EZCORP (EZPW) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 revenue of $318.9 million, up 12% year-over-year, and record pawn loans outstanding (PLO) of $271.8 million, up 15% year-over-year, driving strong profit growth.

• EBITDA increased 23% to $45.1 million; diluted EPS grew 21% to $0.34, reflecting strong operating leverage and disciplined expense management.

• Net income for Q2 was $25.4 million, up 18% year-over-year; adjusted net income up 25% to $26.1 million.

• Store count reached 1,284 across the US and Latin America, with nine new stores opened and one acquired in Guatemala during the quarter; nine stores consolidated in Mexico.

• Persistent inflation and economic pressures are driving increased demand for pawn services and pre-owned goods.

Financial highlights

• Total revenues rose 12% year-over-year to $318.9 million; merchandise sales grew 8%; gross profit increased 10% to $185 million.

• EBITDA margin expanded to 14.1%, up 130 basis points; gross margin remained in the high 50s; merchandise margin decreased by 150 bps to 34%.

• Cash balance surged to $505.2 million, up from $174.5 million last quarter, mainly due to $300 million debt financing.

• Inventory increased 32% year-over-year, with turnover at 2.5x versus 2.9x last year.

• Purchased $1.0 million of shares in Q2; total repurchases under the program reached $30.0 million.

Outlook and guidance

• Focus remains on growing PLO, disciplined inventory management, and exceptional customer service to sustain momentum through 2025.

• Management expects continued growth driven by persistent inflation and economic pressures, with value-conscious consumers increasingly seeking short-term cash and secondhand goods.

• M&A pipeline is robust in both US and Latin America, with disciplined execution and focus on high-quality targets.

• Layaway program expected to drive future sales as deferred revenue is recognized in coming quarters.

• Plans to use proceeds from 2032 Senior Notes to repay 2025 Convertible Notes at maturity if not converted.