EZCORP Expands Global Pawn Footprint in Major Acquisition Deal

AUSTIN, Texas – January 05, 2026 – EZCORP, Inc. (NASDAQ:EZPW) has significantly broadened its international reach by acquiring a controlling interest in Founders One, LLC, a move that adds 105 pawn stores to its already extensive network. The transaction, finalized on January 2, 2026, expands EZCORP's operations into 12 additional countries and is poised to deliver an immediate boost to the company's bottom line.

The newly acquired stores, operated by Founders' subsidiary Simple Management Group, Inc. (SMG), do business primarily under the brand names “La Familia Pawn and Jewelry” and “CashWiz.” This strategic purchase solidifies EZCORP’s position as a dominant force in the alternative financial services industry, bringing its total store count to 1,488 locations across 16 countries.

A Strategic Consolidation in Alternative Finance

This acquisition represents more than just an increase in store count; it signals a significant strategic consolidation in the pawn lending market. By taking an 87.7% controlling interest in Founders One, which itself holds an 85.1% ownership of SMG, EZCORP is integrating a rapidly growing and profitable platform into its corporate structure.

Lachie Given, EZCORP's Chief Executive Officer, highlighted the multifaceted benefits of the deal. “We are very excited to announce the acquisition of one of the largest pawn broking platforms in North America,” Given stated. “This transaction expands our geographic footprint in attractive markets, including Florida and Puerto Rico, solidifies a proven long-term partnership with a strong management team, adds immediate earnings accretion to our financial results, and provides an exciting new platform for domestic and international growth.”

The move is a culmination of a relationship that began in October 2021, when EZCORP first made a preferred equity investment in Founders One. This long-term engagement suggests a deep familiarity and confidence in the operational capabilities of SMG and its leadership, headed by CEO John Thedford.

Unpacking the Financial Mechanics

The financial engineering behind the transaction is complex, designed to leverage existing investments while deploying fresh capital. EZCORP converted its pre-existing $45 million of preferred equity and $10 million of notes receivable in Founders One into common equity. An additional $9.4 million in cash was contributed from EZCORP’s own resources to secure the majority stake.

A key component of the deal is a new three-year, senior secured debt facility. EZCORP will provide SMG with $156.4 million in funding at an interest rate of 13% per annum. This new financing replaces SMG's prior third-party debt and other obligations, effectively bringing its debt structure in-house under EZCORP's control. While the 13% rate is substantial, it reflects the risk profile common in the alternative finance sector and creates a new revenue stream for the parent company.

The claim of “immediate earnings accretion” is substantiated by the strong performance of the acquired entity. Based on unaudited results for its 2024 fiscal year, Founders generated $147 million in revenue and $79 million in gross profit, marking impressive year-over-year growth of 34% and 29%, respectively. By consolidating these robust financial results, EZCORP anticipates an immediate positive impact on its overall earnings per share.

This major investment comes at a time of financial strength for EZCORP. The company reported record revenue of $1.3 billion for fiscal 2025, a 12% increase from the prior year, with net income surging 30% to $110.7 million. Its cash position was significantly bolstered by a $300 million senior notes offering in March 2025, providing the liquidity necessary for such a large-scale acquisition.

Serving the Underbanked Economy

At its core, this expansion is a direct response to the persistent global demand for alternative credit. EZCORP’s business model is explicitly focused on “satisfying the short-term cash needs of consumers who are both cash and credit constrained.” The acquisition of the La Familia and CashWiz stores deepens the company's penetration into markets with significant underbanked populations, particularly in Florida and Puerto Rico.

Pawn loans provide a vital source of immediate, non-recourse credit for individuals who may not have access to traditional banking services. By using personal property as collateral, customers can secure short-term cash without undergoing credit checks or risking damage to their credit scores. The acquired stores also engage in buying and selling pre-owned merchandise, contributing to a circular economy by extending the life of consumer goods.

The deal also highlights a sensitivity to local market needs and regulations. For instance, in Puerto Rico, the newly integrated stores offer not only traditional pawn services but also auto pawn and auto title loans, addressing a specific consumer demand within that territory's regulatory framework. Navigating the diverse legal and consumer protection landscapes across 16 different countries presents a significant operational challenge, but it also creates a high barrier to entry for potential competitors, protecting EZCORP's market share.

The expansion reinforces the essential, if often debated, role that alternative financial service providers play in the modern economy. For millions of individuals facing unexpected expenses or income shortfalls, these services represent a crucial financial lifeline. By scaling up its operations, EZCORP is betting on the continued necessity of this sector and its own ability to serve this resilient customer base effectively and profitably.