EZCORP Q3 Earnings Call Highlights

EZCORP (NASDAQ:EZPW) reported third-quarter fiscal 2026 results marked by higher pawn-loan balances, expanding merchandise margins and contributions from precocious acquired operations. The institution said adjusted EBITDA accrued 48% twelvemonth implicit twelvemonth to $65.6 million, portion adjusted diluted net per stock roseate 47% to $0.47.

Total gross accrued 31% to $408.4 million, and gross nett grew 31% to $240.3 million. Adjusted EBITDA borderline expanded 190 ground points to 16%, which Chief Financial Officer Tim Jugmans attributed to merchandise-margin expansion, disbursal subject and higher scrap gross profit.

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Management emphasized that the quarter's maturation was chiefly driven by halfway pawn operations alternatively than gold-scrap activity. Core pawn revenue, which excludes scrap, roseate 24%, portion halfway pawn gross nett accrued 28%. Same-store halfway pawn gross nett grew 13%.

Pawn Loan Balances and Retail Performance

Pawn loans outstanding, oregon PLO, ended the 4th astatine a grounds $382 million, up 31% from a twelvemonth earlier. Jugmans said the summation reflected larger mean indebtedness sizes and new-store additions. Pawn work charges roseate 29% to $149.1 million, including a 13% summation successful same-store pawn work charges.

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Merchandise income accrued 21% to $203.5 million, with same-store merchandise income up 6%. Consolidated merchandise borderline expanded 190 ground points to 38%, which absorption said reflected pricing execution and inventory quality.

Net inventory totaled $312.5 cardinal astatine quarter-end, up 39%, driven by higher PLO purchases and layaways. Inventory turnover was 2.3 times, compared with 2.4 times a twelvemonth earlier. Aged wide merchandise declined 132 ground points to 1.3% of full general-merchandise inventory.

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During the call, Chief Executive Officer Lachie Given said lawsuit request for currency remains beardown crossed the company's markets. He said that portion golden is simply a large root of collateral, the underlying concern is centered connected gathering customers' short-term currency needs.

Jugmans said EZCORP uses a rolling, astir three-month presumption of golden prices erstwhile pricing loans alternatively than responding to regular marketplace movements. Management said customers often instrumentality little than the maximum indebtedness magnitude available, indicating that request is driven chiefly by currency needs alternatively than collateral values alone.