EZCORP Reports First Quarter Fiscal 2025 Results Record PLO Drives Strong Increase in Net Income

Core Insights - EZCORP, Inc. reported strong financial results for the first quarter of fiscal 2025, with record revenues and growth in pawn loans outstanding (PLO) driven by high customer demand for cash solutions and secondhand goods [3][4][5]. Financial Performance - Total revenues increased by 7% to $320.2 million compared to$300.0 million in the same period last year [5][6]. - Gross profit rose by 7% to $185.4 million, up from$172.6 million [5][6]. - Net income increased by 9% to $31.0 million, with adjusted net income rising by 14$32.6 million [6][8]. - Diluted earnings per share (EPS) grew by 11% to $0.40, while adjusted diluted EPS increased by 17$0.42 [6][8]. - Adjusted EBITDA rose by 12% to $53.0 million [6][8]. Segment Performance - In the U.S., PLO grew by 15$220.2 million, driven by strong loan demand and higher average loan sizes [4][8]. - Latin America PLO increased by 19% on a constant currency basis, with revenues up 18%, reflecting robust customer demand [4][8]. - Pawn service charge (PSC) revenues increased by 10% due to higher average PLO [8][13]. Operational Highlights - The EZ+ Rewards program accounted for 77% of all transacting customers, indicating strong customer engagement [4]. - Net inventory increased by 21%, attributed to the rise in PLO and a decrease in inventory turnover [8][13]. - Store expenses increased by 5%, while general and administrative expenses rose by 13%, primarily due to labor costs [8][13]. Strategic Outlook - The company aims to continue driving growth both organically and through strategic mergers and acquisitions (M&A) [4]. - EZCORP remains committed to enhancing customer service and shareholder value, positioning itself for another record year in fiscal 2025 [4].