,274 | 37,670 | - | 37,670 |
| Pawn service charges | 175,424 | 57,499 | 232,923 | - | 232,923 |
| Other revenues | 51 | 32 | 83 | - | 83 |
| Total revenues | 453,586 | 172,900 | 626,486 | - | 626,486 |
| Merchandise cost of goods sold | 156,328 | 77,051 | 233,379 | - | 233,379 |
| Jewelry scrap cost of goods sold | 25,203 | 4,048 | 29,251 | - | 29,251 |
| Gross profit | 272,055 | 91,801 | 363,856 | - | 363,856 |
| Segment and corporate expenses (income): | | | | | |
| Store expenses | 163,199 | 58,804 | 222,003 | - | 222,003 |
| General and administrative | - | - | - | 49,284 | 49,284 |
| Depreciation and amortization | 5,399 | 4,035 | 9,434 | 6,921 | 16,355 |
| Loss on sale or disposal of assets and other | 17 | 8 | 25 | - | 25 |
| Interest expense | - | - | - | 6,428 | 6,428 |
| Interest income | - | - | - | (3,968) | (3,968) |
| Equity in net income of unconsolidated affiliates | - | - | - | (2,980) | (2,980) |
| Other (income) expense | (7) | (208) | (215) | 1,128 | 913 |
| Segment contribution | $103,447 | $29,162 | $132,609 | | |
| Income (loss) before income taxes | | | $132,609 | $(56,813) | $75,796 |
- Interest income includes $1.2 million of interest income from notes receivable from Founders, which has been recast from the "Other Investments" segment to Corporate to conform to the current period presentation.
- Equity in net income of unconsolidated affiliates includes $3.5 million of equity income from CCV, which has been recast from the "Other Investments" segment to Corporate to conform to the current period presentation.
STORE COUNT ACTIVITY
(Unaudited)
| Six Months Ended March 31, 2026 |
|---|
| U.S. Pawn | Latin America Pawn | SMG | Consolidated |
|---|
| As of September 30, 2025 | 545 | 815 | - | 1,360 |
| New locations opened | - | 7 | - | 7 |
| Locations acquired | 3 | 14 | - | 17 |
| Locations combined or closed | (1) | - | - | (1) |
| As of December 31, 2025 | 547 | 836 | - | 1,383 |
| New locations opened | - | 4 | 2 | 6 |
| Locations acquired | 12 | - | 105 | 117 |
| As of March 31, 2026 | 559 | 840 | 107 | 1,506 |
| Six Months Ended March 31, 2025 |
|---|
| U.S. Pawn | Latin America Pawn | Consolidated |
|---|
| As of September 30, 2024 | 542 | 737 | 1,279 |
| New locations opened | - | 4 | 4 |
| As of December 31, 2024 | 542 | 741 | 1,283 |
| New locations opened | - | 9 | 9 |
| Locations acquired | - | 1 | 1 |
| Locations combined or closed | - | (9) | (9) |
| As of March 31, 2025 | 542 | 742 | 1,284 |
Non-GAAP Financial Information (Unaudited)
In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.
Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.
Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and six months ended March 31, 2026 and 2025 were as follows:
| March 31, | Three Months Ended March 31, | Six Months Ended March 31, |
|---|
| 2026 | 2025 | 2026 | 2025 | 2026 | 2025 |
|---|
| Mexican peso | 18.0 | | 20.4 | | 17.6 | | 20.4 | | 17.9 | | 20.3 | |
| Guatemalan quetzal | 7.5 | | 7.6 | | 7.5 | | 7.6 | | 7.5 | | 7.5 | |
| Honduran lempira | 26.3 | | 25.2 | | 26.2 | | 25.2 | | 26.1 | | 25.0 | |
| Australian dollar | 1.5 | | 1.6 | | 1.4 | | 1.6 | | 1.5 | | 1.6 | |
Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.
Miscellaneous Non-GAAP Financial Measures
| Three Months Ended March 31, |
|---|
| 2026 | 2025 |
|---|
| Consolidated net income | $49.6 | | $25.4 | |
| Interest expense | 8.4 | | 3.3 | |
| Interest income | (2.6) | | (1.9) | |
| Income tax expense | 15.9 | | 9.0 | |
| Depreciation and amortization | 9.6 | | 8.0 | |
| EBITDA | $80.8 | | $43.8 | |
| Total Revenues | Gross Profit | Income Before Tax | Tax Effect | Consolidated Net Income | Diluted EPS | EBITDA |
|---|
| 2026 Q2 Reported | $446.9 | $260.0 | $65.5 | $15.9 | $49.6 | $0.61 | $80.8 |
| Founders fair value adjustment | - | - | (1.6) | (0.4) | (1.2) | (0.01) | (1.6) |
| Corporate lease termination | - | - | (0.6) | (0.2) | (0.4) | (0.01) | (0.6) |
| Non-recurring foreign tax expense | - | - | 0.1 | (0.1) | 0.2 | - | 0.1 |
| FX impact | - | - | (0.4) | (0.1) | (0.3) | - | (0.4) |
| Constant Currency | (12.0) | (6.6) | (1.2) | (0.3) | (0.9) | (0.01) | (1.4) |
| 2026 Q2 Adjusted | $434.9 | $253.4 | $61.8 | $14.8 | $47.0 | $0.58 | $76.9 |
| Total Revenues | Gross Profit | Income Before Tax | Tax Effect | Consolidated Net Income | Diluted EPS | EBITDA |
|---|
| 2025 Q2 Reported | $306.3 | $178.5 | $34.4 | $9.0 | $25.4 | $0.33 | $43.8 |
| FX impact | - | - | (0.1) | - | (0.1) | - | - |
| 2025 Q2 Adjusted | $306.3 | $178.5 | $34.3 | $9.0 | $25.3 | $0.33 | $43.8 |
| Three Months Ended March 31, 2026 | Six Months Ended March 31, 2026 |
|---|
| (in millions) | U.S. Dollar Amount | Percentage Change YOY | U.S. Dollar Amount | Percentage Change YOY |
| Consolidated revenues | $446.9 | 46% | $828.9 | 32% |
| Currency exchange rate fluctuations | (12.0) | | (19.5) | |
| Constant currency consolidated revenues | $434.9 | 42% | $809.4 | 29% |
| Consolidated gross profit | $260.0 | 46% | $483.0 | 33% |
| Currency exchange rate fluctuations | (6.6) | | (10.7) | |
| Constant currency consolidated gross profit | $253.4 | 42% | $472.3 | 30% |
| Consolidated net inventory | $276.0 | 33% | $276.0 | 33% |
| Currency exchange rate fluctuations | (5.5) | | (5.5) | |
| Constant currency consolidated net inventory | $270.5 | 30% | $270.5 | 30% |
| Latin America Pawn gross profit | $64.0 | 42% | $126.3 | 38% |
| Currency exchange rate fluctuations | (6.6) | | (10.8) | |
| Constant currency Latin America Pawn gross profit | $57.4 | 27% | $115.5 | 26% |
| Latin America Pawn PLO | $86.3 | 38% | $86.3 | 38% |
| Currency exchange rate fluctuations | (7.3) | | (7.3) | |
| Constant currency Latin America Pawn PLO | $79.0 | 27% | $79.0 | 27% |
| Latin America Pawn PSC revenues | $38.0 | 34% | $74.7 | 30% |
| Currency exchange rate fluctuations | (3.8) | | (6.1) | |
| Constant currency Latin America Pawn PSC revenues | $34.2 | 21% | $68.6 | 19% |
| Latin America Pawn merchandise sales | $68.8 | 31% | $139.9 | 27% |
| Currency exchange rate fluctuations | (7.4) | | (12.3) | |
| Constant currency Latin America Pawn merchandise sales | $61.4 | 17% | $127.6 | 16% |
| Latin America Pawn segment profit before tax | $19.1 | 38% | $39.3 | 35% |
| Currency exchange rate fluctuations | (2.0) | | (3.2) | |
| Constant currency Latin America Pawn segment profit before tax | $17.1 | 24% | $36.1 | 24% |
Contacts
Email: Investor_Relations@ezcorp.com
Phone: (512) 314-2220