EZCORP (EZPW) investor relations material

Executive summary

• Achieved record operating results in Q2 FY2026, with all-time highs in total revenue, pawn loans outstanding (PLO), and adjusted EBITDA, which rose 76% year-over-year to $76.9 million and margin expanding 340 basis points to 18%.

• Diluted EPS increased 85% to $0.61, with adjusted EPS up 76% to $0.58, reflecting robust profitability improvements and the first full quarter of SMG integration.

• Net income attributable to shareholders rose 93% year-over-year to $49.1 million; adjusted net income up 84% to $46.5 million.

• Expanded store footprint by 123 locations during the quarter, including 117 acquired and 6 new stores, ending with 1,506 stores across 16 countries; post-quarter, acquired 32 more stores in Guatemala.

• Completed major acquisitions: Founders One, LLC (SMG segment) and El Bufalo Pawn, expanding geographic reach and segment presence.

Financial highlights

• Total revenues reached a record $446.9 million for the quarter, up 46% year-over-year; gross profit increased 46% to $260.0 million.

• PLO rose 33% to $349.4 million, driven by higher average loan size and strong demand.

• Pawn service charges (PSC) increased 30% to $147.3 million; merchandise sales climbed 22% to $207.2 million, with same-store sales up 7%.

• Merchandise margin expanded to 36% (U.S. Pawn 37.7%, Latin America Pawn 34.2%); jewelry scrap sales surged 288%, with gross margin rising to 38% overall and 41% in U.S. Pawn.

• Net inventory increased 33%, with inventory turnover improving to 2.7x from 2.5x.

Outlook and guidance

• Management remains focused on expanding PLO, improving inventory efficiency, scaling operational best practices, and leveraging operational efficiencies for further growth.

• If gold prices stabilize, scrap and scrap gross profit margin expected to normalize next quarter.

• Expense growth anticipated as integration and expansion continue; M&A pipeline remains active in both U.S. and Latin America.

• Sufficient liquidity is anticipated to fund operations, debt service, repurchases, investments, and growth initiatives over the next twelve months.