EZCORP INC 10-K

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Market Risk Disclosures We are exposed to market risk related primarily to gold values and changes in foreign currency exchange rates. Our earnings and financial position are affected by changes in gold values and, to a lesser extent, silver and precious stone values and the resulting impact on pawn lending, jewelry sales and jewelry cost of goods sold. The proceeds of scrap sales and our ability to sell jewelry inventory at an acceptable margin depend on gold values. The impact on our financial position and results of operations of a hypothetical change in gold values cannot be reasonably estimated due to the timing of scrap sales, among other operational considerations. Our earnings and financial position are affected by foreign exchange rate fluctuations related to our equity investments and our operations outside the U.S. While we generally do not seek to hedge amounts in foreign currencies, we consider hedging strategies from time to time to mitigate certain discrete risks of exposure via short term arrangements. The translation adjustment from Cash Converters through June 30, 2025 (included in our September 30, 2025 results on a three-month lag) was a nominal increase to stockholders’ equity, excluding income tax impacts. As of September 30, 2025, $1.00 Australian dollar weakened at $0.6623 U.S. as compared to $0.6944 in the prior year. The translation adjustment from Latin America primarily representing the change of the Mexican peso during the fiscal year ended September 30, 2025 was a $12.1 million increase to stockholders’ equity. As of September 30, 2025, the Mexican peso strengthened approximately 7% to $1.00 Mexican to $0.0545 U.S. from $0.0508 U.S. as of September 30, 2024. As of September 30, 2025, the Guatemalan quetzal slightly strengthened Q1.00 Guatemalan to $0.1326 U.S. from $0.1325 U.S. as of September 30, 2024. We have currently assumed indefinite reinvestment of earnings and capital in Latin America in excess of the $20.0 million of prior earnings for which applicable withholding taxes have been accrued as of September 30, 2025. Accumulated translation gains or losses related to any future repatriation of earnings or capital would impact our earnings in the period of repatriation. To a lesser degree, our operations are affected by fluctuations in the exchange rate of the Honduran lempira. We cannot predict the future valuation of foreign currencies or how further movements in exchange rates could affect our future earnings or financial position due to the interrelationship of operating results and exchange rates. 37 Table of Contents