EZCORP Acquires Controlling Interest in Founders One, LLC, Expanding Its Footprint by 105 Pawn Stores Across 12 Countries

Rhea-AI Summary

EZCORP (NASDAQ:EZPW) acquired a controlling interest in Founders One, LLC, announced Jan 5, 2026, increasing its ownership to 87.7% and consolidating Founders' subsidiary Simple Management Group (SMG) which EZCORP now controls with 85.1% ownership.

EZCORP converted $45.0M preferred equity and $10.0M notes receivable to common equity, contributed $9.4M cash, and provided SMG a $156.4M three‑year senior secured facility at 13% per annum. Founders reported unaudited nine‑month 2025 revenue of $127M and gross profit of $66M. Post‑transaction EZCORP operates 1,488 pawn stores across 16 countries.

Positive

• 105 additional stores acquired across 12 countries
• EZCORP consolidated ownership at 87.7%
• SMG funding: $156.4M senior secured facility
• Founders nine‑month 2025 revenue: $127M and gross profit: $66M
• Total store footprint increased to 1,488 stores across 16 countries

Negative

• SMG financing carries 13% annual interest
• Transaction funded from EZCORP cash resources, reducing liquidity

News Market Reaction – EZPW

+0.80%

7 alerts

+0.80% News Effect

+12.2% Peak in 16 hr 1 min

+$10M Valuation Impact

$1.32B Market Cap

0.8x Rel. Volume

On the day this news was published, EZPW gained 0.80%, reflecting a mild positive market reaction. Argus tracked a peak move of +12.2% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $10M to the company's valuation, bringing the market cap to $1.32B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Acquired pawn stores: 105 stores Converted preferred equity: $45 million Converted notes receivable: $10 million +5 more

8 metrics

Acquired pawn stores 105 stores Founders/SMG footprint in U.S. and 11 other countries

Converted preferred equity $45 million Existing preferred equity converted to common equity in Founders

Converted notes receivable $10 million Notes receivable converted to common equity in Founders

Additional cash contribution $9.4 million Cash contributed at closing to increase Founders ownership

Debt facility to SMG $156.4 million at 13% p.a. Three-year senior secured facility replacing prior SMG debt

Founders 2024 revenue $147 million Full year fiscal 2024 revenue (unaudited)

Founders 2024 gross profit $79 million Full year fiscal 2024 gross profit (unaudited)

Total EZCORP stores 1,488 stores Post-transaction total across 16 countries

Market Reality Check

Price: $25.43 Vol: Volume 816,631 is below 2...

low vol

$25.43 Last Close

Volume Volume 816,631 is below 20-day average 1,321,758 (relative volume 0.62x) low

Technical Price $20.06 is trading above 200-day MA at $16.29 and 6.65% below the 52-week high

Peers on Argus

EZPW was up 3.3% pre-news while key peers were mixed: ECPG +2.64%, WRLD +0.32%, ...

EZPW was up 3.3% pre-news while key peers were mixed: ECPG +2.64%, WRLD +0.32%, but ATLC -1.59%, LX -3.86%, OPFI -1.34%, indicating a stock-specific move rather than a sector-wide trend.

Historical Context

5 past events · Latest: Dec 02 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 02	Digital product launch	Positive	+4.0%	Launch of Instant Quote tool to speed online valuations for electronics.
Nov 13	Earnings release	Positive	+1.9%	Record Q4 and full-year 2025 revenue, net income, and store growth.
Nov 13	Earnings date notice	Neutral	-3.3%	Announcement of timing and format for upcoming earnings release and call.
Aug 14	Digital platform launch	Positive	-0.3%	Launch of EZPAWN’s Online Shop for local secondhand shopping.
Aug 06	Investor conferences	Neutral	+4.6%	Planned participation in several investor events and roadshows.

Pattern Detected

Recent news and earnings headlines have generally seen positive or modestly positive price alignment, with only one notable divergence on a product launch.

Recent Company History

Over the last few months, EZCORP has emphasized digital tools and operational growth. In August 2025, it launched EZPAWN’s Online Shop, followed by the Instant Quote tool in December 2025, both aimed at enhancing customer engagement. Record fiscal 2025 results reported on November 13, 2025 highlighted strong revenue, net income, and store growth to 1,360 locations. The current acquisition, which brings EZCORP to 1,488 stores across 16 countries, builds directly on this expansion-focused trajectory and prior disclosed interest in Founders.

Market Pulse Summary

This announcement details EZCORP’s move to acquire a controlling interest in Founders One, convertin...

Analysis

This announcement details EZCORP’s move to acquire a controlling interest in Founders One, converting $55M of existing investments, adding $9.4M in cash, and extending a $156.4M senior secured facility at 13%. Founders contributed unaudited 2024 revenue of $147M and gross profit of $79M, and brings 105 pawn stores, lifting EZCORP’s footprint to 1,488 locations in 16 countries. Investors may track post-deal earnings contribution and integration progress.

Key Terms

preferred equity, notes receivable, senior secured debt facility

3 terms

preferred equity financial

"EZCORP has maintained a preferred equity investment in Founders since October 2021."

Preferred equity is a type of investment that sits between common stock and debt in a company's financial structure. It typically offers investors priority in receiving dividends and getting their money back if the company runs into trouble, making it somewhat safer than regular shares. Investors value preferred equity because it provides a steady income stream while still allowing some participation in the company's success.

notes receivable financial

"converted its existing $45 million of preferred equity and $10 million of notes receivable to common equity"

A note receivable is a written promise from a customer or borrower to pay a company a specified amount, often with interest, by a set date; think of it as a formal IOU recorded as an asset on the balance sheet. Investors care because notes receivable affect a company’s cash flow timing and credit risk—large or long-dated notes can signal stronger future cash but also greater risk of default, which influences valuation and liquidity.

senior secured debt facility financial

"entered into a three-year, senior secured debt facility to provide SMG $156.4 million"

A senior secured debt facility is a loan arranged for a company that is backed by specific assets and takes priority over other debts if the company can’t pay. Think of it like a mortgage on a house: the lender has first claim on the pledged property before others. Investors care because it lowers lender risk, affects how likely creditors recover money in distress, and influences a company’s borrowing cost and capital structure.

AI-generated analysis. Not financial advice.

AUSTIN, Texas, Jan. 05, 2026 (GLOBE NEWSWIRE) -- EZCORP, Inc. (NASDAQ:EZPW) (“EZCORP” or the “Company”), a leading provider of pawn loans in the United States and Latin America, announced today the acquisition of a controlling interest in Founders One, LLC (“Founders”). Founders, through its subsidiary, Simple Management Group, Inc. (“SMG”), led by CEO John Thedford, operates 105 pawn stores in the U.S. and 11 additional countries. The stores, which operate predominantly under the names “La Familia Pawn and Jewelry” and “CashWiz,” offer traditional pawn loans, buy/sell transactions, and, in Puerto Rico, auto pawn and auto title loans.

Lachie Given, Chief Executive Officer, stated: “We are very excited to announce the acquisition of one of the largest pawn broking platforms in North America. 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.”

EZCORP has maintained a preferred equity investment in Founders since October 2021.

At closing of the transaction on January 2, 2026, EZCORP converted its existing $45 million of preferred equity and $10 million of notes receivable to common equity in Founders and contributed an additional $9.4 million in cash, increasing its ownership in Founders and enabling Founders’ purchase of additional shares in SMG. Also associated with the transaction, EZCORP entered into a three-year, senior secured debt facility to provide SMG $156.4 million in funding at 13% per annum, replacing SMG’s third-party debt facility and debt owed to its shareholders and EZCORP. EZCORP funded the transactions out of its cash resources and now owns a majority 87.7% interest in Founders, which controls SMG with an 85.1% ownership interest. Accordingly, EZCORP will consolidate SMG’s financial results going forward, which will meaningfully contribute to the Company’s earnings.

Based on unaudited results for the nine months ended September 30, 2025, Founders generated revenue of $127 million and gross profit of $66 million. For the full year ended fiscal 2024 (unaudited), Founders generated revenue of $147 million and gross profit of $79 million, reflecting growth of approximately 34% and 29%, respectively, compared to fiscal 2023 (unaudited).

Following this transaction, EZCORP now operates a total of 1,488 pawn stores across 16 countries.

ABOUT EZCORP

Formed in 1989, EZCORP is a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index.

FORWARD LOOKING STATEMENTS

This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company's strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with pandemics. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

Follow us on social media:
Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZCORP Instagram Official https://www.instagram.com/ezcorp_official/
EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/
EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/

Investor Relations Contact:
Sean Mansouri, CFA
Elevate IR
EZPW@elevate-ir.com
(720) 330-2829

FAQ

What did EZCORP announce on Jan 5, 2026 regarding Founders One (EZPW)?

EZCORP announced it acquired a controlling interest in Founders One, raising its ownership to 87.7% and consolidating SMG financials.

How many stores did EZCORP add after the Founders acquisition (EZPW)?

EZCORP added 105 pawn stores from Founders, bringing its total to 1,488 stores across 16 countries.

What financing did EZCORP provide to SMG as part of the deal (EZPW)?

EZCORP entered a three‑year senior secured facility providing $156.4M at 13% per annum to SMG.

What were Founders' recent reported revenues before consolidation into EZCORP (EZPW)?

Founders reported unaudited nine‑month 2025 revenue of $127M and gross profit of $66M; fiscal 2024 revenue was $147M.

How did EZCORP fund the acquisition of Founders One (EZPW)?

EZCORP converted $45M preferred equity and $10M notes to common equity and contributed $9.4M cash, funding the deal from company cash resources.

Will EZCORP consolidate SMG results after the transaction (EZPW)?

Yes. With the majority ownership, EZCORP will consolidate SMG's financial results going forward.