EZCORP INC 10-Q

ITEM 1. FINANCIAL STATEMENTS EZCORP, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) December 31, 2024 December 31, 2023 September 30, 2024 Assets: Current assets: Cash and cash equivalents $ 174,506 $ 218,516 $ 170,513 Restricted cash 9,386 8,470 9,294 Pawn loans 274,824 243,252 274,084 Pawn service charges receivable, net 45,198 40,002 44,013 Inventory, net 199,481 164,927 191,923 Prepaid expenses and other current assets 36,562 44,001 39,171 Total current assets 739,957 719,168 728,998 Investments in unconsolidated affiliates 13,555 10,125 13,329 Other investments 51,903 51,220 51,900 Property and equipment, net 63,231 68,998 65,973 Right-of-use assets, net 227,810 231,103 226,602 Goodwill 304,722 303,799 306,478 Intangible assets, net 57,093 56,977 58,451 Deferred tax asset, net 24,990 25,984 25,362 Other assets, net 15,872 13,819 16,144 Total assets $ 1,499,133 $ 1,481,193 $ 1,493,237 Liabilities and equity: Current liabilities: Current maturities of long-term debt, net $ 103,205 $ 34,307 $ 103,072 Accounts payable, accrued expenses and other current liabilities 68,682 69,386 85,737 Customer layaway deposits 24,216 18,324 21,570 Operating lease liabilities, current 57,900 57,980 58,998 Total current liabilities 254,003 179,997 269,377 Long-term debt, net 224,505 326,223 224,256 Deferred tax liability, net 2,186 372 2,080 Operating lease liabilities 182,228 188,475 180,616 Other long-term liabilities 12,317 11,243 12,337 Total liabilities 675,239 706,310 688,666 Commitments and contingencies (Note 9) Stockholders’ equity: Class A Non-voting Common Stock, par value $ 0.01 per share; shares authorized: 100 million; issued and outstanding: 52,050,550 as of December 31, 2024; 52,272,594 as of December 31, 2023; and 51,582,698 as of September 30, 2024 520 523 516 Class B Voting Common Stock, convertible, par value $ 0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171 30 30 30 Additional paid-in capital 345,783 343,870 348,366 Retained earnings 536,427 457,929 507,206 Accumulated other comprehensive loss ( 58,866 ) ( 27,469 ) ( 51,547 ) Total equity 823,894 774,883 804,571 Total liabilities and equity $ 1,499,133 $ 1,481,193 $ 1,493,237 See accompanying notes to unaudited condensed consolidated financial statements. 1 Table of Contents EZCORP, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31, (in thousands, except per share amount) 2024 2023 Revenues: Merchandise sales $ 186,343 $ 179,403 Jewelry scrapping sales 16,732 14,082 Pawn service charges 117,052 106,449 Other revenues 43 57 Total revenues 320,170 299,991 Merchandise cost of goods sold 121,824 115,210 Jewelry scrapping cost of goods sold 12,942 12,208 Gross profit 185,404 172,573 Operating expenses: Store expenses 116,451 110,555 General and administrative 18,669 16,543 Depreciation and amortization 8,335 8,565 Loss (gain) on sale or disposal of assets and other 8 ( 172 ) Total operating expenses 143,463 135,491 Operating income 41,941 37,082 Interest expense 3,147 3,440 Interest income ( 2,093 ) ( 2,639 ) Equity in net income of unconsolidated affiliates ( 1,475 ) ( 1,153 ) Other expense (income) 978 ( 271 ) Income before income taxes 41,384 37,705 Income tax expense 10,368 9,235 Net income $ 31,016 $ 28,470 Basic earnings per share $ 0.57 $ 0.52 Diluted earnings per share $ 0.40 $ 0.36 Weighted-average basic shares outstanding 54,827 55,076 Weighted-average diluted shares outstanding 83,347 86,812 See accompanying notes to unaudited condensed consolidated financial statements. 2 Table of Contents EZCORP, Inc. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended December 31, (in thousands) 2024 2023 Net income $ 31,016 $ 28,470 Other comprehensive income: Foreign currency translation adjustment, net of income tax (expense) benefit for our investment in unconsolidated affiliate of $( 106 ) and $ 57 for the three months ended December 31, 2024, and 2023, respectively. ( 7,319 ) 4,633 Comprehensive income $ 23,697 $ 33,103 See accompanying notes to unaudited condensed consolidated financial statements. 3 Table of Contents EZCORP, Inc. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity (in thousands) Shares Par Value Balances as of September 30, 2024 54,553 $ 546 $ 348,366 $ 507,206 $ ( 51,547 ) $ 804,571 Stock compensation — — 2,597 — — 2,597 Release of restricted stock, net of shares withheld for taxes 718 7 ( 7 ) — — — Taxes paid related to net share settlement of equity awards — — ( 3,971 ) — — ( 3,971 ) Foreign currency translation loss — — — — ( 7,319 ) ( 7,319 ) Purchase and retirement of treasury stock ( 250 ) ( 3 ) ( 1,202 ) ( 1,795 ) — ( 3,000 ) Net income — — — 31,016 — 31,016 Balances as of December 31, 2024 55,021 $ 550 $ 345,783 $ 536,427 $ ( 58,866 ) $ 823,894 Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders’ Equity (in thousands) Shares Par Value Balances as of September 30, 2023 54,840 $ 549 $ 346,181 $ 431,140 $ ( 32,102 ) $ 745,768 Stock compensation — — 2,264 — — 2,264 Release of restricted stock, net of shares withheld for taxes 758 8 — — — 8 Taxes paid related to net share settlement of equity awards — — ( 3,253 ) — — ( 3,253 ) Foreign currency translation gain — — — — 4,633 4,633 Purchase and retirement of treasury stock ( 355 ) ( 4 ) ( 1,322 ) ( 1,681 ) — ( 3,007 ) Net income — — — 28,470 — 28,470 Balances as of December 31, 2023 55,243 $ 553 $ 343,870 $ 457,929 $ ( 27,469 ) $ 774,883 See accompanying notes to unaudited condensed consolidated financial statements. 4 Table of Contents EZCORP, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended December 31, (in thousands) 2024 2023 Operating activities: Net income $ 31,016 $ 28,470 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 8,335 8,565 Amortization of debt discount and deferred financing costs 382 417 Non-cash lease expense 14,421 14,744 Deferred income taxes 478 345 Other adjustments ( 617 ) ( 857 ) Provision for inventory reserve 59 ( 156 ) Stock compensation expense 2,597 2,264 Equity in net income from investment in unconsolidated affiliates ( 1,475 ) ( 1,153 ) Changes in operating assets and liabilities, net of business acquisitions: Pawn service charges receivable ( 1,368 ) ( 1,000 ) Inventory ( 2,384 ) 2,066 Prepaid expenses, other current assets and other assets 1,375 ( 5,823 ) Accounts payable, accrued expenses and other liabilities ( 38,737 ) ( 33,991 ) Customer layaway deposits 2,909 ( 719 ) Income taxes 9,000 8,309 Net cash provided by operating activities 25,991 21,481 Investing activities: Loans made ( 247,225 ) ( 216,978 ) Loans repaid 135,190 123,021 Recovery of pawn loan principal through sale of forfeited collateral 101,850 98,209 Capital expenditures, net ( 5,609 ) ( 7,184 ) Investment in other investments — ( 15,000 ) Dividends from unconsolidated affiliates 1,902 1,745 Other ( 148 ) ( 677 ) Net cash used in investing activities ( 14,040 ) ( 16,864 ) Financing activities: Taxes paid related to net share settlement of equity awards ( 3,971 ) ( 3,253 ) Purchase and retirement of treasury stock ( 3,000 ) ( 3,007 ) Payments of finance leases ( 131 ) ( 132 ) Net cash used in financing activities ( 7,102 ) ( 6,392 ) Effect of exchange rate changes on cash and cash equivalents and restricted cash ( 764 ) ( 207 ) Net increase (decrease) in cash, cash equivalents and restricted cash 4,085 ( 1,982 ) Cash and cash equivalents and restricted cash at beginning of period 179,807 228,968 Cash and cash equivalents and restricted cash at end of period $ 183,892 $ 226,986 See accompanying notes to unaudited condensed consolidated financial statements. 5 Table of Contents Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business EZCORP, Inc. (collectively with its subsidiaries, the “Company,” “we,” “us,” or “our”) is a provider of pawn loans in the United States (“U.S.”) and Latin America. Pawn loans are non-recourse loans collateralized by tangible property. We also sell merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers. Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements (“Condensed Consolidated Financial Statements”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the year ended September 30, 2024, filed with the Securities and Exchange Commission (“SEC”) on November 13, 2024 (“2024 Annual Report”). In the opinion of management, the accompanying Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. Financial results for the three month period ended December 31, 2024, are not necessarily indicative of results that may be expected for the fiscal year ending September 30, 2025 or any other period due, in part, to seasonal variations. There have been no changes that have had a material impact in significant accounting policies as described in our 2024 Annual Report . Principles of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of EZCORP, Inc. and its wholly-owned subsidiaries. We use the equity method of accounting for entities in which we have a 50% or less investment and exercise significant influence. We account for equity investments for which we do not have significant influence and without readily determinable fair values at cost with adjustments for observable changes in price in orderly transactions for identical or similar investments of the same issuer or impairments. All inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include the determination of inventory reserves, expected credit losses, useful lives of long-lived and intangible assets, valuation of share-based compensation, valuation of equity investments, valuation of deferred tax assets and liabilities, loss contingencies related to litigation and discount rates used for operating leases. We base our estimates on historical experience, observable trends and various other assumptions we believe are reasonable. Actual results may differ materially from these estimates under different assumptions or conditions. Merchandise Sales Revenues Recognition Customer layaway deposits are recorded as liabilities when a customer provides a deposit for merchandise. Upon cancellation, customer layaway deposits are generally refundable, less a cancellation fee, via credit slip. Our customer layaway deposits balance as of December 31, 2024, 2023 and September 30, 2024 was $ 24.2 million, $ 18.3 million and $ 21.6 million, respectively, and are generally recognized as revenues within a one-year period. Investments We account for our investment in Rich Data Corporation (“RDC”) in accordance with Accounting Standards Codification (“ASC”) 321, Investments — Equity Securities, and we have elected to use the measurement alternative to measure this investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of December 31, 2024, 2023 and September 30, 2024, the carrying value of our investment in RDC was $ 6.2 million. 6 Table of Contents Refer to Note 5: Strategic Investments for details on our investment in Founders One, LLC (“Founders”). Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). ASU 2023-06 will impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers of financial assets. The amendments in this ASU 2023-06 will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”) included within segment operating profit or loss. Additionally, the ASU requires a description of how the CODM utilizes segment operating profit or loss to assess segment performance. The requirements of ASU 2023-07 are effective for the Company for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and retrospective application is required for all periods presented. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires disclosure of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit and income tax expense or benefit from continuing operations. The requirements of this ASU 2023-09 are effective for the Company for fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied on a prospective basis. Retrospective application is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In March 2024, the FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements (“ASU 2024-02”). ASU 2024-02 contains amendments to the Codification that remove references to various FASB Concepts Statements. The requirements of this ASU 2024-02 are effective for the Company for fiscal years beginning after December 15, 2024 and can be applied on a prospective or retrospective basis. This standard is not expected to have a significant impact on our consolidated financial statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. The requirements of ASU 2024-03 are effective for the Company for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted and should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all period periods presented in the financial statements. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In November 2024, the FASB issued ASU 2024-04, Debt - Debt with Conversions and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments (“ASU 2024-04”). ASU 2024-04 clarifies the requirements for determining whether certain settlements of convertible debt instruments, including convertible debt instruments with cash conversion features or convertible debt instruments that are not currently convertible, should be accounted for as an induced conversion. The requirements of ASU 2024-04 are effective for the Company for fiscal years beginning after December 15, 2025, and interim periods within those periods. Early adoption is permitted for all entities that have adopted the amendments in ASU 2020-06 and can be applied on a prospective or retrospective basis. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. 7 Table of Contents NOTE 2: GOODWILL The following table summarizes the changes in the carrying amount of goodwill by segment and in total: Three Months Ended December 31, 2024 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2024 $ 264,428 $ 42,050 $ 306,478 Effect of foreign currency translation changes — ( 1,756 ) ( 1,756 ) Balances as of December 31, 2024 $ 264,428 $ 40,294 $ 304,722 Three Months Ended December 31, 2023 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2023 $ 255,942 $ 46,430 $ 302,372 Acquisitions (a) 416 — 416 Effect of foreign currency translation changes — 1,011 1,011 Balances as of December 31, 2023 $ 256,358 $ 47,441 $ 303,799 (a) Amount represents goodwill recognized in connection with an immaterial acquisition within the U.S. Pawn segment and we have therefore omitted certain disclosures. NOTE 3: EARNINGS PER SHARE The following table reconciles the number of common shares used to compute basic and diluted earnings per share attributable to EZCORP Inc., shareholders: Three Months Ended December 31, (in thousands, except per share amounts) 2024 2023 Basic earnings per common share: Net income - basic $ 31,016 $ 28,470 Weighted shares outstanding - basic 54,827 55,076 Basic earnings per common share $ 0.57 $ 0.52 Diluted earnings per common share: Net income - basic $ 31,016 $ 28,470 Add: Convertible Notes* interest expense, net of tax 2,439 2,659 Net income - diluted $ 33,455 $ 31,129 Weighted shares outstanding - basic 54,827 55,076 Equity-based compensation awards - effect of dilution** 1,541 1,318 Convertible Notes* - effect of dilution 26,979 30,418 Weighted shares outstanding - diluted 83,347 86,812 Diluted earnings per common share $ 0.40 $ 0.36 Potential common shares excluded from the calculation of diluted earnings per common share above: Restricted stock*** 1,437 1,581 * The Company’s debt (collectively, the “Convertible Notes”) includes the 2.375 % Convertible Senior Notes Due 2025 (the “2025 Convertible Notes”), the 3.750 % Convertible Senior Notes Due 2029 (the “2029 Convertible Notes”) and the three months ended December 31, 2023 also includes the 2.875 % Convertible Senior Notes Due 2024 (the “2024 Convertible Notes”). See Note 7: Debt for conversion price, initial conversion rate and additional information. ** Includes time-based share-based awards and performance-based awards for which targets for fiscal year tranches have been achieved and vesting is subject only to achievement of service conditions. *** Includes antidilutive share-based awards as well as performance-based share-based awards that are contingently issuable, but for which the condition for issuance has not been met as of the end of the reporting period. 8 Table of Contents NOTE 4: LEASES We determine if a contract contains a lease at inception. Our lease portfolio consists primarily of operating leases for pawn store locations and corporate offices with lease terms ranging from three to ten years and finance leases for vehicles with lease terms ranging from two to five years . The table below presents balances of our lease assets and liabilities and their balance sheet locations for both operating and financing leases: (in thousands) Balance Sheet Location December 31, 2024 December 31, 2023 September 30, 2024 Lease assets: Operating lease right-of-use assets Right-of-use assets, net $ 227,810 $ 231,103 $ 226,602 Financing lease assets Other assets, net 1,340 2,124 1,559 Total lease assets $ 229,150 $ 233,227 $ 228,161 Lease liabilities: Current: Operating lease liabilities Operating lease liabilities, current $ 57,900 $ 57,980 $ 58,998 Financing lease liabilities Accounts payable, accrued expenses and other current liabilities 556 572 570 Total current lease liabilities $ 58,456 $ 58,552 $ 59,568 Non-current: Operating lease liabilities Operating lease liabilities $ 182,228 $ 188,475 $ 180,616 Financing lease liabilities Other long-term liabilities 907 1,644 1,110 Total non-current lease liabilities $ 183,135 $ 190,119 $ 181,726 Total lease liabilities $ 241,591 $ 248,671 $ 241,294 The table below provides major components of our lease costs: Three Months Ended December 31, (in thousands) 2024 2023 Operating lease cost: Operating lease cost * $ 19,969 $ 19,066 Variable lease cost 3,293 4,215 Total operating lease cost $ 23,262 $ 23,281 Financing lease cost: Amortization of financing lease assets $ 139 $ 151 Interest on financing lease liabilities 44 65 Total financing lease cost $ 183 $ 216 Total lease cost $ 23,445 $ 23,497 * Includes a reduction for sublease rental income of $ 0.6 million and $ 1.1 million for the three months ended December 31, 2024 and 2023, respectively. Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store expenses” and “General and administrative” under operating expenses, based on the underlying lease use. Cash paid for operating leases was $ 20.0 million and $ 20.3 million for the three months ended December 31, 2024 and 2023, respectively. Cash paid for principal and interest on finance leases was $ 0.1 million and less than $ 0.1 million, respectively, for the three months ended December 31, 2024 and $ 0.1 million and $ 0.1 million, respectively, for the three months ended December 31, 2023 . 9 Table of Contents The weighted-average term and discount rates for leases are as follows: Three Months Ended December 31, 2024 2023 Weighted-average remaining lease term (years): Operating leases 5.02 4.86 Financing leases 2.80 3.42 Weighted-average discount rate: Operating leases 8.40 % 8.53 % Financing leases 11.14 % 11.14 % As of December 31, 2024, maturities of lease liabilities under ASC 842 by fiscal year were as follows: (in thousands) Operating Leases Financing Leases Remaining 2025 $ 57,021 $ 490 Fiscal 2026 68,806 702 Fiscal 2027 54,798 453 Fiscal 2028 39,612 43 Fiscal 2029 26,082 2 Thereafter 49,919 — Total lease liabilities $ 296,238 $ 1,690 Less: portion representing imputed interest 56,110 227 Total net lease liabilities $ 240,128 $ 1,463 Less: current portion 57,900 556 Total long-term net lease liabilities $ 182,228 $ 907 We recorded $ 18.2 million and $ 9.3 million in non-cash additions to our operating right-of-use assets and lease liabilities for the three months ended December 31, 2024 and 2023, respectively. We recorded no non-cash finance lease additions for the three months ended December 31, 2024 and $ 0.1 million for the three months ended December 31, 2023. NOTE 5: STRATEGIC INVESTMENTS Cash Converters International Limited As of December 31, 2024, we owned 273,939,157 shares, or approximately 43.7 %, of Cash Converters. We acquired our original investment in November 2009 and have increased our ownership through the acquisition of additional shares periodically since that time. We received cash dividends from Cash Converters of $ 1.9 million and $ 1.7 million during th e three mon ths ended December 31, 2024 and 2023, respectively. The following tables present summary financial information for Cash Converters’ most recently reported results as applicable after translation to U.S. dollars: June 30, (in thousands) 2024 2023 Current assets $ 185,649 $ 189,563 Non-current assets 133,043 103,595 Total assets $ 318,692 $ 293,158 Current liabilities $ 103,771 $ 97,630 Non-current liabilities 74,010 58,777 Shareholders’ equity 140,911 136,751 Total liabilities and shareholders’ equity $ 318,692 $ 293,158 10 Table of Contents Full-Year Ended June 30, (in thousands) 2024 2023 Gross revenues $ 251,135 $ 203,608 Gross profit $ 152,879 $ 125,709 Net profit (loss) $ 11,420 $ ( 65,351 ) During the three m onths ended December 31, 2024, and 2023 we recorded our share of income of $ 1.6 million and $ 1.2 million, respectively, from Cash Converters, included in “Equity in net income of unconsolidated affiliates” in the condensed consolidated statements of operations. See Note 6: Fair Value Measurements for the fair value and carrying value of our investment in Cash Converters. Founders One, LLC In fiscal 2022, we invested $ 15.0 million in exchange for a non-redeemable voting participating preferred equity interest in Founders One, LLC (“Founders”), a then newly-formed entity with one other member. In fiscal 2023, we contributed an additional $ 15.0 million associated with our preferred interest and loaned Founders $ 15.0 million in exchange for a Demand Promissory Note secured by the common interest held by the other member. In fiscal 2024, we contributed an additional $ 15.0 million associated with our preferred interest, bringing our total preferred equity investment in Founders to $ 45.0 million. We have an interest in Founders, a variable interest entity, but because the Company is not the primary beneficiary, we do not consolidate Founders. Further, as we are not the appointed manager, we do not have the ability to direct the activities of the investment entity that most significantly impact its economic performance. Consequently, our preferred equity investment in Founders is accounted for utilizing the measurement alternative within ASC 321, Investments — Equity Securities. As of December 31, 2024, our $ 45.0 million carrying value of the preferred equity investment and $ 15.0 million Demand Promissory Note are included in “Other investments” and “Prepaid expenses and other current assets” in our condensed consolidated balance sheets, respectively. As of December 31, 2024, our maximum exposure for losses related to our investment in Founders was our $ 45.0 million preferred equity investment and $ 15.0 million Demand Promissory Note plus accrued and unpaid interest. See Note 6: Fair Value Measurements for the fair value and carrying value of our loan to Founders. NOTE 6: FAIR VALUE MEASUREMENTS The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: • Level 1 — Quoted market prices in active markets for identical assets or liabilities. • Level 2 — Other observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3 — Unobservable inputs that are not corroborated by market data. We have elected not to measure at fair value any eligible items for which fair value measurement is optional. There were no transfers in or out of Level 1, Level 2 or Level 3 for financial assets or liabilities measured at fair value on a recurring basis during the periods presented. Financial Assets and Liabilities Not Measured at Fair Value The tables below present our estimates of fair value of financial assets and liabilities that were not measured at fair value: Carrying Value Estimated Fair Value December 31, 2024 December 31, 2024 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable from Founders $ 16,317 $ 16,317 $ — $ — $ 16,317 Investments in unconsolidated affiliates 13,555 43,328 42,478 — 850 Financial liabilities: 2025 Convertible Notes $ 103,205 $ 102,339 $ — $ 102,339 $ — 2029 Convertible Notes 224,505 289,887 — 289,887 — 11 Table of Contents Carrying Value Estimated Fair Value December 31, 2023 December 31, 2023 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable due April 2024 $ 1,259 $ 1,259 $ — $ — $ 1,259 Promissory note receivable from Founders 17,073 17,073 — — 17,073 Investments in unconsolidated affiliates 10,125 39,528 39,528 — — Financial liabilities: 2024 Convertible Notes $ 34,307 $ 34,733 $ — $ 34,733 $ — 2025 Convertible Notes 102,695 94,173 — 94,173 — 2029 Convertible Notes 223,528 236,900 — 236,900 — Carrying Value Estimated Fair Value September 30, 2024 September 30, 2024 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable from Founders $ 15,722 $ 15,722 $ — $ — $ 15,722 Investments in unconsolidated affiliates 13,329 42,496 41,646 — 850 Financial liabilities: 2025 Convertible Notes $ 103,072 $ 100,401 $ — $ 100,401 $ — 2029 Convertible Notes 224,256 273,700 — 273,700 — Based primarily on the short-term nature of cash and cash equivalents, pawn loans, pawn service charges receivable and other liabilities, we estimate that their carrying value approximates fair value. We consider our cash and cash equivalents, including money market accounts, to be measured using Level 1 inputs and our pawn loans, pawn service charges receivable and other liabilities to be measured using Level 3 inputs. Significant increases or decreases in the underlying assumptions used to value pawn loans, pawn service charges receivable, fees and interest receivable and other debt could significantly increase or decrease these fair value estimates. In fiscal 2023, we loaned $ 15.0 million to Founders in exchange for a Demand Promissory Note secured by the common interest in Founders held by the other member. As of December 31, 2024, the interest rate on the note was 15.00 % per annum, and all principal and accrued interest is due on demand. Based primarily on the short-term nature of the note, we estimate that its carrying value approximates fair value as of December 31, 2024. In fiscal 2019, we received $ 1.1 million in previously escrowed seller funds as a result of settling certain indemnification claims with the seller of GPMX. In April 2019, we loaned the $ 1.1 million back to the seller of GPMX in exchange for a promissory note. The interest rate on the note was 2.89 % per annum and was secured by certain marketable securities owned by the seller and held in a U.S. brokerage account. All principal and accrued interest was received in April 2024. We use the equity method of accounting to account for our ownership interest in Cash Converters. The inputs used to generate the fair value of the investment in Cash Converters were considered Level 1 inputs. These inputs consist of (a) the quoted stock price on the Australian Stock Exchange multiplied by (b) the number of shares we owned multiplied by (c) the applicable foreign currency exchange rate as of the end of our reporting period. We included no control premium for owning a large percentage of outstanding shares. We measured the fair value of the 2024, 2025 and 2029 Convertible Notes using quoted price inputs. The notes are not actively traded, and thus the price inputs represent a Level 2 measurement. As the quoted price inputs are highly variable from day to day, the fair value estimates disclosed above could significantly increase or decrease. 12 Table of Contents NOTE 7: DEBT The following table presents the Company's debt instruments outstanding: December 31, 2024 December 31, 2023 September 30, 2024 (in thousands) Gross Amount Debt Issuance Costs Carrying Amount Gross Amount Debt Issuance Costs Carrying Amount Gross Amount Debt Issuance Costs Carrying Amount 2029 Convertible Notes $ 230,000 $ ( 5,495 ) $ 224,505 $ 230,000 $ ( 6,472 ) $ 223,528 $ 230,000 $ ( 5,744 ) $ 224,256 2025 Convertible Notes 103,373 ( 168 ) 103,205 103,373 ( 678 ) 102,695 103,373 ( 301 ) 103,072 2024 Convertible Notes — — — 34,389 ( 82 ) 34,307 — — — Total $ 333,373 $ ( 5,663 ) $ 327,710 $ 367,762 $ ( 7,232 ) $ 360,530 $ 333,373 $ ( 6,045 ) $ 327,328 Less current portion 103,373 ( 168 ) 103,205 34,389 ( 82 ) 34,307 103,373 ( 301 ) 103,072 Total long-term debt $ 230,000 $ ( 5,495 ) $ 224,505 $ 333,373 $ ( 7,150 ) $ 326,223 $ 230,000 $ ( 5,744 ) $ 224,256 The following table presents the Company’s contractual maturities related to the debt instruments as of December 31, 2024: Schedule of Contractual Maturities (in thousands) 2029 Convertible Notes 2025 Convertible Notes Total Remaining 2025 $ — $ 103,373 $ 103,373 Fiscal 2026 — — — Fiscal 2027 — — — Fiscal 2028 — — — Fiscal 2029 — — — Thereafter 230,000 — 230,000 Total long-term debt $ 230,000 $ 103,373 $ 333,373 The following table presents the Company’s interest expense related to the Convertible Notes for the three months ended December 31, 2024 and 2023: Three Months Ended December 31, (in thousands) 2024 2023 2029 Convertible Notes: Contractual interest expense $ 2,156 $ 2,156 Amortization of deferred financing costs 249 244 Total interest expense $ 2,405 $ 2,400 2025 Convertible Notes: Contractual interest expense $ 614 $ 614 Amortization of deferred financing costs 133 131 Total interest expense $ 747 $ 745 2024 Convertible Notes: Contractual interest expense $ — $ 247 Amortization of deferred financing costs — 42 Total interest expense $ — $ 289 13 Table of Contents 2029 Convertible Notes In December 2022, we issued $ 230.0 million aggregate principal amount of the 2029 Convertible Notes, for which $ 230.0 million remains outstanding as of December 31, 2024. The 2029 Convertible Notes were issued pursuant to an indenture dated December 12, 2022 (the “2022 Indenture”) by and between the Company and Truist Bank, as trustee. The 2029 Convertible Notes were issued in a private offering under Rule 144A under the Securities Act of 1933. The 2029 Convertible Notes pay interest semi-annually in arrears at a rate of 3.750 % per annum on June 15 and December 15 of each year, commencing June 15, 2023, and mature on December 15, 2029 (the “2029 Maturity Date”), unless converted, redeemed or repurchased in accordance with the terms prior to such date. At maturity, the holders of the 2029 Convertible Notes will be entitled to receive cash equal to the principal of the 2029 Convertible Notes plus accrued interest. The effective interest rate for the three months ended December 31, 2024 was approximately 4.28 %. As of December 31, 2024, the remaining unamortized debt issuance costs will be amortized using the effective interest method through the 2029 Maturity Date assuming no early conversion. The 2029 Convertible Notes are convertible based on an initial conversion rate of 89.0313 shares of Class A Common Stock per $1,000 principal amount (equivalent to an initial conversion price of $ 11.23 per share). The conversion rate will not be adjusted for any accrued and unpaid interest. The 2029 Convertible Notes contain certain make-whole fundamental change premiums and customary anti-dilution adjustments. Upon conversion, we may settle in cash, shares of Class A Common Stock or any combination thereof, at our election. Prior to June 15, 2029, the 2029 Convertible Notes will be convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on March 31, 2023 (and only during such fiscal quarter), if the last reported sale price of our Class A Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price, as defined in the 2022 Indenture, per $1,000 principal amount of notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of our Class A Common Stock and the conversion rate on such trading day; (3) if we call any or all of the 2029 Convertible Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, as defined in the 2022 Indenture. On or after June 15, 2029 until the close of business on the business day immediately preceding the 2029 Maturity Date, holders of 2029 Convertible Notes may, at their option, convert their 2029 Convertible Notes at any time, regardless of the foregoing circumstances. We may not redeem the 2029 Convertible Notes prior to December 21, 2026. At our option, we may redeem for cash all or any portion of the 2029 Convertible Notes on or after December 21, 2026, if the last reported sale price of the Class A Common Stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. The redemption price will be equal to 100 % of the principal amount of the 2029 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. As of December 31, 2024, the 2029 Convertible Notes were not convertible as no conditions of conversion had been met. Accordingly, the net balance of the 2029 Convertible Notes was classified as a non-current liability in our condensed consolidated balance sheets as of December 31, 2024. The classification of the 2029 Convertible Notes as current or non-current in the condensed consolidated balance sheets is evaluated at each balance sheet date and may change from time to time depending on whether any of the conversion conditions has been met. If one of the conversion conditions is met in any future fiscal quarter, we will classify our net liability under the 2029 Convertible Notes as a current liability in the condensed consolidated balance sheets as of the end of that fiscal quarter. If none of the conversion conditions have been met in a future fiscal quarter prior to the one-year period immediately preceding the 2029 Maturity Date, we will classify our net liability under the 2029 Convertible Notes as a non-current liability in the condensed consolidated balance sheets as of the end of that fiscal quarter. If the note holders elect to convert their 2029 Convertible Notes prior to maturity, any unamortized debt issuance costs will be recognized as expense at the time of conversion. If the entire outstanding principal amount had been converted on December 31, 2024, we would have recorded an expense associated with the conversion, comprised of $ 5.5 million of unamortized debt issuance costs. The stock trading price condition and other triggers are measured on a quarter-by-quarter basis and were not met as of December 31, 2024. As of December 31, 2024, the if-converted value of the 2029 Convertible Notes did not exceed the principal amount. 14 Table of Contents 2025 Convertible Notes In May 2018, we issued $ 172.5 million aggregate principal amount of the 2025 Convertible Notes. The 2025 Convertible Notes were issued pursuant to an indenture dated May 14, 2018 (the “2018 Indenture”) by and between the Company and Wells Fargo Bank, National Association, as the original trustee. Effective October 1, 2019, Truist (formerly BB&T) assumed the duties and responsibilities as trustee under the 2018 Indenture. The 2025 Convertible Notes were issued in a private offering under Rule 144A under the Securities Act of 1933. In December 2022, we repurchased approximately $ 69.1 million aggregate principal amount of the 2025 Convertible Notes for approximately $ 62.9 million plus accrued interest. As of December 31, 2024, $ 103.4 million remains outstanding. The 2025 Convertible Notes pay interest semi-annually in arrears at a rate of 2.375 % per annum on May 1 and November 1 of each year, commencing November 1, 2018, and mature on May 1, 2025 (the “2025 Maturity Date”), unless converted, redeemed or repurchased in accordance with the terms prior to such date. The effective interest rate for the three months ended December 31, 2024 was approximately 2.88 % for the 2025 Convertible Notes. As of December 31, 2024, the remaining unamortized debt issuance costs will be amortized using the effective interest method through the 2025 Maturity Date assuming no early conversion. The 2025 Convertible Notes are convertible based on an initial conversion rate of 62.8931 shares of Class A Common Stock per $1,000 principal amount (equivalent to an initial conversion price of $ 15.90 per share). The conversion rate will not be adjusted for any accrued and unpaid interest. The 2025 Convertible Notes contain certain make-whole fundamental change premiums and customary anti-dilution adjustments. Until the close of business on the business day immediately preceding the 2025 Maturity Date, holders of 2025 Convertible Notes may, at their option, convert their 2025 Convertible Notes at any time. Pursuant to the terms of the 2018 Indenture, we have elected to settle any conversions of the 2025 Convertible Notes using shares of Class A Common Stock (physical settlement). On October 28, 2024, we provided notice of that election to the trustee. If the note holders elect to convert their 2025 Convertible Notes prior to maturity, any unamortized debt issuance costs will be recognized as expense at the time of conversion. If the entire outstanding principal amount had been converted on December 31, 2024, we would have recorded an expense associated with the conversion, comprised of $ 0.2 million of unamortized debt issuance costs. The stock trading price condition and other triggers are measured on a quarter-by-quarter basis and were not met as of December 31, 2024. As of December 31, 2024, the if-converted value of the 2025 Convertible Notes did not exceed the principal amount and none of the note holders had elected to convert their 2025 Convertible Notes. 2024 Convertible Notes In July 2017, we issued $ 143.75 million aggregate principal amount of the 2024 Convertible Notes. The 2024 Convertible Notes were issued pursuant to an indenture dated July 5, 2017 (the “2017 Indenture”) by and between the Company and Wells Fargo Bank, National Association, as the original trustee. Effective October 1, 2019, Truist (formerly BB&T) assumed the duties and responsibilities as trustee under the 2017 Indenture. The 2024 Convertible Notes were issued in a private offering under Rule 144A under the Securities Act of 1933. In December 2022, we repurchased approximately $ 109.4 million aggregate principal amount of the 2024 Convertible Notes for approximately $ 117.5 million plus accrued interest. On July 1, 2024, the $ 34.4 million aggregate principal amount outstanding plus accrued interest was repaid using cash on hand and 77,328 Class A Common Stock shares, equal to the accreted value, were issued as part of the 2024 Convertible Notes conversion. The 2024 Convertible Notes paid interest semi-annually in arrears at a rate of 2.875 % per annum on January 1 and July 1 of each year, commencing January 1, 2018, and matured on July 1, 2024 (the “2024 Maturity Date”). The 2024 Convertible Notes were convertible based on an initial conversion rate of 100 shares of Class A Common Stock per $1,000 principal amount (equivalent to an initial conversion price of $ 10.00 per share). Until the close of business on the business day immediately preceding the 2024 Maturity Date, holders of 2024 Convertible Notes could, at their option, convert their 2024 Convertible Notes at any time. Because we did not elect an alternative settlement method prior to January 1, 2024, conversions were settled by combination settlement, which was $1,000 cash (per the $1,000 principal value) plus stock equal to the accreted value as defined in the 2017 Indenture. 15 Table of Contents NOTE 8: COMMON STOCK AND STOCK COMPENSATION Common Stock Repurchase Program On May 3, 2022, the Company’s Board of Directors (the “Board”) authorized the repurchase of up to $ 50 million of our Class A Common Stock over three years (the “Common Stock Repurchase Program”). 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. The amount and timing of purchases will be dependent on a variety of factors, including stock price, trading volume, general market conditions, legal and regulatory requirements, general business conditions, the level of cash flows, and corporate considerations determined by management and the Board, such as liquidity and capital needs and the availability of attractive alternative investment opportunities. The Board of Directors has reserved the right to modify, suspend or terminate the program at any time. As of December 31, 2024, we had repurchased and retired 3,096,011 shares of our Class A Common Stock for $ 29.0 million under the Common Stock Repurchase Program, of which 250,463 shares were repurchased and retired for $ 3.0 million during the three months ended December 31, 2024. During the three months ended December 31, 2023, 354,882 shares were repurchased and retired for $ 3.0 million under the Common Stock Repurchase Program. The repurchase amount is allocated between “Additional paid-in capital” and “Retained earnings” in our condensed consolidated balance sheets. Stock Compensation We maintain a Board-approved incentive plan to retain the services of our valued officers, directors and employees and to incentivize such persons to make contributions to our company and motivate excellent performance (the “Incentive Plan”). Under the Incentive Plan, we grant awards of restricted stock or restricted stock units to employees and non-employee directors. Awards granted to employees are typically subject to performance and service conditions. Awards granted to non-employee directors are time-based awards subject only to service conditions. Awards granted under the Incentive Plan are measured at the grant date fair value with compensation costs associated with the awards recognized over the requisite service period, usually the vesting period, on a straight-line basis. The following table presents a summary of stock compensation activity: Shares Weighted Average Grant Date Fair Value Outstanding as of September 30, 2024 2,699,914 $ 7.91 Granted (a) 1,138,292 10.13 Released (b) ( 1,055,736 ) 7.39 Outstanding as of December 31, 2024 2,782,470 $ 9.02 (a) Includes performance adjustment of 320,076 shares awarded above their target grants resulting from the achievement of performance targets established at the grant date. (b) 337,421 shares were withheld to satisfy related income tax withholding. NOTE 9: COMMITMENTS AND CONTINGENCIES Currently, and from time to time, we are involved in various claims, disputes, lawsuits, investigations, and legal and regulatory proceedings. We accrue for contingencies if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because these matters are inherently unpredictable and unfavorable developments or resolutions can occur, assessing contingencies requires judgments and is highly subjective about future events, and the amount of resulting loss may differ from these estimates. We do not believe the resolution of any particular matter will have a material adverse effect on our financial condition, results of operations or liquidity. 16 Table of Contents NOTE 10: SEGMENT INFORMATION Our operations are primarily managed on a geographical basis and are comprised of three reportable segments. The factors for determining our reportable segments include the manner in which our chief operating decision maker evaluates performance for purposes of allocating resources and assessing performance. We currently report our segments as follows: • U.S. Pawn — all pawn activities in the United States; • Latin America Pawn — all pawn activities in Mexico and other parts of Latin America; and • Other Investments — primarily our equity interest in Cash Converters and our investment in and notes receivable from Founders. There are no inter-segment revenues presented below, and the amounts below were determined in accordance with the same accounting principles used in our condensed consolidated financial statements. The following income (loss) before income taxes tables present revenues for each reportable segment, disaggregated revenues within our reportable segments and Corporate, segment profits and segment contribution. Three Months Ended December 31, 2024 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 128,800 $ 57,543 $ — $ 186,343 $ — $ 186,343 Jewelry scrapping sales 15,498 1,234 — 16,732 — 16,732 Pawn service charges 87,876 29,176 — 117,052 — 117,052 Other revenues 27 16 — 43 — 43 Total revenues 232,201 87,969 — 320,170 — 320,170 Merchandise cost of goods sold 81,556 40,268 — 121,824 — 121,824 Jewelry scrapping cost of goods sold 11,968 974 — 12,942 — 12,942 Gross profit 138,677 46,727 — 185,404 — 185,404 Segment and corporate expenses (income): Store expenses 83,089 33,362 — 116,451 — 116,451 General and administrative — — — — 18,669 18,669 Depreciation and amortization 2,717 2,046 — 4,763 3,572 8,335 Loss on sale or disposal of assets and other — 8 — 8 — 8 Interest expense — — — — 3,147 3,147 Interest income — ( 202 ) ( 594 ) ( 796 ) ( 1,297 ) ( 2,093 ) Equity in net (income) loss of unconsolidated affiliates — — ( 1,623 ) ( 1,623 ) 148 ( 1,475 ) Other (income) expense ( 11 ) ( 71 ) — ( 82 ) 1,060 978 Segment contribution $ 52,882 $ 11,584 $ 2,217 $ 66,683 Income (loss) before income taxes $ 66,683 $ ( 25,299 ) $ 41,384 17 Table of Contents Three Months Ended December 31, 2023 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 125,513 $ 53,890 $ — $ 179,403 $ — $ 179,403 Jewelry scrapping sales 12,815 1,267 — 14,082 — 14,082 Pawn service charges 79,073 27,376 — 106,449 — 106,449 Other revenues 37 16 4 57 — 57 Total revenues 217,438 82,549 4 299,991 — 299,991 Merchandise cost of goods sold 78,709 36,501 — 115,210 — 115,210 Jewelry scrapping cost of goods sold 11,284 924 — 12,208 — 12,208 Gross profit 127,445 45,124 4 172,573 — 172,573 Segment and corporate expenses (income): Store expenses 77,255 33,300 — 110,555 — 110,555 General and administrative — — — — 16,543 16,543 Depreciation and amortization 2,624 2,339 — 4,963 3,602 8,565 Loss (gain) on sale or disposal of assets and other 26 ( 196 ) — ( 170 ) ( 2 ) ( 172 ) Interest expense — — — — 3,440 3,440 Interest income — ( 420 ) ( 573 ) ( 993 ) ( 1,646 ) ( 2,639 ) Equity in net income of unconsolidated affiliates — — ( 1,153 ) ( 1,153 ) — ( 1,153 ) Other (income) expense — ( 48 ) 1 ( 47 ) ( 224 ) ( 271 ) Segment contribution $ 47,540 $ 10,149 $ 1,729 $ 59,418 Income (loss) before income taxes $ 59,418 $ ( 21,713 ) $ 37,705 The following table presents separately identified segment assets: (in thousands) U.S. Pawn Latin America Pawn Other Investments Corporate Items Total As of December 31, 2024 Pawn loans $ 220,208 $ 54,616 $ — $ — $ 274,824 Pawn service charges receivable, net 40,908 4,290 — — 45,198 Inventory, net 148,460 51,021 — — 199,481 Total assets 1,029,206 305,337 80,242 84,348 1,499,133 As of December 31, 2023 Pawn loans $ 190,766 $ 52,486 $ — $ — $ 243,252 Pawn service charges receivable, net 35,707 4,295 — — 40,002 Inventory, net 127,008 37,919 — — 164,927 Total assets 1,004,075 323,209 78,419 75,490 1,481,193 As of September 30, 2024 Pawn loans $ 214,306 $ 59,778 $ — $ — $ 274,084 Pawn service charges receivable, net 39,194 4,819 — — 44,013 Inventory, net 138,624 53,299 — — 191,923 Total assets 1,009,226 311,824 79,421 92,766 1,493,237 18 Table of Contents NOTE 11: SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION The following table provides supplemental information on net amounts included in our condensed consolidated balance sheets: (in thousands) December 31, 2024 December 31, 2023 September 30, 2024 Gross pawn service charges receivable $ 57,359 $ 50,919 $ 57,544 Allowance for uncollectible pawn service charges receivable ( 12,161 ) ( 10,917 ) ( 13,531 ) Pawn service charges receivable, net $ 45,198 $ 40,002 $ 44,013 Gross inventory $ 202,529 $ 167,660 $ 194,657 Inventory reserves ( 3,048 ) ( 2,733 ) ( 2,734 ) Inventory, net $ 199,481 $ 164,927 $ 191,923 Prepaid expenses and other $ 4,218 $ 6,868 $ 3,350 Accounts receivable and other 13,945 15,699 16,482 Notes receivable 16,924 18,333 16,332 Income taxes prepaid and receivable 1,475 3,101 3,007 Prepaid expenses and other current assets $ 36,562 $ 44,001 $ 39,171 Property and equipment, gross $ 280,953 $ 352,291 $ 280,714 Accumulated depreciation ( 217,722 ) ( 283,293 ) ( 214,741 ) Property and equipment, net $ 63,231 $ 68,998 $ 65,973 Accounts payable $ 14,822 $ 18,200 $ 20,850 Accrued payroll 9,694 7,682 13,541 Incentive accrual 6,139 6,859 19,883 Other payroll related expenses 5,525 7,849 3,999 Accrued sales and VAT taxes 4,782 6,089 3,954 Accrued income taxes payable 13,600 9,068 5,934 Other current liabilities 14,120 13,639 17,576 Accounts payable, accrued expenses and other current liabilities $ 68,682 $ 69,386 $ 85,737 The following table provides supplemental disclosure of condensed consolidated statements of cash flows information: Three Months Ended December 31, (in thousands) 2024 2023 Supplemental disclosure of cash flow information Cash and cash equivalents at beginning of period $ 170,513 $ 220,595 Restricted cash at beginning of period 9,294 8,373 Total cash and cash equivalents and restricted cash at beginning of period $ 179,807 $ 228,968 Cash and cash equivalents at end of period $ 174,506 $ 218,516 Restricted cash at end of period 9,386 8,470 Total cash and cash equivalents and restricted cash at end of period $ 183,892 $ 226,986 Non-cash investing and financing activities: Pawn loans forfeited and transferred to inventory $ 109,219 $ 96,472 Accrued acquisition consideration — 37 19 Table of Contents