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    EZPW
    Earnings call· Jun 2026(Q3 FY26)

    EZCORP Q3 FY26 earnings call EZPW

    Aug 6, 2026 Source

    Executive summary

    EZCORP Q3 FY26 — Strong Core Pawn Performance and Strategic Acquisitions

    EZCORP delivered an outstanding quarter driven by robust core pawn operating metrics, strong PLO growth across all markets, and strategic acquisitions, notably increasing ownership of SMG to 100%. The company continues to focus on organic growth through de novos and disciplined M&A, while managing expenses and leveraging a strong balance sheet despite sequential normalization in scrap margins. Management emphasized the underlying strength of the core pawn business independent of gold price fluctuations.

    Highlights

    5

    • Adjusted EBITDA increased 48% to $65.6 million.

    • Adjusted diluted EPS grew 47% to $0.47.

    • Pawn Loan Outstanding (PLO) reached a record $382 million, up 31%.

    • Latin America segment EBITDA rose 40% to $25.4 million.

    • Consolidated merchandise margin expanded 190 basis points to 38%.

    Concerns

    3

    • Scrap sales and margin declined sequentially from Q2, with scrap gross margin at 26% compared to 38% in Q2.

    • Gold prices stabilized, impacting scrap gross profit normalization.

    • PLO yield compresses gradually as average loan sizes rise, particularly in states like Texas.

    Guidance & targets

    4
    CategoryTargetConfidence
    Scrap gross margin
    15%-20%
    medium materiality
    Medium
    Latin America PLO
    Seasonal step-down
    low materiality
    High
    PLO yield
    Gradual compression
    low materiality
    High
    Expenses
    Sequential increase
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    U.S. Pawn
    Strong performance driven by healthy pawn activity and merchandise margin expansion. PLO growth was supported by increased average loan size and strong pawn demand. Expense discipline contributed to EBITDA margin expansion.
    Core pawn revenue growth: 9%Core pawn gross profit growth: 12%PLO: $254.5MPLO growth: 15%Same-store PLO growth: 13%Average loan size: $240Average loan size growth: 16%Jewelry as % of PLO: 69%PSC growth: 13%Merchandise sales growth: 6%Same-store sales growth: 3%Merchandise margin: 40%Merchandise margin expansion: 130 bpsInventory: $212.2MInventory growth: 28%Turnover: 2xAged general merchandise: 1.9% of total GM inventory ($0.7M)EBITDA growth: 23%Core pawn contribution to gross profit growth: 83%Store expenses growth: 8% (total), 6% (same-store)EBITDA margin: 26%EBITDA margin expansion: 200 bps
    		$251.2M14%—EBITDA $64.5M
    Latin America
    Delivered an excellent quarter with record revenues and strong growth across core pawn metrics. Performance was driven by sustained pawn demand, improved operational performance, and strong pricing execution. Jewelry mix increased significantly, contributing to PLO growth.
    Core pawn revenue growth: 22%Core pawn gross profit growth: 31%PLO: $93.7MPLO growth: 33%Same-store PLO growth: 28%Average loan size: $112 (GAAP)Average loan size growth: 28% (GAAP), 18% (constant currency)Jewelry as % of PLO: 49%PSC growth: 26%Merchandise sales growth: 20%Same-store sales growth: 11%Merchandise margin: 36%Merchandise margin expansion: 490 bpsInventory: $71.4MInventory growth: 21%Turnover: 3.1xAged general merchandise: <1% of total GM inventoryEBITDA growth: 40%Core pawn contribution to gross profit growth: 95%Store expenses growth: 27% (total), 17% (same-store)EBITDA margin: 22%EBITDA margin expansion: 240 bps
    		$114.1M25%—EBITDA $25.4M
    SMG
    Results presented on an absolute basis as EZCORP did not own SMG in the prior year. The segment includes stores under La Familia and CashWiz banners, with one de novo opened in Puerto Rico during the quarter. Now wholly owned by EZCORP.
    Stores: 108Countries: 12PLO: $33.8MMerchandise sales: $17.1MPSC: $14.3MJewelry scrap sales: $11.7MCore pawn revenues: $31.4MCore pawn gross profit: $19.7MTotal gross profit: $22.4M
    		$43.1M———

    Operational metrics

    32
    Adjusted EBITDA
    $65.6M48% YoY
    Q3 FY26

    One of the strongest quarters in company history.

    Adjusted EBITDA margin
    16%190 bps YoY
    Q3 FY26

    Driven by merchandise margin expansion, expense discipline, and higher scrap gross profit.

    Adjusted diluted EPS
    $0.4747% YoY
    Q3 FY26

    Earnings grew well ahead of revenue, demonstrating operating leverage.

    Total revenues
    $408.4M31% YoY
    Q3 FY26

    On higher merchandise sales, PSC, scrap, and new stores including SMG.

    Gross profit
    $240.3M31% YoY
    Q3 FY26

    Increased in line with total revenues.

    Pawn Loan Outstanding (PLO)
    $382M31% YoY
    Q3 FY26

    Record level, driven by higher average loan sizes and new stores.

    Pawn Service Charges (PSC)
    $149.1M29% YoY
    Q3 FY26

    Flowed through from PLO strength.

    Same-store PSC growth
    13%
    Q3 FY26

    Reflects underlying business performance.

    Merchandise sales
    $203.5M21% YoY
    Q3 FY26

    Driven by consumers choosing affordable pre-owned goods.

    Same-store merchandise sales growth
    6%
    Q3 FY26

    Robust sales and turns.

    Merchandise margin
    38%190 bps YoY
    Q3 FY26

    Expanded due to pricing execution and inventory quality.

    SMG revenue contribution
    $43.1M
    Q3 FY26

    Contribution from SMG in its second quarter of consolidation.

    Same-store core pawn revenue contribution
    $24.5M
    Q3 FY26

    Contribution to consolidated revenue growth.

    Same-store scrap sales contribution
    $15.9M
    Q3 FY26

    Contribution to consolidated revenue growth.

    Other new stores revenue contribution
    $13.9M
    Q3 FY26

    Contribution to consolidated revenue growth.

    Same-store core pawn revenues growth
    9%
    Q3 FY26

    Cleanest read on underlying business performance.

    Same-store core pawn gross profit growth
    13%
    Q3 FY26

    Cleanest read on underlying business performance.

    Same-store EBITDA (ex-scrap gross profit) contribution
    $12.9M
    Q3 FY26

    Largest single driver of year-over-year EBITDA increase.

    SMG EBITDA contribution
    $6.6M
    Q3 FY26

    Contribution to consolidated EBITDA growth.

    Same-store scrap gross profit contribution
    $3.5M
    Q3 FY26

    Contribution to consolidated EBITDA growth.

    Scrap sales
    $55.7M$28.8M YoY
    Q3 FY26

    Increased year-over-year on higher gold prices.

    Scrap gross margin
    26%vs 38% Q2, 29% prior year
    Q3 FY26

    Declined sequentially as gold stabilized.

    Scrap gross profit
    $14.5Mvs $7.9M prior year
    Q3 FY26

    Remained well above prior year, contributing to earnings and cash.

    Consolidated net inventory
    $312.5M39% YoY
    Q3 FY26

    Reflecting higher PLO purchases and layaways.

    Inventory turnover
    2.3xvs 2.4x prior year
    Q3 FY26

    Slight decline year-over-year.

    Aged general merchandise
    1.3%132 bps decline
    Q3 FY26

    Improved inventory quality.

    Cash balance
    $311M
    Q3 FY26

    Highly liquid and conservatively positioned.

    SMG third-party debt retirement
    $134.2M
    Q3 FY26

    Reflected in year-over-year decline in cash.

    Shares repurchased
    132,000
    Q3 FY26

    Repurchased and retired under the authorized program.

    Buyback program amount used (Q3)
    $4M
    Q3 FY26

    Part of the $50M repurchase program.

    Buyback program amount used (to date)
    $8M
    Q3 FY26

    Total used from the $50M repurchase program authorized in November 2025.

    Headcount
    9,700
    Q3 FY26

    Total team members.

    Industry KPIs

    6
    MetricValueDetails
    Fee revenue$149.1MUSD
    Funding mix—
    Capital returns$4MUSD
    Loans card receivables$382MUSD
    Billed business purchase volume$203.5MUSD
    Net interest margin yield on receivablesCompresses gradually

    Deals & partnerships

    3
    SMG foundersAcquired remaining interest in SMG to increase ownership to 97.4% during the quarter, and 100% in July shortly after quarter end.

    SMG operates under La Familia and CashWiz banners across 12 countries. Integration plans include transitioning to EZ systems (point of sale, Workday) and implementing cultural changes.

    UndisclosedAcquired 33 stores in Guatemala.

    Extended market leadership position in Guatemala.

    UndisclosedOpened 9 de novo stores across Latin America.

    Includes 5 in Mexico, 3 in Guatemala, and 1 in Honduras. These de novos are consistently performing above expectations.

    Risks & headwinds

    6
    Scrap sales and margin declineQ3 FY26

    Scrap gross margin declined sequentially from 38% in Q2 to 26% in Q3.

    Mitigation: Management expects normalization to 15-20% long-term levels if gold prices remain stable; core pawn operations are the primary focus for earnings growth.

    Gold price volatilityCurrent

    Gold prices at $4,300 today versus $5,400 at peak in January; has been between $4,000 and $4,300 for months (excluding January spike).

    Mitigation: Company lends against longer-term gold values, not daily price movements, and uses scrap to manage inventory, not speculate on gold.

    PLO yield compressionOngoing

    PLO yield compresses gradually.

    Mitigation: Occurs as average loan sizes rise, since larger loans carry lower monthly rates in states like Texas.

    Sequential increase in expensesOngoing

    Expenses will continue to see sequential increase.

    Mitigation: Driven by growth in existing stores, de novo additions, and integration of acquisitions including SMG; management aims to manage expenses carefully.

    Macroeconomic pressures on customersOngoing

    High gas prices, interest rates, inflation, and cost of living.

    Mitigation: These factors increase demand for the company's core loan products, which management is actively servicing through strong lending trends and operational execution.

    Nacional Monte worker stoppage in MexicoOngoing (9-10 months into stoppage)

    Worker stoppage at big Nacional Monte operation.

    Mitigation: While not directly impacting EZCORP's stores due to limited proximity, it has likely shifted demand to other pawn shops, including EZCORP's.

    What to watch in Q4 FY26

    5

    SMG system integration

    Next quarter
    CurrentIn progress (point of sale, Workday)
    TargetContinued progress towards full integration

    Why it matters

    Successful integration of SMG onto EZCORP's systems is crucial for realizing operational efficiencies and maximizing the acquisition's value.

    I think it's going to take a year to get them -- the big things we need to do is get them on to our point of sale. We need to get them onto Workday. So those 2 things are significant pieces of work and are going on as we speak.

    Q&A highlights

    6

    How do gold prices impact day-to-day operations and loan pricing, especially given recent volatility?

    Management explained they price loans based on a 3-month rolling average of gold prices, not daily fluctuations, to avoid rapid changes. The primary impact of gold price volatility is on scrap sales and margins, which normalized sequentially from Q2's elevated levels. They emphasized that the core business is driven by customer demand for cash, not gold price speculation, and customers generally take only what they need, not maximizing loans based on higher gold values.

    “On setting gold prices, we are looking at -- we look at gold prices on a rolling basis, say, look at like a 3-month rolling basis. So if gold spikes like it did in January and then comes back down, we are not changing what we do on a day-to-day basis.”

    asked by Brian McNamara · answered by Timothy Jugmans

    2 min read5 chapters

    Detailed Narrative

    01

    Core Pawn Business Outperformance

    EZCORP's Q3 FY26 results were primarily driven by exceptionally strong core pawn operating metrics, which normalize out global scrap activities. Core pawn revenues grew 24%, core pawn gross profit rose 28%, and same-store core pawn gross profit increased 13%. This performance highlights the underlying strength and demand for the company's core lending products, with management emphasizing that core operations, not scrap, drove the majority of earnings growth this quarter.

    02

    Latin America's Continued Strength and De Novo Growth

    Latin America was a standout region, with PLO growing 33% in constant currency, core pawn gross profit rising 31%, and segment EBITDA increasing 40%. The region also saw margin expansion on both merchandise and EBITDA lines. The company opened 9 de novo stores across Latin America (5 in Mexico, 3 in Guatemala, 1 in Honduras), which are consistently performing above expectations and represent a significant growth avenue. The team's execution in increasing jewelry mix to 49% of PLO has been a key driver.

    03

    Strategic Acquisition and Integration of SMG

    EZCORP reached a significant milestone by acquiring the remaining interest in SMG, increasing ownership to 97.4% during the quarter and 100% shortly after quarter-end. The integration plan for SMG includes transitioning to EZCORP's point-of-sale systems and Workday, which is expected to take about a year. Management anticipates considerable opportunity by introducing EZ systems, operating disciplines, culture, and capital, transforming SMG from a capital-constrained business to one aligned with EZCORP's metrics.

    04

    Robust Balance Sheet and Capital Allocation

    The company maintains a highly liquid and conservatively positioned balance sheet, ending the quarter with $311 million in cash. Its first debt maturity is in December 2029 ($230 million convertible notes), followed by $300 million senior notes in April 2032. Capital allocation priorities remain consistent: existing store PLO growth, de novos, disciplined M&A, and opportunistic returns to shareholders. During the quarter, EZCORP repurchased and retired 132,000 shares for $4 million under its $50 million repurchase program.

    05

    Inventory Management and Quality

    Consolidated net inventory ended at $312.5 million, up 39%, reflecting higher PLO purchases and layaways. Inventory turnover was 2.3x, compared with 2.4x a year ago. Aged general merchandise declined 132 basis points to 1.3% of total general merchandise inventory, representing just $0.7 million in the U.S. segment. Management highlighted that jewelry is generally scrapped around the 12-month mark if unsold, ensuring inventory quality.

    AI-generated summary of the company’s earnings call. Not investment advice.