EZCORP beats fourth quarter expectations with record revenue and PLO
AUSTIN, Texas - EZCORP, Inc. (NASDAQ:EZPW) reported better-than-expected fourth quarter results, with adjusted earnings per share of $0.34, exceeding analyst estimates of $0.29, and revenue of $336.8 million surpassing the consensus forecast of $324.38 million.
The pawn services provider’s stock edged down 0.3% following the announcement.
The company’s net income jumped 76% to $26.7 million in the fourth quarter, while diluted earnings per share increased 62% compared to the same period last year. Total revenue rose 14% year-over-year, driven by strong pawn service charge (PSC) revenues resulting from higher average pawn loans outstanding (PLO), which increased 12% to $307.5 million.
"Fiscal 2025 was another exceptional year for EZCORP, with record full-year revenue and all-time high PLO," said Lachie Given, Chief Executive Officer. "This superior performance reflects resilient demand for immediate cash solutions and high-quality, cost-effective secondhand goods."
The company expanded its footprint by adding 24 stores during the quarter, including 17 new locations and 8 acquired stores. For the full fiscal year 2025, EZCORP opened 40 new stores and acquired 52 locations, more than doubling its combined acquisition total from the previous two fiscal years.
U.S. Pawn operations saw a 9% increase in PLO, with segment contribution rising 28% to $52.5 million. Latin America Pawn reported a 23% increase in PLO and a 17% rise in segment contribution to $12.0 million.
Merchandise sales gross margin remained consistent at 35% for the quarter, while jewelry scrap sales increased 91% with gross margin improving by 1,010 basis points to 29%, benefiting from higher gold prices and increased jewelry purchases.
The company ended the quarter with $469.5 million in cash and cash equivalents, up significantly from $170.5 million a year earlier, primarily due to the issuance of $300 million in Senior Notes due 2032 and strong cash flow from operations.
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