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]

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]

Core Insights - EZCORP, Inc. reported strong financial performance for Q3 2025, achieving record revenues and significant growth in earnings, driven by high demand for pawn services and secondhand goods [3][6][4] Financial Performance - Total revenues increased by 11% to $311.0 million compared to $281.4 million in Q3 2024 [6][5] - Gross profit rose by 10% to $183.6 million, up from $166.7 million in the same period last year [6][5] - Net income surged by 48% to $26.5 million, compared to $18.0 million in Q3 2024 [6][5] - Adjusted EBITDA increased by 42% to $45.2 million [6][5] - Diluted earnings per share grew by 36% to $0.34, up from $0.25 in Q3 2024 [6][5] Operational Highlights - Pawn loans outstanding (PLO) increased by 11% to $291.6 million, reflecting strong demand and improved operational performance [6][7] - The company expanded its footprint by adding 52 stores, including 49 in Latin America and 3 in the U.S., with a focus on strategic growth [4][3] - In the U.S., segment contribution increased by 32%, while Latin America saw over 30% growth in contribution on a constant currency basis [4][3] Balance Sheet and Liquidity - The company reported $472 million in liquidity, enabling funding for accelerated growth and strategic acquisitions [5][4] - Cash and cash equivalents at the end of the quarter were $472.1 million, significantly up from $170.5 million as of September 30, 2024 [8][5] Segment Performance - U.S. Pawn revenues reached $219.96 million, while Latin America Pawn generated $91.02 million [20] - Merchandise sales in the U.S. increased by 4%, while Latin America saw a 12% rise in merchandise sales [8][20] - The gross margin for merchandise sales remained consistent at 36% [8][20]

Core Insights - EZCORP, Inc. reported strong financial performance for Q3 2025, achieving record revenue and significant growth in earnings, driven by high demand for cash solutions and secondhand goods [3][6][4]. Financial Performance - Total revenues increased by 11% to $311.0 million compared to $281.4 million in Q3 2024 [5][6]. - Gross profit rose by 10% to $183.6 million, up from $166.7 million in the same period last year [5][6]. - Net income surged by 48% to $26.5 million, compared to $18.0 million in Q3 2024 [6][5]. - Adjusted EBITDA increased by 42% to $45.2 million [6][5]. - Diluted earnings per share grew by 36% to $0.34, up from $0.25 in Q3 2024 [6][5]. Operational Highlights - Pawn loans outstanding (PLO) increased by 11% to $291.6 million, reflecting strong demand and improved operational performance [6][7]. - The company expanded its footprint by adding 52 stores, including 49 in Latin America and 3 in the U.S., with a luxury store in Miami Beach [4][3]. - In the U.S., segment contribution increased by 32%, while Latin America saw over 30% growth in contribution on a constant currency basis [4][3]. Strategic Outlook - The company has a strengthened balance sheet with $472 million in liquidity, positioning it well for accelerated growth through organic means and strategic acquisitions [5][4]. - The management remains focused on disciplined capital allocation and operational excellence to deliver long-term value for shareholders [5][4].