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What changed in EZCORP INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of EZCORP INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+216 added−229 removedSource: 10-K (2025-11-13) vs 10-K (2024-11-13)

Top changes in EZCORP INC's 2025 10-K

216 paragraphs added · 229 removed · 185 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

91 edited+8 added−20 removed32 unchanged
Biggest changeFour of the seven members of our Board of Directors meet all of the “independence” requirements set forth in the Nasdaq Listing Rules, and none of the independent directors have any past or existing relationship with our controlling stockholder outside of their Board service. • All of our standing Board committees (Audit and Risk Committee, People and Compensation Committee and Nominating Committee) are comprised of solely independent directors. • We satisfy Nasdaq’s board diversity rules, with two of our seven Board members being diverse directors, one of whom self-identifies as female and an underrepresented minority and one whom self-identifies as an underrepresented minority. 10 Table of Contents For further discussion of our corporate governance standards, see “Part III, Item 10 — Directors, Executive Officers and Corporate Governance.” • Our pawn operations are licensed and supervised in all jurisdictions in which we operate.
Biggest changeFive of the seven members of our Board of Directors meet all of the independence requirements set forth in the Nasdaq Listing Rules, and none of the independent directors have any past or existing relationship with our controlling stockholder outside of their Board service. • All of our standing Board committees (Audit and Risk Committee, People and Compensation Committee and Nominating Committee) are comprised solely of independent directors.
Environmental Sustainability Our business contributes to overall environmental sustainability in the following ways: • Our business is fundamentally a neighborhood business, where each store principally serves the surrounding neighborhood.
Our business contributes to overall environmental sustainability in the following ways: • Our business is fundamentally a neighborhood business, where each store principally serves the surrounding neighborhood.
Other Regulations — Our pawn lending activities are subject to other state and federal statutes and regulations, including the following: • We are subject to the Truth in Lending Act (“TILA”), and its underlying regulations, which requires lenders to disclose information about the terms and costs of credit in a standardized manner, including in the form of an annual percentage rate.
Other Regulations — Our pawn lending activities are subject to other state and federal statutes and regulations, including the following: • We are subject to the federal Truth in Lending Act (“TILA”), and its underlying regulations, which requires lenders to disclose information about the terms and costs of credit in a standardized manner, including in the form of an annual percentage rate.
The law also restricts the use of cash in certain transactions associated with high-value assets and limits and, to the extent possible, money laundering activities protected by the anonymity that such cash tra nsactions provide.
The law also restricts the use of cash in certain transactions associated with high-value assets and limits, to the extent possible, money laundering activities protected by the anonymity that such cash tra nsactions provide.
PROFECO regulates the form and terms of pawn loan contracts (but not interest or service charge rates) and defines certain operating standards and procedures for pawnshops, including retail operations, and establishes registration, disclosure, bonding and reporting requirements. There are significant fines and sanctions, including operating suspensions, for failure to comply with PROFECO’s rules and regulations.
PROFECO regulates the form and terms of pawn loan contracts (but not interest or service charge rates) and defines certain operating standards and procedures for pawnshops, including retail operations, and establishes registration, disclosure, bonding and reporting requirements. There are fines and sanctions, including operating suspensions, for failure to comply with PROFECO’s rules and regulations.
In Latin America, most of our customers receive additional compensation from their employers in December, and many receive additional compensation in June or July, applying downward pressure on PLO balances and fueling some merchandise sales in those periods.
In Latin America, most of our customers receive additional compensation from their employers in December, and many receive additional compensation in June or July, applying downward pressure on PLO balances and fueling merchandise sales in those periods.
Other Latin American Regulations Local governmental entities in Guatemala, El Salvador and Honduras also regulate lending and retail businesses. Certain laws and local zoning and permitting ordinances require basic commercial business licenses and signage permits.
Other Latin American Regulations Local governmental entities in Guatemala, El Salvador and Honduras regulate lending and retail businesses. Certain laws and local zoning and permitting ordinances require basic commercial business licenses and signage permits.
(“SMG”), which owns and operates 102 pawn stores in the U.S., Caribbean and Central America, with plans to build and acquire more stores in those regions. We generate revenues primarily from pawn service charges (“PSC”) on pawn loans outstanding (“PLO”), merchandise sales and jewelry scrapping. We remain focused on optimizing our balance of PLO and the resulting higher PSC.
(“SMG”), which owns and operates 103 pawn stores in the U.S., Caribbean and Central America, with plans to build and acquire more stores in those regions. We generate revenues primarily from pawn service charges (“PSC”) on pawn loans outstanding (“PLO”), merchandise sales and jewelry scrapping. We remain focused on optimizing our balance of PLO and the resulting higher PSC.
All of these activities effectively extend the useful life of many products, reducing waste and lessening the demand for new manufacturing and mining. • Our store operations themselves leave a relatively small carbon footprint when compared to big-box or other mass retailers that rely on manufacturers and extensive supply chain and distribution channels.
All of these activities extend the useful life of products, reducing waste and lessening the demand for new manufacturing and mining. • Our store operations themselves leave a relatively small carbon footprint when compared to big-box or other mass retailers that rely on manufacturers and extensive supply chain and distribution channels.
In some jurisdictions, we are subject to the laws restricting the scope of data we collect and granting rights to our customers to access, correct, and/or delete the information we obtain. • We are subject to the Fair Credit Reporting Act, which was enacted, in part, to address privacy concerns associated with the sharing of consumers’ financial information and credit history contained in consumer credit reports and limits our ability to share certain consumer report information. 12 Table of Contents • We are subject to the Federal Fair and Accurate Credit Transactions Act, which amended the Fair Credit Reporting Act and requires us to adopt written guidance and procedures for detecting, preventing and mitigating identity theft and to adopt various policies and procedures (including Team Member training) that address and aid in detecting and responding to suspicious activity or identity theft “red flags.” • As a provider of consumer financial products, we are prohibited from engaging in any unfair, deceptive or abusive act or practice (UDAAP) under the Dodd-Frank Act, as they can cause significant financial injury to consumers, erode consumer confidence and undermine the financial marketplace. • The Equal Credit Opportunity Act prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance or good faith exercise of any rights under the Consumer Credit Protection Act. • Under the USA PATRIOT Act, we must maintain an anti-money laundering compliance program that includes the development of internal policies, procedures and controls; the designation of a compliance officer; an ongoing Team Member training program and an independent audit function to test the program. • We are subject to the Bank Secrecy Act and its underlying regulations, which require us to report and maintain records of certain high-dollar transactions.
In some jurisdictions, we are subject to the laws restricting the scope of data we collect and granting rights to our customers to access, correct and/or delete the information we obtain. • We are subject to the Fair Credit Reporting Act, which was enacted, in part, to address privacy concerns associated with the sharing of consumers’ financial information and credit history contained in consumer credit reports and limits our ability to share certain consumer report information. • We are subject to the federal Fair and Accurate Credit Transactions Act, which amended the Fair Credit Reporting Act and requires us to adopt written guidance and procedures for detecting, preventing and mitigating identity theft and to adopt various policies and procedures (including Team Member training) that address and aid in detecting and responding to suspicious activity or identity theft “red flags.” • As a provider of consumer financial products, we are prohibited from engaging in any unfair, deceptive or abusive act or practice (UDAAP) under the Dodd-Frank Act, as such practices may cause significant financial injury to consumers, erode consumer confidence and undermine the financial marketplace. • We are subject to the Equal Credit Opportunity Act, which prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance or good faith exercise of any rights under the Consumer Credit Protection Act. • Under the USA PATRIOT Act, we must maintain an anti-money laundering compliance program that includes the development of internal policies, procedures and controls; the designation of a compliance officer; an ongoing Team Member training program and an independent audit function to test the program. • We are subject to the Bank Secrecy Act and its underlying regulations, which require us to report and maintain records of certain high-dollar transactions.
As a net effect of these and other factors and excluding discrete charges, our consolidated income before tax is generally highest in our first fiscal quarter (October through December) and lowest in our third fiscal quarter (April through June). Competition We encounter significant competition in connection with all of our activities.
As a net effect of these and other factors and excluding discrete charges, our consolidated income before tax is generally highest in our first fiscal quarter (October through December) and lowest in our third fiscal quarter (April through June). Competition We encounter significant competition in connection with our business activities.
The gross profit on sales of inventory depends primarily on our assessment of the estimated resale or scrap value at the time the property is either accepted as pawn collateral or purchased and our ability to sell that merchandise in a timely manner.
The gross profit on sales of inventory depends primarily on our assessment of the estimated resale or scrap value at the time the property is either received as pawn collateral or purchased and our ability to sell that merchandise in a timely manner.
Our filings with the SEC, including our Annual Reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and Section 16 filings, are available free of charge through links maintained on our website under the heading “Investor Relations — SEC Filings.” Information contained on our website is not incorporated by reference into this report.
Our filings with the SEC, including our Annual Reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and Section 16 filings, are available free of charge through links maintained on our website under the heading “Investor Relations — SEC Filings.” Information contained on our website is not incorporated by reference into this report. 14 Table of Contents
If the customer chooses to redeem their pawn, they will repay the amount advanced plus any accrued PSC. If the customer chooses not to redeem their pawn, the pawned collateral becomes our inventory, which we sell in our retail merchandise sales activities or, in some cases, scrap for its inherent gold or precious stone content.
If the customer chooses to redeem their pawn, they repay the amount advanced plus PSC. If the customer chooses not to redeem their pawn, the pawned collateral becomes our inventory, which we sell in our retail merchandise sales activities or, in some cases, scrap for its inherent gold or precious stone content.
(2) The term Management is used to describe Team Members with one or more direct reports. 8 Table of Contents Total Rewards Our compensation programs are designed to align the compensation of Team Members with individual and Company performance and to provide the proper incentives to attract, retain and motivate Team Members to achieve results.
(2) The term Management is used to describe Team Members with one or more direct reports. 8 Table of Contents Total Rewards Our compensation programs are designed to align the compensation of Team Members with individual and Company performance and to provide incentives to attract and retain our Team Members and motivate them to achieve desired results.
We maintain a strong compliance culture that is monitored and overseen by our Board of Directors and supported by seasoned regulatory and compliance teams. • Protecting the privacy, integrity and security of our customers’ data and our enterprise network is a top priority that is also monitored and overseen by our Board of Directors.
We maintain a strong compliance culture that is monitored and overseen by our Board of Directors and supported by seasoned regulatory and compliance teams. 9 Table of Contents • Protecting the privacy, integrity and security of our customers’ data and our enterprise network is a top priority that is also monitored and overseen by our Board of Directors.
If we accept as collateral or purchase merchandise from a customer and it is determined that our customer was not the rightful owner, the merchandise is subject to recovery by the rightful owner and those losses are included in our shrinkag e. Historically, we have not experienced a material number of claims of this nature.
If we accept merchandise from a customer in a pawn or purchase transaction and it is determined that our customer was not the rightful owner, the merchandise is subject to recovery by the rightful owner and those losses are included in our shrinkag e. Historically, we have not experienced a material number of claims of this nature.
Our ability to offer quality pre-owned goods at prices significantly lower than original retail prices attracts value-conscious customers.
Our ability to offer quality pre-owned goods for sale at prices significantly lower than original retail prices attracts value-conscious customers.
The following chart presents sources of gross profit, including PSC, merchandise sales gross profit (“Merchandise sales GP”) and jewelry scrapping gross profit (“Jewelry scrapping GP”) for fiscal 2024, fiscal 2023 and fiscal 2022: 4 Table of Contents The following charts present sources of gross profit by geography for fiscal 2024, fiscal 2023 and fiscal 2022: Segment and Geographic Information We conduct our business globally and manage our business by geography.
The following chart presents sources of gross profit, including PSC, merchandise sales gross profit (“Merchandise sales GP”) and jewelry scrap gross profit (“Jewelry scrap GP”) for fiscal 2025, fiscal 2024 and fiscal 2023: 4 Table of Contents The following charts present sources of gross profit by geography for fiscal 2025, fiscal 2024 and fiscal 2023: Segment and Geographic Information We conduct our business globally and manage our business by geography.
The average transaction amounts tend to be higher in the GPMX countries than in Mexico due to the higher concentration of jewelry used as pawn collateral. If a customer chooses not to redeem, renew or extend their pawn, the pawn collateral is forfeited and becomes inventory available for sale.
The average transaction size tends to be higher in the GPMX countries than in Mexico due to the higher concentration of jewelry used as pawn collateral. If a customer chooses not to redeem, renew or extend their pawn, the pawn collateral is forfeited and becomes inventory available for sale.
In fiscal 2024, we sold approximately 5.2 million pre-owned items, including over 2.9 million items in the consumer electronics, camera and household goods categories, 1.4 million other general merchandise items (such as tools and musical instruments) and 0.8 million jewelry items. In addition, through our jewelry scrapping activities, we recycle significant volumes of gold and diamonds.
In fiscal 2025, we sold approximately 5.4 million pre-owned items, including over 3.0 million items in the consumer electronics, camera and household goods categories, 1.5 million other general merchandise items (such as tools and musical instruments) and 0.8 million jewelry items. In addition, through our jewelry scrapping activities, we recycle significant volumes of gold and diamonds.
Customers in the U.S. and the majority of our Latin America stores may purchase a product protection plan that allows them to exchange certain general merchandise (non-jewelry) sold through our retail pawn operations within six months of purchase.
We offer for purchase to customers in the U.S. and the majority of our Latin America stores a product protection plan that allows them to exchange certain general merchandise (non-jewelry) sold through our retail pawn operations within six months of purchase.
In addition, we believe the ability to compete effectively will be based increasingly on strong general management, regional focus, automated management information systems, access to capital and superior customer service.
In addition, we believe the ability to compete effectively is based increasingly on strong general management, regional focus, automated management information systems, access to capital and superior customer service.
To date, the CFPB has not taken any steps to exercise such authority or indicated any intention to do so, although it has initiated actions against pawn companies for alleged violations of consumer lending regulations, including the Military Lending Act discussed above.
To date, the CFPB has not taken any steps to exercise such authority or indicated any intention to do so, although historically it has initiated actions against pawn companies for alleged violations of certain consumer lending regulations, including the Military Lending Act.
This law affects all vulnerable activities in Mexico and is intended to detect commercial activities arising from illicit or ill-gotten means through bilateral cooperation between Mexico’s Ministry of Finance and Public Credit and Mexico’s Attorney General’s Office.
This law, including 2025 amendments thereto, affects all vulnerable activities in Mexico and is intended to detect commercial activities arising from illicit or ill-gotten means through bilateral cooperation between Mexico’s Ministry of Finance and Public Credit and Mexico’s Attorney General’s Office.
Cash Converters and its controlled companies comprise a diverse group generating revenues from franchising, store operations, personal finance (including pawn transactions) and vehicle finance in 669 stores across 17 countries. • We own a preferred interest in Founders One, LLC (“Founders”) that has majority ownership in Simple Management Group, Inc.
Cash Converters and its controlled companies comprise a diverse group generating revenues from franchising, store operations, and personal finance (including pawn transactions) in 659 stores across 15 countries. • We own a preferred interest in Founders One, LLC (“Founders”) that has majority ownership in Simple Management Group, Inc.
And we rely on four foundational capabilities to execute our strategy and achieve our purpose: • Team Members — We enable diverse, engaged and tenured teams with a true passion for pawnbroking. • IT and Data Modernization — We modernize our IT and data assets to capitalize on growth opportunities and create greater value at every customer interaction. • Risk Management and Building a Culture of Compliance — We are continually focused on strengthening our capabilities to manage operational, financial, regulatory, compliance, information security and reputational risk. • Environment, Social and Governance (“ESG”) — We prioritize developing the foundational elements of a comprehensive and integrated sustainability program. 3 Table of Contents Overview of Our Business At September 30, 2024, we operated a total of 1,279 locations, consisting of: • 542 U.S. pawn stores (operating primarily as EZPAWN or Value Pawn & Jewelry); • 565 Mexico pawn stores (operating primarily as Empeño Fácil and Cash Apoyo Efectivo); and • 172 pawn stores in Guatemala, El Salvador and Honduras (operating as GuatePrenda and MaxiEfectivo).
And we rely on four foundational capabilities to execute our strategy and achieve our purpose: • Team Members — We enable diverse, engaged and tenured teams with a true passion for pawnbroking. • IT and Data Modernization — We modernize our IT and data assets to capitalize on growth opportunities and create greater value at every customer interaction. • Risk Management and Building a Culture of Compliance — We are continually focused on strengthening our capabilities to manage operational, financial, regulatory, compliance, information security and reputational risk. • Sustainability — We prioritize developing the foundational elements of a comprehensive and integrated sustainability program. 3 Table of Contents Overview of Our Business At September 30, 2025, we operated a total of 1,360 locations, consisting of: • 545 U.S. pawn stores (operating primarily as EZPAWN and Value Pawn & Jewelry); • 622 Mexico pawn stores (operating primarily as Empeño Fácil and Cash Apoyo Efectivo); and • 193 pawn stores in Guatemala, El Salvador and Honduras (operating as GuatePrenda and MaxiEfectivo).
We reinforced the utilization of our career path (Operations) and career and competency framework (Corporate Support Center) to build individual development plans to guide the career paths of Team Members and to prepare them for future roles.
We reinforced the utilization of our career path (Operations) and career and competency framework (Corporate Support Center) to build individual development plans to guide and prepare our Team Members for future roles within the Company.
Our risk management structure consists of asset protection, compliance and internal audit departments, which monitor the inventory system, lending practices, regulatory compliance and compliance with our policies and procedures. We perform full physical audits of inventory at each store at least annually, and more often in higher risk stores or those experiencing higher shrinkage.
Our risk management structure consists of compliance, asset protection and internal audit teams, which monitor lending practices, inventory systems, regulatory compliance and compliance with robust internal policies and procedures. We perform full physical audits of inventory at each store at least annually, and more often in higher risk stores or those experiencing higher shrinkage.
We achieve this goal through Training and Development programs that Team Members can use to plan their careers and identify future growth opportunities. We engage Team Members at all levels so we can understand their professional and personal goals, identify high potential future leaders to strengthen our internal bench, support them in their journey and retain our talent.
We achieve this goal through training and development programs that Team Members use to plan their careers and identify future growth opportunities. We engage Team Members at all levels in order to understand their professional and personal goals and identify high potential future leaders to strengthen our internal bench and retain our talent.
Pawn Latin America Pawn Consolidated As of September 30, 2021 516 632 1,148 New locations opened — 28 28 Locations acquired 3 — 3 Locations combined or closed (4) — (4) As of September 30, 2022 515 660 1,175 New locations opened 3 44 47 Locations acquired 12 — 12 Locations combined or closed (1) (2) (3) As of September 30, 2023 529 702 1,231 New locations opened 1 40 41 Locations acquired 13 — 13 Locations combined or closed (1) (5) (6) As of September 30, 2024 542 737 1,279 For additional information about our segments and geographic areas, see Note 12: Segment Information of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” 5 Table of Contents Pawn Activities At our pawn stores, we advance cash against the value of collateralized tangible personal property.
Pawn Latin America Pawn Consolidated As of September 30, 2022 515 660 1,175 New locations opened 3 44 47 Locations acquired 12 — 12 Locations combined or closed (1) (2) (3) As of September 30, 2023 529 702 1,231 New locations opened 1 40 41 Locations acquired 13 — 13 Locations combined or closed (1) (5) (6) As of September 30, 2024 542 737 1,279 New locations opened — 40 40 Locations acquired 4 48 52 Locations combined or closed (1) (10) (11) As of September 30, 2025 545 815 1,360 For additional information about our segments and geographic areas, see Note 13: Segment Information of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” 5 Table of Contents Pawn Activities At our pawn stores, we advance cash against the value of collateralized tangible personal property.
Consequently, the success of our pawn business is largely dependent on our ability to accurately assess the probability of pawn redemption and the estimated resale or scrap value of the collateralized personal property. As of September 30, 2024, we had a closing PLO balance of $274.1 million.
Consequently, the success of our pawn business is largely dependent on our ability to accurately assess the probability of pawn redemption and the estimated resale or scrap value of the collateralized personal property. As of September 30, 2025, we had a closing PLO balance of $307.5 million.
In addition, any shareholder or other interested party may send communications to the Board of Directors, either individually or as a group, through a process that is outlined in the Investor Relations section of our website. 7 Table of Contents Diversity and Inclusion At EZCORP, we foster an environment that values diversity, inclusion and development for all.
In addition, any shareholder or other interested party may send communications to the Board of Directors, individually or as a group, through means outlined in the Investor Relations section of our website. 7 Table of Contents Belonging At EZCORP, we foster an environment that values belonging and development for all.
Governance At EZCORP, we believe that “The Way We Do Business is as Important as the Business We Do.” That belief underlies our Code of Conduct, which outlines our expectations and provides guidance on how our Team Members can carry out their daily activities ethically and responsibly.
Governance At EZCORP, we believe that “The Way We Do Business is as Important as the Business We Do.” This belief underlies our Code of Conduct, which outlines our expectations and provides guidance to our Team Members on carrying out their daily activities ethically and responsibly.
The federal Gun Control Act of 1968 and regulations issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives also require each pawn store dealing in firearms to maintain a permanent written record of all receipts and dispositions of firearms.
The federal Gun Control Act of 1968 and regulations issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives also require each pawn store dealing in firearms to maintain a permanent written record of acquisition and disposition of firearms.
In fiscal 2024, PSC accounted for approximately 38% of our total revenues and 64% of our gross profit. In the U.S., PSC rates generally vary between 12% and 25% per month as permitted by applicable law, and the pawn term generally ranges between 30 and 90 days. Individual pawn transactions typically average between $170 and $200.
In fiscal 2025, PSC accounted for approximately 37% of our total revenues and 64% of our gross profit. In the U.S., PSC rates generally vary between 12% and 25% per month as permitted by applicable law, and the pawn term generally ranges between 30 and 90 days. Pawn transactions typically average between $200 and $220.
In GPMX, PSC rates generally vary between 12% and 18% per month as permitted by applicable law, and the pawn primary term is 30 days. Individual pawn transactions are made in the local currency of the country and typically average between $120 and $140 using the average exchange rates for fiscal 2024.
In GPMX, PSC rates generally vary between 12% and 18% per month as permitted by applicable law, and the pawn term is 30 days. Pawn transactions are made in the local currency of the country in which the transaction occurs and typically average between $120 and $140 using the average exchange rates for fiscal 2025.
To reduce energy consumption, we have installed energy-efficient LED lighting in 78% of our U.S. stores and 62% of Latin America stores. • In all of our facilities, including our corporate support offices, we promote environmental stewardship by reducing consumption, recycling paper products (approximately 1 million pounds across all U.S. locations during fiscal 2024) and responsibly disposing of end-of-life computers, electronics and related accessories through recycling or other sound e-waste processing.
To reduce energy consumption, we have installed energy-efficient LED lighting in 85% of our U.S. stores and 60% of Latin America stores. • In all of our facilities, including our corporate support offices, we promote environmental stewardship by reducing consumption, recycling paper products (approximately 861,344 pounds across all U.S. locations during fiscal 2025) and responsibly disposing of end-of-life computers, electronics and related accessories through recycling or other sound e-waste processing.
ITEM 1. BUSINESS Purpose, Vision and Strategy EZCORP, Inc. is a leading provider of pawn services in the United States (“U.S.”) and Latin America with 1,279 locations and more than 8,000 Team Members. We are a Delaware corporation headquartered in Austin, Texas.
ITEM 1. BUSINESS Purpose, Vision and Strategy EZCORP, Inc. is a leading provider of pawn services in the United States (“U.S.”) and Latin America with 1,360 locations and approximately 8,500 Team Members. We are a Delaware corporation headquartered in Austin, Texas.
These competitive conditions may have an impact on our revenues, profitability and ability to expand. We compete with other pawn stores, credit service organizations, banks, credit unions and other financial institutions, such as consumer finance companies.
These competitive conditions may have an impact on our revenues, profitability and ability to expand. We compete with other pawn stores, banks, alternative lenders and loan brokers, credit unions and other financial institutions, such as consumer finance companies.
Our values — People, Pawn, Passion — define our priorities as a business, and our Guiding Principles — Leadership, Customer Service, Accountability, Respect, Diversity and Sustainability — characterize the expectations for how we interact with Team Members, customers and communities.
Our values — People, Pawn, Passion — define our priorities as a business, and our Guiding Principles — Leadership, Customer-Centricity, Accountability, Respect, Belonging and Sustainability — establish the expectations for how we interact with Team Members, customers and communities.
As a significant portion of our inventory and sales involve gold and jewelry, our results can be influenced by the market price of gold and diamonds.
Because a significant portion of our inventory and sales involve gold and jewelry, our results may be influenced by the market price of gold and diamonds.
Thus, we do not maintain or rely on mass supply, distribution or warehousing facilities. 9 Table of Contents • Virtually all of the merchandise we sell is pre-owned, which contributes to pre-owned goods recycling and the circular economy.
Thus, we do not maintain or rely on mass supply, distribution or warehousing facilities. • Virtually all of the merchandise we sell is pre-owned, contributing to goods recycling and the circular economy.
The majority of our pawn stores, voluntarily or pursuant to applicable laws, provide periodic (generally daily) reports to local law enforcement agencies. These reports provide local law enforcement with information about the items received from customers (whether through pawn or purchase), including a detailed description of the goods involved and the name and address of the customer.
Pursuant to applicable law, the majority of our pawn stores provide periodic (generally daily) reports of pawn and purchase transactions to local law enforcement agencies. These reports include information about the merchandise received from customers (whether through pawn or purchase), including a detailed description of the goods and the name and address of the customer.
Communications to the hotline (which is managed by an independent third party) are routed to appropriate functions (whether Human Resources, Legal or Compliance), and in some cases directly to the Board of Directors, for investigation and resolution.
Communications to the hotline (which is managed by an independent third party) are routed to appropriate functional areas (including Human Resources, Legal or Compliance), and, in certain cases, directly to the Board of Directors, for investigation and resolution.
We earn pawn service charges (“PSC”) for those cash advances, and the PSC rate varies by state and transaction size. At the time of the transaction, we take possession of the pawned collateral, which consists of tangible personal property, generally jewelry, consumer electronics, tools, sporting goods and musical instruments.
We earn pawn service charges (“PSC”) for those cash advances, which vary by jurisdiction and transaction size. At the time of the pawn transaction, we take possession of the pawned collateral, which consists of tangible personal property, primarily jewelry, consumer electronics, tools, sporting goods or musical instruments.
In the U.S., we also offer a jewelry VIP package, which guarantees customers a minimum future pawn advance amount on the item sold, allows them full credit if they trade in the item to purchase a more expensive piece of jewelry and provides minor repair service on the item sold.
In the U.S., we also offer a jewelry VIP package, which ensures customers a certain minimum future pawn advance amount on the item sold, allows them to trade in the item towards purchase of a more expensive piece of jewelry and provides minor cleaning and repair service on the item.
Talent Management and Development We employ approximately 8,000 Team Members across all our geographies, including approximately 3,600 in United States, 3,500 in Mexico and 900 in Central America. We seek to hire and promote Team Members to lead the way today and to step into greater roles in the future.
Talent Management and Development We employ approximately 8,500 Team Members across the Company, including approximately 3,700 in United States, 3,800 in Mexico and 1,000 in Central America. We seek to hire and promote Team Members to lead the way today and to step into greater roles in the future.
Our investment in store-level Team Members produced tangible results during fiscal 2024: • High scoring questions in our 2024 Global Employee Engagement Survey included “I know the career path(s) available to me at EZCORP” (with an 89% favorability rating) and “I have good opportunities to learn and develop at EZCORP” (with an 86% favorability rating). • Over 85% of managerial positions were filled via internal promotion.
Our investment in store-level Team Members produced tangible results during fiscal 2025: • High scoring questions in our 2025 Global Employee Engagement Survey included “I have good opportunities to learn and develop at EZCORP” (with an 86 favorability rating) and “I have good career opportunities at EZCORP” (with an 84 favorability rating). • Over 82% of managerial positions were filled via internal promotion.
We must also comply with various federal requirements regarding the disclosure of the annual percentage rate, finance charge, amount financed, total of payments and payment schedule related to each pawn loan transaction. Additional federal regulations applicable to our pawn lending business are described in “Other Regulations” below.
We also must comply with various state and federal consumer lending laws, including those requiring the disclosure of the annual 11 Table of Contents percentage rate, finance charge, amount financed, total of payments and payment schedule related to each pawn loan transaction. Additional federal regulations applicable to our pawn lending business are described in “Other Regulations” below.
Growth and Expansion Part of our strategy is to grow the number of locations we operate through opening new (“de novo”) locations and through acquisitions in both Latin America and the U.S. and potential new markets.
Our corporate office in Austin, Texas is LEED Certified Silver status. Growth and Expansion Part of our strategy is to grow the number of locations we operate through opening new (“de novo”) locations and through acquisitions in both Latin America and the U.S. and potential new markets.
In Mexico, PSC rates generally vary between 15% and 21% per month as permitted by applicable law, and the pawn primary term is 30 days. Individual pawn transactions typically average between 1,200 and 1,500 Mexican pesos, or approximately $65 to $85 on average using the average exchange rate for fiscal 2024.
In Mexico, PSC rates generally vary between 15% and 21% per month as permitted by applicable law, and the pawn term is 30 days. Pawn transactions typically average between 1,400 and 1,700 Mexican pesos, or approximately $70 to $85, using the average exchange rate for fiscal 2025.
In our 2024 Global Employee Engagement Survey, 83% of participants responded positively to the question, “I feel a sense of belonging at EZCORP.” In fiscal 2024, we continued to further our Diversity and Inclusion strategy by focusing on the following initiatives: • Commitment and Accountability — Demonstrate commitment and accountability through corporate policy, communications and actions. • Workplace Inclusion — Foster work environments that value diversity and inclusion and encourage collaboration, flexibility and fairness. • Diverse Workforce — Recruit and promote from diverse, qualified candidate pools to increase diversity of perspectives and experiences.
In our 2025 Global Employee Engagement Survey, 84% of participants responded positively to the question, “I feel a sense of belonging at EZCORP.” In fiscal 2025, we continued to further our belonging strategy by focusing on the following initiatives: • Commitment and Accountability — Demonstrate commitment and accountability through corporate policy, communications and actions. • Workplace Inclusion — Foster work environments that value belonging and encourage collaboration, flexibility and fairness.
Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of mail or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person. • The Department of Defense regulations promulgated under the Military Lending Act limit the annual percentage rate charged on certain consumer loans (including pawn loans) made to active military personnel or their dependents to 36%.
Specifically, the anti-bribery provisions of the FCPA prohibit the willful use of mail or any means of instrumentality of interstate commerce corruptly in furtherance of any offer, payment, promise to pay, or authorization of the payment of money or anything of value to any person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a foreign official to influence the foreign official in 12 Table of Contents his or her official capacity, induce the foreign official to do or omit to do an act in violation of his or her lawful duty, or to secure any improper advantage in order to assist in obtaining or retaining business for or with, or directing business to, any person. • The Military Lending Act and regulations promulgated pursuant thereto limit the annual perce ntage rate charged on certain consumer loans (including pawn loans) made to active military personnel or their dependents to 36%. • Some of our pawn stores in the U.S. deal in firearms and each of those stores maintains a federal firearms license as required by federal law and, in some jurisdictions, a similar firearms license required by state law.
Operations and Risk Management Our pawn operations are designed to provide the optimum level of support to the store teams, providing coaching, mentoring and problem solving to identify opportunities to better serve our customers and position us to be the leader in customer service and satisfaction.
Operations and Risk Management Our pawn operations are designed to provide the optimum level of support to the store teams, providing coaching and mentoring to enable our teams to best serve our customers and position us as a leader in customer service and satisfaction.
In our pawn stores we provide: • An onboarding program that blends online and hands-on training in the art and science of pawnbroking; • Career path programs aligned with our talent and succession strategy, emphasizing career progression and individual development programs; and • A learning experience that unlocks and accelerates Team Member potential as well as business growth.
In our pawn stores we provide: • Onboarding programs that incorporate online and hands-on training in the art and science of pawnbroking; • Career path programs aligned with our talent and succession strategy, emphasizing career progression and individual development programs; and • Learning experiences that unlock and accelerate Team Member potential and business growth.
Additional rules regulate various aspects of the day-to-day pawn operations, including the pawn service charges that a pawn store may charge, the maximum amount of a pawn loan, the minimum or maximum term of a pawn loan, the content and format of the pawn ticket, and the length of time after a pawn loan default that a pawn store must hold a pawned item before it can be offered for sale.
Additional rules regulate various aspects of the day-to-day pawn operations, including maximum PSC and loan amounts, minimum and/or maximum terms of a pawn loan, content and format of the pawn contract, and the length of time after expiration of a pawn loan that a store must hold a pawned item before it can be offered for sale.
Committee members are instrumental in the executive talent management and succession processes, including the review and attainment of annual objectives for our executive officers. All executive officers have a minimum of one objective related to People, generally broken into the areas of Employee Engagement Scores, Voluntary Attrition and Inclusion.
Committee members are instrumental in the executive talent management and succession processes, including the review and attainment of annual objectives for our executive officers. All executive officers have a minimum of one annual performance objective related to People, typically relating to Team Member engagement and voluntary attrition.
Our engagement score is ten points higher than the global benchmark, which contains data from over 1,100 companies of varying size across a variety of industries (Finance, Healthcare, Manufacturing, Professional Services, Retail, Technology and Utilities) and includes results from over eight million respondents located in over 150 countries. Our top strengths were Career, Customer Focus and Continuous Improvement.
Our engagement score is eleven points higher than the global benchmark, assembled from data of over 1,200 companies of varying size across a variety of industries (Finance, Healthcare, Manufacturing, Professional Services, Retail, Technology and Utilities) and includes results from over 11 million respondents located in over 160 countries. Our top strengths were Purpose, Customer Focus and Growth.
Our ethical principles include Honesty, Integrity, Reliability, Loyalty, Respect, Responsibility, Fairness, Caring, Leadership and Diversity, and these principles form the foundation for how we govern our business. • Even though we are a “Controlled Company” under the Nasdaq Listing Rules, we maintain the governance standards required of all publicly-listed Nasdaq companies, including: • Independent directors comprise a majority of our Board of Directors.
Our guiding principles include Leadership, Customer-Centricity, Accountability, Respect, Belonging and Sustainability, and these principles form the foundation for how we govern our business. • Though we are a “Controlled Company” under the Nasdaq Listing Rules, we maintain the governance standards required of all publicly-listed Nasdaq companies, including: • Independent directors comprise a majority of our Board of Directors.
Various tools are used globally to demonstrate commitment to our principles, values and positive culture, including a plain-language Code of Conduct and supporting policies, annual training on expectations and clear communications from executive management reinforcing ethical behavior and a positive culture.
We enlist a multitude of tools to demonstrate commitment to our principles, values and positive culture, from our plain-language Code of Conduct and supporting policies and annual training to our clear, honest, and frequent communications, including those from executive management, reinforcing ethical behavior and positive culture.
Failure to observe applicable regulations could result in a revocation or suspension of pawn licenses, the imposition of fines or requirements to refund service charges and fees and other civil or criminal penalties.
Failure to observe applicable regulations can result in a revocation or suspension of pawn licenses, the imposition of fines, requirements to refund PSC or other penalties.
Race and Ethnicity Demographics (1) (2) Fiscal 2024 Global Gender Demographics (2) (1) The term underrepresented minority is used to describe diverse populations, including African American, Hispanic, Asian and Native American Team Members who self-identified their race and ethnicity at hire.
We also employ a diverse workforce, embodying a broad array of perspectives and experiences. Fiscal 2025 U.S. Race and Ethnicity Demographics (1) (2) Fiscal 2025 Global Gender Demographics (2) (1) The term underrepresented minority is used to describe diverse populations, including African American, Hispanic, Asian and Native American Team Members who self-identified their race and ethnicity at hire.
Relevant aspects of the law specifically affecting the pawn industry include monthly reporting on “vulnerable activities,” which include pawn transactions exceedin g 174,254.85 Mexican pesos and retail transactions of precious metals exceeding 174.254.85 Mexican pesos. Retail transactions of precious metals in cash exceeding 348,509.70 Mexican pesos are prohibited.
Relevant aspe cts of the law specifically affecting the pawn industry include monthly reporting on “vulnerable activities,” which include pawn transactions exceeding 181,589.70 Mexican pesos and retail transactions of precious metals exceeding 181,589.70 Mexican pesos. Retail transactions of precious metals in cash exceeding 363,179.40 Mexican pesos are prohibited.
Our retail activities rely primarily on local sourcing of pre-owned merchandise and the recirculation of those items back into the neighborhoods we serve. In short, our business is unique, essential and sustainable.
For many of our customers, pawn transactions provide an essential and financially responsible lifeline within their own neighborhoods for meeting their unexpected expenses. Our retail activities rely primarily on local sourcing of pre-owned merchandise and the recirculation of those items back into the neighborhoods we serve. In short, our business is unique, essential and sustainable.
Additionally, on an annual basis (U.S.) gender and racial/ethnic analysis is performed to ensure pay equity. • We engage a nationally recognized outside compensation and benefits consulting firm to independently evaluate the effectiveness of our executive compensation and to provide benchmarking against our selected peer group, which includes similarly-sized companies from relevant industries that serve similar customer bases, operate in the retail or consumer finance industries and typically have similar operating dynamics. • We align our executives’ long-term equity compensation with our shareholders’ interests by linking realizable pay with stock performance. • All employees are eligible for paid time off, Company-paid life insurance and participation in a tenure award program which recognizes their commitment and loyalty by awarding EZ+ Rewards points based on their years of service.
Specifically: • We provide wages and incentive plans that are competitive and consistent based on position, skill level, experience, knowledge and geographic location. • We engage a nationally recognized outside compensation and benefits consulting firm to independently evaluate the effectiveness of our executive compensation and to provide benchmarking against our selected peer group, which includes similarly-sized companies that have commonality with us on customer base, industry and operating dynamics. • We align our executives’ long-term equity compensation with our shareholders’ interests by linking realizable pay with stock performance. • All Team Members are eligible for paid time off, Company-paid life insurance and participation in a tenure award program that recognizes their commitment and loyalty by awarding EZ+ Rewards points based on their years of service.
Licensing requirements typically relate to financial responsibility and character and may establish restrictions on where pawn stores can operate.
Licensing requirements usually include minimum financial responsibility, business know-how, and character requirements and may establish restrictions on where pawn stores can operate.
Other Regulations — Our pawn business in Mexico is subject to the General Law of Administrative Responsibility (“GLAR”), which requires us to implement an integrity policy that contains mechanisms to ensure integrity standards throughout the organization.
State and local agencies often have authority to suspend store operations pending resolution of actual or alleged regulatory, licensing and permitting issues. Other Regulations — Our pawn business in Mexico is subject to the General Law of Administrative Responsibility (“GLAR”), which requires us to implement an integrity policy that contains mechanisms to ensure integrity standards throughout the organization.
The industry consists of a few large operators (of which we are the second largest) and then independent operators who primarily own one-to-three locations . The pawn industry in Latin America is also fragmented, but less so than in the U.S. The industry consists of pawn stores owned by independent operators and chains, including some not-for-profit organizations.
The pawn industry in Latin America also is fragmented, but less so than in the U.S. The Latin American pawn industry consists of independent for-profit operators, some of which operate chains of stores, and certain not-for-profit organizations. We are the second largest for-profit operator in Mexico and the largest operator in Guatemala.
In Mexico, we have registered the names “EMPEÑO FÁCIL,” “Bazareño,” “Presta Dinero”, “Montepio San Patricio” and “Cash Apoyo Efectivo” with the Instituto Mexicano de la Propiedad Industrial. We have registered the name “GuatePrenda” in Guatemala and the name “MaxiEfectivo” in Guatemala, El Salvador and Honduras.
We have registered the names EZPAWN, Value Pawn & Jewelry and EZCORP, among others, with the United States Patent and Trademark Office. In Mexico, we have registered the names “EMPEÑO FÁCIL,” “Cash Apoyo Efectivo,” “Bazareño,” “Presta Dinero” and “Montepio San Patricio” with the Instituto Mexicano de la Propiedad Industrial.
We now own a total of 1,279 stores, 737 in Latin America (58%) and 542 in the U.S. (42%). In fiscal 2024, the Latin America stores represented 27% of our consolidated gross profit as the average scale of Latin America pawn stores is smaller than in the U.S.
In fiscal 2025, the Latin America stores represented 26% of our consolidated gross profit as the average scale of Latin America pawn stores is smaller than in the U.S.
Mexico Regulations Pawn Regulations — Federal law in Mexico provides for administrative regulation of the pawnshop industry by Procuraduría Federal del Consumidor (PROFECO), Mexico’s primary federal consumer protection agency.
Certain U.S. federal laws may apply to our operations outside of the U.S., in which case we comply with such laws on an extraterritorial basis. Mexico Regulations Pawn Regulations — Federal law in Mexico provides for administrative regulation of the pawnshop industry by Procuraduría Federal del Consumidor (PROFECO), Mexico’s primary federal consumer protection agency.
To ensure we address issues raised in the survey, all people leaders at the District Manager and above level will have Engagement Objectives for fiscal 2025 guided by actions that will yield the greatest business and Team Member impact.
Our focus areas for improvement included Work-Life Balance, Action Taking and Recognition. Team Members provided over 10,000 comments. To ensure we address issues raised in the survey, all people leaders at the District Manager and above level have Engagement Objectives for fiscal 2026, guided by actions anticipated to yield the most significant business and Team Member impact.
We provide unique options for our customers to satisfy their needs for cash — options that are not offered by traditional lenders such as banks and credit unions, credit card providers, or installment and short-term lenders. For many of our customers, pawn transactions provide an essential and financially responsible lifeline for meeting their unexpected expenses.
Our pawnbroking and related retail sales activities inherently contribute to the “circular economy” and promote environmental sustainability. We provide unique options for our customers to satisfy their cash needs — options that are not offered by traditional lenders, such as banks and credit unions, credit card providers or installment and short-term lenders.
Seasonality and Quarterly Results In the U.S., PSC is historically highest in our fourth fiscal quarter (July through September) due to a higher average PLO balance during the summer and lowest in our third fiscal quarter (April through June) following the tax refund season, and merchandise sales are highest in our first and second fiscal quarters (October through March) due to the holiday season, jewelry sales surrounding Valentine’s Day and the availability of tax refunds.
We see opportunity for further expansion in Latin America and the U.S. through acquisitions and de novo openings. 10 Table of Contents Seasonality and Quarterly Results In the U.S., PSC historically is highest in our fourth fiscal quarter (July through September) due to a higher average PLO balance during the summer and is lowest in our third fiscal quarter (April through June) following the tax refund season.
During fiscal 2024, we continued our expansion in Latin America and the U.S. with the opening of 41 de novo stores (20 in Mexico, 17 in Guatemala, 3 in Honduras and 1 in Nevada) and the acquisition of 13 stores in the U.S. We also consolidated 6 stores, 5 in Latin America and 1 in the U.S.
During fiscal 2025, we continued our expansion in Latin America and the U.S. with the opening of 40 de novo stores (20 in Mexico, 14 in Guatemala, 4 in Honduras and 2 in El Salvador ) and the acquisition of 52 stores (48 in Latin America and 4 in the U.S.).
In addition, we must comply with the Brady Handgun Violence Prevention Act, which requires us to conduct a background check before releasing, selling or otherwise disposing of firearms.
In addition, we must comply with the Brady Handgun Violence Prevention Act, which requires us to conduct a criminal background check before releasing, selling or otherwise disposing of firearms. Under certain circumstances, the federal Consumer Financial Protection Bureau (“CFPB”) may be able to exercise regulatory authority over the U.S. pawn industry through its rule making authority.
The Federal Law on the Protection of Personal Data Held by Private Parties requires us to protect our customers’ personal information.
The Federal Law on the Protection of Personal Data Held by Private Parties requires us to protect our customers’ personal information. This law requires us to inform customers if we share customer personal information with third parties and to post (both online and in-store) our Data Privacy Policy.
Health and Safety Our commitment to our Team Members is to provide a safe and injury-free workplace. We continue to invest in programs designed to improve physical, mental and social well-being. Management and Oversight The People and Compensation Committee of the Board of Directors has primary responsibility for analyzing, advising and (as appropriate) approving executive compensation.
Our collective goal is to prevent injuries, create a secure workplace and promote Team Member well-being. Management and Oversight In addition to the role of management in designing effective compensation programs for all Team Members, the People and Compensation Committee of the Board of Directors has primary responsibility for analyzing, advising and (as appropriate) approving executive compensation.
Regulation Compliance with federal, state and local laws and regulations is an integral part of how we manage our business, and we conduct our business in material compliance with all of these rules. The following is a general description of significant regulations affecting our business. U.S.
We have registered the name “GuatePrenda” in Guatemala and the name “MaxiEfectivo” in Guatemala, El Salvador and Honduras. Regulation Compliance with federal, state and local laws and regulations is an integral part of how we manage our business, and we conduct our business in material compliance with the law.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAs a result, geographically isolated natural disasters could have a material adverse effect on our overall operations and financial performance. Goodwill comprises a significant portion of our total assets. We assess goodwill for impairment at least annually, which could result in a material, non-cash write-down and could have a material adverse effect on our results of operations and financial conditions.
Biggest changeWe assess goodwill for impairment at least annually, which could result in a material, non-cash write-down and could have a material adverse effect on our results of operations and financial conditions. The carrying value of our goo dwill was $324.9 million, or approximately 17% of our total assets, as of September 30, 2025.
See Note 7: Debt of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” If the conversion feature of any of those convertible notes is triggered, holders will be entitled to convert the notes at their option at any time during specified periods.
See Note 8: Debt of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” If the conversion feature of any of those convertible notes is triggered, holders will be entitled to convert the notes at their option at any time during specified periods.
See Note 3: Strategic Investments of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” If the fair value of our investment declines and we determine that such decline is other-than-temporary, we may be required to further impair our investment and recognize the related investment loss, which would adversely affect our results of operations and financial position in the period of impairment.
See Note 4: Strategic Investments of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” If the fair value of our investment declines and we determine that such decline is other-than-temporary, we may be required to further impair our investment and recognize the related investment loss, which would adversely affect our results of operations and financial position in the period of impairment.
We have recorded a number of impairments to the carrying value of our investment in Cash Converters in the past. After an analysis of Cash Converters’ stock price performance and other factors, we determined the fair value of our investment in Cash Converters at September 30, 2024 was greater than its carrying value.
We have recorded a number of impairments to the carrying value of our investment in Cash Converters in the past. After an analysis of Cash Converters’ stock price performance and other factors, we determined the fair value of our investment in Cash Converters at September 30, 2025 was greater than its carrying value.
See Note 1: Organization and Summary of Significant Accounting Policies and Note 6: Goodwill and Intangible Assets of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data” for a discussion of our annual impairment tests performed for goodwill and indefinite-lived intangible assets.
See Note 1: Organization and Summary of Significant Accounting Policies and Note 7: Goodwill and Intangible Assets of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data” for a discussion of our annual impairment tests performed for goodwill and indefinite-lived intangible assets.
The statute of limitations applicable to most of the pre-closing years has now expired, but AlphaCredit has informed us that they filed an amended return for 2016, which they claim extends the statute of limitations for that year. We are continuing to pursue release of the funds.
The statute of limitations applicable to most of the pre-closing years has now expired, but AlphaCredit has informed us that they filed an amended return for 2016, which they claim extends the statute of limitations for that year to February 2027. We are continuing to pursue release of the funds.
To the extent that any of such companies are not successful, we may be required in future periods to impair our investment and recognize related investment losses. We may incur property, casualty or other losses, including losses related to natural disasters such as hurricanes, earthquakes and volcanoes. Not all such losses will be covered by insurance.
To the extent that any of such companies are not successful, we may be required in future periods to impair our investment and recognize related investment losses. 17 Table of Contents We may incur property, casualty or other losses, including losses related to natural disasters such as hurricanes, earthquakes and volcanoes. Not all such losses will be covered by insurance.
Cohen has agreed that, as a member of the Board of Directors, he will not participate in any Board vote regarding his position as Executive Chairman. We have a significant firearms business in the U.S., which exposes us to increased risks of regulatory fines and penalties, lawsuits and related liabilities.
Cohen has agreed that, as a member of the Board of Directors, he will not participate in any Board vote regarding his position as Executive Chairman. We are in the firearms business in the U.S., which exposes us to increased risks of regulatory fines and penalties, lawsuits and related liabilities.
A significant weakening of any of these foreign currencies could result in lower assets and earnings in U.S. dollars, resulting in a potentially material adverse impact on our financial position, results of operations and cash flows. Litigation and regulatory proceedings could have a material adverse impact on our business.
A significant weakening of any of these foreign currencies could result in lower assets and earnings in U.S. dollars, resulting in a potentially material adverse impact on our financial position, results of operations and cash flows. 19 Table of Contents Litigation and regulatory proceedings could have a material adverse impact on our business.
Taking into consideration the shares that are issued and outstanding, as well as the shares that have been reserved for issuance pursuant to convertible notes, outstanding equity incentive compensation awards and the conversion of the Class B Common Stock, we had approximately 7.7 million shar es of authorized Class A Common Stock available for other uses as of September 30, 2024 .
Taking into consideration the shares that are issued and outstanding, as well as the shares that have been reserved for issuance pursuant to convertible notes, outstanding equity incentive compensation awards and the conversion of the Class B Common Stock, we had approximately 9.1 million shar es of authorized Class A Common Stock available for other uses as of September 30, 2025 .
We are also subject to various laws and regulations designed to prevent money laundering or the financial support of terrorism or other illegal activity, including the USA PATRIOT Act and the Bank Secrecy Act in the U.S. and The Federal Law for the Prevention and Identification of Transactions with Funds From Illegal Sources in Mexico.
We are also subject to various laws and regulations designed to prevent money laundering or the financial support of terrorism or other illegal activity, including the USA PATRIOT Act and the Bank Secrecy Act in the U.S., The Federal Law for the Prevention and Identification of Transactions with Funds From Illegal Sources in Mexico, and various economic and trade sanctions laws and regulations, including those administered by the U.S.
A significant portion of our U.S. business is concentrated in Texas and Florida. As of September 30, 2024, more than 63% of our U.S. pawn stores were located in Texas (46%) and Florida (17%), and those stores account for a significant portion of our revenues and profitability.
A significant portion of our U.S. business is concentrated in Texas and Florida. As of September 30, 2025, more than 62% of our U.S. pawn stores were located in Texas (45%) and Florida (17%), and those stores account for a significant portion of our revenues and profitability.
The conversion feature of our convertible notes, if triggered, may adversely affect our financial condition and operating results. We have a total of $333.4 million of converti ble notes outstanding as of September 30, 2024.
The conversion feature of our convertible notes, if triggered, may adversely affect our financial condition and operating results. We have a total of $230.0 million of converti ble notes outstanding as of September 30, 2025.
We have foreign operations in Latin America (primarily Mexico, but also Guatemala, El Salvador and Honduras) and an equity investment in Australia. Our assets and investments in, and earnings and dividends from each of these countries must be translated to U.S. dollars from their respective functional currencies.
We have foreign operations in Latin America with foreign exchange risk (Mexico, Guatemala, and Honduras) and an equity investment in Australia. Our assets and investments in, and earnings and dividends from each of these countries must be translated to U.S. dollars from their respective functional currencies.
We expect that number will be reduced to 7.0 million fol lowing the issuance of currently approved Long-Term Incentive awards in November 2024 .
We expect that number will be reduced to 8.5 million fol lowing the issuance of currently approved Long-Term Incentive awards in November 2025 .
Further, our ability to offer equity-based compensation to our management team may also be limited, which could adversely affect our ability to align management’s incentives with stockholders or attract and retain key management personnel. General Risks Public health issues could adversely affect our financial condition, results of operations or liquidity.
Further, our ability to offer equity-based compensation to our management team may also be limited, which could adversely affect our ability to align management’s incentives with stockholders or attract and retain key management personnel.
In addition, the existence of the convertible notes may encourage short selling by market participants because the conversion of such notes could be used to satisfy short positions, or anticipated conversion of the notes into shares of our Class A Common Stock could depress the price of our Class A Common Stock. 18 Table of Contents We have a limited number of unreserved shares available for future issuance, which may limit our ability to conduct future financings and other transactions and our ability to offer equity awards to management.
In addition, the existence of the convertible notes may encourage short selling by market participants 18 Table of Contents because the conversion of such notes could be used to satisfy short positions, or anticipated conversion of the notes into shares of our Class A Common Stock could depress the price of our Class A Common Stock.
All of these matters are subject to inherent uncertainties, and unfavorable rulings could occur, which could include monetary damages, fines and penalties or other relief.
All of these matters are subject to inherent uncertainties, and unfavorable rulings could occur, which could include monetary damages, fines and penalties or other relief. Any unfavorable ruling or outcome could have a material adverse effect on our results of operations or could negatively affect our reputation.
Conversion of our convertible notes into stock may dilute the ownership interests of existing stockholders or may otherwise depress the price of our Class A Common Stock. If it were to occur, the conversion of convertible notes would dilute the ownership interests of existing stockholders to the extent we deliver shares of Class A Common Stock upon conversion.
If it were to occur, the conversion of convertible notes would dilute the ownership interests of existing stockholders to the extent we deliver shares of Class A Common Stock upon conversion. Any sales in the public market of such shares could adversely affect prevailing market prices of our Class A Common Stock.
If one or more holders elect to convert their notes, we may be required, or may choose, to settle the obligation through the payment of cash, which could adversely affect our liquidity.
If one or more holders elect to convert their notes, we may settle the obligation through the payment of cash, which could adversely affect our liquidity. Conversion of our convertible notes into stock may dilute the ownership interests of existing stockholders or may otherwise depress the price of our Class A Common Stock.
Any unfavorable ruling or outcome could have a material adverse effect on our results of operations or could negatively affect our reputation. 19 Table of Contents Under our certificate of incorporation, we are generally obligated to indemnify our directors and officers for costs and liabilities they incur in their capacity as directors or officers of the Company.
Under our certificate of incorporation, we are generally obligated to indemnify our directors and officers for costs and liabilities they incur in their capacity as directors or officers of the Company.
The policies are subject to deductibles and exclusions that result in our retention of a level of risk on a self-insurance basis.
The policies are subject to deductibles and exclusions that result in our retention of a level of risk on a self-insurance basis. Losses not covered by insurance could be substantial and may increase our expenses, which could harm our results of operations and financial condition.
In addition, natural disasters could have a significant negative impact on our business beyond physical damage to property, including a reduction of our PLO, inventory, pawn service charges and merchandise sales. Only limited portions, if any, of those negative impacts will be covered by applicable business interruption insurance policies.
As noted above, not all physical damage that we incur as a result of any such natural disaster will be covered by insurance due to policy deductibles and risk retentions. In addition, natural disasters could have a significant negative impact on our business beyond physical damage to property, including a reduction of our PLO, inventory, PSC and merchandise sales.
See “Part I, Item 1 — Business — Regulation.” Further, our business is expanding in countries and regions that are less developed and are generally recognized as potentially more corrupt business and political environments. While we maintain controls and policies to ensure compliance with applicable laws and regulations, these controls and policies may prove to be less than effective.
Department of the Treasury’s Office of Foreign Assets Control. See “Part I, Item 1 — Business — Regulation.” Further, our business is expanding in countries and regions that are less developed and are generally recognized as potentially more corrupt business and political environments.
Losses not covered by insurance could be substantial and may increase our expenses, which could harm our results of operations and financial condition. 17 Table of Contents We have significant operations located in areas that are susceptible to hurricanes (notably the Atlantic and Gulf Coast regions of Florida, the Gulf Coast regions of Texas including Houston, as well as Mexico and Central America).
We have significant operations located in areas that are susceptible to hurricanes (notably the Atlantic and Gulf Coast regions of Florida, the Gulf Coast regions of Texas including Houston, as well as Mexico and Central America). Certain areas of our operations are also susceptible to other types of natural disasters such as earthquakes, volcanoes and tornadoes.
Our certificate of incorporation currently authorizes us to issue up to 100 million shares of Class A Common Stock.
We have a limited number of unreserved shares available for future issuance, which may limit our ability to conduct future financings and other transactions and our ability to offer equity awards to management. Our certificate of incorporation currently authorizes us to issue up to 100 million shares of Class A Common Stock.
Removed
Certain areas of our operations are also susceptible to other types of natural disasters such as earthquakes, volcanoes and tornadoes. As noted above, not all physical damage that we incur as a result of any such natural disaster will be covered by insurance due to policy deductibles and risk retentions.
Added
Only limited portions, if any, of those negative impacts will be covered by applicable business interruption insurance policies. As a result, geographically isolated natural disasters could have a material adverse effect on our overall operations and financial performance. Goodwill comprises a significant portion of our total assets.
Removed
The carrying value of our goo dwill was $306.5 million, or approximately 21% of our total assets, as of September 30, 2024.
Added
Our incurrence of debt in the form of the 2032 Senior Notes could have a material adverse effect on our financial condition and results of operations In March 2025, we issued $300.00 million aggregate principal amount of the Company’s 7.375% senior notes due 2032 (the “2032 Senior Notes”).
Removed
In addition, even if holders do not elect to convert their notes, we could be required under applicable accounting rules to reclassify all or a portion of the outstanding principal of the convertible notes as a current rather than long-term liability, which would result in a material reduction of our net working capital.
Added
See Note 8: Debt of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data” of this Report. The indebtedness could increase the cost of future financing or otherwise limit our ability to obtain financing, including the refinancing of existing debt.
Removed
Any sales in the public market of such shares could adversely affect prevailing market prices of our Class A Common Stock.
Added
The application of cash flow to repayment of our indebtedness could restrict funds available for other uses, including working capital, growth, and other general corporate purposes, which could adversely affect our financial condition and results of operations. General Risks Public health issues could adversely affect our financial condition, results of operations or liquidity.
Added
While we maintain controls and policies to ensure compliance with applicable laws and regulations, these controls and policies may prove to be less than effective.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe cybersecurity program is led by our Chief Information Security Officer (“CISO”) who reports to the Chief Legal Officer. The Internal Audit Department monitors and reviews our cybersecurity initiatives. The Board of Directors is responsible for overseeing and monitoring the material risks facing the Company.
Biggest changeThis expertise includes designing and implementing cybersecurity strategies, identifying risks, and managing incident response, with requisite knowledge of security standards. The CISO reports to our Chief Legal Officer, and our Internal Audit Department monitors and reviews our cybersecurity initiatives. 21 Table of Contents The Board of Directors is responsible for overseeing and monitoring the material risks facing the Company.
The CISO reports directly to the Audit and Risk Committee on cybersecurity risks on a quarterly basis. 21 Table of Contents To date, we have not identified any cybersecurity threats or incidents that have had or are likely to have a material impact on our business, financial condition or results of operations.
To date, we have not identified any cybersecurity threats or incidents that have had or are likely to have a material impact on our business, financial condition or results of operations.
The Audit and Risk Committee of the Board is charged with overseeing our risk management framework, including cybersecurity risks.
The Audit and Risk Committee of the Board is charged with overseeing our risk management framework, including cybersecurity risks. The CISO provides reports on cybersecurity matters and risks directly to the Audit and Risk Committee on a quarterly basis.
Added
The cybersecurity program is led by our Chief Information Security Officer (“CISO”) who has 20 years of relevant work experience and, together with other members of our information technology, security, and compliance teams, maintains expertise in overseeing cybersecurity programs and in leading internal teams and third-party consultants and providers.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeOur stores are open six or seven days a w eek. Leases for our U.S. locations generally have initial terms ranging from three to ten years and typically allow for renewals in increments of three-to-five years.
Biggest changeOur stores are open six or seven days a w eek. Leases for our U.S. locations generally have initial terms ranging from five to ten years and typically allow for renewals in increments of three-to-five years. Our primary corporate office is located in Austin, Texas and is leased through October 2035 with annual escalating rent payments.
In addition to our store leases, we lease approximately 108,000 square feet of corporate office space in Austin, Texas (70,742 square feet of which is being subleased or made available for sublease to other tenants). We lease other corporate office space in Mexico (8,600 square feet), Guatemala (3,500 square feet), El Salvador (4,500 square feet) and Honduras (1,200 square feet).
In addition to our store leases, we lease approximately 85,000 square feet of corporate office space in Austin, Texas, of which 73,876 square feet is being subleased or made available for sublease to other tenants. We lease other corporate office space in Mexico (8,600 square feet), Guatemala (3,500 square feet), El Salvador (4,500 square feet) and Honduras (1,200 square feet).
Our existing leases expire on various dates through fiscal 2039, with a small number of leases on month-to-month terms. All leases provide for specified periodic rental payments at market rates. Most leases require us to maintain the property and pay the cost of insurance and taxes.
Our locations in Latin America are generally leased on three to five year terms. Our existing leases expire on various dates through fiscal 2039, with a small number of leases on month-to-month terms. All leases provide for specified periodic rental payments at market rates. Most leases require us to maintain the property and pay the cost of insurance and taxes.
As of September 30, 2024, we had a total of 1,279 stores, 542 of which are located in the U.S., with 46% located in Texas, 17% in Florida and the remainder spread across 17 other states. We also have 565 locations in Mexico, 133 in Guatemala, 18 in El Salvador and 21 in Honduras.
As of September 30, 2025, we had a total of 1,360 stores, 545 of which are located in the U.S., with 45% located in Texas, 17% in Florida and the remainder spread across 17 other states. We also have 622 locations in Mexico, 148 in Guatemala, 20 in El Salvador and 25 in Honduras.
Removed
Our primary corporate office is located in Austin, Texas and is leased through March 2029 with escalating rent payments annually and includes two five-year extension options at the end of the lease term. Our locations in Latin America are generally leased on three-to-five year terms.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeShare Repurchases Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (1) (in thousands, except number of shares and average price information) July 1, 2024 through July 31, 2024 98,391 $ 10.14 98,391 $ 26,015 August 1, 2024 through August 31, 2024 92,870 $ 11.66 92,870 $ 24,933 September 1, 2024 through September 30, 2024 81,493 $ 11.22 81,493 $ 24,019 Quarter ended September 30, 2024 272,754 $ 10.98 272,754 $ 24,019 (1) On May 3, 2022, the Board of Directors approved a share repurchase program, under which the Company is authorized to repurchase up to $50 million of our Class A Non-Voting Common Stock over a three-year period.
Biggest changeShare Repurchases Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Programs (a) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs (in thousands, except number of shares and average price information) July 1, 2025 through July 31, 2025 71,514 $ 13.98 — $ — Quarter ended September 30, 2025 71,514 $ 13.98 — $ — (a) On May 3, 2022, the Board of Directors approved a share repurchase program, under which we were authorized to repurchase up to $50 million of our Class A Non-Voting common shares over a three-year period, which expired on May 3, 2025.
The graph shows the value, at the end of each of the last five fiscal years, of $100 invested in our Class A Common Stock or the indices on September 30, 2019.
The graph shows the value, at the end of each of the last five fiscal years, of $100 invested in our Class A Common Stock or the indices on September 30, 2020.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our Class A Non-Voting Common Stock (“Class A Common Stock”) is traded on the NASDAQ Stock Market under the symbol “EZPW.” As of November 1, 2024, there were approximately 69 registered stockholders of record of our Class A Common Stock.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Information Our Class A Non-Voting Common Stock (“Class A Common Stock”) is traded on the NASDAQ Stock Market under the symbol “EZPW.” As of November 7, 2025, there were approximately 64 registered stockholders of record of our Class A Common Stock.
There is no trading market for our Class B Voting Common Stock (“Class B Common Stock”), which was held by one stockholder as of November 1, 2024. As of September 30, 2024, the closing sales price of our Class A Common Stock, as reported by the NASDAQ Stock Market, was $11.21 per share.
There is no trading market for our Class B Voting Common Stock (“Class B Common Stock”), which was held by one stockholder as of November 7, 2025. As of September 30, 2025, the closing sales price of our Class A Common Stock, as reported by the NASDAQ Stock Market, was $19.04 per share.
Historical stock price performance is not necessarily indicative of future stock price performance. 23 Table of Contents Company Index 2019 2020 2021 2022 2023 2024 EZCORP, INC. $100.00 $77.86 $117.18 $119.35 $127.71 $173.53 NASDAQ Composite Index $100.00 $139.61 $180.62 $132.21 $165.26 $227.38 NASDAQ Other Finance Index $100.00 $104.68 $127.41 $87.79 $106.70 $128.75 Share Repurchase Activity The table below provides certain information about our repurchase of shares of Class A Non-voting Common Stock during the quarter ended September 30, 2024.
Historical stock price performance is not necessarily indicative of future stock price performance. 23 Table of Contents Company Index 2020 2021 2022 2023 2024 2025 EZCORP, INC. $100.00 $150.50 $153.30 $164.00 $222.80 $378.42 NASDAQ Composite Index $100.00 $129.38 $94.70 $118.40 $162.90 $202.94 NASDAQ Other Finance Index $100.00 $121.71 $83.90 $102.00 $123.10 $154.56 Share Repurchase Activity The table below provides certain information about our repurchase of shares of Class A Non-voting Common Stock during the quarter ended September 30, 2025.
Removed
All repurchases during the quarter were made in open market transactions at prevailing market prices and were executed pursuant to a trading plan under Rule 10b5-1 under the Securities Exchange Act of 1934.
Added
The repurchases reported above were authorized separately from, and not considered a part of, the Common Stock Repurchase Program or other publicly announced program.
Removed
Execution of the program will be responsive to fluctuating market conditions and valuations, liquidity needs and the expected return on investment compared to other opportunities.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeFiscal Year Ended September 30, Change (in thousands) 2024 2023 Gross profit: Pawn service charges $ 436,545 $ 383,772 14% Merchandise sales 663,736 615,446 8% Merchandise sales gross profit 236,333 220,667 7% Gross margin on merchandise sales 36 % 36 % 0 bps Jewelry scrapping sales 61,082 49,528 23% Jewelry scrapping gross profit 9,156 5,104 79% Gross margin on jewelry scrapping sales 15 % 10 % 500 bps Other revenues 239 295 (19)% Gross profit 682,273 609,838 12% Operating expenses: Store expenses 461,055 418,574 10% General and administrative 75,557 67,529 12% Impairment of other assets 843 4,343 (81)% Depreciation and Amortization 33,069 32,131 3% (Gain) loss on sale or disposal of assets and other (16) 208 (108)% Other operating income (765) (5,097) (85)% Total operating expenses 569,743 517,688 10% Interest expense 13,585 16,456 (17)% Interest income (10,575) (7,470) 42% Equity in net (income) loss of unconsolidated affiliates (4,711) 28,459 117% Other (income) expense (1,377) 3,072 145% Total non-operating (income) expenses (3,078) 40,517 108% Income before income taxes 115,608 51,633 124% Income tax expense 32,513 13,170 147% Net income $ 83,095 $ 38,463 116% Net pawn earning assets: Pawn loans $ 274,084 $ 245,766 12% Inventory, net 191,923 166,477 15% Total net pawn earning assets $ 466,007 $ 412,243 13% 26 Table of Contents Pawn loans outstanding (“PLO”) increased $28.3 million (12%) to $274.1 million due to improved operational performance and continued strong pawn demand.
Biggest changeFiscal Year Ended September 30, Change (in thousands) 2025 2024 Gross profit: Pawn service charges $ 474,228 $ 436,545 9% Merchandise sales 700,999 663,736 6% Merchandise sales gross profit 245,322 236,333 4% Gross margin on merchandise sales 35.0 % 35.6 % (60) bps Jewelry scrap sales 98,884 61,082 62% Jewelry scrap gross profit 26,346 9,156 188% Gross margin on jewelry scrap sales 26.6 % 15.0 % 1,160 bps Other revenues 169 239 (29)% Gross profit 746,065 682,273 9% Operating expenses: Store expenses 481,108 461,055 4% General and administrative 83,500 75,557 11% Impairment of other assets 877 843 4% Depreciation and amortization 32,538 33,069 (2)% Loss (gain) on sale or disposal of assets and other 135 (16) * Other operating income (1,262) (765) 65% Total operating expenses 596,896 569,743 5% Interest expense 23,029 13,585 70% Interest income (14,721) (10,575) 39% Equity in net income of unconsolidated affiliates (6,150) (4,711) 31% Other (income) expense 238 (1,377) (117)% Total non-operating expenses (income) 2,396 (3,078) (178)% Income before income taxes 146,773 115,608 27% Income tax expense 37,160 32,513 14% Net income $ 109,613 $ 83,095 32% Net pawn earning assets: Pawn loans $ 307,496 $ 274,084 12% Inventory, net 248,457 191,923 29% Total net pawn earning assets $ 555,953 $ 466,007 19% * Represents a percentage computation that is not mathematically meaningful. 27 Table of Contents PLO increased $33.4 million (12%) to $307.5 million due to higher average loan size, continued strong pawn demand, improved operational performance and additional stores.
We anticipate that cash flows from operations and cash on hand will be adequate to fund ongoing operations, debt service requirements, tax payments, any future stock repurchases, strategic investments, our contractual obligations, planned de novo store growth, capital expenditures and working capital requirements through fiscal 2025.
We anticipate that cash flows from operations and cash on hand will be adequate to fund ongoing operations, debt service requirements, tax payments, any future stock repurchases, strategic investments, our contractual obligations, planned de novo store growth, capital expenditures and working capital requirements through fiscal 2026.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to inform the reader about matters affecting the financial condition and results of operations of EZCORP, Inc. and its subsidiaries (collectively, “we,” “us”, “our” or the “Company”) for the two-year period ended September 30, 2024.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to inform the reader about matters affecting the financial condition and results of operations of EZCORP, Inc. and its subsidiaries (collectively, “we,” “us”, “our” or the “Company”) for the two-year period ended September 30, 2025.
Such risks and uncertainties include, among other things: • Changes in laws and regulations; • Negative characterizations of our industry; • Concentration of business in Texas and Florida; • Changes in gold prices or volumes; • Changes in sales, pawn loan balances, sales margins, pawn redemption rates or other important operating metrics; • Our ability to continue growing our store count through acquisitions and de novo openings; • Continuing indemnification obligations for pre-closing taxes related to our sale of Grupo Finmart; • Our controlled ownership structure; • Potential regulatory fines and penalties, lawsuits and related liabilities related to firearms business; • Potential robberies, burglaries and other crimes at our stores; • Changes in the competitive landscape; • Our ability to design or acquire, deploy and maintain adequate information technology and other business systems; • Failure to achieve adequate return on investments; • Potential uninsured property, casualty or other losses; • Potential natural disasters; • Financial statement impact of potential impairment of goodwill or other intangible assets such as trade names; • Potential conversion of Convertible Notes into cash (which could adversely affect liquidity) or stock (which will cause dilution of existing stockholders); • Limited number of unreserved shares available for future issuance; • Public health issues that could adversely affect our financial condition or results of operations; • Changes in the business, regulatory, political or social climate in Latin America; • Changes in foreign currency exchange rates; • The outcome of future litigation and regulatory proceedings; • Potential disruptive effect of acquisitions, investments and new businesses; 35 Table of Contents • Potential exposure under anti-corruption, anti-bribery, anti-money laundering and other general business laws and regulations; • Changes in liquidity, capital requirements or access to debt and capital markets; • Potential data security breaches or other cyber-attacks; and • Potential civil unrest or government overthrow and other events beyond our control.
Such risks and uncertainties include, among other things: • Changes in laws and regulations; • Negative characterizations of our industry; • Concentration of business in Texas and Florida; • Changes in gold prices or volumes; • Changes in sales, pawn loan balances, sales margins, pawn redemption rates or other important operating metrics; • Our ability to continue growing our store count through acquisitions and de novo openings; • Continuing indemnification obligations for pre-closing taxes related to our sale of Grupo Finmart; • Our controlled ownership structure; • Potential regulatory fines and penalties, lawsuits and related liabilities related to firearms business; • Potential robberies, burglaries and other crimes at our stores; • Changes in the competitive landscape; • Our ability to design or acquire, deploy and maintain adequate information technology and other business systems; • Failure to achieve adequate return on investments; • Potential uninsured property, casualty or other losses; • Potential natural disasters; • Financial statement impact of potential impairment of goodwill or other intangible assets such as trade names; • Potential conversion of convertible notes into cash (which could adversely affect liquidity) or stock (which will cause dilution of existing stockholders); • Limited number of unreserved shares available for future issuance; • Debt in the form of the 2032 Senior Notes, which could have a material adverse effect on our financial condition and results of operations; • Public health issues that could adversely affect our financial condition or results of operations; • Changes in the business, regulatory, political or social climate in Latin America; • Changes in foreign currency exchange rates; • The outcome of future litigation and regulatory proceedings; • Potential disruptive effect of acquisitions, investments and new businesses; • Potential exposure under anti-corruption, anti-bribery, anti-money laundering and other general business laws and regulations; • Changes in liquidity, capital requirements or access to debt and capital markets; • Potential data security breaches or other cyber-attacks; and • Potential civil unrest or government overthrow and other events beyond our control.
The results of the impairment analyses for fiscal 2024 and fiscal 2023 are discussed in Note 6: Goodwill And Intangible Assets of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” Income Taxes Management believes that it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with future reversals of existing taxable temporary differences, will be sufficient to fully recover the net recorded deferred tax assets.
The results of the impairment analyses for fiscal 2025 and fiscal 2024 are discussed in Note 7: Goodwill And Intangible Assets of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” Income Taxes Management believes that it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with future reversals of existing taxable temporary differences, will be sufficient to fully recover the net recorded deferred tax assets.
(b) Excludes $5.6 million in sublease payments expected to be received. (c) No provision for uncertain tax benefits has been reflected in the contractual obligations table as the timing of any such payment is uncertain.
(b) Excludes $6.4 million in sublease payments expected to be received. (c) No provision for uncertain tax benefits has been reflected in the contractual obligations table as the timing of any such payment is uncertain.
Fiscal 2023 These tables, as well as the discussion that follows, should be read in conjunction with the accompanying consolidated financial statements and related notes. Summary Financial Data The following table presents selected summary consolidated financial data for fiscal 2024 and fiscal 2023.
Fiscal 2024 These tables, as well as the discussion that follows, should be read in conjunction with the accompanying consolidated financial statements and related notes. Summary Financial Data The following table presents selected summary consolidated financial data for fiscal 2025 and fiscal 2024.
We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information to evaluate and compare operating results across accounting periods. Readers should consider the information in addition to, but not rather than or superior to, our financial statements prepared in accordance with GAAP.
We provide non-GAAP financial information for informational purposes and to 25 Table of Contents enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information to evaluate and compare operating results across accounting periods. Readers should consider the information in addition to, but not rather than or superior to, our financial statements prepared in accordance with GAAP.
The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the fiscal years ended September 30, 2024 and 2023 were as follows: September 30, Twelve Months Ended September 30, 2024 2023 2024 2023 Mexican peso 19.7 17.4 17.7 18.3 Guatemalan quetzal 7.6 7.7 7.6 7.6 Honduran lempira 24.6 24.5 24.4 24.3 Australian dollar 1.4 1.6 1.5 1.5 25 Table of Contents Operating Results Fiscal 2024 vs.
The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the fiscal years ended September 30, 2025 and 2024 were as follows: September 30, Twelve Months Ended September 30, 2025 2024 2025 2024 Mexican peso 18.3 19.7 19.7 17.7 Guatemalan quetzal 7.5 7.6 7.6 7.6 Honduran lempira 25.9 24.6 25.4 24.4 Australian dollar 1.5 1.4 1.6 1.5 26 Table of Contents Operating Results Fiscal 2025 vs.
Assuming the average forfeiture rate increased or decreased by 10%, our pawn service charges receivable balance as of September 30, 2024 would have increased or decreased by approximately $1.4 million. Inventory and Cost of Goods Sold We consider our estimates of obsolete or slow-moving inventory and shrinkage in determining the appropriate overall valuation allowance for inventory.
Assuming the average forfeiture rate increased or decreased by 10%, our pawn service charges receivable balance as of September 30, 2025 would have increased or decreased by approximately $1.5 million. Inventory and Cost of Goods Sold We consider our estimates of obsolete or slow-moving inventory and shrinkage in determining the appropriate overall valuation allowance for inventory.
Although forward-looking statements reflect our good faith beliefs, forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements.
Although forward-looking statements reflect our good faith beliefs, forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed 36 Table of Contents or implied by such forward-looking statements.
(a) Fiscal 2024 and 2023 constant currency amounts exclude net GAAP basis foreign currency transaction loss of $0.1 million and $0.4 million, respectively, resulting from movement in exchange rates.
(a) Fiscal 2025 and 2024 constant currency amounts exclude net GAAP basis foreign currency transaction loss of $0.1 million and $0.1 million, respectively, resulting from movement in exchange rates.
Fiscal 2022 The Results of Operations discussion for fiscal 2023 vs. fiscal 2022 is located in “Part II, Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended September 30, 2023. 31 Table of Contents Liquidity and Capital Resources Cash and Cash Equivalents Our cash and equivalents balance was $170.5 million at September 30, 2024 compared to $220.6 million at September 30, 2023.
Fiscal 2023 The Results of Operations discussion for fiscal 2024 vs. fiscal 2023 is located in “Part II, Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended September 30, 2024. 32 Table of Contents Liquidity and Capital Resources Cash and Cash Equivalents Our cash and equivalents balance was $469.5 million at September 30, 2025 compared to $170.5 million at September 30, 2024.
See Note 9: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” Additionally, no provision for insurance reserves, deferred compensation arrangements, or other liabilities totaling $8.5 million has been included as the timing of such payments are uncertain.
See Note 10: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” Additionally, no provision for insurance reserves, deferred compensation arrangements, or other liabilities have been included as the timing of such payments are uncertain.
Unexpected variations in any of these factors could change our estimate of collectible loans, affecting our earnings and financial condition. As of September 30, 2024, the balance of our PSC receivable was $44.0 million.
Unexpected variations in any of these factors could change our estimate of collectible loans, affecting our earnings and financial condition. As of September 30, 2025, the balance of our PSC receivable was $48.7 million.
(b) Balance is calculated based on the average of the monthly ending balance averages during the applicable period. 2024 Change (GAAP) 2024 Change (Constant Currency) Same Store data: (a) PLO 7% 16% PSC 16% 14% Merchandise Sales 11% 8% Merchandise Sales Gross Profit 16% 13% Store Expenses 12% 9% (a) Stores open at the end of the period included in the same store calculation were 697.
(b) Balance is calculated based on the average of the monthly ending balance averages during the applicable period. 2025 Change (GAAP) 2025 Change (Constant Currency) Same-Store data: (a) PLO 14% 9% PSC 6% 14% Merchandise Sales 8% 18% Merchandise Sales Gross Profit 3% 13% Store Expenses 3% 12% (a) Stores open at the end of the period included in the same-store calculation were 727.
Actual results may differ from the estimates under different assumptions or conditions. 33 Table of Contents The critical accounting policies and estimates that could have a significant impact on our results of operations, as well as relevant recent accounting pronouncements, are described in Note 1: Organization And Summary Of Significant Accounting Policies of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” Certain accounting policies regarding the quantification of the sensitivity of certain critical estimates are discussed further below.
The critical accounting policies and estimates that could have a significant impact on our results of operations, as well as relevant recent accounting pronouncements, are described in Note 1: Organization And Summary Of Significant Accounting Policies of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” Certain accounting policies regarding the quantification of the sensitivity of certain critical estimates are discussed further below.
Future declines in gold prices may cause an increase in reserve rates pertaining to jewelry inventory. As of September 30, 2024, the gross balance of our inventory was $194.7 million, for which we have included reserves of $2.7 million.
Future declines in gold prices may cause an increase in reserve rates pertaining to jewelry inventory. As of September 30, 2025, the gross balance of our inventory was $252.0 million, for which we have included reserves of $3.6 million.
During fiscal 2024, segment net store count in our U.S. pawn segment increased by 13 due to the acquisition of 13 stores, the addition of one de novo store and the consolidation of one store. 28 Table of Contents Latin America Pawn The following table presents selected summary financial data from our Latin America Pawn segment, including constant currency results, after translation to U.S. dollars from functional currencies.
During fiscal 2025, segment net store count in our U.S. pawn segment increased by 3 due to the acquisition of 4 stores and the consolidation of 1 store. 29 Table of Contents Latin America Pawn The following table presents selected summary financial data from our Latin America Pawn segment, including constant currency results, after translation to U.S. dollars from functional currencies.
The $1.0 million increase in cash flows used in investing activities was primarily due to an increase of $51.7 million in net pawn lending outflows, offset by a $27.0 million increase in cash inflows from the sale of forfeited collateral and a $23.7 million net decrease in cash flows used to fund strategic investments, capital expenditures and acquisitions.
The $6.0 million increase in cash flows used in investing activities was due primarily to an increase of $34.2 million in net pawn lending outflows and a $1.7 million net increase in cash flows used to fund other investing activities including strategic investments, capital expenditures and acquisitions, partially offset by a $29.8 million increase in cash inflows from the sale of forfeited collateral.
Cautionary Statement Regarding Risks and Uncertainties That May Affect Future Results This Annual Report on Form 10-K, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
We believe adequate provisions for income taxes have been made for all periods. 35 Table of Contents Cautionary Statement Regarding Risks and Uncertainties That May Affect Future Results This Annual Report on Form 10-K, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
We adjust these reserves in light of changing facts and circumstances, such as the closing of an audit or the refinement of an estimate. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We believe adequate provisions for income taxes have been made for all periods.
We adjust these reserves in light of changing facts and circumstances, such as the closing of an audit or the refinement of an estimate. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
Our cash and equivalents were held in cash depository accounts with major banks or invested in high quality, short-term liquid investments.
Our cash and equivalents are primarily held in cash depository accounts with banks in geographies we operate or invested in high quality, short-term liquid investments.
Results of Operations Non-GAAP Financial Information To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we provide certain other non-GAAP financial information on a constant currency basis (“constant currency”) and “same store” basis.
The Board of Directors has reserved the right to modify, suspend or terminate the program at any time. Results of Operations Non-GAAP Financial Information To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we provide certain other non-GAAP financial information on a constant currency basis (“constant currency”) and “same-store” basis.
Cash Flows The table and discussion below present a summary of the sources and uses of our cash: Fiscal Year Ended September 30, Change (in thousands) 2024 2023 Cash flows provided by operating activities $ 113,600 $ 101,834 12% Cash flows used in investing activities (111,853) (110,886) 1% Cash flows (used in) provided by financing activities (50,183) 23,692 (312)% Effect of exchange rate changes on cash and cash equivalents and restricted cash (725) (41) * Net (decrease) increase in cash and cash equivalents and restricted cash $ (49,161) $ 14,599 (437)% * Represents a percentage computation that is not mathematically meaningful.
Cash Flows The table and discussion below present a summary of the sources and uses of our cash: Fiscal Year Ended September 30, Change (in thousands) 2025 2024 Cash flows provided by operating activities $ 148,985 $ 113,600 31% Cash flows used in investing activities (117,862) (111,853) 5% Cash flows provided by (used in) financing activities 274,420 (50,183) * Effect of exchange rate changes on cash and cash equivalents and restricted cash (637) (725) (12)% Net increase (decrease) in cash and cash equivalents and restricted cash $ 304,906 $ (49,161) * * Represents a percentage computation that is not mathematically meaningful.
We use this information to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
We use this information to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from the estimates under different assumptions or conditions.
The $11.8 million increase in cash flows provided by operating activities was primarily due to an increase in net income (when considering adjustments for non-cash items affecting net income) as well as changes in working capital primarily related to the timing of payments of income taxes, prepaid expenses, accounts payable and inventory.
The $35.4 million increase in cash flows provided by operating activities was due primarily to an increase in net income as well as changes in working capital primarily related to the timing of payments of accounts payable and inventory.
Goodwill and Indefinite-Lived Intangible Assets When testing goodwill for impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount.
Assuming the reserve rates were increased or decreased by 10%, our inventory reserve balance as of September 30, 2025 would have increased or decreased by approximately $0.4 million. 34 Table of Contents Goodwill and Indefinite-Lived Intangible Assets When testing goodwill for impairment, we have the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the estimated fair value of a reporting unit is less than its carrying amount.
We have included valuation allowances against deferred tax assets for net operating losses and tax credits not expected to be utilized based on specific facts and estimates for each jurisdiction. 34 Table of Contents We consider the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings.
We consider the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings.
Total revenues increased $112.6 million (11%) and gross profit increased 12%, reflecting improved pawn service charge (“PSC”) revenue, merchandise sales and merchandise sales gross profit. PSC increased $52.8 million (14%) as a result of higher average PLO. Merchandise sales increased $48.3 million (8%). Merchandise sales gross margin remains within our targeted range at 36%.
Total revenues increased $112.7 million (10%) and gross profit increased 9%, reflecting improved PSC revenue, merchandise sales and jewelry scrap gross profit. PSC increased $37.7 million (9%) as a result of higher average PLO. Merchandise sales increased $37.3 million (6%). Merchandise sales gross margin remains within our targeted range at 35.0%.
See Note 9: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items. Fiscal 2023 vs.
These items include the net effect of state taxes, non-deductible items and changes in valuation allowances for certain foreign operations. See Note 10: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items. Fiscal 2024 vs.
Pawn segment: Fiscal Year Ended September 30, Change (in thousands) 2024 2023 Gross profit: Pawn service charges $ 322,362 $ 285,919 13% Merchandise sales 459,251 432,578 6% Merchandise sales gross profit 170,357 164,704 3% Gross margin on merchandise sales 37 % 38 % (100) bps Jewelry scrapping sales 54,344 43,305 25% Jewelry scrapping sales gross profit 8,418 5,596 50% Gross margin on jewelry scrapping sales 15 % 13 % 200 bps Other revenues 126 119 6% Gross profit 501,263 456,338 10% Segment operating expenses: Store expenses 325,816 299,319 9% Depreciation and amortization 10,147 10,382 (2)% Loss on sale or disposal of assets and other 3 115 (97)% Segment operating contribution 165,297 146,522 13% Other segment income 7 (2) * Segment contribution $ 165,290 $ 146,524 13% Other data: Average monthly ending pawn loan balance per store (a) $ 361 $ 327 10% Monthly average yield on pawn loans outstanding 14 % 14 % — bps Pawn collateral - general merchandise 34 % 34 % —% Pawn collateral - jewelry 66 % 66 % —% * Represents a percentage computation that is not mathematically meaningful.
Pawn segment: Fiscal Year Ended September 30, Change (in thousands) 2025 2024 Gross profit: Pawn service charges $ 351,479 $ 322,362 9% Merchandise sales 475,252 459,251 3% Merchandise sales gross profit 176,145 170,357 3% Gross margin on merchandise sales 37.1 % 37.1 % — bps Jewelry scrap sales 85,658 54,344 58% Jewelry scrap sales gross profit 22,912 8,418 172% Gross margin on jewelry scrap sales 26.7 % 15.5 % 1,120 bps Other revenues 103 126 (18)% Gross profit 550,639 501,263 10% Segment operating expenses: Store expenses 339,378 325,816 4% Impairment of goodwill, intangible and other assets 263 — 100% Depreciation and amortization 10,750 10,147 6% Loss on sale or disposal of assets and other 83 3 * Segment operating contribution 200,165 165,297 21% Other segment income — 7 (100)% Segment contribution $ 200,165 $ 165,290 21% Other data: Average monthly ending pawn loan balance per store (a) $ 399 $ 361 11% Monthly average yield on pawn loans outstanding 14 % 14 % — bps Pawn collateral - general merchandise 32 % 34 % (200) bps Pawn collateral - jewelry 68 % 66 % 200 bps * Represents a percentage computation that is not mathematically meaningful.
Other Investments The following table presents selected summary financial data for our Other Investments segment after translation to U.S. dollars from its functional currency of primarily Australian dollars: Fiscal Year Ended September 30, Change (in thousands) 2024 2023 Gross profit: Consumer loan fees, interest and other $ 35 $ 55 (36)% Gross profit 35 55 (36)% Segment operating expenses: Interest income (2,422) (1,500) 61% Equity in net (income) loss of unconsolidated affiliates (4,993) 28,459 118% Segment operating contribution (loss) 7,450 (26,904) 128% Other segment (income) loss — 31 100% Segment contribution (loss) $ 7,450 $ (26,935) 128% Segment income was $7.5 million, an increase of $34.4 million, primarily due to the prior year net loss on our share of Cash Converters’ net results related to their non-cash goodwill impairment charge. 30 Table of Contents Other Items The following table reconciles our consolidated segment contribution discussed above to net income attributable to EZCORP, Inc., including items that affect our consolidated financial results but are not allocated among segments: Fiscal Year Ended September 30, Change (in thousands) 2024 2023 Segment contribution $ 211,581 $ 151,247 40% Corporate expenses (income): General and administrative 75,557 67,532 12% Impairment of other assets 843 4,343 (81)% Depreciation and amortization 14,057 12,558 12% Loss on sale or disposal of assets and other 121 382 (68)% Other operating income (765) — 100% Interest expense 13,585 16,456 (17)% Interest income (6,541) (4,829) 35% Equity in net loss of unconsolidated affiliates 282 — * Other (income) expense (1,166) 3,172 137% Income before income taxes 115,608 51,633 124% Income tax expense 32,513 13,170 147% Net income $ 83,095 $ 38,463 116% * Represents a percentage computation that is not mathematically meaningful.
Other Investments The following table presents selected summary financial data for our Other Investments segment after translation to U.S. dollars from its functional currency of primarily Australian dollars: Fiscal Year Ended September 30, Change (in thousands) 2025 2024 Gross profit: Consumer loan fees, interest and other $ — $ 35 (100)% Gross profit — 35 (100)% Segment operating expenses: Interest income (2,646) (2,422) 9% Equity in net (income) loss of unconsolidated affiliates (6,936) (4,993) 39% Segment operating contribution (loss) 9,582 7,450 29% Other segment (income) loss — — —% Segment contribution (loss) $ 9,582 $ 7,450 29% Other Investments income was $9.6 million, an increase of $2.1 million, primarily due to Cash Converters’ increased net profit for the year. 31 Table of Contents Other Items The following table reconciles our consolidated segment contribution discussed above to net income attributable to EZCORP, Inc., including items that affect our consolidated financial results but are not allocated among segments: Fiscal Year Ended September 30, Change (in thousands) 2025 2024 Segment contribution $ 256,360 $ 211,581 21% Corporate expenses (income): General and administrative 83,500 75,557 11% Impairment of other assets 614 843 (27)% Depreciation and amortization 13,176 14,057 (6)% Loss on sale or disposal of assets and other — 121 (100)% Other operating income (1,262) (765) 65% Interest expense 23,029 13,585 70% Interest income (10,824) (6,541) 65% Equity in net loss of unconsolidated affiliates 786 282 179% Other (income) expense 568 (1,166) (149)% Income before income taxes 146,773 115,608 27% Income tax expense 37,160 32,513 14% Net income $ 109,613 $ 83,095 32% Segment contribution increased $44.8 million or 21%, primarily due to the improved operating results of the segments, as discussed above.
See Note 9: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items. 27 Table of Contents U.S. Pawn The following table presents selected summary financial data from our U.S.
These items include the net effect of state taxes, non-deductible items and changes in valuation allowances for certain foreign operations. See Note 10: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items. 28 Table of Contents U.S.
On May 3, 2022, our Board authorized the repurchase of up to $50 million of our Class A Common Stock over three years.
Our uses of cash have been for business acquisitions, capital expenditures, payments of principal and interest on outstanding debt obligations and share repurchases. On May 3, 2022, our Board authorized the repurchase of up to $50 million of our Class A Common Stock over three years.
(a) Balance is calculated based on the average of the monthly ending balance averages during the applicable period. PLO ended the year at $214.3 million, up 12% on a total and same store basis. Total revenues increased 10% and gross profit increased 10%, primarily due to increased PSC and higher merchandise sales.
(a) Balance is calculated based on the average of the monthly ending balance averages during the applicable period. PLO ended the year at $233.8 million, up 9% on a total and same-store basis due to increase in average loan size, strong loan demand and improved operational performance.
On a same store basis, PLO increased 7% (16% on a constant currency basis) due to improved operational performance and increased loan demand. 29 Table of Contents Total revenues were up 13% (11% on a constant currency basis), and gross profit increased by 18% (15% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved gross profit.
Total revenues were up 11% (20% on a constant currency basis), and gross profit increased by 8% (17% on a constant currency basis), reflecting increased PSC, merchandise sales and jewelry scrap sales. 30 Table of Contents PSC increased 8% (16% on constant currency basis) as a result of higher average PLO.
Store expenses increased $16.0 million, up 13% (11% on a constant currency basis), primarily due to increased labor headcount, in line with store activity and minimum wage increases and, to a lesser extent, rent associated with lease renewals.. Same-store expenses increased 12% (9% on a constant currency basis).
Store expenses increased $6.5 million, up 5% (14% on a constant currency basis), primarily due to increased labor headcount, in line with store activity and minimum wage increases. Same-store expenses increased 3% (12% on a constant currency basis). Segment contribution was up 20% to $46.6 million (28% on a constant currency basis), due to the changes noted above.
PSC increased 13% as a result of higher average PLO. Merchandise sales increased 6%. Offsetting the sales increase, merchandise sales gross margin decreased 100 bps to 37%. Store expenses increased 9% (8% on a same store basis), primarily due to labor costs driven by inflation. Segment contribution increased $18.8 million due to the changes described above.
Jewelry scrap sales increased 58%, and jewelry scrap sales gross margin increased to 26.7% due to increase in gold price and jewelry purchases. Store expenses increased 4% (4% on a same-store basis), primarily due to labor costs driven by inflation. Segment contribution increased $34.9 million due to the changes described above.
Fiscal Year Ended September 30, (in thousands) 2024 (GAAP) 2023 (GAAP) Change (GAAP) 2024 (Constant Currency) Change (Constant Currency) Gross profit: Pawn service charges $ 114,183 $ 97,853 17% $ 111,784 14% Merchandise sales 204,485 182,868 12% 199,012 9% Merchandise sales gross profit 65,976 55,963 18% 64,138 15% Gross margin on merchandise sales 32 % 31 % 100 bps 32 % 100 bps Jewelry scrapping sales 6,738 6,223 8% 6,779 9% Jewelry scrapping sales gross profit 738 (492) 250% 739 250% Gross margin on jewelry scrapping sales 11 % (8) % 238% 11 % 238% Other revenues, net 78 121 (36)% 76 (37)% Gross profit 180,975 153,445 18% 176,737 15% Segment operating expenses: Store expenses 135,239 119,255 13% 131,831 11% Depreciation and amortization 8,865 9,191 (4)% 8,599 (6)% Other operating income — (5,097) 100% — 100% Segment operating contribution 36,871 30,096 23% 36,307 21% Other segment income (a) (1,970) (1,562) 26% (1,846) 18% Segment contribution $ 38,841 $ 31,658 23% $ 38,153 21% Other data: Average monthly ending pawn loan balance per store (b) $ 83 $ 73 14% $ 82 12% Monthly average yield on pawn loans outstanding 16 % 17 % (100) bps 16 % (100) bps Pawn collateral - general merchandise 64 % 68 % (6)% 65 % (4)% Pawn collateral - jewelry 36 % 32 % 13% 35 % 9% * Represents a percentage computation that is not mathematically meaningful.
Fiscal Year Ended September 30, (in thousands) 2025 (GAAP) 2024 (GAAP) Change (GAAP) 2025 (Constant Currency) Change (Constant Currency) Gross profit: Pawn service charges $ 122,749 $ 114,183 8% $ 131,992 16% Merchandise sales 225,747 204,485 10% 245,382 20% Merchandise sales gross profit 69,177 65,976 5% 75,229 14% Gross margin on merchandise sales 30.6 % 32.3 % (170) bps 30.7 % (160) bps Jewelry scrap sales 13,226 6,738 96% 14,338 113% Jewelry scrap sales gross profit 3,434 738 * 3,745 * Gross margin on jewelry scrap sales 26.0 % 11.0 % 1,500 bps 26.1 % 1,510 bps Other revenues, net 66 78 (15)% 74 (5)% Gross profit 195,426 180,975 8% 211,040 17% Segment operating expenses: Store expenses 141,730 135,239 5% 153,686 14% Depreciation and amortization 8,612 8,865 (3)% 9,336 5% Segment operating contribution $ 45,084 $ 36,871 22% $ 48,018 30% Other segment income (a) (1,529) (1,970) (22)% (1,736) (12)% Segment contribution $ 46,613 $ 38,841 20% $ 49,754 28% Other data: Average monthly ending pawn loan balance per store (b) $ 85 $ 83 2% $ 91 10% Monthly average yield on pawn loans outstanding 16 % 16 % — bps 16 % — bps Pawn collateral - general merchandise 59 % 64 % (500) bps 59 % (500) bps Pawn collateral - jewelry 41 % 36 % 500 bps 41 % 500 bps * Represents a percentage computation that is not mathematically meaningful.
Convertible Notes For a description of the terms of our convertible notes, including the associated conversion and other related features and transactions, see Note 7: Debt of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” Contractual Obligations Below is a summary of our cash needs to meet future aggregate contractual obligations as of September 30, 2024: Payments due by Period (in thousands) Total Less than 1 year 1-3 years 3-5 years More than 5 years Debt obligations (a) $ 333,373 $ 103,373 $ — $ — $ 230,000 Interest on long-term debt obligations 46,713 10,057 17,250 17,250 2,156 Lease obligations (b) 293,380 76,639 118,792 59,939 38,010 Total (c) (d) $ 673,466 $ 190,069 $ 136,042 $ 77,189 $ 270,166 (a) Excludes debt discount and deferred financing costs as well as convertible features.
Depending on the level of acquisition activity and other factors, our ability to repay our longer term debt obligations, including the convertible debt maturing in December 2029 and the senior notes due April 2032, may require us to refinance these obligations through the issuance of new debt securities, equity securities, convertible securities or through new credit facilities. 33 Table of Contents Convertible Notes For a description of the terms of our convertible notes, including the associated conversion and other related features and transactions, see Note 8: Debt of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” Contractual Obligations Below is a summary of our cash needs to meet future aggregate contractual obligations as of September 30, 2025: Payments due by Period (in thousands) Total Less than 1 year 1-3 years 3-5 years More than 5 years Debt obligations (a) $ 530,000 $ — $ — $ 230,000 $ 300,000 Interest on long-term debt obligations 193,872 30,934 61,500 57,188 44,250 Lease obligations (b) 311,173 80,805 117,683 59,834 52,851 Total (c) (d) $ 1,035,045 $ 111,739 $ 179,183 $ 347,022 $ 397,101 (a) Excludes deferred financing costs as well as convertible features.
Operating expenses increased $52.1 million (10%) primarily due to (a) a $42.5 million increase in store expenses as a result of increased labor driven by inflationary and minimum wage increases and, to a lesser extent, expenses related to rent and (b) a $8.0 million increase in general and administrative expenses, primarily due to labor, incentive compensation and to a lesser extent, cost related to the implementation and ongoing support for our Workday ERP system.
Operating expenses increased $27.2 million (5%) primarily due to a $20.1 million increase in store expenses as a result of increased labor driven by increased headcount from acquired and de novo stores, and inflationary wage increases. General and administrative expenses increased $7.9 million primarily due to labor and incentive compensation expense.
Interest expense decreased $2.9 million (17%), primarily driven by the prior year net loss recorded on the partial extinguishments of the 2024 convertible notes and 2025 convertible notes. See Note 7: Debt of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for further discussion.
See Note 8: Debt of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for further discussion. Interest income increased $4.3 million (65%), primarily due to the increase in Cash and cash equivalents held during the second half of fiscal 2025.
See Note 7: Debt of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplementary Data.” The shares repurchased in conjunction with the transactions discussed above were authorized separately from, and not considered part of, the publicly announced share repurchase program referred to below.
See Note 15: Subsequent Events of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data”. The Company also repurchased 220,435 of its Class A common stock for $3.0 million in privately negotiated transactions. Such transactions were authorized separately from, and not considered a part of the Common Stock Repurchase Program.
The net effect of these changes was a $49.2 million decrease in cash on hand during the current year, resulting in a $179.8 million ending cash and restricted cash balance. Sources and Uses of Cash In December 2022, we issued $230.0 million aggregate principal amount of 2029 Convertible Notes.
The net effect of these changes was a $304.9 million increase in cash on hand during the current year, resulting in a $484.7 million ending cash and restricted cash balance. Sources and Uses of Cash Our primary sources of funds includes cash generated from operations and borrowings from the issuance of debt.
Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate. These items include the net effect of state taxes, non-deductible items and changes in valuation allowances for certain foreign operations.
Income tax expense increased $4.6 million, primarily due to the increase in income before income taxes of $31.2 million, offset by accrued withholding taxes recorded in prior year for prior earnings that are no longer permanently reinvested. Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate.
Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate. These items include the net effect of state taxes, non-deductible items and changes in valuation allowances for certain foreign operations.
Income tax expense increased $4.6 million primarily due to the increase in income before income taxes of $31.2 million, offset by accrued withholding taxes recorded in prior year for prior earnings that are no longer permanently reinvested. Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate.
Execution of the program will be responsive to fluctuating market conditions and valuations, liquidity needs and the expected return on investment compared to other opportunities. 32 Table of Contents Under the stock repurchase program, we may purchase Class A Non-Voting common stock from time to time at management’s discretion in accordance with applicable securities laws, including through open market transactions, block or privately negotiated transactions, or any combination thereof.
Execution of the program will be responsive to fluctuating market conditions and valuations, liquidity needs and the expected return on investment compared to other opportunities.
Segment contribution was up 23% to $38.8 million (21% on a constant currency basis), due to the changes noted above, in addition to the impact of the prior year reversal of contingent consideration liability in connection with a previously completed acquisition, which was recorded to “Other operating income.” During fiscal 2024, net store count in our Latin America pawn segment increased by 35 due to the opening of 40 de novo stores and the consolidation of five stores.
During fiscal 2025, net store count in our Latin America pawn segment increased by 78 due to the acquisition of 48 stores, the opening of 40 de novo stores and the consolidation of 10 stores.
PSC increased 17% (14% on constant currency basis) as a result of higher average PLO. Merchandise sales increased 12% (9% on a constant currency basis) and 11% on a same store basis (8% on a constant currency basis). Merchandise sales gross margin increased 100 bps to 32%.
Total revenues increased 9% and gross profit increased 10%, primarily due to increased PSC, merchandise sales, and jewelry scrap sales. PSC increased 9% as a result of higher average PLO. Merchandise sales increased 3%, and merchandise sales gross margin remained consistent at 37.1%.
As of September 30, 2024, we have repurchased 2,845,548 shares of our Class A Common Stock under the program for $26.0 million which amount was allocated between “Additional paid-in capital” and “Retained earnings” in our Consolidated Balance Sheets.
As of September 30, 2025, we have repurchased 3,178,147 shares of our Class A Common Stock under the program for $30.0 million. The program expired on May 3, 2025. On November 11, 2025, the Board approved a new share repurchase program.
See “Part I, Item 1A — Risk Factors” and “Cautionary Statement Regarding Risks and Uncertainties That May Affect Future Results” below. Business Development On September 11, 2024, the Company announced entry into an acquisition agreement with Presta Dinero, S.A. de C.V. for the purchase of 53 pawn stores in Mexico.
See “Part I, Item 1A — Risk Factors” and “Cautionary Statement Regarding Risks and Uncertainties That May Affect Future Results” below. Business Development 2032 Senior Notes In March 2025, we issued $300.0 million aggregate principal amount of the Company’s 7.375% senior notes due 2032 (the “2032 Senior Notes”), for which $300.0 million remains outstanding as of September 30, 2025.
Removed
While at the time we expected to complete the transaction by October 31, 2024, the transaction has not yet closed and the parties remain in discussion.
Added
See Note 8 of Notes to the Consolidated Financial Statements included in “Part II, Item 8 - Financial Statements and Supplementary Data” of this Report for further discussion. 2025 Convertible Notes During April 2025, holders converted approximately $97.0 million in principal amount of the 2025 Convertible Notes into approximately 6.1 million shares of our Class A common stock, with payments of cash in lieu of any fractional shares.
Removed
Total non-operating income increased $43.6 million (108%), primarily due to recognition in the prior year of our share of losses in Cash Converters’ net results related to their non-cash goodwill impairment charge, a reduction of interest expense and an increase in interest income.
Added
On May 1, 2025, we repaid the remaining principal balance of $6.4 million with cash. See Note 8 of Notes to the Consolidated Financial Statements included in “Part II, Item 8 - Financial Statements and Supplementary Data” of this Report for further discussion. Acquisitions In fiscal 2025, we closed on the acquisition of 47 stores across 13 states in Mexico.
Removed
Interest expense decreased $2.9 million, primarily driven by the prior year net loss recorded on the partial extinguishments of the 2024 convertible notes and 2025 convertible notes. See Note 7: Debt of Notes to Consolidated Financial Statements in “Part II, Item 8 — Financial Statements and Supplemental Data” for further discussion.
Added
The stores, operating under the names “Monte Providencia” and “Tu Empeño Efectivo” offer traditional pawn loans, as well as auto pawn transactions, some of which are in standalone auto pawn stores. Additionally, we acquired 4 stores located in the U.S. during fiscal 2025.
Removed
The interest income increase is primarily due to our treasury management with increased market interest rates. Income tax expense increased $19.3 million, primarily due to the increase in income before income taxes of $64.0 million, an increase in non-deductible expense in Latin America and accrued withholding taxes on prior earnings that are no longer permanently reinvested.
Added
See Note 3 of Notes to Consolidated Financial Statements included in “Part II, Item 8 - Financial Statements and Supplementary Data” for further discussion of the Mexico acquisition. Share Repurchase Program On November 11, 2025, the Board of Directors (“Board”) approved a new share repurchase program which will replace the previous program that expired on May 3, 2025.
Removed
PLO improved to $59.8 million, up 8% (18% on constant currency basis).
Added
See Note 9: Common Stock And Stock Compensation of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data”. Under the new program, we are authorized to repurchase up to $50 million of our Class A Non-Voting common shares over the next three years.
Removed
Segment contribution increased $60.3 million or 40%, primarily due to the improved operating results of the segments, as discussed above. General and administrative expenses increased $8.0 million (12%), primarily due to labor, incentive compensation and, to a lesser extent, costs related to the implementation and ongoing support of our Workday ERP system.
Added
Jewelry scrap sales increased 62%, and jewelry scrap sales gross margin increased by 1,160 bps to 26.6% due to an increase in gold price and jewelry purchases.
Removed
Interest income increased $1.7 million, due primarily to our treasury management with increased market interest rates. Income tax expense increased $19.3 million primarily due to the increase in income before income taxes of $64.0 million, an increase in non-deductible expense in Latin America and accrued withholding taxes on prior earnings that are no longer permanently reinvested.
Added
Total non-operating expense changed by $5.5 million (178%), primarily due to the increase in interest expense of $9.4 million, which is a result of the issuance of the 2032 Senior Notes.
Removed
The $73.9 million increase in cash flows used in financing activities was primarily related to the December 2022 financing of the 2029 Convertible Notes, in which we issued $230.0 million principal amount of 3.750% Convertible Senior Notes Due 2029 offset by the extinguishment of approximately $109.4 million aggregate principal amount of our 2024 Convertible Notes for approximately $117.5 million plus accrued interest and approximately $69.1 million aggregate principal amount of our 2025 Convertible Notes for approximately $62.9 million plus accrued interest.
Added
This increase was partially offset by the $4.1 million increase in interest income, which is primarily due to the increase in Cash and cash equivalents held during the second half of fiscal 2025.
Removed
In addition, we used approximately $5.0 million of the net proceeds from the 2029 Convertible Notes offering to repurchase 578,703 shares of our Class A common stock from purchasers of the notes in privately negotiated transactions.
Added
Pawn The following table presents selected summary financial data from our U.S.
Removed
Further, on July 1, 2024, the 2024 Convertible Notes matured and the remaining $34.4 million aggregate principal amount outstanding plus accrued interest was repaid using cash on hand. During 2024, the Company repurchased and retired 1,218,503 shares of our Class A Common Stock for $12.0 million under the Common Stock Repurchase Program.
Added
PLO improved to $73.7 million, an increase of 23% (17% on constant currency basis). On a same-store basis, PLO increased 14% (9% on a constant currency basis) due to strong loan demand and improved operational performance.
Removed
In conjunction with the issuance of the 2029 Convertible Notes, we extinguished approximately $109.4 million aggregate principal amount of our 2024 Convertible Notes for approximately $117.5 million plus accrued interest and approximately $69.1 million aggregate principal amount of our 2025 Convertible Notes for approximately $62.9 million plus accrued interest.
Added
Merchandise sales increased 10% (20% on a constant currency basis) and 8% on a same-store basis (18% on a constant currency basis). Merchandise sales gross margin slightly decreased to 30.6%. Jewelry scrap sales increased 96%, and jewelry scrap sales gross margin increased to 26.0% due to increase in gold price and jewelry purchases.
Removed
In addition, we used approximately $5.0 million of the net proceeds from the 2029 Convertible Notes offering to repurchase 578,703 shares of our Class A common stock from purchasers of the notes in privately negotiated transactions.
Added
General and administrative expenses increased $7.9 million (11%), primarily due to payroll related expenses, including incentive compensation. Interest expense increased $9.4 million (70%), primarily driven by the issuance of 2032 Senior Notes in the second quarter fiscal 2025.
Removed
In addition, we may purchase shares pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934.
Added
The $324.6 million increase in cash flows provided by financing activities was related primarily to the net $292.4 million received from the issuance of the 2032 Senior Notes in March 2025, decreased repurchase activity for our Class A Common Stock in the current year (fiscal 2025 $7.0 million and fiscal 2024 $12.0 million), and a current year decrease in payments on debt (fiscal 2025 $6.4 million and fiscal 2024 $34.4 million).
Removed
The Board has reserved the right to modify, suspend or terminate the program at any time. On July 1, 2024, the 2024 Convertible Notes matured and the remaining $34.4 million aggregate principal amount outstanding plus accrued interest was repaid using cash on hand.
Added
In March 2025, we issued the 2032 Senior Notes, all of which remains outstanding as of September 30, 2025. On May 1, 2025, we repaid the remaining balance of the 2025 Convertible Notes. See Note 8 of Notes to Consolidated Financial Statements included in Part II, Item 8 - Financial Statement and Supplementary Data”.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe translation adjustment from Latin America primarily representing the change of the Mexican peso during the fiscal year ended September 30, 2024 was a $20.5 million decrease to stockholders’ equity. As of September 30, 2024, the Mexican peso weakened approximately 11% to $1.00 Mexican to $0.0508 U.S. from $0.0574 U.S. as of September 30, 2023.
Biggest changeThe translation adjustment from Latin America primarily representing the change of the Mexican peso during the fiscal year ended September 30, 2025 was a $12.1 million increase to stockholders’ equity. As of September 30, 2025, the Mexican peso strengthened approximately 7% to $1.00 Mexican to $0.0545 U.S. from $0.0508 U.S. as of September 30, 2024.
We cannot predict the future valuation of foreign currencies or how further movements in exchange rates could affect our future earnings or financial position due to the interrelationship of operating results and exchange rates. 36 Table of Contents
We cannot predict the future valuation of foreign currencies or how further movements in exchange rates could affect our future earnings or financial position due to the interrelationship of operating results and exchange rates. 37 Table of Contents
The translation adjustment from Cash Converters through June 30, 2024 (included in our September 30, 2024 results on a three-month lag) was a nominal increase to stockholders’ equity, excluding income tax impacts. As of September 30, 2024, $1.00 Australian dollar strengthened at $0.6944 U.S. as compared to $0.6452 in the prior year.
The translation adjustment from Cash Converters through June 30, 2025 (included in our September 30, 2025 results on a three-month lag) was a nominal increase to stockholders’ equity, excluding income tax impacts. As of September 30, 2025, $1.00 Australian dollar weakened at $0.6623 U.S. as compared to $0.6944 in the prior year.
As of September 30, 2024, the Guatemalan quetzal strengthened approximately 2% Q1.00 Guatemalan to $0.1325 U.S. from $0.1302 U.S. as of September 30, 2023. We have currently assumed indefinite reinvestment of earnings and capital in Latin America in excess of the $20.0 million of prior earnings for which applicable withholding taxes have been accrued as of September 30, 2024.
As of September 30, 2025, the Guatemalan quetzal slightly strengthened Q1.00 Guatemalan to $0.1326 U.S. from $0.1325 U.S. as of September 30, 2024. We have currently assumed indefinite reinvestment of earnings and capital in Latin America in excess of the $20.0 million of prior earnings for which applicable withholding taxes have been accrued as of September 30, 2025.

Other EZPW 10-K year-over-year comparisons