Q4 2025 EZCORP Inc Earnings Call

Operator: This time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this call may be recorded. I'd now like to turn the conference over to Sean Mansouri, the company's investor relations advisor with Elevate IR. Please go ahead, Sean.

Later, we will conduct a question and answer session and instructions will follow at that time.

As a reminder, this call maybe recorded.

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

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 Dot com.

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 risks or other factors that are discussed in our annual, quarterly, and other reports filed with the Securities and Exchange Commission. 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.

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 statements are based on the Companys current expectations.

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.

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 today on the call are easy Corp, Chief Executive Officer Lockheed given.

Sean Mansouri: Joining us today on the call are EZCORP's Chief Executive Officer, Lachlan Given, and Tim Jugmans, Chief Financial Officer. Now, I'd like to turn the call over to Lachlan.

And Tim Guttman, Chief Financial Officer.

Now I'd like to turn the call over to Lockheed.

Thank you, Sean and good morning, everyone.

Lachlan Given: Thank you, Sean, and good morning, everyone. Fiscal 2025 was a transformative year for EZCORP. Outstanding operating and financial results on the top and bottom line drove exceptional shareholder value creation. We materially grew the store base across the five countries in which we operate while retaining a highly liquid and lowly geared balance sheet. We achieved record revenue of $1.3 billion for 2025, up 12% year over year, and adjusted EBITDA of $191.2 million, up 26%. EBITDA margin also expanded to 14.7% from 13%. Net income surged 30% to $110.7 million. Turning to slide three, EZCORP is a leading provider of pawn transactions in the United States and Latin America. Founded in 1989, we operate 1,360 stores across five countries with approximately 8,500 team members. Our model expands access to financial services through neighborhood retail locations, and promotes the circular economy by recycling pre-owned merchandise and jewelry.

2025 was a transformative year for <unk>.

Outstanding operating and financial results on the top and bottom line drove exceptional shareholder value creation.

We materially grew the store base across the five countries in which we operate while retaining our highly liquid and lowly geared balance sheet.

We achieved record revenue of $1 3 billion for 2025 up 12% year over year, and adjusted EBITDAR of $191 2 million up 26%.

EBITDA margin also expanded to 14, 7% from 13%.

Net income third 30% to $110 $7 million.

Turning to slide three.

<unk> is the leading provider of Poland transactions in the United States and Latin America.

Founded in 90, 99, we operate 30 and 160 stores across five countries with approximately 85000 team members.

Our model expands access to financial services through neighborhood retail locations and promote circular economy by recycling preowned merchandise and jewelry.

The fundamentals of our Poland products continue to resonate powerfully with customers, who need immediate access to cash.

Lachlan Given: The fundamentals of our pawn product continue to resonate powerfully with customers who need immediate access to cash. Our loans are non-recourse, meaning customers have no obligation to repay. They can simply walk away and forfeit their collateral with no further consequences. We don't check credit scores, we don't require bank accounts or employment verification, we never engage in collection activities, and we don't report to credit bureaus. These small short-term transactions serve millions of Americans and Latin Americans who are underserved by traditional financial institutions that need immediate cash solutions delivered in a highly respectful and efficient way. Moving to slide four, we added 24 stores in the quarter, opening 17 de novo stores in Latin America, 11 in Mexico, four in Guatemala, and two in Honduras.

Our loans are nonrecourse, many customers have no obligation to revise.

That can simply walk away and forfeit their collateral with no further consequences.

We don't take credit scores, we don't require a bank account or employment verification, we never engaged and collection activities and we don't report the credit bureaus.

The small short term transactions of millions of Americans and Latin Americans, who are underserved by traditional financial institutions that need immediate cash solutions delivered in a highly respectful and efficient way.

Moving to slide four.

We added 24 stores in the quarter.

Turning 17 de Novo stores in Latin America, 11 in Mexico for in Guatemala, and two in Honduras.

We also completed the acquisition of seven seven stores through a month of Providencia and two an <unk> transaction in Mexico, plus acquired one store in the United States offset by one consolidation.

Lachlan Given: We also completed the acquisition of seven stores through our Monte Providencia and two Impennyo Effectivo transactions in Mexico, plus acquired one store in the United States, offset by one consolidation. Our store count has grown from 1,148 stores in fiscal 2021 to 1,360 stores at fiscal 2025 year-end. Post-fiscal year-end, we acquired 14 additional stores in Mexico and three in Texas, and entered into a definitive agreement to acquire 12 more Texas locations. We ended the quarter with earning assets of $549.1 million, up 18%, comprised of a record PLO of $303.9 million, and inventory of $245.2 million. The PLO balance represents an 11% increase year over year, driven by strong consumer demand and increased average loan sizes. Our PLO to inventory ratio remains healthy at 1.2x, demonstrating disciplined lending and inventory management.

Our store count has grown from 1100 48 stores in fiscal 2021 to <unk> 160 stores in fiscal 2025 year end.

At fiscal year end, we acquired 14 additional stores in Mexico, and three in Texas and entered into a definitive agreement to acquire 12 more Texas locations.

We ended the quarter with earning assets of $549 $1 million up 18% comprised a record low of $303 $9 million in inventory of $245 $2 million.

The PLO balance represents an 11% increase year over year, driven by strong consumer demand and increased average loan sizes.

A pillow to inventory ratio remained healthy at one two time, demonstrating disciplined lending and inventory management.

Our cash position of $469 $5 million increased materially from $175 million at fiscal 2024, reflecting the $300 million senior notes offering completed in March 2025.

Lachlan Given: Our cash position of $469.5 million increased materially from $170.5 million at fiscal end 2024, reflecting the $300 million senior notes offering completed in March 2025. We remain well-positioned financially to unlock further scale and accelerate organic and inorganic growth. Slides five and six highlight our strong financial performance during the fourth quarter. Tim will walk through those in detail shortly. On slide seven, it provides an update on the strategic initiatives fueling our consistent growth across four of our fundamental operating metrics. Under the strengthen the core, we delivered double-digit growth with record revenues and record high PLO, powered by our customer-centric approach and robust consumer demand. The team's ongoing commitment to operational excellence continues to support exceptional profitability. Adjusted EBITDA grew 33% to $47.9 million, while margins expanded 210 basis points to 14.3%.

We remain well positioned financially to unlock further scale and accelerate organic and inorganic growth.

Slide five and six on that our strong financial performance during the fourth quarter, Tim will walk through those in detail shortly.

On slide seven provides an update on our strategic initiatives fueling our consistent growth across four of our fundamental operating metrics.

Under the strengthen the core we delivered double digit growth with record revenues and record high PLO powered by our customer centric approach and robust consumer demand.

The team's ongoing commitment to operational excellence continues to support exceptional profitability.

Adjusted EBITDA grew 33% to $47 9 million.

While margins expanded 210 basis points to 14, 3%.

On team members, we implemented a targeted incentive compensation campaign in Q4 to successfully improved merchandise sales results, we plan to replicate periodically throughout fiscal 2026.

Lachlan Given: On team members, we implemented a targeted incentive compensation campaign in Q4 that successfully improved merchandise sales, results we plan to replicate periodically throughout fiscal 2026. We have also completed enterprise-wide talent and succession planning, and launched structured retention programs that are already enhancing early engagement and reducing workforce attrition. Our customer-focused initiatives are gaining significant traction. Our strategy is delivering measurable results. Digital transformation continues to accelerate omnichannel engagement and operational efficiency. EZ Plus Rewards membership is up 26% to 6.9 million members, driving loyalty in local neighborhoods we serve, and repeat transactions. We continue to broaden engagement across platforms, with our website traffic increasing 49% to 2.6 million visits this quarter. Importantly, net promoter scores improved dramatically, rising to 61% in the US and 62% in Mexico, while we maintain Google review ratings above 4.7 across all geographies. Finally, our innovate and grow initiatives deliver tangible expansion this quarter.

We've also completed enterprise wide talent and succession planning and launched structured retention programs that are already enhancing early engagement and reducing workforce attrition.

Our customer focused initiatives are gaining significant traction.

Our strategy is delivering measurable results.

Digital transformation continues to accelerate omnichannel engagement and operational efficiency.

<unk> plus reward membership is up 26% to $6 9 million members driving loyalty and local neighborhoods, we serve and repeat transactions.

We continue to broaden engagement across platforms with our website traffic, increasing 49% to $2 6 million visits this quarter.

Importantly, net promoter score has improved dramatically rising to 61% in the U S and 62% in Mexico, while we maintain Google review writings about $4 seven across all geographies.

Finally, our innovate and grow initiatives deliver tangible expansion this quarter.

In the U S. We collected $34 million in online payments up $10 million or 42% year over year growth.

Lachlan Given: In the US, we collected $34 million in online payments, up $10 million, or 42% year-over-year growth, demonstrating strong customer adoption of digital platforms. We expanded our Buy Online Purchase In-Store capability to all US stores as of October 2025, seamlessly connecting digital discovery with in-store transactions. Additionally, our Instant Quote Tool, which provides real-time loan estimates for electronics, is now operational in 66% of US stores, driving both customer engagement and conversion. In Mexico, we're seeing rapid digital adoption, with 22% of extensions and layaway payments now processed online, creating convenience for customers while improving store productivity. As we continue to scale these digital initiatives, we're unlocking meaningful operational leverage while enhancing the customer experience. This omnichannel approach positions us at the forefront of digital innovation in our industry, while digital engagement successfully translates into increased store transactions and reinforces our market leadership position.

<unk> strong customer adoption of digital platforms.

We expanded our view online purchase in store capability to all U S stores as of October 2025, seamlessly connecting digital discovery within store transactions.

Additionally, our instant quote tool, which provides real time loan estimate for electronics is now operational and 66% of U S stores, driving both customer engagement and conversion.

In Mexico, we're seeing rapid digital adoption with 22% of extensions and layaway payments now processed online, creating convenience for customers, while improving store productivity.

As we continue to scale. These digital initiatives, we're unlocking meaningful operational leverage while enhancing the customer experience.

This omnichannel approach positions us at the forefront of digital innovation in our industry, while digital engagement successfully translates into increased store transaction and reinforcing our market leadership position.

I'll now turn it over to Tim to walk through our detailed financial results Tim.

Lachlan Given: I'll now turn it over to Tim to walk through our detailed financial results. Tim?

Tim.

Thanks, Marty as we transition into the detailed financial highlight section I wanted to emphasize that fiscal 2025 represent such a strong quarterly performance, but the culmination of multiple years of operational improvements and strategic investments and disciplined execution.

Tim Jugmans: Thanks, Lachlan. As we transition into the detailed financial highlight section, I want to emphasize that fiscal 2025 represents not just strong quarterly performance, but the culmination of multiple years of operational improvements, strategic investments, and disciplined execution. The results demonstrate the significant earnings power of our platform and our ability to generate consistent, profitable growth while maintaining strong financial discipline. Turning to slide nine, PLO of $303.9 million increased 11%, or 9% on a same-store basis, driven by an increase in average loan size reflecting higher gold values and the increase in value of general merchandise. Inventory increased 28% to $245.2 million due to increase in PLO, layaways, and purchases. Aged general merchandise increased 83 basis points to 2.6% of total general merchandise inventory, demonstrating disciplined inventory management. Merchandise sales of $176 million increased 9%, with same-store sales up 7%. Merchandise margin remained steady at 35%.

Our results demonstrate the significant earnings power of our platform and our ability to generate consistent profitable growth, while maintaining strong financial discipline.

Turning to slide nine PLO, Australia, and $3 $9 million increased 11% on 9% on a same store basis, driven by an increase in average line size, reflecting higher gold values and increased in value of general merchandise.

Inventory increased 28% to $245 2 million due to increase in PLO byways and purchases.

General merchandise increased 83 basis points to two 6% of total general merchandise inventory demonstrating disciplined inventory management.

Merchandise sales of $176 million increased 9% with same store sales up 7%.

<unk> margin remained steady at 35%.

<unk> of $125 $6 million grew 9%, primarily driven by same store PLO growth.

Tim Jugmans: PSE of $125.6 million grew 9%, primarily driven by same-store PLO growth. EBITDA reached $47.9 million, up 33% year-over-year, with margins expanding 210 basis points to 14.3%. General and administrative expenses of $23.4 million increased 13%, primarily due to higher incentive compensation. On slide ten, total revenues increased $26.9 million, or 13%, to $238.9 million for the US pawn segment. Approximately half of this is attributed to scrap sales benefiting from higher gold prices and increased jewelry purchases. Earning assets increased $66.5 million to $419.4 million, driven by PLO growth of $19.5 million to $233.8 million and inventory growth of $47 million to $185.7 million. The 9% PLO growth on both a total and same-store basis reflects strong performance across our markets. On slide 11, our 545 stores across 19 states are concentrated in large urban markets.

EBITDA rates $47 9 million up 33% year over year with margins expanding 210 basis points to 14, 3%.

<unk> and administrative expenses of $23 $4 million increased 13%, primarily due to higher incentive compensation.

On slide 10, total revenues increased $26 9 million or 13% to $238 9 million for the U S pawn segment.

Approximately half of this is attributable to the scrap sales benefiting from higher gold prices and increase jewelry purchases.

Earning assets increased $66 5 million to $419 $4 million driven by PLO growth of $19 5 million to $233 8 million and inventory growth of $47 million.

$195 7 million.

The 9% PLO growth on both a total and same store basis reflects strong performance across our markets.

On slide 11 at 545 stores across 19 states are concentrated in large urban markets.

Texas survived our largest market with 247 stores, followed by Florida with 95 stores.

Tim Jugmans: Texas remains our largest market with 247 stores, followed by Florida with 95 stores. During the year, average loan increased 13% to $209, supported by higher gold prices and increased value of general merchandise. PLO composition continues to shift towards jewelry, now 68% of PLO, up 220 basis points. Jewelry inventory composition increased 310 basis points to 65%. This shift enhances our ability to capitalize on elevated gold prices through scrap sales, which contributed significantly to our 27% segment EBITDA growth. Slide 12 details US pawn finance performance. Merchandise sales of $117.3 million increased 6% overall and 5% same-store. Merchandise margin remained steady at 37%. Segment EBITDA of $55.2 million increased 27%, with margin expanding 250 basis points to 23%, driven by higher gross profit, including incremental scrap gross profit of $5.7 million, and disciplined expense management, with same-store expenses up just 3%.

The average line increased 7% to $209 supported by higher gold prices and increase value of general merchandise.

Hello composition continues to shift towards jewelry now, 68% of PLO up 220 basis points jewelry inventory compensation increased <unk> 10 basis points to 65% is shifting to us is our ability to capitalize on elevated gold prices for scrap sales, which contributed significantly to our 27%.

Segment EBITDA growth.

Slide 12 details U S pawn finished performance.

Merchandise sales of $117 $3 million increased 6% overall and 5% same store.

Merchandize margin remained steady at 37%.

Segment EBITDA of $55 2 million increased 27% with margin expanding 250 basis points to 23% driven.

Driven by higher gross profit, including incremental scrap gross profit of $5 $7 million and disciplined expense management with same store expenses up just 3%.

Turning to Latin America on Slide 13, fourth quarter revenues were $96 $9 million up 17%, earning assets of $129 $7 million increased 15% with PLO up 17% to $71 million in inventory up 12% to $59 six.

Tim Jugmans: Turning to Latin America on slide 13, fourth quarter revenues were $96.9 million, up 17%. Earning assets of $129.7 million increased 15%, with PLO up 17% to $70.1 million, and inventory up 12% to $59.6 million. Slide 14 shows our 815-store footprint across four countries. Mexico remains our largest international market with 622 stores. We opened 17 de novo stores in the quarter and acquired seven stores in Mexico. For the year, average loan size of $88 decreased 4% as reported, but increased 3% when adjusted for foreign exchange. Jewelry composition increased. PLO jewelry composition up 450 basis points to 41%. Inventory jewelry composition up 850 basis points to 39%. Slide 15 provides detailed metrics. PLO grew 17% with same-store growth of 9%. Merchandise sales increased 16% with same-store up 10%, and merchandise margin remained steady at 32%. Segment EBITDA of $14.2 million increased 18%, with margins improving to 15%.

Million.

Slide 14 shows our 815 store footprint across four countries, Mexico remains our largest international market with 622 stores. We opened 17 de novo stores in the quarter and acquired seven stores in Mexico.

For the year average line size of IDI dollars decreased 4% as reported but increased 3% when adjusted for foreign exchange.

Jewelry composition increased.

Hello, jewelry composition up 450 basis points to 41%.

Inventory is really compensation of 850 basis points to 39%.

Slide 15 provides detailed metrics PLO grew 17% with same store growth of 9%.

<unk> sales increased 16% with same store up 10% and merchandize margin remained steady at 32%.

Segment EBITDA of $14 2 million.

Increased 18% with margins improving to 15%.

Store expenses increased 19% driven by new stores, while our same store expenses increased 11%.

Tim Jugmans: Store expenses increased 19%, driven by new stores, while same-store expenses increased 11%. Slides 17 and 18 capture the exceptional transformation we've driven over the past five years. Since fiscal 2021, we've fundamentally transformed EZCORP's earnings profile. Net income has increased more than five times from $21 million to $110 million. EBITDA has grown nearly three times from $68 million to $191 million. Revenue has grown from $729 million to $1.3 billion, while EBITDA margin has expanded from 19% to 15%. On slide 18, PLO has grown from a pandemic low of $176 million to today's record $304 million. The portfolio has shifted towards jewelry, now representing 62% of PLO versus 54% in fiscal 2021, contributing to our high average loan size of $145 compared to $114 in fiscal 2021. Slide 19 illustrates our inventory management evolution.

Slide 17, and I think capture the exceptional transformation, we have driven over the past five years.

Since fiscal 2021 were fundamentally transform easy copes earnings profile net income has increased more than five times from $21 million to $110 million.

As drive nearly three times from $68 million to $191 million revenue has grown from $729 million to $1 3 billion, while EBITDA margin expanded from 19% to 15%.

On slide 18, PLO is growing from a pandemic a low of $176 million today's record $3 4 million.

The portfolio has shifted towards jewelry now represented 62% of PLO versus 54% in fiscal 2021.

Contributing to our high average loan size of $145 compared to $114 in fiscal 2021.

Slide 19 illustrates our inventory management evolution inventory is growing to $245 million with IH general much rise up slightly to two 6% of inventory.

Tim Jugmans: Inventory has grown to $245 million, with aged general merchandise up slightly to 2.6% of inventory. Inventory turns are 2.5x, partially affecting higher jewelry balances. While inventory as a percentage of PLO is growing, we remain comfortable with the metrics given our increase in purchasing and the impact of our 10-month layaway program. Slide 20 illustrates our merchandise sales evolution over the past five years. Merchandise sales grew 69% from $426 million in fiscal 2021 to a record $721 million in fiscal 2025, while merchandise margin normalized from 42% in fiscal 2021 to 35% in fiscal 2025, within our targeted range of 35% to 38%. Merchandise sales gross profit grew 36% from $185 million to $251 million. On slide 21, our strategic investments continue delivering strong returns.

Inventory turns at two five times, partially reflecting higher jewelry balances.

While inventory as a percentage of payroll always growing we ranked comfortable with a metrics given our increase in purchasing and the impact of about 10 months of highway program.

Slide 20 illustrates our merchandize sales inflation over the past five years merchandise sales grew 16, 9% from $426 million in fiscal 2021 to a record $721 million in fiscal 2025.

While merchandize margin normalize from 42% in fiscal 2021% to 35% in fiscal 2025.

With that target a range of 35% to 38%.

<unk> gross profit grew 36% from $185 million to $251 million.

On slide 21, our strategic investments continue delivering strong returns.

Cash converters internationalized returned $14 2 million in dividends over five years of which we have used $10 $7 million to increase our ownership to 43, 7%.

Tim Jugmans: Cash Converters International has returned $14.2 million in dividends over five years, of which we have used $10.7 million to increase our ownership to 43.7%. During Q1 FY2026, we committed to maintain our ownership percentage by investing an additional $5.7 million through a rights offering, while also receiving an additional $1.8 million dividend. Our investment in Simple Management Groups through founders is performing well. SMG generated $171 million in revenue for the 12 months ended 30 September 2025, up 23%, with gross profit of $88 million, up 18%. Our preferred equity structure provides a 20% cumulative preferred return plus 50% participation in distributions above certain thresholds. Looking ahead to fiscal 2026, we remain focused on growing PLO, improving inventory efficiency, and scaling operational best practices across all geographies. We are very pleased with expense management to date.

During quarter, one FY 'twenty six we committed to maintain our ownership percentage by investing an additional $5 7 million.

Or a rights offering.

While also receiving an additional $1 $8 million dividend.

Our investment in simple management groups, who founded is performing well.

SMG generated $171 million in revenue for the 12 months ended September 32025 up 23% with gross profit of $88 million up 18%.

Our preferred equity structure provides a 20% cumulative preferred return plus 50% participation in distributions above certain thresholds.

Looking ahead to fiscal 2026, we remained focused on growing PLO, improving inventory efficiency and scaling operational best practices across all geographies.

We are very pleased with expense management to date. However, we do expect a sequential increase in total expenses through the year.

Tim Jugmans: However, we do expect a sequential increase in total expenses through the year. Based on the current gold prices remaining steady, we expect similar scrap sales gross profit as we have seen in the last two quarters to continue into Q1, and then for scrap margins to decline sequentially during FY 2026 back to normal levels. Our M&A pipeline remains very active, with multiple opportunities in various stages of due diligence. The fragmentation in our industry continues to create attractive acquisition opportunities where we can leverage our operational expertise and robust balance sheet. Each opportunity is evaluated through our rigorous framework, focusing on strategic integration, complexity, and return on invested capital. Back to you, Lachlan, for closing remarks. Thanks, Tim. Fiscal 2025 was a defining year for EZCORP.

Based on the current gold prices remaining steady we expect similar scrap sales gross profit as we have seen in the last two quarters to continue into quarter, one and then for scrap margins decline sequentially during FY 2006 back to normal levels.

Our M&A pipeline remains very active with multiple opportunities in various stages of due diligence.

The fragmentation and trade continues to create attractive acquisition opportunities, where we can leverage our operational expertise and robust balance sheet.

Opportunities are evaluated through our rigorous framework focusing on strategic fit integration complexity and return on invested capital.

Back to your Lucky for closing remarks.

Thanks, Tim.

2025 was a defining year for easy Coke, we delivered record financial performance improved scale continued a relentless focus on operational discipline by focusing on our people and our customers and enhanced our balance sheet with the largest financing in our history.

Tim Jugmans: We delivered record financial performance, improved our scale, continued our relentless focus on operational discipline by focusing on our people, our customers, and enhanced our balance sheet with the largest financing in our history. Thank you to our 8,500 team members. Your dedication to serving our customers with respect has driven these exceptional results. We are very well positioned with a highly resilient, exciting growth platform to capitalize on organic and inorganic opportunities to drive further superior returns for our shareholders. With that, we'll open the call to questions. Operator.

Thank you to our 5000 team members.

Dedication to serving our customers with respect has driven these exceptional results.

We are very well positioned with a highly resilient exciting growth platform to capitalize on organic and inorganic opportunities to drive further superior returns for our shareholders with that we will open the call to questions.

Later.

Ladies and gentlemen, if you have a question or comment at this time. Please press star one one on your telephone keypad.

Operator: Ladies and gentlemen, if you have a question or comment at this time, please press star 11 on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press the pound key. Again, if you have a question or comment at this time, please press star 11 on your telephone keypad. Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of Brian McNamara from Canaccord Genuity. Your line is open.

If your question has been answered or you wish to remove yourself from the queue simply press the pound key.

Again, if you have a question or comment at this time. Please press star one one on your telephone keypad.

Please standby, while we compile the Q&A roster.

Our first question or comment comes from the line of Brian Macnamara from Canaccord Genuity. Your line is open.

Hey, good morning, guys. Thanks for taking my questions. Congrats on another strong year here.

Brian McNamara: Hey, good morning, guys. Thanks for taking the question. Congrats on another strong year here.

Thanks, Brian.

So.

We get a lot of questions on gold prices I'm sure you guys through how whats kind of your message to it.

Tim Jugmans: Thanks, Brian.

Brian McNamara: We get a lot of questions on gold prices. I'm sure you guys do. What's kind of your message to investors and prospective investors, maybe assuming that a lot of this benefit is maybe short-lived? Obviously, nobody can predict what the price of gold will do. From a managing-the-business function, should investors worry about a potential decline in gold price? Can you kind of frame that for us?

Investors and prospective investors.

Maybe assuming that a lot of this benefit is maybe short lived in.

Nobody can predict what the price of oil will do but from a from a managing the business function.

<unk> should.

Should investors worry about a potential decline in gold price or how should we can you kind of frame that for us.

Yes look I think Tim you can comment as well, but I think we run this business.

Lachlan Given: Yeah. Look, I think, Tim, you can comment as well. I think we run this business over, obviously, many, many years in very different gold environments. A rising gold price is clearly helpful. I think we had some real tailwind in this year's numbers, clearly from scrap gross profit. Ignoring gold, we still had a phenomenal year. I think the core business across all that we're doing, whether it's lending, sales, the business is doing extremely well. I think the rising gold price just added to that performance. I think we've spoken to you a lot in the past about the fact that these are short-term loans that we offer, and so we're able to adjust very quickly no matter what gold does.

Obviously, many many years in very different gold environment.

I think a rising gold price is clearly helpful.

I think we had some real world tailwind in this year's numbers clearly from from scrap gross profit, but ignoring gold, we still had a phenomenal year.

I think the core business across all that we're doing whether it's lending style.

Business is doing extremely well.

The rising gold price just just added to that performance.

I think we've spoken to you a lot in the past about the fact that these are short term loans that we offer and so we're able to adjust very quickly.

No matter, what no matter what <unk> does so I think when we speak to investors. We obviously say that a large part of our PLO and inventory gold in a rising gold price is helpful.

Lachlan Given: I think when we speak to investors, we obviously say that a large part of our PLO and inventory is gold, and a rising gold price is helpful. That said, a change in that, clearly a very significant change, quickly, you would have some short-term issues. I think in the long term here, no matter what gold is doing, we have a very resilient business model that we can adapt very quickly to a change in price in gold. Tim, I don't know if you'd add any more to that.

<unk>.

Changing that clearly a very significant change quickly.

You would have some short term issues, but I think in.

In the long term.

No matter what goal is doing we have a very resilient business model that we can adapt very quickly to a change in price in gold.

Tim I don't know if you'd add any more to that.

Yes, I think I think we have to remember that this business is driven from a CLO perspective, and you're saying well.

Tim Jugmans: Yeah. I think we have to remember that this business is driven from a PLO perspective. You're saying, well, the customer is in need for cash, and that need for cash ignores gold price. Just because the gold price is up or down doesn't change the customer's need for cash. It just changes what they're bringing in. I think that's just an important part of the business to remember, that just because gold price has doubled doesn't mean our average loan size has doubled in the past year. The average loan size is where the demand is for the product. It's not in the gold price.

The customer has a need for cash and so is that need for cash is ignored as gold price. So just because the gold prices up or down it doesn't change the customers' need for cash at this.

Changes what they bringing in.

And so I think that's just an important part of the business you remember that just goes gold prices doubled doesn't may now average loan size is doubled in the past year and so the average loan size is where the demand is for the product that's not in the gold price.

Got it that's really helpful. Secondly.

Secondly on Latam, obviously, it really significantly improved performance there over the last couple of years like what inning are we in there in terms of.

Brian McNamara: Got it. That's really helpful. Secondly, on Lachlan, obviously, a really significantly improved performance there over the last couple of years. What inning are we in there in terms of improving that business? It seems like a lot's been done over the last couple of years.

Improving that business. It seems like a lot has been done over the last couple of years.

Remember alma cricket.

Nope I spoke loud bronco.

Lachlan Given: Remember, I'm a cricketer, not a baseball player, Brian, so I'll take my best crack at that. Look, I think we have built really fantastic momentum, particularly in Mexico in the last, call it, year and a half. It's still early down there. When Blair walks into a store, there's opportunity every single time. I think down in Latin America, it is still early in the innings. We have got a lot to do in gold and jewelry, generally. I think historically, we've been a GM business down there, particularly in Mexico. Our teams are learning how to lend a lot better on jewelry. I think there's some real upside around that. I think digital adoption down there is early. We're seeing some real momentum now in online payments and extensions. I think we can do more there.

I'll try my best.

Best crack at that.

Look I think we have built really fantastic momentum, particularly in Mexico in the last call it year and a half.

But it's still it's still early downtime when Blair walks into a store there is opportunity every single time.

And so I think I think down in Latin America. It is still early in the evening.

We have got a lot to do in gold and jewellery generally I think historically, we've been a GM business down there, particularly in Mexico and so our teams are learning how to blend a lot better on jewelry, So I think theres real upside around that.

I think digital adoption down there is early.

And real momentum now in online payment as an extension, but I think we can.

Can do more there.

So I think.

I think youre right to point out the momentum because it.

Lachlan Given: I think you're right to point out the momentum because every quarter, we're seeming to deliver just fantastic results. It's not just the key metrics down there. I think what's really important is you're seeing a truly balanced business. You're seeing the metrics move strongly, but you're seeing them move in the right way. For example, PLO is growing faster than inventory. Age looks good, and so turns look good. I think it's growing well in a balanced way. I think there's still plenty to do down there. I think we've got a big M&A runway down there. I think we're well capitalized to take advantage of that. There's plenty to do on that front.

Every quarter were seeing to deliver just fantastic results and it's not just the key metrics down there I think what's really important is you're seeing a truly balanced business that youre seeing the metrics move strongly but you're saying the mers in the <unk> for example, PLO was growing faster than inventory and.

H I G I it looks good and so it turns look good and so I think it's.

It's growing well, it's bad in a balanced way. So I think there's still plenty to do down there I think we've got a big M&A runway down there I think we're well capitalized to take advantage of that.

So there's plenty to do on that front as well as you've seen us build 40 stores last year I think we will.

Lachlan Given: As well as you've seen us build 40 stores last year, I think while we don't sort of commit to a number, our intention is to grow our de novo business down there at a similar rate, depending on what happens on the M&A front. I think on all fronts in Latin America, we have got a lot more to do, but we're very pleased with the momentum.

While we don't sort of commit to a number our intention is to grow at de Novo business down there at a similar rate pending what happens on the M&A front.

On all fronts in Latin America, we have got a lot more to do.

Very pleased with the momentum.

Got it and then just finally on the M&A pipeline.

Brian McNamara: Got it. Just finally, on the M&A pipeline, last quarter, it sounded like you had a pretty robust pipeline. You acquired some stores in Q4. It sounds like you acquired some stores subsequent to the end of the quarter. How does that look? How should investors think about M&A as it relates to 2026? Thank you, guys.

Last quarter. It sounded like you had a pretty robust pipeline you did some required some stores in Q4. It sounds like you acquired some store subsequent to the end of the quarter. How does that work how does how should investors think about <unk>.

M&A as it relates to 2026.

Hey, guys.

Thanks, Bob as you point out it was due to placing to see momentum there.

Lachlan Given: As you point out, thanks, Brian. As you point out, it was super pleasing to see the momentum there. As everyone knows, M&A by nature is opportunistic. You can never kind of plan for when it comes together. Across the board, Latin America, we did a really good acquisition down there in the quarter. Subsequent to that, we've done some really exciting stuff in Texas in October. I think things are coming together there. As I said, we have a lot more to do. The pipeline remains extremely robust. I think, as we say every quarter, we do this in a disciplined way. Even though we've got plenty of cash, we look at this on a return on invested capital basis, and whatever's best for our shareholders.

As everyone knows M&A by nature is opportunistic so you can never kind of plan to when it comes together.

Across the board.

In America, we did a really good acquisition down there in that in the quarter.

Subsequent to that we've done some really exciting stuff in Texas in October.

I think.

Things are coming together, there, but as I said, we have a lot more of the pipeline remains extremely robust.

But I think as we say every quarter, we do this in a disciplined way, even though we've got plenty of cash.

We look at this on a return on invested capital basis, and whatever is best for our shareholders. So while while the pipeline is robust I think youre going to see more of a sign from us thats going to be done in a disciplined way and and.

Lachlan Given: While the pipeline is robust, I think you're going to see more of the same from us. It's going to be done in a disciplined way, and we are excited about what we've managed to do in the last three or four months.

We are excited about what we've managed to do in the last three or four months.

Great. That's all I got thanks, a lot guys best of luck.

<unk> talked a bit later.

Brian McNamara: Great. That's all I got. Thanks a lot, guys. Best of luck.

Thank you. Our next question or comment comes from the line of David Scharf from capital citizens capital markets. Your line is open.

Lachlan Given: Thanks, mate. Talk to you a bit later.

Operator: Thank you. Our next question or comment comes from the line of David Scharf from Citizens Capital Markets. Your line is open.

Hi, good morning, Thanks for thanks for taking my questions.

David Scharf: Hi, good morning. Thanks for taking my questions. Hey, just a couple here. First, focusing on Lachlan, I know there's always a lot of questions about just minimum wage, inflation, other dynamics within Mexico. I'm kind of wondering if you're seeing any impact on the ground in terms of pawn loan demand based on what's going on in the US remittance industry. I mean, we've seen a clear slowdown in money transfer volume based on immigration enforcement actions here. Are you able to ascertain whether or not that's actually increasing demand in store in Mexico and throughout, Lachlan?

Hey.

Just a couple here.

First focusing on Latam.

I know.

I know, there's always a lot of questions and purchase.

Minimum wage inflation other dynamics within Mexico.

Kind of wondering.

If you're seeing any impact on the ground in terms of <expletive> loan demand based on.

What's going on in the U S remittance industry I mean, we've seen a clear slowdown.

In money transfer volume based on immigration enforcement actions here are you able to ascertain whether or not that's actually increasing.

Demand in store in Mexico and throughout Latam.

Well I think it's a good question, we get asked this quite a bit.

Lachlan Given: Well, I think it's a good question. We get to ask this quite a bit. Our evidence is more anecdotal because we're not doing any money transfer. You're seeing very robust lending in our Latin American business. Whether that's as a result of the money transfer business or other factors, I think the good news for us is that lending across all regions in that part of the world are very strong. Tim, I don't know if you'd add any more to that.

Our evidence is more anecdotal because we're not we're not doing any money transfer, but youre seeing very robust lending.

Now Latin American business, and whether that's as a result of.

The money transfer business or other factors I think the good news for us is that lending across all regions.

In that part of the world are very strong.

<unk>.

Tim I don't know if you'd add any more of that.

Okay.

And it also is some of this is short term.

Tim Jugmans: It also is, some of this is short-term. When these money things change, some months it's a little bit higher than others, and it does move over the place. It does move between different countries that we've seen. Just because in Mexico it's slightly lower doesn't mean the other Latin American countries we are operating in are lower as well. It is something that we do look at, but there's not an immediate correlation there. We know that the demand for the loan product has been strong in Latin America, especially over the last 18 months. A lot of that is really to do with operational changes that we've made.

<unk>.

When.

When these money things change some months, there's a little bit higher than others and so it doesn't move all over the place and it does move between.

Different countries that we've seen so just because in Mexico, it's slightly low it doesn't mean the other Latin American countries, we are operating in.

Our lower as well.

And it's something we do look at but there's not an immediate correlation there.

But we know that the demand for the loan product has been strong in Latin America.

Especially at <unk>.

Over the last 18 months, but a lot of that is really to do with operational changes that we've made.

Got it.

I appreciate the color.

Hey, just quickly shifting to the U S. I appreciate the color.

David Scharf: Got it. No, I appreciate the color. Just quickly shifting to the US, I appreciate the previous comments about gold prices and ultimately the impact on borrowing demand. Given that half of US revenue growth is obviously, as you noted, related to scrap sales this past quarter, is there any kind of benchmark for US top-line growth you'd be willing to offer up for fiscal 2026, just given kind of the scrap and underlying gold enforcement?

The previous comments about.

Gold prices and ultimately the impact on.

And borrowing demand but.

Given that half of U S revenue growth was obviously as you noted related to scrap sales. This past quarter is there any.

Kind of benchmark.

Yes.

For U S top line growth you'd be willing to offer up for fiscal 'twenty six.

Just given the.

Kind of the scrapping.

Underlying we've done we don't Guy.

We don't guide all I can tell you is that our intention and our objective is to continue with robust revenue growth.

Lachlan Given: Yeah, we don't guide.

David Scharf: Just making.

Lachlan Given: We don't guide. All I can tell you is that our intention and our objective is to continue with robust revenue growth. I think your point's well made that scrap gross profit was a significant part of particularly the last couple of quarters. We still see real opportunity in our business outside of just that. I'd say to you, we're not going to guide specifically, but our objective is to continue this relatively robust revenue growth, and particularly profit growth.

I think your point's well made that scrap gross profit.

<unk> was a significant part of particularly the last couple of quarters.

But we still see real opportunity in our business outside of just that so.

We're not.

We're not going to guide specifically, but our objective is to continue this relatively robust revenue growth, particularly.

Particularly profit growth.

Okay fair enough thanks very much.

Thanks, David.

David Scharf: Fair enough. Thanks very much.

Thank you. Our next question or comment comes from the line of Kyle Joseph from Stephens. Mr. Joseph Your line is open.

Lachlan Given: Thanks, David.

Operator: Thank you. Our next question or comment comes from the line of Kyle Joseph from Stephens. Mr. Joseph, your line is open.

Hey, good morning, guys. Thanks for taking my questions Congrats on nice quarter and year.

Kyle Joseph: Hey, good morning, guys. Thanks for taking my questions. Congrats on a nice quarter and year. I just wanted to—most of my questions have been taken. If you don't mind, kind of walk us through the loyalty program and some of the marketing efforts, and walk us through some of the results you're seeing in those in terms of whether it's increased foot traffic or increased transactions per consumer.

I just wanted to know.

Most of my questions have been taken but if you don't mind kind of walk us through your the loyalty program and some of the marketing efforts and any walk us through.

Some of the some of the results Youre seeing in those in terms of whether it's increased foot traffic or any.

Transactions per consumer.

Thanks, Carl Good morning, Mike Yeah look I think this 2026 is a big year for our marketing.

Lachlan Given: Thanks, Kyle. Good morning, mate. Yeah, look, I think this 2026 is a big year for our marketing effort. I think it's sort of the culmination in a couple of years of real focus on what we're doing there, particularly digitally. You pointed out the rewards program. As we said in our opening remarks, we are now, across all stores, offering all of our inventory online, so consumers can see all that we're doing online and come into the stores and buy it. I think we're leading the industry in that area. We are now doing instant quotes online. If you've got an electronic good, we can give you a quote online for a loan or for a purchase. I think that's leading the industry. I think you're going to see us very, very active across social channels.

Yes.

I think it's sort of the culmination in a couple of years, a real focus on what we're doing particularly digitally.

So you pointed out the rewards program.

As we sit in our opening remarks, we are now across all stores.

Offering all of our inventory online so consumers can see all that we're doing online and come into the stores and bought I think we're leading the industry in that area. We are now doing instant quotes online. So if you've got an electronic goods.

We can give you a quote online for a loan or per purchase.

That's leading the industry I think youre going to see is very very active across social channels, we're already active across Youtube and Facebook and Tic Toc and Instagram.

Lachlan Given: We're already active across YouTube, Facebook, TikTok, and Instagram. I think you'll see some more focus, some more spend, particularly around video in those areas. We're having a lot of success with SEO/SEM in our digital marketing program. I think for the first time, we are now kind of entering a year where we're firing on all cylinders from a marketing perspective, built on all of these initiatives we've been talking about the last couple of years, but they've finally sort of launched, and we're ready to see the impact. Look, we're really excited about those things. We think it's both going to drive, as you say, traffic, but it's also what the customer wants. You can't pick where you're going to meet your customer. They pick where they want to meet you.

But I think youll see the more focused and more spend.

Particularly around video in those areas, we're having a lot of success with ACO with Ian.

And our digital marketing program. So I think for the first time, we are now kind of entering a year away with following on all cylinders from a marketing perspective.

Built on all of these initiatives, we've been talking about the last couple of years, but they finally sort of launched and we're ready to see the impact. So look we're really excited about those things we think it's going to drive as you say traffic.

It's also what the customer wants.

You kind of pick where you're going to meet your customer pick where they want to make you. So we want to be able to make them whether it's on the followed online in store and so we're providing all of these channels for the first time.

Lachlan Given: We want to be able to meet them whether it's on the phone, online, or in store. We are providing all of these channels for the first time across all that we're doing, and I think we genuinely lead the industry in that area. I think this is the first year that you're going to—that we're going to really be able to measure those benefits. In terms of the rewards program, it continues to build quite nicely. We are almost 7 million members now, I think, and it's sort of getting a bit more mature. I think we are now running really exciting, targeted marketing programs to those members, so we're learning much more about each member. We're using data to target them better to increase sales, increase turns, and increase margin.

Across all that we're doing and I think I think we genuinely lead the industry in that area.

So I think this is the first year that youre going to.

Really I'd be able to measure those benefits in terms of the rewards program. It continues to build quite nicely.

We are almost $7 million.

NIM is now I think.

And sort of getting a bit more mature.

We are now.

Running really exciting targeted marketing programs.

To those members. So we're learning much more about each member we're using data to target them better.

To increase sales increased 10 increase margin.

So I think it's a really good question and we're kind of quite excited about.

Lachlan Given: I think it's a really good question, and we're quite excited about that part of the business this year because I think this industry, generally, including us, have sort of ignored that part of the business for decades. I think customers have become much more savvy, particularly younger customers. I think EZ has taken a real position here to focus on this part of the business, hire a great team, and I'm hoping that this year, we're going to see some pretty strong results come out of those efforts.

About that part of the business this year, because I think this industry generally including us.

That's sort of ignored.

That part of the business for decades, and I think customers have become much more savvy.

Typically young customers and I think a.

He has taken a real position here too.

Focus on focus on this part of the business hired a great team and I'm, hoping that this year.

Let's say some pretty strong results come out of those efforts.

Got it really helpful. Thanks, Kaki and then just one follow up for me going back to the M&A pipeline you guys recently made an acquisition in the auto parts space just wanted to get a sense for how that's performing and if you have more.

Kyle Joseph: Got it. Really helpful. Thanks, Lachlan. Just one follow-up for me. Going back to the M&A pipeline, you guys recently made an acquisition in the auto pawn space. Just want to get a sense for how that's performing and if you have more appetite there. In terms of geography, should we think about your M&A pipeline kind of in existing geographies or willing to expand beyond those? Thanks.

Appetite there and then in terms of geography should we think about your M&A pipeline kind of any existing geographies are willing to expand beyond that.

So it's both good questions. Thank you call. So let me start with the second one on the M&A side look there's a lot to do in our existing markets.

Lachlan Given: Both good questions. Thank you, Kyle. Let me start with the second one on the M&A side. Look, there's a lot to do in our existing markets. I think we're certainly focused there. That said, we are always open to new markets, new geographies. With that, obviously, comes risk. We've got great existing teams in our existing markets. My own bias is to those markets. I just think it's less risk. We've got a better chance at strong execution. I think our bias is definitely to our existing markets, and we've got plenty to do there. That said, I think there are some new exciting markets that we can open up, and we're going to do that in a disciplined, not a casual way. I think really the answer to your question is first the existing markets and then maybe some new ones.

So I think.

We're certainly focused there that said we are always open to new markets new geographies.

But with that obviously comes with risk.

And we've got great existing teams in our existing markets. So my own bosses two to those market. So I just think it's less risk, we got better chance of strong execution.

So I think our bias is definitely to our existing markets and we got plenty to do there Bob that FID.

There are some new exciting markets that.

We can open up that we're going to do that in a disciplined.

Not a casual way so I think really the answer to your question is does the existing markets and there may be some new ones.

And then on the car lending business in Mexico has started well.

Lachlan Given: On the car lending business in Mexico, it started well. We are really firming up our processes around that product, whether it's underwriting or collections in the pawn lending business down in Mexico. I think we are now assessing how we're going to roll that out into our existing stores. I think it's becoming quite a large pawn product in the Mexican market around our competition. I think we've bought a really good, solid business to start with that's performing well. Now our team is assessing how quickly we roll that out, in which stores, in which markets in Mexico. I think 2026 should be a really interesting year for that business.

So we are.

We are really standing up all our processes around that product, whether it's underwriting whether it's collections.

In the in the pawn lending business down in Mexico, I think we are now assessing how we are going to roll that out into our existing stores I think it's becoming quite a large corn product in the Mexican market.

And our competition so.

We bought a really good solid business to start with.

Performing well and now our team is assessing how quickly we roll that out.

Which stores in which markets in Mexico, So I think 2026 should be.

A really interesting year for that for that business.

Great really helpful. Thanks for taking my question.

Thanks Carl.

Kyle Joseph: Great. Really helpful. Thanks for taking my questions.

Thank you. Our next question or comment comes from the line of Raj Sharma from Texas Capital. Mr. Sharma. Your line is open.

Lachlan Given: Thanks, Kyle.

Operator: Thank you. Our next question or comment comes from the line of Raj Sharma from Texas Capital. Mr. Sharma, your line is open.

Yes, Thank you for taking my questions.

<unk> results congratulations.

David Scharf: Yeah, thank you for taking the questions. Solid results, congratulations. My question was, all the digital initiatives that you have made to the business, are you seeing what changes are you observing in your business on these digital initiatives? Does it serve, is it serving a younger cohort that's more stressed, or are you doing more leeways as a result of all these initiatives? My question really is around, do you need to track economic indicators like delinquencies and credit card balances, or do you just see it clearly in your store traffic, online flow? There's a follow-on question. Thank you.

My question was are you all the digital initiatives.

You have made to the business are you seeing what changes are you observing.

<unk> business on the digital initiatives.

Does it sort of is it serving the younger cohorts thats more stressed.

Or or.

How are you doing more lay ways as a result of all these initial.

Initiatives.

And my question really is.

Do you do you need to track.

Economic indicators like delinquencies and credit card balances or do you just see it clearly in your store traffic.

Online online flowed.

And.

Nash a follow on question. Thank you.

Thanks Raj look on the on the second question on the tracking of metrics, though Tim certainly looks at.

Lachlan Given: Thanks, Raj. Look, on the second question on the tracking of metrics, Tim certainly looks at macro metrics. I think our focus is really what we're doing, and that means our operating initiatives in the stores. That's where we focus. We look at the macro at times when we're asked, but I think we can't control that. What we can control is what we're doing for our customers in the stores. That's really our focus. On the digital initiatives, you're seeing genuine change as a result of those initiatives. If you look at extensions and paying loans online, it's just sort of phenomenal growth as to our customers who are wanting to do that.

Macro metrics, but I think our focus is really what we're doing and that means our operation operating initiatives in the store. That's why we focused we look at the macro or is it at times. When we're asked but I think we cant control what we can control is what we're doing for our customers in the stores. So that's that's really off.

<unk>.

On the digital initiatives.

<unk> seen genuine change.

As a result of those initiatives if you look at extensions.

And paying loans online.

Sort of phenomenal growth is to our customers who are wanting to do that.

That's not only.

Exemplary customer service, but it is making our stores more efficient so that our people and our stores are actually looking out to customers on the lending on the sales side, rather than just extending loans.

Lachlan Given: That's not only exemplary customer service, but it's making our stores more efficient so that our people in our stores are actually looking after customers on the lending and the sales side rather than just extending loans. I think you can see very, very high growth in those metrics where people are taking that option to pay or extend online. That's sort of one of the digital initiatives that's really changed significantly in the last couple of years. On the other digital initiatives, obviously, you've got the loyalty program, and we think that that's very, very helpful in us growing market share. I think that digital initiative has been super important. Really just your core website, so that's social marketing, paid search marketing. I think we're gathering more and more customers across the regions in which we're operating the new way.

So I think you can see very very high growth in those metrics, where people are taking that option to pay or extend online.

One of the digital initiatives that it's really changed significantly in the last couple of years.

And then on the other digital initiatives, obviously, you've got the loyalty program and we think that that's very very helpful. In us growing market share.

That digital initiatives has been Super important and then really just your core website does that social marketing.

Search marketing I think we're just gather.

Gathering more and more customers across the regions in which we're operating the new way it used to be that you would just put up a big sign that said pawn and and you had got good customer service side, where the two ways you'd marketing push outs I think now that you have.

Lachlan Given: It used to be that you would just put up a big sign that said pawn, and you had good customer service. They were the two ways you'd market in a pawn shop. I think now you've just got to be a lot more diverse than that because that's where you're going to meet your customers, whether it's through social, whether it's paid search, whether it's SEO. I think you've got to be doing all these things to ensure that your customer base is growing. I think customer growth is an obvious outcome from these digital initiatives, I think, making our stores more efficient, giving our people more time to serve our customers instead of doing the bland kind of loan extensions or loan payments.

Just going to be a lot more diverse than that because thats, where youre going to major customers, whether it's through social whether it's paid search whether its ACO.

I think you've got to be doing only things to ensure that your customer base is growing so look I think the customer growth is an obvious.

Isn't obvious.

Outcome from these digital initiatives, I think making our stores more efficient so giving our people more time to serve our customers instead of doing the blend kind of loan extensions of loan payments and I think customer loyalty and retention through the rewards program is the other major outcome here from from concentrating on these digital initiatives.

Lachlan Given: I think customer loyalty and retention through the rewards program is the other major outcome here from concentrating on these digital initiatives.

Got it got.

Got it that's that's very helpful. Very descriptive. Thank you and then just one other question is.

David Scharf: Got it. Got it. That's very helpful, very descriptive. Thank you. Just one other question is, in the US pawn side, the PLOs were up 9%. The inventory was up more. Inventory turnover was down. Can you explain the inventory was up more than the PLO growth? Is that leeways? Is that?

In the U S pawn side.

<unk> were up.

9% of the inventory was up more inventory turnover was down is that can you explain the inventory was up more than the PLO growth and is that lay ways is that.

Yeah, It's a good question that one.

I would say to you that we're still happy with these metrics.

Lachlan Given: It's a good question, that one. I would say to you that we're still happy with these metrics, and that what's driving that is partly doing more purchases. It's partly doing more longer-term leeways. I would say an opportunity for us is to increase turns. We've got various operating initiatives in place, which we started towards the end of the year and going into the new year, where we are designing bigger, better incentive programs for our store staff to sell more. We are putting more talent into this function, which is the selling function. I think EZ has always been a fantastic lender first, and I think our current team has taken a more balanced approach to that. It always starts with the loan, clearly, but you have to flush that inventory and flush it quickly.

And what's driving that is partly doing more purchases.

It's partly doing more longer term, but I would say, it's an opportunity for us is to increase turns so we've got various operating initiatives.

In place, which we started towards the end of the year and going into the new year, where we did.

Designing.

Bigger better incentive programs for our store staff to sell more.

We are putting more talent into dysfunction, which is the selling function I think easy has always been a fantastic Linda first.

And I think I think.

Our current team has taken a more balanced approach to that it always starts with the loan clearly, but you have to flush that inventory and flush. It quickly. So look I think you point out. It is it is a metric that is an opportunity for us I think there is good reason for inventory growing the way it's been growing.

Lachlan Given: I think you point out it is a metric that is an opportunity for us. I think there's good reason for inventory growing the way it's been growing. I think we have got initiatives in place for 2026 where we want to improve those turns.

I think we have got initiatives in place for 2026, where we want to improve those tons.

I think also regarding bringing up that inventory increase.

David Scharf: I think also remembering that inventory increase, a majority of that is jewelry. If we wanted to tomorrow go scrap a whole lot and improve that turnover, we could. We see that selling that gold in the stores is an important part of the long-term growth of the stores. You're selling it back to the neighborhood, and our focus is on the long term, not a short-term gain. You'll see that inventory growing a little bit more just because we have more jewelry, and that jewelry price, that gold price, has obviously significantly increased.

Majority of that is jewelry. So if we wanted to tomorrow goes scrap a whole lot and improve that turnover we could.

But we see that selling that goes in the stores is an important part of our long term growth of the of the stores, so you're selling it back to the neighborhood.

And so that's our focus is on the long term and not a short term gain.

And so youll see.

Is.

That inventory growing a little bit more just because we have more jewelry and that jewelry price.

Gold price and obviously significant rate increased.

Yeah.

Got it.

It's not necessarily a concern for you more of an opportunity and it reflects more of a gold price rise.

Lachlan Given: Right.

David Scharf: Yeah.

Lachlan Given: Got it.

David Scharf: It's not necessarily a concern for you, more of an opportunity and reflects more of a gold price rise and increased gold jewelry being taken in.

And an increase.

Jewelry.

Being taken in.

Correct. So jewelry, obviously sales are a little bit slower right. That's why the inventory turnover was down obviously with the Gulf quickly rising price to lots of people will come in and sale of gold more than the usual period, so that drives.

Lachlan Given: Correct. Jewelry obviously sells a little bit slower, right? That's why the inventory turnover is down. With the quickly rising gold price, lots of people come in and sell their gold more than in the usual period. That drives the inventory as well. We've also talked about our 10-month leeway program that is just for the first time in Q4 lapsed from last year. It's not quite apples to apples yet, but over the year, we'll start seeing a more like-for-like comparison.

Inventory as well and then we've also talked about out 10 months lightweight program that is just for the first time.

And colorful left from last year, so, it's not quite apples to apples yet.

But.

Over the year, we will stop.

Start saying.

And more lots of lot comparison.

Got it. Thank you. Thank you for taking the questions again, great great job.

David Scharf: Got it. Thank you. Thank you for taking the questions. Again, great job.

Hey, congratulations.

I'll take it offline thanks.

Lachlan Given: Thanks, Raj.

David Scharf: Congratulations. Yeah, I'll take it offline. Thanks.

Our next question or comment comes from the line of Andrew Scott from Roth capital markets.

Operator: Thank you.

Lachlan Given: Thank you for taking the question.

David Scharf: Next question or comment comes from the line of Andrew Scutt from Roth Capital Markets. Mr. Scutt, your line is open.

Your line is open.

Hey, good morning, guys and thank you for taking my question and then on the strong results.

Kyle Joseph: Hey, good morning, guys. Thank you for taking my question. On the strong results, most of my questions have been answered. Just one quick one from me. In recent months and weeks, we've heard that the US consumer has been a little bit constrained. We're also going through a long government shutdown. Have your store managers in the US seen any change in consumer behavior, maybe a different profile of customer coming in store?

My questions have been answered so just one quick one for me.

In recent months and weeks.

<unk> heard that the U S consumer has been a little bit constrained we're also going through.

A long government shutdown had your store managers in the U S seen any change in consumer behavior or maybe.

Different profile of customer coming in store.

Look thank you Andrew I think.

Lachlan Given: Thank you, Andrew. I think we are certainly seeing, as you can see from the results, strong demand for the loan product in our US stores. What that is a result of, I can't really comment whether it's government shutdown, whether it's difficulty in getting loans from alternative providers. We are seeing the customer continue to be under pressure. I think you can see that in the US in our really strong lending profile. We're also doing a good job on the sales side. I think the business is firing on all cylinders. To your specific question on government shutdown, all I can point you to is our lending results, and they're robust. Maybe it is part of the situation.

Look we are certainly seeing as you can see from our results strong demand for loan product in our U S stores.

What that is a result of I can't really comment whether it's government shutdown, whether its difficulty in getting loans from alternative providers, but.

We are seeing the customer continue to be under pressure.

And I think you can see that in the U S. Now in a really strong lending profile. We're also doing a good job on the style thought so I think the business is firing on all cylinders.

Specific question on the government shutdown.

All I can point you to is al is that lending is that lending results and they are robust.

It is part of that might be it is part of the situation.

Great well, thanks for the detail and congrats again on the strong results.

David Scharf: Great. Well, thanks for your detail, and congrats again on the strong results.

Thanks, Andrew.

Thank you I'm showing no additional questions in the queue at this time I would like to turn the conference back over to Mr. Mark D. Gibson for any closing remarks.

Lachlan Given: Thanks, Andrew.

Operator: Thank you. I'm sure no additional questions in the queue at this time. I'd like to turn the conference back over to Mr. Lachlan Given for any closing remarks.

Thank you everyone for joining it was obviously a phenomenal year for us.

Lachlan Given: Thank you, everyone, for joining. It was obviously a phenomenal year for us. We're very proud of the results. We're very grateful to our 8,500 staff members for delivering these results. We're also very grateful for everyone's support here on the call. Look forward to talking to you all more through the course of the next day and week. Thanks for joining.

Very proud of the results were very grateful to the half thousand staff members for delivering these results and we're and we're also very grateful for everyone's support here on the call. So look forward to talking to you all more through the course of the next day and thanks for joining.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program you may now disconnect everyone have a wonderful day.

Operator: Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.