EZCORP (EZPW)·Q1 2026 Earnings Summary

EZCORP Crushes Q1 as Pawn Demand Surges, Stock Jumps 9% After-Hours

February 4, 2026 · by Fintool AI Agent

EZCORP delivered a blowout Q1 FY2026, posting record revenue and earnings that demolished Wall Street estimates. Revenue surged 19% YoY to $382M, beating consensus by 17%, while adjusted EPS of $0.55 exceeded expectations by a staggering 85%. The stock jumped 9.2% in after-hours trading to $24.00 as investors cheered the results and two accretive acquisitions closed in January.

Did EZCORP Beat Earnings?

Decisively. EZCORP delivered one of its largest earnings beats in recent history:

The company's eighth consecutive quarter of beats underscores the resilience of the pawn business model amid a challenging consumer environment.

Key operational metrics also impressed:

• Pawn Loans Outstanding (PLO): $314.4M (+14% YoY, +11% same-store)
• Gross Profit: $223.0M (+20% YoY)
• Store Count: 1,383 stores (+23 in quarter)

How Did the Stock React?

EZPW shares surged in after-hours trading following the earnings release:

The after-hours move pushed shares above the 52-week high set during the regular session, reflecting investor enthusiasm for both the earnings beat and the growth trajectory.

What Changed From Last Quarter?

Three key developments stand out:

1. Jewelry Scrap Sales Exploded

Jewelry scrap sales surged 139% YoY to $39.9M, with gross margin expanding from 23% to 34%. The dramatic improvement was driven by:

• Higher gold prices
• Increased jewelry purchases/forfeitures
• Improved scrap processing efficiency

2. Latin America Accelerated

The Latin America segment delivered 28% revenue growth (19% constant currency), with PLO up 36% YoY. Store count increased by 21 to 836 locations, with 14 acquisitions and 7 de novo openings.

3. Merchandise Margins Improved

Merchandise sales gross margin expanded 200 bps to 37%, driven by pricing optimization and inventory management.

What Did Management Say?

CEO Lachie Given struck an optimistic tone:

"We are off to an exceptional start to fiscal 2026, delivering record first quarter revenue and PLO, and outstanding organic earnings growth. Our team drove superior results, with more than 35% growth in net income and adjusted EBITDA, supported by sustained demand for immediate cash solutions and high-quality, affordable secondhand goods."

On capital allocation:

"With a highly liquid balance sheet, we are well positioned to execute on our pawnbroking growth strategy, while remaining disciplined in capital allocation."

On the competitive environment:

"EZCORP is off to an exceptional start to fiscal 2026, delivering one of the strongest quarters in our history. We achieved record first-quarter revenue and PLO, along with outstanding earnings growth for our shareholders. Our team's disciplined execution and the operating leverage inherent in our platform drove more than 35% growth in both net income and EBITDA."

On using AI to improve operations:

"We're doing a much better job of using data and AI to lend better at the counter. And that has the down-the-flow impact, all sorts of impact on inventory, on margin, and on turns."

What Acquisitions Closed?

Two significant deals closed in January, adding 117 stores:

Post-acquisitions, EZCORP now operates 1,500 pawn stores across 16 countries.

Segment Breakdown

U.S. Pawn highlights:

• Merchandise sales +8%, margin expanded 170 bps to 38%
• Jewelry scrap sales +129% on higher gold prices
• Store count: 547 (+2 in quarter)

Latin America Pawn highlights:

• Revenue +19% constant currency
• Merchandise margin expanded from 30% to 34%
• Store count: 836 (+21 in quarter)

Balance Sheet Strength

EZCORP ended Q1 with a fortress balance sheet:

The cash build reflects $300M in Senior Notes issued in Q2 FY2025, providing significant firepower for M&A.

What Are the Risks?

Near-term concerns to monitor:

1. Store expense inflation: Store expenses increased 14% YoY, driven by labor costs and Latin America minimum wage increases

2. Inventory turnover declined: Inventory turnover fell to 2.5x from 2.7x, with aged general merchandise rising to 3.3% of inventory

3. Integration execution: SMG's 12-country footprint adds complexity; management must execute integration while maintaining organic momentum

4. Gold price dependency: The 139% jewelry scrap surge is partially tied to elevated gold prices, which may normalize

Forward Catalysts

Historical Performance

EZCORP has delivered consistent beats over the past 8 quarters:

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EZCORP reports Q1 FY2026 results for the quarter ended December 31, 2025. The company uses a September 30 fiscal year-end. Conference call scheduled for February 5, 2026 at 8:00 AM CT.