EZCORP INCEZPW
EZCORP INC Leases Disclosure
NOTE 11: LEASES
The table below presents balances of our lease assets and liabilities and their balance sheet locations for both operating and financing leases:
| (in thousands) | Balance Sheet Location | September 30, 2025 | September 30, 2024 | |||||||||||
| Lease assets: | ||||||||||||||
| Operating lease right-of-use assets | Right-of-use assets, net | $ | 236,462 | $ | 226,602 | |||||||||
| Financing lease assets | 1,075 | 1,559 | ||||||||||||
| Total lease assets | $ | 237,537 | $ | 228,161 | ||||||||||
| Lease liabilities: | ||||||||||||||
| Current: | ||||||||||||||
| Operating lease liabilities | Operating lease liabilities, current | $ | 61,228 | $ | 58,998 | |||||||||
| Financing lease liabilities | 643 | 570 | ||||||||||||
| Total current lease liabilities | $ | 61,871 | $ | 59,568 | ||||||||||
| Non-current: | ||||||||||||||
| Operating Lease liabilities | Operating lease liabilities | $ | 184,736 | $ | 180,616 | |||||||||
| Financing lease liabilities | 573 | 1,110 | ||||||||||||
| Total non-current lease liabilities | $ | 185,309 | $ | 181,726 | ||||||||||
| Total lease liabilities | $ | 247,180 | $ | 241,294 | ||||||||||
The table below provides major components of our lease costs:
| Fiscal Year Ended September 30, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating lease cost: | |||||||||||||||||
| Operating lease cost * | $ | 77,384 | $ | 79,184 | $ | 74,086 | |||||||||||
| Variable lease cost | 20,541 | 17,732 | 16,315 | ||||||||||||||
| Total operating lease cost | $ | 97,925 | $ | 96,916 | $ | 90,401 | |||||||||||
| Financing lease cost: | |||||||||||||||||
| Amortization of financing lease assets | $ | 589 | $ | 568 | $ | 327 | |||||||||||
| Interest on financing lease liabilities | 162 | 215 | 145 | ||||||||||||||
| Total financing lease cost | $ | 751 | $ | 783 | $ | 472 | |||||||||||
| Total lease cost | $ | 98,676 | $ | 97,699 | $ | 90,873 | |||||||||||
* Includes a reduction for sublease rental income of $2.0 million, $3.1 million and $3.7 million for fiscal years ending September 2025, 2024 and 2023, respectively.
Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store expenses” and “General and administrative” expense, based on the underlying lease use.
Cash flow information consisted of the following:
| Fiscal Year Ended September 30, | |||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash provided by operating activities: | |||||||||||||||||
| Cash paid for operating leases | $ | 81,137 | $ | 79,700 | $ | 76,700 | |||||||||||
| Cash paid for interest portion of financing leases | $ | 162 | $ | 200 | $ | 100 | |||||||||||
Cash used in financing activities: | |||||||||||||||||
Cash paid for principal portion of finance leases | $ | 606 | $ | 492 | $ | 275 | |||||||||||
The weighted- average term and discount rates for leases are as follows:
| Fiscal Year Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted-average remaining lease term (years): | |||||||||||
| Operating leases | 5.07 | 4.81 | |||||||||
| Financing leases | 1.94 | 2.77 | |||||||||
| Weighted-average discount rate: | |||||||||||
| Operating leases | 9.05 | % | 8.30 | % | |||||||
| Financing leases | 11.27 | % | 11.14 | % | |||||||
As of September 30, 2025, maturities of lease liabilities under ASC 842 by fiscal year were as follows (in thousands):
| Operating Leases | Financing Leases | ||||||||||
Fiscal 2026 | $ | 80,054 | $ | 751 | |||||||
Fiscal 2027 | 66,801 | 523 | |||||||||
Fiscal 2028 | 50,291 | 68 | |||||||||
Fiscal 2029 | 35,840 | 21 | |||||||||
Fiscal 2030 | 23,971 | 2 | |||||||||
| Thereafter | 52,851 | — | |||||||||
| Total lease liabilities | $ | 309,808 | $ | 1,365 | |||||||
Less: portion representing imputed interest | 63,844 | 149 | |||||||||
| Total net lease liabilities | $ | 245,964 | $ | 1,216 | |||||||
| Less: current portion | 61,228 | 643 | |||||||||
| Total long term net lease liabilities | $ | 184,736 | $ | 573 | |||||||
In December 2014, we entered into a non-cancelable 13-year operating lease for our corporate offices, with rent payments beginning February 2016 and ending March 2029. In May of 2025, we entered into an amendment which extended certain elements of the lease until October 2035. The amendment contains a renewal option for an additional five years at a market rental rate to be determined when the renewal notice is delivered. This renewal option has not been recognized in the right of use asset or liability for this lease.
The estimated minimum future rental payments under the lease are approximately $13.1 million as of September 30, 2025. As of September 30, 2025, we have subleases in place for a portion of our corporate operating office lease for estimated minimum future sublease payments of approximately $6.4 million.
In fiscal 2023, we assessed the recoverability of the right-of-use asset for our corporate office, primarily due to the termination of a significant sublease. We determined the undiscounted cash flows of the relative corporate lease and sublease did not exceed the net book value of the right-of-use asset. We then determined the fair value of the corporate lease and sublease did not exceed the book value of the right-of-use asset, and an impairment charge of $4.3 million was recorded in fiscal 2023 to “Impairment of other assets” in the Consolidated Statements of Operations.
The following table presents our corporate office lease measured at fair value as a result of the aforementioned impairment charges aggregated by the level in the fair value hierarchy within which measurements fall on a non-recurring basis at September 30, 2023, and the related impairment charge recorded (in thousands):
Fair Value as of September 30, 2023 | Fiscal Year Ended 2023 | ||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Impairment Charges | |||||||||||||||||||||||||
| Corporate office | $ | — | $ | — | $ | 6,233 | $ | 6,233 | $ | 4,343 | |||||||||||||||||||
We recorded $66.2 million, $55.3 million and $66.5 million in non-cash additions to our operating right-of-use assets and lease liabilities for the fiscal year ended September 30, 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 13, 2025 | Showing above |
| 2024 | Nov 13, 2024 | |
| 2023 | Nov 15, 2023 | |
| 2022 | Nov 16, 2022 | |
| 2021 | Nov 17, 2021 | |
| 2020 | Dec 14, 2020 | |
| 2019 | Dec 5, 2019 | |
| 2018 | Nov 14, 2018 | |
| 2017 | Nov 15, 2017 | |
| 2016 | Dec 14, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.