Executive Summary

Solid quarter: revenue grew 7.1% to $1.32B and EPS rose to $1.14, with 7.0% comparable sales (+8.5% cc) and gross margin up 20 bps; FX translation reduced net merchandise sales by 1.5% ($18.6M) .
Modest beats vs S&P Global consensus: EPS $1.14 vs $1.125*, revenue $1.317B vs $1.310B*, and adjusted EBITDA ~$79.3M vs ~$74.1M*; Q2 saw a slight EPS miss, while Q1 was a larger EPS miss despite revenue beats. Values retrieved from S&P Global.
Positive operating drivers: transactions +6.0%, average ticket +1.9%, digital sales +19.8% to $79M (6.1% of sales, a record), platinum membership penetration up to 16.1%, and revenue margin improved to 17.4% .
Headwinds remain below the line: total other expense widened to a $7.2M loss (FX revaluation and currency conversion costs), though the effective tax rate improved to 28.4%; management continues to navigate USD liquidity constraints in select markets .
Potential catalysts: sustained comp strength (early Q4 comps +7.7%), Chile market evaluation, distribution network upgrades, and private label/membership momentum; watch FX convertibility/costs and tariff outcomes .

What Went Well and What Went Wrong

What Went Well
- “Digital channel sales reached $79 million, a 19.8% increase year over year, representing 6.1% of total net merchandise sales, our highest digital contribution to date.”
- Membership quality mix improving: “Platinum accounts as of 05/31/2025 represented 16.1% of our total membership base” (vs 12.3% at 8/31/24), with renewal rate at 88% .
- Margin execution: “Total gross margin for the quarter as a percentage of net merchandise sales increased 20 basis points to 15.8% … Total revenue margins increased 30 basis points to 17.4%” .
What Went Wrong
- FX and USD liquidity pressures: “We recorded a $7.2 million net loss in total other expense … [from] unrealized losses… [and] premiums to convert local currency into U.S. Dollars” (up to $4.8M from $3.8M YoY) .
- FX translation shaved net merchandise sales growth by 1.5% ($18.6M), masking stronger constant-currency momentum .
- SG&A mix: “SG&A … increased to 13.2% of total revenues … primarily related to planned technology investments” (near-term opex drag) .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenues ($USD Billions)	$1.258	$1.364	$1.317
Operating Income ($USD Millions)	$58.3	$65.3	$56.2
Net Income ($USD Millions)	$37.4	$43.8	$35.2
Diluted EPS ($)	$1.21	$1.45	$1.14
Gross Margin % (on net merchandise sales)	—	15.6%	15.8%
Total Revenue Margin % (on total revenue)	—	17.1%	17.4%
Adjusted EBITDA ($USD Millions, Non-GAAP)	$79.1	$87.0	$79.0
Revenue Consensus Mean ($USD Billions)*	$1.239	$1.343	$1.310
Primary EPS Consensus Mean ($)*	$1.36	$1.46	$1.125
EBITDA Consensus Mean ($USD Millions)*	$81.0	$90.0	$74.1

Non-GAAP reconciliations provided by the company (Adjusted EBITDA adds back interest expense, taxes, D&A, adjusts for interest income and other expense) .
Values with asterisk (*) retrieved from S&P Global.

Segment performance (Q3 2025)

Segment	Net Merchandise Sales YoY	Net Merchandise Sales YoY (CC)	Comp Sales YoY	Comp Sales YoY (CC)
Central America	+7.5%	+7.6%	+5.7%	+5.9%
Caribbean	+8.2%	+9.7%	+8.6%	+10.1%
Colombia	+10.1%	+19.3%	+9.9%	+19.1%

KPIs and operating metrics

KPI	Q1 2025	Q2 2025	Q3 2025
Comparable Sales Growth	+5.7%	+6.7%	+7.0%
Comparable Sales Growth (CC)	+6.1%	+7.9%	+8.5%
Membership Accounts	—	>1.9M	~2.0M
Renewal Rate (12-month)	—	87%	88%
Platinum Members (% of base)	—	14.5%	16.1%
Digital Sales ($, % of Net Merch.)	—	$76.2M / 5.7%	$79.0M / 6.1%
Avg Ticket YoY	—	+1.9%	+1.9%
Transactions YoY	—	+3.9%	+6.0%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Effective Tax Rate	FY2025 (annualized)	~27%–29% (Q2 call)	~27%–29% (Q3 call)	Maintained
Early Q4 Comps (4 weeks)	4 weeks ended 6/29/2025	N/A	+7.7% (USD and CC)	New datapoint
Annual Dividend	FY2025	$1.26/share (declared 2/7/25)	No change discussed in Q3	Maintained
New Club Openings	2025–2026	Cartago (opened Apr-25); pipeline disclosed	Quetzaltenango, Guatemala opening Aug-25; La Romana, DR spring 2026	Updated timing detail

Note: No explicit quantitative revenue/margin/OpEx guidance provided in Q3 materials; management emphasized ongoing tech investments and distribution enhancements .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Supply chain/DC expansion	DCs in Miami, Costa Rica, Panama; DC build-outs planned in Guatemala, Trinidad, DR; China consolidation; own fleet; efficiency focus	Panama DC upgrade for cold chain; new DCs in Guatemala, Trinidad, DR in FY26; continued China consolidation tests	Improving infrastructure
Tariffs/macro	Tariff uncertainty; Free Trade Zone advantage; ~50% sourced locally/regionally; ~1/3 from U.S.	No new reciprocal tariffs noted; strategy to diversify supply chain and leverage FTZ continues	Managed risk
Digital/omnichannel	Q2 digital $76.2M (5.7% of sales), +19.3% YoY; online pharmacy in CR	Q3 digital $79M (6.1% of sales), +19.8% YoY; record digital mix; continued investment	Improving mix
Membership & Platinum	Q2 members >1.9M; 87% renewal; Platinum 14.5%	~2.0M; 88% renewal; Platinum 16.1%	Improving quality
FX/convertibility	USD availability constraints; premiums to convert; lowering exposure in Honduras	Other expense widened; convertibility premiums increased; USD liquidity still constrained in select markets	Ongoing headwind
Regional trends	Broad-based positive comps across regions; Colombia strength	CA +5.7% comps; Caribbean +8.6%; Colombia +9.9% (19%+ cc)	Broad-based strength
Leadership	CEO transition plan announced Mar-25; continuity signaled	CEO transition effective 9/1/25 reiterated; CFO transition effective 6/1/25	Transitioning smoothly

Management Commentary

Strategic priorities and Chile option: “We are currently evaluating Chile as a potential new market... excited about the potential opportunities this market offers us… [but] subject to completing our market analysis, finding appropriate sites, and securing permits.”
Distribution/logistics upgrades: “In fiscal year 2026, we plan to upgrade our Panama DC to support cold products and to open new DCs in Guatemala, Trinidad, and the Dominican Republic.”
Digital momentum: “Digital channel sales reached $79 million… representing 6.1% of total net merchandise sales, our highest digital contribution to date.”
Margin execution: “Total gross margin… increased 20 bps to 15.8%… Total revenue margins increased 30 bps to 17.4%.”
FX/convertibility costs: “Increase… primarily driven by an increase in unrealized losses… [and] an increase in our cost of premiums to convert local currency into U.S. Dollars from $3.8 million… to $4.8 million.”

Q&A Highlights

Currency convertibility (Trinidad/Jamaica structure): Management outlined up to $65M of financing (including a $15M USD loan repaid in TTD) to facilitate USD access and spread conversion over several years; exposure tied to TTD–USD, not JMD, minimizing third-currency risk .
Market expansion rationale (Chile): Attractive middle class, stability, and U.S.–Chile trade/tax relationships; potential for multiple locations starting with Santiago, with secondary cities possible; still under evaluation .
Pricing and FX premium: Team is modeling premiums into next year and aims to minimize member pricing impact, though work remains in process .

Estimates Context

Q3 2025 vs S&P Global consensus: EPS $1.14 vs $1.125* (beat), revenue $1.317B vs $1.310B* (beat), adjusted EBITDA ~$79.3M vs ~$74.1M* (beat).
Trajectory: Q2 EPS $1.45 vs $1.46* (slight miss) with a revenue beat; Q1 EPS $1.21 vs $1.36* (miss) with a revenue beat. Values retrieved from S&P Global.

Implications: Modest Q3 beats were driven by comps strength, improved margin mix, and digital penetration; FX revaluation and conversion costs remain a headwind below-the-line, tempering EPS upside. Values retrieved from S&P Global.

Key Takeaways for Investors

Quality top-line: Q3 comps +7.0% (+8.5% cc) with transactions +6% and stable pricing; early Q4 comps +7.7% support momentum .
Mix tailwinds: Gross margin +20 bps and total revenue margin +30 bps reflect favorable merchandise mix, private label, and membership monetization (Platinum to 16.1%) .
Digital scaling: Record 6.1% digital mix and $79M sales show traction; ongoing tech investments should support growth, though near-term SG&A runs a bit higher .
Structural logistics upgrades: DC buildouts (Panama upgrade; Guatemala/Trinidad/DR) and China consolidation should improve availability, lead times, and landed cost over time .
FX is the swing factor: Widened other expense (FX revaluation, conversion premiums) limited EPS leverage; management is proactively securing financing to improve convertibility in constrained markets .
Optionality from new markets: Chile evaluation adds medium-term growth optionality atop near-term new club openings (Guatemala Aug-25; DR spring-26) .
Net: Execution remains solid with modest beats and positive early Q4 reads; monitor FX/convertibility costs and tariff policy as primary variables for EPS sensitivity.

Footnote: Values marked with an asterisk (*) were retrieved from S&P Global.

PRICESMART INC (PSMT)·Q3 2025 Earnings Summary