FirstCash, Stock Of The Day, Flashes Buy As Pawn Shop Excels | Investor's Business Daily BREAKING: Futures Rise, Oil Prices Fall On Iran Deal Hopes FirstCash Holdings FCFS $ 195.00 $1.38 0.71% 40% IBD Stock Analysis IBD Composite Rating 94/99 Industry Group Ranking 139/197 FirstCash Holdings Emerging Pattern Three Weeks Tight Three Weeks Tight After a breakout a stock will sometimes consolidate tightly. A three-weeks tight is when a stock closes within 1% to 1.5% of the prior week's close. A four-weeks-tigh ...

Core Insights - Senator Markwayne Mullin has resumed stock purchases in 2026, following earlier acquisitions in January [1] - Mullin supports U.S. military actions in Iran, which may positively impact his investments in oil and defense companies [2] Stock Transactions - Recent stock transactions include purchases of Adobe, Amkor Technology, APi Group, Citigroup, Carpenter Technology, FirstCash Holdings, Stride, McKesson, Monolithic Power Systems, and VSE [4][6] - Specific transaction details indicate purchases ranging from $15,001 to $50,000 for multiple companies, while also selling shares in Applied Industrial Technologies, Coherent Corp, Credo Technology, Dell Technologies, Goldman Sachs, and MasTech [6] Market Capitalization - Several stocks purchased by Mullin, such as FirstCash, Stride, and VSE, have small market capitalizations, each valued under $10 billion [5] - VSE has secured significant government contracts, including a $565 million deal with the Air Force in 2023, highlighting its potential for growth [7]

Group 1 - As of March 3, 2026, three stocks in the financial sector are identified as potential warning signs for momentum-focused investors [1] - The Relative Strength Index (RSI) is highlighted as a key momentum indicator, with a threshold of 70 indicating that an asset may be overbought [2] - The three stocks identified as overbought in the financial sector are Firstcash Holdings Inc (NASDAQ:FCFS), NCR Atleos Corp (NYSE:NATL), and EZCORP Inc (NASDAQ:EZPW) [3]

Financial Performance - The Company reported revenue of $3,661,043,000 for the year ended December 31, 2025, an increase of 8% compared to $3,388,514,000 in 2024[284]. - Net income for 2025 was $330,375,000, reflecting a 28% increase from $258,815,000 in 2024[284]. - Diluted earnings per share rose to $7.42 in 2025, a 29% increase from $5.73 in 2024[284]. - EBITDA for 2025 was $677,727,000, up 23% from $551,008,000 in 2024[284]. - Total revenue for the year ended December 31, 2025, was $3,661,043,000, an increase from $3,388,514,000 in 2024, representing a growth of approximately 8%[296]. - Net revenue for the U.S. pawn segment was $1,021,513,000 in 2025, compared to $929,903,000 in 2024, reflecting a year-over-year increase of about 10%[296]. - Operating expenses for 2025 totaled $933,729,000, up from $900,978,000 in 2024, indicating a rise of approximately 4%[296]. - The company reported a net income before income taxes of $447,563,000 for 2025, compared to $342,776,000 in 2024, marking an increase of around 31%[296]. - Pawn loan fees generated $853,736,000 in 2025, compared to $737,126,000 in 2024, which is an increase of approximately 16%[296]. - The cost of revenue for 2025 was $1,820,436,000, compared to $1,758,982,000 in 2024, reflecting an increase of about 3.5%[296]. - Retail merchandise sales reached $1,668,410,000 in 2025, up from $1,507,096,000 in 2024, representing a growth of approximately 11%[296]. - Adjusted net income for 2025 was $390.1 million, with adjusted diluted earnings per share at $8.76, compared to $302.7 million and $6.70 in 2024[351]. - EBITDA for 2025 was $677.7 million, up from $551.0 million in 2024, while adjusted EBITDA increased to $698.4 million from $558.4 million[352]. - Free cash flow for 2025 was $294.9 million, compared to $260.4 million in 2024, while adjusted free cash flow was $307.1 million, up from $262.1 million[355]. Acquisitions and Expansions - The Company completed the acquisition of H&T, a leading pawn operator in the UK with 286 store locations, on August 14, 2025[260]. - The company completed the acquisition of H&T on August 14, 2025, which contributed to the financial results for the latter part of the year[296]. - The company plans to continue expanding its market presence and enhancing its product offerings in the upcoming fiscal year[296]. - The company operates 1,837 pawn store locations in Latin America and plans to expand further in this region and the U.K.[197]. Loan and Credit Management - The Company has determined no allowance for credit losses on pawn loans is required, as the fair value of pledged collateral significantly exceeds the pawn loan amount[265]. - The Company began assisting customers with off-balance sheet installment loans in Q3 2025, which are underwritten and retained by a bank partner[278]. - U.S. pawn loan receivables increased 14% to $450.5 million as of December 31, 2025, compared to $396.7 million in 2024[301]. - Latin America pawn loan receivables surged 38% to $167.4 million as of December 31, 2025, compared to $121.2 million in 2024[308]. - The company funded a net increase in pawn loans of $137.9 million during 2025, compared to $72.0 million in 2024[345]. - Loans originated through the Bank's programs accounted for 6% of the Company's consolidated net revenues during 2025[232]. - The current loan program agreement with the Bank expires in August 2028, and either party may terminate it upon certain events[228]. Operating Expenses and Financial Ratios - Administrative expenses for 2025 were reported at $232,844,000, compared to $177,978,000 in 2024, indicating a significant increase of about 31%[296]. - U.S. inventories increased 17% to $286.1 million at December 31, 2025, compared to $245.5 million in 2024[300]. - Latin America inventories rose 45% to $129.3 million at December 31, 2025, compared to $89.1 million in 2024[307]. - Operating expenses in Latin America increased 5% to $272.1 million in 2025, influenced by inflation and minimum wage increases[310]. - The allowance for lease losses decreased 20% to $64.9 million as of December 31, 2025, from $80.7 million as of December 31, 2024, representing 36% of leased merchandise[316]. - Provision for lease losses decreased 26% to $120.7 million during 2025, with a provision rate of 27.7% of gross transaction volume[319]. - Operating expenses decreased 31% to $94.8 million during 2025, representing 11% of segment revenues[324]. - Administrative expenses increased 31% to $232.8 million during 2025, representing 6% of revenue[326]. Market Conditions and Risks - The current economic environment, characterized by elevated inflation and interest rates, has increased demand for pawn loans in the U.S., but tighter decisioning has adversely affected merchant sales volumes in certain categories[215]. - Inflation is not believed to have materially affected the company's overall results in 2025, but it could impact customer demand and operating costs in the future[365]. - The company faces risks related to foreign operations, including currency fluctuations and geopolitical instability, which could adversely affect financial performance[196]. - Economic conditions and demand may fluctuate by geographic region, exposing the Company to local economies and politics, particularly in Latin America[216]. - Changes in domestic and foreign tax laws, including the One Big Beautiful Bill Act, could negatively impact the Company's operating results starting in 2026 and 2027[211]. Goodwill and Asset Management - The Company had $2,023.4 million in goodwill on its consolidated balance sheet as of December 31, 2025, all related to acquisitions and business combinations, which requires significant management estimates and judgment[208]. - The Company is subject to goodwill impairment risk, and a write-down could result in a non-cash charge adversely affecting results of operations[208]. - Approximately 75% of the Company's pawn loans were collateralized with jewelry, primarily gold, and 62% of its inventories consisted of jewelry, which could be negatively impacted by declines in commodity market prices[209]. Financing Activities - The company repurchased 912,000 shares of common stock at an aggregate cost of $115.0 million during 2025[338]. - Net cash used in investing activities increased by $386.5 million, or 88%, from $441.6 million in 2024 to $828.0 million in 2025[344]. - Net cash provided by financing activities was $176.4 million in 2025, a decrease of $214.6 million, or 562%, from net cash used of $38.2 million in 2024[346]. - The company paid $475.1 million for pawn store acquisitions in 2025, significantly higher than $76.0 million in 2024[344]. - The company paid $115.8 million for share repurchases in 2025, compared to $85.0 million in 2024[346]. Decisioning and Operational Risks - AFF's transaction volume is dependent on sales at its merchant partners, and declines in such sales could materially affect AFF's results of operations[222]. - AFF's ability to attract and retain merchant partners is crucial for its business growth, and failure to do so could materially affect its financial condition and future prospects[223]. - The effectiveness of AFF's decisioning platform relies on a skilled data science team, and any failure could lead to increased credit losses[230]. - The FDIC has issued examination guidance that could significantly impact AFF's Bank-originated products if deemed inconsistent with its regulations[234]. - If AFF is unable to collect on its leases, RISAs, and bank loans, it could face increased credit losses and adverse effects on revenue and profitability[231]. - The Bank retains ownership of the loans, and AFF does not control pricing or functionality, which could affect revenue if the Bank changes its approach[228]. - If AFF's relationship with the Bank is terminated, it may need to find alternative arrangements, which could be challenging and impact its offerings[228].

Financial Performance - Fourth quarter revenues increased by 20% to $1.058 billion, marking the first fiscal quarter in history where consolidated revenues exceeded $1 billion[2][12] - Full year 2025 net income reached a record $330 million, a 28% increase compared to the prior year, while adjusted net income was $390 million, up 29%[12] - Diluted earnings per share for the fourth quarter increased by 26% to $2.35 on a GAAP basis and by 25% to $2.64 on an adjusted basis[12] - Total segment revenues increased by 14% in the fourth quarter and 12% for the full year, driven by strong same-store revenue growth[12] - Adjusted EBITDA for the full year increased by 25% to $698 million, while fourth quarter adjusted EBITDA totaled $210 million, a 27% increase[12] - Total revenue for the three months ended December 31, 2025, was $1,058,419,000, an increase of 19.7% compared to $883,811,000 for the same period in 2024[41] - Net income for the twelve months ended December 31, 2025, was $330,375,000, representing a 27.7% increase from $258,815,000 in 2024[41] - For the twelve months ended December 31, 2025, total revenue was $3,661,043,000, up from $3,388,514,000 in 2024, marking a year-over-year increase of 8.0%[51] - The net revenue for the twelve months ended December 31, 2025, was $1,840,607,000, compared to $1,629,532,000 in 2024, showing an increase of 12.9%[51] Operational Growth - The company added 28 pawn locations in the fourth quarter, including 17 acquisitions in the U.S. and 11 new openings in Latin America[12][4] - The company expanded its U.K. operations through the acquisition of H&T, which added 286 stores and contributed to strong fourth quarter results[4][17] - The Company added 344 pawn stores in 2025, increasing the total store count by 10% to over 3,300 locations globally[28] - The total locations increased by 19 during the three months ended December 31, 2025, with 11 new locations opened and 17 acquired[56] - The company operated 3,330 pawn store locations as of December 31, 2025, with 1,207 in the U.S., 1,732 in Mexico, and 286 in the U.K.[55] Cash Flow and Dividends - Operating cash flows reached a record $586 million for 2025, with adjusted free cash flows totaling $307 million[12] - The company declared a quarterly cash dividend of $0.42 per share, to be paid in February 2026[1] - The Board of Directors declared a $0.42 per share cash dividend for Q1 2026, representing an annualized dividend of $1.68 per share[20] - Free cash flow for the twelve months ended December 31, 2025, was $294,875,000, an increase from $260,400,000 in 2024, while adjusted free cash flow rose to $307,146,000 from $262,106,000[66] Debt and Liabilities - Outstanding debt at December 31, 2025 was $2.2 billion, with a net debt to adjusted EBITDA ratio of 3.0x[20] - Total liabilities increased to $3,024,001,000 as of December 31, 2025, compared to $2,422,822,000 in 2024, representing a rise of 24.9%[43] Revenue Sources - Pawn loan fees increased to $249,955,000 for the three months ended December 31, 2025, up 31.6% from $189,984,000 in the same period of 2024[41] - Retail merchandise sales reached $501,261,000 for the three months ended December 31, 2025, compared to $413,671,000 in 2024, marking a 21.1% increase[41] - Total gross transaction volume for the twelve months ended December 31, 2025, was $1,021,865,000, compared to $1,078,866,000 for the previous year[54] Financial Ratios and Metrics - The adjusted return on equity for the twelve months ended December 31, 2025, was 18%, while the adjusted return on assets was 8%[68] - The average outstanding pawn loan amount was $259, with U.S. at $312, LatAm at $112, and U.K. at $825[53] - The provision for loan losses for the twelve months ended December 31, 2025, was $162,706,000, compared to $143,827,000 in 2024, an increase of 13.1%[51] Currency Exchange Rates - The end-of-period exchange rate for the U.S. dollar to Mexican peso improved by 11% from 20.3 in 2024 to 18.0 in 2025[72] - The end-of-period exchange rate for the U.S. dollar to Colombian peso improved by 15% from 4,409 in 2024 to 3,757 in 2025[72] - The end-of-period exchange rate for the British pound sterling to U.S. dollar improved by 8% from 1.25 in 2024 to 1.35 in 2025[72] Miscellaneous - The company uses non-GAAP financial measures to provide greater transparency and a more complete understanding of its financial performance[59] - The company reported a provision for loan losses of $162,706,000 for the twelve months ended December 31, 2025, compared to $143,827,000 in 2024, indicating an increase of 13.1%[41] - The company utilized constant currency results to evaluate performance in Latin America and the U.K., providing a clearer picture of operational results[69]

Company Overview - FirstCash Holdings, Inc. operates a large network of retail pawn stores across the United States and Latin America, providing short-term secured loans and retailing forfeited collateral, with 2,825 stores as of December 31, 2021, supporting a diversified revenue base [1] - The company focuses on serving underbanked populations and leverages retail operations for both lending and merchandise sales, providing a defensible business model in the non-bank credit sector [1] Recent Stock Performance - As of January 7, 2026, FirstCash shares were priced at $165.66, reflecting a 57.16% increase over the past year, outperforming the S&P 500 by 45.26 percentage points [2] - Over the last five years, FirstCash's stock has generated a total return of 160%, equating to a compound annual growth rate (CAGR) of 21% [8] Institutional Transactions - Profit Investment Management, LLC sold its entire holding of 16,257 shares in FirstCash during the most recent quarter, with an estimated transaction value of $2.58 million [3][4] - This sale reduced Profit Investment's overall holdings from $2.6 million to zero, and the position previously accounted for 3.2% of the fund's assets under management (AUM) [4][6] Broader Market Context - The decision by Profit Investment to sell its entire stake in FirstCash may reflect a broader strategy to reduce risk and raise cash, as the firm sold around 69% of its total stock holdings during the quarter [6][7] - FirstCash's strong stock performance, advancing by 57% over the last year, supports the theory that the sale was part of a risk management strategy [7]

Company Performance - Experian PLC (EXPGY) has gained approximately 7.2% year-to-date, outperforming the average loss of 6.2% in the Business Services group [4] - The Zacks Consensus Estimate for EXPGY's full-year earnings has increased by 1.8% over the past three months, indicating improving analyst sentiment [3] Industry Comparison - Experian PLC belongs to the Business - Information Services industry, which has seen an average loss of about 23.5% this year, highlighting EXPGY's relative strength within this group [5] - In contrast, FirstCash Holdings, another outperforming stock in the Business Services sector, has returned 55.4% since the beginning of the year [4] Zacks Rank - Experian PLC currently holds a Zacks Rank of 2 (Buy), suggesting a positive outlook for the stock [3] - The Business Services group, which includes 257 companies, ranks 8 in the Zacks Sector Rank, reflecting the overall strength of this sector [2]

Company Overview - FirstCash Holdings (FCFS) is valued at $7.23 billion and operates over 3,000 pawnshops across the U.S., Latin America, and the U.K. [1] - The company provides retail point-of-sale (POS) payment solutions and has expanded into the U.K. through the acquisition of H&T Group [1]. Technical Performance - FCFS has a 100% "Buy" opinion from Barchart, indicating strong technical momentum [6][7]. - The stock has gained 53.56% over the past year and has recently traded at $163.40, with a 50-day moving average of $157.11 [7]. - FCFS hit an all-time high of $166.08 on November 6 [4]. Market Indicators - The company has a Weighted Alpha of +57.01 and a trailing price-earnings ratio of 19.69x [7]. - The Relative Strength Index (RSI) is at 58.82, with a technical support level around $161.21 [7]. Financial Projections - Revenue is projected to grow by 6.75% this year and by an additional 11.42% next year [8]. - Earnings are estimated to increase by 29.40% this year and by another 16.71% next year [8]. - The company offers a dividend yield of 1.03% [8].

Core Insights - U.S. stock markets are experiencing a significant bull run in 2023, with major indexes near all-time highs [1] - Small-cap and mid-cap benchmarks have shown notable gains, with Russell 2000 up 14.3% and S&P 400 up 7.6% year to date [2] - Mid-cap stocks are seen as a good diversification strategy, combining benefits of both small and large-cap stocks [2][3] Mid-Cap Stocks Overview - Top-ranked mid-cap stocks have high potential for profitability and market share growth, with less exposure to international risks compared to large caps [3] - In a thriving economy, mid-cap stocks are expected to outperform small caps due to established management and access to capital [4] Recommended Mid-Cap Stocks - Five mid-cap stocks with favorable Zacks Ranks for 2026 are FirstCash Holdings Inc. (FCFS), Lyft Inc. (LYFT), Installed Building Products Inc. (IBP), Lumen Technologies Inc. (LUMN), and Advanced Energy Industries Inc. (AEIS) [5][9] - Each stock carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [5] Company-Specific Insights FirstCash Holdings Inc. (FCFS) - Operates pawn stores and payment solutions in the U.S. and Latin America, with expected revenue and earnings growth rates of 5.7% and 21.8% respectively for next year [8][10] Lyft Inc. (LYFT) - Engages in ridesharing in the U.S. and Canada, with expected revenue and earnings growth rates of 14.6% and 25.9% respectively for next year [11][13] - Aims to enter the robotaxi market through partnerships, avoiding high R&D costs [12] Installed Building Products Inc. (IBP) - Operates as a residential insulation installer, with expected revenue and earnings growth rates of 1.1% and 0.1% respectively for next year [14][15] Lumen Technologies Inc. (LUMN) - Focused on AI opportunities, with $10 billion in Private Connectivity Fabric deals and plans to eliminate $1 billion in costs [16][17] - Expected revenue and earnings growth rates of -5.2% and -71.9% respectively for next year [18] Advanced Energy Industries Inc. (AEIS) - Benefits from semiconductor and data center demand, with expected revenue growth of approximately 20% and earnings growth of 20.2% for next year [19][20][21]

Group 1: Company Performance - Coherent (COHR) has gained approximately 96.2% year-to-date, significantly outperforming the average loss of 10.6% in the Business Services sector [4] - The Zacks Consensus Estimate for COHR's full-year earnings has increased by 12.9% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] - Coherent holds a Zacks Rank of 1 (Strong Buy), reflecting its strong performance and favorable market conditions [3] Group 2: Industry Context - Coherent is part of the Technology Services industry, which includes 124 companies and currently ranks 89 in the Zacks Industry Rank, with an average gain of 21.5% year-to-date [5] - In contrast, FirstCash Holdings (FCFS), another outperforming stock in the Business Services sector, belongs to the Financial Transaction Services industry, which has seen a decline of 12.6% year-to-date and ranks 176 [6] - Investors should continue to monitor Coherent and FirstCash Holdings as they exhibit solid performance within their respective industries [6]