In the current market session, FirstCash Hldgs Inc. (NASDAQ: FCFS) stock price is at $153.30, after a 0.89% decrease. However, over the past month, the company's stock spiked by 4.09%, and in the past year, by 33.54%. Shareholders might be interested in knowing whether the stock is overvalued, even if the company is not performing up to par in the current session. How Does FirstCash Hldgs P/E Compare to Other Companies?The P/E ratio is used by long-term shareholders to assess the company's market performanc ...

Core Idea - The article emphasizes the investment philosophy of Thomas W. Phelps, particularly his book "100 to 1 in the Stock Market," which advocates for buying exceptional companies early, holding them with discipline, and allowing compounding to generate wealth [1][4][6]. Phelps's Investment Framework - Phelps's framework focuses on identifying companies with durable advantages, such as network effects, proprietary know-how, and advantageous cost structures [8]. - The importance of verifying a large addressable market that allows for long-term compounding without hitting a wall is highlighted [8]. - Present-tense profitability is essential; Phelps preferred companies that generate cash rather than speculative ventures [8]. - The article suggests buying companies when their narratives are still forming, favoring modest valuations over those priced for perfection [8]. - A strategy of doing less is recommended, as holding onto winning investments can lead to tax deferral and reduced errors [8]. Current Investment Candidates - The article lists 25 companies that fit Phelps's criteria, categorized by how they create competitive advantages rather than by index labels [9]. - Companies in the construction and infrastructure sector, such as EMCOR Group and Quanta Services, are noted for their execution capabilities and ability to convert backlog into cash [10][11]. - Precision manufacturers like Celestica and Fabrinet are recognized for their high returns on capital and asset-light models [12]. - In network infrastructure, Arista Networks and Super Micro Computer are highlighted for their strong positions in high-speed switching and AI hardware, respectively [13]. - Companies in the materials sector, such as Martin Marietta Materials, are noted for their pricing power and local monopolies [14]. - Engineering firms like WSP Global are recognized for their expertise and customer relationships in regulated markets [15]. - Consumer brands like e.l.f. Beauty and Academy Sports are mentioned for their market share growth and operational efficiency [16]. - Specialty finance companies like FirstCash and software firms like Agilysys are noted for their cash generation and growth potential [17]. - Internationally, utilities like Sabesp and fintechs like StoneCo are highlighted for their governance and profitability improvements [18]. - UK companies like Spectris and Halma are recognized for their consistent acquisition strategies and operational excellence [19]. Conclusion - The article concludes that the focus should be on finding real engines of growth and sizing investments appropriately to endure market volatility, allowing time to enhance value [22].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of "buying high, hoping to sell even higher" [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: FirstCash Holdings (FCFS) Analysis - FirstCash Holdings currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - FCFS shares have increased by 1.55% over the past week, while the Zacks Financial Transaction Services industry has risen by 2.47% [6] - Over the last quarter, FCFS shares have gained 9.8%, and 18.59% over the past year, outperforming the S&P 500's gains of 7.98% and 15.57%, respectively [7] - The average 20-day trading volume for FCFS is 385,679 shares, indicating a bullish sign if the stock rises with above-average volume [8] Group 3: Earnings Outlook - In the past two months, two earnings estimates for FCFS have moved higher, increasing the consensus estimate from $7.93 to $8.03 [10] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions [10] Group 4: Conclusion - FCFS is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

Core Viewpoint - FirstCash Holdings (FCFS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on a company's changing earnings picture, which is crucial for near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for FirstCash indicates a positive outlook for its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - FirstCash is expected to earn $8.03 per share for the fiscal year ending December 2025, with a 1.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of FirstCash to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1: Company Performance - FirstCash Holdings (FCFS) has achieved a year-to-date return of approximately 32.9%, significantly outperforming the average return of -0.2% for the Business Services sector [4] - The Zacks Consensus Estimate for FCFS's full-year earnings has increased by 1.3% over the past three months, indicating improved analyst sentiment and a stronger earnings outlook [3] - FirstCash Holdings is part of the Financial Transaction Services industry, which has seen an average gain of 5.3% this year, further highlighting FCFS's superior performance within its industry [5] Group 2: Sector and Industry Comparison - The Business Services sector, which includes 254 individual stocks, is currently ranked 6 in the Zacks Sector Rank [2] - GigaCloud Technology Inc. (GCT), another stock in the Business Services sector, has outperformed with a year-to-date return of 70.1% [4] - The Technology Services industry, to which GigaCloud belongs, is ranked 93 and has experienced a year-to-date increase of 14.3% [6]

Core Viewpoint - FirstCash Holdings, Inc. has successfully completed the acquisition of H&T Group plc, marking its entry into the European market and enhancing its position as a global leader in the pawn industry with over 3,300 retail locations and annualized pro forma revenues nearing $4 billion [2][4]. Company Overview - FirstCash is a leading international operator of pawn stores, serving cash and credit-constrained consumers with more than 3,300 locations across the U.S., Latin America, and the U.K. [11]. - The company focuses on buying and selling a variety of merchandise and providing small non-recourse pawn loans secured by personal property [11]. Acquisition Details - The acquisition of H&T, the largest pawn store operator in the U.K. with 286 locations, was finalized on August 14, 2025, with H&T shareholders receiving 650 pence per share, totaling an equity value of £289 million (approximately $383 million) [8]. - FirstCash also assumed H&T's net debt of approximately £64 million (around $85 million) [8]. Financial Impact - H&T's stand-alone financial metrics for the full year 2025 are projected to include revenues between $315 million and $340 million, net income of $35 million to $38 million, and EBITDA of $60 million to $65 million [6]. - The expected earnings per share accretion for FirstCash from H&T for the remainder of 2025 is anticipated to be in the range of $0.20 to $0.25 per share [6][7]. Strategic Importance - The acquisition is expected to be immediately accretive to earnings, with strong pawn customer demand and double-digit pawn receivable growth reported by H&T in 2025 [5]. - The combination of FirstCash and H&T is seen as a platform for further international expansion, with H&T's market-leading position providing access to an attractive market [4][5].

Group 1 - The article discusses the author's long-term experience in analyzing various industries, including consumer lending, and highlights the importance of understanding business fundamentals [1] - The author emphasizes the value of learning from past crises and applying that knowledge to new business models and technologies [1] Group 2 - The article does not provide any specific financial data or performance metrics related to First Cash Holdings or the consumer lending industry [2][3]

PART I. FINANCIAL INFORMATION This section details the company's unaudited financial statements and management's analysis of financial performance and condition [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the company's unaudited consolidated financial statements, including balance sheets, income statements, and cash flows, with detailed notes on accounting policies and segment information [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :------------- | | Total Assets | $4,514,249 | $4,322,408 | 4.4% | | Pawn Loans | $550,718 | $491,731 | 12.0% | | Finance Receivables, net | $154,518 | $105,401 | 46.6% | | Inventories | $355,733 | $315,424 | 12.8% | | Leased Merchandise, net | $100,689 | $142,935 | -29.6% | | Total Liabilities | $2,374,081 | $2,343,959 | 1.3% | | Total Stockholders' Equity | $2,140,168 | $1,978,449 | 8.2% | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the company's financial performance over a period, detailing revenues, expenses, and net income | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :----------------------- | :------------------------------------------ | :------------------------------------------ | :------------- | | Total Revenue | $830,622 | $831,012 | -0.05% | | Net Income | $59,805 | $49,073 | 21.9% | | Diluted EPS | $1.34 | $1.08 | 24.1% | | **Metric** | **Six Months Ended June 30, 2025 (in thousands)** | **Six Months Ended June 30, 2024 (in thousands)** | **YoY Change (%)** | | Total Revenue | $1,667,045 | $1,667,382 | -0.02% | | Net Income | $143,396 | $110,441 | 29.8% | | Diluted EPS | $3.21 | $2.44 | 31.6% | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section details net income and other comprehensive income components, reflecting the total change in equity from non-owner sources | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :------------- | | Net Income | $59,805 | $49,073 | 21.9% | | Currency Translation Adjustment | $34,273 | $(47,664) | N/A | | Comprehensive Income | $94,078 | $1,409 | 6599.6% | | **Metric** | **Six Months Ended June 30, 2025 (in thousands)** | **Six Months Ended June 30, 2024 (in thousands)** | **YoY Change (%)** | | Net Income | $143,396 | $110,441 | 29.8% | | Currency Translation Adjustment | $33,329 | $(41,329) | N/A | | Comprehensive Income | $176,725 | $69,112 | 155.7% | [Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines the changes in the company's equity components, including net income, dividends, and stock transactions | Metric | As of 12/31/2024 (in thousands) | As of 6/30/2025 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------------------ | :----------------------------- | :-------------------- | | Total Stockholders' Equity | $2,054,164 | $2,140,168 | $85,904 | | **Six Months Ended June 30, 2025 (in thousands)** | | | | | Net Income | | $143,396 | | | Cash Dividends Paid | | $(33,802) | | | Purchases of Treasury Stock | | $(60,205) | | | Currency Translation Adjustment | | $34,273 | | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the cash inflows and outflows from operating, investing, and financing activities over a period | Cash Flow Activity | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :------------- | | Net Cash Flow Provided by Operating Activities | $243,494 | $228,719 | 6.4% | | Net Cash Flow Used in Investing Activities | $(174,210) | $(187,864) | -7.3% | | Net Cash Flow Used in Financing Activities | $(146,025) | $(50,850) | 187.2% | | Cash and Cash Equivalents at End of Period | $101,467 | $113,693 | -10.8% | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the accounting policies, significant estimates, and specific line items presented in the consolidated financial statements [Note 1 - General](index=12&type=section&id=Note%201%20-%20General) This section outlines the general accounting policies and basis of presentation for the financial statements - The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and include accounts of FirstCash Holdings, Inc. and its wholly-owned subsidiaries, with acquisitions consolidated since their dates[34](index=34&type=chunk)[35](index=35&type=chunk) - Latin American pawn operations (Mexico, Guatemala, Colombia) use local functional currencies, with assets and liabilities translated at balance sheet date exchange rates and revenues/expenses at average rates, impacting other comprehensive income (loss)[36](index=36&type=chunk) - The company is evaluating ASU 2024-03 (Expense Disaggregation Disclosures), effective for fiscal years beginning after December 15, 2026, but does not expect ASU 2023-09 (Income Tax Disclosures) to have a material effect[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) [Note 2 - Earnings Per Share](index=13&type=section&id=Note%202%20-%20Earnings%20Per%20Share) This section details the calculation of basic and diluted earnings per share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Diluted Earnings Per Share | $1.34 | $1.08 | 24.1% | | **Metric** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** | **YoY Change (%)** | | Diluted Earnings Per Share | $3.21 | $2.44 | 31.6% | | Weighted-Average Common Shares for Diluted EPS | 44,670 thousand | 45,338 thousand | -1.5% | [Note 3 - Acquisitions](index=13&type=section&id=Note%203%20-%20Acquisitions) This section provides details on the company's business acquisitions during the period - On May 14, 2025, the Company agreed to acquire H&T Group plc, the leading pawn operator in the United Kingdom with 285 stores, for an approximate total equity value of **£291.4 million ($396.3 million USD)**, with the acquisition expected to close in Q3 2025, subject to FCA approvals[43](index=43&type=chunk)[44](index=44&type=chunk) - During the six months ended June 30, 2025, the Company acquired four U.S. pawn stores for an aggregate purchase price of **$33.0 million**, net of cash acquired, recording goodwill for the excess purchase price over net assets[45](index=45&type=chunk)[46](index=46&type=chunk) [Note 4 - Operating Leases](index=14&type=section&id=Note%204%20-%20Operating%20Leases) This section provides information on the company's operating lease arrangements - The Company leases most of its pawnshop locations and administrative offices under operating leases, with a weighted-average remaining lease term of **4.2 years** as of June 30, 2025, and a weighted-average discount rate of **8.5%**[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - Foreign currency remeasurement of U.S. dollar-denominated Mexican operating leases resulted in a foreign currency gain of **$1.6 million** for the three months ended June 30, 2025, and **$1.5 million** for the six months ended June 30, 2025[51](index=51&type=chunk) | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :------------------------ | :------------------------------------------ | :------------------------------------------ | :------------- | | Total Operating Lease Expense | $41,501 | $42,560 | -2.5% | | **Metric** | **Six Months Ended June 30, 2025 (in thousands)** | **Six Months Ended June 30, 2024 (in thousands)** | **YoY Change (%)** | | Total Operating Lease Expense | $80,934 | $84,500 | -4.2% | [Note 5 - Fair Value of Financial Instruments](index=16&type=section&id=Note%205%20-%20Fair%20Value%20of%20Financial%20Instruments) This section details the fair value measurements of financial assets and liabilities - The Company did not have any financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025, and no impairment events for non-financial assets were identified during the six months ended June 30, 2025[54](index=54&type=chunk)[55](index=55&type=chunk) | Financial Asset/Liability | Carrying Value (June 30, 2025, in thousands) | Estimated Fair Value (June 30, 2025, in thousands) | Fair Value Level | | :-------------------------------- | :------------------------------------------- | :------------------------------------------- | :--------------- | | Cash and cash equivalents | $101,467 | $101,467 | Level 1 | | Accounts receivable, net | $76,062 | $76,062 | Level 3 | | Pawn loans | $550,718 | $550,718 | Level 3 | | Finance receivables, net | $154,518 | $313,281 | Level 3 | | Revolving unsecured credit facilities | $152,000 | $152,000 | Level 2 | | Senior unsecured notes (outstanding principal) | $1,550,000 | $1,548,000 | Level 2 | [Note 6 - Finance Receivables, Net](index=18&type=section&id=Note%206%20-%20Finance%20Receivables,%20Net) This section provides details on finance receivables, including allowances for loan losses and delinquency information | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------------- | :--------------------------- | :--------------------------- | :------------- | | Finance receivables, net | $154,518 | $105,401 | 46.6% | | Allowance for loan losses | $122,874 | $99,961 | 23.0% | | **Metric** | **Six Months Ended June 30, 2025 (in thousands)** | **Six Months Ended June 30, 2024 (in thousands)** | **YoY Change (%)** | | Provision for loan losses | $78,121 | $61,534 | 27.0% | | Charge-offs | $(78,497) | $(62,092) | 26.4% | | Recoveries | $6,245 | $4,065 | 53.6% | | Delinquency (as of June 30, 2025, in thousands) | 2025 Origination Year | 2024 Origination Year | 2023 Origination Year | Total | | :-------------------------------- | :-------------------- | :-------------------- | :-------------------- | :------ | | 1 to 30 days past due | $17,683 | $9,968 | $489 | $28,140 | | 31 to 60 days past due | $9,946 | $6,998 | $348 | $17,292 | | 61 to 89 days past due | $6,189 | $5,853 | $321 | $12,363 | | Total past due finance receivables | $33,818 | $22,819 | $1,158 | $57,795 | [Note 7 - Leased Merchandise, Net](index=20&type=section&id=Note%207%20-%20Leased%20Merchandise,%20Net) This section provides information on leased merchandise, including allowances for lease losses | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------------- | :--------------------------- | :--------------------------- | :------------- | | Leased merchandise, net | $100,689 | $142,935 | -29.6% | | Allowance for lease losses | $69,667 | $102,778 | -32.2% | | **Metric** | **Six Months Ended June 30, 2025 (in thousands)** | **Six Months Ended June 30, 2024 (in thousands)** | **YoY Change (%)** | | Provision for lease losses | $60,105 | $90,663 | -33.7% | | Charge-offs | $(75,007) | $(86,679) | -13.5% | | Recoveries | $4,312 | $3,667 | 17.6% | [Note 8 - Long-Term Debt](index=21&type=section&id=Note%208%20-%20Long-Term%20Debt) This section details the company's long-term debt obligations, including credit facilities and senior unsecured notes | Debt Type | As of June 30, 2025 (in thousands) | As of June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :--------------------------------- | :--------------------------------- | :------------- | | Revolving unsecured credit facilities | $152,000 | $150,000 | 1.3% | | Senior unsecured notes | $1,532,865 | $1,529,870 | 0.2% | | Total long-term debt | $1,684,865 | $1,679,870 | 0.3% | - The Company's **$700.0 million** Credit Facility, maturing August 8, 2029, had **$152.0 million** outstanding and **$545.3 million** available as of June 30, 2025, with a weighted-average interest rate of **6.82%**[65](index=65&type=chunk)[67](index=67&type=chunk)[69](index=69&type=chunk) - The Credit Facility was amended on May 13, 2025, to modify financial covenants, including an increased non-loan party investment basket to **25% of net worth** and an increased permitted consolidated leverage ratio to **3.75x adjusted EBITDA** through December 31, 2025, in anticipation of the H&T Acquisition[66](index=66&type=chunk) - The Company's consolidated total debt ratio was **2.5 to 1** as of June 30, 2025, which is below the covenant limits for its senior unsecured notes (**2.75 to 1** for 2028 Notes, **3.0 to 1** for 2030 and 2032 Notes)[72](index=72&type=chunk)[73](index=73&type=chunk)[75](index=75&type=chunk) [Note 9 - Commitments and Contingencies](index=25&type=section&id=Note%209%20-%20Commitments%20and%20Contingencies) This section provides information on the company's legal and contractual commitments and potential liabilities - The Company settled a civil action with the CFPB on July 11, 2025, regarding Military Lending Act violations, agreeing to offer a new pawn lending product for military members, pay up to **$7.0 million** in consumer redress, and a **$4.0 million** civil monetary penalty, with an **$11.0 million** accrual made in Q2 2025[78](index=78&type=chunk) - The pending H&T Acquisition has an equity value of approximately **$396.3 million USD**, and H&T had **$98.7 million USD** in outstanding indebtedness as of June 30, 2025, with the Company intending to finance the acquisition using its Credit Facility[79](index=79&type=chunk)[80](index=80&type=chunk) - As of June 30, 2025, the Company had contractual commitments to deliver **72,500 gold ounces** between July 2025 and June 2027 at a weighted-average price of **$2,826 per ounce**[81](index=81&type=chunk) [Note 10 - Segment Information](index=28&type=section&id=Note%2010%20-%20Segment%20Information) This section presents financial data broken down by the company's operating segments - The Company operates in three reportable segments: U.S. pawn, Latin America pawn, and Retail POS payment solutions (American First Finance 'AFF')[84](index=84&type=chunk) | Segment (Three Months Ended June 30, 2025, in thousands) | Total Revenue | Segment Pre-Tax Operating Income | | :----------------------------------------- | :------------ | :------------------------------- | | U.S. Pawn | $409,606 | $98,286 | | Latin America Pawn | $205,906 | $40,980 | | Retail POS Payment Solutions | $215,859 | $37,939 | | **Segment (Six Months Ended June 30, 2025, in thousands)** | **Total Revenue** | **Segment Pre-Tax Operating Income** | | U.S. Pawn | $832,271 | $211,418 | | Latin America Pawn | $390,034 | $72,385 | | Retail POS Payment Solutions | $446,190 | $90,240 | | Segment Assets (As of June 30, 2025, in thousands) | Pawn Loans | Finance Receivables, net | Inventories | Leased Merchandise, net | Goodwill | Total Assets | | :----------------------------------- | :--------- | :----------------------- | :---------- | :---------------------- | :--------- | :----------- | | U.S. Pawn | $400,143 | — | $252,885 | — | $1,154,790 | $2,746,362 | | Latin America Pawn | $150,575 | — | $102,848 | — | $185,189 | $722,882 | | Retail POS Payment Solutions | — | $154,518 | — | $100,852 | $486,205 | $901,034 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a comprehensive analysis of the company's financial condition, results of operations, liquidity, and capital resources, including segment-specific performance and critical accounting estimates [GENERAL](index=32&type=section&id=GENERAL) This section provides an overview of the company's business model and operations - FirstCash Holdings, Inc. primarily operates retail pawn stores in the U.S. and Latin America, serving cash- and credit-constrained consumers through non-recourse pawn loans and merchandise sales[90](index=90&type=chunk) - The company also provides technology-driven retail POS payment solutions through American First Finance (AFF), offering lease-to-own (LTO) products and retail financing across a network of merchant partners[91](index=91&type=chunk) - The company's operations are organized into three reportable segments: U.S. pawn, Latin America pawn, and retail POS payment solutions, with a pending acquisition of H&T Group plc in the UK expected to close in Q3 2025[92](index=92&type=chunk)[93](index=93&type=chunk) [OPERATIONS AND LOCATIONS](index=33&type=section&id=OPERATIONS%20AND%20LOCATIONS) This section details the company's store count and operational footprint across its various segments | Pawn Store Activity | Six Months Ended June 30, 2025 | | :-------------------------------- | :----------------------------- | | Total locations, beginning of period | 3,026 | | New locations opened | 21 | | Locations acquired | 4 | | Consolidation of existing pawn locations | (24) | | Total locations, end of period | 3,027 | - As of June 30, 2025, the Company operated **3,027 pawn store locations**, including **1,194 in the U.S.** and **1,833 in Latin America**[94](index=94&type=chunk)[95](index=95&type=chunk) - AFF's retail POS payment solutions network expanded to approximately **15,300 active merchant partner locations** as of June 30, 2025, up from **12,800** at June 30, 2024[96](index=96&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=33&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section discusses the key judgments and assumptions used in the company's financial reporting - There have been no changes to the Company's significant accounting policies for the six months ended June 30, 2025, as previously reported in its 2024 Annual Report on Form 10-K[97](index=97&type=chunk) [RESULTS OF OPERATIONS (unaudited)](index=34&type=section&id=RESULTS%20OF%20OPERATIONS%20(unaudited)) This section provides an analysis of the company's financial performance for the reported periods [Operating Results for the Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024](index=34&type=section&id=Operating%20Results%20for%20the%20Three%20Months%20Ended%20June%2030,%202025%20Compared%20to%20the%20Three%20Months%20Ended%20June%2030,%202024) This section compares the company's operating results for the second quarter of 2025 against the same period in 2024 [U.S. Pawn Segment](index=34&type=section&id=U.S.%20Pawn%20Segment_Q2) This section analyzes the performance of the U.S. pawn operations for the second quarter | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Increase (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------------- | | Total Revenue | $409,606 | $376,736 | 9% | | Retail Merchandise Sales | $249,918 | $230,093 | 9% | | Pawn Loan Fees | $130,948 | $120,332 | 9% | | Wholesale Scrap Jewelry Sales | $28,740 | $26,311 | 9% | | Segment Pre-Tax Operating Income | $98,286 | $90,595 | 8% | | Segment Pre-Tax Operating Margin | 24% | 24% | 0% | | Pawn Loans (as of June 30) | $400,143 | $356,342 | 12% | | Inventories (as of June 30) | $252,885 | $223,428 | 13% | - Same-store retail sales increased **7%** and same-store pawn loan fees increased **9%** in Q2 2025, driven by strong demand for value-priced merchandise, increased inventory levels, and higher gold prices[101](index=101&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - U.S. operating expenses increased **7%** to **$133.8 million**, primarily due to increased labor and variable compensation expenses[105](index=105&type=chunk) [Latin America Pawn Segment](index=37&type=section&id=Latin%20America%20Pawn%20Segment_Q2) This section analyzes the performance of the Latin America pawn operations for the second quarter - Latin American segment results were impacted by a **13% unfavorable change** in the average value of the Mexican peso compared to the U.S. dollar in Q2 2025[108](index=108&type=chunk) | Metric (Constant Currency) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Increase (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------- | | Total Revenue | $230,807 | $203,982 | 13% | | Retail Merchandise Sales | $153,234 | $134,445 | 14% | | Pawn Loan Fees | $67,497 | $60,714 | 11% | | Segment Pre-Tax Operating Income | $45,211 | $37,113 | 22% | | Segment Pre-Tax Operating Margin | 20% | 18% | 2% | | Pawn Loans (as of June 30) | $154,466 | $135,389 | 14% | | Inventories (as of June 30) | $105,501 | $91,996 | 15% | - Constant currency same-store retail sales increased **13%** and same-store pawn loan fees increased **11%**, driven by strong demand, larger loan sizes, and higher gold prices[112](index=112&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - Operating expenses increased **7%** on a constant currency basis due to increased store counts, inflation, and minimum wage increases[116](index=116&type=chunk) [Retail POS Payment Solutions Segment](index=40&type=section&id=Retail%20POS%20Payment%20Solutions%20Segment_Q2) This section analyzes the performance of the retail point-of-sale payment solutions segment for the second quarter | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------- | | Total Revenue | $215,859 | $251,369 | -14% | | Leased Merchandise Income | $139,784 | $194,570 | -28% | | Interest and Fees on Finance Receivables | $76,075 | $56,799 | 34% | | Segment Pre-Tax Operating Income | $37,939 | $25,909 | 46% | | Leased Merchandise, net (as of June 30) | $100,852 | $143,156 | -30% | | Finance Receivables, net (as of June 30) | $154,518 | $105,401 | 47% | | Total Gross Transaction Volume | $260,459 | $252,036 | 3% | | Provision for Lease Losses | $32,667 | $47,824 | -32% | | Provision for Loan Losses | $41,761 | $31,116 | 34% | | Operating Expenses | $24,264 | $35,275 | -31% | - Leased merchandise income decreased due to reduced originations following bankruptcies of major merchant partners (A-Freight and Conn's), while interest and fees on finance receivables increased due to higher balances and expansion into non-furniture verticals[122](index=122&type=chunk)[124](index=124&type=chunk)[127](index=127&type=chunk)[129](index=129&type=chunk) - Operating expenses decreased **31%** due to the elimination of expenses associated with the A-Freight and Conn's relationships, along with operating synergies and cost reduction initiatives[131](index=131&type=chunk) [Consolidated Results of Operations](index=44&type=section&id=Consolidated%20Results%20of%20Operations_Q2) This section summarizes the overall financial performance for the second quarter | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Consolidated Segment Pre-Tax Operating Income | $177,239 | $153,701 | | Income Before Income Taxes | $81,079 | $66,178 | | Net Income | $59,805 | $49,073 | [Corporate Expenses and Taxes](index=44&type=section&id=Corporate%20Expenses%20and%20Taxes_Q2) This section analyzes corporate overhead and tax impacts for the second quarter - Administrative expenses increased **27%** to **$59.3 million**, primarily due to an **$11.0 million CFPB litigation settlement** accrued in Q2 2025 and general inflationary impacts, partially offset by Mexican peso depreciation[134](index=134&type=chunk) - Merger and acquisition expenses increased **104%** to **$2.8 million**, primarily due to expenses associated with the H&T Acquisition[136](index=136&type=chunk) - The consolidated effective income tax rate was **26.2%** in Q2 2025, compared to **25.8%** in Q2 2024, with no material impact expected from the OBBBA in 2025[137](index=137&type=chunk) [Operating Results for the Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024](index=46&type=section&id=Operating%20Results%20for%20the%20Six%20Months%20Ended%20June%2030,%202025%20Compared%20to%20the%20Six%20Months%20Ended%20June%2030,%202024) This section compares the company's operating results for the first half of 2025 against the same period in 2024 [U.S. Pawn Segment](index=46&type=section&id=U.S.%20Pawn%20Segment_H1) This section analyzes the performance of the U.S. pawn operations for the first half of the year | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | YoY Increase (%) | | :-------------------------- | :--------------------- | :--------------------- | :--------------- | | Total Revenue | $832,271 | $754,426 | 10% | | Retail Merchandise Sales | $501,143 | $467,083 | 7% | | Pawn Loan Fees | $268,896 | $243,306 | 11% | | Wholesale Scrap Jewelry Sales | $62,232 | $44,037 | 41% | | Segment Pre-Tax Operating Income | $211,418 | $187,197 | 13% | | Segment Pre-Tax Operating Margin | 25% | 25% | 0% | - Same-store retail sales increased **5%** and same-store pawn loan fees increased **9%** in H1 2025, driven by continued strong demand for value-priced merchandise, increased inventory levels, and higher pawn loan balances[141](index=141&type=chunk)[142](index=142&type=chunk) - U.S. operating expenses increased **8%** to **$262.8 million**, primarily due to increased labor and variable compensation expenses[143](index=143&type=chunk) [Latin America Pawn Segment](index=48&type=section&id=Latin%20America%20Pawn%20Segment_H1) This section analyzes the performance of the Latin America pawn operations for the first half of the year - Latin American segment results were impacted by a **17% unfavorable change** in the average value of the Mexican peso compared to the U.S. dollar in H1 2025[146](index=146&type=chunk) | Metric (Constant Currency) | H1 2025 (in thousands) | H1 2024 (in thousands) | YoY Increase (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------- | | Total Revenue | $448,391 | $400,622 | 12% | | Retail Merchandise Sales | $296,887 | $265,294 | 12% | | Pawn Loan Fees | $131,755 | $117,275 | 12% | | Segment Pre-Tax Operating Income | $81,718 | $69,017 | 18% | | Segment Pre-Tax Operating Margin | 18% | 17% | 1% | | Operating Expenses | $144,841 | $135,327 | 7% | - Constant currency same-store retail sales increased **11%** and same-store pawn loan fees increased **12%**, driven by strong demand for merchandise and increased pawn receivables[149](index=149&type=chunk)[150](index=150&type=chunk) - Operating expenses increased **7%** on a constant currency basis due to increased store counts, inflation, and minimum wage increases[151](index=151&type=chunk) [Retail POS Payment Solutions Segment](index=50&type=section&id=Retail%20POS%20Payment%20Solutions%20Segment_H1) This section analyzes the performance of the retail point-of-sale payment solutions segment for the first half of the year | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | YoY Change (%) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------- | | Total Revenue | $446,190 | $514,427 | -13% | | Leased Merchandise Income | $296,702 | $400,241 | -26% | | Interest and Fees on Finance Receivables | $149,488 | $114,186 | 31% | | Segment Pre-Tax Operating Income | $90,240 | $59,058 | 53% | | Total Gross Transaction Volume | $496,027 | $508,321 | -2% | | Provision for Lease Losses | $60,271 | $91,004 | -34% | | Provision for Loan Losses | $78,121 | $61,534 | 27% | | Operating Expenses | $48,482 | $70,091 | -31% | - Leased merchandise income decreased due to lower average leased merchandise balances, while interest and fees on finance receivables increased due to higher balances and expansion into services sector verticals[156](index=156&type=chunk)[159](index=159&type=chunk) - Operating expenses decreased **31%** due to the elimination of expenses associated with the A-Freight and Conn's relationships, along with operating synergies and cost reduction initiatives[161](index=161&type=chunk) [Consolidated Results of Operations](index=53&type=section&id=Consolidated%20Results%20of%20Operations_H1) This section summarizes the overall financial performance for the first half of the year | Metric | H1 2025 (in thousands) | H1 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Consolidated Segment Pre-Tax Operating Income | $374,115 | $315,566 | | Income Before Income Taxes | $192,296 | $148,063 | | Net Income | $143,396 | $110,441 | [Corporate Expenses and Taxes](index=53&type=section&id=Corporate%20Expenses%20and%20Taxes_H1) This section analyzes corporate overhead and tax impacts for the first half of the year - Administrative expenses increased **19%** to **$107.8 million**, primarily due to the **$11.0 million CFPB litigation settlement** and general inflationary impacts, partially offset by Mexican peso depreciation[164](index=164&type=chunk) - Merger and acquisition expenses increased **65%** to **$3.2 million**, primarily due to expenses associated with the H&T Acquisition[167](index=167&type=chunk) - The consolidated effective income tax rate was **25.4%** for both H1 2025 and H1 2024, with no material impact expected from the OBBBA in 2025[167](index=167&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=54&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's ability to generate and manage cash, including its capital requirements and financing strategies - The Company's primary capital requirements include expanding pawn operations (growth, new stores, acquisitions), expanding retail POS payment solutions, and returning capital to shareholders through dividends and stock repurchases[168](index=168&type=chunk)[173](index=173&type=chunk) - During H1 2025, the Company acquired four U.S. pawn stores for **$33.0 million**, opened **21 new stores**, and purchased real estate at **21 store locations** for **$28.1 million**, with the pending H&T Acquisition (equity value **$396.3 million USD**) to be financed by the Credit Facility[170](index=170&type=chunk)[171](index=171&type=chunk)[174](index=174&type=chunk) | Liquidity Metric | As of June 30, 2025 (in thousands) | As of June 30, 2024 (in thousands) | | :------------------------------------------ | :--------------------------------- | :--------------------------------- | | Cash and cash equivalents | $101,467 | $113,693 | | Available and unused funds under credit facilities | $545,300 | N/A | | Working capital | $1,048,126 | $957,690 | | Current ratio | 4.2:1 | 4.0:1 | | **Cash Flow (Six Months Ended June 30, in thousands)** | **2025** | **2024** | | Cash flow provided by operating activities | $243,494 | $228,719 | | Cash flow used in investing activities | $(174,210) | $(187,864) | | Cash flow used in financing activities | $(146,025) | $(50,850) | - The Company repurchased **525,000 shares** for **$59.6 million** in H1 2025, with **$55.4 million** remaining under its **$200.0 million** repurchase program, and a **$0.42 per share** Q3 cash dividend was declared[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) [GOVERNMENTAL REGULATION UPDATE](index=57&type=section&id=GOVERNMENTAL%20REGULATION%20UPDATE) This section provides updates on regulatory developments affecting the company's operations - The CFPB's small-dollar lending (SDL) rule went into effect on March 30, 2025, but enforcement is not a priority, and the agency may seek new rulemaking to narrow its scope, with the Company not expecting a material impact on its future results[190](index=190&type=chunk) - No material changes to the Company's risk factors or significant regulations affecting its businesses have occurred since the 2024 Annual Report on Form 10-K[188](index=188&type=chunk)[207](index=207&type=chunk) - Potential new tariffs, quotas, and trade barriers could depress economic activity and adversely affect consumers, but the nature, timing, and economic effects remain uncertain[191](index=191&type=chunk) [NON-GAAP FINANCIAL INFORMATION](index=57&type=section&id=NON-GAAP%20FINANCIAL%20INFORMATION) This section presents non-GAAP financial measures used by management to evaluate operating performance, excluding certain non-operating items - The Company uses non-GAAP financial measures (adjusted net income, adjusted diluted EPS, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, and constant currency results) to evaluate operating performance by excluding non-operating items like M&A expenses, AFF intangible asset amortization, and the CFPB litigation settlement[192](index=192&type=chunk)[193](index=193&type=chunk) [Adjusted Net Income and Adjusted Diluted Earnings Per Share](index=58&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20Earnings%20Per%20Share) This section presents adjusted net income and adjusted diluted earnings per share, excluding specific non-recurring or non-cash items | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change (%) | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------- | | Adjusted Diluted Earnings Per Share | $1.79 | $1.37 | 30.7% | | **Metric** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** | **YoY Change (%)** | | Adjusted Diluted Earnings Per Share | $3.86 | $2.91 | 32.6% | - Key adjustments for the six months ended June 30, 2025, include **$2.5 million** for merger and acquisition expenses (net of tax), **$18.5 million** for amortization of acquired AFF intangible assets (net of tax), and **$9.4 million** for the CFPB litigation settlement (net of tax)[195](index=195&type=chunk) [Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA](index=59&type=section&id=Earnings%20Before%20Interest,%20Taxes,%20Depreciation%20and%20Amortization%20(EBITDA)%20and%20Adjusted%20EBITDA) This section provides EBITDA and Adjusted EBITDA, which are non-GAAP measures used to assess operational profitability before certain non-operating expenses | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :---------------- | :------------------------------------------ | :------------------------------------------ | :------------- | | EBITDA | $295,714 | $250,238 | 18.2% | | Adjusted EBITDA | $308,009 | $253,474 | 21.5% | | Trailing Twelve Months Adjusted EBITDA | $612,972 | $548,163 | 11.8% | - Adjustments for the six months ended June 30, 2025, include **$3.2 million** for merger and acquisition expenses and **$11.0 million** for the CFPB litigation settlement[196](index=196&type=chunk) [Free Cash Flow and Adjusted Free Cash Flow](index=60&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow) This section presents free cash flow and adjusted free cash flow, indicating the cash available for discretionary purposes after capital expenditures | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | YoY Change (%) | | :-------------------- | :------------------------------------------ | :------------------------------------------ | :------------- | | Free Cash Flow | $131,059 | $127,605 | 2.7% | | Adjusted Free Cash Flow | $133,547 | $129,109 | 3.4% | - The adjustment for the six months ended June 30, 2025, includes **$2.5 million** for merger and acquisition expenses paid, net of tax benefit[198](index=198&type=chunk) [Constant Currency Results](index=60&type=section&id=Constant%20Currency%20Results) This section explains the use of constant currency results to evaluate Latin American operations by neutralizing the impact of foreign exchange rate fluctuations - Constant currency results are used to evaluate Latin American operations by translating local currency items at prior-year exchange rates, excluding foreign currency rate fluctuations for period-over-period comparisons[199](index=199&type=chunk)[200](index=200&type=chunk) | Exchange Rate (vs. U.S. dollar) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Favorable / (Unfavorable) Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :----------------------------------- | | Mexican peso | 20.0 | 17.1 | -17% | | Colombian peso | 4,195 | 3,921 | -7% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms that the company's market risks, primarily related to interest rates, gold prices, and foreign currency exchange rates, remain consistent with those disclosed in its 2024 Annual Report on Form 10-K, with no material changes - The Company's primary market risks are from changes in interest rates, gold prices, and foreign currency exchange rates[202](index=202&type=chunk) - There have been no material changes to the Company's exposure to market risks since December 31, 2024[202](index=202&type=chunk) - The Company does not engage in speculative or leveraged transactions or hold financial instruments for trading purposes[202](index=202&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025, and reported no material changes in internal control over financial reporting during the quarter - The Company's disclosure controls and procedures were evaluated as effective at a reasonable assurance level as of June 30, 2025[203](index=203&type=chunk)[204](index=204&type=chunk) - There have been no material changes in the Company's internal control over financial reporting during the quarter ended June 30, 2025[205](index=205&type=chunk) PART II. OTHER INFORMATION This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and other disclosures [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 of the consolidated financial statements for detailed information regarding the company's legal proceedings and commitments - Refer to Note 9 - Commitments and Contingencies of Notes to Consolidated Financial Statements for information on legal proceedings[206](index=206&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the company's risk factors since its 2024 Annual Report on Form 10-K, with supplemental discussions provided in the Management's Discussion and Analysis and Governmental Regulation Update sections - There have been no material changes in the Company's risk factors from those described in Part I, Item 1A, 'Risk Factors' of the Company's 2024 Annual Report on Form 10-K[207](index=207&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that the company did not purchase any shares of its common stock during the three months ended June 30, 2025, under its publicly announced repurchase program, which has $55.4 million remaining authorization - The Company did not purchase any shares of its common stock during the three months ended June 30, 2025[208](index=208&type=chunk) - As of June 30, 2025, **$55.4 million** remained available under the common stock repurchase program authorized in July 2023[208](index=208&type=chunk) [Item 3. Defaults Upon Senior Securities](index=62&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - The Company reported no defaults upon senior securities[209](index=209&type=chunk) [Item 4. Mine Safety Disclosures](index=62&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable to the Company[210](index=210&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) This section discloses that no directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q2 2025, except for the CFO adopting a plan to sell up to 44,000 shares - On June 2, 2025, R. Douglas Orr, Executive Vice President and Chief Financial Officer, adopted a Rule 10b5-1 trading plan to sell up to **44,000 shares** of the Company's common stock, expiring on June 16, 2027[212](index=212&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including various agreements, certifications, and XBRL documents - The exhibits include the Ninth Amendment to Amended and Restated Credit Agreement, certifications pursuant to Exchange Act Sections 13(a)-14(a)/15d-14(a) and 18 U.S.C. Section 1350, and Inline XBRL documents[214](index=214&type=chunk) [SIGNATURES](index=65&type=section&id=SIGNATURES) The report is officially signed by the Chief Executive Officer and the Executive Vice President and Chief Financial Officer of FirstCash Holdings, Inc - The report is signed by Rick L. Wessel, Chief Executive Officer, and R. Douglas Orr, Executive Vice President and Chief Financial Officer[217](index=217&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) FirstCash achieved record Q2 results with over 30% YTD EPS growth, robust pawn demand, and significant AFF segment earnings, while expanding globally through the H&T acquisition and increasing shareholder dividends [Second Quarter and Year-to-Date Performance Highlights](index=1&type=section&id=1.1%20Second%20Quarter%20and%20Year-to-Date%20Performance%20Highlights) FirstCash reported record second-quarter operating results, with strong performance across all segments driving over 30% year-to-date EPS growth - FirstCash reported outstanding earnings results for Q2 and YTD, with robust pawn demand and **strong earnings growth across all segments**[2](index=2&type=chunk) Key Financial Performance (YoY Growth) | Metric (Adjusted) | Q2 2025 vs Q2 2024 | YTD 2025 vs YTD 2024 | | :------------------ | :------------------ | :------------------- | | Diluted EPS | +31% | +33% | | Net Income | +29% | +31% | | EBITDA | +19% | +22% | - Pawn receivables increased **13%** in both the U.S. and Latin America on a same-store local currency basis[2](index=2&type=chunk) - AFF segment earnings increased **46%** compared to the prior year[2](index=2&type=chunk) [Strategic Developments and Shareholder Returns](index=1&type=section&id=1.2%20Strategic%20Developments%20and%20Shareholder%20Returns) The Company is on track to complete the acquisition of H&T Group plc, the largest pawnbroker in the U.K., by the end of Q3 2025, which will expand its global footprint - The acquisition of H&T Group plc, the largest pawnbroker in the U.K. (285 locations), is expected to close by the end of Q3 2025, pending regulatory approvals[2](index=2&type=chunk)[8](index=8&type=chunk) - The H&T acquisition will create the largest publicly traded pawn platform in the U.S., Latin America, and the U.K. with over **3,300 total locations**[8](index=8&type=chunk) - The Board of Directors increased the quarterly cash dividend by **11% to $0.42 per share**, reflecting business strength and long-term earnings prospects[1](index=1&type=chunk)[2](index=2&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) FirstCash reported strong Q2 and YTD financial results with significant increases in net income and EPS, record adjusted EBITDA, robust cash flow generation, and enhanced shareholder returns [Summary Financial Results (GAAP & Adjusted)](index=1&type=section&id=2.1%20Summary%20Financial%20Results%20(GAAP%20%26%20Adjusted)) FirstCash reported strong financial results for the second quarter and year-to-date periods ended June 30, 2025, with significant increases in net income and diluted earnings per share on both a GAAP and adjusted basis, despite stable total revenue Consolidated Financial Highlights (Q2 2025 vs Q2 2024) | Metric (in thousands, except per share) | 2025 (GAAP) | 2024 (GAAP) | YoY Change (GAAP) | 2025 (Adjusted) | 2024 (Adjusted) | YoY Change (Adjusted) | | :-------------------------------------- | :---------- | :---------- | :---------------- | :-------------- | :-------------- | :--------------------- | | Revenue | $830,622 | $831,012 | (0.05)% | $830,622 | $831,012 | (0.05)% | | Net income | $59,805 | $49,073 | +21.87% | $79,620 | $61,898 | +28.63% | | Diluted earnings per share | $1.34 | $1.08 | +24.07% | $1.79 | $1.37 | +30.66% | | EBITDA (non-GAAP) | $132,753 | $117,651 | +12.84% | $145,129 | $121,882 | +19.07% | Consolidated Financial Highlights (YTD 2025 vs YTD 2024) | Metric (in thousands, except per share) | 2025 (GAAP) | 2024 (GAAP) | YoY Change (GAAP) | 2025 (Adjusted) | 2024 (Adjusted) | YoY Change (Adjusted) | | :-------------------------------------- | :---------- | :---------- | :---------------- | :-------------- | :-------------- | :--------------------- | | Revenue | $1,667,045 | $1,667,382 | (0.02)% | $1,667,045 | $1,667,382 | (0.02)% | | Net income | $143,396 | $110,441 | +29.84% | $172,399 | $132,087 | +30.52% | | Diluted earnings per share | $3.21 | $2.44 | +31.56% | $3.86 | $2.91 | +32.65% | | EBITDA (non-GAAP) | $295,714 | $250,238 | +18.17% | $308,009 | $253,474 | +21.52% | [Consolidated Operating Highlights](index=2&type=section&id=2.2%20Consolidated%20Operating%20Highlights) The Company achieved significant growth in key profitability metrics for both the second quarter and year-to-date periods Consolidated Operating Highlights (YoY Growth) | Metric (GAAP) | Q2 YoY Growth | YTD YoY Growth | | :-------------- | :------------ | :------------- | | Diluted EPS | +24% | +32% | | Net Income | +22% | +30% | | Adjusted EBITDA | +19% | +22% | - Adjusted EBITDA for the trailing twelve months ended June 30, 2025, reached a record **$613 million**, exceeding **$600 million** for the first time[8](index=8&type=chunk)[24](index=24&type=chunk) - Revenues for the trailing twelve months ended June 30, 2025, were **$3.4 billion**[8](index=8&type=chunk) [Cash Flow and Liquidity](index=4&type=section&id=2.3%20Cash%20Flow%20and%20Liquidity) FirstCash generated strong operating cash flows and adjusted free cash flows, which were utilized to fund growth in earning assets, strategic investments in the pawn store platform, and shareholder returns Cash Flow Highlights (Trailing Twelve Months Ended June 30, 2025) | Metric | Amount (in millions) | | :---------------------- | :------------------- | | Operating Cash Flows | $555 | | Adjusted Free Cash Flows| $267 | - Operating cash flows grew **26% to $555 million**, and adjusted free cash flows increased **21% to $267 million** compared to the prior-year period[16](index=16&type=chunk) - Cash flows funded a **$99 million** increase in pawn earning assets, **$44 million** for 15 pawn store acquisitions, **$16 million** for 42 new pawn stores, and **$93 million** for real estate purchases[16](index=16&type=chunk) - Net debt at June 30, 2025, was **$1.6 billion**, with **$1.5 billion** being fixed-rate debt (4.625% to 6.875%) maturing from 2028 to 2032[20](index=20&type=chunk) - The net debt to adjusted EBITDA ratio improved to **2.6x** at June 30, 2025[20](index=20&type=chunk) [Shareholder Returns](index=5&type=section&id=2.4%20Shareholder%20Returns) FirstCash demonstrated its commitment to shareholder returns through an increased quarterly cash dividend and ongoing share repurchase program, while maintaining strong returns on equity and assets - The Board declared a **$0.42 per share** quarterly cash dividend, an **11% increase** over the previous dividend, resulting in an annualized dividend of **$1.68 per share**[1](index=1&type=chunk)[20](index=20&type=chunk) - Over the past twelve months, the Company repurchased **525,000 shares for $60 million** and paid **$68 million** in cash dividends, representing a payout ratio of approximately **44% of net income**[16](index=16&type=chunk)[20](index=20&type=chunk) - The Company has **$55 million** remaining under its **$200 million** share repurchase program[20](index=20&type=chunk) Returns on Equity and Assets (Trailing Twelve Months Ended June 30, 2025) | Metric | GAAP | Adjusted | | :---------------------- | :----- | :------- | | Return on Equity (ROE) | 14% | 17% | | Return on Assets (ROA) | 7% | 8% | [Segment Operating Results](index=3&type=section&id=Segment%20Operating%20Results) All segments demonstrated strong performance, with U.S. Pawn achieving record income, Latin America Pawn showing robust local currency growth, and AFF significantly increasing pre-tax operating income [U.S. Pawn Segment](index=3&type=section&id=3.1%20U.S.%20Pawn%20Segment) The U.S. Pawn segment delivered record pre-tax operating income in Q2 2025, driven by strong growth in pawn receivables, loan fees, and retail merchandise sales [Financial Performance](index=3&type=section&id=3.1.1%20Financial%20Performance) The U.S. Pawn segment achieved an 8% increase in Q2 pre-tax operating income and a 13% increase year-to-date, maintaining strong operating margins U.S. Pawn Segment Financial Performance (Q2 2025 vs Q2 2024) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :---------------------------- | :---------- | :---------- | :--------- | | Total Revenue | $409,606 | $376,736 | +9% | | Retail merchandise sales | $249,918 | $230,093 | +9% | | Pawn loan fees | $130,948 | $120,332 | +9% | | Segment pre-tax operating income | $98,286 | $90,595 | +8% | | Segment pre-tax operating margin | 24% | 24% | 0 bps | U.S. Pawn Segment Financial Performance (YTD 2025 vs YTD 2024) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :---------------------------- | :---------- | :---------- | :--------- | | Total Revenue | $832,271 | $754,426 | +10% | | Retail merchandise sales | $501,143 | $467,083 | +7% | | Pawn loan fees | $268,896 | $243,306 | +11% | | Segment pre-tax operating income | $211,418 | $187,197 | +13% | | Segment pre-tax operating margin | 25% | 25% | 0 bps | - Retail sales margins increased to **43%** in Q2 2025 from **42%** in Q2 2024[12](index=12&type=chunk)[43](index=43&type=chunk) [Earning Assets and Portfolio Metrics](index=13&type=section&id=3.1.2%20Earning%20Assets%20and%20Portfolio%20Metrics) U.S. pawn receivables showed strong growth, with same-store receivables up 13% year-over-year U.S. Pawn Earning Assets (As of June 30, 2025 vs 2024) | Earning Asset (in thousands) | 2025 | 2024 | YoY Increase | | :--------------------------- | :---------- | :---------- | :----------- | | Pawn loans | $400,143 | $356,342 | +12% | | Inventories | $252,885 | $223,428 | +13% | | Total Earning Assets | $653,028 | $579,770 | +13% | - Same-store pawn receivables increased **13%** year-over-year and **24%** on a two-year stacked basis[12](index=12&type=chunk) - Annualized inventory turnover was **2.8 times** for the trailing twelve months, consistent with the prior year. Inventories aged greater than one year remained low at **2%** of total inventories[12](index=12&type=chunk)[48](index=48&type=chunk) [Latin America Pawn Segment](index=3&type=section&id=3.2%20Latin%20America%20Pawn%20Segment) The Latin America Pawn segment achieved significant local currency growth in pre-tax operating income and pawn receivables, despite unfavorable U.S. dollar exchange rate impacts [Financial Performance (U.S. Dollar & Constant Currency)](index=3&type=section&id=3.2.1%20Financial%20Performance%20(U.S.%20Dollar%20%26%20Constant%20Currency)) Latin America Pawn segment's Q2 pre-tax operating income increased 10% on a U.S. dollar basis and 22% on a local currency basis Latin America Pawn Segment Financial Performance (Q2 2025 vs Q2 2024) | Metric (in thousands) | 2025 (USD) | 2024 (USD) | YoY Change (USD) | 2025 (Constant Currency) | YoY Change (Constant Currency) | | :---------------------------- | :---------- | :---------- | :--------------- | :----------------------- | :----------------------------- | | Total Revenue | $205,906 | $203,982 | +1% | $230,807 | +13% | | Retail merchandise sales | $135,956 | $134,445 | +1% | $153,234 | +14% | | Pawn loan fees | $59,874 | $60,714 | (1)% | $67,497 | +11% | | Segment pre-tax operating income | $40,980 | $37,113 | +10% | $45,211 | +22% | | Segment pre-tax operating margin | 20% | 18% | +200 bps | 20% | +200 bps | Latin America Pawn Segment Financial Performance (YTD 2025 vs YTD 2024) | Metric (in thousands) | 2025 (USD) | 2024 (USD) | YoY Change (USD) | 2025 (Constant Currency) | YoY Change (Constant Currency) | | :---------------------------- | :---------- | :---------- | :--------------- | :----------------------- | :----------------------------- | | Total Revenue | $390,034 | $400,622 | (3)% | $448,391 | +12% | | Retail merchandise sales | $256,488 | $265,294 | (3)% | $296,887 | +12% | | Pawn loan fees | $113,797 | $117,275 | (3)% | $131,755 | +12% | | Segment pre-tax operating income | $72,385 | $69,017 | +5% | $81,718 | +18% | | Segment pre-tax operating margin | 19% | 17% | +200 bps | 18% | +100 bps | - The average Mexican peso to U.S. dollar exchange rate for Q2 2025 was **19.5 pesos/dollar**, an unfavorable change of **13%** versus the prior-year period[11](index=11&type=chunk) [Earning Assets and Portfolio Metrics (U.S. Dollar & Constant Currency)](index=16&type=section&id=3.2.2%20Earning%20Assets%20and%20Portfolio%20Metrics%20(U.S.%20Dollar%20%26%20Constant%20Currency)) Pawn receivables in Latin America increased significantly on a constant currency basis, reflecting strong underlying demand Latin America Pawn Earning Assets (As of June 30, 2025 vs 2024) | Earning Asset (in thousands) | 2025 (USD) | 2024 (USD) | YoY Increase (USD) | 2025 (Constant Currency) | YoY Increase (Constant Currency) | | :--------------------------- | :---------- | :---------- | :----------------- | :----------------------- | :------------------------------- | | Pawn loans | $150,575 | $135,389 | +11% | $154,466 | +14% | | Inventories | $102,848 | $91,996 | +12% | $105,501 | +15% | | Total Earning Assets | $253,423 | $227,385 | +11% | $259,967 | +14% | - Same-store pawn receivables increased **10%** on a U.S. dollar basis and **13%** on a constant currency basis[12](index=12&type=chunk) - Annualized inventory turnover was **4.1 times** for the trailing twelve months, down from **4.3 times** in the prior-year period. Inventories aged greater than one year remained extremely low at **1%**[13](index=13&type=chunk)[55](index=55&type=chunk) [Retail POS Payment Solutions (AFF) Segment](index=4&type=section&id=3.3%20Retail%20POS%20Payment%20Solutions%20(AFF)%20Segment) The AFF segment achieved a substantial 46% increase in Q2 pre-tax operating income and 53% year-to-date, driven by gross margin improvement and operating expense reductions [Financial Performance](index=4&type=section&id=3.3.1%20Financial%20Performance) AFF's Q2 segment pre-tax operating income increased 46% to $38 million, and year-to-date income increased 53% to $90 million AFF Segment Financial Performance (Q2 2025 vs Q2 2024) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :---------------------------- | :---------- | :---------- | :--------- | | Total Revenue | $215,859 | $251,369 | (14)% | | Net Revenue | $62,902 | $61,862 | +2% | | Segment pre-tax operating income | $37,939 | $25,909 | +46% | AFF Segment Financial Performance (YTD 2025 vs YTD 2024) | Metric (in thousands) | 2025 | 2024 | YoY Change | | :---------------------------- | :---------- | :---------- | :--------- | | Total Revenue | $446,190 | $514,427 | (13)% | | Net Revenue | $140,126 | $130,548 | +7% | | Segment pre-tax operating income | $90,240 | $59,058 | +53% | - Operating expenses decreased **31%** in Q2 due to the elimination of expenses related to prior-year bankruptcies and realization of operating synergies[16](index=16&type=chunk) [Gross Transaction Volumes and Earning Assets](index=18&type=section&id=3.3.2%20Gross%20Transaction%20Volumes%20and%20Earning%20Assets) Gross transaction volume for lease and loan originations increased 3% in Q2, with a significant 34% increase excluding the impact of prior-year merchant bankruptcies AFF Gross Transaction Volumes (Q2 2025 vs Q2 2024) | Transaction Type (in thousands) | 2025 | 2024 | YoY Change | | :------------------------------ | :---------- | :---------- | :--------- | | Leased merchandise | $110,516 | $146,778 | (25)% | | Finance receivables | $149,943 | $105,258 | +42% | | Total gross transaction volume | $260,459 | $252,036 | +3% | - Excluding 2024 originations from A-Freight and Conn's bankruptcies, Q2 2025 origination volume increased approximately **34%**[16](index=16&type=chunk) AFF Earning Assets (As of June 30, 2025 vs 2024) | Earning Asset (in thousands) | 2025 | 2024 | YoY Change | | :--------------------------- | :---------- | :---------- | :--------- | | Leased merchandise, net | $100,852 | $143,156 | (30)% | | Finance receivables, net | $154,518 | $105,401 | +47% | [Portfolio Metrics](index=18&type=section&id=3.3.3%20Portfolio%20Metrics) The combined lease and loan loss provision expense decreased to 29% of total gross transaction volume in Q2 2025, reflecting lower-than-expected charge-offs - The combined lease and loan loss provision expense was **29%** for Q2 2025, down from **31%** in Q2 2024, due to lower-than-expected charge-offs on older portfolio vintages[16](index=16&type=chunk) - The combined allowance as a percentage of combined leased merchandise and finance receivables at June 30, 2025, was **43%**, down from **45%** a year ago[16](index=16&type=chunk) AFF Portfolio Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :------------------------------------ | :------ | :------ | | Leased merchandise provision rate | 30% | 33% | | Leased merchandise avg monthly net charge-off rate | 6.2% | 5.4% | | Leased merchandise delinquency rate | 23.2% | 23.0% | | Finance receivables provision rate | 28% | 30% | | Finance receivables avg monthly net charge-off rate | 4.6% | 4.5% | | Finance receivables delinquency rate | 20.6% | 20.0% | [Store Base and Merchant Partner Growth](index=2&type=section&id=Store%20Base%20and%20Merchant%20Partner%20Growth) FirstCash expanded its global pawn store network by 25 locations YTD and significantly grew its AFF merchant partner base by 19% year-over-year [Pawn Store Locations](index=2&type=section&id=4.1%20Pawn%20Store%20Locations) FirstCash continued to expand its pawn store network, adding 13 locations in Q2 and 25 year-to-date, primarily through new openings in Latin America (Mexico) and acquisitions in the U.S - As of June 30, 2025, FirstCash operated **3,027 pawn locations** globally, including **1,194 in the U.S.** and **1,833 in Latin America**[8](index=8&type=chunk)[62](index=62&type=chunk) - A total of **13 pawn locations** were added in Q2 2025 (10 new openings, 3 acquisitions), and **25 stores** year-to-date[8](index=8&type=chunk)[63](index=63&type=chunk) - Nine new stores were opened in Latin America (all in Mexico) during Q2, and three U.S. stores were acquired in Illinois[8](index=8&type=chunk) - The Company purchased the underlying real estate of **14 U.S. stores** during Q2, bringing the total company-owned locations to **421**[8](index=8&type=chunk) [Retail POS Payment Solutions Merchant Partnerships](index=3&type=section&id=4.2%20Retail%20POS%20Payment%20Solutions%20Merchant%20Partnerships) The Retail POS Payment Solutions (AFF) segment significantly expanded its merchant partner network, increasing active locations by 19% year-over-year, or 29% excluding prior-year bankruptcies - As of June 30, 2025, AFF had approximately **15,300 active retail and e-commerce merchant partner locations**, a **19% increase** from a year ago[9](index=9&type=chunk)[64](index=64&type=chunk) - Excluding furniture locations that closed due to merchant partner bankruptcies in the prior year, the number of active doors increased **29%**[9](index=9&type=chunk) [2025 Outlook](index=5&type=section&id=2025%20Outlook) FirstCash maintains a positive 2025 outlook with anticipated income growth across all segments, improved revenue forecasts for pawn operations, and consistent AFF origination volumes [Overall Outlook](index=5&type=section&id=5.1%20Overall%20Outlook) FirstCash maintains a highly positive outlook for 2025, anticipating continued year-over-year income growth driven by earning asset balances and store additions - The outlook for 2025 remains highly positive, with expected year-over-year growth in income driven by continued growth in earning asset balances and store additions[18](index=18&type=chunk) - The H&T acquisition is anticipated to close by the end of Q3 2025, but its revenue and contributions are not yet included in the current 2025 estimates[18](index=18&type=chunk) [U.S. Pawn Outlook](index=5&type=section&id=5.2%20U.S.%20Pawn%20Outlook) U.S. pawn operations are expected to remain the primary earnings driver, with increased outlooks for revenue growth, pawn fee growth, and retail sales, reflecting strong first-half results and anticipated store additions - Pawn operations are expected to be over **80%** of total segment level pre-tax income for the full year 2025[21](index=21&type=chunk) - Full-year pawn fee growth is now expected to be in the range of **10% to 12%** (up from 9% to 11%)[21](index=21&type=chunk) - Retail sales are expected to grow in a **high single-digit range** (up from mid-single digits), with retail sales margins targeted at the upper end of the **41% to 42%** guidance range[21](index=21&type=chunk) [Latin America Pawn Outlook](index=6&type=section&id=5.3%20Latin%20America%20Pawn%20Outlook) The Company is increasing its full-year revenue outlook for Latin America pawn due to recent favorable movement in the Mexican peso exchange rate and better-than-expected underlying business growth - Full-year revenue outlook for the Latin America pawn segment is increasing due to favorable Mexican peso movement and strong business growth[27](index=27&type=chunk) - Full-year pawn fee growth is now expected to increase **10% to 12%** on a local currency basis, and projected to be **flat to up slightly** on a U.S. dollar basis (versus prior expectations of flat to down slightly)[27](index=27&type=chunk) - Retail sales in Latin America are expected to track similarly to pawn fees in 2025 with consistent retail margins[27](index=27&type=chunk) [Retail POS Payment Solutions (AFF) Outlook](index=6&type=section&id=5.4%20Retail%20POS%20Payment%20Solutions%20(AFF)%20Outlook) AFF's full-year origination volume is expected to be consistent with 2024, with significant growth anticipated when excluding prior-year bankruptcies - Full-year origination volume for 2025 is expected to be consistent with 2024. Excluding 2024 originations from Conn's and A-Freight, volumes are expected to increase **20% to 25%**[27](index=27&type=chunk) - The revised forecast for full-year net revenues is now expected to decline only **6% to 8%** (improved from 8% to 12%)[27](index=27&type=chunk) - Net lease and loan charge-off rates for the second half of 2025 are expected to remain consistent with the second half of last year[27](index=27&type=chunk) [Tax Rates and Currency Outlook](index=6&type=section&id=5.5%20Tax%20Rates%20and%20Currency%20Outlook) The Company projects a full-year effective income tax rate between 24.5% and 25.5% and anticipates a significant earnings impact from Mexican peso exchange rate fluctuations - The full-year 2025 effective income tax rate is expected to range from **24.5% to 25.5%**[27](index=27&type=chunk) - Each full point change in the Mexican peso exchange rate is projected to have an annual earnings impact of approximately **$0.10 per share**[27](index=27&type=chunk) [Company Overview](index=7&type=section&id=Company%20Overview) FirstCash is a leading international pawn operator with over 3,000 stores, with its overview including a disclaimer on forward-looking statements and associated risks [About FirstCash](index=7&type=section&id=6.1%20About%20FirstCash) FirstCash is a leading international operator of over 3,000 pawn stores in the U.S. and Latin America, serving cash and credit-constrained consumers - FirstCash is the leading international operator of over **3,000 pawn stores** in the U.S. and Latin America, serving cash and credit-constrained consumers[31](index=31&type=chunk) - Pawn segments (U.S. and Latin America) account for approximately **80% of annualized segment earnings**, with the remaining **20%** from AFF, which provides lease-to-own and retail finance payment solutions[31](index=31&type=chunk) - FirstCash is a component company in both the Standard & Poor's MidCap 400 Index® and the Russell 2000 Index®[32](index=32&type=chunk) [Forward-Looking Information](index=7&type=section&id=6.2%20Forward-Looking%20Information) This section provides a disclaimer regarding forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially from expectations - Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from expectations[33](index=33&type=chunk)[34](index=34&type=chunk) - Key risk factors include regulatory environment, legal proceedings, acquisition integration (H&T acquisition approvals and benefits), changes in consumer behavior, labor shortages, economic conditions (inflation, interest rates), currency fluctuations (Mexican peso), and competition[34](index=34&type=chunk)[35](index=35&type=chunk) - The Company disclaims any obligation to update or revise forward-looking statements, except as required by law[35](index=35&type=chunk) [Financial Statements (GAAP)](index=9&type=section&id=Financial%20Statements%20(GAAP)) This section provides the Company's GAAP consolidated statements of income and balance sheets for the periods ended June 30, 2025, and December 31, 2024 [Consolidated Statements of Income](index=9&type=section&id=7.1%20Consolidated%20Statements%20of%20Income) The consolidated statements of income present the Company's revenues, cost of revenues, and expenses for the three and six months ended June 30, 2025 and 2024, showing net income and diluted earnings per share on a GAAP basis Consolidated Statements of Income (Three Months Ended June 30, in thousands) | Revenue Category | 2025 | 2024 | | :------------------------------ | :---------- | :---------- | | Retail merchandise sales | $385,125 | $363,463 | | Pawn loan fees | $190,822 | $181,046 | | Leased merchandise income | $139,784 | $194,570 | | Interest and fees on finance receivables | $76,075 | $56,799 | | Wholesale scrap jewelry sales | $38,816 | $35,134 | | **Total revenue** | **$830,622**| **$831,012**| | Net income | $59,805 | $49,073 | Consolidated Statements of Income (Six Months Ended June 30, in thousands) | Revenue Category | 2025 | 2024 | | :------------------------------ | :------------ | :------------ | | Retail merchandise sales | $756,181 | $730,284 | | Pawn loan fees | $382,693 | $360,581 | | Leased merchandise income | $296,702 | $400,241 | | Interest and fees on finance receivables | $149,488 | $114,186 | | Wholesale scrap jewelry sales | $81,981 | $62,090 | | **Total revenue** | **$1,667,045**| **$1,667,382**| | Net income | $143,396 | $110,441 | [Consolidated Balance Sheets](index=10&type=section&id=7.2%20Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of the Company's assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024, highlighting changes in key asset and liability categories Consolidated Balance Sheets (As of June 30, 2025 vs December 31, 2024, in thousands) | Asset Category | June 30, 2025 | Dec 31, 2024 | | :------------------------------ | :------------ | :----------- | | Cash and cash equivalents | $101,467 | $175,095 | | Pawn loans | $550,718 | $517,867 | | Finance receivables, net | $154,518 | $147,501 | | Inventories | $355,733 | $334,580 | | Leased merchandise, net | $100,689 | $128,437 | | Total assets | $4,514,249 | $4,476,986 | | Revolving unsecured credit facilities | $152,000 | $198,000 | | Senior unsecured notes | $1,532,865 | $1,531,346 | | Total liabilities | $2,374,081 | $2,422,822 | | Total stockholders' equity | $2,140,168 | $2,054,164 | [Non-GAAP Financial Measures Reconciliations](index=20&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section provides reconciliations of GAAP to non-GAAP financial measures, including adjusted net income, EBITDA, free cash flow, and return metrics, along with constant currency methodology [Adjusted Net Income and Adjusted Diluted Earnings Per Share](index=21&type=section&id=8.1%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20Earnings%20Per%20Share) This section reconciles GAAP net income and diluted EPS to adjusted figures by excluding non-operating and non-cash items such as merger and acquisition expenses, AFF purchase accounting adjustments, CFPB litigation settlement, and other income/expenses, providing a clearer view of core operating performance - Adjusted net income and diluted EPS exclude items considered non-operating or non-cash, such as merger and acquisition expenses, AFF purchase accounting adjustments, and the CFPB litigation settlement[69](index=69&type=chunk)[70](index=70&type=chunk) Adjusted Net Income and Diluted EPS (Q2 2025 vs Q2 2024, in thousands except per share) | Metric | 2025 (GAAP) | Adjustments | 2025 (Adjusted) | 2024 (GAAP) | Adjustments | 2024 (Adjusted) | | :------------------------ | :---------- | :---------- | :-------------- | :---------- | :---------- | :-------------- | | Net income | $59,805 | $19,815 | $79,620 | $49,073 | $12,825 | $61,898 | | Diluted earnings per share| $1.34 | $0.45 | $1.79 | $1.08 | $0.29 | $1.37 | [EBITDA and Adjusted EBITDA](index=22&type=section&id=8.2%20EBITDA%20and%20Adjusted%20EBITDA) EBITDA and Adjusted EBITDA are presented as non-GAAP measures to assess financial performance, with Adjusted EBITDA further excluding non-operating items like merger and acquisition expenses and the CFPB litigation settlement, aligning with the calculation of the consolidated total debt ratio - EBITDA is defined as net income before income taxes, depreciation and amortization, interest expense, and interest income[72](index=72&type=chunk) - Adjusted EBITDA further adjusts for merger and acquisition expenses, AFF purchase accounting adjustments, and the CFPB litigation settlement[72](index=72&type=chunk) EBITDA and Adjusted EBITDA (Q2 2025 vs Q2 2024, in thousands) | Metric | 2025 (GAAP) | Adjustments | 2025 (Adjusted) | 2024 (GAAP) | Adjustments | 2024 (Adjusted) | | :-------------- | :---------- | :---------- | :-------------- | :---------- | :---------- | :-------------- | | Net income | $59,805 | | | $49,073 | | | | Income taxes | $21,274 | | | $17,105 | | | | D&A | $25,864 | | | $26,547 | | | | Interest expense| $26,337 | | | $25,187 | | | | Interest income | $(527) | | | $(261) | | | | **EBITDA** | **$132,753**| | | **$117,651**| | | | Adjustments | | $12,376 | | | $4,231 | | | **Adjusted EBITDA**| | | **$145,129** | | | **$121,882** | [Free Cash Flow and Adjusted Free Cash Flow](index=23&type=section&id=8.3%20Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow) Free cash flow and adjusted free cash flow are presented to evaluate cash generated from operations available for debt repayment, investments, and shareholder returns - Free cash flow is defined as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements, and net fundings/repayments of pawn loan and finance receivables[74](index=74&type=chunk) - Adjusted free cash flow further adjusts for merger and acquisition expenses paid, net of tax benefit[74](index=74&type=chunk) Free Cash Flow and Adjusted Free Cash Flow (Trailing Twelve Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :------------------------------ | :---------- | :---------- | | Cash flow from operating activities | $554,733 | $439,192 | | Pawn loans, net | $(81,704) | $(56,053) | | Finance receivables, net | $(157,728) | $(95,880) | | Purchases of PP&E | $(51,447) | $(74,464) | | **Free cash flow** | **$263,854**| **$212,795**| | Merger and acquisition expenses paid, net of tax benefit | $2,690 | $7,380 | | **Adjusted free cash flow** | **$266,544**| **$220,175**| [Adjusted Return on Equity and Adjusted Return on Assets](index=24&type=section&id=8.4%20Adjusted%20Return%20on%20Equity%20and%20Adjusted%20Return%20on%20Assets) Adjusted return on equity and adjusted return on assets are presented to provide greater transparency into the Company's financial performance by excluding non-operating items from net income - Adjusted return on equity and adjusted return on assets exclude non-operating items from net income to provide a more complete understanding of core operating performance[77](index=77&type=chunk) Adjusted Return on Equity and Assets (Trailing Twelve Months Ended June 30, 2025, in thousands) | Metric | Amount | | :------------------------------------------ | :---------- | | Adjusted net income | $342,992 | | Average stockholders' equity | $2,046,067 | | **Adjusted return on equity** | **17%** | | Average total assets | $4,426,553 | | **Adjusted return on assets** | **8%** | [Constant Currency Results Methodology and Exchange Rates](index=24&type=section&id=8.5%20Constant%20Currency%20Results%20Methodology%20and%20Exchange%20Rates) Constant currency results are non-GAAP measures used to evaluate the underlying performance of Latin American operations by excluding foreign currency translation effects, translating current-year results at prior-year average exchange rates - Constant currency results are non-GAAP measures that exclude the effects of foreign currency translation by translating current-year results at prior-year average exchange rates[79](index=79&type=chunk)[80](index=80&type=chunk) - This methodology is used to evaluate the underlying performance of business operations in Latin America (Mexico, Guatemala, Colombia)[79](index=79&type=chunk) Key Exchange Rates (Mexican Peso / U.S. Dollar) | Period | 2025 | 2024 | Favorable / (Unfavorable) | | :---------------- | :--- | :--- | :------------------------ | | End-of-period | 18.9 | 18.4 | (3)% | | Three months ended| 19.5 | 17.2 | (13)% | | Six months ended | 20.0 | 17.1 | (17)% |

Core Insights - FirstCash Holdings reported revenue of $830.62 million for the quarter ended June 2025, reflecting a slight decrease of 0.1% year-over-year, while EPS increased to $1.79 from $1.37 in the same quarter last year, indicating a positive trend in earnings despite revenue decline [1] - The revenue exceeded the Zacks Consensus Estimate of $824.3 million by 0.77%, and the EPS surpassed the consensus estimate of $1.66 by 7.83%, showcasing better-than-expected performance in earnings [1] Revenue Breakdown - Revenue from leased merchandise income was reported at $139.78 million, which is 28.2% lower than the previous year and below the average estimate of $145.87 million from two analysts [4] - Revenue from pawn loan fees reached $190.82 million, slightly above the estimated $190.61 million, marking a year-over-year increase of 5.4% [4] - Revenue from interest and fees on finance receivables was $76.08 million, exceeding the average estimate of $74.67 million, with a significant year-over-year increase of 33.9% [4] Stock Performance - Over the past month, FirstCash shares have returned -0.8%, contrasting with the Zacks S&P 500 composite's increase of 5.7%, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]