Financial Data and Key Metrics Changes - EZCORP achieved record revenue of $1.3 billion for fiscal 2025, up 12% year over year, with adjusted EBITDA of $191.2 million, up 26% [4] - EBITDA margin expanded to 14.7% from 13%, and net income surged 30% to $110.7 million [4][6] - Cash position increased to $469.5 million from $170.5 million in fiscal 2024, reflecting a $300 million senior notes offering [7] Business Line Data and Key Metrics Changes - Pawn loan (PLO) of $303.9 million increased 11%, with a same-store basis growth of 9%, driven by higher average loan sizes [12] - Merchandise sales of $176 million increased 9%, with same-store sales up 7%, and merchandise margin remained steady at 35% [12] - In the U.S. pawn segment, total revenues increased 13% to $238.9 million, with PLO growth of 9% on both total and same-store basis [13][14] Market Data and Key Metrics Changes - In Latin America, fourth quarter revenues were $96.9 million, up 17%, with PLO up 17% to $70.1 million [16] - Jewelry composition in PLO increased by 450 basis points to 41%, indicating a shift towards higher-value items [16] - The U.S. remains the largest market with 247 stores in Texas, followed by Florida with 95 stores [14] Company Strategy and Development Direction - The company is focused on expanding its store base and enhancing digital transformation to improve customer engagement [4][10] - Strategic initiatives include a targeted incentive compensation campaign and a robust loyalty program, with EZ Plus Rewards membership up 26% to 6.9 million members [9][10] - The M&A pipeline remains active, with multiple opportunities being evaluated for strategic integration and return on invested capital [20][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, stating that the company can adapt quickly to changes in gold prices [26][27] - The company anticipates continued robust revenue growth, particularly outside of scrap sales, despite potential economic pressures [44] - Management highlighted the importance of operational excellence and customer-centric initiatives in driving future growth [8][21] Other Important Information - The company has transformed its earnings profile significantly since fiscal 2021, with net income increasing from $21 million to $110 million [17] - Digital initiatives have led to a 42% year-over-year growth in online payments in the U.S., demonstrating strong customer adoption of digital platforms [10][63] - The company is committed to improving inventory efficiency and scaling operational best practices across all geographies [19] Q&A Session Summary Question: Concerns about gold prices and their impact on business - Management acknowledged that while rising gold prices are beneficial, the core business remains strong regardless of gold price fluctuations [26][27] Question: Future performance and growth potential in Latin America - Management indicated that there is still significant growth potential in Latin America, particularly in jewelry lending and digital adoption [30][33] Question: Insights on the M&A pipeline and future acquisitions - Management confirmed a robust M&A pipeline with a disciplined approach to acquisitions, focusing primarily on existing markets [35][36] Question: Impact of U.S. consumer behavior on store performance - Management noted strong demand for loan products, indicating that consumer pressure remains high, but specific impacts from external factors like government shutdowns are unclear [74] Question: Changes observed from digital initiatives - Management reported significant growth in online loan payments and customer engagement due to digital initiatives, enhancing store efficiency [62][64]

Core Insights - EZCORP, Inc. reported record revenue and pawn loans outstanding (PLO) for fiscal year 2025, driven by strong demand for cash solutions and secondhand goods [5][6] - The company achieved a 26% increase in adjusted EBITDA to $191.2 million and a 27% rise in adjusted diluted EPS to $1.43 [5][9] - The growth strategy included disciplined acquisitions and de novo store openings, resulting in a total of 1,360 stores across five countries [6][7] Fourth Quarter Highlights - Total revenues for Q4 increased by 14% to $336.8 million, with gross profit rising by 13% to $198.6 million [9][10] - Net income surged by 76% to $26.7 million, while diluted EPS increased by 62% to $0.34 [9][10] - Pawn loans outstanding reached $307.5 million, a 12% increase, reflecting higher average loan sizes and strong demand [12] Full Year 2025 Highlights - Full year total revenues rose by 10% to $1,274.3 million, with gross profit increasing by 9% to $746.1 million [9][10] - Net income for the year was $109.6 million, a 32% increase, with diluted EPS up 29% to $1.42 [9][10] - The company expanded its footprint by 81 stores, including 52 acquisitions and 40 de novo openings [9][10] Segment Results - In the U.S. pawn segment, PLO increased by 9% to $233.8 million, driven by higher average loan sizes and improved operational performance [11] - Latin America pawn segment saw PLO improve by 23% to $73.7 million, with total revenues up 11% on a constant currency basis [13] - Jewelry scrap sales in Q4 increased by 91%, contributing to a gross margin increase of 1,010 basis points to 29% [12] Financial Position - Cash and cash equivalents rose significantly to $469.5 million from $170.5 million, primarily due to a $300 million issuance of Senior Notes [12] - The company maintained a flexible balance sheet, focusing on high-return growth and opportunistic share repurchases [7][12] - Total assets increased to $1,951.2 million, up from $1,493.2 million year-over-year [22][23]

Core Points - EZCORP, Inc. will release its fourth quarter and full year fiscal 2025 results on November 13, 2025, after market close [1] - A conference call and webcast to discuss the results will take place on November 14, 2025, at 9:00 a.m. Eastern time [2][3] Company Overview - EZCORP, formed in 1989, is a leading provider of pawn transactions in the United States and Latin America, also selling pre-owned and recycled merchandise [4] - The company focuses on meeting the short-term cash needs of consumers who are cash and credit constrained, emphasizing an industry-leading customer experience [4]

Core Insights - FirstCash Holdings, Inc. reported record revenue and earnings for the three and nine months ended September 30, 2025, with a quarterly cash dividend of $0.42 per share and a new $150 million share repurchase plan announced [1][3]. Financial Performance - For the third quarter of 2025, revenue reached $935.6 million, a 12% increase from $837.3 million in the prior year [5][40]. - Net income for the third quarter was $82.8 million, up 28% from $64.8 million year-over-year, with diluted earnings per share increasing to $1.86 from $1.44 [5][8]. - Year-to-date revenue for the nine months ended September 30, 2025, was $2.6 billion, a 4% increase from $2.5 billion in 2024, with net income rising to $226.2 million from $175.3 million [7][40]. Segment Performance - The U.S. pawn segment saw same-store pawn receivables increase by 13%, while Latin America and the U.K. segments reported increases of 18% and 25%, respectively [2][14]. - The retail point-of-sale payment solutions segment, American First Finance (AFF), experienced strong earnings growth due to lower loss provisions and improved operating margins [2][31]. Growth and Expansion - The company completed the acquisition of H&T, the U.K.'s largest pawnbroker, adding 286 locations, and plans to open 20-25 new stores primarily in Latin America by January 2026 [3][13]. - FirstCash added a total of 332 pawn locations over the past twelve months, bringing the total to 3,311 locations across the U.S., Latin America, and the U.K. [13][32]. Cash Flow and Shareholder Returns - Operating cash flows for the twelve months ended September 30, 2025, grew 31% to $577 million, with adjusted free cash flows increasing 42% to $310 million [19][24]. - The company repurchased 230,000 shares for $30 million in the third quarter, totaling $90 million in repurchases year-to-date, and declared a quarterly dividend of $0.42 per share [20][33]. Outlook - The outlook for the remainder of 2025 is positive, with expected year-over-year growth in income driven by continued growth in earning asset balances and store additions [21][27]. - The company anticipates strong fourth-quarter performance, with expected revenues ranging from $85 to $90 million, driven by seasonal holiday shopping [28][30].

Core Viewpoint - FirstCash Holdings (FCFS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on a company's changing earnings picture, which is crucial for near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for FirstCash indicates a positive outlook for its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - FirstCash is expected to earn $8.03 per share for the fiscal year ending December 2025, with a 1.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of FirstCash to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1 - American families are planning to spend about 2% less on back-to-school shopping this year compared to last year, leading to increased visits to pawn shops for essential items [1] - Pawn shops offer a wide range of back-to-school supplies, including sneakers, laptops, instruments, and mini-fridges, often at prices significantly lower than large retail stores [1] - The rise in tariffs on imported clothing and footwear, with some reaching up to 30%, has contributed to higher prices for essential back-to-school items, with shoe prices increasing by 1.4% and clothing prices by 0.1% in July [1] Group 2 - EZPawn, a chain with 500 locations, reports that prices at pawn shops can be up to 50% cheaper than large retail stores, with a 4% increase in sales last quarter, particularly in categories like footwear and electronics [2] - Approximately 98% of items sold at pawn shops are second-hand, making them exempt from tariffs, which is an attractive feature for budget-conscious consumers [2] Group 3 - There has been a significant increase in the number of families pawning gold and jewelry to obtain extra cash for school supplies, indicating a growing financial strain on households [3] - The National Pawnbrokers Association notes that customers who can access loans may be heavily indebted, while many regular pawn shop customers struggle to obtain traditional credit [3] - The busy nature of pawn shops may signal worsening economic conditions, as many customers are facing severe financial difficulties [3]

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]

Core Viewpoint - FirstCash Holdings, Inc. has successfully completed the acquisition of H&T Group plc, marking its entry into the European market and enhancing its position as a global leader in the pawn industry with over 3,300 retail locations and annualized pro forma revenues nearing $4 billion [2][4]. Company Overview - FirstCash is a leading international operator of pawn stores, serving cash and credit-constrained consumers with more than 3,300 locations across the U.S., Latin America, and the U.K. [11]. - The company focuses on buying and selling a variety of merchandise and providing small non-recourse pawn loans secured by personal property [11]. Acquisition Details - The acquisition of H&T, the largest pawn store operator in the U.K. with 286 locations, was finalized on August 14, 2025, with H&T shareholders receiving 650 pence per share, totaling an equity value of £289 million (approximately $383 million) [8]. - FirstCash also assumed H&T's net debt of approximately £64 million (around $85 million) [8]. Financial Impact - H&T's stand-alone financial metrics for the full year 2025 are projected to include revenues between $315 million and $340 million, net income of $35 million to $38 million, and EBITDA of $60 million to $65 million [6]. - The expected earnings per share accretion for FirstCash from H&T for the remainder of 2025 is anticipated to be in the range of $0.20 to $0.25 per share [6][7]. Strategic Importance - The acquisition is expected to be immediately accretive to earnings, with strong pawn customer demand and double-digit pawn receivable growth reported by H&T in 2025 [5]. - The combination of FirstCash and H&T is seen as a platform for further international expansion, with H&T's market-leading position providing access to an attractive market [4][5].

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]

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]