EZCORP Q2 Earnings Call Highlights
by Amy Steele · The Cerbat GemEZCORP (NASDAQ:EZPW) reported what executives repeatedly described as an “exceptional” fiscal second quarter of 2026, citing record revenue, an all-time high in pawn loans outstanding (PLO), and a sharp increase in profitability supported by strong customer demand, elevated scrap results tied to gold prices, and the first full quarter of contributions from Simple Management Group (SMG).
Record revenue and profit growth
Chief Executive Officer Lachie Given said the company delivered record revenue and “76% growth in adjusted EBITDA,” calling it “the largest year-over-year profit step-up in our recent history.” Given attributed the quarter’s results to “disciplined execution across all segments,” sustained demand for pawn loans, strong scrap revenue and margin, and SMG’s contribution.
Chief Financial Officer Tim Jugmans reported adjusted EBITDA rose 76% to $76.9 million, with adjusted EBITDA margin expanding 340 basis points to 18%. Diluted EPS increased 76% to $0.58. Total revenue reached a record $434.9 million, up 42% year over year.
Jugmans said the revenue increase was “broad-based,” with contributions from pawn service charges (PSC), merchandise sales, and a “significant increase in scrap gross profit resulting from elevated gold prices.” Gross profit increased 42% to $253.4 million. He added that G&A rose 38%, “primarily due to high incentive compensation expenses associated with the SMG acquisition.”
New “core pawn” metrics aim to isolate underlying performance
Management introduced new disclosures this quarter—core pawn revenue and core pawn gross profit—excluding scrap results. Given said the new metrics are intended to give investors “a clean read on underlying pawn performance.” Jugmans added the disclosures “highlight that our business is significantly improving even without the benefit of elevated gold prices.”
On a consolidated basis, Jugmans said core pawn revenue grew 24% and core pawn gross profit grew 28% on a same-store basis, while core pawn revenues and gross profit increased 9% and 12%, respectively. He also noted that excluding scrap gross profits, consolidated EBITDA grew 17%.
Scrap was a major tailwind in the quarter. Jugmans said jewelry scrap sales “nearly quadrupled year-over-year,” driven by higher gold prices and increased jewelry purchasing activity. Scrap margin expanded “significantly from 22%–38%,” according to Jugmans.
U.S. pawn: higher jewelry exposure, strong margins, and muted tax refund effect
In the U.S. pawn segment, the company ended the quarter with 559 stores across 19 states, including 12 stores added through the El Bufalo Pawn acquisition completed in January. Jugmans said U.S. segment revenue increased 27% to $282.2 million, with about two-thirds of the increase tied to higher scrap sales.
Core pawn revenue in the U.S. grew 11% to $226.7 million, and core pawn gross profit grew 13%, which Jugmans said reflected “strong lending activity and genuine merchandise margin expansion.” PLO increased 16% to $230.5 million, with same-store PLO up 13%.
Average loan size rose 16% to $240, which Jugmans said was “primarily due to higher prices on jewelry.” Jewelry represented 69% of U.S. PLO, up 460 basis points. Jugmans also highlighted that sequential PLO declined only 4%, which he called “the lowest drop we have seen in many years,” attributing the trend to “higher jewelry loans, lower-than-expected tax refunds, and a rise in gas prices in March.”
During Q&A, Canaccord Genuity analyst Brian McNamara asked about the tax refund season. Jugmans said the average refund was “slightly higher than last year,” but “lower than estimates that had been provided in the market,” and described the season as “more muted than we thought.” Given pointed to tightening credit from alternative lenders and pressure from gas prices as additional factors.
Retail performance in the U.S. also improved. Jugmans said merchandise sales rose 9% with same-store sales up 7%, and merchandise margin improved 170 basis points to 38%. Segment EBITDA rose 57% to $89.9 million, with margin expanding 540 basis points to 29%.
Latin America: core pawn-led growth, expanding merchandise margins
In Latin America, the company ended the quarter with 840 stores across four countries and opened four de novo stores (two in Guatemala, one in Mexico, and one in Honduras). Total segment revenues rose 19% to $101.4 million.
Jugmans said Latin America’s quarter was driven “by core pawn performance rather than scrap.” Core pawn revenue grew 18% to $95.6 million, and core pawn gross profit rose 25%, supported by PLO growth, new stores, and a 410 basis point expansion in merchandise margin. PLO increased 27% to $79 million, with same-store PLO up 15%.
Average loan size increased 23% to $107, “largely reflecting higher jewelry prices,” Jugmans said. Jewelry represented 48% of Latin American PLO, up 860 basis points. Merchandise sales grew 17% with same-store sales up 8%, and merchandise margin expanded 410 basis points to 34%.
Latin America segment EBITDA improved 24% to $19.6 million, with margin expanding 70 basis points to 19%, even as same-store expenses increased 19%. Jugmans noted Mexico’s January minimum wage increase of about 13% is “now flowing through our Latin American run rate.”
SMG contribution, acquisitions, and capital priorities
The quarter marked EZCORP’s first consolidated period including SMG after the deal closed Jan. 2. Jugmans said SMG contributed 89 of the 90 days in the quarter and delivered $51.3 million of revenue, including $19.1 million of jewelry scrap sales. Segment EBITDA was $9.5 million, with Jugmans noting SMG also had $3.9 million of corporate costs included in EZCORP’s G&A.
Given said SMG is “a well-run business,” but he expects EZCORP’s operational playbook to drive additional improvements, pointing to lending practices, pricing and loan-to-value tools, sales programs, and store-level people initiatives including “compensation, recognition, career paths.”
Beyond SMG, the company completed the previously announced acquisition of El Bufalo Pawn on Jan. 12, adding 12 stores in Texas. Given said integration is progressing well. EZCORP added 123 stores during the quarter and ended the period with 1,506 stores across 16 countries. After quarter end, the company acquired 32 additional stores in Guatemala, further expanding its footprint there.
Jugmans said EZCORP ended the quarter with $354.2 million in unrestricted cash and “no short or medium-term debt maturities.” Under its $50 million share repurchase program authorized in November 2025, the company repurchased about 156,000 shares for $4 million during the quarter.
Looking ahead, Jugmans said the company is not predicting gold prices, but noted gold is “only marginally up since the beginning of calendar 2026.” If gold stabilizes, he said management would expect scrap and scrap gross profit margin “to begin to normalize towards historical levels next quarter.” Given and Jugmans also emphasized continued focus on growing earning assets, integrating acquisitions, maintaining disciplined expenses, and pursuing M&A and de novo expansion—particularly in Latin America—while keeping a conservative balance sheet.
About EZCORP (NASDAQ:EZPW)
EZCORP, Inc is a specialty consumer finance company that provides pawn loans and retail merchandise programs primarily through its EZPAWN and Cash Converters brands. The company offers collateral-based loans secured principally by jewelry, electronics, musical instruments and other personal items, alongside check-cashing, money-transfer and bill-payment services. In addition to its pawn lending operations, EZCORP acquires previously pawned or consumer merchandise for resale through its “Sell-It-Now” platform and retail storefronts.
Founded in 1989 and headquartered in San Antonio, Texas, EZCORP operates in two principal geographic markets: the United States and Mexico.