Earnings (Loss) per Share

6 Months Ended

Mar. 31, 2024

NOTE 3: EARNINGS (LOSS) PER SHARE

The following table reconciles the number of common shares used to compute basic and diluted earnings (loss) per share attributable to EZCORP Inc., shareholders:


	Three Months Ended March 31,				Six Months Ended March 31,
(in thousands, except per share amounts)	2024		2023		2024		2023

Basic earnings (loss) per common share:
Net income (loss) - basic	$	21,479	$	(6,790)	$	49,949	$	9,988
Weighted shares outstanding - basic	55,093		55,648		55,084		55,981
Basic earnings (loss) per common share	$	0.39	$	(0.12)	$	0.91	$	0.18

Diluted earnings (loss) per common share:
Net income (loss) - basic	$	21,479	$	(6,790)	$	49,949	$	9,988
Add: Convertible Notes interest expense (income), net of tax*	2,415		—		5,074		(2,733)



Net income (loss) - diluted	$	23,894	$	(6,790)	$	55,023	$	7,255
Weighted shares outstanding - basic	55,093		55,648		55,084		55,981
Equity-based compensation awards - effect of dilution**	974		—		1,156		1,067
Convertible Notes - effect of dilution***	26,978		—		28,708		8,221



Weighted shares outstanding - diluted	83,045		55,648		84,948		65,269
Diluted earnings (loss) per common share	$	0.29	$	(0.12)	$	0.65	$	0.11

Potential common shares excluded from the calculation of diluted earnings (loss) per common share above:
Equity-based compensation awards**	—		1,014		—		—
Convertible Notes***	—		30,417		—		20,141



Restricted stock****	1,676		1,504		1,673		1,528
Total	1,676		32,935		1,673		21,669

* Effective January 1, 2024, we are required to combination settle the 2024 Convertible Notes. As such, no interest expense is included for the three months ended March 31, 2024 and only the first quarter of 2024 interest expense is included for the six months ended March 31, 2024. The six months ended March 31,2023 includes $5.4 million gain on the partial extinguishment of debt, associated with the 2025 Convertible Notes, which was recorded to “Interest expense” in the Company’s condensed consolidated statement of operations. See Note 7: Debt for additional information.

** Includes time-based share-based awards and performance based awards for which targets for fiscal year tranches have been achieved and vesting is subject only to achievement of service conditions.

*** As we are required to combination settle the 2024 Convertible Notes effective January 1, 2024, the 3.4 million principal shares are not included for the three months ended March 31, 2024 and only the weighted average shares of 1.7 million are included for the six months ended March 31, 2024. Additionally, no potential common shares related to the accreted value of the 2024 Convertible Notes are included for the three or six months ended March 31, 2024 as the average market rate was not above the initial conversion price of $10.00 per share for the noted reporting periods. See Note 7: Debt for conversion price, initial conversion rate and additional information on the 2024 Convertible Notes, 2025 Convertible Notes, and 2029 Convertible Notes.

**** Includes antidilutive share-based awards as well as performance-based share-based awards that are contingently issuable, but for which the condition for issuance has not been met as of the end of the reporting period.