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EZCORP's core pawn revenue rose 24%, while core pawn gross profit increased 28% in fiscal Q3.
Latin America PLO climbed 33% in constant currency, with core pawn gross profit up 31%.
EZPW now owns 100% of SMG, while its acquisition pipeline remains particularly robust in Latin America.
EZCORP, Inc. (EZPW - Free Report) used its fiscal third-quarter 2026 earnings call to emphasize that core pawn activity, rather than elevated gold scrap economics, drove most of the quarter’s earnings growth. Management pointed to record lending, stronger merchandise margins and broad-based momentum across geographies.
The earnings call also focused on Latin America expansion, the full acquisition of SMG and a still-active M&A pipeline as EZCORP enters the fiscal fourth quarter.
EZPW Keeps Core Pawn at Center Stage
Chief executive officer Lachie Given said that core pawn revenues increased 24%, core pawn gross profit rose 28% and same-store core pawn gross profit increased 13%.
Chief financial officer Tim Jugmans said that adjusted EBITDA rose 48% to $65.6 million, while adjusted earnings per share (EPS) increased 47% to $0.47. He said same-store EBITDA, excluding scrap, was the largest contributor to year-over-year EBITDA growth.
Adjusted EPS of $0.47 surpassed the Zacks Consensus Estimate of $0.39. The company reported revenues of $418.7 million, which topped the consensus estimate of $405 million.
Given called Latin America a standout, citing strong lending and operating execution. On a constant-currency basis, pawn loans outstanding (PLO) increased 33%, core pawn gross profit rose 31%, and segment EBITDA advanced 40%.
Jugmans said that Latin America merchandise margin expanded 490 basis points to 36%, while same-store merchandise sales increased 11%. Jewelry now represents 49% of PLO in the region.
A Stephens analyst asked what was behind the PLO growth. Given attributed much of the improvement to better jewelry lending, training and leadership, while also acknowledging supportive customer demand conditions.
EZPW Frames Gold as a Scrap Issue
Management repeatedly separated underlying pawn demand from movements in gold prices. Jugmans said that EZCORP uses a rolling view of gold prices when setting loans rather than reacting to daily spikes.
In Q&A, a Canaccord Genuity analyst pressed management on whether higher gold values were inflating loan sizes. Jugmans said that many customers borrow only what they need and often take less than the maximum offered.
Management said that gold has a much larger effect on scrap economics. Jugmans expects scrap margin to normalize toward its historical 15% to 20% range if gold prices remain relatively stable.
EZCORP Sees More Runway in SMG
Given said that EZCORP now owns 100% of SMG after buying the remaining shares shortly after quarter-end. SMG ended the quarter with 108 stores across 12 countries.
Jugmans reported SMG PLO of $33.8 million and quarterly revenues of $43.1 million. Core pawn revenues totaled $31.4 million, while core pawn gross profit was $19.7 million.
A Canaccord Genuity analyst asked about integration. Given said that the first year will focus on moving SMG onto EZCORP’s point-of-sale and Workday systems, supplying more capital and aligning operating practices and culture.
EZPW Maintains an Active Expansion Pipeline
Given said that the acquisition pipeline remains particularly robust in Latin America, where larger independent pawn chains remain potential targets. In the United States, management expects smaller, targeted acquisitions.
EZCORP also added 33 stores in Guatemala and opened nine de novo stores across Latin America during the quarter. He said that the new stores have been performing above expectations.
Jugmans reiterated capital allocation priorities around PLO growth, de novos, disciplined M&A and opportunistic shareholder returns while maintaining a conservative balance sheet.
EZCORP Heads Into Q4 Focused on Execution
Management’s fiscal fourth-quarter priorities remain growing PLO, improving inventory efficiency, integrating recent acquisitions, building new stores and controlling expenses.
Jugmans also flagged a seasonal PLO step-down in Latin America tied to July bonus payments and further scrap-margin normalization, while Given kept the emphasis on core pawn trends as the cleaner measure of underlying performance.
The strong Value and VGM grades and solid Growth grade are favorable Style Score signals, while the Momentum grade is more moderate. In the Zacks framework, a Rank #3 is less favorable than a #1 or #2, and the Rank can change as earnings estimates are revised after the just-reported results.
View the Zacks #1 Rank List
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EZCORP Q3 Earnings Call Highlights Core Pawn Strength
Key Takeaways
EZCORP, Inc. (EZPW - Free Report) used its fiscal third-quarter 2026 earnings call to emphasize that core pawn activity, rather than elevated gold scrap economics, drove most of the quarter’s earnings growth. Management pointed to record lending, stronger merchandise margins and broad-based momentum across geographies.
The earnings call also focused on Latin America expansion, the full acquisition of SMG and a still-active M&A pipeline as EZCORP enters the fiscal fourth quarter.
EZPW Keeps Core Pawn at Center Stage
Chief executive officer Lachie Given said that core pawn revenues increased 24%, core pawn gross profit rose 28% and same-store core pawn gross profit increased 13%.
Chief financial officer Tim Jugmans said that adjusted EBITDA rose 48% to $65.6 million, while adjusted earnings per share (EPS) increased 47% to $0.47. He said same-store EBITDA, excluding scrap, was the largest contributor to year-over-year EBITDA growth.
Adjusted EPS of $0.47 surpassed the Zacks Consensus Estimate of $0.39. The company reported revenues of $418.7 million, which topped the consensus estimate of $405 million.
EZCORP, Inc. Price, Consensus and EPS Surprise
EZCORP, Inc. price-consensus-eps-surprise-chart | EZCORP, Inc. Quote
EZCORP Builds on Latin America Momentum
Given called Latin America a standout, citing strong lending and operating execution. On a constant-currency basis, pawn loans outstanding (PLO) increased 33%, core pawn gross profit rose 31%, and segment EBITDA advanced 40%.
Jugmans said that Latin America merchandise margin expanded 490 basis points to 36%, while same-store merchandise sales increased 11%. Jewelry now represents 49% of PLO in the region.
A Stephens analyst asked what was behind the PLO growth. Given attributed much of the improvement to better jewelry lending, training and leadership, while also acknowledging supportive customer demand conditions.
EZPW Frames Gold as a Scrap Issue
Management repeatedly separated underlying pawn demand from movements in gold prices. Jugmans said that EZCORP uses a rolling view of gold prices when setting loans rather than reacting to daily spikes.
In Q&A, a Canaccord Genuity analyst pressed management on whether higher gold values were inflating loan sizes. Jugmans said that many customers borrow only what they need and often take less than the maximum offered.
Management said that gold has a much larger effect on scrap economics. Jugmans expects scrap margin to normalize toward its historical 15% to 20% range if gold prices remain relatively stable.
EZCORP Sees More Runway in SMG
Given said that EZCORP now owns 100% of SMG after buying the remaining shares shortly after quarter-end. SMG ended the quarter with 108 stores across 12 countries.
Jugmans reported SMG PLO of $33.8 million and quarterly revenues of $43.1 million. Core pawn revenues totaled $31.4 million, while core pawn gross profit was $19.7 million.
A Canaccord Genuity analyst asked about integration. Given said that the first year will focus on moving SMG onto EZCORP’s point-of-sale and Workday systems, supplying more capital and aligning operating practices and culture.
EZPW Maintains an Active Expansion Pipeline
Given said that the acquisition pipeline remains particularly robust in Latin America, where larger independent pawn chains remain potential targets. In the United States, management expects smaller, targeted acquisitions.
EZCORP also added 33 stores in Guatemala and opened nine de novo stores across Latin America during the quarter. He said that the new stores have been performing above expectations.
Jugmans reiterated capital allocation priorities around PLO growth, de novos, disciplined M&A and opportunistic shareholder returns while maintaining a conservative balance sheet.
EZCORP Heads Into Q4 Focused on Execution
Management’s fiscal fourth-quarter priorities remain growing PLO, improving inventory efficiency, integrating recent acquisitions, building new stores and controlling expenses.
Jugmans also flagged a seasonal PLO step-down in Latin America tied to July bonus payments and further scrap-margin normalization, while Given kept the emphasis on core pawn trends as the cleaner measure of underlying performance.
Zacks Signals for EZPW
EZPW currently carries a Zacks Rank #3 (Hold). Its Value Score is A, Growth Score is B, Momentum Score is C and VGM Score is A. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The strong Value and VGM grades and solid Growth grade are favorable Style Score signals, while the Momentum grade is more moderate. In the Zacks framework, a Rank #3 is less favorable than a #1 or #2, and the Rank can change as earnings estimates are revised after the just-reported results.