EZCORP expands Mexican footprint with 40-store acquisition

Published 18/06/2025, 13:38
EZCORP expands Mexican footprint with 40-store acquisition

AUSTIN, Texas - EZCORP, Inc. (NASDAQ:EZPW), a pawn store operator with a market capitalization of $732 million and strong financial health according to InvestingPro analysis, has acquired 40 pawn stores across 13 Mexican states, the company announced Wednesday in a press release.

The acquired stores, operating under the Monte Providencia and Tu Empeño Efectivo brands, offer traditional pawn loans and auto pawn transactions. EZCORP has also taken over management of seven additional Monte Providencia stores, which it plans to purchase in the coming months. The company’s strong liquidity position, with current assets exceeding short-term obligations by 4 times, supports its expansion strategy.

"The Monte Providencia acquisition realizes our strategic objective of geographic expansion, increasing our footprint by 40 stores in Mexico," said Lachie Given, Chief Executive Officer of EZCORP.

The acquisition expands EZCORP’s presence in the auto pawn segment, which the company described as a growing part of Mexico’s pawn industry that enables higher-dollar loan transactions and attracts new customers.

Following this acquisition, EZCORP now operates 1,332 pawn stores globally, with 787 locations in Latin America, including 602 in Mexico. The company’s revenue has grown by 8.14% over the last twelve months, with net income reaching $89.55 million.

EZCORP, formed in 1989, provides pawn transactions in the United States and Latin America, and sells pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers.

The company is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index.

In other recent news, EZCORP reported mixed results for the second quarter of 2025, with earnings per share (EPS) surpassing expectations at $0.34, compared to a forecast of $0.31. However, the company fell short of revenue projections, reporting $306.32 million against an anticipated $310.46 million. Despite the revenue shortfall, EZCORP achieved a record quarterly revenue of $318.9 million, marking a 12% increase year-on-year. Meanwhile, Kanen Wealth Management has urged EZCORP to initiate a $100 million share repurchase program, criticizing the company’s previous decision to settle convertible notes in equity as a misstep. Canaccord Genuity maintained a Buy rating for EZCORP, setting a price target of $24, and highlighted the potential for a stock buyback as a prudent use of capital. Additionally, BTIG initiated coverage with a Neutral rating, noting the company’s growth prospects through increased store counts and higher loan balances. EZCORP completed the retirement of its 2025 convertible notes, converting $97 million of the notes into 6.1 million shares of Class A Common Stock.

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