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, 2025, 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 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"), operated 105 pawn stores in the U.S. and 11 additional countries at the time of acquisition. This transaction expands our geographic footprint in attractive markets, including Florida and Puerto Rico and provides a platform for domestic and international growth. Following the transaction, we own 87.7% of Founders, which controls SMG with an 85.1% ownership interest. SMG's results are consolidated in our financial statements from January 2, 2026 and are reported within our SMG segment. 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 non-recourse 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 24 Table of Contents 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 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 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. 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 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 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). 25 Table of Contents 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 scrap gross profit (“Jewelry Scrap GP”) for the three and six months ended March 31, 2026 and 2025: The following chart presents sources of gross profit by geographic disbursement for the three and six months ended March 31, 2026 and 2025: 26 Table of Contents 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 six months ended March 31, 2026 and 2025 were as follows: March 31, Three Months Ended March 31, Six Months Ended March 31, 2026 2025 2026 2025 2026 2025 Mexican peso 18.0 20.4 17.6 20.4 17.9 20.3 Guatemalan quetzal 7.5 7.6 7.5 7.6 7.5 7.5 Honduran lempira 26.3 25.2 26.2 25.2 26.1 25.0 Australian dollar 1.5 1.6 1.4 1.6 1.5 1.6 27 Table of Contents Operating Results Segments As a result of the acquisition of Founders and SMG effective January 2, 2026, the composition of our reportable segments changed beginning in the second quarter of fiscal 2026. Refer to Note 2: Acquisitions of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.” for further details. SMG is now reported as a standalone reportable segment. Our equity interest in CCV is now included within Corporate. Prior period segment information has been recast to reclassify CCV equity income and interest income from notes receivable from Founders from the "Other Investments" segment to Corporate. Because SMG was not a consolidated subsidiary in any prior period presented, no prior period SMG segment results exist in our consolidated financial statements. We currently report our segments as follows: • U.S. Pawn — all pawn activities in the United States, except for SMG; • Latin America Pawn — all pawn activities in Mexico and other parts of Latin America, except for SMG; and • SMG — all pawn activities of Simple Management Group, Inc. Store Count by Segment Six Months Ended March 31, 2026 U.S. Pawn Latin America Pawn SMG Consolidated As of September 30, 2025 545 815 — 1,360 New locations opened — 7 — 7 Locations acquired 3 14 — 17 Locations combined or closed (1) — — (1) As of December 31, 2025 547 836 — 1,383 New locations opened — 4 2 6 Locations acquired 12 — 105 117 As of March 31, 2026 559 840 107 1,506 Six Months Ended March 31, 2025 U.S. Pawn Latin America Pawn Consolidated As of September 30, 2024 542 737 1,279 New locations opened — 4 4 As of December 31, 2024 542 741 1,283 New locations opened — 9 9 Locations acquired — 1 1 Locations combined or closed — (9) (9) As of March 31, 2025 542 742 1,284 28 Table of Contents Three Months Ended March 31, 2026 vs. Three Months Ended March 31, 2025 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 March 31, Change (in thousands) 2026 2025 Gross profit: Pawn service charges $ 98,770 $ 87,548 13% Merchandise sales 127,884 116,915 9% Merchandise sales gross profit 48,237 42,143 14% Gross margin on merchandise sales 37.7 % 36.0 % 170bps Jewelry scrap sales 55,490 16,898 228% Jewelry scrap sales gross profit 22,832 3,663 * Gross margin on jewelry scrap sales 41.1 % 21.7 % 1,940bps Other revenues 32 24 33% Gross profit 169,871 133,378 27% Segment operating expenses: Store expenses 88,982 81,718 9% Depreciation and amortization 2,809 2,682 5% Loss on sale or disposal of assets and other — 17 (100)% Segment operating contribution 78,080 48,961 59% Other expense (income) — 4 (100)% Segment contribution $ 78,080 $ 48,957 59% Other data: Average monthly ending pawn loan balance per store (a) $ 424 $ 390 9% Monthly average yield on pawn loans outstanding 14 % 14 % (13)bps Pawn collateral - general merchandise (b) 31 % 35 % (460)bps Pawn collateral - jewelry (b) 69 % 65 % 460bps * 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. (b) Prior period has been recast to conform to an updated allocation methodology implemented in the current period. The change was not material. PLO ended the quarter at $230.5 million, an increase of 16% (13% on a same-store basis) due to increase in average loan size, strong loan demand and improved operational performance. Net inventory increased 20% due to the increase in PLO, layaways and purchases. Inventory turnover remained consistent at 2.3x. Aged general merchandise decreased by 95 bps to 2.3%, or $0.9 million of total general merchandise inventory. Total revenues and gross profit increased 27%, driven by increased jewelry scrap sales, PSC, and merchandise sales. Pawn service charges increased 13% as a result of higher average PLO. Merchandise sales increased 9% (7% on a same-store basis), and sales gross margin increased by 170bps to 38%. 29 Table of Contents Jewelry scrap sales increased 228%, and jewelry scrap sales gross margin increased from 22% to 41% due to increase in gold price and jewelry purchases. Store expenses increased 9% (6% on a same-store basis) primarily due to increased labor, in line with store activity. Segment contribution increased 59% to $78.1 million. Segment store count increased by 12 to 559 due to the El Bufalo acquisition in the second quarter of fiscal 2026. 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 March 31, (in thousands) 2026 (GAAP) 2025 (GAAP) Change (GAAP) 2026 (Constant Currency) Change (Constant Currency) Gross profit: Pawn service charges $ 37,976 $ 28,323 34% $ 34,186 21% Merchandise sales 68,762 52,552 31% 61,448 17% Merchandise sales gross profit 23,535 15,769 49% 20,982 33% Gross margin on merchandise sales 34.2 % 30.0 % 420bps 34.1 % 410bps Jewelry scrap sales 6,640 4,040 64% 5,801 44% Jewelry scrap sales gross profit 2,503 966 159% 2,184 126% Gross margin on jewelry scrap sales 37.7 % 23.9 % 1,379bps 37.6 % 1,374bps Other revenues, net 16 16 —% 14 (13)% Gross profit 64,030 45,074 42% 57,366 27% Segment operating expenses: Store expenses 42,523 29,349 45% 37,817 29% Depreciation and amortization 2,733 1,989 37% 2,453 23% Segment operating contribution 18,774 13,736 37% 17,096 24% Other segment income (343) (137) 150% (51) (63)% Segment contribution $ 19,117 $ 13,873 38% $ 17,147 24% Other data: Average monthly ending pawn loan balance per store (a) $ 99 $ 81 22% $ 89 10% Monthly average yield on pawn loans outstanding 16 % 16 % 21bps 16 % —bps Pawn collateral - general merchandise 52 % 61 % (860)bps 51 % (960)bps Pawn collateral - jewelry 48 % 39 % 860bps 49 % 960bps * 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. 30 Table of Contents 2026 Change (GAAP) 2026 Change (Constant Currency) Same-store data: PLO 25% 15% PSC 24% 12% Merchandise Sales 21% 8% Merchandise Sales Gross Profit 39% 24% Store Expenses 33% 19% PLO improved to $86.3 million, an increase of 38% (27% on constant currency basis). On a same-store basis, PLO increased 25% (15% increase on a constant currency basis) due to strong loan demand and improved operational performance. Net inventory increased 21% (10% on a constant currency basis) due to an increase in PLO. Inventory turnover remained consistent at 3.2x. On a same-store basis, net inventory increased by 11% (consistent on a constant currency basis). Aged general merchandise decreased below 1% of total general merchandise inventory. Total revenues increased 34% (19% on constant currency basis), and gross profit increased 42% (27% on a constant currency basis), primarily due to increased jewelry scrap sales, PSC, and merchandise sales. PSC increased to $38.0 million, an increase of 34% (21% on a constant currency basis) as a result of higher average PLO. Merchandise sales increased 31% (17% on constant currency basis) and increased 21% on a same-store basis (8% increase on a constant currency basis). Merchandise sales gross margin increased to 34% from 30%. Jewelry scrap sales increased 64%, and jewelry scrap sales gross margin increased to 38% from 24% due to increase in gold price. Store expenses increased 45% (29% increase on a constant currency basis) and increased 33% on a same-store basis (19% increase on a constant currency basis) due to increased labor, in line with store activity and minimum wage increases. Segment contribution increased 38% to $19.1 million (24% on a constant currency basis). Segment store count increased by 4 to 840 during the quarter due to the addition of 4 de novo stores. 31 Table of Contents SMG The following table presents selected financial data for our SMG segment. As described above, SMG is consolidated in our financial statements beginning January 2, 2026; accordingly, prior period results do not include SMG operating results and period-over-period comparisons for this segment are not meaningful. Three Months Ended March 31, (in thousands) 2026 Gross profit: Pawn service charges $ 14,382 Merchandise sales 17,819 Merchandise sales gross profit 5,905 Gross margin on merchandise sales 33.1 % Jewelry scrap sales 19,110 Jewelry scrap sales gross profit 5,850 Gross margin on jewelry scrap sales 30.6 % Gross profit 26,137 Segment operating expenses: Store expenses 16,614 Depreciation and amortization 674 Segment operating contribution 8,849 Other expense (income) 38 Segment contribution $ 8,811 Other data: Average monthly ending pawn loan balance per store (a) $ 319 Monthly average yield on pawn loans outstanding 14 % Pawn collateral - general merchandise 50 % Pawn collateral - jewelry 50 % (a) Balance is calculated based upon the average of the monthly ending balances during the applicable period. PLO of $32.6 million and net inventory of $26.1 million, with aged general merchandise below 1% of total general merchandise inventory. Total revenues were $51.3 million, comprised of jewelry scrap sales of $19.1 million, merchandise sales of $17.8 million and PSC of $14.4 million. Gross profit was $26.1 million. Merchandise sales gross margin was 33.1%. Jewelry scrap sales gross margin was 30.6%, benefiting from the elevated gold price environment. Store expenses totaled $16.6 million. Segment contribution was $8.8 million, reflecting the first quarter of SMG operating results following the January 2, 2026 consolidation. Segment store count increased during the quarter by 2 to 107 due to the addition of de novo stores. 32 Table of Contents Corporate Items The following table reconciles our consolidated segment contribution discussed above to consolidated net income including items that affect our consolidated financial results but are not allocated among segments. Prior period amounts have been recast to conform to the current period presentation. See Note 11: Segment Information of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.” Three Months Ended March 31, Change (in thousands) 2026 2025 Segment contribution $ 106,008 $ 62,830 69% Corporate expenses (income): General and administrative 34,488 25,100 37% Depreciation and amortization 3,372 3,349 1% Interest expense 8,354 3,281 155% Interest income (2,587) (1,875) 38% Equity in net income of unconsolidated affiliates (1,166) (1,505) (23)% Other (income) expense (1,939) 68 * Income before income taxes 65,486 34,412 90% Income tax expense 15,902 9,022 76% Consolidated net income $ 49,584 $ 25,390 95% * Represents a percentage computation that is not mathematically meaningful. Segment contribution increased $43.2 million or 69% over the prior year quarter, primarily due to improved operating results from the U.S. Pawn and Latin America Pawn segments, and the acquisition of SMG in the second quarter of fiscal 2026. General and administrative expense increased $9.4 million or 37%, primarily due to labor costs (including higher incentive compensation) and expenses associated with SMG. Interest expense increased $5.1 million or 155%, primarily driven by the issuance of 2032 Senior Notes in the second quarter fiscal 2025. Other (income) expense improved $2.0 million primarily due to the non-cash gain on remeasurement of our previously held equity interest in Founders, in connection with the January 2, 2026 acquisition. Income tax expense increased $6.9 million primarily due to an increase in income before taxes of $31.1 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 Annual Report on Form 10-K for the year ended September 30, 2025, Note 10: 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 Six Months Ended March 31, 2026 vs. Six Months Ended March 31, 2025 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: Six Months Ended March 31, Change (in thousands) 2026 2025 Gross profit: Pawn service charges $ 193,944 $ 175,424 11% Merchandise sales 266,926 245,715 9% Merchandise sales gross profit 101,592 89,387 14% Gross margin on merchandise sales 38.1 % 36.4 % 170bps Jewelry scrap sales 91,005 32,396 181% Jewelry scrap sales gross profit 34,983 7,193 * Gross margin on jewelry scrap sales 38.4 % 22.2 % 1,620bps Other revenues 61 51 20% Gross profit 330,580 272,055 22% Segment operating expenses: Store expenses 176,148 163,199 8% Depreciation and amortization 5,532 5,399 2% Loss on sale or disposal of assets and other 87 17 * Segment operating contribution 148,813 103,440 44% Other segment income — (7) (100)% Segment contribution $ 148,813 $ 103,447 44% Other data: Average monthly ending pawn loan balance per store (a) $ 426 $ 396 8% Monthly average yield on pawn loans outstanding 14 % 14 % (20)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. Pawn service charges increased 11% as a result of higher average PLO. Merchandise sales increased 9%, and merchandise sale gross margin increased 170 bps. Jewelry scrap sales increased 181%, and jewelry scrap sales gross margin increased from 22% to 38% due to increase in gold price and jewelry purchases. Store expenses increased 8% (6% on a same-store basis), primarily due to increased labor, in line with store activity. Segment contribution increased $45.4 million, or 44%, primarily due to the changes described above. 34 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. Six Months Ended March 31, (in thousands) 2026 (GAAP) 2025 (GAAP) Change (GAAP) 2026 (Constant Currency) Change (Constant Currency) Gross profit: Pawn service charges $ 74,719 $ 57,499 30% $ 68,645 19% Merchandise sales 139,867 110,095 27% 127,620 16% Merchandise sales gross profit 47,571 33,044 44% 43,326 31% Gross margin on merchandise sales 34.0 % 30.0 % 400bps 33.9 % 390bps Jewelry scrap sales 11,034 5,274 109% 9,870 87% Jewelry scrap sales gross profit 3,964 1,226 223% 3,535 188% Gross margin on jewelry scrap sales 35.9 % 23.2 % 1,268bps 35.8 % 1,257bps Other revenues, net 33 32 3% 29 (9)% Gross profit 126,287 91,801 38% 115,535 26% Segment operating expenses: Store expenses 82,129 58,804 40% 74,700 27% Depreciation and amortization 5,268 4,035 31% 4,827 20% Loss on sale or disposal of assets and other — 8 (100)% — (100)% Segment operating contribution 38,890 28,954 34% 36,008 24% Other segment income (366) (208) 76% (134) (36)% Segment contribution $ 39,256 $ 29,162 35% $ 36,142 24% Other data: Average monthly ending pawn loan balance per store (a) $ 96 $ 81 19% $ 87 7% Monthly average yield on pawn loans outstanding 16 % 16 % (22)bps 16 % —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. 2026 Change (GAAP) 2026 Change (Constant Currency) Same-store data: PLO 25% 15% PSC 20% 11% Merchandise Sales 18% 8% Merchandise Sales Gross Profit 35% 23% Store Expenses 29% 17% During the six months ended March 31, 2026, net store count increased by 25 due to the acquisition of 14 stores and the opening of 11 de novo stores. PSC increased 30% to $74.7 million (19% to $68.6 million on a constant currency basis) as a result of higher average PLO and new stores. Merchandise sales increased 27% (16% on a constant currency basis) and 18% on a same-store basis (8% on a constant currency basis). Merchandise sales gross margin increased 400 bps to 34% from 30%. 35 Table of Contents Jewelry scrap sales increased 109% (87% constant currency basis), and jewelry scrap sales gross margin increased from 23% to 36% due to increase in gold price. Store expenses increased 40% (27% increase on a constant currency basis) and increased by 29% on a same-store basis (17% 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 $10.1 million, or 35% ($7.0 million, or 24%, on a constant currency basis), due to the changes noted above. SMG The following table presents selected financial data for our SMG segment. As described above, SMG is consolidated in our financial statements beginning January 2, 2026; accordingly, prior period results do not include SMG operating results and period-over-period comparisons for this segment are not meaningful. Six Months Ended March 31, (in thousands) 2026 Gross profit: Pawn service charges $ 14,382 Merchandise sales 17,819 Merchandise sales gross profit 5,905 Gross margin on merchandise sales 33.1 % Jewelry scrap sales 19,110 Jewelry scrap sales gross profit 5,850 Gross margin on jewelry scrap sales 30.6 % Gross profit 26,137 Segment operating expenses: Store expenses 16,614 Depreciation and amortization 674 Segment operating contribution 8,849 Other expense (income) 38 Segment contribution $ 8,811 Other data: Average monthly ending pawn loan balance per store (a) $ 319 Monthly average yield on pawn loans outstanding 14 % (a) Balance is calculated based upon the average of the monthly ending balances during the applicable period. Pawn service charges were $14.4 million, and merchandise sales gross profit was $5.9 million. Jewelry scrap sales gross profit was $5.9 million, reflecting a gross margin of 31%. Store expenses were $16.6 million. Segment contribution was $8.8 million, reflecting SMG operating results from the January 2, 2026 consolidation date through March 31, 2026. 36 Table of Contents Corporate Items The following table reconciles our consolidated segment contribution discussed above to consolidated net income including items that affect our consolidated financial results but are not allocated among segments. Prior period amounts have been recast to conform to the current period presentation. See Note 11: Segment Information of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.” Six Months Ended March 31, Change (in thousands) 2026 2025 Segment contribution $ 196,880 $ 132,609 48% Corporate expenses (income): General and administrative 61,231 49,284 24% Depreciation and amortization 6,870 6,921 (1)% Interest expense 16,520 6,428 157% Interest income (7,401) (3,968) 87% Equity in net income of unconsolidated affiliates (2,989) (2,980) —% Other (income) expense (2,008) 1,128 (278)% Income before income taxes 124,657 75,796 64% Income tax expense 30,769 19,390 59% Consolidated net income $ 93,888 $ 56,406 66% * Represents a percentage computation that is not mathematically meaningful. Segment contribution increased $64.3 million or 48% over the prior year period, primarily due to improved operating results of the U.S. Pawn and Latin America Pawn segments, and the acquisition of SMG in the second quarter of fiscal 2026. General and administrative expenses increased $11.9 million or 24%, primarily due to labor costs (including higher incentive compensation) and expenses associated with SMG. Interest expense increased $10.1 million or 157%, primarily driven by the issuance of 2032 Senior Notes in the second quarter fiscal 2025. Interest income increased $3.4 million or 87%, primarily due to an increase in the average Cash and cash equivalents held during the period as compared to the prior period. Other (income) expense improved $3.1 million primarily due to the non-cash gain on remeasurement of our previously held equity interest in Founders, in connection with the January 2, 2026 acquisition. Income tax expense increased $11.4 million, primarily due to an increase in income before income taxes of $48.9 million for the six months ended March 31, 2026 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. 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, 2025, Note 10: Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items. Liquidity and Capital Resources Cash and Cash Equivalents Our cash and cash equivalents balance was $354.2 million at March 31, 2026 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 decrease in cash and cash equivalents is primarily driven by the retirement of SMG’s existing third-party indebtedness and cash used for acquisitions. 37 Table of Contents Cash Flows The table and discussion below presents a summary of the selected sources and uses of our cash: Six Months Ended March 31, Percentage Change (in thousands) 2026 2025 Net cash provided by operating activities $ 87,609 $ 62,928 39% Net cash used in investing activities (57,590) (14,781) 290% Net cash (used in) provided by financing activities (145,049) 286,456 (151)% Effect of exchange rate changes on cash and cash equivalents and restricted cash 379 328 16% Net (decrease) increase in cash, cash equivalents and restricted cash $ (114,651) $ 334,931 (134)% * Represents a percentage computation that is not mathematically meaningful. The $24.7 million increase in cash flows provided by operating activities year-over-year was primarily due to an increase in net income and non-cash adjustments, partially offset by changes in working capital. The $42.8 million increase in cash flows used in investing activities year-over-year was primarily due to a $39.1 million increase in net pawn lending outflows and a $45.3 million increase in net cash flows used related to acquisitions, investments and capital expenditures, partially offset by a $41.6 million increase in cash inflows from the sale of forfeited collateral. In the six months ended March 31, 2026, cash used in financing activities was driven primarily by the retirement of SMG’s existing third-party indebtedness. In the comparable prior year-period, cash provided by financing activities consisted primarily of proceeds from the issuance of the 2032 Senior Notes, partially offset by debt issuance costs paid in connection with that offering. The net effect of these changes was a $114.7 million decrease during the current year to date period, resulting in a $370.1 million ending cash, cash equivalents and restricted cash balance. Sources and Uses of Cash 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 six months ended March 31, 2026, the Company repurchased and retired 155,838 of our Class A Common Stock for $4.0 million 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.” 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 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 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 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. 38 Table of Contents 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, 2025 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.