EZCORP (EZPW) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 revenue of $319.9 million, up 14% year-over-year, and all-time high Pawn Loans Outstanding (PLO) of $293.2 million, reflecting strong demand for instant cash and pre-owned merchandise.

• Adjusted EBITDA rose 42% to $45.2 million, and diluted EPS increased 38% to $0.33, driven by operating leverage and disciplined execution.

• Net income for the quarter was $26.5 million, up 48% year-over-year; adjusted net income was $25.2 million, up 46%.

• Expanded store footprint with 40 acquired stores in Mexico, 3 new U.S. stores, and 10 new stores in Latin America, bringing the total to 1,336 pawn stores globally.

• Strong consumer demand, higher average loan size, and operational improvements contributed to financial performance.

Financial highlights

• Total revenue increased 14% year-over-year to $319.9 million, with merchandise sales up 10% and same-store sales up 9%.

• Gross profit rose 13% to $188.4 million, with gross margin steady at 59%.

• PLO grew 12% year-over-year to $293.2 million; inventory increased 32% due to higher purchasing and layaways.

• Adjusted EBITDA margin expanded 280 basis points to 14.1%, marking five consecutive quarters of year-over-year margin expansion.

• Ended quarter with $472.1 million in cash, up from $170.5 million at prior fiscal year-end, but down from $505.2 million last quarter due to acquisitions and asset growth.

Outlook and guidance

• Expect similar scrap sales and gross profit in Q4 if gold prices remain steady, but anticipate scrap margins to decline in FY 2026.

• Sequential increase in total expenses expected, but expense management remains a focus.

• Acquisition pipeline remains robust in both U.S. and Latin America, with disciplined capital deployment planned.

• Management expects cash flows from operations and cash on hand to be sufficient for ongoing operations, debt service, and growth initiatives over the next twelve months.

• Ongoing investments in technology, store expansion, and digital engagement to support growth.