EZCORP (EZPW) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 FY25 revenue of $329.7 million, up 10% year-over-year, with PLO reaching $282.9 million, up 16%, driven by strong consumer demand and increased average loan size.

• EBITDA increased 12% to $53 million, with EBITDA margin improving by 35 bps to 16.1%; diluted EPS rose 17% to $0.42.

• Opened four new stores in Latin America, expanding to 1,283 total locations globally.

• Strategic initiatives, including EZ+ Rewards and expanded layaway and Buy Now, Pay Later programs, supported operational strength and customer engagement.

• Strong demand for pawn loans and pre-owned goods continues to drive growth in both U.S. and Latin America.

Financial highlights

• Q1 revenues and gross profit grew 10% year-over-year; merchandise sales up 8% to $192.9 million; same-store sales up 5%.

• PSC rose 13% to $119.9 million, driven by same-store PLO growth.

• Adjusted net income was $32.6 million, up 14% year-over-year; diluted EPS increased to $0.42.

• Cash balance at quarter-end was $174.5 million, up from $170.5 million in Q4 FY24.

• U.S. revenue reached a record $232.2 million, up 7%; Latin America revenue up 18% to $97.5 million.

Outlook and guidance

• Margins expected to remain at the low end of the 35%-38% target range.

• Focus remains on organic growth, higher PLO, PSC, and merchandise sales, with continued investment in team, technology, and store network.

• Ongoing store expansion in Latin America and enhancements to U.S. layaway and rewards programs.

• M&A pipeline remains strong, with ongoing expansion in existing and new markets.

• Management expects cash flows from operations and cash on hand to be adequate for ongoing operations, debt service, stock repurchases, and planned growth.