Breaking Down EZCORP, Inc. (EZPW) Financial Health: Key Insights for Investors

If you are looking at EZCORP, Inc. (EZPW), you defintely need to cut through the noise and focus on the core numbers, because the pawn services business is showing a surprising resilience and growth trajectory. The headline from their full fiscal year 2025 results, reported in November 2025, is a clear signal: total revenues hit a record $1,274.3 million, marking a solid 10% increase year-over-year. That top-line strength flowed directly to the bottom line, with diluted earnings per share (EPS) jumping 29% to $1.42, and net income climbing to $109.6 million. The real engine is the Pawn Loans Outstanding (PLO), which grew 12% to $307.5 million, reflecting sustained consumer demand for immediate cash solutions across their expanded footprint of 1,360 stores. But here's the quick math on the risk: while the growth is great, net inventory is up 29%, so we need to watch if that merchandise moves quickly enough, or if it becomes a drag on future margins, despite analysts maintaining a 'Moderate Buy' consensus with an average price target around $23.75.

Revenue Analysis

You're looking at EZCORP, Inc. (EZPW) because the pawn business is a counter-cyclical play that's been delivering strong results, and you want to know if the growth is sustainable. The direct takeaway is that EZCORP's fiscal year (FY) 2025 revenue hit a record high of $1,274.3 million, driven by a dual engine: increased demand for immediate cash solutions and robust sales of second-hand goods. This isn't just a small bump; total revenues increased by a solid 10% year-over-year.

The company's revenue streams are straightforward, but the mix is what matters. EZCORP operates primarily on two fronts: lending and retail. The core business generates revenue from three main areas: merchandise sales, pawn service charges (PSC), and jewelry scrapping sales. Merchandise sales-which is the sale of collateral forfeited from pawn lending or used goods purchased from customers-is the biggest driver, reaching a record $721 million in FY 2025.

Pawn Service Charges (PSC), essentially the interest and fees on the pawn loans, are the defintely the second major component. This income stream is directly tied to the Pawn Loans Outstanding (PLO), which surged by 12% to $307.5 million in FY 2025. This growth in PLO shows a clear, resilient consumer demand for short-term, collateralized credit. Here's the quick math on the growth engines:

• Pawn Loans Outstanding (PLO) grew 12% to $307.5 million.
• Jewelry scrap sales increased by a massive 91%.
• Merchandise sales gross margin remained consistent at 35%.

When you break down the revenue by geography, it's clear the US is still the anchor, but Latin America is the growth accelerator. The company's operations are split into two major segments: US Pawn and Latin America Pawn. Latin America, which includes Mexico, Guatemala, El Salvador, and Honduras, is showing a much faster pace of expansion and operational leverage. The company now operates 1,360 total locations across five countries.

The segmentation of the 2025 revenue looks like this:

The significant change in the revenue profile is the outperformance of the Latin America Pawn segment, which saw revenue jump 17%, nearly double the US segment's growth rate. Also, the 91% increase in jewelry scrap sales is a powerful tailwind, benefiting from higher gold prices. What this estimate hides is the currency risk in Latin America, but the constant currency growth figures suggest the underlying operational performance is even stronger. You can read more about the full financial picture in Breaking Down EZCORP, Inc. (EZPW) Financial Health: Key Insights for Investors.

So, the clear action item here is to monitor the Latin America segment's contribution to overall gross profit-it was 27% in FY 2025-and see if it crosses the 30% threshold in FY 2026, which would signal a fundamental shift in the company's geographic reliance.

Profitability Metrics

You want to know if EZCORP, Inc. (EZPW) is efficiently turning its strong revenue growth into real profit. The short answer is yes: the company saw a significant surge in its bottom line for the full 2025 fiscal year, driven by both top-line expansion and margin improvement, but it still lags the broader financial services industry on a margin basis.

For the full fiscal year ended September 30, 2025, EZCORP, Inc. reported total revenue of $1,274.3 million, marking a solid 10% year-over-year increase. This growth translated into a GAAP net income of $109.6 million, which represents a substantial increase of $26.5 million from the prior year. That's a powerful move. The core profitability ratios tell the story of this improved performance:

Here's the quick math: EZCORP, Inc.'s gross profit for the year was $746.1 million, a 9% jump from the previous year, which kept the gross margin steady at nearly 58.7%. What this estimate hides is the inherent difference between a pawn-based model, which deals in merchandise sales and inventory costs, and the pure fee-based models of many other credit services firms, which explains the industry margin disparity.

The trend in profitability is defintely upward. Net income surged 30% on an adjusted basis, and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew 26% to $191.2 million. This shows strong operating leverage-the company is growing its profit faster than its revenue. This momentum is fueled by both higher Pawn Loans Outstanding (PLO) and strategic expansion, which you can read more about in the Mission Statement, Vision, & Core Values of EZCORP, Inc. (EZPW).

Looking at operational efficiency, the company is managing its core business well, but there are areas to watch. Merchandise sales gross profit margin remained consistent at 37%, which is right in their target range. Jewelry scrap sales, however, saw a massive full-year gross margin increase to 27%, largely due to rising gold prices, which is a nice tailwind but not a core operational improvement. Still, General and Administrative (G&A) expenses rose by 13%, driven primarily by higher incentive compensation, which is a cost to monitor. Plus, the inventory turnover rate decreased, a signal of potential inefficiency in managing the growing stock of second-hand goods.

• Grow profit faster than revenue.
• Monitor G&A expenses for bloat.
• Improve inventory turnover efficiency.

The key takeaway is that EZCORP, Inc. is successfully translating its market growth into significant earnings growth, even as it navigates the inherent inventory management challenges of the pawn industry.

Debt vs. Equity Structure

EZCORP, Inc. (EZPW) has a notably conservative capital structure for a specialty finance company, especially after its significant 2025 debt refinancing. The direct takeaway is that the company is 'lowly geared,' meaning it relies less on external debt compared to its equity base, which is a strong sign of balance sheet health.

For the quarter ending June 2025, EZCORP's total debt-to-equity (D/E) ratio (a key measure of financial leverage) stood at 0.77. This is well below the common threshold of 2.0 to 2.5 that often signals high financial risk in capital-intensive industries. For context, EZCORP's D/E ratio is positioned favorably against the broader US Credit Services industry, which often sees higher leverage. A D/E ratio below 1.0 suggests the company is funding its assets more with shareholder equity than with debt, which is defintely a plus for long-term stability.

Here's the quick math on the June 2025 balance sheet components, which shows the core of their financing strategy:

• Short-Term Debt & Capital Lease Obligation: $60 million
• Long-Term Debt & Capital Lease Obligation: $702 million
• Total Stockholders Equity: $990 million

What this estimate hides is the company's substantial liquidity. The fiscal year 2025 ended with a cash and cash equivalents balance of $469.5 million, which is a massive jump from the prior year. This cash position means the company has a 'near-zero net debt position' when factoring in its cash reserves against total debt, giving it significant financial flexibility.

The 2025 Debt Refinancing Action

The capital structure was meaningfully enhanced in March 2025 with a major refinancing move. EZCORP issued $300 million in new Senior Notes due in 2032. The primary goal of this issuance was to retire the existing 2.375% Convertible Senior Notes Due 2025 that were maturing in May.

While this move extended the maturity wall, reducing near-term refinancing risk, it did come at a higher cost of debt. The new 2032 notes were issued at a 7.375% interest rate, reflecting the higher interest rate environment of 2025 compared to the 2.375% rate on the notes they repaid. The remaining proceeds are earmarked for general corporate purposes, including funding accelerated growth and strategic acquisitions.

This is a classic financial maneuver: trade a higher interest expense for greater long-term certainty and liquidity. The company is balancing debt financing for growth-like its expansion into Latin America and recent acquisitions-with a strong equity base, which minimizes risk for shareholders. This is a highly liquid and lowly geared balance sheet.

For more on the operational drivers behind this financial strength, you can read the full analysis at Breaking Down EZCORP, Inc. (EZPW) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You want a clear picture of EZCORP, Inc. (EZPW)'s ability to meet its near-term obligations, and the data from fiscal year 2025 (FY2025) is defintely reassuring. The company's liquidity position is exceptionally strong, driven by a strategic debt issuance and robust operational cash flow.

The core liquidity ratios-which tell us how easily the company can convert assets to cash to cover short-term debt-are excellent. EZCORP's current ratio stands at 6.31, meaning it has $6.31 in current assets for every dollar of current liabilities. Even stripping out inventory, the quick ratio is a massive 5.00. Honestly, anything consistently above 1.0 is generally considered healthy, so these figures show a significant buffer. The quick ratio is the real one-liner here: The company can pay off its current debt five times over with its most liquid assets.

Analysis of Working Capital Trends

Working capital (Current Assets minus Current Liabilities) has seen a massive expansion, largely due to a strategic move in financing. As of the end of FY2025, Total Current Liabilities were approximately $200.572 million. Given the current ratio of 6.31, this implies Total Current Assets are around $1,265.6 million, leading to a net working capital of roughly $1,065.0 million. This is a very strong liquidity position, but it's important to see where the cash came from.

The primary driver of the increase in cash and working capital was a financing decision. Cash and cash equivalents surged to $469.5 million at the end of FY2025, up from $170.5 million in the prior year. This jump was fueled by the issuance of $300.0 million in 7.375% Senior Notes due 2032, a clear move to bolster the balance sheet and fund expansion.

Cash Flow Statements Overview

The cash flow statement shows a healthy core business generating cash, plus a significant capital deployment for growth.

• Operating Cash Flow (OCF): The company's core pawn business is highly profitable, with OCF estimated at approximately $141.07 million for the trailing twelve months leading into the end of FY2025. This strong OCF provides the first line of defense for funding organic growth and managing day-to-day operations.
• Investing Cash Flow (ICF): This was a period of aggressive capital deployment. The ICF was a significant net outflow, as the company increased its Pawn Loans Outstanding (PLO) to a record $303.9 million and invested heavily in store expansion, adding 81 locations (40 de novo and 52 acquired). This outflow is necessary to grow the pawn earning assets, which are the engine of future revenue.
• Financing Cash Flow (FCF): The FCF was dominated by the $300.0 million inflow from the new Senior Notes. This provided the capital for the expansion seen in the ICF and the massive cash reserve. Management also authorized a new $50 million share repurchase program, signaling confidence in the stock's valuation and capital position.

Potential Liquidity Concerns or Strengths

The immediate strength is undeniable: a cash reserve of $469.5 million and very high liquidity ratios. Here's the quick math: the company's cash alone could cover its entire current liabilities of $200.572 million more than twice over. Still, a key risk to monitor is the $230 million in 2029 Convertible Notes. If a significant portion of these notes were to be settled in cash rather than equity upon conversion, it would rapidly deplete a large chunk of the current cash balance, creating immediate refinancing pressure. The new debt also carries a higher cost of capital, with interest expense jumping 70% to $23.0 million. The management's decision on settling those convertible notes will defintely be the next big liquidity test. For a deeper look into the company's long-term vision, you can read more here: Mission Statement, Vision, & Core Values of EZCORP, Inc. (EZPW).

Valuation Analysis

You need to know if EZCORP, Inc. (EZPW) is trading at a fair price, and the quick answer is that analysts see a clear upside, suggesting it is currently undervalued. The consensus price target sits between $20.75 and $21.00, a solid premium over the recent closing price of around $17.89 as of mid-November 2025. This implies a potential near-term return of roughly 16% to 17%.

The core valuation multiples for the 2025 fiscal year tell a story of a profitable company trading at a reasonable price, especially when you consider the pawn industry's growth trajectory. Here's the quick math on the key ratios:

• Price-to-Earnings (P/E): The fiscal year 2025 P/E ratio is approximately 12.40. This is low compared to the broader S&P 500 average, signaling that you are getting a dollar of EZCORP's earnings for a relatively modest price.
• Price-to-Book (P/B): The P/B ratio is a tight 1.05. A ratio this close to 1.0 means the market is valuing the company's equity almost exactly at its book value (assets minus liabilities), which is often a hallmark of a value stock.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric, which is crucial for capital-intensive businesses, is around 7.49 for fiscal year 2025. This is a healthy, low multiple, suggesting the company is not over-leveraged compared to its operating cash flow (Earnings Before Interest, Taxes, Depreciation, and Amortization).

These multiples defintely lean toward the stock being priced for value, not aggressive growth, but the underlying business performance has been strong. You can dive deeper into the operational drivers in Exploring EZCORP, Inc. (EZPW) Investor Profile: Who's Buying and Why?

Looking at the stock price trend over the last 12 months, the performance has been strong, reflecting the company's solid earnings. The stock has climbed from its 52-week low of $11.56 to a 52-week high of $19.44. This represents a significant price appreciation of about 46.90% to 51.57% over the past year, which is a substantial return for any investor. The momentum is clearly upward, but still below the analyst target. This is a classic setup where the market has rewarded performance but still hasn't fully priced in the future outlook.

From a cash return perspective, EZCORP, Inc. is not a dividend stock. The trailing twelve-month (TTM) dividend yield is 0.00% with a payout ratio of 0.00%, as the company is prioritizing capital allocation toward growth initiatives and share buybacks instead of shareholder distributions. This focus on reinvestment is common for companies expanding their footprint, particularly in the Latin American and U.S. markets, which is a key strategic move for them.

The analyst community is quite bullish on this stock. Out of the analysts covering EZCORP, Inc. (EZPW) as of November 2025, the consensus rating is a 'Buy' or 'Moderate Buy'. This level of conviction, with a high price target reaching up to $28.00, suggests that the Street sees a clear path for the company to execute on its strategy and close the gap between the current price and its intrinsic value.

The data points to a stock that has already delivered strong returns but still has room to run based on conservative valuation multiples and a positive analyst outlook. The risk remains in execution and any potential dips in consumer credit health, but for now, the valuation looks compelling.

Risk Factors

You've seen the record performance from EZCORP, Inc. (EZPW) in fiscal year 2025, with total revenue hitting a record-setting $1.3 billion and net income surging 30% to $110.7 million. That's a powerful run. But as a seasoned analyst, you know strong results don't eliminate risk; they often just change its nature. The core risks for EZCORP are tied to its customer base, its rapid growth strategy, and the unpredictable regulatory landscape for pawn and micro-lending.

Here's the quick math: the business thrives when cash- and credit-constrained consumers need short-term solutions, but that reliance makes the company inherently sensitive to economic shifts, especially inflation and unemployment.

External Risks: Market and Regulatory Headwinds

The biggest near-term external risks are regulatory pressure and the volatility of the commodities that underpin a portion of their revenue. The pawn industry is always under scrutiny, which means state-by-state or country-by-country changes to maximum interest rates, loan terms, or fees (Pawn Service Charges or PSC) could materially impact the business model. This is a constant, defintely unquantifiable risk.

• Regulatory Scrutiny: New consumer protection laws in the U.S. or Mexico could cap PSC yields, which is a primary revenue driver.
• Gold Price Volatility: Scrap sales, which benefited from higher gold prices in fiscal 2025, are a volatile revenue stream. Management has already signaled that the strong scrap sales gross profit seen in the last two quarters is expected to return to more normalized levels in fiscal year 2026, which will pressure margins.
• Foreign Currency Exchange: Operating 1,360 stores across five countries, particularly in Latin America, exposes EZCORP to significant foreign currency fluctuations. While the Latin America Pawn segment saw a strong 23% increase in Pawn Loans Outstanding (PLO) in Q4, that growth is less valuable if the local currency weakens against the U.S. dollar.

Internal and Operational Risks

The company's very successful expansion strategy creates its own set of operational risks. In fiscal 2025 alone, EZCORP grew its footprint by adding 81 stores, including 52 acquired locations. That kind of rapid expansion, especially through acquisitions, carries a substantial integration risk.

Plus, inventory management is a perpetual balancing act. While the PLO to inventory ratio remains healthy at 1.2x, a decrease in inventory turnover or an increase in aged general merchandise (items held too long) can quickly tie up capital and depress merchandise sales margins, which were already normalizing at 35% for the full year.

Here is a snapshot of the key financial risk profile elements:

The company is mitigating these risks with a disciplined capital allocation strategy that prioritizes substantial liquidity and a digital transformation effort, which now includes 6.9 million EZ+ Rewards members. They're not just growing; they're trying to build a moat with customer loyalty and a strong balance sheet. For a deeper dive into who is betting on this strategy, you should check out Exploring EZCORP, Inc. (EZPW) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking at EZCORP, Inc. (EZPW) after a truly transformative year, and the question is simple: Can this growth continue? The short answer is yes, but the path forward requires disciplined execution, especially on the digital and acquisition fronts. Fiscal Year 2025 was a record-setter, with the company hitting $1.3 billion in total revenue, a 12% jump year-over-year, and net income surging 30% to $110.7 million. That kind of momentum doesn't just happen; it's driven by clear, actionable strategies.

The core of EZCORP's future growth is a two-pronged approach: aggressive expansion in Latin America and a deep-dive into digital transformation.

Strategic Expansion and Acquisitions

The most immediate growth driver is market expansion, particularly in Latin America, which continues to show robust growth rates. The company ended fiscal 2025 with a total of 1,360 stores across five countries. This footprint grew significantly through strategic moves like the acquisition of 77 stores in Mexico during the year.

Management has signaled a defintely active M&A pipeline for fiscal 2026, with 14 more stores in Mexico and three in Texas already acquired post-year-end. Here's the quick math: expanding the physical network directly increases Pawn Loans Outstanding (PLO), which hit a record $303.9 million in 2025. More stores mean more earning assets, which climbed 19% to $556 million in 2025.

• Expand store base to increase Pawn Loans Outstanding (PLO).
• Focus M&A on high-growth regions like Latin America.
• Leverage a strong cash position of $469.5 million for disciplined acquisitions.

Digital Transformation and Product Innovation

The second major lever is the digital push, which is moving the traditional pawn model into an omnichannel (all channels) experience. The EZ+ Rewards membership is a massive loyalty engine, growing 26% to 6.9 million members in 2025. This isn't just a feel-good metric; it's a direct link to operational efficiency. Digital initiatives led to a 42% increase in online payments year-over-year, which frees up store employees to focus on core lending and sales.

EZCORP is now offering all of its inventory online and providing instant quotes, which is a key product innovation that improves customer experience and market share. This digital focus is a competitive advantage, especially in a sector where many competitors still rely solely on brick-and-mortar operations. You can see their commitment to this in their Mission Statement, Vision, & Core Values of EZCORP, Inc. (EZPW).

Earnings Outlook and Competitive Edge

While EZCORP doesn't provide formal guidance, analysts project earnings per share (EPS) to grow 10.77% in the next year, from $1.30 to $1.44 per share. This robust forecast is grounded in the company's ability to execute on its core business, which is a countercyclical model that thrives when value-conscious consumers need short-term cash.

What this estimate hides is the potential volatility from jewelry scrap sales. In 2025, the company benefited from favorable gold prices, but management anticipates scrap-sales gross profit will decline sequentially toward normal levels after Q1 2026. The real competitive advantage, then, is the operational leverage in the mature U.S. segment, where segment contribution rose 21% to $200.2 million on only a modest 4% increase in store expenses. That's efficient growth.

The next step for you is to monitor the M&A integration in Mexico and the inventory turnover rate, which saw a slight dip in 2025, to ensure operational excellence keeps pace with the rapid expansion.