EZCORP INCEZPW

EZCORP INC Goodwill & Intangibles Disclosure

10-KFiled Nov 13, 20252 min read
NOTE 7: GOODWILL AND INTANGIBLE ASSETS
We evaluate goodwill for impairment annually on July 1 (see Note 1 for disclosure of the change in accounting principle) and upon the occurrence of certain triggering events or substantive changes in circumstances that indicate that the fair value of goodwill may be impaired.
We assessed qualitative and quantitative factors and determined that it was not more-likely-than-not that the fair values of our reporting units were less than their carrying values as of the testing date. As a result of our assessment, no goodwill impairment charge was recorded during the fiscal year ended September 30, 2025. There was no impairment charge recorded during the fiscal years ended September 30, 2024 and 2023.
Accumulated goodwill losses of $41.3 million were recorded prior to fiscal 2023 associated with the U.S. Pawn ($10.0 million) and Latin America Pawn ($31.3 million) segments because of the impact of the COVID-19 pandemic on typical customer behavior, which led to a significant decline in pawn loan balances and the mandated closure of stores in our GPMX countries.
The following table presents the changes in the carrying value of goodwill by segment:
(in thousands)U.S. PawnLatin America PawnConsolidated
Balances as of September 30, 2023$255,942 $46,430 $302,372 
Acquisitions(a)
8,486 — 8,486 
Effect of foreign currency translation changes— (4,380)(4,380)
Balances as of September 30, 2024$264,428 $42,050 $306,478 
Acquisitions(a)
3,635 12,045 15,680 
Effect of foreign currency translation changes— 2,731 2,731 
Balances as of September 30, 2025$268,063 $56,826 $324,889 
(a) Amount represents goodwill recognized in connection with acquisitions within the U.S. Pawn segment that were immaterial, individually and in the aggregate, and we have therefore omitted certain disclosures.
For fiscal 2025, we assessed qualitative and quantitative factors and determined that it was not more-likely-than-not that the fair values of our indefinite-lived intangible assets were less than their carrying values.
The following table presents the balance of each major class of intangible assets:
 September 30,
(in thousands)20252024
Non-amortizing intangible assets:
        Trade names$19,342 $18,771 
        Pawn licenses9,534 9,534 
Total$28,876 $28,305 
Amortizing intangible assets:
        Internally developed software$113,887 $103,428 
        Accumulated amortization(84,010)(73,318)
Total$29,877 $30,110 
   Other$399 $2,303 
   Accumulated amortization(320)(2,267)
Total$79 $36 
Intangible assets, net$58,832 $58,451 
The amortization of most definite-lived intangible assets is recorded as amortization expense and included under “Depreciation and amortization” expense in our Consolidated Statements of Operations. These amounts were $10.7 million, $11.6 million and $10.0 million for fiscal 2025, 2024 and 2023, respectively.
As of September 30, 2025, our estimate of future amortization expense for definite-lived intangible assets is as follows (in thousands):
2026$10,354 
20278,106 
20285,583 
20293,806 
20302,075 
Thereafter32 
Total$29,956 
As acquisitions and dispositions occur in the future, amortization expense may vary from these estimates.

Historical Timeline

Fiscal YearFiled
2025Nov 13, 2025Showing above
2024Nov 13, 2024
2023Nov 15, 2023
2022Nov 16, 2022
2021Nov 17, 2021
2020Dec 14, 2020
2019Dec 5, 2019
2018Nov 14, 2018
2017Nov 15, 2017
2016Dec 14, 2016
2015Dec 24, 2015

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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