EZCORP Reports 6.5% Revenue Growth to $320.2 Million for Q4 2024

EZCORP, Inc. reported a solid financial performance for the three months ended December 31, 2024, with total revenues reaching $320.2 million, a 6.5% increase from $300.0 million in the same period last year. The company's net income also rose to $31.0 million, up 9% from $28.5 million in the prior year, resulting in basic earnings per share of $0.57 compared to $0.52. The growth in revenue was primarily driven by increases in merchandise sales and pawn service charges, which rose to $186.3 million and $117.1 million, respectively.

The financial results reflect significant operational improvements compared to the previous fiscal period. Pawn service charges increased by 11%, attributed to a higher average pawn loan balance, which reached $220.2 million, marking a 15% increase. Merchandise sales also saw a 3% rise, while gross profit improved to $185.4 million, up from $172.6 million a year earlier. Operating expenses increased to $143.5 million, primarily due to higher store expenses driven by labor costs, but the operating income still grew to $41.9 million from $37.1 million.

Strategically, EZCORP is pursuing growth through acquisitions and expansion. The company announced an agreement to acquire 53 pawn stores in Mexico from Presta Dinero, S.A. de C.V., although the transaction has not yet closed. The company also opened four new locations in Latin America, bringing the total store count to 741 in that region. The U.S. Pawn segment maintained its store count at 542, reflecting a focus on operational excellence and customer engagement.

Operationally, EZCORP reported a 17% increase in net earning assets in the Latin America Pawn segment, with pawn service charges rising 7% in that region. The company’s inventory turnover decreased slightly to 2.5 times, indicating a need for improved inventory management. The total employee headcount remained stable, supporting the company's operational needs as it continues to enhance its service offerings.

Looking ahead, EZCORP anticipates continued growth driven by its strategic initiatives and operational improvements. The company expects to leverage its strong cash position, with cash and cash equivalents totaling $174.5 million as of December 31, 2024, to fund ongoing operations and potential acquisitions. Management remains optimistic about the demand for pawn services, particularly in the U.S. and Latin America, and is focused on optimizing its balance of pawn loans to enhance profitability.