What EZCORP (EZPW) Said on Its Q4 Earnings Call

Key Points

• EZCORP posted record fiscal 2026 results: Revenue rose 30% to $1.7 billion and adjusted EBITDA climbed 47% to $277 million. Fourth-quarter adjusted EBITDA increased 33%, with core pawn revenue up 24% and core pawn gross profit up 27%.
• Pawn lending and merchandise sales drove growth: Year-end pawn loans outstanding reached a record $401.5 million, up 31%. Fourth-quarter same-store pawn loans grew 15% in the U.S. and 24% in Latin America, while merchandise margins expanded in both regions.
• Expansion and integration remain priorities: EZCORP ended the year with 1,590 stores after a net addition of 230, and is integrating SMG, which it fully acquired in July. Management said integration is taking slightly longer than hoped and expects expenses to rise with store activity, openings and integration work.

EZCORP NASDAQ: EZPW reported record annual revenue and pawn loans outstanding for fiscal 2026, as growth in lending and merchandise sales helped drive a 33% increase in fourth-quarter adjusted EBITDA.

Chief Executive Officer Lachie Given said the company’s core pawn business, rather than gold scrapping, drove the quarter’s earnings growth. Core pawn revenue, which excludes scrap, rose 24%, while core pawn gross profit increased 27%.

“The demand for loans is exceptionally strong,” Given said, pointing to three consecutive quarters of 13% same-store pawn loan growth in the U.S. He said energy costs, gasoline prices, inflation and interest rates were putting pressure on customers.

Fourth-quarter and full-year results

Fourth-quarter revenue rose 31% to $439.8 million, while adjusted EBITDA increased to $64 million. Adjusted diluted earnings per share rose 23% to $0.43. Chief Financial Officer Tim Jugmans said earnings per share grew more slowly than EBITDA in part because net interest expense increased and depreciation and amortization rose with the larger store base.

Pawn loans outstanding ended the year at a record $401.5 million, up 31%. Pawn service charges rose 27% to $160.2 million, while merchandise sales increased 23% to $216.3 million. Merchandise margin expanded to 37% from 35.7% a year earlier.

For the full year, revenue rose 30% to $1.7 billion and adjusted EBITDA grew 47% to $277 million. Adjusted net income attributable to EZCORP increased 49% to $161.7 million, while adjusted diluted earnings per share rose 43% to $2.02. On a GAAP basis, diluted earnings per share increased 46% to $2.07.

Results were generally presented on an adjusted basis to remove the effects of foreign currency fluctuations and other discrete items, unless otherwise noted.

Growth across pawn segments

In the U.S., fourth-quarter revenue rose 14% to $272.1 million and segment EBITDA increased 28% to $73.2 million. Pawn loans outstanding grew 15% to $269.4 million, supported by higher average loan sizes. Merchandise margin expanded to 39%, and store expenses rose 1%.

Latin American results were presented on a constant-currency basis unless otherwise stated. Revenue rose 28% to $125.4 million, while segment EBITDA increased 44% to $26.3 million. Same-store pawn loans outstanding grew 24%, and merchandise margin expanded to 35% from 31.5%.

Jugmans said average loan sizes reflect customers’ need for cash and are likely to continue rising as living costs remain a constraint. He noted that larger loans can carry lower monthly rates in markets such as Texas, potentially compressing pawn loan yields.

EZCORP added a net 230 stores during fiscal 2026, ending the year with 1,590 across 15 countries. The additions included 190 acquired stores and 48 newly opened locations, offset by eight consolidations or closures.

Integration and expansion plans

The company said it has owned 100% of SMG since July. SMG contributed $42.3 million in fourth-quarter revenue and $5.4 million in segment EBITDA before related corporate costs. EZCORP is moving the business onto its systems and introducing its operating practices.

Asked about the integration, Given said the initial work was taking slightly longer than hoped, though he described the delay as minor. He said the priority this year is integration, with growth to follow in the subsequent year.

Given also said newly opened stores were performing ahead of modeled expectations. Jugmans said hiring and training people to run additional locations was a key constraint on accelerating the opening program.

On technology, Given said the first stage of EZCORP’s new point-of-sale system had been completed and would be rolled out over the next nine months. The company aims to speed transactions, make the system easier for store employees to use and reduce paperwork through digital receipts and contracts where available.

Scrap margins and outlook

Scrap sales rose to $63.2 million in the fourth quarter from $34.3 million a year earlier, but the scrap gross margin declined to 19% from 29%. Scrap gross profit increased to $12.1 million from $10.1 million.

For the full year, scrap gross profit rose to $71 million from $26.3 million, benefiting from higher gold prices. Jugmans said that if gold remains around current levels, the company expects scrap margins to normalize at approximately 15%.

EZCORP generated $186 million in operating cash flow during the year and deployed $191 million on acquisitions, including retiring SMG third-party debt and acquiring remaining minority interests. It ended the year with $295 million in unrestricted cash and $530 million in debt at par.

Looking ahead, Jugmans said expenses are expected to grow with store activity, new openings and integration work, while Latin American labor costs are also expected to rise. Given said the company wants to fill U.S. store vacancies as customer activity increases, though technology investments have helped reduce administrative work.

About EZCORP (NASDAQ:EZPW)

EZCORP, Inc. operates pawnshops that provide short-term loans secured by customers' personal property and sell pre-owned merchandise. Its stores offer customers access to pawn loans and a way to buy or sell goods. Products commonly include jewelry, electronics, tools and musical instruments. The company operates under brands including EZPAWN and serves customers in the United States and parts of Latin America. Founded in 1989, EZCORP is headquartered in Austin, Texas. Its business focuses on pawn lending and the retail sale of secondhand goods.

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