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Dear Members of the Board and Management,
As long-term shareholders of EZCORP (NASDAQ:EZPW), and owners of over 1.5% of the company's outstanding shares, we write to urge the Board to immediately authorize and begin executing on a $100 million share repurchase program.
The company raised $300 million in part to settle the convertible notes in cash. Instead, management opted to settle entirely in equity in Q4 2024, assuming the convertible note would remain out of the money. As the stock moved higher, this miscalculation resulted in unexpected and avoidable dilution—despite the company having both the intent and resources to avoid it. This misstep should now be addressed through a meaningful and accretive share repurchase.
A buyback program is the clearest way to re-establish credibility—not only with shareholders, but also with employees (many of whom are stakeholders), analysts, and the broader investment community, all of whom are increasingly questioning the company's capital allocation discipline.
We previously urged the company in December 2022 to begin executing on a $200 million buyback over five years when the stock was trading at just $8.00 per share1. At that valuation, aggressive repurchases would have been extremely accretive. Instead, EZCORP has repurchased only $33 million in stock over 2.5 years—missing a clear, high-return opportunity. We now face a similar setup—but with stronger earnings momentum, a fortified balance sheet, and even more excess cash—much of which was explicitly earmarked for shareholder value preservation. EZCORP cannot afford to make the same mistake twice.
Today, EZPW trades at approximately 4.5x LTM Adj. EBITDA, adjusting for its valuable minority stakes in Simple Management and Cash Converters International2. By contrast, FirstCash (FCFS) trades at over 12x EBITDA—despite EZCORP's more focused strategy and operational momentum. The disparity is glaring and reflects a serious credibility gap with the market—one that can only be resolved through meaningful, shareholder-aligned action.
Posted In: EZPW
