EZCORP, Inc. Q3 2026 Earnings Recap

EZCORP’s shares fell 6.3% as investors digested margin compression in the scrap segment and a cautious sequential outlook despite underlying growth in core pawn metrics and expansion in Latin America.

Key Takeaways

• Adjusted EBITDA rose 48% to $65.6 million and adjusted EPS increased 47% to $0.47, driven largely by merchandise margin expansion and operating leverage.
• Core pawn revenues grew 24% and same-store core pawn gross profit increased 13%, reflecting solid demand and disciplined lending across markets.
• Scrap sales declined sequentially due to gold price stabilization, with scrap gross margin dropping to 26% from 38% in the prior quarter, pressuring overall margins.
• Latin America stood out with 33% constant currency growth in PLO and 40% segment EBITDA growth, aided by store acquisitions and new openings.
• U.S. Pawn segment saw 14% revenue growth and 23% EBITDA growth, supported by higher average loan sizes and improved merchandise margin, though inventory levels rose significantly.