EZCORP (EZPW) investor relations material

Financial performance and growth drivers

• Achieved record quarter with adjusted EBITDA up 48% and adjusted EPS up 47%, driven by improved pricing, execution, and new store openings.

• Currently building about 40 stores per year, up from 30, with plans for further expansion next year.

• Recent acquisition of SMG adds 108 stores across 12 countries, with integration underway and expected to drive further growth.

• Same store pawn loan outstanding (PLO) and core pawn gross profit in the U.S. both growing at 13% year-over-year.

• Latin America operations are rapidly improving, with jewelry now 50% of the portfolio, up from 40% a year ago.

Customer trends and merchandise mix

• Customer base spans all income levels, with short-term cash needs as the primary driver.

• Fast-growing merchandise categories include luxury goods and sneakers, while laptops are declining.

• Loan-to-value ratios are higher for in-demand items like luxury handbags and lower for declining categories like laptops.

Regulatory environment and competitive landscape

• Regulatory environment is stable, with certain states like Texas and Las Vegas creating high barriers to entry, supporting established operators.

• Pawn lending is often exempt from consumer lending caps, with sliding scale rates that have minimal impact due to average loan sizes.

• Compliance costs favor larger operators, making it harder for small players to compete.