FirstCash and EZCORP Slide as Gold Weakness Overshadows Strong Results
FirstCash shares fell 13% and EZCORP dropped 10% even after FirstCash beat third-quarter revenue and adjusted earnings estimates and raised its dividend 10%. The selloff coincided with gold falling nearly 2% below $4,100 an ounce, which can reduce collateral values and scrap proceeds for pawn lenders. FirstCash reported 28% pawn revenue growth and record pawn receivables of $908 million.
FirstCash’s third-quarter adjusted EPS was $2.68 versus $2.63 expected, and revenue reached $1.10 billion versus $1.07 billion expected. Pawn revenue grew 28%, pawn receivables hit a record $908 million, and the quarterly dividend rose 10% to $0.46 per share.
The shares fell 13%, while EZCORP lost 10%, as gold slipped nearly 2% below $4,100 an ounce. FirstCash had traded at 18x forward earnings, above its five-year 16x average, and the drop brought it near 15x. Dividends consumed 13% of $531 million in fiscal 2025 free cash flow.
A sustained gold decline could affect pawn customers who rely on jewelry-backed loans, since lower collateral values may reduce how much they can borrow and what scrap items fetch. That may matter most for households using small-dollar credit to cover short-term needs. Investors in FirstCash and EZCORP may also face sharper volatility, while store employees and expansion plans could feel indirect effects if lending volumes or earnings expectations weaken.