EZCORP (EZPW) Canaccord Genuity’s 45th Annual Growth Conference summary

Business performance and growth drivers

• Achieved record growth driven by management changes and focus on core pawn business, with increased average loan sizes and gold price tailwinds.

• Enhanced digital engagement, including online payments, inventory viewing, and a rewards program, boosting customer retention and frequency.

• Broadened customer base beyond lower-income segments, with increased demand as other lenders move up the credit spectrum.

• Loan and merchandise sales strategies are closely linked, focusing on maximizing gross profit through data-driven lending and consumer behavior analysis.

• Gold jewelry comprises two-thirds of U.S. collateral, with risk managed by adjusting lending and inventory scrapping in response to price changes.

Regional operations and expansion

• U.S. business turnaround led to double-digit growth, with similar strategies now being applied in Latin America, though 18–24 months behind.

• Latin America represents 60% of stores but only 30% of gross profit; margins are improving but remain structurally lower due to smaller loan sizes and different merchandise mix.

• Jewelry loans in Latin America have increased to 40% of balances, and digital capabilities are expanding, with further upside expected.

Capital allocation and M&A

• Balance sheet strengthened with over $400 million in liquidity after settling convertible notes, prioritizing scale through new store openings and acquisitions.

• Acquisitions, especially in Latin America, are a key focus for deploying capital over the next 12–18 months, with recent deals attracting more sellers.

• Share repurchases are considered but secondary to long-term value creation through expansion.