EZPW

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9 a.m. ET Chief Executive Officer - Lachlan Given Chief Financial Officer - Timothy Jugmans Investor Relations Adviser - Sean Mansouri Operator: Good morning, ladies and gentlemen. Welcome to the EZCORP Third Quarter Fiscal 2026 Earnings Call. [Operator Instructions] As a reminder, this call may be recorded. I'd now like to turn the conference over to Sean Mansouri, the company's Investor Relations Adviser with Elevate IR. Please go ahead, Sean. Sean Mansouri: Thank you, and good morning, everyone. During our prepared remarks, we will refer to slides, which are available for viewing or download from our website at investors.ezcorp.com. Before we begin, I'd like to remind everyone that this conference call as well as the presentation slides contain certain forward-looking statements regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations. Actual results for future periods may differ materially from those expressed due to a number of risks or other factors that are discussed in our annual, quarterly, and other reports filed with the Securities and Exchange Commission. As noted in our presentation materials and unless otherwise identified, results are presented on an adjusted basis to remove the effects of foreign currency fluctuations and other discrete items. Joining us on the call today are EZCORP's Chief Executive Officer, Lachie Given; and Tim Jugmans, Chief Financial Officer. Now I'll turn the call over to Lachie. Lachlan Given: Thank you, Sean, and good morning, everyone. EZCORP delivered another outstanding quarter, one of the strongest quarters in our history. Adjusted EBITDA was up 48% to $65.6 million, and adjusted diluted EPS was up 47% to $0.47. The key highlight for the quarter was the exceptionally strong core pawn operating metrics, which normalize out global scrap across all of the markets in which we operate. Core pawn revenues grew 24%, core pawn gross profit rose 28%, and same-store core pawn gross profit increased 13%. As anticipated, gold prices stabilized, and scrap sales and margin declined sequentially, while our earnings momentum and growth continued to build in a meaningful way for all of our shareholders. Core demand for our product remains strong across all of the markets in which we serve. PLO finished the quarter at a record $382 million, up 31%, driven by higher average loan sizes and the addition of new stores. More consumers are also choosing affordable, high-quality pre-owned goods, so sales and turns remain robust. Latin America was a standout again this quarter. In constant currency, PLO grew 33%. Core pawn gross profit rose 31%, and segment EBITDA increased 40%, with margins expanding on both the merchandise and EBITDA lines. We continue to grow our scale in this region during the quarter, extending our market leadership position in Guatemala, where we acquired 33 stores. We also opened 9 de novo stores across the region, which represents a very exciting element of our short- and long-term growth story as our de novos are consistently performing above expectations. We also reached an important milestone with SMG. During the quarter, we acquired the remaining interest in founders and increased our ownership of SMG to 97.4%. In July, shortly after quarter end, we purchased the remaining shares and now own 100% of SMG. Our view on SMG has strengthened as we see considerable opportunity in introducing EZ systems, operating disciplines, culture, and capital across the platform. I'll now hand it over to Tim to take you through the financials before returning for closing remarks. Tim? Timothy Jugmans: Thanks, Lachie. Turning to Slide 5 for the consolidated financial highlights. Adjusted EBITDA rose 48% to $65.6 million, and EBITDA margin expanded 190 basis points to 16%, driven by merchandise margin expansion, expense discipline, and higher scrap gross profit. Adjusted diluted EPS improved 47% to $0.47. Earnings grew well ahead of the revenue, demonstrating the operating leverage in our model. Total revenues grew 31% to $408.4 million on higher merchandise sales, PSC, and scrap, along with new stores, including SMG. Gross profit also increased 31% to $240.3 million. PLO ended the quarter at $382 million, up 31%. That PLO strength flowed through to PSC, which rose 29% to $149.1 million, with same-store PSC up 13%. On the retail side, merchandise sales grew 21% to $203.5 million, with same-store sales up 6%. Merchandise margin expanded 190 basis points to 38% on pricing execution and inventory quality. On Slide 6, we have provided the consolidated revenue and EBITDA bridges, which show the composition and quality of this quarter's growth. On revenues, SMG contributed $43.1 million in the second quarter of consolidation, and same-store core pawn revenues added $24.5 million. Scrap sales on a same-store basis added $15.9 million, and other new stores contributed $13.9 million. Same-store core pawn revenues grew 9%, and same-store core pawn gross profit grew 13%. As a reminder, core pawn excludes scrap entirely, giving the cleanest read on underlying business performance. The EBITDA bridge provides a clear view of earnings drivers. Same-store EBITDA, excluding scrap gross profit, contributed $12.9 million of the year-over-year increase, the largest single driver of the bridge. SMG added $6.6 million, and same-store scrap gross profit added $3.5 million. Core operations and new stores, not scrap, drove the majority of our earnings growth this quarter. Scrap sales of $55.7 million increased $28.8 million year-over-year on higher gold prices. Sequentially, scrap sales and margin declined from the second quarter's unusually elevated levels as gold stabilized, consistent with the outlook we provided on last quarter's call. Scrap gross margin was 26%, compared to 38% in the second quarter and 29% in the prior year quarter. Scrap gross profit of $14.5 million remained well above the $7.9 million we generated a year ago. Scrap remains a valuable contributor to earnings and cash. As a reminder, we lend against longer-term gold values, not daily price movements, and use scrap to manage inventory, not speculate on gold. Consolidated net inventory ended at $312.5 million, up 39%, reflecting higher PLO purchases and layaways. Turnover was 2.3x, compared with 2.4x a year ago, and aged general merchandise declined 132 basis points to 1.3% of total general merchandise inventory. Inventory growth was driven by jewelry, which is scrapped if it doesn't sell within approximately 12 months. Moving to the U.S. Pawn segment on Slide 7 and 8. We ended the quarter with 560 stores across 19 states, including 1 store acquired during the period. Total revenues increased 14% to $251.2 million, with more than half of the improvement attributed to core pawn. Core pawn revenue grew 9%, and core pawn gross profit grew 12%, supported by healthy pawn activity and further merchandise margin expansion. PLO grew 15% to $254.5 million, with same-store PLO up 13%, driven by increased average loan size and continued strong pawn demand. Average loan size rose 16% to $240 on higher jewelry composition and gold prices. Jewelry represents 69% of U.S. PLO. PSC increased 13%, primarily driven by same-store PLO growth. On the retail side, merchandise sales increased 6%, with same-store sales up 3%, and merchandise margin expanded 130 basis points to 40%. Inventory quality remains excellent. Inventory grew 28% to $212.2 million on higher PLO purchases and layaways, while turnover came in at 2x. Aged general merchandise declined to 1.9% of total general merchandise inventory or just $0.7 million. Segment EBITDA improved 23% to $64.5 million, and core pawn accounted for 83% of the gross profit growth. Store expenses rose 8% in total and 6% on a same-store basis, well below revenue growth, lifting EBITDA margin 200 basis points to 26%. This reflects the durable demand, disciplined lending, and operating execution in our U.S. stores. Turning to Latin America on Slide 9 and 10, where the team delivered another excellent quarter. We ended the period with 881 stores across 4 countries. During the quarter, we opened 9 de novo stores, including 5 in Mexico, 3 in Guatemala, and 1 in Honduras, and consolidated 1 location. In April, we also completed the acquisition of 33 stores in Guatemala, extending our leadership in that market. As a reminder, our Latin American results are presented on a constant currency basis, unless otherwise noted. Revenues reached a record $114.1 million, up 25%, with about half of the improvement from merchandise sales. Core pawn revenues grew 22%, and core pawn gross profit grew 31%. So the growth here is broad-based and high quality. PLO increased 33% to $93.7 million, with same-store PLO up 28% on sustained pawn demand and improved operational performance. On a GAAP reported basis, average loan size rose 28% to $112, or 18% in constant currency. Jewelry now represents 49% of PLO. PSC rose 26%, supported by same-store PLO growth and new stores. Merchandise sales climbed 20%, with same-store sales up 11%. Merchandise margin expanded 490 basis points to 36%, reflecting stronger pricing execution and product mix. Inventory finished at $71.4 million, up 21% on PLO growth, with turnover of 3.1x. Aged general merchandise remained below 1% of total general merchandise inventory. Segment EBITDA grew 40% to $25.4 million, with 95% of the gross profit growth driven by core pawn. Store expenses increased 27% in total and 17% on a same-store basis, primarily reflecting labor costs, including minimum wage increases. Gross profit growth more than offset those higher costs, and EBITDA margin expanded 240 basis points to 22%. Moving to SMG on Slide 11. As Lachie mentioned, SMG is now wholly owned, effective in the fourth quarter. Because we did not own SMG in the prior year period, results are presented on an absolute basis without year-over-year comparisons. SMG ended the quarter with 108 stores across 12 countries under the La Familia and CashWiz banners, including 1 de novo opened during the quarter in Puerto Rico. PLO at the end of the quarter was $33.8 million, and total revenues were $43.1 million, comprised of $17.1 million of merchandise sales, $14.3 million of PSC, and $11.7 million of jewelry scrap sales. Core pawn revenues were $31.4 million, and core pawn gross profit was $19.7 million out of a total gross profit of $22.4 million. From a balance sheet perspective, we remain highly liquid and conservatively positioned. We ended the quarter with $311 million in cash. Our first debt maturity is in December 2029, when our convertible notes of $230 million are due, followed by our $300 million senior notes in April 2032. The year-over-year decline in cash primarily reflects the retirement of SMG third-party debt of $134.2 million in cash deployed into acquisitions. During the quarter, under the $50 million repurchase program authorized by our Board in November 2025, we repurchased and retired approximately 132,000 shares of our Class A common stock with $4 million. We have used $8 million of the program to date. Our capital allocation priorities are unchanged: existing store PLO and other earning asset growth, de novos, disciplined M&A, and opportunistic returns to shareholders, all within a fiscally conservative balance sheet. Looking ahead, our operating priorities are consistent: grow PLO, improve inventory efficiency, build de novos, integrate our recent acquisitions, and manage expenses carefully. As discussed in the last few quarters, scrap margin is mostly driven by year-over-year change in gold price. As anticipated, consolidated scrap margin came down sequentially year-over-year to 26%. If gold price does not increase, we'd expect continued normalization towards long-term historical levels of scrap margin between 15% and 20%. On seasonality, a few reminders. For our fiscal fourth quarter, in Latin America, customers receive a midyear bonus payment in July, which typically drives higher redemptions and seasonal step-down in PLO, while the U.S. book usually continues to build. As seen over the recent quarters, PLO yield also compresses gradually as average loan sizes rise since larger loans carry lower monthly rates in states such as Texas. And as scrap normalizes, historical sequential bottom line patterns will be less useful. Core pawn revenue and core pawn gross profit remain the cleanest read on the underlying business. On expenses, we will continue to see sequential increase as we continue to grow existing stores, add de novos, and integrate acquisitions, including SMG. Our M&A pipeline remains active in both the U.S. and Latin America, focused primarily on markets we have trusted local management teams and deep operating knowledge. We continue to evaluate every opportunity against strategic fit, integration complexity, and return on invested capital. Now I'd like to turn it back to Lachie for closing remarks. Lachlan Given: Thanks, Tim. This was clearly an outstanding operating and financial quarter for our company. Most pleasingly, the results were driven mostly by our core pawn operating performance rather than by gold scrap activities. All regions are performing exceptionally well, and we are very excited about the opportunity for additional growth in SMG. We have a strong, liquid balance sheet, and no near-term debt maturities. The M&A pipeline remains robust, particularly in Latin America, and we're excited about the large-scale de novo opportunity in that region as well. Finally, a genuine thank you to our 9,700 team members for the passion and professionalism you deliver to our customers every day. I look forward to together closing out what has been an exceptionally strong fiscal year for our company and for our shareholders. With that, operator, we'll open the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Brian McNamara of Canaccord Genuity. Brian McNamara: I was hoping you guys could opine on gold prices. I hate to beat the dead horse here, but obviously, it's a concern we hear from investors that gold sits at $4,300 today versus $5,400 at the peak in January. How does that impact your day-to-day operations? And kind of if you can give some color on how you price loans and all that good stuff, I think it would be really helpful. Lachlan Given: Thanks, Brian. Tim, do you want to have a first crack at that? Timothy Jugmans: Sure. Thank you, Brian, for the question. On setting gold prices, we are looking at -- we look at gold prices on a rolling basis, say, look at like a 3-month rolling basis. So if gold spikes like it did in January and then comes back down, we are not changing what we do on a day-to-day basis. So we're looking at more medium-term gold prices to price loans. The biggest effect that we do see on the business is scrap. So what we saw in quarter 2 with the rise of the gold prices is that the scrap margin was significantly higher than normal. And this quarter, what we've seen is that gold price is coming down, and the change year-over-year in gold price is declining. And so now we've seen sequentially that gold price margin decrease, but also year-over-year that scrap margin decrease. And so what we would expect if gold prices remain pretty consistent, where, obviously, it's a little bit of a spike in the last few days, but it's been in that -- just over $4,000 to $4,300 for a number of months if we exclude the spike in January. And so we would expect scrap margins to come back down to normal levels. Lachlan Given: I think to add to that, Brian, as I know you know, we're in the business of satisfying a customer's need for cash. And as you can see from our loan growth, that demand has been pretty phenomenal on a very consistent basis. We're seeing extremely strong lending trends, which is the most important metric in our business is PLO growth. And you can see across the U.S. and Latin America, particularly, the demand for cash that we're seeing in our stores is exceptionally strong. So clearly, gold is the largest piece of collateral that our customers use. But I think when you're thinking about the future of this business, it is incredibly robust on a -- from a growth perspective because what we really do is satisfy a customer's need for cash. And the macro -- both the macro situation with high gas prices, interest rates, inflation, the cost of living, all of those macro indicators continue to be a challenge for our customer. And I think from a micro perspective is what we do in our own stores. We've still got a lot to do in our own performance to continue to improve these stores organically. So from both perspectives, I'm very excited about the growth potential of our business. And gold, I know you've gone specifically to gold, which a lot of people are doing, it's a good question. But I think what really underlines the quality of this business is our ability to service that need for cash. Brian McNamara: That's helpful. Just a follow-on to that. I've been of the view that -- and correct me if I'm wrong, a person comes in for a dollar amount, they need $200 to satisfy a short-term cash need, to your point, if gold drops 25% per se, so something they got 3 months ago, they get for $160 today for argument's sake. Do you -- would they then pull another item to kind of make up that $40? Or do you think there are some folks that just because gold prices are higher, they're getting a higher loan in excess of what the cash they need? I know that's a pretty loaded question there, but we... Lachlan Given: Yes. Look, are there certain customers that do the second one? Of course. They take more money because gold is up. But my own anecdotal view here is that, back to what I said, people have a demand for cash, whether it's to pay a medical bill, to fill up their car, that does not depend on the gold price. That is just a fundamental need for cash, and that's what we're there to service. So look, I know it's a loaded question, and I'm sure there are people who are taking more because the gold price is up. But fundamentally speaking, this customer needs cash, and that's what we're using all sorts of things, whether it's general merchandise, whether it's gold, whether it's jewelry, diamonds, to satisfy that need. Timothy Jugmans: We know that to satisfy the need for cash, customers are bringing in less grams than they used to, to satisfy the same amount of cash. And we know there is a group of customers that is not taking what we're offering. So there's definitely a whole group of customers that take just -- they're taking below what we're offering and not taking any higher. So it just -- what we would say is that it's -- the effect on the gold price is not -- it doesn't affect the average loan size, right? So if the average loan size was moving with the gold price, it would move very differently. And so I think that's an important part. The only part where the gold price has a big effect and trying to -- people maximize what they're getting is when they're selling their gold to us, that is where the gold price matters much more. And a lot of that gold that we're buying is stuff that is not really sellable in our stores, so like a broken necklace. And so we're scrapping that pretty quickly. So that's where the customer is trying to maximize. It's quite different when it's a loan product. Brian McNamara: Right. That's very helpful. I appreciate the detail there, guys. On the stuff where your execution matters, like, merchandise margin, I think it was the highest -- your highest U.S. merchandise margin since 2022, and I think some of that was stimulus kind of thing. So it looks like a really good result. Blended ex-SMG looks north of your targeted 35 to 38 range. Lachie, I know you guys have been working to get that margin up. Any color on what's driving the progress there? Lachlan Given: Tim, do you want to take a crack at margin? Timothy Jugmans: Yes. Margin, we still expect to be still on a consolidated basis going in that kind of range. It's definitely crept up, which is really nice to see. We've got better execution in the store, better at pricing, 2 things. And obviously, there's a little bit of gold and the change in gold price affecting that. But we're still very happy of where it is, but it will continue to move in that range. Brian McNamara: Great. And just if I could squeeze one last one on M&A. How is the pipeline looking today? How is the SMG integration going? And how does it come together in terms of getting that asset wholly owned? Lachlan Given: There's 3 more questions, Brian. There's no worries. You're good at this. So I want to start with SMG. So SMG -- well, it's been a huge couple of quarters, obviously, on the general M&A front. We've done SMG. We've done 33 stores in Guatemala. We've done a bunch in Mexico. We've done a few little ones in the U.S. So we've been incredibly active these last 2 quarters on execution. And so M&A for me now has 2 sort of heads. One head is integrating these businesses in a really strong, robust way. And the other side of it is we need to do more. So on the ones we've just done, I think SMG, we're very excited about. I think it's going to take a year to get them -- the big things we need to do is get them on to our point of sale. We need to get them onto Workday. So those 2 things are significant pieces of work and are going on as we speak. I think from an operational perspective, this was a business that was capital-constrained and is no longer capital-constrained. So we are going through a cultural change now where we don't need to rely on scrapping as much to create cash. We are now doing what EZCORP does, which is, is to manage inventory with scrap, but to really concentrate on having our jewelry cases full and making strong margins on selling our jewelry. So there's cultural change going on. So I would say this first year is all about getting on our system, getting onto Workday and some cultural change that we're incredibly excited. Once those things are done and they're on our system, we think this is -- we're probably feeling we're going to be ahead of our own expectations as to what this business can do. We're very happy with the leadership there. They've been very open, transparent, and we're working really well together. So I think SMG -- and to your question about how it came together, look, these deals, as I always say to the market, they take time. You've got to have a willing seller, a willing buyer, and you've got to have a price, and they just -- sometimes they just come together. And this is [Technical Difficulty]. Operator: [Operator Instructions] Our next question comes from the line of David Scharf of Citizens Capital Markets. David Scharf: Tell you what, I'm going to follow up and pile on the... Lachlan Given: Sorry, did you guys lose me then? I had a broker that called my line, sorry. So I was just ending. Sorry, let me just end that. So we're very happy on the SMG side. But in the pipeline, to Brian's last question, I think the pipeline, as Tim said in his remarks, remains very robust in Latin America, particularly. I think in the U.S., as I've said before, we're kind of in the smaller acquisition zone now you're going to see 1s and 2s. But I think Latin America is super interesting, big independent chains. And then on top of that, I think what I said in my remarks was that the de novos, they sort of get a little forgotten often because it's just sort of what we do every day, but I think it's a really strong growth platform for us that investors and analysts should remember. We've got great opportunity across Latin America for de novos as well. So I think it's -- those inorganic opportunities, Brian, are really exciting. Timothy Jugmans: David, do you want to go ahead with your question? David Scharf: Okay. Yes, I wasn't sure if I was live or not. Sure. Just real quickly, maybe just kind of framing the prior questions a little bit differently. When we think about the cash needs versus the collateral value debate on what a consumer is actually going to do when they walk through your door, maybe more directly, do you think PLO growth would be the same-store PLO growth with gold prices at last year's levels? Maybe that's a more direct way of just framing the question. Timothy Jugmans: What was -- if we do -- you mean literally this time last year? David Scharf: Well, just thinking about gold being up 20% or so [ year-over-year ]. Just trying to get a sense for, once again, this debate about your serving cash needs when somebody walks through the door, are they just going to ultimately act on what they need? Or are they going to assess the collateral value and the potential to borrow more [indiscernible]? Timothy Jugmans: We know our customers are very smart. They are, for the majority, only taking what they need because if you're taking a loan, why are you going to take more than you feel comfortable paying back if you want that item back? That would not make any sense, right? So if you're coming in with something that you want back, you're only going to take what you need and that you feel comfortable repaying. So it's a very important -- it's very different to selling your item, where you're trying to maximize margin. Now obviously, I'd have to really speculate on what customers would do. But from what we can see at the counter, that's how customers act. So we would say -- if we thought that it was always maximizing, we wouldn't have the amount of customers that don't take the maximum, and we would have a much -- the average loan size would increase much more based on the gold price. And so those 2 things tell you that this is not a -- this is a demand-led item, not a gold price-led increase in average loan size. David Scharf: Got it. No, that's very helpful. I mean, I think it helps investors sort of pull off. Timothy Jugmans: [Indiscernible]. David Scharf: Yes. Just one follow-up. In terms of the PLO growth in Mexico specifically, I know we're about a good 9, 10 months into this, I think, worker stoppage, the strike at the big Nacional Monte operation. Has there been any direct relationship between the work stoppages there and your foot traffic? Lachlan Given: I mean, I think there has to have been, right? I think, comparatively speaking, we haven't got a whole lot of stores that are very close to theirs, but I think there is certainly an element of the demand that was in those stores that come to other pawn shops across the country. Operator: Our next question comes from the line of John Hecht of Jefferies. John Hecht: Just first one is getting a little bit more on SMG. Just wondering, like, the characteristics of the stores and the metrics, like, store PLO size versus other geographies, inventory turns, the standard loan size and terms, is it consistent there? Or are there differences? And do you guys have objectives to, call it, change the metrics over time? Lachlan Given: Thanks for the question. Yes. So look, it's region by region. So the biggest 2 markets for SMG are Florida and Puerto Rico. Then there's a bunch of other countries across the Caribbean where it's much smaller. So I would say, generally speaking, the metrics -- the metrics we are certainly aiming for are similar to what we do. I think each market is different. In Puerto Rico, for example, it's similar to Mexico, where they have the auto business under the pawn regulation there. So those stores do particularly well. And then in Florida, it's very similar metrics to what we are certainly looking to do. I think, as I said earlier before, SMG was capital-constrained before we bought it. And so I think adding our capital, our operating disciplines, our culture, I think will bring that business much more into line with EZCORP's metrics. But as I said, it's going to take some time. But the great thing about this business is that across markets and across countries, the metrics are similar, the customer base is similar. Our teams are similar. So we can manage this business in quite a focused way. And so as I said earlier, I'm pretty excited about what SMG can do, particularly once it's on our system and once we've got this culture sort of rolled out. Timothy Jugmans: John, on Slide 11 in the investor deck, we do have some of those metrics that we go through. You'll see that average loan size for SMG is higher than in the U.S. And most of that is because of the Puerto Rico and the lending on the vehicles, which does push that average loan size up compared to the U.S. John Hecht: And the second question is the PLO, obviously, has been very strong, the growth in PLO. And that, obviously, translates into obviously strong revenue growth too. Is the mix of revenue in the U.S. and LatAm, is it consistent with what it was a year ago when it was like 30% less? Or are you observing any changes in the types of inventory as things expand? Timothy Jugmans: On the types of inventory, yes, we definitely -- in the last number of years, we've definitely seen jewelry continue to increase. And then from a general merchandise perspective, we've definitely seen the luxury and shoes continue to increase in the stores. And things like TVs and other large electronics, they are declining. And so it's all mix-based on what the customer is after and what the customer has to bring in. It also can be quite different neighborhood to neighborhood. Lachlan Given: I'd say, John, the biggest change we've seen in inventory is in Latin America. I think you'll see in the materials that we are now 50% of our PLO is jewelry. And historically, we were known as the GM lender. And I think the last 2 years, our training, led by Blair, and a really strong leadership across Latin America has done a phenomenal job in us becoming a very strong jewelry lender too. And I can't remember what the percentage was 3 years ago, but I'd take a guess it was 30% or 35% jewelry, which is now 50%. So I think that Latin American piece is a big part of the growth story there. And then as Tim said, we've got -- luxury is growing, sneakers are growing, laptops are down. So there's definitely elements of different inventory, but I wouldn't say it's anywhere near as big as the jewelry story. Operator: Our next question comes from the line of Kyle Joseph of Stephens. Kyle Joseph: Since we asked about gold enough, I guess we'll talk about gas prices, obviously been pretty volatile. But in the U.S. specifically, how much of an impact are you seeing these days from fluctuations in gas prices? Lachlan Given: Thanks, Kyle. Look, we don't have the number. Obviously, this is anecdotal. But clearly, that puts pressure on this customer, and I think the volatility increases the demand for cash. I can't give you a specific number, but it definitely impacts what our customers are doing. Kyle Joseph: Got it. And then, yes, on SMG, apologies if I missed this, but I think you're at 108 stores. Just within those markets, do you have a sense for how many stores that could eventually be? Obviously, I guess, some overlap. Lachlan Given: Yes. It's an interesting question, given the overlap. So what we're doing at the moment is focusing on leadership, how we're going to run this business, is it integrated? Is it -- who's running what? I think the focus is to get on to the right -- onto our system. So I think that is step 1. And then we're going to assess which of these markets, Puerto Rico looks to be a very attractive market. There's markets in the Caribbean. So I think we're sort of in the process now of assessing that. But given it's 100% owned, that will just be part of our de novo program going forward. Kyle Joseph: Got it. And then last one for me. On the Latin American PLO growth, obviously, really strong. What's driving that? How sustainable is it? Is it just a function of higher inflation down there? Or is it kind of influenced by inventory mix as well? Lachlan Given: I think I want to give that team the credit they deserve. It's just -- it's been phenomenal execution down there. I think jewelry -- the jewelry mix has been a big part of it, just teaching our teams to be much better lenders on jewelry. As I said before, people would come in with phones and electronics and tools. That was what we were known for. And we just had this very deliberate execution program for the last few years, where jewelry has become a much better part of what we do. And so I think that's been really helpful on the PLO side. I think the macro, absolutely, things are tough for our customers out there. So it's -- the macro has been supportive, but I think the Latin American story is much more about what we've done from an execution and leadership perspective than what the macro is doing. Operator: Our next question comes from the line of Vincent Caintic of BTIG. Vincent Caintic: Got 2 quick follow-ups. So first, Tim, it was helpful you provided kind of a lot of commentary in terms of how to think about seasonality. I think there are seasonal components of LatAm and maybe the U.S. is okay. And then there's also kind of what's happening with jewelry scrap. If you kind of put it all together on a consolidated basis, if you could help us think about should we be thinking about EBITDA or EPS kind of slowing down on a quarter-over-quarter basis? Because underlying, like, it does seem U.S. and LatAm are doing really strong. So I just want to understand just from a near-term perspective, how all of those things shake out. Timothy Jugmans: Thank you. Yes. The biggest -- obviously, we don't provide guidance on those numbers. But as we've said, you can see that scrap gross profit had a big effect on quarter 2 and less of effect on quarter 3 from a growth perspective. But what we did say on the core is that scrap margin is, assuming gold price stays relatively stable, it will start coming down to that 15% to 20% range that we've had in -- while gold was stable. And so that normalization will mean that there is less growth year-over-year when you're including scrap. But obviously, excluding scrap is probably a better way to look at the underlying long-term performance of the business. Lachlan Given: I think that's -- Vince, thanks for the question. I think that's the key thing that we are trying as a team to show the market and you guys, the analysts, sees it. We don't get credit anyway for scrapping in the market. So I think this business should be looked at on a core basis. And when you look at the core business, as Tim has done a really good job of outlining in the deck, this is growing really strongly. Lending is strong, sales are strong, margins improving. We're doing M&A in multiple markets. We're building a lot of new stores. We've got a very liquid balance sheet. And scrapping -- look, scrapping goes up and down by the quarter. We don't get credit for it, which is okay, but from a multiple and an earnings perspective, but it shows what the business can really do and it provides great cash flow, so we can redeploy that into either paying down debt or building de novos or doing M&A. So I think when you look at it, including scrap, which I don't think many people do, yes, the earnings come down because of scrap. But I think what's best to speak about and to look at to assess the real value of this business and the platform is the core operating metrics that we're putting out, and they're very, very strong. Vincent Caintic: Okay. Great. That's super helpful. And I guess to follow up on that. Of course, we've been getting a lot of questions and a lot of discussion already on gold prices. I guess my understanding is your underwriting of the business, the way you deal with jewelry or any inventory as you're pricing the business, at a discount, you're evaluating the customers' propensity to pay back or if you have to put the item on retail. And so it seems like the greatest maybe focus is just if the aged inventory number goes up or down. And it sounds like I mean, that number has been doing really well. So regardless of where gold or inflation or other prices go, as long as you're able to turn over the inventory quickly [indiscernible]? Lachlan Given: That's absolutely, sort of the age-old pawnbroker's objective, right? We've got to be really strong at the lending counter, but then you've got to make sure you're turning that inventory. So look, aged, I never like to lead with aged because it leads to poor operating practice. But because it's very, very small dollars. Our aged inventory, it's less than $5 million. You could write it off today and have very little impact. But you're right, turns are very important to this business. And so from an operating perspective, we are improving incentives and improving training, and just to make sure that, that remains robust. You can also impact turns pretty easily by scrapping. So just someone who's not as experienced at looking at these numbers, look, turns are flat, you could easily increase your turns by scrapping. We don't want to do that. We want to make sure that our jewelry cases are full, that customers get a great experience, and we can sell the jewelry at a high margin. But yes, turn is absolutely very critical part of the story. Timothy Jugmans: On the numbers there, like AGM in the U.S. at 1.9% is $0.7 million of inventory. But we're not -- these dollars are not big. So just keep in mind the size. And obviously, jewelry is different because it can easily be scrapped. And so aged general merchandise is the only thing you really need to be worrying about. Vincent Caintic: Right. So we're not really taking a view of what gold prices were a year ago because that inventory would already pretty much be gone at this point, if I'm thinking about that correctly? Timothy Jugmans: Correct. It's generally -- the jewelry is generally scrapped at around that 12-month mark. That's correct. Operator: Our next question comes from the line of Eric Wold of Texas Capital Securities. Eric Wold: A couple of follow-ups on some of the topics before, I'll stay off gold prices. But there was a question, kind of, around gas prices and, kind of, what you're seeing. You made the comment that the increase in average loan size really being driven by demand and the need for, kind of, additional liquidity and short-term cash needs. Maybe diving into that a little bit better, kind of, what are you seeing for the consumers on kind of a more micro level in terms of coming in and seeking loans in terms of repeat visitation trends where you can track from those consumers, payoff, forfeiture? Anything that kind of gives maybe kind of a roundabout view of consumer health in this environment right now versus maybe a few quarters ago? Lachlan Given: Yes. Thank you for the question. Look, I think you start with PLO growth, right? You can just see it is very strong, which means demand for our core loan products is increasing significantly. So I think our customer is under pressure, and there is a need for cash. It's across all vertical -- sorry, all -- everything from GM to jewelry. And in terms of forfeitures, I think over a pretty long period of time, that's been pretty stable. We don't really see big changes in our forfeitures. As Tim mentioned earlier, we're seeing increased activity in customers selling us gold. But I think the metrics around forfeitures, to your question, has remained pretty stable. I think, then you look at sales, and you take a different view is they're also robust. And particularly in Latin America, we're seeing super strong sales growth. So when you think about the customer being under pressure, then you look at the sales and you say, well, that looks quite strong. So I think it's a mixed bag, but the good news for us is that both sides of our business, and as I said earlier again, it is a mix of some macro tailwind, but I think much more importantly is what we're doing at the team level. We're just getting much, much better at lending. We're better at pricing inventory. We're better at using digital initiatives, marketing, AI around the core of what we do to help satisfy this growing need for cash from our customers. Timothy Jugmans: I think the important thing there is that we're lending at 40% to 65% of what we think the value is, but we're assessing that on a regular basis. And so if we see, say, for example, which we've seen with laptops, is no one wants to buy a laptop anymore and those prices continue to decrease, we're going to be lending on the low end of those loan-to-values because we're going to make sure that we can sell it. And so the forfeitures are really in line with our pricing, and that's why they became pretty consistent through all economic cycles. Eric Wold: Got it. And then just a follow-up question on the acquisition pipeline. There's a question, obviously, about SMG and that, kind of, just coming together timing-wise to go to 100%. What are you kind of seeing in the current pipeline, maybe what's been completed and what's in discussion in terms of length of discussion cycles, receptivity of sellers' valuations? And what are you seeing in that versus kind of what you expect at this point in the cycle? Lachlan Given: Look, I think it's funny in this industry. The truth of the matter is that these things have a very long cycle with M&A. I could tell you, I've been close to acquisitions for 10 years and then others for 3 months; they just want to get going. So it's -- that one is truly is a mixed bag, just the length of time it gets -- it takes to do these sorts of transactions. You've got to remember, it's not really private equity that we're dealing with or institutional investors we're dealing with. These are usually family-owned businesses and the personalities and generational change and that kind of stuff. But there's no real difference in -- I've been doing this a long time now on the M&A side. And I think it's -- there's no real change in how that works. From a multiple perspective, I think they're pretty consistent. Where you've got to be careful is what scrapping has done. So look, I think that the pipeline itself, particularly in Latin America, is super strong. You've got very large independent chains down there. So we're pretty excited about that pipeline. And as I said earlier, the U.S., I think the U.S. is much more now a small kind of conveyor belt almost for want of a better word of just doing smaller acquisitions and targeted around the markets in which we've got really strong teams. Operator: Thank you. This concludes the question-and-answer session. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in Ezcorp, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ezcorp wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. EZCORP (EZPW) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in EZCORP, Inc.? Here are five stocks we like better. Record quarterly performance drove EZCORP’s growth, with adjusted EBITDA up 48% and adjusted EPS up 47%. The company is increasing its store-opening pace to about 40 annually and may accelerate expansion further next year. The acquisition of SMG’s 108 stores across 12 countries expands EZCORP’s international footprint. Management expects operational and capital-allocation benefits as the business is integrated onto EZCORP’s systems, with more gains potentially visible by next year. Latin America, especially Mexico, remains a major M&A opportunity, while consumer demand for pawn services is expected to stay supportive over the next 12–24 months. Luxury goods and sneakers are strong merchandise categories, whereas laptops have weakened. EZCORP (NASDAQ:EZPW) Chief Financial Officer Tim Jugmans said the pawn retailer’s latest quarterly results reflected both favorable consumer conditions and operational improvements, including store expansion, pricing discipline and acquisitions. Speaking at Canaccord’s 46th Annual Growth Conference, Jugmans said the company reported a record quarter, with adjusted EBITDA rising 48% and adjusted earnings per share increasing 47%. He said EZCORP is building roughly 40 stores annually, up from about 30 previously, and indicated the company could expand its new-store development further next year. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Jugmans attributed growth partly to the broader “K-shaped economy,” but said management initiatives have also contributed. Those efforts include improved pricing, stronger execution at newly opened locations and disciplined merger-and-acquisition activity. Jugmans said EZCORP serves customers across income levels, rather than only low-income, unbanked or underbanked consumers. He described pawn loans as a fast option for customers facing short-term cash needs, requiring an identification card and an item of value rather than credit checks or conventional collections processes. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand On the merchandise side, he said luxury goods and sneakers have been among the company’s fastest-growing categories, while laptops have declined in value and demand. EZCORP adjusts its lending practices based on the resale outlook for particular merchandise, he said. “On a luxury handbag, we’re lending it slightly higher because we know there are consumers out there that want to buy them,” Jugmans said. “We lend a little bit more aggressively on the items that we know are hot commodities that we can easily sell in our stores.” → On Holding's Price Stumble May Be an Opening for a Company Built to Run Jugmans characterized regulation in EZCORP’s markets as stable and said licensing requirements can create barriers to entry. He pointed to Texas and Las Vegas as markets where licenses can be difficult to obtain, supporting established operators. He also said compliance costs can be more manageable for larger operators than for smaller chains. In Illinois, Jugmans said the state introduced pawn-specific provisions when establishing consumer lending caps, including a sliding-scale approach intended to reduce rates on larger loans. He said the changes had little impact on EZCORP because its average loan size is about $200 to $250. Addressing gold-price volatility, Jugmans said EZCORP does not reprice gold loans daily. Instead, the company takes a longer-term view, potentially adjusting lending standards about every three months. He said higher gold prices do not necessarily translate directly into higher average loan sizes because customers typically seek a specific amount of cash and can pledge fewer grams of gold when prices rise. Jugmans rejected the notion that EZCORP may be approaching peak earnings. He said U.S. same-store pawn-loan-outstanding growth was 13%, while same-store core pawn gross profit, excluding scrap, also rose 13%. He said the company expects consumer conditions to remain supportive of demand for pawn services over the next 12 to 24 months. Higher pawn-loan-outstanding growth and average loan-size growth suggest consumers are “hurting a little bit more” than they were a year earlier, he said. The company recently acquired SMG, a 108-store business operating across 12 countries. Jugmans said roughly 60 of the acquired stores are in Florida and Puerto Rico, with the remaining locations including Caribbean markets, Panama, Costa Rica and the Dominican Republic. EZCORP is integrating SMG onto its point-of-sale, finance and human-resources systems. Jugmans said the process will take time, but management sees opportunities to deploy more capital into lending, improve merchandise operations, reduce scrap activity and revise incentives. He said more of those benefits could become evident by this time next year, once the business is fully integrated. Jugmans said the U.S. acquisition strategy will likely focus on smaller operators because many larger pawn businesses have already been acquired by EZCORP or its larger public competitor. The U.S. industry remains populated by “mom and pops” operating one or two stores, he said. Latin America, particularly Mexico, offers more sizable acquisition candidates, according to Jugmans. He said the company is opening more than 40 stores annually and sees an active pipeline of chains with more than 50 stores. EZCORP has also applied in Latin America the operating approach it used to improve its U.S. business, including a focus on inventory turnover, reducing aged general merchandise and aligning employee incentives. Jugmans said Latin America is now about 12 to 18 months behind the U.S. in the implementation of that strategy, compared with an estimated two to three years behind previously. He also noted that jewelry rose to 50% of the Latin American portfolio from 40% a year earlier. EZCORP, Inc is a specialty consumer finance company that provides pawn loans and retail merchandise programs primarily through its EZPAWN and Cash Converters brands. The company offers collateral-based loans secured principally by jewelry, electronics, musical instruments and other personal items, alongside check-cashing, money-transfer and bill-payment services. In addition to its pawn lending operations, EZCORP acquires previously pawned or consumer merchandise for resale through its “Sell-It-Now” platform and retail storefronts. Founded in 1989 and headquartered in San Antonio, Texas, EZCORP operates in two principal geographic markets: the United States and Mexico. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "EZCORP Eyes Faster Expansion After Record Quarter, SMG Deal" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

EZCORP, Inc. EZPW used its fiscal third-quarter 2026 earnings call to emphasize that core pawn activity, rather than elevated gold scrap economics, drove most of the quarter’s earnings growth. Management pointed to record lending, stronger merchandise margins and broad-based momentum across geographies. The earnings call also focused on Latin America expansion, the full acquisition of SMG and a still-active M&A pipeline as EZCORP enters the fiscal fourth quarter. Chief executive officer Lachie Given said that core pawn revenues increased 24%, core pawn gross profit rose 28% and same-store core pawn gross profit increased 13%. Chief financial officer Tim Jugmans said that adjusted EBITDA rose 48% to $65.6 million, while adjusted earnings per share (EPS) increased 47% to $0.47. He said same-store EBITDA, excluding scrap, was the largest contributor to year-over-year EBITDA growth. Adjusted EPS of $0.47 surpassed the Zacks Consensus Estimate of $0.39. The company reported revenues of $418.7 million, which topped the consensus estimate of $405 million. EZCORP, Inc. price-consensus-eps-surprise-chart | EZCORP, Inc. Quote Given called Latin America a standout, citing strong lending and operating execution. On a constant-currency basis, pawn loans outstanding (PLO) increased 33%, core pawn gross profit rose 31%, and segment EBITDA advanced 40%. Jugmans said that Latin America merchandise margin expanded 490 basis points to 36%, while same-store merchandise sales increased 11%. Jewelry now represents 49% of PLO in the region. A Stephens analyst asked what was behind the PLO growth. Given attributed much of the improvement to better jewelry lending, training and leadership, while also acknowledging supportive customer demand conditions. Management repeatedly separated underlying pawn demand from movements in gold prices. Jugmans said that EZCORP uses a rolling view of gold prices when setting loans rather than reacting to daily spikes. In Q&A, a Canaccord Genuity analyst pressed management on whether higher gold values were inflating loan sizes. Jugmans said that many customers borrow only what they need and often take less than the maximum offered. Management said that gold has a much larger effect on scrap economics. Jugmans expects scrap margin to normalize toward its historical 15% to 20% range if gold prices remain relatively stable. Given said that EZCORP now owns 100% of SMG after buying the remaining shares shortly after quarter-end. SMG ended the quarter with 108 stores across 12 countries. Jugmans reported SMG PLO of $33.8 million and quarterly revenues of $43.1 million. Core pawn revenues totaled $31.4 million, while core pawn gross profit was $19.7 million. A Canaccord Genuity analyst asked about integration. Given said that the first year will focus on moving SMG onto EZCORP’s point-of-sale and Workday systems, supplying more capital and aligning operating practices and culture. Given said that the acquisition pipeline remains particularly robust in Latin America, where larger independent pawn chains remain potential targets. In the United States, management expects smaller, targeted acquisitions. EZCORP also added 33 stores in Guatemala and opened nine de novo stores across Latin America during the quarter. He said that the new stores have been performing above expectations. Jugmans reiterated capital allocation priorities around PLO growth, de novos, disciplined M&A and opportunistic shareholder returns while maintaining a conservative balance sheet. Management’s fiscal fourth-quarter priorities remain growing PLO, improving inventory efficiency, integrating recent acquisitions, building new stores and controlling expenses. Jugmans also flagged a seasonal PLO step-down in Latin America tied to July bonus payments and further scrap-margin normalization, while Given kept the emphasis on core pawn trends as the cleaner measure of underlying performance. EZPW currently carries a Zacks Rank #3 (Hold). Its Value Score is A, Growth Score is B, Momentum Score is C and VGM Score is A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The strong Value and VGM grades and solid Growth grade are favorable Style Score signals, while the Momentum grade is more moderate. In the Zacks framework, a Rank #3 is less favorable than a #1 or #2, and the Rank can change as earnings estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EZCORP, Inc. (EZPW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA surged 48% to $65.6 million, with adjusted diluted EPS up 47% to $0.47, marking one of the strongest quarters in company history. Core pawn operating metrics were exceptionally strong, with core pawn revenues up 24% and core pawn gross profit up 28%, demonstrating robust underlying business performance. PLO reached a record $382 million, up 31%, driven by higher average loan sizes and new store additions, indicating strong consumer demand for cash. Latin America delivered standout results with PLO up 33%, core pawn gross profit up 31%, and segment EBITDA up 40%, driven by strong execution and market leadership expansion. The company successfully acquired the remaining interest in SMG, now owning 100%, and completed the acquisition of 33 stores in Guatemala, expanding its market presence. Merchandise margins expanded significantly, with US margins up 130 basis points to 40% and Latin America margins up 490 basis points to 36%, reflecting improved pricing and inventory quality. Scrap sales and margins declined sequentially as gold prices stabilized, with scrap gross margin falling to 26% from 38% in the prior quarter, and further normalization towards 15-20% is expected. Consolidated scrap margin is expected to continue normalizing to long-term historical levels if gold prices do not increase, which could reduce future earnings growth. Store expenses in Latin America increased 27% in total and 17% on a same-store basis, primarily due to labor costs and minimum wage increases, pressuring margins. Cash declined year-over-year due to the retirement of SMG's third-party debt of $134.2 million and cash deployed into acquisitions, reducing liquidity. The company faces integration risks with SMG, including the need to migrate to new systems (point of sale and Workday) and implement cultural changes, which could take up to a year. PLO yield is compressing gradually as average loan sizes rise, since larger loans carry lower monthly rates in states such as Texas, potentially impacting future revenue growth. Warning! GuruFocus has detected 3 Warning Sign with BRLT. Is EZPW fairly valued? Test your thesis with our free DCF calculator. Q: How does the recent decline in gold prices from the January peak impact day-to-day operations, and how does the company price loans in this environment? A: Tim Jugmans (CFO) explained that EZCORP prices loans based on a 3-month rolling average of gold prices, so short-term spikes or dips do not alter daily lending decisions. The primary impact of gold price changes is on scrap margins, which were elevated in Q2 due to the price surge but are now normalizing. Locky Given (CEO) added that the business fundamentally satisfies customers' need for cash, which is independent of gold prices, as evidenced by strong PLO growth across all markets. Q: Is same-store PLO growth driven by customers' cash needs or by higher collateral values due to rising gold prices? A: Tim Jugmans (CFO) clarified that customers typically borrow only what they need and feel comfortable repaying, rather than maximizing loans based on collateral value. This is supported by the fact that average loan sizes have not increased proportionally with gold prices, and many customers decline the maximum loan offered. The company views PLO growth as demand-led, not gold-price-led. Q: What is driving the strong merchandise margin expansion, which appears to be above the company's targeted 35-38% range? A: Tim Jugmans (CFO) attributed the margin improvement to better in-store execution, improved pricing strategies, and a favorable product mix, with some benefit from gold price changes. While margins have crept up, the company still expects consolidated margins to remain within the targeted range over time. Q: How is the integration of SMG progressing, and what are the key steps to unlock its value? A: Locky Given (CEO) stated that SMG is now 100% owned, and the integration will take about a year. Key priorities include migrating SMG onto EZCORP's point-of-sale system and Workday, as well as shifting the business culture from relying on scrap sales for cash to focusing on full jewelry cases and higher retail margins. The company is excited about SMG's potential, which may exceed initial expectations once these systems and cultural changes are implemented. Q: How should investors think about the seasonality and sequential earnings trends for the fiscal fourth quarter? A: Tim Jugmans (CFO) reminded that Latin American customers receive a mid-year bonus in July, which typically drives higher redemptions and a seasonal step-down in PLO, while the US book usually continues to build. Additionally, PLO yield compresses gradually as average loan sizes rise. As scrap margins normalize to historical levels of 15-20%, sequential bottom-line patterns will be less useful, and core pawn revenue and gross profit remain the cleanest indicators of underlying performance. Q: What is the current M&A pipeline, and how does the SMG acquisition fit into the broader strategy? A: Locky Given (CEO) noted that the M&A pipeline remains robust, particularly in Latin America, where there are large independent chains. In the US, the focus is on smaller, targeted acquisitions in markets with strong local teams. The SMG deal took time to complete due to the need for a willing seller and buyer, but the company is now focused on integrating recent acquisitions while continuing to evaluate new opportunities. Q: What are the key characteristics of SMG's stores, and how do they compare to EZCORP's existing operations? A: Locky Given (CEO) explained that SMG's largest markets are Florida and Puerto Rico, with smaller operations across the Caribbean. Puerto Rico has an auto pawn business under local regulations, which pushes average loan sizes higher than in the US. The company aims to bring SMG's metrics in line with EZCORP's through capital deployment, operating disciplines, and cultural changes, though this will take time. Q: What is driving the exceptional PLO growth in Latin America, and is it sustainable? A: Locky Given (CEO) credited the Latin American team's phenomenal execution, particularly in becoming stronger jewelry lenders. Historically, the region was known for general merchandise lending, but jewelry now represents 50% of PLO, up from an estimated 30-35% three years ago. While macro conditions are supportive, the growth is primarily driven by deliberate execution and leadership improvements, making it sustainable. Q: How are fluctuations in gas prices impacting the company's customers and operations? A: Locky Given (CEO) acknowledged that gas price volatility puts pressure on customers and increases the demand for cash, though he could not provide a specific number. The company sees this as a macro tailwind that supports its core lending business. Q: Can you provide more color on consumer health and repeat visitation trends, and how are forfeitures trending? A: Locky Given (CEO) noted that strong PLO growth indicates significant demand for cash, while forfeiture rates have remained stable over a long period. Sales are also robust, particularly in Latin America, showing that both sides of the business are performing well. The company lends at 40-65% of collateral value, adjusting loan-to-value ratios based on product trends (e.g., laptops) to ensure inventory can be sold, which keeps forfeitures consistent through economic cycles. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Ezcorp (EZPW) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +20.51%. A quarter ago, it was expected that this consumer financial services company would post earnings of $0.36 per share when it actually produced earnings of $0.58, delivering a surprise of +61.11%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Ezcorp, which belongs to the Zacks Financial - Consumer Loans industry, posted revenues of $418.75 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.40%. This compares to year-ago revenues of $310.98 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Ezcorp shares have added about 59.6% since the beginning of the year versus the S&P 500's gain of 13%. While Ezcorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Ezcorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.48 on $435 million in revenues for the coming quarter and $2.00 on $1.67 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Consumer Loans is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Navient (NAVI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This student loan servicing company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -9.5%. The consensus EPS estimate for the quarter has been revised 18.2% lower over the last 30 days to the current level. Navient's revenues are expected to be $129.07 million, down 1.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EZCORP, Inc. (EZPW) : Free Stock Analysis Report Navient Corporation (NAVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

EZCORP, Inc. EZPW reported third-quarter fiscal 2026 (ended June 30) adjusted earnings per share (EPS) of 47 cents, beating the Zacks Consensus Estimate of 39 cents. The metric increased from earnings of 32 cents in the prior-year quarter. Results were aided by growth in pawn service charges, merchandise sales and jewelry scrap sales. However, an increase in expenses was a headwind. Results include certain items. After considering those, the company’s net income attributable to common shareholders (GAAP basis) was $38.2 million compared with $26.5 million in the year-ago quarter. Total quarterly revenues were $418.7 million, rising 34.7% year over year. The top line surpassed the Zacks Consensus Estimate of $405 million. Total operating expenses were $191.4 million, up 29.6% from the previous-year quarter. Store expenses increased 30.3% to $147.7 million due to higher labor costs, including minimum-wage increases in Latin America. General and administrative expenses rose 23.5% to $34 million due to labor costs, higher incentive compensation and expenses associated with SMG. U.S. Pawn: Total revenues were $251.2 million, up 14.2% year over year. Pawn loans outstanding increased 15% to $254.5 million, while segment contribution rose 24.4% to $61.6 million. Pawn service charges increased 13.4% to $95.2 million. Merchandise sales rose 5.8% to $118.8 million, while jewelry scrap sales increased 56.8% to $37.2 million. Latin America Pawn: Total revenues totaled $124.4 million, up 36.7% year over year. Pawn loans outstanding increased 40% to $98.9 million. On a constant-currency basis, the metric increased 33%. Pawn service charges rose 36.7% year over year to $42.9 million, while merchandise sales increased 30.9% to $73.8 million. Jewelry scrap sales surged 138.2% to $7.7 million. Segment contribution increased 56.1% year over year. On a constant-currency basis, segment contribution rose 43% to $22.8 million. SMG: Total revenues were $43.1 million, comprising merchandise sales of $17.1 million, pawn service charges of $14.3 million and jewelry scrap sales of $11.7 million. Pawn loans outstanding were $33.8 million, while net inventory totaled $28.9 million. Store expenses were $16 million and segment contribution was $5.9 million. Merchandise sales gross margin increased to 38% from 36% in the prior-year quarter. Aged general merchandise declined 132 basis points to 1.3% of the total general merchandise inventory. Jewelry scrap sales gross margin decreased to 26% from 29% in the year-ago quarter. Inventory turnover declined to 2.3 times from 2.4 times. The company ended the quarter with 1,549 stores, up from 1,336 stores as of June 30, 2025. During the fiscal third quarter, it added 43 stores. As of June 30, 2026, cash and cash equivalents were $311 million compared with $472.1 million as of June 30, 2025. Long-term debt was $519.5 million compared with $517.6 million as of June 30, 2025. During the first nine months of fiscal 2026, the company used $8 million for the purchase and retirement of treasury stock compared with $6 million in the prior-year period. The company’s near-term performance is expected to be supported by higher average loan balances, and continued growth in merchandise sales and pawn service charges. It also strengthened its presence in Latin America by acquiring 33 stores in Guatemala, reinforcing its leadership position in the region, while opening nine de novo stores. EZPW recently acquired the remaining minority interests in SMG, which operates 108 stores across 12 countries, enhancing its ownership and operational scale. However, rising store and administrative expenses, lower cash balances and a decline in inventory turnover remain concerning. EZCORP, Inc. price-consensus-eps-surprise-chart | EZCORP, Inc. Quote EZPW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Enova International, Inc. ENVA reported second-quarter 2026 adjusted earnings per share of $4.31, which increased from $3.23 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.99. ENVA results were aided by increased revenues and improving credit quality. However, an increase in expenses was a headwind. Capital One Financial’s COF second-quarter 2026 adjusted earnings of $5.81 per share significantly outpaced the Zacks Consensus Estimate of $4.85. The bottom line increased from $5.48 in the prior-year quarter. Results benefited from a rise in net interest income and non-interest income, along with a substantial decline in provisions. Loan growth and an improvement in the net interest margin were other positives. However, higher expenses and a sequential decline in deposits were undermining factors for COF. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enova International, Inc. (ENVA) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report EZCORP, Inc. (EZPW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in EZCORP, Inc.? Here are five stocks we like better. Strong quarterly growth: Revenue rose 31% to $408.4 million, adjusted EBITDA increased 48% to $65.6 million, and adjusted EPS climbed 47% to $0.47. Growth was driven primarily by core pawn operations, with core pawn revenue up 24% and gross profit up 28%. Record lending and improved retail performance: Pawn loans outstanding reached a record $382 million, up 31% year over year, while merchandise margins expanded to 38%. U.S. and Latin American operations both posted higher pawn balances, gross profit and EBITDA, with Latin America benefiting from new stores and the Guatemala acquisition. Expansion and integration remain priorities: EZCORP raised its SMG ownership to 97.4% during the quarter and subsequently acquired the remaining shares, bringing ownership to 100%. Management plans to integrate SMG’s systems and operations while pursuing further Latin American acquisitions, de novo stores, inventory efficiency and expense control. EZCORP (NASDAQ:EZPW) reported third-quarter fiscal 2026 results marked by higher pawn-loan balances, expanding merchandise margins and contributions from recently acquired operations. The company said adjusted EBITDA increased 48% year over year to $65.6 million, while adjusted diluted earnings per share rose 47% to $0.47. Total revenue increased 31% to $408.4 million, and gross profit grew 31% to $240.3 million. Adjusted EBITDA margin expanded 190 basis points to 16%, which Chief Financial Officer Tim Jugmans attributed to merchandise-margin expansion, expense discipline and higher scrap gross profit. → 3 Drone Stocks That Should Soar After the Summer Slump Management emphasized that the quarter's growth was primarily driven by core pawn operations rather than gold-scrap activity. Core pawn revenue, which excludes scrap, rose 24%, while core pawn gross profit increased 28%. Same-store core pawn gross profit grew 13%. Pawn loans outstanding, or PLO, ended the quarter at a record $382 million, up 31% from a year earlier. Jugmans said the increase reflected larger average loan sizes and new-store additions. Pawn service charges rose 29% to $149.1 million, including a 13% increase in same-store pawn service charges. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Merchandise sales increased 21% to $203.5 million, with same-store merchandise sales up 6%. Consolidated merchandise margin expanded 190 basis points to 38%, which management said reflected pricing execution and inventory quality. Net inventory totaled $312.5 million at quarter-end, up 39%, driven by higher PLO purchases and layaways. Inventory turnover was 2.3 times, compared with 2.4 times a year earlier. Aged general merchandise declined 132 basis points to 1.3% of total general-merchandise inventory. → Jersey Mike's Serves Fresh Gains After IPO Stumble During the call, Chief Executive Officer Lachie Given said customer demand for cash remains strong across the company’s markets. He said that while gold is a major source of collateral, the underlying business is centered on meeting customers’ short-term cash needs. Jugmans said EZCORP uses a rolling, roughly three-month view of gold prices when pricing loans rather than responding to daily market movements. Management said customers often take less than the maximum loan amount available, indicating that demand is driven primarily by cash needs rather than collateral values alone. The U.S. Pawn segment ended the quarter with 560 stores across 19 states, including one acquired location. Segment revenue increased 14% to $251.2 million, with more than half of the improvement attributed to core pawn operations. Core pawn revenue rose 9%, while core pawn gross profit increased 12%. PLO increased 15% to $254.5 million, including 13% same-store growth. Average loan size rose 16% to $240, supported by a higher jewelry mix and gold prices. Jewelry represented 69% of U.S. PLO. Merchandise sales increased 6%, while same-store sales rose 3%. Merchandise margin expanded 130 basis points to 40%. U.S. Pawn segment EBITDA increased 23% to $64.5 million, while EBITDA margin expanded 200 basis points to 26%. Store expenses increased 8% overall and 6% on a same-store basis, below revenue growth. U.S. inventory rose 28% to $212.2 million, while aged general merchandise was 1.9% of total general-merchandise inventory, or about $0.7 million. Latin America Pawn ended the period with 881 stores across four countries. The company opened nine de novo locations during the quarter, including five in Mexico, three in Guatemala and one in Honduras, while consolidating one location. It also completed the acquisition of 33 stores in Guatemala in April. On a constant-currency basis, Latin America revenue reached a record $114.1 million, up 25%. Core pawn revenue rose 22%, core pawn gross profit increased 31%, and PLO grew 33% to $93.7 million. Same-store PLO increased 28%. Merchandise sales in the segment climbed 20%, including 11% same-store growth, while merchandise margin expanded 490 basis points to 36%. Segment EBITDA rose 40% to $25.4 million, and EBITDA margin increased 240 basis points to 22%. Given credited the Latin America team’s execution and increased jewelry lending for much of the region’s PLO growth. Jewelry represented 49% of Latin America PLO, and Given said the business has worked over recent years to build its capabilities as a jewelry lender in addition to its historical general-merchandise lending operations. Management also said a work stoppage at Nacional Monte de Piedad in Mexico may have directed some demand to other pawn operators, although Given said EZCORP has relatively few stores located close to that company’s locations. EZCORP increased its ownership interest in SMG to 97.4% during the quarter after acquiring the remaining interest in Founders. In July, shortly after quarter-end, EZCORP purchased the remaining SMG shares and now owns the business outright. SMG ended the quarter with 108 stores in 12 countries under the La Familia and CashWiz brands. The business generated $43.1 million in revenue during its second quarter of consolidation, including $31.4 million in core pawn revenue. Core pawn gross profit was $19.7 million, while total gross profit was $22.4 million. Given said management plans to integrate SMG onto EZCORP’s point-of-sale and Workday systems and implement its operating disciplines and inventory-management approach. He said the business had previously been capital constrained and that EZCORP sees opportunities to improve operations while maintaining fuller jewelry cases and emphasizing retail margins over scrap activity. The company ended the quarter with $311 million in cash. Its first debt maturity is $230 million of convertible notes due in December 2029, followed by $300 million of senior notes due in April 2032. During the quarter, EZCORP repurchased and retired about 132,000 Class A shares for $4 million under its $50 million repurchase authorization. It has used $8 million of the program to date. Looking ahead, management said it will prioritize PLO growth, inventory efficiency, de novo expansion, acquisition integration and expense management. The company said its acquisition pipeline remains active, particularly in Latin America, while U.S. opportunities are expected to be more targeted and smaller in scale. EZCORP expects scrap margins to continue normalizing toward historical levels of 15% to 20% if gold prices do not increase. Scrap gross margin was 26% in the third quarter, down from 38% in the second quarter but above 20.9% in the prior-year period. Management said investors should focus on core pawn revenue and core pawn gross profit as the clearest measures of the company’s underlying operating performance. EZCORP, Inc is a specialty consumer finance company that provides pawn loans and retail merchandise programs primarily through its EZPAWN and Cash Converters brands. The company offers collateral-based loans secured principally by jewelry, electronics, musical instruments and other personal items, alongside check-cashing, money-transfer and bill-payment services. In addition to its pawn lending operations, EZCORP acquires previously pawned or consumer merchandise for resale through its “Sell-It-Now” platform and retail storefronts. Founded in 1989 and headquartered in San Antonio, Texas, EZCORP operates in two principal geographic markets: the United States and Mexico. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "EZCORP Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Record PLO Drives Exceptional Growth in Adjusted EBITDA and EPS AUSTIN, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States, Latin America and the Caribbean, today announced results for its third quarter ended June 30, 2026. Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year. THIRD QUARTER HIGHLIGHTS Net income attributable to EZCORP increased 44% to $38.2 million. On an adjusted basis1, net income attributable to EZCORP increased 52% to $37.2 million. Diluted earnings per share (EPS) increased 41% to $0.48. On an adjusted basis1, diluted earnings per share increased 47% to $0.47. Adjusted EBITDA increased 48% to $65.6 million. Total revenues increased 35% to $418.7 million, while gross profit increased 34% to $246.2 million. Pawn loans outstanding (PLO) increased 33% to $387.2 million. We acquired the remaining interest in Founders and SMG in a series of transactions throughout the third quarter and July 2026. We grew our footprint by 43 stores. CEO COMMENTARY AND OUTLOOK Lachie Given, Chief Executive Officer, stated, “This was another outstanding quarter for EZCORP, one of the strongest in our history. PLO reached a new high of $387.2 million, adjusted EBITDA increased 48%, and diluted EPS rose 41%. The gains were well balanced in all of our geographies across lending, merchandise sales and margin, gold scrap and profitability. Importantly, excluding scrap, gross profit increased 32%, underscoring the depth, durability and trajectory of our business. “A key highlight for the quarter has been the outstanding performance of our Latin American business, with segment contribution growing 56%, underpinned by excellent operating metrics across all measures. We also expanded our scale in the region, acquiring 33 new stores in Guatemala, furthering our leadership position there, and opened 9 de novo stores. Additionally, shortly after June 30, we acquired all of the remaining minority interests in SMG, which operates 108 stores across 12 countries. Our view on SMG has strengthened further as we see considerable opportunity in introducing EZCORP’s systems, operating disciplines, culture and capital across the platform. “We enter the final quarter of fiscal 2026 in a very strong operating and financial position. I am proud of what our team has accomplished so far this year and sincerely thank them for their tireless work in serving our customers with passion, dignity and respect. I look forward to continuing to build value for our shareholders in what has been an exceptionally strong year for our company.” CONSOLIDATED RESULTS PLO increased 33% to $387.2 million (18% on a same-store2 basis), primarily due to higher average loan size and continued strong pawn demand. Total revenues increased 35% and gross profit increased 34%, reflecting improved pawn service charges (PSC), merchandise sales, and jewelry scrap sales. Excluding SMG, total revenues increased 21% and gross profit increased 22%. PSC increased 32% as a result of higher average PLO and additional stores. Merchandise sales gross margin increased to 38% from 36%, while aged general merchandise decreased 132 basis points (bps) to 1.3% of total general merchandise inventory. Jewelry scrap sales increased 110% due to the increase in gold price and jewelry purchases, and jewelry scrap sales gross margin decreased from 29% to 26%. Net inventory increased 40% (21% on a same-store basis) due to an increase in PLO, layaways and purchases. Inventory turnover down to 2.3x, from 2.4x. Store expenses increased 30% (12% on a same-store basis), primarily due to labor costs, including minimum wage increases in Latin America. General and administrative expenses increased 24%, primarily due to labor costs (including higher incentive compensation) and expenses associated with SMG. Income before taxes increased to $52.0 million, up 50% from $34.7 million, and adjusted EBITDA increased 48% to $65.6 million. Diluted earnings per share increased 41% to $0.48. On an adjusted basis, diluted earnings per share increased 47% to $0.47. Cash and cash equivalents decreased to $311.0 million from $472.1 million as of June 30, 2025. The decrease was primarily driven by the retirement of SMG’s existing third-party indebtedness of $134.2 million and cash used for acquisitions. SEGMENT RESULTS U.S. Pawn PLO increased 15% to $254.5 million (13% on a same-store basis) due to an increase in average loan size and continued strong loan demand. Total revenues and gross profit increased 14%, driven by increased jewelry scrap sales, PSC, and merchandise sales. PSC increased 13% as a result of higher average PLO. Merchandise sales increased 6% (3% on a same-store basis), and sales gross margin increased by 130 bps to 40%. Jewelry scrap sales increased 57% due to the increase in gold price and jewelry purchases, and jewelry scrap sales gross margin decreased from 29% to 27%. Net inventory increased 28% (24% on a same-store basis) due to increase in PLO, layaways and purchases; inventory turnover remained consistent at 2.0x. Aged general merchandise decreased by 90 bps to 1.9%, or $0.7 million of total general merchandise inventory. Store expenses increased 8% (6% on a same-store basis), primarily due to increased labor, in line with store activity. Segment contribution increased 24% to $61.6 million. Segment store count increased to 560 due to the acquisition of 1 store during the quarter. Latin America Pawn PLO increased 40% to $98.9 million (33% on constant currency basis). On a same-store basis, PLO increased 35% (28% increase on a constant currency basis) due to strong loan demand and improved operational performance. Total revenues increased 37% (25% on constant currency basis), and gross profit increased 44% (32% on a constant currency basis), primarily due to increased jewelry scrap sales, PSC and merchandise sales. PSC increased to $42.9 million, an increase of 37% (26% on a constant currency basis) as a result of higher average PLO. Merchandise sales increased 31% (20% on constant currency basis) and 21% on a same-store basis (11% increase on a constant currency basis). Merchandise sales gross margin increased to 36% from 31%. Jewelry scrap sales increased 138% due to the increase in gold price, and jewelry scrap sales gross margin decreased from 29% to 26%. Net inventory increased 27% (21% on a constant currency basis) due to an increase in PLO. Inventory turnover remained consistent at 3.1x. On a same-store basis, net inventory increased by 11% (5% on a constant currency basis). Aged general merchandise remained below 1% of total general merchandise inventory. Store expenses increased 38% (27% on a constant currency basis) and increased 28% on a same-store basis (17% on a constant currency basis) due to increased labor, in line with store activity and minimum wage increases. Segment contribution increased 56% to $24.8 million (43% on a constant currency basis to $22.8 million). Segment store count increased by 41 stores to 881 during the quarter due to 33 acquired stores and 9 de novo stores, partially offset by 1 store consolidation. SMG During the third quarter of fiscal 2026, we acquired the remaining membership interests in Founders, resulting in 100% ownership, and increased our ownership of SMG to 97.4%. In July 2026, we acquired the remaining shares of SMG, making it wholly owned. As SMG was not owned during the comparable prior-year period, results are presented on an absolute basis without year-over-year comparisons. PLO of $33.8 million and net inventory of $28.9 million, with aged general merchandise at 1.1% of total general merchandise inventory. Total revenues were $43.1 million, comprised of merchandise sales of $17.1 million (with a margin of 31%), PSC of $14.3 million, and jewelry scrap sales of $11.7 million (with a margin of 24%). Store expenses totaled $16.0 million. Segment contribution was $5.9 million. Segment store count increased to 108 due to the addition of 1 de novo store. FORM 10-Q EZCORP’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below. CONFERENCE CALL EZCORP will host a conference call on Thursday, August 6, 2026, at 8:00 am Central Time to discuss Third Quarter Fiscal 2026 results. Analysts and institutional investors may participate on the conference call by registering online at https://register-conf.media-server.com/register/BI0b21f04d441c43378152bf0ac5860ad3. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: https://edge.media-server.com/mmc/p/74c6ptw7. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call. ABOUT EZCORP Formed in 1989, EZCORP is a leading provider of pawn transactions in the United States, Latin America and the Caribbean. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW. Follow us on social media: Facebook EZPAWN Official https://www.facebook.com/EZPAWN/ EZCORP Instagram Official https://www.instagram.com/ezcorp_official/ EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/ EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/ FORWARD LOOKING STATEMENTS This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company's strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with pandemics. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Contact:Email: [email protected]: (512) 314-2220 Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions. Numbers may not foot or cross foot due to rounding.1“Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.2“Same-store” basis, which is a financial measure, includes stores open the entirety of the comparable periods. As a result of the acquisition of Founders One, LLC and its subsidiary Simple Management Group, Inc. effective January 2, 2026, the composition of our reportable segments changed beginning in the second quarter of fiscal 2026. SMG is now reported as a standalone reportable segment. Our equity interest in Cash Converters International Limited is now included within Corporate. Prior period segment information has been recast to reclassify Cash Converters equity income and interest income from notes receivable from Founders from the 'Other Investments' segment to Corporate. Because SMG was not a consolidated subsidiary in any prior period presented, no prior period SMG segment results exist. Non-GAAP Financial Information (Unaudited) In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted 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 believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding 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 primarily to evaluate and compare operating results across accounting periods. Readers should consider the information in addition to, but not instead of 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. 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, 2026 and 2025 were as follows: Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss. Miscellaneous Non-GAAP Financial Measures

EZCORP, Inc. EZPW is slated to report third-quarter fiscal 2026 (ended June 30) results on Aug. 5, after market close. The company’s quarterly earnings and revenues are expected to have improved on a year-over-year basis. In the last reported quarter, EZCORP’s performance was driven by continued strength in its core pawn business, supported by higher customer demand and larger average loan balances. Results also benefited from strong jewelry scrap sales amid favorable gold prices and the first full quarter of contributions from SMG following its acquisition. EZPW has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 39.83%. EZCORP, Inc. price-eps-surprise | EZCORP, Inc. Quote The Zacks Consensus Estimate for EZPW’s fiscal third-quarter earnings is pegged at 39 cents per share, unchanged over the past seven days. The estimate indicates an 18.2% rise from the year-ago quarter’s reported number. The consensus estimate for sales is pegged at $405 million, suggesting a year-over-year increase of 30.2%. Persistent inflationary pressure is likely to have continued driving demand for EZCORP’s short-term, collateral-based lending services. Consumers facing limited access to traditional credit have increasingly turned to pawn loans to manage essential expenses and bridge cash-flow gaps. This trend is expected to have supported pawn loan originations and pawn loans outstanding (“PLO”) during the fiscal third quarter. The Zacks Consensus Estimate for pawn service charges of $150.2 million suggests growth of 30.2%. EZCORP’s merchandise sales are also expected to have been strong in the quarter under review. Consumer preference for affordable, high-quality pre-owned merchandise amid elevated retail prices is likely to have supported store traffic and inventory turnover. The company’s broad assortment of jewelry, electronics, luxury goods and other general merchandise should have aided retail revenues. Healthy demand from value-conscious shoppers and disciplined inventory management are likely to have continued supporting merchandise sales and gross profits in the fiscal third quarter. The Zacks Consensus Estimate for merchandise sales is pegged at $219.6 million, which implies a year-over-year rise of 30%. Elevated gold prices during a portion of the quarter are expected to have aided jewelry scrap sales and margins in the fiscal third quarter. EZCORP benefits when higher precious-metal prices increase the proceeds generated from scrapped jewelry. The consensus estimate for jewelry scrapping sales is $35 million, indicating a year-over-year rise of 29%. The consolidation of SMG is likely to have provided a significant inorganic boost to EZCORP’s revenues and operating results. The company acquired a controlling interest in Founders One, the parent of SMG, in January 2026. The transaction added more than 100 stores and expanded EZCORP’s operations across several new markets. However, costs associated with operating a significantly expanded store network are likely to have increased. Acquisition and integration costs, and continued investments in technology and store infrastructure might have exerted pressure on the operating margin in the quarter to be reported. Our quantitative model does not conclusively predict an earnings beat for EZPW this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Earnings ESP: EZCORP has an Earnings ESP of 0.00%. Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Ally Financial’s ALLY second-quarter 2026 adjusted earnings of $1.21 per share lagged the Zacks Consensus Estimate of $1.25. However, the bottom line reflected a 22% jump from the year-ago quarter. ALLY’s results were primarily hampered by higher expenses and provisions. However, growth in net financing revenues and other revenues, an increase in loan balances, and an improvement in net interest margin (NIM) offered support to some extent. Capital One Financial’s COF second-quarter 2026 adjusted earnings of $5.81 per share significantly outpaced the Zacks Consensus Estimate of $4.85. The bottom line was up from $5.48 in the prior-year quarter. COF’s results benefited from a rise in net interest income and non-interest income, along with a substantial decline in provisions. Loan growth and improvement in NIM were other positives. However, higher expenses and a sequential decline in deposits were undermining factors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EZCORP, Inc. (EZPW) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report Ally Financial Inc. (ALLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research