EZCORP (NASDAQ:EZPW) management said the company delivered one of the strongest quarters in its history as favorable pawn demand, strong retail execution, and elevated gold prices helped drive record first-quarter revenue and higher earnings in fiscal 2026. On the company’s earnings call, Chief Executive Officer Lachlan Given and Chief Financial Officer Tim Jugmans also discussed two acquisitions completed after quarter-end that expanded EZCORP’s footprint to 1,500 stores across 16 countries.
Record revenue and earnings growth
Jugmans said total revenue reached a record $374.5 million, up 17% on an adjusted basis, with contributions from pawn service charges (PSC), merchandise sales, and a “significant increase in scrap” tied to higher gold prices. Adjusted EBITDA rose 36% to $70.3 million, and EBITDA margin expanded 260 basis points to 19%. Diluted EPS improved 34% to $0.55.
On the retail side, merchandise sales increased 10% to $205.2 million with same-store sales up 7%. Merchandise margin expanded 230 basis points to 37%, which management attributed to improved pricing, execution, and product mix. Scrap margins increased to 34% from 23%, reflecting the gold price environment.
Gross profit rose 18% to $218.9 million. G&A increased 9%, primarily due to higher incentive compensation and professional fees related to acquisition activity. Jugmans also noted a presentation change in how certain administrative expenses are allocated: these costs are now reported within corporate G&A rather than allocated to segment-level store expenses, with prior periods recast and no impact to operating expenses or net income.
U.S. segment: higher loan sizes, strong margins, and elevated scrap
In the U.S., EZCORP ended the quarter with 547 stores across 19 states. Revenue increased 16% to $269.8 million, with Jugmans estimating about half of the improvement came from higher scrap sales supported by elevated gold prices and increased jewelry purchasing activity.
U.S. PLO grew 9% to $239.9 million, including 8% same-store growth. Average loan size rose 12% to $231, largely due to higher jewelry prices. Jewelry represented 68% of U.S. PLO, up 310 basis points year over year. PSC increased 8% to $95.2 million.
Merchandise sales climbed 8% with same-store sales also up 7%, and merchandise margin improved 170 basis points to 38%. Jugmans said jewelry scrap gross profit rose $8.6 million, reflecting the company’s ability to monetize inventory in the current gold price environment.
Inventory increased 29% to $190.9 million, driven by PLO expansion and higher merchandise purchases. Turnover declined to 2.5 times, which management attributed to a higher jewelry mix and continued growth of the company’s Layaway offering. Given and Jugmans emphasized that jewelry that does not sell through retail can be monetized through scrap, providing “a natural floor on inventory risk.” Aged general merchandise was described as manageable at 3.1% of total GM inventory, or $1.7 million.
U.S. segment EBITDA improved 28% to $73.5 million, with margin expanding 260 basis points to 27%. Same-store expenses were up 6%.
Latin America: store growth, improving jewelry mix, and wage pressure in Mexico
In Latin America, EZCORP ended the quarter with 836 stores across four countries. During the period, the company opened seven de novo stores (five in Guatemala, one in Mexico, and one in Honduras) and acquired 14 stores in Mexico.
Revenue increased 19% to $104.7 million, with Jugmans saying about half of the improvement came from merchandise sales. PLO expanded 23% to $67.4 million, including 12% same-store growth. Average loan size increased 16% to $102.9 on a constant currency basis, largely reflecting higher jewelry prices. Jewelry represented 47% of Latin America PLO, up 650 basis points.
Merchandise sales increased 15% with same-store sales up 8%. Merchandise margin improved 380 basis points to 34%. Inventory increased 10% to $56.1 million, while inventory turnover improved to 3.1 times from 3.0 times. Aged general merchandise increased to 3.6% of total GM inventory, or $1.2 million, and management said it is applying best practices to reduce aged GM.
Latin America segment EBITDA rose 23% to $21.4 million, and margin expanded 70 basis points to 20%. Management noted expense pressure tied to labor costs, including minimum wage increases. Given highlighted that Mexico’s minimum wage increase was a key factor, and Jugmans specified Mexico’s minimum wage increased by 13% on January 1.
Acquisitions expand footprint to 1,500 stores; integration in focus
Subsequent to quarter-end, EZCORP completed two acquisitions that management said expand scale and geographic reach:
- Founders One / Simple Management Group (SMG): Closed January 2. SMG operates 105 stores across 12 countries, including Florida and Puerto Rico in the U.S., as well as Costa Rica, Panama, and markets across the Caribbean. EZCORP previously invested in Founders as a preferred equity holder in October 2021. Jugmans said the transaction was funded through conversion of preferred equity investments and notes receivable plus about $9 million in cash, for total consideration of about $64 million, resulting in approximately a 75% economic interest in SMG. The company will consolidate 100% of SMG’s financial results, with net income allocated to non-controlling interests below the net income line.
- El Bufalo Pawn: Closed January 12. Added 12 stores in Texas for $27.5 million.
Given said the SMG acquisition expands EZCORP’s pawn footprint into 11 new countries and broadens the company’s total addressable market. He also noted that Puerto Rico stores offer auto pawn and auto title loans, which he described as a “higher-ticket, secured lending category” that complements traditional pawn. In Q&A, Given said Puerto Rico represents a significant opportunity and that the SMG team has extensive experience building de novo stores.
Management reiterated its emphasis on disciplined capital deployment and said the immediate priority is integrating the acquired businesses. Given said the company expects to invest in the control environment (including finance, legal, and IT) as a private business transitions into a public company context, while aiming to leverage existing EZCORP teams to avoid excessive overhead.
Outlook: tax season, scrap tailwinds, and expense cadence
Jugmans said the company expects second-quarter momentum to remain favorable, with tax refund season typically increasing loan redemption and retail activity. He added that the current gold price environment continues to support elevated scrap contributions, while noting the company does not predict gold prices. Jugmans reiterated that once gold stabilizes, the company would expect approximately two quarters of elevated scrap gross profit margin before margins normalize toward historical levels.
On expenses, management said it remains disciplined but expects sequential increases through the year as EZCORP onboards recent acquisitions and scales operational best practices. In Q&A, Given said the M&A pipeline remains active, particularly in Mexico and other Latin American countries, while opportunities for larger multi-store acquisitions in the U.S. are becoming less common.
EZCORP ended the quarter with $465.9 million in unrestricted cash. Management said that liquidity supports organic expansion, potential acquisitions, and the ability to “thoughtfully return capital to shareholders over time,” while maintaining what Given described as a fiscally conservative balance sheet.
About EZCORP (NASDAQ:EZPW)
EZCORP, Inc is a specialty consumer finance company that provides pawn loans and retail merchandise programs primarily through its EZPAWN and Cash Converters brands. The company offers collateral-based loans secured principally by jewelry, electronics, musical instruments and other personal items, alongside check-cashing, money-transfer and bill-payment services. In addition to its pawn lending operations, EZCORP acquires previously pawned or consumer merchandise for resale through its “Sell-It-Now” platform and retail storefronts.
Founded in 1989 and headquartered in San Antonio, Texas, EZCORP operates in two principal geographic markets: the United States and Mexico.
