Q2 2025 EZCORP Inc Earnings Call

Operator: Good morning, ladies and gentlemen, welcome to the EZCORP second quarter fiscal 2025 earnings At this time, all participants are enlisted. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, this call may be recorded.

Good morning, ladies and gentlemen, welcome to the easy Corp, second quarter fiscal two went 25 earnings call.

This time all participants are in listen only mode data, we will conduct a question and answer session and instructions will follow at that time as a reminder, this call maybe recorded.

Sean Mansouri: I'd now like to turn the conference over to Sean Mansouri, the company's investor relations advisor with Elevated IR. Please go ahead.

Speaker Change: I'd like to turn the conference over to Sean Mansouri, The company's Investor Relations adviser with elevated IR. Please go ahead Sean.

Sean Mansouri: Thank you, and good morning, everyone. During our prepared remarks, we will refer to slides which are available for viewing or download from our website at investors.ezcorp.com. Before we begin, I'd like to remind everyone that this conference call, as well as the presentation slides, contain certain forward-looking statements regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations. Actual results for future periods may differ materially from those expressed due to a number of risk or other factors that are discussed in our annual, quarterly, and other reports filed with the Securities and Exchange Commission.

Sean Mansouri: Thank you and good morning, everyone. During our prepared remarks, we will refer to slides, which are available for viewing or download from our website at investors Dot easy Corp dotcom.

Sean Mansouri: Before we begin I would like to remind everyone that this conference call as well as the presentation slides contain certain forward looking statements regarding the company's expected operating and financial performance for future periods. These.

Sean Mansouri: These statements are based on the Companys current expectations.

Sean Mansouri: Actual results for future periods may differ materially from those expressed due to a number of risks or other factors that are discussed in our annual quarterly and other reports filed with the Securities and Exchange Commission.

Sean Mansouri: And as noted in our presentation materials, and unless otherwise identified, results are presented on an adjusted basis to remove the effect of foreign currency fluctuations and other discrete items. Joining us on the call today are EZCORP's Chief Executive Officer, Lachy Given, and Tim Jugmans, Chief Financial Officer.

Sean Mansouri: And as noted in our presentation materials and unless otherwise identified.

Sean Mansouri: <unk> are presented on an adjusted basis to remove the effect of foreign currency fluctuations and other discrete items.

Blocky given: Joining us on the call today are easy Corp's, Chief Executive Officer Blocky given.

Tim Guttman: And Tim Guttman, Chief Financial Officer.

Lachlan Given: Now, I'll turn the call over to Lockheed. Thanks, Sean, and good morning, everyone. We delivered another impressive set of operational and financial results in the second quarter, driven by sustained demand for fast and accessible cash solutions and affordable, high-quality second-hand goods. We achieved record Q2 revenue of $318.9 million, marking a 12% year-on-year increase, while PLO also grew 15% to a Q2 record of $271.8 million. Our strong bottom-line performance included a 23% increase in EBITDA to $45.1 million and diluted EPS growth of 21% to 34%. These results again highlight the operating leverage inherent in our business model, driven by strong growth.

Speaker Change: Now I'll turn the call over to Lucky.

Lucky: Thanks, Sean and good morning, everyone.

Lucky: We delivered another impressive set of operational and financial results in the second quarter driven by sustained demand for fossil acceptable cash solution.

Lucky: And affordable high quality secondhand goods.

Lucky: We achieved record Q2 revenue of about $319 9 million, marking a 12% year on year increase while PLO also grew 15% to a Q2 record of 271 8 million.

Lucky: Our strong bottom line performance included a 23% increase in EBITDA to $45 1 million and diluted EPS growth of 21% to 34.

These results again highlight the operating leverage inherent in our business model driven by strong growth.

Lachlan Given: Disciplined Expense Management and Enhanced Operational Efficiency Together, these factors continue to strengthen our profitability and drive significant value for our shareholders. Beginning on slide 3, we continue to be a global leader in pawnbroking and pre-owned retail with 1,284 stores across the US and Latin America. Persistent inflation and economic pressure continue to impact customers who are increasingly turning to EZCORP to secure short-term cash and quality pre-owned goods. Our unwavering commitment to innovation and exceptional customer service ensures we can effectively meet value-conscious consumers' evolving needs.

Lucky: Disciplined expense management and enhanced operational efficiency.

Lucky: Together these factors continue to strengthen our profitability and drive significant value for our shareholders.

Lucky: Beginning on slide three we continue to be a global leader in Poland, Broking and pre owned retail with 294 stores across the U S and Latin America.

Lucky: <unk> inflation and economic pressure continue to impact customers, who are increasingly turning to easy call, particularly of short term cash and quality pre owned goods.

Lucky: Our unwavering commitment to innovation and exceptional customer service and shows we can effectively make value conscious consumers evolving needs.

Lachlan Given: On the bottom left of the slide, we have included a summary of the pawn product itself, noting that it's a highly customer-friendly alternative for those seeking short-term cash, as these transactions are non-recourse, involve no credit checks, collection activities, or reporting to credit bureaus whether the loan is repaid or not. Moving to slide four. During the second quarter, we opened nine DeNovo stores in Latin America and acquired one store in Guatemala. We also consolidated nine stores in Mexico, relocating loan balances and inventory for locations with available leases or stronger unit economics, where we can continue to serve our customers as well as improve operational efficiency and return.

Lucky: On the bottom left of the slide we have included a summary of the Poland product itself, noting that it's a highly customer friendly alternative for those seeking short term cash as these transactions are nonrecourse involves no credit checks collection activities or reporting to credit bureaus, whether the loan is repaid or not.

Lucky: Moving to slide four.

Lucky: During the second quarter, we opened nine de Novo stores in Latin America, and acquired one store in Guatemala.

Lucky: We also consolidated non fills in Mexico, relocating loan balances and inventory to locations with available leases with stronger unit economics, where we can continue to serve our customers as well as improve operational efficiency and returns.

Lachlan Given: Our antacids grow 22% year-over-year, including a record-setting Q2 PLO balance, which grew 15%, contributing to a 12% increase in PFC. We remain very encouraged by our PLO trajectory, which is obviously a critical growth driver for both future revenue and earnings. Our cash balance increased to $505.2 million, up from $174.5 million last quarter, primarily due to our $300 million debt financing completed in March, as well as cash flow from operating activities. Looking ahead, our significantly strengthened balance sheet enables us to fund our fast-growing earning asset base, pursue inorganic growth opportunities in the markets in which we already operate as well as in potential new markets, and to expand our successful De Novo store build-out program to drive additional value for our stakeholders.

Lucky: Are there any assets grew 22% year over year, including a record setting Q2, PLO balance, which grew 15% contributing to a 12% increase in PSD.

Lucky: We remain very encouraged by our PLO trajectory, which is obviously a critical growth driver for <unk> future revenue and earnings.

Lucky: Our cash balance increased to $505 2 million up from $174 5 million last quarter, primarily due to a $300 million.

Lucky: Debt financing completed in March as well as cash flow from operating activities.

Lucky: Looking ahead.

Lucky: A significantly strengthened balance sheet enables us to fund our fast growing earning asset base.

Lucky: Inorganic growth opportunities in the markets in which we already operate as well as in potential new markets and to.

Lucky: Expand our successful de Novo store build out program to drive additional value for our stakeholders.

Lachlan Given: In this period of macroeconomic uncertainty, we also believe it prudent to continue to run high levels of cash liquidity as we balance running a business with exceptionally strong bottom line growth with a strategy of fiscal conservatism to ensure the long term prosperity of the company. Slide 5 highlights the strong financial performance in the quarter and showcases our consistent track record of growth across four of our fundamental metrics. Total Revenue, PLO, EBITDA, and Diluted EPS. Although not presented on the slide, it's worth noting that we've delivered year-over-year growth across nearly all of these key metrics for more than 15 consecutive quarters, reflecting a clear and consistent strategic plan and a relentless focus on operational execution by our STOR team.

Lucky: In this period of macroeconomic uncertainty.

Lucky: I believe it prudent to continue to run high levels of cash liquidity as we balance running our business with exceptionally strong bottom line growth with a strategy of physical conservatism to ensure the long term prosperity of the company.

Lucky: Slide five highlights the strong financial performance in the quarter and showcases our consistent track record of growth across four of our fundamental metrics total revenue PLO EBITDA and diluted EPS.

Lucky: Although not presented on the slide it's worth noting that we've delivered year over year growth across nearly all of these key metrics for more than 15 consecutive quarters, reflecting a clear and consistent strategic plan and the relentless focus on operational execution by our store teams.

Lachlan Given: Second quarter total revenues increased 12% year-on-year, merchandise sales grew 8%, and we delivered gross profit of $185 million, reflecting a 10% increase. In terms of the bottom line, EVADAR increased 23%, with EVADAR margin increasing to 14.1%. As noted earlier, elevated consumer demand, operational execution and exceptional customer service continue to fuel our top and bottom lines. Flight 6 provides further detail on our consolidated revenue and gross profit performance. On the gross profit slide, we often emphasise that our focus is on driving overall gross profit in dollars, as well as margin, regardless of whether that comes from merchandise sales, scrap or PSD.

Lucky: Second quarter total revenues increased 12% year on year.

Lucky: <unk> sales grew 8% and we delivered gross profit of $195 million.

Lucky: Reflecting the 10% is great.

Lucky: In terms of the bottom line EBITDA increased 23% with EBITDA margin increasing to 14, 1%.

Lucky: As noted earlier elevated consumer demand.

And that execution and exceptional customer service continue to fuel that top and bottom lines.

Lucky: Slide six provides further detail on our consolidated revenue and gross profit performance.

Lucky: On the gross profit slide we often emphasize that our focus is on driving overall gross profit in dollars as well as margin regardless of whether that comes from merchandise sales scrap or PSC.

Lachlan Given: As shown, we have consistently delivered revenue and gross profit growth, maintaining a gross margin in the high 50s. On this page you can also see that the majority of our economics continue to be derived in the U.S. which accounted for 72% of gross profit during the quarter.

Lucky: As.

Lucky: We've consistently delivered revenue and gross profit growth.

Lucky: Tightening our gross margin in the high <unk>.

Lucky: On this page you can also say that the majority of our economics continue to be derived in the U S, which accounted for 72% of gross profit during the quarter.

Lachlan Given: Now turning to our key business strategy highlights for the quarter on slide 7, we continue to strengthen our core pawn operations through investments in our people and technology, with a focus on enhancing customer experience through accessible and flexible financing solutions. Aligned with our customer-centric approach, our EZ Plus Rewards Program continues to gain strong momentum, with membership growing 34% to 6.2 million and accounting for 77% of all transactions this quarter. We believe the program will continue to drive customer loyalty in the local neighbourhoods in which we serve and broaden engagement across platforms, including through our call upon website traffic, which increased 5%.

Lucky: Now turning to our key business strategy highlights of the quarter on slide seven.

Lucky: We continue to strengthen our core pulling operations through investments in our people and technology with a focus on enhancing customer experience through accessible and flexible financing solutions.

Lucky: Aligned with our customer centric approach, our easy plus rewards program continues to gain strong momentum with membership growing 34% to $6 2 million and accounting for 70% of all transactions this quarter.

Lucky: We believe the program will continue to drive customer loyalty in the local neighborhoods in which we serve and broaden engagement across platforms, including through our core <expletive> website traffic, which increased 5%.

Lachlan Given: to $1.7 million this quarter. Additionally, the introduction of a long-term layaway option last year resulted in a 15% increase in new layaways made during the quarter.

Lucky: To one 7 million this quarter.

Lucky: Additionally, the introduction of a long term layaway option last year resulted in a 15% increase in new <unk> made during the quarter.

Lachlan Given: As a reminder, layaway sales are recognised as revenue upon final payment, and now that customers have extended periods to complete payments, a portion of sales will shift to future quarters, impacting both current revenue and traditional inventory turnover ratios. This enhanced layaway offering underscores our commitment to accommodating our customers' financing needs, particularly in the jewellery category.

Lucky: As a reminder, <unk> sales are recognized as revenue upon final pilot and now that customers have extended period to complete pilots a portion of sales will shift to future quarters impacting both current revenue and traditional inventory turnover ratios.

Lucky: This enhanced layaway offering underscores our commitment to accommodating our customers financing needs, particularly in the jewelry category.

Lachlan Given: We continue to advance our innovation and growth initiatives this quarter. In the U.S., online payments increased by $7 million, reaching $29 million, a reflection of the growing adoption of our digital talent. In Mexico, EZ Plus adoption is gaining momentum, with 17% of extensions and layaways now completed through online payments, demonstrating our customers' growing preference for seamless, tech-enabled solutions.

Lucky: We continue to advance our innovation and growth initiatives this quarter.

Lucky: In the U S online payments increased by $7 million, reaching $29 million, a reflection of the growing adoption of our digital channels.

Lucky: In Mexico's easy plus adoption is gaining momentum with 17% of extensions and layaway now completed through online payments, demonstrating our customers' growing preference that seamless tech enabled solutions.

Lachlan Given: Consumer interest in affordable luxury remains strong. Max Pawn's e-commerce platform delivered a 25% increase in sales, reinforcing our position in this attractive and growing market. We also expanded our view online, purchase in store experience to over 30% of our US retail locations, enhancing convenience and creating a seamless connection between digital discovery and in-store service.

Lucky: <unk> interest in affordable luxury and remain strong.

Lucky: <unk> E Commerce platform delivered a 25% increase in sales reinforcing our position in this attractive and growing market.

Lucky: We also expanded our view online versus in store experience to over 30% of our U S retail locations enhancing convenience and creating a seamless connection between digital discovery and in store service.

Lachlan Given: Across all these efforts, our focus remains clear. To deliver the most convenient, customer-centric experience in the industry, while continuing to make a positive impact in the communities we serve.

Lucky: Across all these efforts our focus remains clear to.

Lucky: To deliver the most convenient customer centric experience in the industry, while continuing to make a positive impact in the communities we serve.

Tim Jugmans: With that, I'll hand the call over to Tim Jugmans, our Chief Financial Officer, who will provide a deeper look at our financial results. Tim. Thanks for the key. Slide 9 provides a detailed look at our consolidated financial results for the second fiscal quarter. As Lachy mentioned, we closed the quarter with a record-setting Q2 PLO balance of $271.8 million, reflecting a 15% increase on total and same-store basis. PCE revenue rose 12% year-over-year, primarily fueled by same-store PLO growth. Our inventory increased 32% year over year, driven by both increased PLO as well as lower inventory turnover at 2.5 times compared to 2.9 times, which is still a healthy turnover rate.

Lucky: With that I'll hand, the call over to Tim Jasmine, Chief Financial Officer, who will provide a deeper look at our financial results Tim.

Lucky: Jim.

Tim Guttman: Thanks, a lot.

Speaker Change: Slide nine provides a detailed look at our consolidated financial results for the second fiscal quarter.

Speaker Change: Lucky mentioned, we closed the quarter with a record setting Q2, PLO balance of $271 8 million, reflecting a 15% increase on title and same store basis.

<unk> revenue rose, 12% year over year, primarily fueled by thanks till PLO growth.

Speaker Change: Our inventory increased 32% year over year, driven by both increased CLO as well as lower inventory turnover at six five times compared to two nine times, which is still a healthy turnover rate.

Tim Jugmans: Lower inventory turnover during the quarter was partially attributed to the expansion of our layaway program in the U.S., as well as a greater composition of jewelry inventory, which typically has a longer sale cycle. While these factors contribute to the trend, we at Range focus on improving inventory zones and are prioritizing efforts to optimize sales velocity and inventory management. Merchandise sales increased by 8% to $177.4 million, while merchandise margins contracted by 150 basis points due to increased price negotiations at the counter. Despite lower merchandise margin, we boasted another strong quarter of OOFDA margin expansion, increasing 130 basis points.

Lower inventory turnover during the quarter was partially attributed to the expansion of our <unk> program in the U S as well as a greater composition of jewelry inventory, which typically has a longer sales cycle.

Speaker Change: While these factors contribute to the trend we remained focus on improving inventory turns and are prioritizing efforts to optimize sales velocity and inventory management.

Speaker Change: Okay.

Speaker Change: Merchandise sales increased by 8% to $177 $4 million, while merchandise margin contracted by 150 basis points due to increased price negotiations at the Cana.

Speaker Change: Despite lower merchandise margin, we posted another strong quarter of EBITDA margin expansion, increasing 130 basis points.

Tim Jugmans: to 14.1% reflecting our ongoing focus to drive operating efficiencies and fixed cost leverage. Moving to our US porn segment on slide 10, revenue for the quarter was up 7% to $221.4 million. Earning assets grew by 21% driven by significant PLO and inventory growth. Approximately half the increase in inventory is due to the increase in customer layaways, where sales get recognised in future quarters. Slide 11 includes a map of US states in which we operate, highlighting our significant footprint of 542 stores across 19 states. From this page, I also want to call out 15% increase in average loan size for the quarter across the US, with approximately three quarters of that growth driven by higher prices of jewellery and the remainder due to higher prices on general merchandise.

Speaker Change: 14, 1%, reflecting our ongoing focus to drive operating efficiencies and fixed cost leverage.

Speaker Change: Moving to our U S pawn segment on slide 10 revenue for the quarter was up 7% to $221 4 million.

Speaker Change: Earning assets grew by 21% driven by significant PLO and inventory.

Speaker Change: Approximately half the increase in inventory is due to the increase in customer likewise sales getting recognized in future quarters.

Speaker Change: Okay.

Speaker Change: Slide 11 includes a map of U S states in which we operate hauling as significant footprint of 542 stores across 19 states.

Speaker Change: From this page also wanted to call out.

Speaker Change: An increase in average line size for the quarter across the U S with approximately three quarters of that growth driven by higher prices of jewelry and then remind me.

Speaker Change: Due to high prices in general merchandise.

Tim Jugmans: Slide 12 offers an in-depth look at our U.S. financial performance, highlighting a 15% increase in PLO, both on a total and same-store basis. This was driven by high average loan size, enhanced operational performance and sustained growing demand for pawn services. With respect to tax refund season to the end of March this year, the IRS has seen the average tax refund increase by $120 or 3.9%. Even with this increase, we saw the same 9% sequential PLO decrease from Q1 as seen in FY24. PSD revenue rose 9% year over year, primarily driven by the same store PLO growth, partially offset by lower PLO yield.

Speaker Change: Slide 12 office, an in depth look at our U S financial performance, highlighting a 15% increase in PLO.

Speaker Change: Total and same store basis.

Speaker Change: This was driven by a high average loan size in the hottest operational performance and sustained growing demand for <unk> services.

Speaker Change: With respect to the tax refund season.

Speaker Change: End of March this year, the IRS has seen.

Speaker Change: Average tax rate increased by $120 three 9%.

Speaker Change: Even with this increase we saw the same 9% sequential decrease from quarter, one and say in FY 'twenty four.

Speaker Change: PSC revenue rose, 9% year, IV, primarily driven by the same store PLO growth, partially offset by lower PLO yields.

Tim Jugmans: In the US we have seen our average loan size increase, but we have seen lower yields due to markets such as Texas, where the state regulations mandate lower monthly interest rates as loan size increases. While this still benefits absolute PSE dollars, it does contribute to lower PLO yield. This is driving the disparity between PLO and PSE growth this quarter. On the US retail side, merchandise sales increased by 2% and were up 1% on the same store based Merchandise Grows Margin Decreased 58 Basis Points US bought EBITDA for the quarter with $49.8 million up 15% primarily due to high PSE with EBITDA margin up once again, expanding 173 basis points to 22.5% underscoring the team's focus on profitability.

Speaker Change: In the U S. We have seen our average loan size increase, but we have seen lower yields due to markets, such as Texas, where the state regulations mandate lower monthly interest rate loan size increase.

Speaker Change: While there is still benefits absolutely PSC it does contribute to lower PLO yields.

Speaker Change: This is driving the disparity between PLO and PSC growth this quarter.

Speaker Change: On the U S retail side merchandise sales increased by 2% and were up 1% on a same store basis.

Speaker Change: Merchandise gross margin decreased 50 basis points.

Speaker Change: U S pawn EBITDA for the quarter was $49 8 million up 15%, primarily due to higher AUC with EBITDA margin up once again.

Speaker Change: Expanding 173 basis points to 22, 5%.

Speaker Change: It's growing the team's focus on profitability.

Tim Jugmans: Turning to our Latin American segment on slide 13. It was, again, a very strong quarter. Total revenues increased 25% to $97.5 million. Earning assets increased 28%, driven by strong PLO growth of 17%, and a 44% increase in inventory compared to historically low levels in the prior period. We continue to evaluate and execute actions, both systemically and operationally, that we have worked well in the U.S. to drive further improvements across Latin America. On slide 14, you can see that we've expanded or acquired our presence in Latin America with 742 stores, opening 9 to 9 stores, acquiring 1 store in Guatemala and consolidating 9 stores in Mexico.

Speaker Change: Turning to our Latin American segment on Slide 13.

Speaker Change: It was again, a very strong quarter.

Speaker Change: Total revenues increased 25% $97 $5 million.

Speaker Change: Earning assets increased 28% driven by strong PLO growth of 17%.

Speaker Change: 44% increase in inventory compared to historically low levels in the prior period.

Speaker Change: We continue to evaluate and execute actions by systemically and operationally, we have worked well in the U S to drive further improvements across Latin America.

Speaker Change: On Slide 14, you can see that we've expanded our client our presence in Latin America with seven of our 23 stores opening Nanjing, Shanghai stores, acquiring one store in Guatemala, and consolidating nine stores in Mexico.

Tim Jugmans: Pelo jewellery composition increased by 400 basis points, reflecting our continued focus on growing this category, particularly in Mexico. And from an inventory perspective, jewellery composition was down 90 basis points due to increased scrapping. As shown on slide 15, Latin America experienced 17% PLO growth and was up 14% on the same store basis, resulting in a 19% PSE increase. Strong results were driven by our themes of execution to drive operating performance as well as a robust loan demand from our customers. On the retail side, Merchandise Sales grew by 21%, up 18% on a same store basis.

Speaker Change: Hey, Hello, jewelry compensation increased by 400 basis points, reflecting our continued focus on growing this category, particularly in Mexico and Peru.

Speaker Change: Inventory perspective, jewelry composition was down 90 basis points due to increased scrapping.

Speaker Change: As shown on Slide 15, Latin America experienced 700 extent PLO growth and was up 14% on a same store basis, resulting in a 19% P&C Grace.

Speaker Change: Results were driven by our team's execution strong operating performance as well as a robust loan demand from our customers.

Speaker Change: On the retail side in Mexico, our sales grew by 21% up 18% on a same store basis.

Tim Jugmans: Merchandise gross profit grew 11%, partially offset by a 274 basis point margin contraction due to increased price negotiations at the counter. EBITDA grew an impressive 36% to $13.6 million with EBITDA margin increasing by 99 basis points to 13.9%.

Speaker Change: Satisfies profit grew 11%, partially offset by 274 basis point margin contraction due to increased pricing you guys, Jason because of Canada.

Speaker Change: EBITDA grew an impressive 36% to $13 6 million with EBITDA margin, increasing by 99 basis points.

Speaker Change: 9%.

Tim Jugmans: A quick word on our balance sheet and capital allocation priorities. We are well positioned for the future with a very strong balance sheet and robust liquidity. As Lachy mentioned, during the quarter, we completed a $300 million debt financing, and as of March 31, we had approximately $505 million of cash. As part of this transaction, we received a first-time credit rating of BA1 from Moody's, clearly reflecting the strength of the company's financial position. Slide 28 of our quarterly earnings presentation provides a pro forma view of our debt and convertible note obligations to account for the expected retirement of our May 2025 convertible note.

Speaker Change: A quick word on our balance sheet and capital allocation priorities.

Speaker Change: We are well positioned for the future with a very strong balance sheet and robust liquidity.

Speaker Change: As Lachlan mentioned during the quarter, we completed a $300 million debt financing and as of March 31, we had approximately $505 million of cash.

Speaker Change: As part of this transaction, we received a first time correct.

Speaker Change: Of the one from Moody's clearly, reflecting the strength of the company's financial position.

Speaker Change: Slide 28 of our quarterly earnings presentation provides a pro forma view of vertical.

Speaker Change: Vertical market obligations to account for the expected retirement of our May 2025 convertible notes.

Tim Jugmans: The pro forma assumes that convert holders do not convert their convertible moats into common stock, which would be done at a share price of $15 an item. However, if all the holders do elect to convert their notes, the total number of shares underlying these notes is 6.5 million shares, which we have already shown in our diluted EPS calculation. If this were to occur, the $103.4 million of cash that was earmarked to redeem these notes would remain available to the company for other uses. Looking ahead, we believe our focus on growing PLO. Combined with disciplined inventory management, streamlined systems, and a commitment to exceptional customer service, we'll be driving forth that sustain our strong momentum through 2025.

Speaker Change: The pro forma assumes that convert holders do not convert the convertible notes into common stock, which would be done at a share price of $59 90.

Speaker Change: However, if all the all of US do elect to convert their notes.

Speaker Change: Total number of shares underlying these notes is $6 5 million shares, which we've already shown in our diluted EPS calculation.

Speaker Change: If this were to occur the $103 4 million of cash that was earmarked to redeem. These notes would remain available to the company filed a UCITS.

Speaker Change: Looking ahead, we believe our focus on growing PLO.

Speaker Change: Combined with disciplined inventory management streamline systems, and our commitment to exceptional customer service will be driving force.

Speaker Change: Our strong momentum through 2025.

Tim Jugmans: While consumers continue to navigate macroeconomic pressures, EZCORP remains committed to meeting our customers' evolving needs and consistent, long-term financial results. From an M&A standpoint, our pipeline remains strong with opportunities in both the US and Latin America. Our acquisition strategy remains grounded in rigorous due diligence and discipline execution, focused on identifying high quality creative targets that support long term growth and deliver attractive returns to our shelters.

Speaker Change: While consumers continuing to navigate and macroeconomic pressures easy Coke remains committed to meeting our customers' evolving needs and consistent long term financial results.

Speaker Change: From an M&A standpoint, our pipeline remained strong with opportunities in both the U S and Latam.

Speaker Change: Our acquisition strategy remains grounded in rigorous due diligence and disciplined execution focused on identifying high quality accretive targets that support long term growth.

Speaker Change: Attractive returns to our shareholders.

Lachlan Given: Now I would like to turn it over to Lockheed for a few closing remarks. Thanks Tim, I'd like to extend my genuine appreciation to our team for delivering another impressive quarter with strong growth across nearly all of our key financial metrics. Guided by our core values of people, on and passion, the company remains well positioned to continue to drive sustained growth for our shareholders well into the future.

Speaker Change: Now I would like to turn it over to Lockheed for a few closing remarks.

Speaker Change: Thanks, Tim I would like to extend my genuine appreciation to our team for delivering another impressive quarter with strong growth across nearly all of our key financial metrics.

Speaker Change: By our core values of people on and passion. The company remains well positioned to continue to drive sustained growth for our shareholders well into the future.

Operator: And with that, we will open the call up to questions, Operator. At this time, I would like to remind everyone, in order to ask a question, press star and the number 1 on your telephone keypad. We will pause for just a moment to compile the Q&A roster.

Speaker Change: And with that we will open the call up to questions operator.

Speaker Change: At this time I would like to remind everyone in order to ask a question press star and the number one on your telephone keypad, we will pause for just a moment to compile the Q&A roster.

Brian McNamara: Your first question comes from the line of Brian McNamara, Conocord, GCC. Hey, good morning, guys. Thanks for taking the question and congrats on the strong result. So, I guess on the... Thanks, Brian.

Speaker Change: Your first question comes from the line of Brian Mcnamara Canaccord Genuity. Please go ahead.

Brian McNamara: Hey, good morning, guys. Thanks for taking the question congrats congrats on the strong results.

Speaker Change: So I guess on the Brian.

Brian McNamara: On the tax season, I think this is probably the most normal one we've had since arguably 2019. and your US PLO declined, as you said, 9% sequentially. I think that was typically like a mid-teens decline sequentially historically, if I'm wrong, please correct me. But in your view, is this just kind of a new normal, or does it speak more to the macro environment and its impact? Yeah, sure. You know, that knife...

Speaker Change: On the tax season I think this is probably the most normal one we've had since arguably 2019 and your U S. PLO decline that you said, 9% sequentially I think that was typically like a mid teens decline sequentially historically.

Speaker Change: Wrong, Please correct me, but.

Speaker Change: In your view is this just a kind of a new normal or does it speak more to the macro environment and its impact on your customers.

Tim: Tim you can take that.

Speaker Change: Yeah sure <unk>.

Speaker Change: The decrease was similar to last year.

Speaker Change: The average.

Speaker Change: <unk>.

Unknown Attendee: Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc. So it does look like a new normal. It does, you know, it does look like the American consumer costs have gone up more than that 4% of the refund. And so there is a lot more, you know, there's a lot more costs going in than compared to the refunds. So, you know, the last couple of years has been less than 10% drop. And as you said, it was, you know, between 15 and 20% drop prior to 2019.

Speaker Change: The average return as any good.

Speaker Change: <unk>, 4%.

Speaker Change: And so it does look like a new normal it does it does look like the American consumer costs have gone up more than that 4% of the refund and so there is a lot more.

Speaker Change: There is a lot more costs going in than compared to the refunds.

Speaker Change: The last couple of years has been less than 10% drop.

Speaker Change: And as you said it was.

Speaker Change: Between 15% and 20% drop prior to 2019, so does that.

Unknown Attendee: So it does look like a new normal if things.

Speaker Change: It looked like a new normal if things remain the same.

Unknown Attendee: Great.

Speaker Change: Great and then secondly, I know it's been tire stars tariffs. Obviously you recently in the news are you guys seeing a tangible impacts from tariffs on the positive side, yet with price increases.

Unknown Attendee: And then secondly, you know, it's been tariffs, tariffs, tariffs, obviously, recently in the news. Are you guys seeing a tangible impact from tariffs on the positive side yet with price increases, either widely in effect or widely expected in the primary market? And are you continuing to see new faces in your stores, perhaps middle and upper income folks trading that? Like the Tower. From a tariff perspective, News items don't appear in our stores straight away, so that does take a bit of time, but we are seeing the inflationary effects.

Speaker Change: Widely in effect are widely expected in the primary market and are you continuing to see new faces in your stores, perhaps middle and upper income folks trading down.

Speaker Change: Can you affect the terraform.

Speaker Change: Sure.

Speaker Change: From a tariff perspective.

Speaker Change: It does.

Speaker Change: Use all items Diana PRA now stolen Australia, why I said that does take a bit of time.

Speaker Change: Seeing.

Speaker Change: The inflation rate.

Speaker Change: Becks on gender.

Speaker Change: General merchandise side of the average loan size.

Speaker Change: Last quarter was due to 50% to jewelry of 50% to general merchandise this quarter at <unk>.

Unknown Attendee: Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc. Then on the second part of the question, Brian, we are seeing new faces, we are seeing people trade down, but it is a significant strategic initiative for us.

Speaker Change: <unk>, 5% jewelry 25 general merchandise and sorry that average line size continues to grow both because it gold price increases, but also general merchandise is getting more defensive and worth more money. So people are getting larger loans.

Speaker Change: Single items.

Speaker Change: And then on the second part of the question, Brian I think we are.

Speaker Change: Staying in the cycle.

Speaker Change: We are seeing we are seeing people trade down but it is it is.

Speaker Change: A significant strategic initiatives.

Speaker Change: To drive.

Speaker Change: Much more traffic into the stores and we're doing that.

Unknown Attendee: Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc. Key Strategic Initiative over the next 6, 12, 18 months because we want to see more of Great.

Speaker Change: <unk> way and in a digital way, which we think we're leading the market on so new customer transaction growth is.

Speaker Change: It's definitely happening.

Speaker Change: If a key strategic initiative initiative over the next 612 18 months, because we want to see more of it.

Speaker Change: Great and then.

Unknown Attendee: And then your merchandise margins in the last few quarters have been a bit kind of lower.

Speaker Change: Your merchandise margin the last few quarters have been a bit lower than.

Unknown Attendee: Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc. Yes, from a yes, so from a what we try and prioritize Prioritise Gross Profit. And so we look at both the PSC that's going to come through and the gross profit margin. And in combination, that's what we're trying to maximize. So at this point in the cycle, what we see is that trying to satisfy the customer's need with the cash will generate a little bit more PSC if we give them a little bit more money. That means that when, if that item does drop.

Speaker Change: And then we would've been accustomed to a 34% below your targeted range I am sure. There is a bit more negotiation in the stores, but why wouldn't that be a bit better, particularly as your larger competitors kind of doing that.

Speaker Change: March merch margin essentially kind of the low <unk> range is that simply you guys prioritize the long counter.

Speaker Change: Yes.

Speaker Change: Yes, so from a.

Speaker Change: What we try and prioritize trying to prioritize.

Speaker Change: Gross profit and so we look at both the PSC that has kind of come through and the girl.

Speaker Change: Gross profit margin.

Speaker Change: And in combination and that's what we're trying to maximize.

Speaker Change: So at this point in the cycle, what we see is that trying to satisfy the customers' needs.

Speaker Change: With the cash we will generate a little bit more PSC.

Speaker Change: If we give them a little bit more money.

Speaker Change: It means that when if that does drop.

Unknown Attendee: We will make a little bit less on the sale of that item, but from an overall perspective. We are trying to maximize that gross profit number, and I think you can see on one of those slides now. have been consistently producing great gross profit margins on an overall basis.

Speaker Change: We will make a little bit less.

Speaker Change: On the sale of that item, but from an overall perspective.

Speaker Change: We are trying to maximize that gross profit number.

Speaker Change: Think you can see on one of those slides now.

Speaker Change: We have been consistently.

Speaker Change: Producing gripes gross profit margins on our overall basis for very long time.

Unknown Attendee: Great.

Speaker Change: Great and then just last one on the 300 millions and senior notes clearly you have a lot of cash on the balance sheet now Im curious what you intend to do with the extra cash and if you could remind us of your capital allocations priorities. Thank you.

Brian McNamara: And then just last one on the $300 million in senior notes. Clearly, you have a lot of cash on the balance sheet. Now, I'm curious what you intend to do with the extra cash and if you could remind us of your capital allocations priorities. Thank you, Brian. Look, I think the story hasn't changed at all. I think we're looking for a real balance here on. Scaling the business up, which we've always said is our number one priority, we think the opportunity is very, very large for our company, even within the markets that we're already in.

Speaker Change: Thank you Brian look I think the story Hasnt changed at all I think we're looking we're looking for a real balance here on <unk>.

Speaker Change: Scaling that business up which we've always stated that number one priority. We think the opportunity is very very large for a company even within the markets that we're already in so scaling that business up.

Brian McNamara: So scaling the business up. and balancing that with running a very conservative balance sheet. So we like to be very liquid, as all our shareholders know. And so it really is a balance here that we're trying to build. We've got a pretty robust pipeline. The extra cash gives us some real flexibility now in how we can approach those opportunities. I think you'll, you know, it's not, you know, a new day for EZCORP at all. We are going to continue doing exactly what we've been doing, which is very disciplined M&A in the markets that we're in and in the products that we're in.

Speaker Change: And balancing that with running a very conservative balance sheet. So we like to be very liquid as all of our shareholders.

Speaker Change: And so it really is a balance here that we're trying to we're trying to build we've got a pretty robust pipeline. The extra cash gives us the real flexibility now and how we can approach approach those opportunities I think you'll.

Speaker Change: It is not.

Speaker Change: A new day for Eaton Corp. At all we all were going to continue doing exactly what we've been doing which is very disciplined M&A in the markets that we're in and.

Speaker Change: And in the products that Larry and yes, we will always look at new markets, but I think there is enough to do and significant pipelines across Mexico. The U S and other parts of Latin America.

Unknown Attendee: Yes, you know, we will always look at new markets, but I think there is enough to do and significant pipelines across Mexico, the US and other parts of Latin America where we think that we can put some capital to work. So I think it's more of the same. You know, I think we're just, we are more liquid. I think we're much, much stronger. I think, as I said in my opening remarks, I think the world and the macroeconomic economy kind of demand that for us at the moment. And I think our shareholders, prospective investors, and lots of the analysts are telling us that, you know, being very liquid at the moment.

Speaker Change: Where we think that we can put some capital to work. So I think it's more of a side I think we are just we are more liquid I think we're much much stronger I think as I said in my opening remarks.

Speaker Change: I think the world and the macro economic economy cut up demand that for us at the moment and I think as shareholders and prospective investors and lots of the analysts are telling us that.

Speaker Change: Being very liquid at the moment is extremely important and is well rewarded by the market. So I think we're in a really strong position, but I think you're just going to see more of more of a science now.

Operator: Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc. Operator, do you want to move to the next?

Speaker Change: We might have lost per arm.

Speaker Change: Operator, you want to add.

Unknown Attendee: I'm done, thank you guys. Ah, good on you, mate.

Speaker Change: Thank you guys.

Speaker Change: Good morning.

Speaker Change: Thank you.

Speaker Change: Yeah.

Operator: Operator, we move to the next...

Speaker Change: Operator, we move to the next question.

Alex Howell: Your next question comes from the line of Alex Howell. Hey guys, good morning. I'm on for Kyle. Congrats on the quarter and the recent private notes offering. I think most of my questions have actually been asked.

Speaker Change: Next question comes from the line of Alex <unk> from Stephens, Inc.

Speaker Change: Please go ahead.

Alex: Hey, guys good morning.

Speaker Change: On for Kyle.

Speaker Change: Congrats on the quarter end.

Speaker Change: Private notes offering.

Speaker Change: I think most of my questions have actually been asked.

Lachlan Given: I'm just curious how you guys are thinking about your Latin American acquisition strategy going forward and just what you're really seeing out there currently. Lachlan Given, Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Lending, Sales, Margin And it's really down to some fantastic operational leadership led by Blair and his operating team in Mexico You know, we've told the market We invested heavily in the US business first and that, you know, Latin America, we will do the same. And I think the market can see now the results of those efforts. So I think Latin America is an extremely important part of our business and getting more important given the organic performance.

Speaker Change: I'm just curious how you guys are thinking about.

Speaker Change: Your line your Latin American acquisition strategy going forward and just what Youre really seeing out there currently.

Speaker Change: Love to get your thoughts sure yes, sure. So Latin America is obviously a massive highlight.

Speaker Change: This quarter that we've just reported on as well as two or three before that we've seen.

Speaker Change: Extremely strong momentum down there across all of our metrics.

Speaker Change: Across lending sales margin.

Speaker Change: And it's really down to some fantastic operational leadership led by Glen and his operating team in Mexico, We've told the market that.

Speaker Change: We invested heavily in the U S business first in the Latin America, we will do the side, but I think the market can see now the results of those efforts.

Speaker Change: I think Latin America is an extremely important part of out of our business and getting more important.

Speaker Change: Given the organic performance.

Lachlan Given: I think in terms of the inorganic opportunities, absolutely. right down there in Mexico and beyond. I think, you know, there are small opportunities of five to 15 stores. you know, there's the middle size up to 150 and then and then, you know, five plus opportunities above. And when I say opportunity, I just mean operators down there. So it's a very large market, it is a very interesting market for us, but again, we will take a disciplined approach to acquisitions down there. So I think we have made sure that our balance sheet is strong enough to move on opportunities.

Speaker Change: In terms of inorganic opportunities.

Speaker Change: Lately.

Speaker Change: Right down there in Mexico and beyond I think.

Speaker Change: There are small opportunities or thoughts to 15 stores in the us.

Speaker Change: The.

Speaker Change: The middle size up to 150, and then and then I've thought plus opportunities above that.

Speaker Change: And when I say opportunity just main operators down there. So it is a very large market.

Speaker Change: A very interesting markets are off but again, we will take a disciplined approach to acquisitions down there.

Speaker Change: So I think we have made sure that our balance sheet is strong enough to move on opportunistic.

Lachlan Given: Opportunistic Acquisitions down there, which there are, you know, as I said, a long list of independent operators down there, but we will do it in a way that our shareholders at EZCORP. EZCORP Inc. Thank you, guys.

Speaker Change: Opportunistic acquisitions down there.

Speaker Change: Which there.

Speaker Change: As I said.

Speaker Change: A long list of independent operators down there, but we will do it in a way that our shareholders get.

Speaker Change: A an appropriate return.

Speaker Change: We acquired good management teams and that we think we can improve those businesses. So all in all I think it's more of the same down there lots of opportunity. We've got we've got a really strong balance sheet to go after it but.

Speaker Change: We will do it in a in a day.

Speaker Change: Disciplined way.

Speaker Change: Thank you guys.

Speaker Change: Thanks, Doug.

Craig Irwin: Your next question comes from the line of Craig Irwin from Roth Capital. Good morning, and thank you for taking my question. So to step back into the big picture, right? You obviously are executing really well on some of these initiatives you've put in place. The one that jumps out to me is the longer term layaways and the 15% increase in layaways that that's delivered in a quarter, right? Then you also have other tailwinds that are sort of non-discretionary, like the price of gold, going through $3,000 an ounce.

Speaker Change: Your next question comes from the line of Craig Irwin from Roth Capital Partners. Please go ahead.

Craig Irwin: Hi, good.

Craig Irwin: Good morning, and thank you for taking my questions.

Speaker Change: So.

Speaker Change: To step back into the Big picture right.

Speaker Change: You, obviously are executing really well on some of these initiatives you've put in place like I guess, the one that jumps out to me is the longer term lightweights in the 15% increase.

Speaker Change: Les ways that that's that's delivered in the quarter right.

Speaker Change: Then you also have other tailwind that are sort of non discretionary like the price of gold going through three $3000 an ounce.

Lachlan Given: Lachy, can you maybe just talk us through... Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc. Thank you, Craig. Good morning, mate. Yeah, so Tim and I will both have a sort of, we'll split that question up a bit. in taking that step back. I think you're dead right, we have got our own internal initiatives that are driving much better operational execution and performance, and then you've got external macroeconomic including the gold price. things that are going on that are also, you know, on balance helping. And so I think both, both of those two separate buckets.

Speaker Change: Can you maybe just talk us through.

Speaker Change: How these discretionary and non discretionary tailwind are materializing in your business.

Speaker Change:

Speaker Change: <unk> is the benefit from things like the longer term layer weights already in or is it still building and should we see a similar.

Speaker Change: Impact from gold prices benefiting the jewelry business does that come through over time or does it come through much more quickly in an individual quarter.

Speaker Change: Thank you Craig and good morning, Matt Yeah, So assuming all else always have.

Speaker Change: We'll split that pushed it up a bit but.

Speaker Change: And taking that step back, which I think is a good thing to do.

Speaker Change: I think you're dead right, we have got our own internal initiatives that.

Speaker Change: Driving much better operational execution and performance and then you've got external macroeconomic including the gold price.

Speaker Change: Things that are going on that are also on balance, helping and so I think both both of those two separate buckets.

Lachlan Given: www.ezcorp.co.uk www.ezcorp.co.uk As a result of those as a result of those layaways, so we haven't recognized the sales to this point on that on that question but which, you know, which hopefully sets us up for some strong sales periods going forward. But, you know, many, many other internal initiatives that are that are driving this performance. You've got a lot of time being spent on how we price products at the loan counter. You've got a lot of work going on on lending grids, how much, you know, what our LTV should be by what categories. You've got lots of marketing initiatives going on around both digital and And really, Blair just leads an operating format that is highly disciplined.

Speaker Change: Helping to drive that really strong performance in terms of the internal stuff.

Speaker Change: Thank you question on the Layaway program look the Layaway program. If you remember you don't recognize sales until those <unk> are paid in full so we expect that we have essentially put off styles into the next few quarters.

Speaker Change: As a result of those as a result of those lower so we havent recognized the sales at this point on that on that question.

Speaker Change: Yes.

Speaker Change: Which which hopefully set us up with some strong sales periods going forward.

Speaker Change: But many many other internal initiatives that are that are driving this performance you've got a lot of time being spent on how we price products at the <unk>, Canada you've got.

Speaker Change: A lot of work going on on lending grade how much what our LTV should be brought in by what categories, you've got lots of marketing initiatives going on around both digital and in store.

Speaker Change: And really delay it just leads and operating pull that.

Speaker Change: It is highly disciplined.

Lachlan Given: It is not a knee-jerk type of regime. It is a, we run a really balanced business here. And I think, you know, the last three or four years of a really simple strategy around this operational execution piece is what's been so critical in driving the financial performance. And then I think the stock. In terms of the external stuff, yeah, gold is obviously a big driver of average loan size. So we've seen, it really is quite momentous PLO growth. A year ago I would have been saying that 8% loan growth is fantastic and we're seeing So it's, you know, it's pretty, it really is exceptional growth on the lending side and that's the core of the business that we're in.

Speaker Change: It is not a knee jerk top of ryzen and <unk>, we run a really balanced business here.

Speaker Change: And I think the last three or four years of a really simple strategy around this operational execution pace is what.

Speaker Change: What's been so critical in driving the financial performance and then I think the stock price.

Speaker Change: In terms of the external stuff, yes gold.

Speaker Change: Obviously.

Speaker Change: A big driver of average loans on that we've seen it really has caught momentum PLO growth.

Speaker Change: A year ago I would have been signed that 8% loan growth is fantastic and where things 15. So.

Speaker Change: It's pretty.

Speaker Change: It really is exceptional growth on the lending side and that's the core of the business that we're in so the gold price is certainly helping on the lending side.

Lachlan Given: So the gold price is certainly helping on the lending side. And then on the selling side, look, there's some very different, in some ways, competing external things going on out there. It's getting tougher for the consumer. Gold prices on the buying side are getting high, you know, and if they keep getting higher, they start to become a little bit more unaffordable. So on the selling side, we've just got to be really disciplined and dialed in on our discounting cadence. to really move this inventory. But at the moment, we're pretty happy with the way that's going in the U.S.

Speaker Change: And then on the selling side look there there are some very different in some ways competing.

Speaker Change: Eternal thing going on out there it is getting tougher for the consumer gold prices.

Speaker Change: On the buying side of getting high.

Speaker Change: And if I keep getting hard not to become a little bit more on affordable settlement on the selling side. We've just got to be really disciplined and dialed in on our discounting cadence.

Speaker Change: To really move this inventory, but at the moment, we're pretty happy with the way that's going in the U S. We've got more to do in the U S.

Lachlan Given: We've got more to do in the U.S. around selling. But with the Lab Aid program about to hit, we think we think we should be driving some good selling there. And then you can see in Latin America, it really. really is doing very well down there. So I think, look, it's a really good point. There's two things going on, the stuff we're doing internally and the macro side. At the moment, you can see from the financial results. It really is a great time to be.

Speaker Change: Around selling but led by program about to hit.

Speaker Change: Thank you.

Speaker Change: We should be driving some good selling there and then you can see in Latin America. It really is it.

Speaker Change: It really is doing very well down there. So I think look it's a really good point is two things going on the stuff, we're doing internally on the macro side and at the moment you can see from the financial results.

Speaker Change: <unk> is a great time to be in the pawn business.

Tim Jugmans: him if you want to add anything. Yeah, just a little bit more detail on those layaways, what you're correct in saying that this is a continues to build. And so those sales haven't come through, those sales will start coming through in the next few months. And then you'll see the full effect of that layaway program actually in the in the sales lines. At the moment, you're really only seeing it on the balance sheet and in the growth of those layaway balances. on the on the gold side.

Speaker Change: If you want to add anything to that.

Speaker Change: Yes, just a little bit more detail on those right of ways.

Youre correct in saying that this continues to build and so those sales haven't come through.

Speaker Change: Those sales will start coming through in the next few months.

Speaker Change: And then Youll see the full effect of that Layaway program actually.

Speaker Change: In the <unk> lines.

Speaker Change: At the moment, you're really only seeing it on the.

Speaker Change: On the balance sheet.

Speaker Change: And in the growth of those YY balances.

Speaker Change: On the on the gold side, the one thing to remember is that we're not.

Tim Jugmans: The one thing to remember is that we're not Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc. Daily on the gold price increases. So we do it. We really look at the more longer term views of gold So we're looking at that all the time, but we're not reaching lending gold at the level of the price of gold today, but probably a few months ago is where we're probably lending a gold at the moment. So there's always some room, even if gold does come down, that we have some buffer. Thank you for that.

Speaker Change: Moving.

Speaker Change: Loan.

Speaker Change: <unk>.

Speaker Change: Daily on the gold price increase and so we do it we really look at.

Speaker Change: More longer term views of goals.

Speaker Change: And so we are looking at that all the time, but we're not.

Speaker Change: We're not reaching lending goal that the level of the price of gold today.

Speaker Change: But probably.

Speaker Change: A few months ago and is where we are.

Speaker Change: Probably lending our goals at the moment. So there is always some room, even if gold does come down we have some buffer there.

Speaker Change: Okay.

Speaker Change: Thank you for that.

Craig Irwin: So my next question is about the luxury market at MaxPond. This is one, I guess, that kind of piques my interest because I can see a fairly substantial opportunity for expansion of your customer base. Can you maybe just update us on MaxPond? I guess last quarter you said sales were at 50%, which is phenomenal. What would it take for you to look to grow the storefronts the online presence around MaxPond and drive more revenue through this? Yeah, it's definitely an exciting part of the business. And so, you know, starting at the top, we are ahead of where we thought we would have been when we started out on this process.

Speaker Change: So my next question is about the luxury market and Max PON.

Speaker Change: This is one I guess the kind of peaks my interest because I can see a fairly substantial opportunity for expansion of your customer base.

Speaker Change: Can you maybe just update us on unmatched on.

Speaker Change: I guess last quarter, you said sales were up 50%, which is phenomenal.

Speaker Change: Would it take for you to.

Speaker Change: To look to grow the storefronts or look to grow the online presence around Max Max PON and <unk>.

Speaker Change: And drive more revenue through this channel.

Speaker Change: Yes, it's definitely an exciting part of the business.

Speaker Change: And so starting at the top.

Speaker Change: Ahead of where we thought we would have been when we started out on this process.

Lachlan Given: So that's a great place to start. This business is gathering momentum, obviously based in Vegas at the moment, run by a really experienced pawnbroker in Michael Mack. And so we're, you know, we're really happy with the way the business is going. And you're right, we also think that, you know, we're proving it up in Vegas in a multi-unit format. You know, we started with one store and now we've got more. So we're proving that up and we're really happy with the way that's going. But we are now looking at new markets. around the United States.

Speaker Change: A great place to start this business is gathering momentum obviously based in Vegas at the moment.

Speaker Change: Ron by really experienced Poland breaker.

Speaker Change: In bottleneck and so we're really happy with the way the business is going and you are right.

Speaker Change: Also I think the.

Speaker Change: We're proving it up in Vegas in a multi unit format, we started with one store and now we've got more.

Speaker Change: So we're proving that up and we're really happy with the way that's going but we are now looking at new markets.

Speaker Change: We think there is some really natural candidates.

Speaker Change: Around the United States to begin with that would be would.

Speaker Change: It would be suitable here, but I think you've seen from this management team over a period of time.

Speaker Change: We'd like to do things in a disciplined way we.

Speaker Change: We look at return on capital.

Speaker Change: The way you were thinking which is customer base, expanding expanding that natural customer base that we've always had and so I think you will see in the coming couple of years this business expand but.

Speaker Change: Really happy with the wide scaling it is still smaller.

Speaker Change: It's a small part of the path of alignment but in.

Unknown Attendee: at EZCORP. https://www.easyporn.com While small today, a really Excellent.

Speaker Change: Five years I would like to think that it's like a much bigger part and we're also gathering expertise from that business and rolling it out into some of our so actually a lot of vessels.

Speaker Change: Obviously not.

Speaker Change: Full luxury stores in the <unk> business, but we are seeing many many stores with some luxury goods that were that were learning from the from the Mexico and category or that or that we had already so I think the luxury category in itself is a really interesting while small today are really interesting.

Speaker Change: Two to five year play for us.

Speaker Change: Excellent well.

Craig Irwin: Well, congratulations again on a really solid quarter. And I'll go ahead and hop back. Thanks Craig, good on you.

Speaker Change: Congratulations again on a really solid quarter and I will go ahead and hop back in the queue.

Craig Irwin: Thanks, Craig.

Raj Sharma: Your next question, or your final question, comes from the lines of Raj Sharma from Texas Capitol Black. Hi, thank you. Thank you, great. Congratulations on the solid performance. Thank you for taking my question.

Speaker Change: Your next question are your final question comes from the lines of Raj Sharma from Texas Capital Black. Please go ahead.

Craig Irwin: Hi.

Speaker Change: Thank you. Thank you Greg congratulations on the solid performance.

Speaker Change: Thank you for taking my question. So after just after the completion of the debt offering in the <unk>.

Raj Sharma: So after just, after the completion of the debt offering and the expected takeout of the converts, just remind me again, please, what would the shares outstanding be? And then I've got a couple of follow-on questions. Yeah, yeah. So there's a good... There's a good summary on that effect in the in the back of that presentation on page 28 and 29 we go through that detail of the debt refinancing so there's six and a half million Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc. Got it.

Speaker Change: Expected take out of the converts.

Speaker Change: Just remind me again, please what would the shares outstanding B.

Speaker Change: And then I've got a couple of questions.

Speaker Change: It is a good.

Speaker Change: It's a good summary on that effect in the in.

Speaker Change: In the back of that.

Speaker Change: <unk> on page 28, and 29, we go through that detail.

Speaker Change: The debt refinancing so that $6 5 million.

Speaker Change: Shares associated with the 2025 converts depending on what our holders elect to do will depend on how many yet competitive.

Speaker Change: Got it.

Speaker Change: Got it.

Lachlan Given: And then Any color more color on the founders group, you know, how their performance is doing is going in this environment. Yeah, thanks Raj. So Stimple is doing really well. They are 100 stores across Florida and the Caribbean and some of Central America. They're now getting into scale, which is fantastic, and they are seeing similar trends to what we're seeing across very strong lending, growth in sales, margin. So we're really happy with the way that those guys are going. And yeah, we sit here as a long-term holder of a preferred security in essentially what's the third largest foreign broker in the United States.

Speaker Change: And then.

Speaker Change: Any color more color on the founders grew.

Speaker Change: <unk>.

Speaker Change: Is doing is going in this environment.

Speaker Change: Yes, Thanks Raj so.

Speaker Change: Simple is doing really well.

Speaker Change: 100 stores.

Speaker Change: Across Florida, and the Caribbean and submits them with Central America being similar.

Speaker Change: They are now getting into style, which is fantastic and I are seeing similar.

Speaker Change: Similar trends to what we're saying.

Speaker Change: Very strong lending.

Speaker Change: Growth in sales margin.

Speaker Change: Happy with the way that those guys are going.

Speaker Change: And.

Speaker Change: We sit here as a long term holder of a preferred security.

Speaker Change: Essentially what is the third largest bond broker in the United States now.

Lachlan Given: So as I said, we're really happy with the way they're going. Business is performing well, solid team that's, that is stable.

Speaker Change: So as I said, we're really happy with the way they are going the business is performing well solid obtained.

Speaker Change: That is stable.

Raj Sharma: You know, we'll, we'll continue to assess our. You know what we do with them in the future, but for now we're really... Got it. Thank you. Thank you for that.

Speaker Change: We will continue with that.

Speaker Change: Ill.

Speaker Change: What we do with them in the future, but for now we're really happy.

Speaker Change: Got it. Thank you. Thank you for that and then just.

Lachlan Given: And then just last question for me. You you've you have a off balance sheet sort of growth vehicle. That's a really smart structure that, you know, can you Are there more plans to do something, you know, to have growth around that structure, any color on that? And what was that, about $50 million that he... Look, we've designed the structure for... Yeah, look, we designed that structure specifically. Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc You know, we have a preferred in that business. It's not a vehicle we thought of to do other things in or anything like that, you know, doing more partnerships in that vehicle.

Speaker Change: Last question for me.

Speaker Change: You have a off balance sheet sort of growth vehicle.

Speaker Change: That's a really smart structure that.

Speaker Change: Can you.

Are there more plans to do something.

Speaker Change: To have growth around that structure any any color on that.

Speaker Change: And what was that about $50 million of infrastructure investment.

Speaker Change: Yes look we designed that structure, specifically so simple.

The business that we've just talked about I think it's been a really successful structure as we've been able to see that business scale very very quickly.

Speaker Change: Using off balance sheet debt and.

Speaker Change: We have a preferred.

Speaker Change: In that business then look it's.

Speaker Change: It's not it's not a vehicle we thought off to do other things in or anything like that doing more partnerships in that vehicle is specifically for that situation, which I think has worked really well, but yes every quarter. We're always considering how we can help simple more what they need.

Lachlan Given: know specifically for that situation which I think's worked really well but yeah over every quarter we're always considering how we can help Simple More what their needs are what their shareholders needs are but it's obviously very strategically relevant for us as the third largest operator we've worked with their management team for many many years and know them well so you know in time with them we will think about how our future looks together but for now we know we like being you know a preferred holder of Unknown Attendee, Kyle Joseph, Sean Mansouri, John Hecht, Andrew Scutt, EZCORP Inc.

Speaker Change: What the shareholders' needs are but it's obviously very strategically relevant for us as the third largest operator.

Speaker Change: We've worked with the management team for many many years and all of them well.

Speaker Change: So in time with them, we will think about how our future looks together, but for now we like being.

Speaker Change: Our preferred holder of.

Speaker Change: Our preferred holder of that security in and staying close to the situation.

Raj Sharma: Got it. Thank you. Thank you again for taking my questions. I'll take it offline again. Solid results. Thank you.

Speaker Change: Got it thank you and thank you again for taking my questions.

Speaker Change: Take it offline again solid results. Thank you.

Unknown Attendee: Thanks.

Speaker Change: Thanks.

Lachlan Given: I will now turn the call back over to Lachlan Given. Thank you, Operator. Thank you, everyone, for joining today. We're really proud of another fantastic quarter. So I'm looking forward to talking to many of you during the day and over the next week or so. Thanks, everyone.

Larry: I will now turn the call back over to Larry <unk> for closing remarks.

Larry: Thank you operator, thank you everyone for joining today, we're really proud of another fantastic quarter, So looking forward to talking to.

Larry: Many of you during the day and over the next week or so thanks, everyone.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Operator: You may now Please wait, the conference will begin shortly.

Please wait the conference will begin shortly.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.