In This Article:
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Revenue: Record Q2 revenue of $318.9 million, a 12% year-on-year increase.
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PLO (Pawn Loan Outstanding): Grew 15% to a Q2 record of $271.8 million.
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EBITDA: Increased 23% to $45.1 million.
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Diluted EPS: Grew 21% to $0.34.
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Store Locations: 1,284 stores across the US and Latin America; opened nine de novo stores in Latin America and acquired one store in Guatemala.
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Cash Balance: Increased to $505.2 million, up from $174.5 million last quarter.
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Merchandise Sales: Increased 8% to $177.4 million.
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Gross Profit: $185 million, reflecting a 10% increase.
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EBITDA Margin: Increased to 14.1%.
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Inventory: Increased 32% year-over-year.
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US Pawn Revenue: Up 7% to $221.4 million.
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Latin America Revenue: Increased 25% to $97.5 million.
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PSC Revenue: Rose 12% year-over-year.
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Average Loan Size: Increased 15% in the US.
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Online Payments: Increased by $7 million, reaching $29 million in the US.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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EZCORP Inc (NASDAQ:EZPW) achieved record Q2 revenue of $318.9 million, marking a 12% year-on-year increase.
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The company reported a 23% increase in EBITDA to $45.1 million and diluted EPS growth of 21% to $0.34.
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EZCORP Inc (NASDAQ:EZPW) opened nine new stores in Latin America and acquired one store in Guatemala, expanding its footprint.
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The EZ+ Rewards program saw a 34% increase in membership, now accounting for 77% of all transactions.
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The company's cash balance increased significantly to $505.2 million, providing a strong liquidity position for future growth opportunities.
Negative Points
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Merchandise margin contracted by 150 basis points due to increased price negotiations at the counter.
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Inventory turnover decreased to 2.5 times from 2.9 times, partially due to the expansion of the layaway program.
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The introduction of a long-term layaway option has shifted some sales to future quarters, impacting current revenue.
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Merchandise sales growth was modest at 8%, with a 2% increase in the US, indicating potential challenges in retail sales.
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The company faces macroeconomic pressures, including persistent inflation and economic uncertainty, impacting consumer behavior.
Q & A Highlights
Q: During the tax season, your US PLO declined 9% sequentially. Is this a new normal or a reflection of the macro environment? A: Timothy Jugmans, CFO: The 9% decrease is similar to last year, indicating a new normal. The average tax return grew only 4%, while consumer costs have increased more, suggesting a shift in consumer behavior.