What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-02-04 compared with 2025-07-30 · 101 added, 246 removed, 163 unchanged (68% of the section changed)

7 unchanged sentences

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.

Share Repurchase Program

On November 11, 2025, the Board of Directors (“Board”) approved a new share repurchase program which replaced the previous program that expired on May 3, 2025.

See Note 9 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.” Under the new program, we are authorized to repurchase up to $50 million of our Class A Non-Voting common shares over the next three years.

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.

Acquisition of Founders One, LLC

On January 2, 2026, we acquired a controlling interest in Founders One, LLC (“Founders”), which through its subsidiary, Simple Management Group, Inc.

(“SMG”), operates 105 pawn stores in the U.S.

and 11 additional countries.

This transaction expands our geographic footprint in attractive markets, including Florida and Puerto Rico, strengthens our partnership with a proven management team, and provides a platform for domestic and international growth.

The total consideration transferred is estimated to be approximately $64.4 million, consisting of the conversion of our existing $45.0 million preferred equity investment, $10.0 million of Demand Promissory Notes, and an additional $9.4 million in cash.

The acquisition was funded through a combination of the conversion of existing investments and cash on hand.

Following the transaction, we own approximately 87.7% of Founders, which controls SMG with an 85.1% ownership interest, and we expect to consolidate Founder’s financial results going forward.

We expect this acquisition to be immediately accretive to earnings and to meaningfully contribute to our financial results.

In connection with the acquisition, we entered into a three-year, senior secured debt facility to provide SMG $156.4 million in funding at 13% per annum, replacing SMG’s third-party debt.

This intercompany debt will be eliminated upon consolidation.

Business Overview

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We are a leading provider of pawn services in the United States and Latin America.

Pawn loans are nonrecourse loans collateralized by personal property.

Pawn loans are non-recourse loans collateralized by personal property.

We also sell merchandise, primarily collateral forfeited from unpaid loans and pre-owned merchandise purchased from customers.

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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 to redeem their pawn, they repay the amount advanced plus any 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.

Our ability to offer quality pre-owned goods at prices significantly lower than original retail prices attracts value-conscious customers.

Our ability to offer quality pre-owned goods for sale 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.

Because 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.

Part of our strategy is to grow the number of locations we operate through opening new (“de novo”) locations and through acquisitions in both Latin America and the U.S.

and potential new markets.

Our ability to add new stores 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 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.

In the U.S., PSC historically is highest in our fourth fiscal quarter (July through September) due to a higher average PLO balance during the summer and is lowest in our third fiscal quarter (April through June) following the tax refund season.

Merchandise sales historically are highest in the U.S.

in our first and second fiscal quarters (October through March) due to the holiday season, Valentine’s Day jewelry sales and our customers’ receipt 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 PLO balances and fueling merchandise sales in those periods.

As a net effect of these and other factors and excluding discrete charges, our consolidated income before tax is generally highest in our first fiscal quarter (October through December) and lowest in our third fiscal quarter (April through June).

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:

The following chart presents sources of gross profit by geographic disbursement for the three and nine months ended June 30, 2025 and 2024:

The following chart presents sources of gross profit, including PSC, merchandise sales gross profit (“Merchandise sales GP”) and jewelry scrap gross profit (“Jewelry Scrap GP”) for the three months ended December 31, 2025 and 2024:

The following chart presents sources of gross profit by geographic disbursement for the three months ended December 31, 2025 and 2024:

Results of Operations

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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:

Three Months Ended

Nine Months Ended

dollars as of and for the three months ended December 31, 2025 and 2024 were as follows:

December 31, Three Months Ended

2025 2024 2025 2024

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Store Count by Segment

Three Months Ended June 30, 2025

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

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

Three Months Ended December 31, 2025

Pawn Latin America Pawn Consolidated

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Locations combined or closed (1) — (1)

As of June 30, 2025

545 791 1,336

Nine Months Ended June 30, 2024

As of December 31, 2025 547 836 1,383

Three Months Ended December 31, 2024

Pawn Latin America Pawn Consolidated

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New locations opened — 4 4

Locations acquired 12 — 12

Locations combined or closed (1) (5) (6)

As of June 30, 2024

541 717 1,258

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.

The following table presents selected summary financial data for our U.S.

Pawn segment:

Three Months Ended June 30,

(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%

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.

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)

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%

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.

(Constant Currency)

Same-store data:

Merchandise Sales 8% 19%

Merchandise Sales Gross Profit 3% 13%

Store Expenses (3)% 7%

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,

(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.

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.

Nine Months Ended June 30, 2025 vs.

Nine Months Ended June 30, 2024

As of December 31, 2024 542 741 1,283

Three Months Ended December 31, 2025 vs.

Three Months Ended December 31, 2024

The tables below and discussion that follows should be read in conjunction with the accompanying condensed consolidated financial statements and related notes.

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Pawn segment:

Nine Months Ended June 30,

Three Months Ended

December 31, Change

(in thousands) 2025 2024

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Gross margin on merchandise sales 38.4 % 36.7 % 170bps

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

Jewelry scrap sales 35,514 15,498 129%

Jewelry scrap sales gross profit 12,150 3,530 244%

Gross margin on jewelry scrap sales 34.2 % 22.8 % 1,140bps

Other revenues 30 27 11%

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Depreciation and amortization 2,723 2,717 —%

Loss (gain) on sale or disposal of assets and other 17 (6) *

Loss on sale or disposal of assets and other 87 — 100%

Segment operating contribution 70,733 54,479 30%

Other segment gain (7) — 100%

Other segment income — (11) (100)%

Segment contribution $ 70,733 $ 54,490 30%

Average monthly ending pawn loan balance per store (a)

$ 427 $ 396 8%

Monthly average yield on pawn loans outstanding 13 % 14 % (100)bps

Pawn collateral - general merchandise (b)

32 % 35 % (310)bps

Pawn collateral - jewelry (b)

68 % 65 % 310bps

* 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.

(b) Prior period has been recast to conform to an updated allocation methodology implemented in the current period.

The change was not material.

During the three months ended December 31, 2025, segment store count increased to 547.

Pawn service charges increased 8% as a result of higher average PLO.

Merchandise sales increased 8%, and merchandise sale gross profit increased 170 bps.

Jewelry scrap sales increased 129%, and jewelry scrap sales gross margin increased from 22.8% to 34.2% due to increase in gold price and jewelry purchases.

Store expenses increased 7% (6% on a same-store basis), primarily due to increased labor, in line with store activity.

Segment contribution increased $16.2 million, or 30%, primarily due to the changes described above.

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See “Results of Operations — Non-GAAP Constant Currency and Same-Store Financial Information” above.

Nine Months Ended June 30,

(in thousands) 2025 (GAAP)

Change (GAAP) 2025 (Constant Currency)

Change (Constant Currency)

Three Months Ended December 31,

(in thousands) 2025 (GAAP) 2024 (GAAP) Change (GAAP) 2025 (Constant Currency) Change (Constant Currency)

Gross profit:

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Gross margin on merchandise sales 33.8 % 30.0 % 380bps 33.8 % 380bps

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

Jewelry scrap sales 4,394 1,234 256% 4,069 230%

Jewelry scrap sales gross profit 1,461 260 * 1,351 *

Gross margin on jewelry scrap sales 33.3 % 21.1 % 1,218bps 33.2 % 1,213bps

Other revenues, net 17 16 6% 16 —%

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Depreciation and amortization 2,535 2,046 24% 2,374 16%

Loss (gain) on sale or disposal of assets and other 8 (240) (103)% — (100)%

Loss on sale or disposal of assets and other — 8 (100)% — (100)%

Segment operating contribution 20,116 15,218 32% 18,913 24%

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Average monthly ending pawn loan balance per store (a)

$ 92 $ 80 15% $ 85 6%

Monthly average yield on pawn loans outstanding 16 % 16 % —bps 16 % —bps

Pawn collateral - general merchandise 53 % 60 % (650)bps 53 % (737)bps

Pawn collateral - jewelry 47 % 40 % 650bps 47 % 737bps

* 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.

(Constant Currency)

2025 Change (GAAP) 2025 Change (Constant Currency)

Same-store data:

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Store Expenses 24% 16%

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.

During the three months ended December 31, 2025, net store count increased by 21 due to the acquisition of 14 stores and the opening of 7 de novo stores.

PSC increased 26% to $36.7 million (18% to $34.5 million on a constant currency basis) as a result of higher average PLO and new stores.

Merchandise sales increased 24% (15% on a constant currency basis) and 16% on a same-store basis (8% 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).

Merchandise sales gross margin increased 380 bps to 33.8% from 30.0%.

Store expenses increased 34% (25% increase on a constant currency basis)) and increased by 24% on a same-store basis (16% 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.

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dollars from its functional currency of primarily Australian dollars:

Nine Months Ended June 30,

Three Months Ended

December 31, Change

(in thousands) 2025 2024

Gross profit:

Consumer loan fees, interest and other $ — $ 35 (100)%

Gross profit — 35 (100)%

Segment operating expenses:

Segment operating (income) expenses:

Interest (income) $ (963) $ (594) 62%

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)%

Equity in net (income) of unconsolidated affiliates (1,823) (1,623) 12%

Segment contribution $ 2,786 $ 2,217 26%

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.

Segment income was $2.8 million, an increase of $0.6 million from the prior year period, primarily due to an increase in interest income from our notes receivable due from Founders.

Nine Months Ended June 30,

Percentage Change

Three Months Ended

December 31, Change

(in thousands) 2025 2024

3 unchanged sentences

Depreciation and amortization 3,498 3,572 (2)%

Gain on sale or disposal of assets — 97 (100)%

Other income (1,262) (765) 65%

Interest expense 8,166 3,147 159%

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* 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.

Segment contribution increased $21.7 million or 30% over the prior year period, 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.

General and administrative expenses increased $2.6 million or 11%, primarily due to labor costs (including higher incentive compensation) and professional fees related to acquisitions.

Interest expense increased $5.0 million or 159%, primarily driven by the issuance of 2032 Senior Notes in the second quarter fiscal 2025.

Interest income increased $2.4 million or 157%, primarily due to the increase in Cash and cash equivalents held as compared to the prior period.

Income tax expense increased $4.5 million, primarily due to an increase in income before income taxes of $17.8 million for the three months ended December 31, 2025 compared to the same period in the prior year.

Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate.

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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.

Our cash and cash equivalents balance was $465.9 million at December 31, 2025 compared to $469.5 million at September 30, 2025.

Our cash and equivalents are primarily held in cash depository accounts with banks in geographies we operate or invested in high quality, short-term liquid investments.

The table and discussion below presents a summary of the selected sources and uses of our cash:

Nine Months Ended

Three Months Ended

December 31, Percentage

(in thousands) 2025 2024

1 unchanged sentence

Net cash used in investing activities (30,958) (14,040) 120%

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 cash used in financing activities (6,520) (7,102) (8)%

Effect of exchange rate changes on cash and cash equivalents and restricted cash (260) (764) (66)%

Net increase in cash, cash equivalents and restricted cash $ 1,408 $ 4,085 (66)%

* 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.

The $13.2 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 and income taxes.

The $16.9 million increase in cash flows used in investing activities year-over-year was primarily due to a $8.5 million increase in net pawn lending outflows and a $22.1 million increase in net cash flows used related to investments, acquisitions and capital expenditures, partially offset by a $13.7 million increase in cash inflows from the sale of forfeited collateral.

Th e $0.6 million decrease i n cash flows used in financing activities was primarily related to the purchase and retirement of treasury shares in the first quarter of fiscal 2025, partially offset by increased tax withholding for the settlement of equity awards in the first quarter of fiscal 2026.

The net effect of these changes w as a $1.4 million increase in cash on hand during the current year to date period, resulting in a $486.1 million ending cash, cash equivalents 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.

On November 11, 2025, the Board approved a new share repurchase program which replaced the previous program that expired on May 3, 2025.

Under the new program, we are authorized to repurchase up to $50 million of our Class A Non-Voting common shares over the next three years (the “2026 Common Stock Repurchase Program”).

During the three months ended December 31, 2025, we did not repurchase and retire any shares under the 2026 Common Stock Repurchase Program.

See Note 9 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.”

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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.

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 senior notes due 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.

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.

There have been no material changes to the contractual obligations disclosed 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, 2025.

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.

See Note 1 of 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

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What changed 10-Q

Item 2. Management’s Discussion and Analysis