We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EZCORP Q3 Earnings Top Estimates on Higher Revenues, Expenses Rise Y/Y
Read MoreHide Full Article
Key Takeaways
EZCORP beat Q3 EPS and revenue estimates on growth in pawn service charges and merchandise sales.
EZPW posted strong U.S. and Latin America pawn growth, with higher loans and segment contribution.
EZPW expanded to 1,549 stores, adding locations and fully acquiring the remaining minority interests in SMG.
EZCORP, Inc. (EZPW - Free Report) reported third-quarter fiscal 2026 (ended June 30) adjusted earnings per share (EPS) of 47 cents, beating the Zacks Consensus Estimate of 39 cents. The metric increased from earnings of 32 cents in the prior-year quarter.
Results were aided by growth in pawn service charges, merchandise sales and jewelry scrap sales. However, an increase in expenses was a headwind.
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.
Enova International, Inc. (ENVA - Free Report) 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 - Free Report) 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.
View the Zacks #1 Rank List
Image: Bigstock
EZCORP Q3 Earnings Top Estimates on Higher Revenues, Expenses Rise Y/Y
Key Takeaways
EZCORP, Inc. (EZPW - Free Report) reported third-quarter fiscal 2026 (ended June 30) adjusted earnings per share (EPS) of 47 cents, beating the Zacks Consensus Estimate of 39 cents. The metric increased from earnings of 32 cents in the prior-year quarter.
Results were aided by growth in pawn service charges, merchandise sales and jewelry scrap sales. However, an increase in expenses was a headwind.
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.
EZCORP, Inc. Price, Consensus and EPS Surprise
EZCORP, Inc. price-consensus-eps-surprise-chart | EZCORP, Inc. Quote
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 - Free Report) 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 - Free Report) 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.