Core Insights - EZPAWN has launched an Online Shop to enhance customer convenience and safety while shopping for secondhand items, allowing customers to browse and purchase pre-owned merchandise online and pick it up in-store [1][2][4] Group 1: Online Shop Features - The Online Shop enables customers to search for items by zip code and distance, browse current inventory, view photos, and read product descriptions, offering a curated selection of local merchandise at various price points [2] - Hundreds of new items are added weekly, including electronics, handbags, tools, and shoes, catering to diverse customer needs [2] Group 2: Community Engagement and Services - EZPAWN promotes relationship-based shopping, allowing customers to negotiate deals and access short-term cash through pawn transactions, flexible payment options, and layaway programs [3] - The EZ+ Rewards program allows customers to earn points for additional savings, enhancing customer loyalty and engagement [3] Group 3: Company Background - EZPAWN is part of EZCORP, Inc., a leading provider of pawn services in the U.S. and Latin America, operating in 19 states and focusing on satisfying short-term cash needs [5][6] - EZCORP has been in operation since 1989 and is listed on NASDAQ under the symbol EZPW, being a member of the S&P 1000 Index and Nasdaq Composite Index [6]

Summary of EZCORP (EZPW) FY Conference Call - August 12, 2025 Company Overview - EZCORP operates as a pawn business in the US and Latin America, being the second largest in the region after First Cash [2] - The company has experienced outstanding growth due to a change in management and a focused strategy on the pawn business [2] Key Growth Drivers - Increased average loan sizes, particularly due to rising gold prices, which significantly contribute to the business [3] - Enhanced digital engagement, including online payment options and inventory viewing, along with the introduction of the Easy Reward Program to boost customer engagement [3] - The pawn industry has seen little innovation historically, allowing EZCORP to implement effective strategies that have proven successful in other sectors [3] Customer Base Insights - The core customer base primarily consists of lower-income, unbanked, or underbanked individuals, but the retail side serves a broader demographic [5] - Current economic conditions have created a gap in consumer lending, allowing EZCORP to attract additional customers who need immediate cash [6] Strategic Focus on Lending and Merchandise - The company emphasizes the interconnection between lending and merchandise sales, focusing on maximizing gross profit through pawn service charges and sales margins [8] - Jewelry represents a significant portion of collateral, with gold jewelry accounting for two-thirds of collateral in the US, influencing average loan sizes [10] Risk Management - The management team is prepared to respond quickly to fluctuations in gold prices, adjusting lending practices and inventory management accordingly [10][11] - The company maintains a focus on quality loan balances and efficient inventory turnover to mitigate risks [26] Regional Performance - The US business has shown double-digit growth, while the Latin American segment is about 18-24 months behind in terms of performance improvements [14][15] - Jewelry now represents 40% of the loan balance in Latin America, indicating growth in this segment [15] Margin Improvement Potential - Margins in Latin America are improving, driven by increased sales revenue and lower operational costs, although they are not expected to match US margins [16][18] Market Position and Valuation - Despite recent share price increases, EZCORP trades at a discount compared to larger peers, attributed to historical business diversifications that have since been streamlined [19] - Investor confidence is gradually increasing as the company focuses on its core pawn business and demonstrates growth potential [20] Capital Allocation Strategy - The company has approximately $100 million in extra liquidity, which will be allocated towards growth initiatives, including new store openings and potential acquisitions [21][22] - EZCORP aims to achieve scale through acquisitions, enhancing cash flow and EBITDA margins [22][23] Consumer Health and Economic Outlook - Demand for loans is increasing, indicating that the consumer base is facing more financial strain compared to the previous year [27] - The company does not foresee significant changes in consumer behavior despite potential economic challenges [27] Impact of Tariffs - Tariffs are expected to have a net positive effect on the business, as they may increase the average loan size and pawn service charges, although operational costs may rise [28][29] Conclusion - EZCORP is positioned for continued growth through strategic management, enhanced customer engagement, and a focus on its core pawn business, while navigating potential economic challenges and market dynamics effectively [4][19]

Core Insights - EZCORP, Inc. is a leading provider of pawn transactions in the United States and Latin America, focusing on satisfying short-term cash needs for consumers [3] Company Overview - EZCORP was formed in 1989 and has grown significantly in the pawn transaction industry [3] - The company also sells pre-owned and recycled merchandise, primarily from collateral forfeited from pawn lending operations [3] - EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index [3] Upcoming Investor Events - EZCORP will participate in the Canaccord Genuity 45 Annual Growth Conference in Boston from August 12–14, 2025, with CFO Tim Jugmans participating in a fireside chat on August 12 [4] - The BTIG Consumer Finance Corporate Access Day will take place on September 17, 2025, where CEO Lachie Given and CFO Tim Jugmans will host one-on-one meetings [4] - The Stephens Midwest Non-Deal Roadshow is scheduled for September 18–19, 2025, with CFO Tim Jugmans meeting institutional investors in Chicago and Milwaukee [4]

Core Viewpoint - Ezcorp (EZPW) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant buying or selling activity that affects stock prices [3]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [6]. - The system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, ensuring that only the top 20% receive a "Strong Buy" or "Buy" rating [8][9]. Ezcorp's Earnings Estimate Revisions - For the fiscal year ending September 2025, Ezcorp is expected to earn $1.31 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.1% over the past three months [7]. - The upgrade to Zacks Rank 2 places Ezcorp in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [9].

Core Viewpoint - EZcorp (EZPW) shows potential for significant upside, with a mean price target of $21 indicating a 42.5% increase from its current price of $14.74 [1] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $3.37, suggesting variability among analysts [2] - The lowest estimate is $17.00, indicating a 15.3% increase, while the highest estimate is $25.00, suggesting a 69.6% increase [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about EZPW's earnings prospects, with a positive trend in earnings estimate revisions [11] - Over the last 30 days, one estimate has increased, leading to a 2.9% rise in the Zacks Consensus Estimate [12] - EZPW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Targets - While the consensus price target may not be a reliable indicator of the stock's potential gain, it does provide a directional guide for price movement [14]

Financial Data and Key Metrics Changes - The company reported record third-quarter revenue of $319.9 million, up 14% year over year, with adjusted EBITDA rising 42% to $45.2 million and diluted EPS increasing 38% to $0.33 [3][10][19] - The total pawn loans outstanding (PLO) reached $293.2 million, reflecting a 12% year-over-year increase [17][20] - Cash at the end of the quarter was $472.1 million, down from $505.2 million last quarter, due to capital deployment into store acquisitions [8][9] Business Line Data and Key Metrics Changes - U.S. pawn segment revenue increased 11% year over year to $220 million, with PLO up 11% and inventory rising 36% [20][24] - Latin American segment revenue grew 21% to $99.9 million, with PLO up 16% [27][29] - Merchandise sales rose 10%, with same-store sales up 9%, supported by strong customer demand [10][11] Market Data and Key Metrics Changes - The company operates 1,336 pawn stores across the U.S. and Latin America, including 604 in Mexico [4][6] - The U.S. market continues to drive the majority of business, contributing 69% of revenue and 71% of gross profit [12] - In Latin America, the company has expanded its footprint with 791 stores across four countries, focusing on operational best practices [28][29] Company Strategy and Development Direction - The company is focused on expanding its store footprint and earning asset base, with a disciplined capital deployment strategy [5][6] - The EZ Plus rewards program has grown to 6.5 million members, accounting for over 70% of known customer transactions [13][14] - The strategy emphasizes investing in the platform, empowering employees, and delivering consistent service at scale [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to scale operations and deliver long-term value for shareholders, citing strong operational execution and a robust balance sheet [33][34] - The company anticipates continued growth in PLO and inventory efficiency, with a focus on capitalizing on acquisition opportunities [30][31] - Management acknowledged the impact of gold prices on margins but emphasized the ongoing demand for cash among consumers [100][101] Other Important Information - The company repurchased $3 million worth of shares during the quarter and provided an additional $3 million in secured loans to Founders One [9] - The acquisition pipeline remains robust, with a focus on both existing and new markets [39][90] Q&A Session Summary Question: What is driving the strong margin performance in U.S. retail? - Management attributed the strong margin performance to increased gold prices and improved lending practices [36][37] Question: Can you discuss the acquisition pipeline and market pricing? - Management indicated a strong balance sheet allows for opportunistic acquisitions, with a robust pipeline across existing and new markets [38][39] Question: Why is the company not buying back more stock? - Management emphasized prioritizing growth and scale over stock buybacks, despite recognizing the undervaluation of shares [47][51] Question: What is the focus on acquisitions in Latin America versus the U.S.? - Management stated that the focus is balanced between both regions, with significant opportunities in existing markets [89][94] Question: How is the digitization of storefronts progressing? - Management noted that while progress has been made, the company is still in the early stages of fully digitizing its storefronts [107][108]

Financial Performance - Total revenue reached $319.9 million, a 14% increase, driven by growth in Pawn Service Charges (PSC), merchandise sales, and scrap revenue[23] - EBITDA increased by 42% to $45.2 million, with an EBITDA margin of 141%, up 280 bps[28] - Diluted EPS increased by 38% to $033[27] - Pawn Loans Outstanding (PLO) reached a record $2932 million, up 12%[29] Segment Performance - U S Pawn segment revenue increased by 11% to $2200 million, with earning assets up 21%[64, 66] - Latin America Pawn segment revenue increased by 21% to $999 million, with earning assets up 18%[87, 90] Store Growth and Acquisitions - The company acquired 40 stores in Mexico under the Monte Providencia and Tu Empeño Efectivo brands[20] - Ten de novo stores were opened in Latin America, including 6 in Mexico, 3 in Guatemala, and 1 in El Salvador[20] - Three stores were acquired in the U S, including one luxury store in Miami Beach[20] Balance Sheet and Capital Allocation - The company's cash balance was $4721 million[18] - Approximately $20 million of shares were repurchased in Q3, with an additional $10 million repurchased in July[20]

Core Insights - Ezcorp reported revenue of $310.98 million for the quarter ended June 2025, reflecting a year-over-year increase of 10.5% and a surprise of +2% over the Zacks Consensus Estimate of $304.89 million [1] - The company's EPS for the quarter was $0.33, compared to $0.23 in the same quarter last year, resulting in an EPS surprise of +43.48% against the consensus estimate of $0.23 [1] Revenue Breakdown - Merchandise sales reached $168.62 million, exceeding the average estimate of $167.53 million, representing a year-over-year change of +6.6% [4] - Pawn service charges totaled $115.34 million, slightly below the average estimate of $117.04 million, with a year-over-year increase of +7% [4] - Jewelry scrapping sales significantly increased to $26.97 million, surpassing the average estimate of $20.31 million, marking a substantial year-over-year change of +75.2% [4] Stock Performance - Over the past month, Ezcorp's shares have returned -4.7%, contrasting with the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - Ezcorp reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and up from $0.23 per share a year ago, representing an earnings surprise of +43.48% [1] - The company posted revenues of $310.98 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.00%, compared to year-ago revenues of $281.42 million [2] - Over the last four quarters, Ezcorp has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Ezcorp shares have increased approximately 7.5% since the beginning of the year, while the S&P 500 has gained 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.29 on revenues of $318.84 million, and for the current fiscal year, it is $1.28 on revenues of $1.25 billion [7] Group 3: Industry Context - The Financial - Consumer Loans industry, to which Ezcorp belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ezcorp's stock performance [5] - The unfavorable estimate revisions trend prior to the earnings release resulted in a Zacks Rank 4 (Sell) for Ezcorp, suggesting expected underperformance in the near future [6]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) EZCORP achieved record revenue and Pawn Loans Outstanding, with adjusted EBITDA up 42% and diluted EPS up 36%, supported by strategic expansion and strong liquidity Q3 Fiscal 2025 Key Metrics vs. Prior Year | Metric | Q3 2025 | Change (YoY) | | :--- | :--- | :--- | | Total Revenues ($ million) | $311.0 | +11% | | Net Income ($ million) | $26.5 | +48% | | Adjusted Net Income ($ million) | $25.2 | +46% | | Diluted EPS ($) | $0.34 | +36% | | Adjusted Diluted EPS ($) | $0.33 | +38% | | Adjusted EBITDA ($ million) | $45.2 | +42% | | Pawn Loans Outstanding (PLO) ($ million) | $291.6 | +11% | - The company expanded its footprint by **52 stores** during the quarter, including **49 in Latin America** (**40 of which were acquired in Mexico**) and **3 in the U.S.**[4](index=4&type=chunk)[5](index=5&type=chunk) - CEO Lachie Given highlighted disciplined execution and platform scalability as key drivers for turning top-line momentum into exceptional earnings growth[3](index=3&type=chunk) - The company's liquidity stands at **$472 million**, strengthening its balance sheet to fund accelerated growth and strategic acquisitions, with a compelling M&A pipeline[5](index=5&type=chunk) [Segment Performance](index=2&type=section&id=SEGMENT%20RESULTS) Both U.S. and Latin America Pawn segments demonstrated strong growth, with U.S. PLO up 11% and Latin America contribution up 30% constant currency [U.S. Pawn](index=2&type=section&id=U.S.%20Pawn) The U.S. Pawn segment delivered robust performance with an 11% increase in PLO to $221.1 million and a 32% rise in segment contribution U.S. Pawn Q3 2025 Performance | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Pawn Loans Outstanding (PLO) ($ million) | $221.1 million | +11% | | Total Revenues (YoY Change) | - | +11% | | Gross Profit (YoY Change) | - | +12% | | Segment Contribution ($ million) | $47.6 million | +32% | | Store Count (stores) | 545 | +3 stores | - Merchandise sales gross margin improved by **80 basis points** to **38.5%**, and aged general merchandise inventory decreased by **260 basis points**[7](index=7&type=chunk) - Net inventory increased by **36%**, attributed to higher PLO, layaways, and purchases, while inventory turnover decreased from **2.6x** to **2.1x**[7](index=7&type=chunk) [Latin America Pawn](index=4&type=section&id=Latin%20America%20Pawn) Latin America Pawn showed strong growth, with PLO up 13% (16% constant currency) and segment contribution up 30% constant currency, expanding by 49 stores Latin America Pawn Q3 2025 Performance (As Reported vs. Constant Currency) | Metric | As Reported (YoY % Change) | Constant Currency (YoY % Change) | | :--- | :--- | :--- | | Pawn Loans Outstanding (PLO) | +13% | +16% | | Total Revenues | +11% | +21% | | Gross Profit | +6% | +16% | | Segment Contribution | +20% | +30% | - The store count in the segment increased by **49** to **791**, mainly due to the acquisition of **40 stores** and the opening of **10 new (de novo) stores**[12](index=12&type=chunk) - Merchandise sales gross margin decreased slightly from **32%** to **31%**, while aged general merchandise inventory increased from **0.9%** to **2.2%** of total[12](index=12&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show an 11% revenue increase to $311.0 million and a 48% net income increase, with cash significantly up to $472.1 million due to debt issuance [Condensed Consolidated Statements of Operations](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q3 2025 total revenues grew 11% to $311.0 million, operating income more than doubled to $36.0 million, and net income rose 48% to $26.5 million Q3 Statement of Operations Summary (in thousands) | Account | Q3 2025 ($ thousands) | Q3 2024 ($ thousands) | | :--- | :--- | :--- | | Total Revenues | $310,981 | $281,421 | | Gross Profit | $183,639 | $166,727 | | Operating Income | $35,995 | $22,154 | | Net Income | $26,503 | $17,950 | | Diluted EPS | $0.34 | $0.25 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets reached $1.88 billion, with cash at $472.1 million, and long-term debt increasing to $517.6 million due to new issuance Balance Sheet Key Items (in thousands) | Account | June 30, 2025 ($ thousands) | Sept 30, 2024 ($ thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $472,088 | $170,513 | | Pawn loans | $291,634 | $274,084 | | Total Assets | $1,883,068 | $1,493,237 | | Long-term debt, net | $517,601 | $224,256 | | Total Equity | $990,058 | $804,571 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the nine months ended June 30, 2025, operating activities provided $97.7 million, investing used $66.0 million, and financing provided $275.6 million, resulting in a $307.3 million net cash increase Nine Months Ended June 30, 2025 Cash Flow Summary (in thousands) | Activity | Net Cash Flow ($ thousands) | | :--- | :--- | | Net cash provided by operating activities | $97,730 | | Net cash used in investing activities | $(66,040) | | Net cash provided by financing activities | $275,606 | | **Net increase in cash** | **$307,270** | [Store Count Activity](index=14&type=section&id=STORE%20COUNT%20ACTIVITY) In Q3 2025, EZCORP's total store count increased by a net of 52 to 1,336, driven by 43 acquisitions and 10 new store openings Store Count Change in Q3 2025 | Region | Start of Qtr (Mar 31, 2025) (stores) | End of Qtr (Jun 30, 2025) (stores) | Net Change (stores) | | :--- | :--- | :--- | :--- | | U.S. Pawn | 542 | 545 | +3 | | Latin America Pawn | 742 | 791 | +49 | | **Consolidated** | **1,284** | **1,336** | **+52** | - The primary driver of store growth in Q3 was acquisitions, with **43 acquired locations**, supplemented by **10 new store openings**[30](index=30&type=chunk) [Non-GAAP Financial Information](index=15&type=section&id=Non-GAAP%20Financial%20Information) This section presents non-GAAP measures, including constant currency and adjusted results, to clarify operational performance by excluding foreign currency and non-recurring items - The company uses non-GAAP measures like constant currency and adjusted results to provide a more complete understanding of underlying business trends and for period-over-period comparison[31](index=31&type=chunk) Q3 2025 GAAP vs. Adjusted (Non-GAAP) Results (in millions, except EPS) | Metric | Reported (GAAP) ($ million) | Adjusted (Non-GAAP) ($ million) | | :--- | :--- | :--- | | Total Revenues | $311.0 | $319.9 | | Gross Profit | $183.6 | $188.4 | | Income Before Tax | $34.7 | $34.0 | | Net Income | $26.5 | $25.2 | | Diluted EPS ($) | $0.34 | $0.33 | | EBITDA | $45.7 | $45.2 | - Constant currency adjustments for Q3 2025 show that revenue growth was **14%** YoY, compared to the **11%** reported, and Latin America Pawn's gross profit growth was **16%** YoY, compared to the **6%** reported[36](index=36&type=chunk)