EZCORP (EZPW) Q1 2026 earnings summary

Executive summary

• Net income rose 43% year-over-year to $44.3 million, with adjusted net income up 38% to $43.9 million, driven by strong U.S. and Latin America pawn operations.

• Diluted EPS increased 38% to $0.55, and adjusted EBITDA grew 36% to $70.3 million.

• Total revenues climbed 19% to $382.0 million, with gross profit up 20% to $223.0 million.

• Pawn loans outstanding (PLO) grew 14% to $314.4 million, reflecting strong demand and higher average loan size.

• Store footprint expanded to 1,500 locations across 16 countries, including major acquisitions of Founders One and El Bufalo Pawn.

Financial highlights

• Merchandise sales reached $210.1 million, up 13%, and pawn service charges increased 13% to $131.9 million.

• Gross margin on merchandise sales improved to 37%, and jewelry scrap sales gross margin rose from 23% to 34%.

• Adjusted EBITDA margin was approximately 18.4%, with net income up 43% to $44.3 million.

• Cash and cash equivalents stood at $465.9 million at quarter-end.

• Inventory increased 27% to $253.4 million, with turnover at 2.5x.

Outlook and guidance

• Management expects continued growth through organic expansion and acquisitions, supported by a highly liquid balance sheet.

• Recent acquisitions are expected to be immediately accretive and provide a platform for further international growth.

• Q2 momentum expected to remain favorable, with tax refund season and high gold prices supporting activity.

• Anticipates two quarters of elevated scrap gross profit margin if gold prices remain high, before normalizing.

• Sufficient liquidity is anticipated to fund operations, debt service, investments, and capital needs over the next twelve months.