EZCORP(EZPW) - 2025 Q3 - Quarterly Results

Financial and Operational Highlights 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][5] - CEO Lachie Given highlighted disciplined execution and platform scalability as key drivers for turning top-line momentum into exceptional earnings growth[3] - 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] Segment Performance 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 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] - Net inventory increased by 36%, attributed to higher PLO, layaways, and purchases, while inventory turnover decreased from 2.6x to 2.1x[7] Latin America Pawn 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] - 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] Consolidated Financial Statements 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 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 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 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 | $307,270 | Store Count Activity In Q3 2025, EZCORP's total store count increased by a net of 52 to 1,336, driven by 43 acquisitions and 10 new store openings Store Count Change in Q3 2025 | Region | Start of Qtr (Mar 31, 2025) (stores) | End of Qtr (Jun 30, 2025) (stores) | Net Change (stores) | | :--- | :--- | :--- | :--- | | U.S. Pawn | 542 | 545 | +3 | | Latin America Pawn | 742 | 791 | +49 | | Consolidated | 1,284 | 1,336 | +52 | - The primary driver of store growth in Q3 was acquisitions, with 43 acquired locations, supplemented by 10 new store openings[30] Non-GAAP Financial Information This section presents non-GAAP measures, including constant currency and adjusted results, to clarify operational performance by excluding foreign currency and non-recurring items - The company uses non-GAAP measures like constant currency and adjusted results to provide a more complete understanding of underlying business trends and for period-over-period comparison[31] Q3 2025 GAAP vs. Adjusted (Non-GAAP) Results (in millions, except EPS) | Metric | Reported (GAAP) ($ 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]