EZCORP INC 10-Q

ITEM 2. 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”, “EZCORP” or the “Company”). The following discussion should be read together with our condensed consolidated financial statements and related notes included elsewhere within this report. This discussion contains forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements. See “ Part I, Item 1A — Risk Factors ” of our Annual Report on Form 10-K for the year ended September 30, 2024, as supplemented by the information set forth in “Part I, Item 3 — Quantitative and Qualitative Disclosures about Market Risk” and “Part II, Item 1A — Risk Factors” of this Report, for a discussion of certain risks, uncertainties and assumptions associated with these statements. Business Developments 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. On May 1, 2025, the Company repaid the remaining principal balance, $6.4 million, with cash. See Note 8 of Notes to Condensed Consolidated Financial Statements included in "Part I, Item 1 — Financial Statements" of this Report for further discussion. Acquisition Agreement On June 17, 2025, the Company closed the acquisition of 40 stores across 13 states in Mexico. 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 stand-alone auto pawn stores. With this acquisition, the Company also takes over the management of 7 additional Monte Providencia stores, which we plan to acquire in the coming months. See Note 2 of Notes to Condensed Consolidated Financial Statements included in "Part I, Item 1 — Financial Statements" of this Report for further discussion. Business Overview EZCORP is a Delaware corporation headquartered in Austin, Texas. We are a leading provider of pawn services in the United States and Latin America. Pawn loans are nonrecourse loans collateralized by personal property. We also sell merchandise, primarily collateral forfeited from unpaid loans and pre-owned merchandise purchased from customers. We exist to serve our customers’ short-term cash needs, helping them to live and enjoy their lives. We are focused on three strategic pillars: Strengthen the Core Relentless focus on superior execution and operational excellence in our pawn business Cost Efficiency and Simplification Shape a culture of cost efficiency through ongoing focus on simplification and optimization Innovate and Grow Broaden customer engagement to service more customers more frequently in more locations Pawn Activities At our pawn stores, we advance cash against the value of collateralized tangible personal property. 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. 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. 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. 23 Table of Contents Our ability to offer quality pre-owned goods at prices significantly lower than original retail prices attracts value-conscious customers. 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. 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. Growth and Expansion Our strategy is to expand the number of locations we operate through opening new (“de novo”) locations and through acquisitions and investments in both Latin America, the United States and potential new markets. Our ability to open de novo stores, acquire new stores and make other related investments is dependent on several variables, such as projected achievement of internal investment hurdles, the availability of acceptable sites or acquisition candidates, the alignment of acquirer/seller price expectations, the regulatory environment, local zoning ordinances, access to capital and the availability of qualified personnel. Seasonality and Quarterly Results In the United States, PSC is historically highest in our fourth fiscal quarter (July through September) due to a higher average loan balance during the summer lending season. PSC is historically 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. 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 loan balances and fueling some merchandise sales in those periods. Financial Highlights We remain focused on optimizing our balance of pawn loans outstanding (“PLO”) and the resulting higher PSC. 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 the three and nine months ended June 30, 2025 and 2024: 24 Table of Contents The following chart presents sources of gross profit by geographic disbursement for the three and nine months ended June 30, 2025 and 2024: Results of Operations Non-GAAP Constant Currency and Same-Store Financial Information To supplement our condensed 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. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We analyze results on a same-store basis (which is defined as stores open during the entirety of the comparable periods) to better understand existing store performance without the influence of increases or decreases resulting solely from changes in store count. We believe presentation of constant currency and same-store results is meaningful and useful in understanding the activities and business metrics of our Latin America Pawn operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a better understanding and evaluation of factors and trends affecting our business. 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. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes. Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and are not directly calculable from the rates below. Constant currency results, where presented, also exclude the foreign currency gain or loss. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and nine months ended June 30, 2025 and 2024 were as follows: June 30, Three Months Ended June 30, Nine Months Ended June 30, 2025 2024 2025 2024 2025 2024 Mexican peso 18.8 18.3 19.5 17.2 20.0 17.3 Guatemalan quetzal 7.6 7.6 7.6 7.6 7.6 7.6 Honduran lempira 25.8 24.3 25.7 24.3 25.2 24.3 Australian dollar 1.5 1.5 1.6 1.5 1.6 1.5 25 Table of Contents Operating Results Segments We manage our business and report our financial results in three reportable segments: • U.S. Pawn — Represents all pawn activities in the United States; • Latin America Pawn — Represents all pawn activities in Mexico and other parts of Latin America; and • Other Investments — Represents our equity interest in Cash Converters and our investment in and notes receivable from Founders. Store Count by Segment Three Months Ended June 30, 2025 U.S. Pawn Latin America Pawn Consolidated As of March 31, 2025 542 742 1,284 New locations opened — 10 10 Locations acquired 3 40 43 Locations combined or closed — (1) (1) As of June 30, 2025 545 791 1,336 Three Months Ended June 30, 2024 U.S. Pawn Latin America Pawn Consolidated As of March 31, 2024 535 711 1,246 New locations opened 1 6 7 Locations acquired 5 — 5 As of June 30, 2024 541 717 1,258 Nine Months Ended June 30, 2025 U.S. Pawn Latin America Pawn Consolidated As of September 30, 2024 542 737 1,279 New locations opened — 23 23 Locations acquired 3 41 44 Locations combined or closed — (10) (10) As of June 30, 2025 545 791 1,336 Nine Months Ended June 30, 2024 U.S. Pawn Latin America Pawn Consolidated As of September 30, 2023 529 702 1,231 New locations opened 1 20 21 Locations acquired 12 — 12 Locations combined or closed (1) (5) (6) As of June 30, 2024 541 717 1,258 26 Table of Contents Three Months Ended June 30, 2025 vs. Three Months Ended June 30, 2024 These tables, as well as the discussion that follows, should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and related notes. U.S. Pawn The following table presents selected summary financial data for our U.S. Pawn segment: Three Months Ended June 30, Change (in thousands) 2025 2024 Gross profit: Pawn service charges $ 83,930 $ 77,416 8% Merchandise sales 112,249 107,849 4% Merchandise sales gross profit 43,165 40,620 6% Gross margin on merchandise sales 38 % 38 % —bps Jewelry scrapping sales 23,750 13,757 73% Jewelry scrapping sales gross profit 6,936 1,870 271% Gross margin on jewelry scrapping sales 29 % 14 % 1,500bps Other revenues 31 28 11% Gross profit 134,062 119,934 12% Segment operating expenses: Store expenses 83,778 81,441 3% Depreciation and amortization 2,651 2,408 10% Gain on sale or disposal of assets and other — (2) (100)% Segment contribution $ 47,633 $ 36,087 32% Other data: Net earning assets (a) $ 387,433 $ 321,218 21% Inventory turnover 2.1 2.6 (19)% Average monthly ending pawn loan balance per store (b) 389 352 11% Monthly average yield on pawn loans outstanding 13 % 14 % (100)bps General merchandise as a % of PLO 33 % 34 % (100)bps Jewelry as a % of PLO 67 % 66 % 100bps (a) Balance includes pawn loans and inventory. (b) Balance is calculated based upon the average of the monthly ending balances during the applicable period. PLO ended the quarter at $221.1 million, an increase of 11% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance. Total revenues increased 11% and gross profit increased 12%, driven by increased PSC, merchandise sales and scrap sales. PSC increased 8% as a result of higher average PLO, partially offset by lower PLO yield. Merchandise sales increased 4%, on a total and same-store basis, and sales gross margin increased by 80 bps to 38%. Aged general merchandise, which is inventory over one year old, decreased by 260 basis points to 2.5%, or $1.2 million of total general merchandise inventory. Excluding our Max Pawn luxury stores, aged general merchandise was 1.8%. Net inventory increased 36%, due to the increase in PLO, layaways and purchases and a decrease in inventory turnover to 2.1x, from 2.6x. Store expenses increased 3% on a total and same-store basis. Segment contribution increased 32% to $47.6 million. 27 Table of Contents Segment store count increased by 3 to 545, due to acquisitions, including one luxury store in Miami. Latin America Pawn The following table presents selected summary financial data for the Latin America Pawn segment, including constant currency results, after translation to U.S. dollars from its functional currencies noted above under “Results of Operations — Non-GAAP Constant Currency and Same-Store Financial Information.” Three Months Ended June 30, (in thousands) 2025 (GAAP) 2024 (GAAP) Change (GAAP) 2025 (Constant Currency) Change (Constant Currency) Gross profit: Pawn service charges $ 31,409 $ 30,414 3% $ 34,298 13% Merchandise sales 56,375 50,291 12% 62,056 23% Merchandise sales gross profit 17,233 16,309 6% 19,031 17% Gross margin on merchandise sales 31 % 32 % (100)bps 31 % (100)bps Jewelry scrapping sales 3,220 1,638 97% 3,540 116% Jewelry scrapping sales gross profit 918 42 * 1,018 * Gross margin on jewelry scrapping sales 29 % 3 % 2,600bps 29 % 2,600bps Other revenues, net 17 28 (39)% 20 (29)% Gross profit 49,577 46,793 6% 54,367 16% Segment operating expenses: Store expenses 35,345 34,894 1% 38,989 12% Depreciation and amortization 2,156 2,090 3% 2,373 14% Loss (gain) on sale or disposal of assets and other — 22 (100)% — (100)% Segment operating contribution 12,076 9,787 23% 13,005 33% Other segment income (368) (554) (34)% (459) (17)% Segment contribution $ 12,444 $ 10,341 20% $ 13,464 30% Other data: Net earning assets (a) $ 129,690 $ 112,439 15% $ 132,586 18% Inventory turnover 3.0 3.1 (3)% 3.0 (3)% Average monthly ending pawn loan balance per store (b) $ 88 $ 90 (2)% $ 95 6% Monthly average yield on pawn loans outstanding 16 % 16 % —bps 16 % —bps General merchandise as a % of PLO 60 % 65 % (500)bps 40 % (2,500)bps Jewelry as a % of PLO 40 % 35 % 500bps 60 % 2,500bps * Represents a percentage computation that is not mathematically meaningful. (a) Balance includes pawn loans and inventory. (b) Balance is calculated based upon the average of the monthly ending balances during the applicable period. 2025 Change (GAAP) 2025 Change (Constant Currency) Same-store data: PLO 2% 4% PSC —% 10% Merchandise Sales 8% 19% Merchandise Sales Gross Profit 3% 13% Store Expenses (3)% 7% 28 Table of Contents PLO improved to $70.6 million, an increase of 13% (16% on constant currency basis). On a same-store basis, PLO increased 2% (4% increase on a constant currency basis). The difference is primarily driven by our recent acquisition. Total revenues increased 11% (21% on constant currency basis), and gross profit increased 6% (16% on a constant currency basis), primarily due to increased merchandise sales and pawn service charges. PSC increased to $31.4 million, an increase of 3% (13% on a constant currency basis) as a result of higher average PLO. Merchandise sales increased 12% (23% on constant currency basis) and increased 8% on a same-store basis (19% increase on a constant currency basis). Merchandise sales gross margin decreased to 31% from 32%. Aged general merchandise increased to 2.2% from 0.9% of total general merchandise inventory. Net inventory increased 18% (21% on a constant currency basis) due to an increase in PLO and decrease in inventory turnover to 3.0x, from 3.1x. On a same-store basis, net inventory increased by 10% (13% on a constant currency basis). The difference is driven primarily by our recent acquisition. Store expenses increased 1% (12% increase on a constant currency basis) and decreased 3% on a same-store basis (7% increase on a constant currency basis). The constant currency increase was primarily due to increased labor, in line with store activity and minimum wage increases. Segment contribution increased 20% to $12.4 million (30% on a constant currency basis) Segment store count increased by 49 to 791, primarily due the acquisition of 40 stores, the addition of ten de novo stores, and the consolidation of one store. Other Investments The following table presents selected financial data for our Other Investments segment after translation to U.S. dollars from its functional currency of primarily Australian dollars: Three Months Ended June 30, Change (in thousands) 2025 2024 Gross profit: Consumer loan fees, interest and other $ — $ — —% Gross profit — — —% Segment operating expenses: Interest income (604) (605) —% Equity in net income of unconsolidated affiliates (1,409) (1,406) —% Segment operating contribution 2,013 2,011 —% Other segment loss — 12 (100)% Segment contribution $ 2,013 $ 1,999 1% Segment contribution was $2.0 million, consistent with prior quarter, primarily due to the increase in our share of equity in net income of Cash Converters. 29 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: Three Months Ended June 30, Percentage Change (in thousands) 2025 2024 Segment contribution $ 62,090 $ 48,427 28% Corporate expenses (income): General and administrative 21,780 20,060 9% Depreciation and amortization 3,196 3,660 (13)% Other income (1,262) — 100% Interest expense 8,387 3,539 137% Interest income (4,409) (1,956) 125% Equity in net loss of unconsolidated affiliates 209 143 46% Other loss (income) (524) (19) * Income before income taxes 34,713 23,000 51% Income tax expense 8,210 5,050 63% Net income $ 26,503 $ 17,950 48% * Represents a percentage computation that is not mathematically meaningful. Segment contribution increased $13.7 million or 28% over the prior year quarter, primarily due to improved operating results of the U.S. Pawn and Latin America Pawn segments. General and administrative expense increased $1.7 million or 9%, primarily due to labor and a gain on a corporate lease termination in the prior year. Income tax expense increased $3.2 million primarily due to an increase in income before taxes of $11.7 million. 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 the foreign rate differential. See our Annual Report on Form 10-K for the year ended September 30, 2024, 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. 30 Table of Contents Nine Months Ended June 30, 2025 vs. Nine Months Ended June 30, 2024 The tables below and discussion that follows should be read in conjunction with the accompanying condensed consolidated financial statements and related notes. U.S. Pawn The following table presents selected summary financial data for the U.S. Pawn segment: Nine Months Ended June 30, Change (in thousands) 2025 2024 Gross profit: Pawn service charges $ 259,354 $ 236,499 10% Merchandise sales 357,964 348,211 3% Merchandise sales gross profit 132,552 129,475 2% Gross margin on merchandise sales 37 % 37 % —bps Jewelry scrapping sales 56,146 39,258 43% Jewelry scrapping sales gross profit 14,129 5,293 167% Gross margin on jewelry scrapping sales 25 % 13 % 1,200bps Other revenues 82 94 (13)% Gross profit 406,117 371,361 9% Segment operating expenses: Store expenses 250,399 239,536 5% Depreciation and amortization 8,050 7,548 7% Loss (gain) on sale or disposal of assets and other 17 (6) * Segment operating contribution 147,651 124,283 19% Other segment gain (7) — 100% Segment contribution $ 147,658 $ 124,283 19% Other data: Average monthly ending pawn loan balance per store (a) $ 389 $ 352 11% Monthly average yield on pawn loans outstanding 14 % 14 % —bps * Represents a percentage computation that is not mathematically meaningful. (a) Balance is calculated based upon the average of the monthly ending balances during the applicable period. During the nine months ended June 30, 2025, segment store count increased to 545. Pawn service charges increased 10% as a result of higher average PLO, partially offset by lower PLO yield. Merchandise sales increased 3%, and merchandise sale gross profit increased 2%. Store expenses increased 5% (5% on a same-store basis), primarily due to increased labor, in line with store activity and minimum wage increases. Segment contribution increased $23.4 million, or 19%, primarily due to the changes described above. 31 Table of Contents Latin America Pawn The following table presents selected summary financial data our Latin America Pawn segment, including constant currency results, after translation to U.S. dollars from functional currencies. See “Results of Operations — Non-GAAP Constant Currency and Same-Store Financial Information” above. Nine Months Ended June 30, (in thousands) 2025 (GAAP) 2024 (GAAP) Change (GAAP) 2025 (Constant Currency) Change (Constant Currency) Gross profit: Pawn service charges $ 88,908 $ 84,943 5% $ 98,485 16% Merchandise sales 166,470 154,019 8% 186,656 21% Merchandise sales gross profit 50,277 50,075 —% 56,509 13% Gross margin on merchandise sales 30 % 33 % (300)bps 30 % (300)bps Jewelry scrapping sales 8,494 3,933 116% 9,656 146% Jewelry scrapping sales gross profit 2,144 419 412% 2,464 488% Gross margin on jewelry scrapping sales 25 % 11 % 1,400bps 26 % 1,500bps Other revenues, net 49 59 (17)% 57 (3)% Gross profit 141,378 135,496 4% 157,515 16% Segment operating expenses: Store expenses 101,702 101,936 —% 114,149 12% Depreciation and amortization 6,191 6,821 (9)% 6,937 2% Loss (gain) on sale or disposal of assets and other 8 (240) (103)% — (100)% Segment operating contribution 33,477 26,979 24% 36,429 35% Other segment income (1,115) (1,629) (32)% (1,215) (25)% Segment contribution $ 34,592 $ 28,608 21% $ 37,644 32% Other data: Average monthly ending pawn loan balance per store (a) $ 85 $ 83 2% $ 94 13% Monthly average yield on pawn loans outstanding 16 % 16 % —bps 16 % —bps (a) Balance is calculated based upon the average of the monthly ending balances during the applicable period. 2025 Change (GAAP) 2025 Change (Constant Currency) Same-store data: PLO 2% 4% PSC 3% 14% Merchandise Sales 6% 19% Merchandise Sales Gross Profit (1)% 11% Store Expenses (2)% 10% During the nine months ended June 30, 2025, net store count increased by 54 due to the acquisition of 41 stores, the opening of 23 de novo stores and the consolidation of ten stores. PSC increased 5% to $88.9 million (16% to $98.5 million on a constant currency basis) as a result of higher average PLO. Merchandise sales increased 8% (21% on a constant currency basis) and 6% on a same-store basis (19% on a constant currency basis). Merchandise sales gross margin decreased 300 bps to 30% from 33%. Store expenses remained constant and decreased by 2% on a same-store basis (10% increase on a constant currency basis). The constant currency increase was primarily due to increased labor, in line with store activity and minimum wage increases. 32 Table of Contents Segment contribution increased $6.0 million, or 21% ($9.0 million, or 32%, on a constant currency basis), due to the changes noted above. Other Investments The following table presents selected financial data for our Other Investments segment after translation to U.S. dollars from its functional currency of primarily Australian dollars: Nine Months Ended June 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 (1,803) (1,811) —% Equity in net (income) loss of unconsolidated affiliates (4,898) (4,278) 14% Segment operating contribution 6,701 6,124 9% Other segment loss — 27 (100)% Segment contribution $ 6,701 $ 6,097 10% Segment income was $6.7 million, an increase of $0.6 million from the prior-year nine months ended June 30, 2024, primarily due to the increase in our share of equity in net income of Cash Converters. 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: Nine Months Ended June 30, Percentage Change (in thousands) 2025 2024 Segment contribution $ 188,951 $ 158,988 19% Corporate expenses (income): General and administrative 60,089 54,869 10% Depreciation and amortization 10,117 10,573 (4)% Gain on sale or disposal of assets — 97 (100)% Other income (1,262) (765) 65% Interest expense 14,815 10,381 43% Interest income (6,639) (5,243) 27% Equity in net loss of unconsolidated affiliates 718 143 402% Other loss (income) 604 (423) (243)% Income before income taxes 110,509 89,356 24% Income tax expense 27,600 21,457 29% Net income $ 82,909 $ 67,899 22% * Represents a percentage computation that is not mathematically meaningful. Segment contribution increased $30.0 million or 19% over the prior year nine months ended June 30, 2024, primarily due to improved operating results of the U.S. Pawn and Latin America Pawn segments above. General and administrative expenses increased $5.2 million or 10%, primarily due to labor. Income tax expense increased $6.1 million, primarily due to an increase in income before income taxes of $21.2 million for the nine months ended June 30, 2025 compared to the same prior year nine month period. 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 the foreign rate differential. See Annual Report on Form 10-K for the year ended September 30, 2024, 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. 33 Table of Contents Liquidity and Capital Resources Cash and Cash Equivalents Our cash and cash equivalents balance was $472.1 million at June 30, 2025 compared to $170.5 million at September 30, 2024. At June 30, 2025, our cash and equivalents were held in cash depository accounts with major banks or invested in high quality, short-term liquid investments. Cash Flows The table and discussion below presents a summary of the selected sources and uses of our cash: Nine Months Ended June 30, Percentage Change (in thousands) 2025 2024 Net cash provided by operating activities $ 97,730 $ 70,264 39% Net cash used in investing activities (66,040) (59,234) 11% Net cash provided by (used in) financing activities 275,606 (12,648) * Effect of exchange rate changes on cash, cash equivalents and restricted cash (26) (108) * Net increase in cash, cash equivalents and restricted cash $ 307,270 $ (1,726) * * Represents a percentage computation that is not mathematically meaningful. The $27.5 million increase in cash flows provided by operating activities year-over-year was primarily due to an increase in net income as well as changes in working capital primarily related to the timing of payments of accounts payable, prepaid expenses, customer layaway deposits, inventory and income taxes. The $6.8 million increase in cash flows used in investing activities year-over-year was primarily due to a $29.1 million increase in net pawn lending outflows, partially offset by a $19.1 million increase in cash inflows from the sale of forfeited collateral and a $3.2 million decrease in net cash flows used related to investments, acquisitions and capital expenditures. The $288.3 million increase in cash flows provided by financing activities was primarily related to the March 2025 financing of the 2032 Senior Notes, in which we issued $300.0 million principal amount (less issuance costs of $7.6 million) of 7.375% senior notes due 2032, partially offset by the repayment of $6.4 million of principal for the 2025 Convertible Notes. The net effect of these changes was a $307.3 million increase in cash on hand during the current year to date period, resulting in a $487.1 million ending cash and restricted cash balance. Sources and Uses of Cash On May 1, 2025, we repaid the remaining principal balance, approximately $6.4 million of the 2025 Convertible Notes. In March 2025, we issued $300.0 million aggregate principal amount of the Company’s 7.375% senior notes due 2032, for which $300.0 million remains outstanding as of June 30, 2025. See Note 8 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements” of this Report for further discussion. On May 3, 2022, our Board authorized the repurchase of up to $50 million of our Class A Common Stock over three years. As of June 30, 2025, we have repurchased 3,178,147 shares of our Class A Common Stock under the program for $30.0 million. This program expired on May 3, 2025. During the three months ended June 30, 2025, the Company used approximately $2.0 million of the net proceeds from the 2032 Senior Notes offering to repurchase for cash 148,921 shares of its Class A common stock in privately negotiated transactions. Such transactions were authorized separately from, and not considered a part of the Common Stock Repurchase Program. See Note 9 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.” We anticipate that cash flows from operations and cash on hand will be adequate to fund ongoing operations, current 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 the next twelve months. We continue to explore acquisition opportunities, both large and small, and may choose to pursue additional debt, equity or equity-linked financings in the future should the need arise. 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 2032 Senior Notes maturing in 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. 34 Table of Contents Contractual Obligations 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, we reported that we had $673.5 million in total contractual obligations as of September 30, 2024. There have been no material changes to this total obligation since September 30, 2024, other than the 2032 Senior Notes financing as further discussed in Note 7: Debt of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.” We are responsible for the maintenance, property taxes and insurance at most of our locations. In the fiscal year ended September 30, 2024, these collectively amounted to $17.7 million. Recently Adopted Accounting Policies and Recently Issued Accounting Pronouncements See Note 1 of the Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements” of this Quarterly Report for recently issued accounting pronouncements including the expected dates of adoption and estimated effects, if any, on our consolidated financial statements. Cautionary Statement Regarding Risks and Uncertainties that May Affect Future Results This Quarterly Report on Form 10-Q, 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 intend that all forward-looking statements be subject to the safe harbors created by these laws. All statements, other than statements of historical facts, regarding our strategy, future operations, financial position, future revenues, projected costs, prospects, plans and objectives are forward-looking statements. These statements are often, but not always, made with words or phrases like “may,” “should,” “could,” “will,” “predict,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “projection” and similar expressions. Such statements are only predictions of the outcome and timing of future events based on our current expectations and currently available information and, accordingly, are subject to substantial risks, uncertainties and assumptions. Actual results could differ materially from those expressed in the forward-looking statements due to a number of risks and uncertainties, many of which are beyond our control. In addition, we cannot predict all of the risks and uncertainties that could cause our actual results to differ from those expressed in the forward-looking statements. Accordingly, you should not regard any forward-looking statements as a representation that the expected results will be achieved. Important risk factors that could cause results or events to differ from current expectations are identified and described in “ Part I, Item 1A — Risk Factors ” of our Annual Report on Form 10-K for the year ended September 30, 2024 and “Part II, Item 1A — Risk Factors” of this Report. We specifically disclaim any responsibility to publicly update any information contained in a forward-looking statement except as required by law. All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.