# Ezcorp Inc: Form 10-Q for the period ended Jun 30, 2025

- Company: [Ezcorp Inc](/companies/ezpw.md) (CIK 876523)
- Form: 10-Q
- Filed: 2025-07-30
- Accepted by EDGAR: Jul 30, 2025, 16:25 ET
- Period: 2025-06-30
- Accession: 0000876523-25-000064
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/876523/000087652325000064/ezpw-20250630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/876523/000087652325000064/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $311.0m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months, 2024-10-01 to 2025-06-30 | $937.5m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Gross profit | 3 months, 2025-04-01 to 2025-06-30 | $183.6m | us-gaap:GrossProfit |
| Gross profit | 9 months, 2024-10-01 to 2025-06-30 | $547.5m | us-gaap:GrossProfit |
| Operating income | 3 months, 2025-04-01 to 2025-06-30 | $36.0m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2024-10-01 to 2025-06-30 | $112.2m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-04-01 to 2025-06-30 | $8.5m | us-gaap:InterestExpenseNonoperating |
| Interest expense | 9 months, 2024-10-01 to 2025-06-30 | $14.9m | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $8.2m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2024-10-01 to 2025-06-30 | $27.6m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $26.5m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2024-10-01 to 2025-06-30 | $82.9m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.34 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2024-10-01 to 2025-06-30 | $1.08 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $0.45 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2024-10-01 to 2025-06-30 | $1.47 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 82,918,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2024-10-01 to 2025-06-30 | 83,144,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2024-10-01 to 2025-06-30 | $97.7m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2024-10-01 to 2025-06-30 | $23.1m | us-gaap:PaymentsToAcquireProductiveAssets |
| Share repurchases | 3 months, 2025-04-01 to 2025-06-30 | $2.0m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Share repurchases | 9 months, 2024-10-01 to 2025-06-30 | $6.0m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-06-30 | $472.1m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-06-30 | $1.09bn | us-gaap:AssetsCurrent |
| Total assets | at 2025-06-30 | $1.88bn | us-gaap:Assets |
| Current liabilities | at 2025-06-30 | $172.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-06-30 | $893.0m | us-gaap:Liabilities |
| Long-term debt | at 2025-06-30 | $517.6m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-06-30 | $0 | us-gaap:LongTermDebtCurrent |

## Management's discussion and analysis

As filed, 37,685 characters.

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to inform the reader about matters affecting the financial condition and results of operations of EZCORP, Inc. and its subsidiaries (collectively, “we,” “us”, “our”, “EZCORP” or the “Company”). The following discussion should be read together with our condensed consolidated financial statements and related notes included elsewhere within this report. This discussion contains forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements. See “Part I, Item 1A — Risk Factors” of our Annual Report on Form 10-K for the year ended September 30, 2024, as supplemented by the information set forth in “Part I, Item 3 — Quantitative and Qualitative Disclosures about Market Risk” and “Part II, Item 1A — Risk Factors” of this Report, for a discussion of certain risks, uncertainties and assumptions associated with these statements.

### Business Developments

### 2025 Convertible Notes

During April 2025, holders converted approximately $97.0 million in principal amount of the 2025 Convertible Notes into approximately 6.1 million shares of our Class A common Stock, with payments of cash in lieu of any fractional shares. On May 1, 2025, the Company repaid the remaining principal balance, $6.4 million, with cash. See Note 8 of Notes to Condensed Consolidated Financial Statements included in "Part I, Item 1 — Financial Statements" of this Report for further discussion.

### Acquisition Agreement

On June 17, 2025, the Company closed the acquisition of 40 stores across 13 states in Mexico. The stores, operating under the names “Monte Providencia” and “Tu Empeño Efectivo” offer traditional pawn loans, as well as auto pawn transactions, some of which are in stand-alone auto pawn stores. With this acquisition, the Company also takes over the management of 7 additional Monte Providencia stores, which we plan to acquire in the coming months. See Note 2 of Notes to Condensed Consolidated Financial Statements included in "Part I, Item 1 — Financial Statements" of this Report for further discussion.

### Business Overview

EZCORP is a Delaware corporation headquartered in Austin, Texas. We are a leading provider of pawn services in the United States and Latin America. Pawn loans are nonrecourse loans collateralized by personal property. We also sell merchandise, primarily collateral forfeited from unpaid loans and pre-owned merchandise purchased from customers.

We exist to serve our customers’ short-term cash needs, helping them to live and enjoy their lives. We are focused on three strategic pillars:

|  |  |
| --- | --- |
| **Strengthen the Core** | **Relentless focus on superior execution and operational excellence in our pawn business** |
| **Cost Efficiency and Simplification** | **Shape a culture of cost efficiency through ongoing focus on simplification and optimization** |
| **Innovate and Grow** | **Broaden customer engagement to service more customers more frequently in more locations** |

### Pawn Activities

At our pawn stores, we advance cash against the value of collateralized tangible personal property. We earn pawn service charges (“PSC”) for those cash advances, and the PSC rate varies by state and transaction size. At the time of the transaction, we take possession of the pawned collateral, which consists of tangible personal property, generally jewelry, consumer electronics, tools, sporting goods and musical instruments. If the customer chooses to redeem their pawn, they will repay the amount advanced plus any accrued PSC. If the customer chooses not to redeem their pawn, the pawned collateral becomes our inventory, which we sell in our retail merchandise sales activities or, in some cases, scrap for its inherent gold or precious stone content. Consequently, the success of our pawn business is largely dependent on our ability to accurately assess the probability of pawn redemption and the estimated resale or scrap value of the collateralized personal property.

Our ability to offer quality pre-owned goods at prices significantly lower than original retail prices attracts value-conscious customers. The gross profit on sales of inventory depends primarily on our assessment of the estimated resale or scrap value at the time the property is either accepted as pawn collateral or purchased and our ability to sell that merchandise in a timely manner. As a significant portion of our inventory and sales involve gold and jewelry, our results can be influenced by the market price of gold and diamonds.

### Growth and Expansion

Our strategy is to expand the number of locations we operate through opening new (“de novo”) locations and through acquisitions and investments in both Latin America, the United States and potential new markets. Our ability to open de novo stores, acquire new stores and make other related investments is dependent on several variables, such as projected achievement of internal investment hurdles, the availability of acceptable sites or acquisition candidates, the alignment of acquirer/seller price expectations, the regulatory environment, local zoning ordinances, access to capital and the availability of qualified personnel.

### Seasonality and Quarterly Results

In the United States, PSC is historically highest in our fourth fiscal quarter (July through September) due to a higher average loan balance during the summer lending season. PSC is historically lowest in our third fiscal quarter (April through June) following the tax refund season and merchandise sales are highest in our first and second fiscal quarters (October through March) due to the holiday season, jewelry sales surrounding Valentine’s Day and the availability of tax refunds. In Latin America, most of our customers receive additional compensation from their employers in December, and many receive additional compensation in June or July, applying downward pressure on loan balances and fueling some merchandise sales in those periods.

### Financial Highlights

We remain focused on optimizing our balance of pawn loans outstanding (“PLO”) and the resulting higher PSC. The following chart presents sources of gross profit, including PSC, merchandise sales gross profit (“Merchandise sales GP”) and jewelry scrapping gross profit (“Jewelry Scrapping GP”) for the three and nine months ended June 30, 2025 and 2024:

The following chart presents sources of gross profit by geographic disbursement for the three and nine months ended June 30, 2025 and 2024:

### Results of Operations

### Non-GAAP Constant Currency and Same-Store Financial Information

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we provide certain other non-GAAP financial information on a constant currency basis (“constant currency”) and “same-store” basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We analyze results on a same-store basis (which is defined as stores open during the entirety of the comparable periods) to better understand existing store performance without the influence of increases or decreases resulting solely from changes in store count. We believe presentation of constant currency and same-store results is meaningful and useful in understanding the activities and business metrics of our Latin America Pawn operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a better understanding and evaluation of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information to evaluate and compare operating results across accounting periods. Readers should consider the information in addition to, but not rather than or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and are not directly calculable from the rates below. Constant currency results, where presented, also exclude the foreign currency gain or loss. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and nine months ended June 30, 2025 and 2024 were as follows:

|  | June 30, 2025 | 2024 | Three Months Ended June 30, 2025 | 2024 | Nine Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Mexican peso | 18.8 | 18.3 | 19.5 | 17.2 | 20.0 | 17.3 |
| Guatemalan quetzal | 7.6 | 7.6 | 7.6 | 7.6 | 7.6 | 7.6 |
| Honduran lempira | 25.8 | 24.3 | 25.7 | 24.3 | 25.2 | 24.3 |
| Australian dollar | 1.5 | 1.5 | 1.6 | 1.5 | 1.6 | 1.5 |

25

### Operating Results

### Segments

We manage our business and report our financial results in three reportable segments:

- U.S. Pawn — Represents all pawn activities in the United States;
- Latin America Pawn — Represents all pawn activities in Mexico and other parts of Latin America; and
- Other Investments — Represents our equity interest in Cash Converters and our investment in and notes receivable from Founders.

### Store Count by Segment

|  | Three Months Ended June 30, 2025 U.S. Pawn | Latin America Pawn | Consolidated |
| --- | ---: | ---: | ---: |
| As of March 31, 2025 | 542 | 742 | 1,284 |
| New locations opened | — | 10 | 10 |
| Locations acquired | 3 | 40 | 43 |
| Locations combined or closed | — | (1) | (1) |
| As of June 30, 2025 | 545 | 791 | 1,336 |

|  | Three Months Ended June 30, 2024 U.S. Pawn | Latin America Pawn | Consolidated |
| --- | ---: | ---: | ---: |
| As of March 31, 2024 | 535 | 711 | 1,246 |
| New locations opened | 1 | 6 | 7 |
| Locations acquired | 5 | — | 5 |
| As of June 30, 2024 | 541 | 717 | 1,258 |

|  | Nine Months Ended June 30, 2025 U.S. Pawn | Latin America Pawn | Consolidated |
| --- | ---: | ---: | ---: |
| As of September 30, 2024 | 542 | 737 | 1,279 |
| New locations opened | — | 23 | 23 |
| Locations acquired | 3 | 41 | 44 |
| Locations combined or closed | — | (10) | (10) |
| As of June 30, 2025 | 545 | 791 | 1,336 |

|  | Nine Months Ended June 30, 2024 U.S. Pawn | Latin America Pawn | Consolidated |
| --- | ---: | ---: | ---: |
| As of September 30, 2023 | 529 | 702 | 1,231 |
| New locations opened | 1 | 20 | 21 |
| Locations acquired | 12 | — | 12 |
| Locations combined or closed | (1) | (5) | (6) |
| As of June 30, 2024 | 541 | 717 | 1,258 |

26

### Three Months Ended June 30, 2025 vs. Three Months Ended June 30, 2024

These tables, as well as the discussion that follows, should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and related notes.

### U.S. Pawn

The following table presents selected summary financial data for our U.S. Pawn segment:

*(in thousands)*

| Gross profit: | Three Months Ended June 30, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: |
| Pawn service charges | $83,930 | $77,416 | 8% |
| Merchandise sales | 112,249 | 107,849 | 4% |
| Merchandise sales gross profit | 43,165 | 40,620 | 6% |
| Gross margin on merchandise sales | 38% | 38% | —bps |
| Jewelry scrapping sales | 23,750 | 13,757 | 73% |
| Jewelry scrapping sales gross profit | 6,936 | 1,870 | 271% |
| Gross margin on jewelry scrapping sales | 29% | 14% | 1,500bps |
| Other revenues | 31 | 28 | 11% |
| Gross profit | 134,062 | 119,934 | 12% |
| Segment operating expenses: |  |  |  |
| Store expenses | 83,778 | 81,441 | 3% |
| Depreciation and amortization | 2,651 | 2,408 | 10% |
| Gain on sale or disposal of assets and other | — | (2) | (100)% |
| Segment contribution | $47,633 | $36,087 | 32% |
| Other data: |  |  |  |
| Net earning assets (a) | $387,433 | $321,218 | 21% |
| Inventory turnover | 2.1 | 2.6 | (19)% |
| Average monthly ending pawn loan balance per store (b) | 389 | 352 | 11% |
| Monthly average yield on pawn loans outstanding | 13% | 14% | (100)bps |
| General merchandise as a % of PLO | 33% | 34% | (100)bps |
| Jewelry as a % of PLO | 67% | 66% | 100bps |

(a) Balance includes pawn loans and inventory.

(b) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

PLO ended the quarter at $221.1 million, an increase of 11% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.

Total revenues increased 11% and gross profit increased 12%, driven by increased PSC, merchandise sales and scrap sales.

PSC increased 8% as a result of higher average PLO, partially offset by lower PLO yield.

Merchandise sales increased 4%, on a total and same-store basis, and sales gross margin increased by 80 bps to 38%. Aged general merchandise, which is inventory over one year old, decreased by 260 basis points to 2.5%, or $1.2 million of total general merchandise inventory. Excluding our Max Pawn luxury stores, aged general merchandise was 1.8%.

Net inventory increased 36%, due to the increase in PLO, layaways and purchases and a decrease in inventory turnover to 2.1x, from 2.6x.

Store expenses increased 3% on a total and same-store basis.

Segment contribution increased 32% to $47.6 million.

Segment store count increased by 3 to 545, due to acquisitions, including one luxury store in Miami.

### Latin America Pawn

The following table presents selected summary financial data for the Latin America Pawn segment, including constant currency results, after translation to U.S. dollars from its functional currencies noted above under “Results of Operations — Non-GAAP Constant Currency and Same-Store Financial Information.”

*(in thousands)*

| Gross profit: | Three Months Ended June 30, 2025 (GAAP) | 2024 (GAAP) | Change (GAAP) | 2025 (Constant Currency) | Change (Constant Currency) |
| --- | ---: | ---: | ---: | ---: | ---: |
| Pawn service charges | $31,409 | $30,414 | 3% | $34,298 | 13% |
| Merchandise sales | 56,375 | 50,291 | 12% | 62,056 | 23% |
| Merchandise sales gross profit | 17,233 | 16,309 | 6% | 19,031 | 17% |
| Gross margin on merchandise sales | 31% | 32% | (100)bps | 31% | (100)bps |
| Jewelry scrapping sales | 3,220 | 1,638 | 97% | 3,540 | 116% |
| Jewelry scrapping sales gross profit | 918 | 42 | \* | 1,018 | \* |
| Gross margin on jewelry scrapping sales | 29% | 3% | 2,600bps | 29% | 2,600bps |
| Other revenues, net | 17 | 28 | (39)% | 20 | (29)% |
| Gross profit | 49,577 | 46,793 | 6% | 54,367 | 16% |
| Segment operating expenses: |  |  |  |  |  |
| Store expenses | 35,345 | 34,894 | 1% | 38,989 | 12% |
| Depreciation and amortization | 2,156 | 2,090 | 3% | 2,373 | 14% |
| Loss (gain) on sale or disposal of assets and other | — | 22 | (100)% | — | (100)% |
| Segment operating contribution | 12,076 | 9,787 | 23% | 13,005 | 33% |
| Other segment income | (368) | (554) | (34)% | (459) | (17)% |
| Segment contribution | $12,444 | $10,341 | 20% | $13,464 | 30% |
| Other data: |  |  |  |  |  |
| Net earning assets (a) | $129,690 | $112,439 | 15% | $132,586 | 18% |
| Inventory turnover | 3.0 | 3.1 | (3)% | 3.0 | (3)% |
| Average monthly ending pawn loan balance per store (b) | $88 | $90 | (2)% | $95 | 6% |
| Monthly average yield on pawn loans outstanding | 16% | 16% | —bps | 16% | —bps |
| General merchandise as a % of PLO | 60% | 65% | (500)bps | 40% | (2,500)bps |
| Jewelry as a % of PLO | 40% | 35% | 500bps | 60% | 2,500bps |

\* Represents a percentage computation that is not mathematically meaningful.

(a) Balance includes pawn loans and inventory.

(b) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

| Same-store data: | 2025 Change (GAAP) | 2025 Change (Constant Currency) |
| --- | ---: | ---: |
| PLO | 2% | 4% |
| PSC | —% | 10% |
| Merchandise Sales | 8% | 19% |
| Merchandise Sales Gross Profit | 3% | 13% |
| Store Expenses | (3)% | 7% |

28

PLO improved to $70.6 million, an increase of 13% (16% on constant currency basis). On a same-store basis, PLO increased 2% (4% increase on a constant currency basis). The difference is primarily driven by our recent acquisition.

Total revenues increased 11% (21% on constant currency basis), and gross profit increased 6% (16% on a constant currency basis), primarily due to increased merchandise sales and pawn service charges.

PSC increased to $31.4 million, an increase of 3% (13% on a constant currency basis) as a result of higher average PLO.

Merchandise sales increased 12% (23% on constant currency basis) and increased 8% on a same-store basis (19% increase on a constant currency basis). Merchandise sales gross margin decreased to 31% from 32%. Aged general merchandise increased to 2.2% from 0.9% of total general merchandise inventory.

Net inventory increased 18% (21% on a constant currency basis) due to an increase in PLO and decrease in inventory turnover to 3.0x, from 3.1x. On a same-store basis, net inventory increased by 10% (13% on a constant currency basis). The difference is driven primarily by our recent acquisition.

Store expenses increased 1% (12% increase on a constant currency basis) and decreased 3% on a same-store basis (7% increase on a constant currency basis). The constant currency increase was primarily due to increased labor, in line with store activity and minimum wage increases.

Segment contribution increased 20% to $12.4 million (30% on a constant currency basis)

Segment store count increased by 49 to 791, primarily due the acquisition of 40 stores, the addition of ten de novo stores, and the consolidation of one store.

### Other Investments

The following table presents selected financial data for our Other Investments segment after translation to U.S. dollars from its functional currency of primarily Australian dollars:

*(in thousands)*

| Gross profit: | Three Months Ended June 30, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: |
| Consumer loan fees, interest and other | $— | $— | —% |
| Gross profit | — | — | —% |
| Segment operating expenses: |  |  |  |
| Interest income | (604) | (605) | —% |
| Equity in net income of unconsolidated affiliates | (1,409) | (1,406) | —% |
| Segment operating contribution | 2,013 | 2,011 | —% |
| Other segment loss | — | 12 | (100)% |
| Segment contribution | $2,013 | $1,999 | 1% |

Segment contribution was $2.0 million, consistent with prior quarter, primarily due to the increase in our share of equity in net income of Cash Converters.

### Other Items

The following table reconciles our consolidated segment contribution discussed above to net income attributable to EZCORP, Inc., including items that affect our consolidated financial results but are not allocated among segments:

*(in thousands)*

|  | Three Months Ended June 30, 2025 | 2024 | Percentage Change |
| --- | ---: | ---: | ---: |
| Segment contribution | $62,090 | $48,427 | 28% |
| Corporate expenses (income): |  |  |  |
| General and administrative | 21,780 | 20,060 | 9% |
| Depreciation and amortization | 3,196 | 3,660 | (13)% |
| Other income | (1,262) | — | 100% |
| Interest expense | 8,387 | 3,539 | 137% |
| Interest income | (4,409) | (1,956) | 125% |
| Equity in net loss of unconsolidated affiliates | 209 | 143 | 46% |
| Other loss (income) | (524) | (19) | \* |
| Income before income taxes | 34,713 | 23,000 | 51% |
| Income tax expense | 8,210 | 5,050 | 63% |
| Net income | $26,503 | $17,950 | 48% |

\* Represents a percentage computation that is not mathematically meaningful.

Segment contribution increased $13.7 million or 28% over the prior year quarter, primarily due to improved operating results of the U.S. Pawn and Latin America Pawn segments.

General and administrative expense increased $1.7 million or 9%, primarily due to labor and a gain on a corporate lease termination in the prior year.

Income tax expense increased $3.2 million primarily due to an increase in income before taxes of $11.7 million.

Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate. These items include the net effect of state taxes, non-deductible items and the foreign rate differential. See our Annual Report on Form 10-K for the year ended September 30, 2024, Note 9: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items.

### Nine Months Ended June 30, 2025 vs. Nine Months Ended June 30, 2024

The tables below and discussion that follows should be read in conjunction with the accompanying condensed consolidated financial statements and related notes.

### U.S. Pawn

The following table presents selected summary financial data for the U.S. Pawn segment:

*(in thousands)*

| Gross profit: | Nine Months Ended June 30, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: |
| Pawn service charges | $259,354 | $236,499 | 10% |
| Merchandise sales | 357,964 | 348,211 | 3% |
| Merchandise sales gross profit | 132,552 | 129,475 | 2% |
| Gross margin on merchandise sales | 37% | 37% | —bps |
| Jewelry scrapping sales | 56,146 | 39,258 | 43% |
| Jewelry scrapping sales gross profit | 14,129 | 5,293 | 167% |
| Gross margin on jewelry scrapping sales | 25% | 13% | 1,200bps |
| Other revenues | 82 | 94 | (13)% |
| Gross profit | 406,117 | 371,361 | 9% |
| Segment operating expenses: |  |  |  |
| Store expenses | 250,399 | 239,536 | 5% |
| Depreciation and amortization | 8,050 | 7,548 | 7% |
| Loss (gain) on sale or disposal of assets and other | 17 | (6) | \* |
| Segment operating contribution | 147,651 | 124,283 | 19% |
| Other segment gain | (7) | — | 100% |
| Segment contribution | $147,658 | $124,283 | 19% |
| Other data: |  |  |  |
| Average monthly ending pawn loan balance per store (a) | $389 | $352 | 11% |
| Monthly average yield on pawn loans outstanding | 14% | 14% | —bps |

\* Represents a percentage computation that is not mathematically meaningful.

(a) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

During the nine months ended June 30, 2025, segment store count increased to 545.

Pawn service charges increased 10% as a result of higher average PLO, partially offset by lower PLO yield.

Merchandise sales increased 3%, and merchandise sale gross profit increased 2%.

Store expenses increased 5% (5% on a same-store basis), primarily due to increased labor, in line with store activity and minimum wage increases.

Segment contribution increased $23.4 million, or 19%, primarily due to the changes described above.

### Latin America Pawn

The following table presents selected summary financial data our Latin America Pawn segment, including constant currency results, after translation to U.S. dollars from functional currencies. See “Results of Operations — Non-GAAP Constant Currency and Same-Store Financial Information” above.

*(in thousands)*

| Gross profit: | Nine Months Ended June 30, 2025 (GAAP) | 2024 (GAAP) | Change (GAAP) | 2025 (Constant Currency) | Change (Constant Currency) |
| --- | ---: | ---: | ---: | ---: | ---: |
| Pawn service charges | $88,908 | $84,943 | 5% | $98,485 | 16% |
| Merchandise sales | 166,470 | 154,019 | 8% | 186,656 | 21% |
| Merchandise sales gross profit | 50,277 | 50,075 | —% | 56,509 | 13% |
| Gross margin on merchandise sales | 30% | 33% | (300)bps | 30% | (300)bps |
| Jewelry scrapping sales | 8,494 | 3,933 | 116% | 9,656 | 146% |
| Jewelry scrapping sales gross profit | 2,144 | 419 | 412% | 2,464 | 488% |
| Gross margin on jewelry scrapping sales | 25% | 11% | 1,400bps | 26% | 1,500bps |
| Other revenues, net | 49 | 59 | (17)% | 57 | (3)% |
| Gross profit | 141,378 | 135,496 | 4% | 157,515 | 16% |
| Segment operating expenses: |  |  |  |  |  |
| Store expenses | 101,702 | 101,936 | —% | 114,149 | 12% |
| Depreciation and amortization | 6,191 | 6,821 | (9)% | 6,937 | 2% |
| Loss (gain) on sale or disposal of assets and other | 8 | (240) | (103)% | — | (100)% |
| Segment operating contribution | 33,477 | 26,979 | 24% | 36,429 | 35% |
| Other segment income | (1,115) | (1,629) | (32)% | (1,215) | (25)% |
| Segment contribution | $34,592 | $28,608 | 21% | $37,644 | 32% |
| Other data: |  |  |  |  |  |
| Average monthly ending pawn loan balance per store (a) | $85 | $83 | 2% | $94 | 13% |
| Monthly average yield on pawn loans outstanding | 16% | 16% | —bps | 16% | —bps |

(a) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

| Same-store data: | 2025 Change (GAAP) | 2025 Change (Constant Currency) |
| --- | ---: | ---: |
| PLO | 2% | 4% |
| PSC | 3% | 14% |
| Merchandise Sales | 6% | 19% |
| Merchandise Sales Gross Profit | (1)% | 11% |
| Store Expenses | (2)% | 10% |

During the nine months ended June 30, 2025, net store count increased by 54 due to the acquisition of 41 stores, the opening of 23 de novo stores and the consolidation of ten stores.

PSC increased 5% to $88.9 million (16% to $98.5 million on a constant currency basis) as a result of higher average PLO.

Merchandise sales increased 8% (21% on a constant currency basis) and 6% on a same-store basis (19% on a constant currency basis). Merchandise sales gross margin decreased 300 bps to 30% from 33%.

Store expenses remained constant and decreased by 2% on a same-store basis (10% increase on a constant currency basis). The constant currency increase was primarily due to increased labor, in line with store activity and minimum wage increases.

Segment contribution increased $6.0 million, or 21% ($9.0 million, or 32%, on a constant currency basis), due to the changes noted above.

### Other Investments

The following table presents selected financial data for our Other Investments segment after translation to U.S. dollars from its functional currency of primarily Australian dollars:

*(in thousands)*

| Gross profit: | Nine Months Ended June 30, 2025 | 2024 | Change |
| --- | ---: | ---: | ---: |
| Consumer loan fees, interest and other | $— | $35 | (100)% |
| Gross profit | — | 35 | (100)% |
| Segment operating expenses: |  |  |  |
| Interest income | (1,803) | (1,811) | —% |
| Equity in net (income) loss of unconsolidated affiliates | (4,898) | (4,278) | 14% |
| Segment operating contribution | 6,701 | 6,124 | 9% |
| Other segment loss | — | 27 | (100)% |
| Segment contribution | $6,701 | $6,097 | 10% |

Segment income was $6.7 million, an increase of $0.6 million from the prior-year nine months ended June 30, 2024, primarily due to the increase in our share of equity in net income of Cash Converters.

### Other Items

The following table reconciles our consolidated segment contribution discussed above to net income attributable to EZCORP, Inc., including items that affect our consolidated financial results but are not allocated among segments:

*(in thousands)*

|  | Nine Months Ended June 30, 2025 | 2024 | Percentage Change |
| --- | ---: | ---: | ---: |
| Segment contribution | $188,951 | $158,988 | 19% |
| Corporate expenses (income): |  |  |  |
| General and administrative | 60,089 | 54,869 | 10% |
| Depreciation and amortization | 10,117 | 10,573 | (4)% |
| Gain on sale or disposal of assets | — | 97 | (100)% |
| Other income | (1,262) | (765) | 65% |
| Interest expense | 14,815 | 10,381 | 43% |
| Interest income | (6,639) | (5,243) | 27% |
| Equity in net loss of unconsolidated affiliates | 718 | 143 | 402% |
| Other loss (income) | 604 | (423) | (243)% |
| Income before income taxes | 110,509 | 89,356 | 24% |
| Income tax expense | 27,600 | 21,457 | 29% |
| Net income | $82,909 | $67,899 | 22% |

\* Represents a percentage computation that is not mathematically meaningful.

Segment contribution increased $30.0 million or 19% over the prior year nine months ended June 30, 2024, primarily due to improved operating results of the U.S. Pawn and Latin America Pawn segments above.

General and administrative expenses increased $5.2 million or 10%, primarily due to labor.

Income tax expense increased $6.1 million, primarily due to an increase in income before income taxes of $21.2 million for the nine months ended June 30, 2025 compared to the same prior year nine month period.

Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate. These items include the net effect of state taxes, non-deductible items and the foreign rate differential. See Annual Report on Form 10-K for the year ended September 30, 2024, Note 9: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items.

### Liquidity and Capital Resources

### Cash and Cash Equivalents

Our cash and cash equivalents balance was $472.1 million at June 30, 2025 compared to $170.5 million at September 30, 2024. At June 30, 2025, our cash and equivalents were held in cash depository accounts with major banks or invested in high quality, short-term liquid investments.

### Cash Flows

The table and discussion below presents a summary of the selected sources and uses of our cash:

*(in thousands)*

|  | Nine Months Ended June 30, 2025 | 2024 | Percentage Change |
| --- | ---: | ---: | --- |
| Net cash provided by operating activities | $97,730 | $70,264 | 39% |
| Net cash used in investing activities | (66,040) | (59,234) | 11% |
| Net cash provided by (used in) financing activities | 275,606 | (12,648) | \* |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (26) | (108) | \* |
| Net increase in cash, cash equivalents and restricted cash | $307,270 | $(1,726) | \* |

\* Represents a percentage computation that is not mathematically meaningful.

The $27.5 million increase in cash flows provided by operating activities year-over-year was primarily due to an increase in net income as well as changes in working capital primarily related to the timing of payments of accounts payable, prepaid expenses, customer layaway deposits, inventory and income taxes.

The $6.8 million increase in cash flows used in investing activities year-over-year was primarily due to a $29.1 million increase in net pawn lending outflows, partially offset by a $19.1 million increase in cash inflows from the sale of forfeited collateral and a $3.2 million decrease in net cash flows used related to investments, acquisitions and capital expenditures.

The $288.3 million increase in cash flows provided by financing activities was primarily related to the March 2025 financing of the 2032 Senior Notes, in which we issued $300.0 million principal amount (less issuance costs of $7.6 million) of 7.375% senior notes due 2032, partially offset by the repayment of $6.4 million of principal for the 2025 Convertible Notes.

The net effect of these changes was a $307.3 million increase in cash on hand during the current year to date period, resulting in a $487.1 million ending cash and restricted cash balance.

### Sources and Uses of Cash

On May 1, 2025, we repaid the remaining principal balance, approximately $6.4 million of the 2025 Convertible Notes.

In March 2025, we issued $300.0 million aggregate principal amount of the Company’s 7.375% senior notes due 2032, for which $300.0 million remains outstanding as of June 30, 2025. See Note 8 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements” of this Report for further discussion.

On May 3, 2022, our Board authorized the repurchase of up to $50 million of our Class A Common Stock over three years. As of June 30, 2025, we have repurchased 3,178,147 shares of our Class A Common Stock under the program for $30.0 million. This program expired on May 3, 2025. During the three months ended June 30, 2025, the Company used approximately $2.0 million of the net proceeds from the 2032 Senior Notes offering to repurchase for cash 148,921 shares of its Class A common stock in privately negotiated transactions. Such transactions were authorized separately from, and not considered a part of the Common Stock Repurchase Program. See Note 9 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.”

We anticipate that cash flows from operations and cash on hand will be adequate to fund ongoing operations, current debt service requirements, tax payments, any future stock repurchases, strategic investments, our contractual obligations, planned de novo store growth, capital expenditures and working capital requirements through the next twelve months. We continue to explore acquisition opportunities, both large and small, and may choose to pursue additional debt, equity or equity-linked financings in the future should the need arise. Depending on the level of acquisition activity and other factors, our ability to repay our longer-term debt obligations, including the convertible debt maturing in December 2029 and the 2032 Senior Notes maturing in April 2032, may require us to refinance these obligations through the issuance of new debt securities, equity securities, convertible securities or through new credit facilities.

### Contractual Obligations

In “Part II, Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended September 30, 2024, we reported that we had $673.5 million in total contractual obligations as of September 30, 2024. There have been no material changes to this total obligation since September 30, 2024, other than the 2032 Senior Notes financing as further discussed in Note 7: Debt of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.”

We are responsible for the maintenance, property taxes and insurance at most of our locations. In the fiscal year ended September 30, 2024, these collectively amounted to $17.7 million.

### Recently Adopted Accounting Policies and Recently Issued Accounting Pronouncements

See Note 1 of the Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements” of this Quarterly Report for recently issued accounting pronouncements including the expected dates of adoption and estimated effects, if any, on our consolidated financial statements.

### Cautionary Statement Regarding Risks and Uncertainties that May Affect Future Results

This Quarterly Report on Form 10-Q, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend that all forward-looking statements be subject to the safe harbors created by these laws. All statements, other than statements of historical facts, regarding our strategy, future operations, financial position, future revenues, projected costs, prospects, plans and objectives are forward-looking statements. These statements are often, but not always, made with words or phrases like “may,” “should,” “could,” “will,” “predict,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “projection” and similar expressions. Such statements are only predictions of the outcome and timing of future events based on our current expectations and currently available information and, accordingly, are subject to substantial risks, uncertainties and assumptions. Actual results could differ materially from those expressed in the forward-looking statements due to a number of risks and uncertainties, many of which are beyond our control. In addition, we cannot predict all of the risks and uncertainties that could cause our actual results to differ from those expressed in the forward-looking statements. Accordingly, you should not regard any forward-looking statements as a representation that the expected results will be achieved. Important risk factors that could cause results or events to differ from current expectations are identified and described in “Part I, Item 1A — Risk Factors” of our Annual Report on Form 10-K for the year ended September 30, 2024 and “Part II, Item 1A — Risk Factors” of this Report.

We specifically disclaim any responsibility to publicly update any information contained in a forward-looking statement except as required by law. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

## Market risk

As filed, 504 characters.

Market risks relating to our operations result primarily from changes in interest rates, gold values and foreign currency exchange rates, and are described in detail in “Part II, Item 7A — Quantitative and Qualitative Disclosures about Market Risk” of our Annual Report on Form 10-K for the year ended September 30, 2024. There have been no material changes in our reported market risks or risk management policies since the filing of our Annual Report on Form 10-K for the year ended September 30, 2024.

## Controls and procedures

As filed, 4,265 characters.

This report includes the certifications of our Chief Executive Officer and Chief Financial Officer required by Rule 13a-14 of the Securities Exchange Act of 1934 (the “Exchange Act”). See Exhibits 31.1 and 31.2. This Item 4 includes information concerning the controls and control evaluations referred to in those certifications.

### Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) are designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

Under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, our management evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2025. Our principal executive officer and principal financial officer have concluded that as of June 30, 2025, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms and that such information is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure.

The Company completed the acquisition of 40 pawn stores in Mexico on June 17, 2025 in a purchase business combination. As discussed in SEC staff guidance, a company may conclude it will exclude an acquired business from the assessment of internal control over financial reporting during the first year after completion of an acquisition. In light of the overlap between a company’s disclosure controls and procedures and its internal control over financial reporting, the evaluation of disclosure controls and procedures may also exclude an assessment of the disclosure controls and procedures of the acquired entity that are subsumed in internal control over financial reporting. In consideration of the SEC staff guidance, we excluded this acquisition from our assessment of the effectiveness of disclosure controls and procedures as of June 30, 2025. The total assets and total revenues excluded from our assessment represented less than 1% each of the Company’s consolidated total assets and consolidated total revenues, respectively, as of and for the three months ended June 30, 2025.

### Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

### Inherent Limitations on Internal Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls or our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with associated policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

## Risk factors

As filed, 1,162 characters.

Important risk factors that could affect our operations and financial performance, or that could cause results or events to differ from current expectations, are described in “Part I, Item 1A — Risk Factors” of our Annual Report on Form 10-K for the year ended September 30, 2024, as supplemented by the information set forth below.

### Our incurrence of debt in the form of the 2032 Senior Notes could have a material adverse effect on our financial condition and results of operations

In March 2025, we incurred debt in the aggregate principal amount of $300.0 million in the form of the 2032 Senior Notes. See Note 7 of Notes to Condensed Consolidated Financial Statements included in "Part I, Item 1 — Financial Statements" of this Report. The indebtedness could increase the cost of future financing or otherwise limit our ability to obtain financing, including the refinancing of existing debt. The application of cash flow to repayment of our indebtedness could restrict funds available for other uses, including working capital, growth, and other general corporate purposes, which could adversely affect our financial condition and results of operations.

Filed Jul 30, 2025.
Source: SEC EDGAR, the filing index for accession 0000876523-25-000064. Last ingested by Listed: Oct 24, 2026, 14:58 ET. No prices; not investment advice.