EZCORP (EZPW) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full year 2024 results, with total Q4 revenue of $300.9M, up 11% year-over-year, and full-year revenue reaching $1.1616B, driven by strong pawn demand and operational improvements.

• Net income rose to $84.7M for the year, up 20%, with Q4 net income at $15.2M and adjusted net income up 20% for the year.

• EBITDA for Q4 rose 15% to $36.7M, with a margin of 12%, and diluted EPS increased 13% to $0.26 per share.

• Store count reached 1,279, with 21 new stores added in Q4, including 20 in Latin America and one in the U.S.

• Strong customer engagement, with EZ+ Rewards members growing 44% to 5.4M globally and a 23% increase in website traffic.

Financial highlights

• Q4 total revenues: $300.9M, up 11% year-over-year; gross profit: $178.9M, up 12%.

• Q4 EBITDA: $36.7M, up 15%; EBITDA margin: 12%, up 45 bps; Q4 diluted EPS: $0.26, up 13%.

• U.S. pawn Q4 revenue reached $212M, up 9% year-over-year; EBITDA margin improved to 21%.

• Latin America Q4 revenue hit $88.9M, up 17%; EBITDA climbed 50% to $12.7M, with margin up to 14%.

• Inventory turnover rate was 2.6x in Q4, with aged general merchandise inventory at 1.7%.

Outlook and guidance

• Expect continued organic growth in PLO, PSC, and merchandise sales, supported by a strong balance sheet and cash position.

• Gross margin anticipated to remain at the lower end of the 35%-38% target range due to focus on inventory turns.

• Expense growth expected to moderate as inflation rates decline, though labor costs remain impacted by minimum wage increases.

• Robust M&A pipeline and strategic focus on expanding store count, customer engagement, and operational excellence.

• Well-positioned to capitalize on new growth opportunities and deliver long-term shareholder value.