Store Operations - As of September 30, 2025, the Company operated a total of 3,311 pawn store locations, including 1,193 in the U.S., 1,729 in Mexico, and 286 in the U.K.[89] - The Company completed the acquisition of H&T, the leading pawn operator in the U.K. with 286 store locations, on August 14, 2025[85]. - The company opened 21 new stores in Latin America and two in the U.S. during the nine months ended September 30, 2025, and acquired six pawn stores in the U.S. for $35.1 million[157]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $935.579 million, an increase from $837.321 million in the same period of 2024, representing an increase of approximately 11.7%[94][95]. - Total revenue for the nine months ended September 30, 2025, was $2.602 billion, with significant contributions from retail merchandise sales and pawn loan fees[129]. - Total revenue for the nine months ended September 30, 2025, was $2,504.7 million, a slight increase from $2,504.0 million in the same period of 2024[130]. - Total revenue for the Latin America pawn segment was $229.674 million for the three months ended September 30, 2025, a decrease of 1.3% compared to the prior year[184]. - Net revenue for the segment was $121.743 million for the three months ended September 30, 2025, reflecting a decline of 1.2% year-over-year[184]. - Segment pre-tax operating income was $46.973 million for the three months ended September 30, 2025, down 0.9% from the previous year[184]. Revenue Breakdown - Retail merchandise sales for the three months ended September 30, 2025, were $410.968 million, compared to $363.141 million in the same period of 2024, reflecting a growth of about 13.2%[94][95]. - U.S. retail merchandise sales increased 8% to $253.0 million during Q3 2025 compared to $235.0 million in Q3 2024[98]. - Latin America retail merchandise sales increased 12% to $144.6 million during Q3 2025 compared to $129.1 million in Q3 2024[105]. - U.S. retail merchandise sales increased by 7% to $754.1 million for the nine months ended September 30, 2025, compared to $702.1 million in 2024[132]. - Latin America retail merchandise sales increased by 2% to $401.1 million for the nine months ended September 30, 2025, compared to $394.4 million in 2024[137]. Loan Performance - The Company’s pawn loan fees for the three months ended September 30, 2025, were $221.088 million, up from $186.561 million in the same period of 2024, marking an increase of about 18.5%[94][95]. - U.S. pawn loan receivables increased 12% to $426.3 million as of September 30, 2025, compared to $381.0 million as of September 30, 2024[100]. - Latin America pawn loan receivables increased 27% to $173.2 million as of September 30, 2025, compared to $136.5 million as of September 30, 2024[107]. - U.S. pawn loan fees increased 8% to $138.9 million during Q3 2025 compared to $128.4 million in Q3 2024[101]. - Latin America pawn loan fees increased 16% to $67.2 million during Q3 2025 compared to $58.2 million in Q3 2024[108]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $236.528 million, compared to $224.926 million for the same period in 2024, indicating an increase of approximately 5.2%[94][95]. - U.S. operating expenses increased 4% to $133.0 million during Q3 2025 compared to $128.1 million in Q3 2024[102]. - Latin America operating expenses increased 12% to $70.3 million during Q3 2025 compared to $63.1 million in Q3 2024[109]. - Administrative expenses rose by 39% to $58.8 million in Q3 2025, primarily due to the addition of H&T's expenses and inflationary impacts[124]. - Operating expenses for the retail POS payment solutions segment decreased by 31% to $71.4 million during the nine months ended September 30, 2025, compared to $103.9 million in 2024[148]. Profitability - The net income before income taxes for the three months ended September 30, 2025, was $112.479 million, compared to $85.180 million for the same period in 2024, showing an increase of approximately 32%[94][95]. - Adjusted net income for Q3 2025 was $100.6 million, up from $75.2 million in Q3 2024, representing a 33.8% increase[178]. - Adjusted diluted earnings per share for Q3 2025 increased to $2.26, compared to $1.67 in Q3 2024, reflecting a 35.3% growth[178]. - EBITDA for Q3 2025 was $172.8 million, a 25.1% increase from $138.1 million in Q3 2024[179]. - Adjusted EBITDA for Q3 2025 reached $180.6 million, up from $139.3 million in Q3 2024, marking a 29.6% rise[179]. - The company reported a net income of $82.8 million for Q3 2025, up from $64.8 million in Q3 2024, a growth of 27.5%[179]. Cash Flow and Capital Management - Cash flow provided by operating activities increased by $37.5 million, or 11%, to $379.3 million for the nine months ended September 30, 2025, driven by an increase in net income[168]. - Cash flow used in investing activities surged 97% to $662.4 million for the nine months ended September 30, 2025, primarily for pawn store acquisitions[169]. - The company repurchased 755,000 shares of common stock at an aggregate cost of $89.6 million during the nine months ended September 30, 2025, compared to 721,000 shares for $85.0 million in the prior year[162]. - As of September 30, 2025, the company had working capital of $1,433.1 million and a current ratio of 5.0:1[167]. - The company declared a fourth quarter cash dividend of $0.42 per share, totaling $18.5 million, to be paid on November 26, 2025[161]. Market Risks and Strategic Insights - The company does not engage in speculative or leveraged transactions, maintaining a stable approach to market risks[186]. - There have been no material changes to the company's exposure to market risks since December 31, 2024[186]. - The company utilized constant currency results to evaluate performance in Latin America and the U.K., providing insights into underlying business operations[182].

Financial Performance - Third quarter revenue reached $935.6 million, a 12% increase year-over-year, while year-to-date revenue increased 4% to $2.6 billion[5] - Net income for the third quarter was $82.8 million, up 28% from the prior year, with year-to-date net income increasing 29% to $226.2 million[5] - Diluted earnings per share for the third quarter increased 29% to $1.86, and year-to-date diluted earnings per share rose 31% to $5.07[5] - Adjusted EBITDA for the third quarter increased 30% year-over-year, totaling $172.8 million, while year-to-date adjusted EBITDA rose 24% to $468.5 million[5] - Total revenue for the three months ended September 30, 2025, was $935.579 million, an increase of 11.7% compared to $837.321 million for the same period in 2024[40] - Net income for the three months ended September 30, 2025, was $82.807 million, representing a 27.7% increase from $64.827 million in the same period of 2024[40] - Retail merchandise sales increased to $410.968 million for the three months ended September 30, 2025, up 13.2% from $363.141 million in 2024[40] - Pawn loan fees rose to $221.088 million, a 18.5% increase compared to $186.561 million in the prior year[40] - Adjusted net income for the nine months ended September 30, 2025, was $273,032,000, up from $207,266,000 in the same period of 2024, reflecting a 32% growth[61] - Adjusted diluted EPS for the nine months ended September 30, 2025, was $6.12, compared to $4.58 in the same period of 2024, marking a 33% increase[61] - EBITDA for Q3 2025 was $172,821,000, up from $138,134,000 in Q3 2024, indicating a 25% increase[62] - Adjusted EBITDA for the nine months ended September 30, 2025, was $488,563,000, compared to $392,752,000 in the same period of 2024, a 24% increase[62] Asset and Liability Management - Consolidated assets exceeded $5 billion, totaling $5.2 billion, including record pawn receivables of $788 million[9] - Total current assets as of September 30, 2025, were $1,792.360 million, up from $1,329.350 million as of September 30, 2024[42] - Total assets increased to $5,182.316 million as of September 30, 2025, compared to $4,392.847 million at the end of 2024[42] - Total liabilities as of September 30, 2025, were $2,982.670 million, an increase from $2,393.653 million in the previous year[42] - The net debt to adjusted EBITDA ratio was 3.2x as of September 30, 2025, with expectations to drop below 3.0x post-H&T acquisition[16] Shareholder Returns - The company authorized a new $150 million share repurchase plan and declared a quarterly cash dividend of $0.42 per share[1] - The Board of Directors declared a fourth quarter cash dividend of $0.42 per share, representing an annualized dividend of $1.68 per share[22] - The Company repurchased 230,000 shares of common stock for a total cost of $30 million during the third quarter, with total repurchases over the past twelve months amounting to 755,000 shares at $90 million[22] - The company has authorized an additional $150 million for share repurchases, bringing the total available for repurchases to $175 million[22][32] Market Expansion and Operations - The company plans to open 20-25 new stores primarily in Latin America by the end of January 2026, in addition to acquiring 15 U.S. locations[9] - The Company completed the acquisition of H&T and now operates over 3,300 pawn locations across six countries[25][34] - The company plans to continue expanding its market presence and investing in new technologies to enhance customer experience and operational efficiency[50] - As of September 30, 2025, the company operated 3,311 pawn store locations across the U.S., Mexico, Guatemala, El Salvador, Colombia, and the U.K.[53] Revenue and Growth Expectations - The Company expects fourth quarter revenues to range from $85 to $90 million, driven by seasonal holiday shopping and strong pawn receivable balances[28] - Full year 2025 origination volume is expected to decline by 7% to 10% compared to 2024, but excluding certain prior year originations, volumes are expected to increase by 15% to 20%[28] - The consolidated effective income tax rate for full year 2025 is expected to range from 25% to 26%[28] Segment Performance - Pawn loan originations in Latin America increased over 20% on a local currency basis in October, with mid to high-teen pawn fee revenue growth expected in the fourth quarter[23] - Total revenue for the Latin America pawn segment was $226,653,000 for the three months ended September 30, 2025, a decrease of 1.3% compared to the prior year[70] - Pawn loan fees contributed $66,242,000 to revenue for the three months ended September 30, 2025, reflecting a decrease of 1.4% year-over-year[70] - Segment pre-tax operating income was $46,528,000 for the three months ended September 30, 2025, down 0.9% from the previous year[70] - Earning assets in the Latin America pawn segment totaled $279,330,000 as of September 30, 2025, a decrease of 6.0% compared to the prior year[70] Operational Metrics - The company reported a provision for loan losses of $40.347 million for the three months ended September 30, 2025, slightly down from $40.557 million in the same period of 2024[40] - Operating expenses for the three months ended September 30, 2025, were $236.528 million, an increase from $224.926 million in 2024[40] - The delinquency rate for finance receivables increased to 22.4% in September 2025 from 19.4% in September 2024[52] - The average outstanding pawn loan amount was $170, down from $229 in the prior year[51] - The provision rate for finance receivables was 28.0% for the three months ended September 30, 2025, compared to 28.4% in the same period of 2024[52] - Inventory turns for the trailing twelve months were 3.2 times as of September 30, 2025, compared to 3.1 times in the previous year[51]

Core Viewpoint - FirstCash Holdings (FCFS) reported quarterly earnings of $2.26 per share, exceeding the Zacks Consensus Estimate of $1.91 per share, and showing an increase from $1.67 per share a year ago, representing an earnings surprise of +18.32% [1][2] Financial Performance - The company achieved revenues of $935.58 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.43%, compared to $837.32 million in the same quarter last year [2] - Over the last four quarters, FirstCash has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance - FirstCash shares have increased approximately 42.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at $2.26 for the coming quarter and $8.04 for the current fiscal year [4][7] - The Zacks Rank for FirstCash is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Financial Transaction Services industry, to which FirstCash belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting that the overall industry outlook may impact stock performance [8]

Core Insights - FirstCash Holdings, Inc. reported record revenue and earnings for the three and nine months ended September 30, 2025, with a quarterly cash dividend of $0.42 per share and a new $150 million share repurchase plan announced [1][3]. Financial Performance - For the third quarter of 2025, revenue reached $935.6 million, a 12% increase from $837.3 million in the prior year [5][40]. - Net income for the third quarter was $82.8 million, up 28% from $64.8 million year-over-year, with diluted earnings per share increasing to $1.86 from $1.44 [5][8]. - Year-to-date revenue for the nine months ended September 30, 2025, was $2.6 billion, a 4% increase from $2.5 billion in 2024, with net income rising to $226.2 million from $175.3 million [7][40]. Segment Performance - The U.S. pawn segment saw same-store pawn receivables increase by 13%, while Latin America and the U.K. segments reported increases of 18% and 25%, respectively [2][14]. - The retail point-of-sale payment solutions segment, American First Finance (AFF), experienced strong earnings growth due to lower loss provisions and improved operating margins [2][31]. Growth and Expansion - The company completed the acquisition of H&T, the U.K.'s largest pawnbroker, adding 286 locations, and plans to open 20-25 new stores primarily in Latin America by January 2026 [3][13]. - FirstCash added a total of 332 pawn locations over the past twelve months, bringing the total to 3,311 locations across the U.S., Latin America, and the U.K. [13][32]. Cash Flow and Shareholder Returns - Operating cash flows for the twelve months ended September 30, 2025, grew 31% to $577 million, with adjusted free cash flows increasing 42% to $310 million [19][24]. - The company repurchased 230,000 shares for $30 million in the third quarter, totaling $90 million in repurchases year-to-date, and declared a quarterly dividend of $0.42 per share [20][33]. Outlook - The outlook for the remainder of 2025 is positive, with expected year-over-year growth in income driven by continued growth in earning asset balances and store additions [21][27]. - The company anticipates strong fourth-quarter performance, with expected revenues ranging from $85 to $90 million, driven by seasonal holiday shopping [28][30].

Core Viewpoint - FirstCash Holdings Inc. (NASDAQ:FCFS) is highlighted as a top credit services stock to consider amid the US rate cut, with a 'Buy' rating and a $200 price target set by analysts at Cannacord Genuity [1][2]. Company Overview - FirstCash operates over 3,300 pawnshops across the U.S., Latin America, and the UK, following its acquisition of H&T Group, positioning itself well in a lucrative industry [2]. - The company specializes in pawn stores that provide small loans secured by personal property, allowing borrowers to repay the loan with interest or forfeit their property without further consequences [3]. Industry Position - Analysts view the pawn business as strong and believe that FirstCash deserves a premium valuation due to its favorable market position [2].

Core Viewpoint - FirstCash Holdings (FCFS) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1] Earnings Expectations - The consensus EPS estimate for FirstCash is $1.91 per share, reflecting a year-over-year increase of +14.4% [3] - Revenues are anticipated to be $839.63 million, which is a slight increase of 0.3% from the previous year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4] - The Most Accurate Estimate for FirstCash is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.67%, suggesting a bullish outlook from analysts [12] Earnings Surprise Prediction - A positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10] - FirstCash holds a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, FirstCash exceeded the expected earnings of $1.66 per share by delivering $1.79, resulting in a surprise of +7.83% [13] - Over the past four quarters, FirstCash has consistently beaten consensus EPS estimates [14] Industry Context - In the Zacks Financial Transaction Services industry, Wex (WEX) is also expected to report earnings of $4.42 per share for the same quarter, with a year-over-year change of +1.6% and revenues of $679.81 million, up 2.2% [18] - Wex has an Earnings ESP of +0.65% and a Zacks Rank of 2, indicating a strong likelihood of surpassing the consensus EPS estimate [19]

Core Insights - FirstCash Holdings (FCFS) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by a strong history of exceeding earnings estimates [1][5] - The company has an average surprise of 13.06% over the past two quarters, indicating consistent performance above expectations [1][5] Earnings Performance - In the last reported quarter, FirstCash achieved earnings of $1.79 per share, surpassing the Zacks Consensus Estimate of $1.66 per share by 7.83% [2] - In the previous quarter, the company reported earnings of $2.07 per share against an expectation of $1.75 per share, resulting in a surprise of 18.29% [2] Earnings Estimates and Predictions - Recent changes in earnings estimates for FirstCash have been favorable, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8] - The current Earnings ESP for FirstCash is +3.67%, reflecting increased analyst optimism regarding its near-term earnings potential [8] Zacks Rank and Success Rate - FirstCash holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, suggests a high probability of another earnings beat [8] - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% success rate in beating consensus estimates [6]

Core Viewpoint - FirstCash Hldgs Inc. stock has experienced a recent decline but shows significant growth over the past month and year, raising questions about its valuation despite current performance issues [1]. Group 1: Stock Performance - The current stock price of FirstCash Hldgs Inc. is $153.30, reflecting a decrease of 0.89% in the current market session [1]. - Over the past month, the stock has increased by 4.09%, and over the past year, it has risen by 33.54% [1]. Group 2: P/E Ratio Analysis - FirstCash Hldgs has a lower P/E ratio compared to the Consumer Finance industry average of 51.82, which may suggest that the stock is undervalued or expected to perform worse than peers [5][6]. - A lower P/E ratio can indicate either undervaluation or weak growth prospects, necessitating careful consideration by investors [9].

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]