EZCORP (EZPW) Q3 2026 earnings summary

Executive summary

• Delivered one of the strongest quarters in company history, with significant growth in core pawn operations and robust performance across all regions.

• Achieved consolidated net income of $38.5 million for the quarter, up 45% year-over-year, and adjusted EBITDA rose 48% to $65.6 million.

• Total revenues for the quarter reached $418.7 million, a 35% increase year-over-year, driven by higher merchandise sales, new store openings, and increased pawn service charges and scrap sales.

• Diluted EPS increased 47% to $0.47; adjusted EPS up 47% to $0.47.

• Completed the acquisition of Founders One, LLC and SMG, expanding the store base and geographic footprint.

Financial highlights

• Gross profit for the quarter rose 44% to $246.2 million; merchandise sales were $203.5 million, up 21%, with a margin of 38%.

• Pawn loans outstanding (PLO) reached a record $387.2 million, up 33% year-over-year.

• Pawn service charges (PSC) rose 32% due to higher average PLO and more stores; same-store PSC up 13%.

• Gross margin on merchandise sales improved to 39.8% in U.S. Pawn and 35.6% in Latin America Pawn.

• Adjusted EBITDA margin expanded 190 basis points to 16%.

Outlook and guidance

• Management expects continued strong performance, citing robust operating and financial position entering the final quarter.

• Scrap margin expected to normalize to historical levels of 15%-20% if gold prices remain stable.

• Latin America typically sees higher redemptions and a seasonal step down in PLO in Q4 due to mid-year bonus payments.

• Ongoing focus on growing PLO, improving inventory efficiency, building de novos, integrating acquisitions, and managing expenses.

• Significant growth opportunities anticipated from full integration of SMG and expansion in Latin America.