EZCORP, Inc. reported a significant increase in financial performance for the second quarter of fiscal 2025, with total revenues reaching $306.3 million, up 7% from $285.6 million in the same period last year. The company’s net income also rose to $25.4 million, a 18% increase compared to $21.5 million in the prior year. Basic earnings per share improved to $0.46 from $0.39, while diluted earnings per share increased to $0.33 from $0.29. The growth in revenue was primarily driven by higher pawn service charges and merchandise sales, which saw increases of 8% and 3%, respectively.
In terms of operational metrics, EZCORP's pawn loans outstanding (PLO) increased by 15% to $199.4 million, reflecting a rise in average loan size and improved operational performance. The company also reported a 9% increase in pawn service charges, attributed to the higher average PLO. Merchandise sales totaled $169.5 million, with a gross margin of 36%, slightly down from 37% in the previous year. The company’s inventory turnover decreased to 2.3 from 2.6, indicating a slower movement of inventory.
Strategically, EZCORP announced the termination of an acquisition agreement with Presta Dinero, S.A. de C.V. for the purchase of 53 pawn stores in Mexico. The company continues to focus on expanding its operations, with a total of 542 stores in the U.S. and 742 in Latin America as of March 31, 2025. The Latin America segment reported a 30% increase in segment contribution, driven by a 5% rise in pawn service charges and a 6% increase in merchandise sales.
The company’s balance sheet showed a substantial increase in cash and cash equivalents, which rose to $505.2 million from $170.5 million at the end of the previous fiscal year. This increase was largely due to net cash provided by operating activities, which surged by 72% to $62.9 million. Additionally, EZCORP issued $300 million in senior notes due 2032, which will be used to refinance existing debt and support general corporate purposes. Looking ahead, EZCORP anticipates that its cash flows from operations will be sufficient to fund ongoing operations, debt service requirements, and potential strategic investments.
About EZCORP INC
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