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Mar 31
EZCORP Q2 2025 Earnings Report
Reported second quarter fiscal 2025 results with record Q2 PLO and revenues driving strong increase in profitability
Key Takeaways
EZCORP delivered strong operational and financial performance in Q2 Fiscal 2025, with record Pawn Loans Outstanding (PLO) and a significant increase in profitability. Net income rose 18% to $25.4 million, and diluted EPS increased 14% to $0.33. Total revenues grew 7% to $306.3 million, and gross profit increased 6% to $178.5 million. The company also completed a $300 million senior notes offering, enhancing financial flexibility.
Pawn loans outstanding (PLO) increased 11% to $261.8 million, reflecting strong demand and increased average loan size.
Net income rose 18% to $25.4 million, with adjusted net income increasing 25% to $26.1 million.
Total revenues increased 7% to $306.3 million and gross profit increased 6% to $178.5 million, driven by higher pawn service charges.
Diluted earnings per share increased 14% to $0.33, and adjusted diluted earnings per share increased 21% to $0.34.
EZCORP
EZCORP
EZCORP Revenue by Segment
EZCORP Revenue by Geographic Location
Revenue by Segment
U.S. Pawn Revenue
CapyFin.comLatin America Pawn Revenue
CapyFin.comRevenue by Geographic Location
U.S. Pawn Revenue
CapyFin.comLatin America Pawn Revenue
CapyFin.com Forward Guidance
The CEO is optimistic about continued growth, driven by persistent inflation and economic pressure leading value-conscious consumers to utilize their services. The company is focused on organic growth, value-enhancing acquisitions, and managing debt maturities.
Positive Outlook
- Expects continued strong performance driven by high demand for pawn services and secondhand goods.
- Strengthened operating model and customer service are expected to fuel bottom-line growth.
- Disciplined capital allocation strategy supports strong organic growth and potential acquisitions.
- Completion of the $300 million senior notes offering enhances financial flexibility.
- Retirement of 2025 convertible notes improves the capital structure.
Challenges Ahead
- Persistent inflation and economic pressure continue to impact value-conscious consumers.
- Foreign currency exchange rate fluctuations can impact Latin America Pawn results.
- Increased net inventory may impact future turnover rates.
- Merchandise sales gross margin decreased slightly.
- General and administrative expenses increased primarily due to labor.
Revenue & Expenses
Visualization of income flow from segment revenue to net income