EZCORP Q3 Earnings Top Estimates on Higher Revenues, Expenses Rise Y/Y

Results include certain items. After considering those, the company’s net income attributable to common shareholders (GAAP basis) was $38.2 million compared with $26.5 million in the year-ago quarter.

EZPW’s Revenues & Expenses Rise Y/Y

Total quarterly revenues were $418.7 million, rising 34.7% year over year. The top line surpassed the Zacks Consensus Estimate of $405 million.

Total operating expenses were $191.4 million, up 29.6% from the previous-year quarter. Store expenses increased 30.3% to $147.7 million due to higher labor costs, including minimum-wage increases in Latin America. General and administrative expenses rose 23.5% to $34 million due to labor costs, higher incentive compensation and expenses associated with SMG.

EZPW’s Segmental Performance

U.S. Pawn: Total revenues were $251.2 million, up 14.2% year over year. Pawn loans outstanding increased 15% to $254.5 million, while segment contribution rose 24.4% to $61.6 million.

Pawn service charges increased 13.4% to $95.2 million. Merchandise sales rose 5.8% to $118.8 million, while jewelry scrap sales increased 56.8% to $37.2 million.

Latin America Pawn: Total revenues totaled $124.4 million, up 36.7% year over year. Pawn loans outstanding increased 40% to $98.9 million. On a constant-currency basis, the metric increased 33%.

Pawn service charges rose 36.7% year over year to $42.9 million, while merchandise sales increased 30.9% to $73.8 million. Jewelry scrap sales surged 138.2% to $7.7 million.

Segment contribution increased 56.1% year over year. On a constant-currency basis, segment contribution rose 43% to $22.8 million.

SMG: Total revenues were $43.1 million, comprising merchandise sales of $17.1 million, pawn service charges of $14.3 million and jewelry scrap sales of $11.7 million.

Pawn loans outstanding were $33.8 million, while net inventory totaled $28.9 million. Store expenses were $16 million and segment contribution was $5.9 million.

EZPW’s Operating Metrics

Merchandise sales gross margin increased to 38% from 36% in the prior-year quarter. Aged general merchandise declined 132 basis points to 1.3% of the total general merchandise inventory.

Jewelry scrap sales gross margin decreased to 26% from 29% in the year-ago quarter. Inventory turnover declined to 2.3 times from 2.4 times.

The company ended the quarter with 1,549 stores, up from 1,336 stores as of June 30, 2025. During the fiscal third quarter, it added 43 stores.

EZCORP Balance Sheet

As of June 30, 2026, cash and cash equivalents were $311 million compared with $472.1 million as of June 30, 2025. Long-term debt was $519.5 million compared with $517.6 million as of June 30, 2025.

EZPW’s Share Repurchase Update

During the first nine months of fiscal 2026, the company used $8 million for the purchase and retirement of treasury stock compared with $6 million in the prior-year period.

Our View on EZPW

The company’s near-term performance is expected to be supported by higher average loan balances, and continued growth in merchandise sales and pawn service charges. It also strengthened its presence in Latin America by acquiring 33 stores in Guatemala, reinforcing its leadership position in the region, while opening nine de novo stores. EZPW recently acquired the remaining minority interests in SMG, which operates 108 stores across 12 countries, enhancing its ownership and operational scale. However, rising store and administrative expenses, lower cash balances and a decline in inventory turnover remain concerning.

EZPW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Finance Stocks

Enova International, Inc. ENVA reported second-quarter 2026 adjusted earnings per share of $4.31, which increased from $3.23 in the prior-year quarter. The metric surpassed the Zacks Consensus Estimate of $3.99.

ENVA results were aided by increased revenues and improving credit quality. However, an increase in expenses was a headwind. 

Capital One Financial’s COF second-quarter 2026 adjusted earnings of $5.81 per share significantly outpaced the Zacks Consensus Estimate of $4.85. The bottom line increased from $5.48 in the prior-year quarter.

Results benefited from a rise in net interest income and non-interest income, along with a substantial decline in provisions. Loan growth and an improvement in the net interest margin were other positives. However, higher expenses and a sequential decline in deposits were undermining factors for COF.

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