EZCORP(EZPW) - 2025 Q4 - Annual Results

Revenue and Profit Growth - Fourth quarter total revenues increased 14% to $336.8 million, while gross profit increased 13% to $198.6 million[8] - Full year total revenues increased 10% to $1,274.3 million, with gross profit rising 9% to $746.1 million[8] - Adjusted EBITDA for the fourth quarter rose 33% to $47.9 million, and for the full year, it increased 26% to $191.2 million[8] - Net income for the fourth quarter surged 76% to $26.7 million, while full year net income rose 32% to $109.6 million[8] - Diluted earnings per share (EPS) for the fourth quarter increased 62% to $0.34, and for the full year, it rose 29% to $1.42[8] - Total revenues for the twelve months ended September 30, 2025, were $1.27 billion, compared to $1.45 billion for the previous year, a decline of 12.4%[29] - The company reported a segment contribution of $67.4 million for the three months ended September 30, 2025, down from $75.0 million in the same quarter of 2024[26] - The company reported a segment contribution of $211.6 million, with U.S. Pawn contributing $165.3 million and Latin America Pawn contributing $38.8 million[31] Store Expansion and Operations - The company opened 40 de novo stores and acquired 52 locations in fiscal 2025, more than doubling the total acquisitions from the previous two years[6] - The company opened 17 new locations and acquired 8 locations during the quarter, bringing the total store count to 1,360[34] - The company experienced a total of 11 locations combined or closed over the twelve months, resulting in a net increase of 81 locations[34] Cash and Assets - Cash and cash equivalents increased to $469.5 million from $170.5 million, primarily due to the issuance of Senior Notes and cash from operating activities[10] - Total current assets reached $1.1 billion as of September 30, 2025, a 54.5% increase from $729.0 million in 2024[22] - The company’s total equity grew to $1.03 billion as of September 30, 2025, up from $804.6 million in 2024, indicating a growth of 27.2%[22] - Consolidated gross profit for Q4 2025 was $198.6 million, up 13% year-over-year, with full year gross profit at $746.1 million, a 9% increase[40] Expenses and Liabilities - Store expenses increased 8% in the fourth quarter, primarily due to labor costs and new store openings[9] - Total liabilities increased to $925.7 million as of September 30, 2025, from $688.7 million in 2024, marking a rise of 34.4%[22] - Store expenses for the three months ended September 30, 2025, were $129.0 million, an increase from $119.0 million in the prior year[26] - General and administrative expenses for the same period were $23.4 million, compared to $20.7 million in the previous year[26] - The company incurred an interest expense of $8.1 million for the three months ended September 30, 2025[26] - Interest expense increased to $8.1 million from $3.2 million year-over-year, while interest income also rose to $(5.3) million from $(2.1) million[38] Pawn Loans and Service Charges - Pawn loans outstanding (PLO) increased 12% to $307.5 million in the fourth quarter, with a same-store basis increase of 10%[9] - The company reported a 20.5% increase in pawn service charges, totaling $125.97 million for the three months ended September 30, 2025, compared to $115.1 million in 2024[20] - Pawn service charges contributed $125.9 million, down from $140.0 million, indicating a decrease of 10.0%[26] - The company made loans totaling $1.01 billion during the twelve months ended September 30, 2025, compared to $937.0 million in 2024, reflecting an increase of 7.9%[24] Currency and Market Performance - The average exchange rate for the Mexican peso was 18.3 for the quarter, compared to 19.7 in the same quarter last year, indicating a strengthening of the peso[37] - The company provided non-GAAP financial information to enhance understanding of its operations, particularly in Latin America, where results are affected by currency fluctuations[35] - Constant currency consolidated revenues for Q4 2025 were $335.9 million, a 14% increase, and $1,304.3 million for the full year, a 12% increase[40] - Latin America Pawn segment gross profit for Q4 2025 was $54.0 million, a 19% increase, with full year gross profit at $195.4 million, an 8% increase[40] - Latin America Pawn merchandise sales for Q4 2025 were $59.3 million, a 17% increase, with full year sales at $225.7 million, a 10% increase[40]