Core Viewpoint - FirstCash is strategically entering the UK market by acquiring H&T Group plc, enhancing its geographic diversification and growth opportunities while strengthening its position as a global leader in pawn operations [1][2][3]. Group 1: Acquisition Details - FirstCash will pay 650 pence per share for H&T, totaling approximately £297 million or $394 million USD, including a final dividend of 11 pence per share [1]. - The acquisition has been unanimously approved by the Boards of Directors of both companies and is subject to H&T's shareholder approval and regulatory approvals in the UK [5]. Group 2: Strategic and Financial Benefits - The acquisition expands FirstCash's geographic footprint into the UK, creating the largest publicly traded pawn platform across the U.S., Latin America, and the UK [2][6]. - H&T's established brand and network of 285 stores will enhance FirstCash's scale and operational efficiencies, unlocking further growth opportunities in the UK and potentially other European markets [6]. - The transaction is expected to be meaningfully accretive to EBITDA and EPS, strengthening FirstCash's financial profile and long-term shareholder value [6]. Group 3: Leadership and Management - H&T's experienced management team will provide local expertise, positioning FirstCash to drive strong execution and continued momentum in the UK market [6].

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum, addressing the challenges of defining momentum [2] Company Overview: FirstCash Holdings (FCFS) - FirstCash Holdings currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Performance Metrics - FCFS shares have increased by 8.65% over the past week, outperforming the Zacks Financial Transaction Services industry, which rose by 4.48% [6] - Over the last quarter, FCFS shares rose by 18.61%, and by 15.49% over the past year, while the S&P 500 saw declines of -6.91% and gains of 13.12%, respectively [7] - The average 20-day trading volume for FCFS is 439,178 shares, indicating a bullish trend when combined with rising stock prices [8] Earnings Outlook - In the past two months, 3 earnings estimates for FCFS have been revised upwards, while only 1 estimate was revised down, leading to an increase in the consensus estimate from $7.70 to $7.85 [10] - For the next fiscal year, 3 estimates have also moved upwards with no downward revisions, indicating positive earnings momentum [10] Conclusion - Given the strong performance metrics and positive earnings outlook, FCFS is positioned as a solid momentum pick with a 2 (Buy) rating and a Momentum Score of A [12]

Market Overview - Wall Street has experienced significant volatility in 2025, with all three major stock indexes (Dow, S&P 500, Nasdaq Composite) in negative territory year to date [1] - Small-cap benchmarks (Russell 2000, S&P 600) and mid-cap-specific S&P 400 Index are also in the red year to date [1] High-Performing Mid-Cap Stocks - Despite market headwinds, five mid-cap stocks have provided over 25% returns year to date: ADMA Biologics Inc. (ADMA), FirstCash Holdings Inc. (FCFS), Stride Inc. (LRN), Life Time Group Holdings Inc. (LTH), and National Fuel Gas Co. (NFG) [2] - These stocks exhibit strong revenue and earnings growth potential for 2025, with positive earnings estimate revisions over the last 60 days [3] ADMA Biologics Inc. - ADMA Biologics specializes in plasma-based biologics for treating and preventing infectious diseases, targeting immune-compromised individuals [7][8] - Expected revenue growth rate is 16.3% and earnings growth rate is 44.9% for the current year, with a 2.9% improvement in earnings estimates over the last 60 days [9] FirstCash Holdings Inc. - FirstCash operates retail pawn stores across the U.S., Mexico, and Latin America, providing loans against personal property and retailing forfeited merchandise [10][11] - Expected revenue growth rate is 0.2% and earnings growth rate is 17.2% for the current year, with a 2.6% improvement in earnings estimates over the last seven days [13] Stride Inc. - Stride is a technology-based education service company offering online curriculum and educational services [14] - Expected revenue growth rate is 14.9% and earnings growth rate is 48.4% for the current year, with a 4.3% improvement in earnings estimates over the last 30 days [16] Life Time Group Holdings Inc. - Life Time provides health, fitness, and wellness experiences, operating various fitness and recreation centers [17][18] - Expected revenue growth rate is 12.9% and earnings growth rate is 37.9% for the current year, with a 6.5% improvement in earnings estimates over the last 60 days [19] National Fuel Gas Co. - National Fuel Gas focuses on systematic investments to strengthen operations and reduce emissions, with significant capital investments planned [20][21] - Expected revenue growth rate is 31.5% and earnings growth rate is 39.1% for the current year, with a 1.9% improvement in earnings estimates over the last 60 days [22][23]

Core Viewpoint - FirstCash Holdings (FCFS) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates are a powerful indicator of future stock performance [4][6]. - Rising earnings estimates for FirstCash imply an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [5][10]. Earnings Estimate Revisions for FirstCash - For the fiscal year ending December 2025, FirstCash is expected to earn $7.85 per share, reflecting a 17.2% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for FirstCash has increased by 0.7%, indicating a trend of rising earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of FirstCash to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock in the near term [10].

Group 1 - FirstCash Holdings (FCFS) is currently outperforming its peers in the Business Services sector, with a year-to-date return of 28.1% compared to the sector average of -2.6% [4] - FCFS holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 0.7% over the past three months [3] - The Financial Transaction Services industry, which includes FCFS, has an average year-to-date return of -0.7%, further highlighting FCFS's strong performance within its industry [6] Group 2 - OppFi Inc. (OPFI) is another stock in the Business Services sector that has shown strong performance, with a year-to-date return of 24% [4] - The consensus EPS estimate for OppFi Inc. has increased by 10.9% over the past three months, and it currently holds a Zacks Rank of 1 (Strong Buy) [5] - Both FirstCash Holdings and OppFi Inc. are recommended for investors interested in the Business Services sector due to their solid performance [7]

[Filing Information](index=1&type=section&id=Filing%20Information) [General Information](index=1&type=section&id=General%20Information) General filing details for FirstCash Holdings, Inc's Form 10-Q for the quarter ended March 31, 2025, cover identification, stock, and compliance status - The registrant is **FIRSTCASH HOLDINGS, INC**, incorporated in Delaware, with its principal executive offices in Fort Worth, Texas[2](index=2&type=chunk) - The registrant has filed all required reports under the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days[4](index=4&type=chunk) General Filing Details | Indicator | Detail | | :---------- | :----- | | Filing Type | Quarterly Report (Form 10-Q) | | Period Ended | March 31, 2025 | | Commission File Number | 001-10960 | | Trading Symbol | FCFS | | Exchange | The Nasdaq Stock Market | | Filer Status | Large accelerated filer | | Common Stock Outstanding (as of April 23, 2025) | 44,364,566 shares | [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements for the quarter ended March 31, 2025, include balance sheets, income statements, and cash flows with accompanying notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets Summary | (in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--------------- | :------------- | :---------------- | :------------- | | **ASSETS** | | | | | Cash and cash equivalents | $146,034 | $175,095 | $135,070 | | Pawn loans | $499,710 | $517,867 | $456,079 | | Finance receivables, net | $145,079 | $147,501 | $105,653 | | Inventories | $334,700 | $334,580 | $302,385 | | Leased merchandise, net | $103,612 | $128,437 | $157,785 | | Total current assets | $1,326,334 | $1,403,748 | $1,257,135 | | Total assets | $4,426,277 | $4,476,986 | $4,247,452 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | | Accounts payable and accrued liabilities | $129,137 | $171,540 | $138,812 | | Revolving unsecured credit facilities | $175,000 | $198,000 | $15,000 | | Senior unsecured notes | $1,532,099 | $1,531,346 | $1,529,147 | | Total liabilities | $2,367,917 | $2,422,822 | $2,202,070 | | Total stockholders' equity | $2,058,360 | $2,054,164 | $2,045,382 | | Total liabilities and stockholders' equity | $4,426,277 | $4,476,986 | $4,247,452 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Summary | (in thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | **Revenue:** | | | | Retail merchandise sales | $371,056 | $366,821 | | Pawn loan fees | $191,871 | $179,535 | | Leased merchandise income | $156,918 | $205,671 | | Interest and fees on finance receivables | $73,413 | $57,387 | | Wholesale scrap jewelry sales | $43,165 | $26,956 | | Total revenue | $836,423 | $836,370 | | **Cost of revenue:** | | | | Total cost of revenue | $412,220 | $440,530 | | Net revenue | $424,203 | $395,840 | | **Expenses and other income:** | | | | Operating expenses | $214,586 | $221,136 | | Administrative expenses | $48,523 | $44,018 | | Interest expense | $27,471 | $25,418 | | Total expenses and other income | $312,986 | $313,955 | | Income before income taxes | $111,217 | $81,885 | | Provision for income taxes | $27,626 | $20,517 | | Net income | $83,591 | $61,368 | | Earnings per share (Basic) | $1.87 | $1.36 | | Earnings per share (Diluted) | $1.87 | $1.35 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive Income Summary | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Net income | $83,591 | $61,368 | | Other comprehensive income (loss): | | | | Currency translation adjustment | $(944) | $6,335 | | Comprehensive income | $82,647 | $67,703 | [Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Changes in Stockholders' Equity (Q1 2025) | (in thousands) | As of 12/31/2024 | As of 3/31/2025 | | :--------------- | :--------------- | :-------------- | | Total Stockholders' Equity | $2,054,164 | $2,058,360 | | Net income | — | $83,591 | | Cash dividends | — | $(16,944) | | Purchases of treasury stock | — | $(60,205) | | Currency translation adjustment | — | $(944) | Changes in Stockholders' Equity (Q1 2024) | (in thousands) | As of 12/31/2023 | As of 3/31/2024 | | :--------------- | :--------------- | :-------------- | | Total Stockholders' Equity | $1,996,418 | $2,045,382 | | Net income | — | $61,368 | | Cash dividends | — | $(15,833) | | Currency translation adjustment | — | $6,335 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Net cash flow provided by operating activities | $126,640 | $122,532 | | Net cash flow used in investing activities | $(50,147) | $(29,634) | | Net cash flow used in financing activities | $(105,317) | $(84,934) | | Change in cash and cash equivalents | $(29,061) | $8,052 | | Cash and cash equivalents at end of the period | $146,034 | $135,070 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1 - General](index=12&type=section&id=Note%201%20-%20General) This note outlines the basis of presentation for the unaudited interim financial statements, including consolidation principles, use of estimates, and accounting pronouncements - 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[31](index=31&type=chunk)[32](index=32&type=chunk) - Functional currencies for Latin American pawn operations include the **Mexican peso, Guatemalan quetzal, and Colombian peso**, with assets and liabilities translated at balance sheet date exchange rates[33](index=33&type=chunk) - The Company is evaluating **ASU 2024-03 (Expense Disaggregation Disclosures)**, effective for fiscal years beginning after December 15, 2026, for its potential impact on financial statements[37](index=37&type=chunk)[38](index=38&type=chunk) [Note 2 - Earnings Per Share](index=13&type=section&id=Note%202%20-%20Earnings%20Per%20Share) This note details the computation of basic and diluted earnings per share for the three months ended March 31, 2025 and 2024 Earnings Per Share Calculation | (in thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income | $83,591 | $61,368 | | Weighted-average common shares for basic EPS | 44,649 | 45,244 | | Weighted-average common shares for diluted EPS | 44,789 | 45,387 | | Basic EPS | $1.87 | $1.36 | | Diluted EPS | $1.87 | $1.35 | [Note 3 - Operating Leases](index=13&type=section&id=Note%203%20-%20Operating%20Leases) This note provides information on the Company's operating lease arrangements, including lease terms, discount rates, lease expenses, and cash flow impacts - The weighted-average remaining lease term for operating leases was **4.2 years** as of March 31, 2025, compared to 3.9 years as of March 31, 2024[42](index=42&type=chunk) - The weighted-average discount rate used to measure lease liability was **8.6%** as of March 31, 2025, up from 8.2% as of March 31, 2024[43](index=43&type=chunk) Operating Lease Expenses | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Operating lease expense | $34,629 | $36,919 | | Variable lease expense | $4,804 | $5,021 | | Total operating lease expense | $39,433 | $41,940 | | Cash paid for operating lease liabilities | $32,165 | $33,439 | [Note 4 - Fair Value of Financial Instruments](index=15&type=section&id=Note%204%20-%20Fair%20Value%20of%20Financial%20Instruments) This note describes the fair value measurements of financial instruments, categorizing them based on the observability of inputs - The Company did not have any financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025, March 31, 2024, and December 31, 2024[47](index=47&type=chunk) - Fair value of finance receivables is estimated using a discounted cash flow methodology with unobservable inputs (**Level 3**), while debt is estimated based on market values for similar debt (**Level 2**)[52](index=52&type=chunk)[53](index=53&type=chunk) Carrying Value vs. Fair Value of Financial Instruments | (in thousands) | Carrying Value (March 31, 2025) | Estimated Fair Value (March 31, 2025) | | :--------------- | :------------------------------ | :------------------------------------ | | **Financial assets:** | | | | Cash and cash equivalents | $146,034 | $146,034 | | Accounts receivable, net | $71,166 | $71,166 | | Pawn loans | $499,710 | $499,710 | | Finance receivables, net | $145,079 | $303,286 | | **Financial liabilities:** | | | | Revolving unsecured credit facilities | $175,000 | $175,000 | | Senior unsecured notes (outstanding principal) | $1,550,000 | $1,512,000 | [Note 5 - Finance Receivables, Net](index=17&type=section&id=Note%205%20-%20Finance%20Receivables,%20Net) This note provides a detailed breakdown of finance receivables, net, including the allowance for loan losses and credit quality indicators - The Company charges off finance receivables when they are **90 days or more** contractually past due[55](index=55&type=chunk) Finance Receivables Composition | (in thousands) | As of March 31, 2025 | As of December 31, 2024 | As of March 31, 2024 | | :--------------- | :------------------- | :---------------------- | :------------------- | | Finance receivables, gross | $296,999 | $294,166 | $222,087 | | Finance receivables, amortized cost | $263,421 | $264,506 | $201,673 | | Less allowance for loan losses | $(118,342) | $(117,005) | $(96,020) | | Finance receivables, net | $145,079 | $147,501 | $105,653 | Changes in Allowance for Loan Losses | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $117,005 | $96,454 | | Provision for loan losses | $36,360 | $30,418 | | Charge-offs | $(38,419) | $(33,279) | | Recoveries | $3,396 | $2,427 | | Balance at end of period | $118,342 | $96,020 | [Note 6 - Leased Merchandise, Net](index=19&type=section&id=Note%206%20-%20Leased%20Merchandise,%20Net) This note details the composition of leased merchandise, net, including accumulated depreciation and the allowance for lease losses Leased Merchandise Composition | (in thousands) | As of March 31, 2025 | As of December 31, 2024 | As of March 31, 2024 | | :--------------- | :------------------- | :---------------------- | :------------------- | | Leased merchandise | $271,535 | $319,444 | $369,298 | | Accumulated depreciation | $(96,868) | $(108,283) | $(114,431) | | Leased merchandise, before allowance for lease losses | $172,397 | $208,694 | $253,048 | | Less allowance for lease losses | $(68,785) | $(80,257) | $(95,263) | | Leased merchandise, net | $103,612 | $128,437 | $157,785 | Changes in Allowance for Lease Losses | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $80,257 | $95,127 | | Provision for lease losses | $27,562 | $43,010 | | Charge-offs | $(41,374) | $(44,877) | | Recoveries | $2,340 | $2,003 | | Balance at end of period | $68,785 | $95,263 | [Note 7 - Long-Term Debt](index=20&type=section&id=Note%207%20-%20Long-Term%20Debt) This note details the Company's long-term debt, including credit facilities and senior notes, outlining amounts, rates, maturities, and covenants - The Company maintains a **$700.0 million** unsecured credit facility maturing August 8, 2029, with $175.0 million outstanding and **$522.3 million available** as of March 31, 2025[58](index=58&type=chunk) - Senior unsecured notes include **$500.0 million** of 4.625% notes due 2028, **$550.0 million** of 5.625% notes due 2030, and **$500.0 million** of 6.875% notes due 2032[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) Long-Term Debt Summary | (in thousands) | As of March 31, 2025 | As of December 31, 2024 | As of March 31, 2024 | | :--------------- | :------------------- | :---------------------- | :------------------- | | Revolving unsecured credit facilities | $175,000 | $198,000 | $15,000 | | Senior unsecured notes | $1,532,099 | $1,531,346 | $1,529,147 | | Total long-term debt | $1,707,099 | $1,729,346 | $1,544,147 | [Note 8 - Commitments and Contingencies](index=22&type=section&id=Note%208%20-%20Commitments%20and%20Contingencies) This note discusses the Company's legal proceedings, including a civil action by the CFPB, and contractual commitments related to gold forward sales - The **CFPB** initiated a civil action on November 12, 2021, alleging MLA violations; mediation is scheduled for May 14, 2025[67](index=67&type=chunk) - As of March 31, 2025, the Company had contractual commitments to deliver **54,500 gold ounces** at a weighted-average price of **$2,318 per ounce**[68](index=68&type=chunk) - Management believes outstanding legal proceedings are **not expected to have a material adverse effect** on the Company's financial position, and no material amounts have been accrued[65](index=65&type=chunk)[66](index=66&type=chunk) [Note 9 - Segment Information](index=22&type=section&id=Note%209%20-%20Segment%20Information) This note provides financial information disaggregated by the Company's three reportable segments: U.S pawn, Latin America pawn, and American First Finance - The Company operates in three reportable segments: **U.S. pawn, Latin America pawn, and Retail POS payment solutions (AFF)**[70](index=70&type=chunk) Segment Performance (Q1 2025) | (in thousands) | U.S. Pawn (Q1 2025) | Latin America Pawn (Q1 2025) | Retail POS Payment Solutions (Q1 2025) | Consolidated (Q1 2025) | | :--------------- | :------------------ | :--------------------------- | :------------------------------------- | :--------------------- | | Total revenue | $422,665 | $184,128 | $230,331 | $836,423 | | Net revenue | $249,683 | $97,258 | $77,224 | $424,203 | | Segment pre-tax operating income | $113,132 | $31,405 | $52,301 | $111,217 (Consolidated Income before taxes) | Segment Assets (March 31, 2025) | (in thousands) | U.S. Pawn (March 31, 2025) | Latin America Pawn (March 31, 2025) | Retail POS Payment Solutions (March 31, 2025) | Consolidated (March 31, 2025) | | :--------------- | :------------------------- | :---------------------------------- | :-------------------------------------------- | :---------------------------- | | Pawn loans | $365,972 | $133,738 | $0 | $499,710 | | Finance receivables, net | $0 | $0 | $145,079 | $145,079 | | Inventories | $246,237 | $88,463 | $0 | $334,700 | | Leased merchandise, net | $0 | $0 | $103,809 | $103,612 | | Goodwill | $1,153,513 | $175,421 | $486,205 | $1,815,139 | | Total assets | $2,681,376 | $659,716 | $911,261 | $4,426,277 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's perspective on financial condition, results of operations, and liquidity for Q1 2025, including segment performance and regulatory updates [General Business Overview](index=25&type=section&id=GENERAL) This section provides an overview of the Company's primary business lines, including retail pawn operations and retail point-of-sale payment solutions - The Company's primary business is operating retail pawn stores, serving cash- and credit-constrained consumers by providing non-recourse pawn loans and selling merchandise[74](index=74&type=chunk) - The Company also provides technology-driven retail POS payment solutions through AFF, focusing on lease-to-own (LTO) products and other retail financing options[75](index=75&type=chunk) - The Company's operations are organized into three reportable segments: **U.S. pawn, Latin America pawn, and retail POS payment solutions (AFF)**[76](index=76&type=chunk) [Operations and Locations](index=25&type=section&id=OPERATIONS%20AND%20LOCATIONS) This section details the Company's operational footprint, including pawn store locations and the network of active retail merchant partners [Pawn Operations](index=25&type=section&id=Pawn%20Operations) - As of March 31, 2025, the Company operated **3,023 pawn store locations**, comprising 1,197 stores in the U.S. and 1,826 stores across Latin America[77](index=77&type=chunk)[78](index=78&type=chunk) Pawn Store Activity (Q1 2025) | Pawn Store Activity (Q1 2025) | U.S. | Latin America | Total | | :---------------------------- | :--- | :------------ | :---- | | Total locations, beginning of period | 1,200 | 1,826 | 3,026 | | New locations opened | 1 | 10 | 11 | | Locations acquired | 1 | — | 1 | | Consolidation of existing pawn locations | (5) | (10) | (15) | | Total locations, end of period | 1,197 | 1,826 | 3,023 | [POS Payment Solutions](index=25&type=section&id=POS%20Payment%20Solutions) - As of March 31, 2025, AFF provided LTO and retail POS payment solutions through approximately **14,500 active retail merchant partner locations**, an increase from 12,200 locations at March 31, 2024[79](index=79&type=chunk) [Critical Accounting Estimates](index=26&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section confirms no changes to the Company's significant accounting policies as previously reported in its 2024 Annual Report on Form 10-K - There have been **no changes** to the Company's significant accounting policies for the three months ended March 31, 2025[80](index=80&type=chunk) [Results of Operations (Unaudited)](index=27&type=section&id=RESULTS%20OF%20OPERATIONS%20(unaudited)) This section provides an unaudited analysis of operating results for Q1 2025 compared to Q1 2024, broken down by segment and consolidated results [U.S. Pawn Segment](index=27&type=section&id=U.S.%20Pawn%20Segment) The U.S. pawn segment experienced significant growth in revenue, pawn loan fees, and retail sales, contributing to a 17% increase in pre-tax operating income - U.S. same-store retail sales increased **2%** and same-store pawn loan fees increased **10%** in Q1 2025, driven by acquired stores and higher pawn receivables[85](index=85&type=chunk)[88](index=88&type=chunk) U.S. Pawn Segment Performance | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Increase (%) | | :--------------- | :-------------------------------- | :-------------------------------- | :----------- | | Total revenue | $422,665 | $377,690 | 12% | | Retail merchandise sales | $251,225 | $236,990 | 6% | | Pawn loan fees | $137,948 | $122,974 | 12% | | Wholesale scrap jewelry sales | $33,492 | $17,726 | 89% | | Net revenue | $249,683 | $222,510 | 12% | | Segment pre-tax operating income | $113,132 | $96,602 | 17% | U.S. Pawn Segment Earning Assets | (in thousands) | As of March 31, 2025 | As of March 31, 2024 | Increase (%) | | :--------------- | :------------------- | :------------------- | :----------- | | Pawn loans | $365,972 | $315,792 | 16% | | Inventories | $246,237 | $216,762 | 14% | | Total Earning Assets | $612,209 | $532,554 | 15% | | Average outstanding pawn loan amount | $289 | $261 | 11% | | Store count | 1,197 | 1,179 | 2% | [Latin America Pawn Segment](index=30&type=section&id=Latin%20America%20Pawn%20Segment) The Latin America pawn segment's reported results were negatively impacted by unfavorable foreign currency exchange rates but showed strong constant currency growth - Latin American segment results were impacted by a **20% unfavorable change** in the average value of the Mexican peso compared to the U.S. dollar[91](index=91&type=chunk) Latin America Pawn Segment Performance | (in thousands) | Q1 2025 (Reported) | Q1 2024 (Reported) | Change (%) | Q1 2025 (Constant Currency) | Change (Constant Currency %) | | :--------------- | :----------------- | :----------------- | :--------- | :-------------------------- | :--------------------------- | | Total revenue | $184,128 | $196,640 | (6)% | $216,975 | 10% | | Retail merchandise sales | $120,532 | $130,849 | (8)% | $143,211 | 9% | | Pawn loan fees | $53,923 | $56,561 | (5)% | $64,091 | 13% | | Net revenue | $97,258 | $104,434 | (7)% | $113,889 | 9% | | Segment pre-tax operating income | $31,405 | $31,904 | (2)% | $36,158 | 13% | Latin America Pawn Segment Earning Assets | (in thousands) | March 31, 2025 (Reported) | March 31, 2024 (Reported) | Change (%) | March 31, 2025 (Constant Currency) | Change (Constant Currency %) | | :--------------- | :------------------------ | :------------------------ | :--------- | :--------------------------------- | :--------------------------- | | Pawn loans | $133,738 | $140,287 | (5)% | $161,065 | 15% | | Inventories | $88,463 | $85,623 | 3% | $106,579 | 24% | | Total Earning Assets | $222,201 | $225,910 | (2)% | $267,644 | 18% | [Retail POS Payment Solutions Segment](index=33&type=section&id=Retail%20POS%20Payment%20Solutions%20Segment) The Retail POS Payment Solutions segment (AFF) saw a significant increase in pre-tax operating income, driven by growth in finance receivables and reduced expenses - Leased merchandise income **decreased 24%** primarily due to reduced originations following bankruptcy filings by two larger retail furniture merchant partners[108](index=108&type=chunk)[110](index=110&type=chunk) - Finance receivables, net, **increased 37% to $145.1 million** as of March 31, 2025, driven by increased transaction volumes in non-furniture industry verticals[106](index=106&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk) - Operating expenses **decreased 30%** due to the elimination of expenses associated with bankrupt merchant relationships and operating synergies[117](index=117&type=chunk) Retail POS Payment Solutions Segment Performance | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Increase / (Decrease) (%) | | :--------------- | :-------------------------------- | :-------------------------------- | :------------------------ | | Leased merchandise income | $156,918 | $205,671 | (24)% | | Interest and fees on finance receivables | $73,413 | $57,387 | 28% | | Total revenue | $230,331 | $263,058 | (12)% | | Net revenue | $77,224 | $68,686 | 12% | | Segment pre-tax operating income | $52,301 | $33,149 | 58% | [Consolidated Results of Operations](index=37&type=section&id=Consolidated%20Results%20of%20Operations) This section reconciles segment pre-tax operating income to consolidated net income, showing a significant increase in overall profitability Reconciliation to Consolidated Net Income | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Increase / (Decrease) (%) | | :--------------- | :-------------------------------- | :-------------------------------- | :------------------------ | | Consolidated segment pre-tax operating income | $196,876 | $161,865 | 22% | | Total corporate expenses and other income | $85,659 | $79,980 | 7% | | Income before income taxes | $111,217 | $81,885 | 36% | | Provision for income taxes | $27,626 | $20,517 | 35% | | Net income | $83,591 | $61,368 | 36% | [Corporate Expenses and Taxes](index=37&type=section&id=Corporate%20Expenses%20and%20Taxes) This section details changes in corporate-level administrative expenses, depreciation, interest expense, and the consolidated effective income tax rate - Administrative expenses **increased 10% to $48.5 million** in Q1 2025, primarily due to increased pawn store count and inflationary impacts[120](index=120&type=chunk) - Depreciation and amortization **decreased 3% to $12.8 million** in Q1 2025, mainly due to a scheduled decrease in amortization of acquired AFF intangible assets[121](index=121&type=chunk) - Interest expense **increased 8% to $27.5 million** in Q1 2025, driven by higher average total long-term debt balances outstanding[122](index=122&type=chunk) - The consolidated effective income tax rate was **24.8%** for Q1 2025, compared to 25.1% for Q1 2024[122](index=122&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the Company's capital requirements, sources of liquidity, and an analysis of cash flows from operating, investing, and financing activities - Primary capital requirements include expanding pawn operations, expanding retail POS payment solutions, and returning capital to shareholders[123](index=123&type=chunk)[129](index=129&type=chunk) - As of March 31, 2025, primary liquidity sources were **$146.0 million in cash** and **$551.9 million of available funds** under revolving credit facilities[133](index=133&type=chunk) - The Company repurchased **525,000 shares** of common stock for **$59.6 million** in Q1 2025, with $55.4 million remaining under the current repurchase program[131](index=131&type=chunk)[132](index=132&type=chunk) - Cash dividends of **$16.9 million** ($0.38 per share) were declared in April 2025 for payment in May 2025[130](index=130&type=chunk) [Cash Flow Provided by Operating Activities](index=40&type=section&id=Cash%20Flow%20Provided%20by%20Operating%20Activities) - Net cash provided by operating activities **increased 3% to $126.6 million** for Q1 2025, driven by an increase in net income[137](index=137&type=chunk) [Cash Flow Used in Investing Activities](index=40&type=section&id=Cash%20Flow%20Used%20in%20Investing%20Activities) - Net cash used in investing activities **increased 69% to $50.1 million** for Q1 2025[138](index=138&type=chunk) - This increase was primarily due to **$29.2 million paid for pawn store acquisitions** in Q1 2025, compared to $1.7 million in Q1 2024[138](index=138&type=chunk) - The Company funded a net increase in finance receivables of **$20.6 million** in Q1 2025, compared to $15.3 million in Q1 2024[138](index=138&type=chunk) [Cash Flow Used in Financing Activities](index=40&type=section&id=Cash%20Flow%20Used%20in%20Financing%20Activities) - Net cash used in financing activities **increased 24% to $105.3 million** for Q1 2025[139](index=139&type=chunk) - This includes **$59.6 million for share repurchases** and **$16.9 million for dividends paid** in Q1 2025[139](index=139&type=chunk) - Net payments on credit facilities were **$23.0 million** in Q1 2025, significantly lower than $553.0 million in Q1 2024[139](index=139&type=chunk) [Governmental Regulation Update](index=41&type=section&id=GOVERNMENTAL%20REGULATION%20UPDATE) This section provides an update on the regulatory environment affecting the Company's businesses, particularly concerning the CFPB and the SDL Rule - The Company's businesses are subject to significant regulation, with potential changes in federal policy creating uncertainty[140](index=140&type=chunk)[141](index=141&type=chunk) - The **SDL Rule** went into effect on March 30, 2025, but the Company does not expect a material impact as the CFPB has announced enforcement will not be a priority[143](index=143&type=chunk) - Trade restrictions and retaliatory steps could depress economic activity, potentially affecting consumers and contributing to market volatility[144](index=144&type=chunk) [Non-GAAP Financial Information](index=41&type=section&id=NON-GAAP%20FINANCIAL%20INFORMATION) This section explains the Company's use of non-GAAP financial measures to provide a clearer understanding of its core operating performance - The Company uses non-GAAP financial measures (e.g., adjusted net income, EBITDA, free cash flow) to evaluate operating performance and provide greater transparency[145](index=145&type=chunk) - Adjustments typically exclude merger and acquisition expenses, amortization of acquired AFF intangible assets, and non-cash foreign currency gains/losses[146](index=146&type=chunk)[147](index=147&type=chunk) [Adjusted Net Income and Adjusted Diluted Earnings Per Share](index=42&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20Earnings%20Per%20Share) Reconciliation of Net Income to Adjusted Net Income | (in thousands, except per share amounts) | Q1 2025 (In Thousands) | Q1 2024 (In Thousands) | Q1 2025 (Per Share) | Q1 2024 (Per Share) | | :--------------------------------------- | :--------------------- | :--------------------- | :------------------ | :------------------ | | Net income and diluted EPS, as reported | $83,591 | $61,368 | $1.87 | $1.35 | | Adjustments, net of tax: | | | | | | Merger and acquisition expenses | $354 | $457 | — | $0.01 | | Non-cash foreign currency loss (gain) related to lease liability | $40 | $(169) | — | — | | Amortization of acquired AFF intangible assets | $9,258 | $9,573 | $0.21 | $0.21 | | Other income, net | $(462) | $(1,040) | $(0.01) | $(0.02) | | Adjusted net income and diluted EPS | $92,781 | $70,189 | $2.07 | $1.55 | [Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA](index=43&type=section&id=Earnings%20Before%20Interest,%20Taxes,%20Depreciation%20and%20Amortization%20(EBITDA)%20and%20Adjusted%20EBITDA) Reconciliation of Net Income to Adjusted EBITDA | (in thousands) | Q1 2025 | Q1 2024 | Trailing Twelve Months Ended March 31, 2025 | Trailing Twelve Months Ended March 31, 2024 | | :--------------- | :------ | :------ | :------------------------------------------ | :------------------------------------------ | | Net income | $83,591 | $61,368 | $281,038 | $233,281 | | Income taxes | $27,626 | $20,517 | $91,070 | $78,240 | | Depreciation and amortization | $25,502 | $26,027 | $104,416 | $108,077 | | Interest expense | $27,471 | $25,418 | $107,279 | $97,764 | | Interest income | $(1,229) | $(743) | $(2,421) | $(1,695) | | EBITDA | $162,961 | $132,587 | $581,382 | $515,667 | | Adjustments: | | | | | | Merger and acquisition expenses | $462 | $597 | $2,093 | $8,488 | | Non-cash foreign currency loss (gain) related to lease liability | $57 | $(241) | $4,053 | $(1,571) | | Other expenses (income), net | $(600) | $(1,351) | $2,197 | $(2,798) | | Adjusted EBITDA | $162,880 | $131,592 | $589,725 | $533,754 | [Free Cash Flow and Adjusted Free Cash Flow](index=44&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow) Reconciliation to Adjusted Free Cash Flow | (in thousands) | Q1 2025 | Q1 2024 | Trailing Twelve Months Ended March 31, 2025 | Trailing Twelve Months Ended March 31, 2024 | | :--------------- | :------ | :------ | :------------------------------------------ | :------------------------------------------ | | Cash flow from operating activities | $126,640 | $122,532 | $544,066 | $428,080 | | Cash flow from certain investing activities: | | | | | | Pawn loans, net | $19,440 | $25,149 | $(77,708) | $(54,187) | | Finance receivables, net | $(20,566) | $(15,311) | $(144,569) | $(106,213) | | Purchases of furniture, fixtures, equipment and improvements | $(12,914) | $(26,427) | $(54,732) | $(72,747) | | Free cash flow | $112,600 | $105,943 | $267,057 | $194,933 | | Merger and acquisition expenses paid, net of tax benefit | $354 | $457 | $1,603 | $6,524 | | Adjusted free cash flow | $112,954 | $106,400 | $268,660 | $201,457 | [Constant Currency Results](index=44&type=section&id=Constant%20Currency%20Results) - Constant currency results are used to evaluate Latin America operations by translating local currency items using prior-year exchange rates[154](index=154&type=chunk)[155](index=155&type=chunk) Foreign Exchange Rates | Exchange Rate (vs. U.S. dollar) | March 31, 2025 | March 31, 2024 | Favorable / (Unfavorable) Change (%) | | :------------------------------ | :------------- | :------------- | :----------------------------------- | | Mexican peso (End-of-period) | 20.3 | 16.7 | (22)% | | Mexican peso (Three months ended) | 20.4 | 17.0 | (20)% | | Guatemalan quetzal (End-of-period) | 7.7 | 7.8 | 1% | | Guatemalan quetzal (Three months ended) | 7.7 | 7.8 | 1% | | Colombian peso (End-of-period) | 4,193 | 3,842 | (9)% | | Colombian peso (Three months ended) | 4,191 | 3,915 | (7)% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's market risks arise from changes in interest rates, gold prices, and foreign currency rates, with no material changes since December 31, 2024 - Market risks primarily result from changes in **interest rates, gold prices, and foreign currency exchange rates**[157](index=157&type=chunk) - There have been **no material changes** to the Company's exposure to market risks since December 31, 2024[157](index=157&type=chunk) - The Company does not engage in speculative or leveraged transactions, nor does it hold or issue financial instruments for trading purposes[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the evaluation of disclosure controls and procedures, concluding their effectiveness as of March 31, 2025 - Management concluded that the Company's disclosure controls and procedures were designed at a reasonable assurance level and were **effective as of March 31, 2025**[158](index=158&type=chunk)[159](index=159&type=chunk) - There have been **no changes** in the Company's internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[160](index=160&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the Consolidated Financial Statements for detailed information regarding the Company's legal proceedings - Information on legal proceedings is incorporated by reference from **Note 8 - Commitments and Contingencies** of the Notes to Consolidated Financial Statements[161](index=161&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the Company's 2024 Annual Report on Form 10-K for important risk factors and confirms no material changes - Important risk factors are described in Part I, Item 1A, 'Risk Factors' of the Company's **2024 Annual Report on Form 10-K**[162](index=162&type=chunk) - There have been **no material changes** in the Company's risk factors from those in the 2024 Annual Report on Form 10-K[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides information on the Company's common stock repurchases during the three months ended March 31, 2025 - In January 2025, **51,568 shares were withheld** to satisfy tax obligations upon vesting of restricted stock, not part of a repurchase plan[163](index=163&type=chunk) - The Company incurred **$0.6 million in excise taxes** during Q1 2025 on stock repurchases, as mandated by the Inflation Reduction Act of 2022[166](index=166&type=chunk) Issuer Purchases of Equity Securities | Period | Total Number Of Shares Purchased | Average Price Paid Per Share | Shares Purchased As Part Of Publicly Announced Plans | Approximate Dollar Value Of Shares That May Yet Be Purchased Under The Plans (in thousands) | | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------------------------------- | :--------------------------------------------------------------------------------------- | | January 1 through January 31, 2025 | 51,568 | $111.77 | — | $115,000 | | February 1 through February 28, 2025 | 525,000 | $113.54 | 525,000 | $55,391 | | March 1 through March 31, 2025 | — | — | — | $55,391 | | Total | 576,568 | $113.38 | 525,000 | | [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - There were **no defaults** upon senior securities[164](index=164&type=chunk) [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that the disclosure requirements for mine safety are not applicable to the Company's operations - This item is **not applicable** to the Company[165](index=165&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report under this item - **No other information** is reported under this item[167](index=167&type=chunk) [Item 6. Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including organizational documents, employment agreements, and certifications - Exhibits include Amended and Restated Certificate of Incorporation and Bylaws, amendments to employment agreements, and certifications pursuant to the **Sarbanes-Oxley Act**[168](index=168&type=chunk) - The filing also includes **Inline XBRL documents** and the Cover Page Interactive Data File[168](index=168&type=chunk)[169](index=169&type=chunk) [Signatures](index=49&type=section&id=SIGNATURES) This section contains the required signatures of the registrant's CEO and CFO, certifying the accuracy and completeness of the Form 10-Q - The report is duly signed on April 28, 2025, by **Rick L. Wessel, Chief Executive Officer**, and **R. Douglas Orr, Executive Vice President and Chief Financial Officer**[172](index=172&type=chunk)

Financial Performance - FirstCash reported a record first quarter net income of $83.6 million, a 36% increase on a GAAP basis compared to the prior year[2]. - Diluted earnings per share for the first quarter increased 39% to $1.87 on a GAAP basis, while adjusted diluted earnings per share rose 34% to $2.07[11]. - Revenue for the first quarter was $836.4 million, flat on a U.S. dollar basis but up 4% on a constant currency basis compared to the prior year[11]. - Net income for the three months ended March 31, 2025, was $83,591,000, an increase from $61,368,000 for the same period in 2024, representing a growth of 36%[70]. - EBITDA for the three months ended March 31, 2025, was $162,961,000, compared to $132,587,000 for the same period in 2024, reflecting a 23% increase[70]. - Adjusted EBITDA for the trailing twelve months ended March 31, 2025, was $589,725,000, up from $533,754,000 for the previous year, indicating a growth of 10.5%[70]. - Free cash flow for the three months ended March 31, 2025, was $112,600,000, compared to $105,943,000 for the same period in 2024, showing an increase of 6%[73]. - Adjusted free cash flow for the trailing twelve months ended March 31, 2025, was $268,660,000, up from $201,457,000 for the previous year, representing a significant increase of 33.3%[73]. - Adjusted return on equity for the trailing twelve months ended March 31, 2025, was 16%, while adjusted return on assets was 7%[76]. Pawn Operations - Same-store pawn receivables increased 13% in the U.S. and 14% in Latin America, marking seven consecutive quarters of double-digit growth in the U.S. segment[3]. - Pawn operations are expected to contribute over 80% of total segment level pre-tax income for 2025, with same-store pawn loans up 13% year-over-year as of March 31, 2025[21]. - Total outstanding pawn loans increased by 16% in the U.S. and 15% in Latin America on a local currency basis, with average loan amounts up 11% in the U.S. and 7% in Latin America[24]. - Pawn loans in the U.S. increased by 16% to $365,972 as of March 31, 2025, compared to $315,792 in 2024[46]. - Total revenue for U.S. Pawn segment reached $422,665 for the three months ended March 31, 2025, a 12% increase from $377,690 in the same period of 2024[43]. - Segment pre-tax operating income for U.S. Pawn increased by 17% to $113,132 for the three months ended March 31, 2025, compared to $96,602 in 2024[43]. - Total revenue for Latin America Pawn segment decreased by 6% to $184,128 for the three months ended March 31, 2025, from $196,640 in 2024[49]. - Segment pre-tax operating income for Latin America Pawn was $31,405 for the three months ended March 31, 2025, a slight decrease of 2% from $31,904 in 2024[49]. Growth and Expansion - The number of active retail and e-commerce merchant partner locations increased by 19% to approximately 14,500, with a 29% increase excluding closed furniture locations[11]. - The company added 12 pawn locations in the first quarter, including acquisitions and new store openings in three countries[11]. - The company added 91 locations over the last 12 months through new store openings and acquisitions, with a robust pipeline for future pawn store growth[25]. - The outlook for 2025 remains positive, with expected year-over-year growth in income driven by continued demand for pawn loans and store additions[19]. Shareholder Returns and Capital Management - The company repurchased 525,000 shares of common stock for $60 million during the first quarter, with a total of 1,246,000 shares repurchased over the past twelve months[17]. - The Board of Directors declared a quarterly cash dividend of $0.38 per share, representing an annualized dividend of $1.52 per share[17]. - FirstCash repurchased 525,000 shares for $60 million at an average price of less than $114 per share, while reducing outstanding debt by $23 million[28]. Financial Outlook and Challenges - The effective income tax rate for 2025 is expected to range from 24.5% to 25.5%, with each full point change in the Mexican peso exchange rate projected to impact annual earnings by approximately $0.10 per share[29]. - Full year net revenues are forecast to decline by 8% to 12% compared to the prior year, with second quarter net revenues expected to decline by 14% to 16% year-over-year[21]. - Despite an 8% year-over-year decrease in first quarter originations, full year origination volume for 2025 is expected to be consistent with or slightly above 2024 levels, with a projected increase of 20% to 25% when excluding certain originations[21]. - The company continues to consolidate overlapping store operations to achieve significant cost savings while investing in high-performing U.S. store real estate[26]. Asset and Liability Management - Total assets as of March 31, 2025, increased to $4,426,277, up from $4,247,452 as of December 31, 2024, representing a growth of 4.2%[40]. - Total liabilities increased to $2,367,917 as of March 31, 2025, from $2,202,070 as of December 31, 2024, reflecting a growth of 7.5%[40]. - Stockholders' equity as of March 31, 2025, was $2,058,360, slightly up from $2,045,382 as of December 31, 2024[40]. Market Conditions and Currency Impact - The Mexican peso to U.S. dollar exchange rate at the end of March 31, 2025, was 20.3, a 22% unfavorable change compared to 16.7 in 2024[80]. - The Colombian peso to U.S. dollar exchange rate at the end of March 31, 2025, was 4,193, reflecting a 9% unfavorable change from 3,842 in 2024[80].

Core Insights - FirstCash Holdings (FCFS) reported revenue of $836.42 million for the quarter ended March 2025, showing no growth compared to the same period last year [1] - Earnings per share (EPS) increased to $2.07 from $1.55 year-over-year, representing an EPS surprise of +18.29% against the consensus estimate of $1.75 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $841.77 million, resulting in a revenue surprise of -0.64% [1] Revenue Breakdown - Leased merchandise income was reported at $156.92 million, which fell short of the average estimate of $168.07 million by two analysts [4] - Pawn loan fees reached $191.87 million, exceeding the average estimate of $189.63 million, marking a year-over-year increase of +6.9% [4] - Interest and fees on finance receivables amounted to $73.41 million, slightly above the average estimate of $72.40 million [4] Stock Performance - Over the past month, FirstCash shares returned +0.5%, contrasting with a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1 - FirstCash Holdings (FCFS) reported quarterly earnings of $2.07 per share, exceeding the Zacks Consensus Estimate of $1.75 per share, and up from $1.55 per share a year ago, representing an earnings surprise of 18.29% [1] - The company posted revenues of $836.42 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.64%, and showing a marginal increase from $836.37 million year-over-year [2] - FirstCash has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once during the same period [2] Group 2 - The stock has increased approximately 16.5% since the beginning of the year, contrasting with the S&P 500's decline of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $1.63 on revenues of $837.93 million, and for the current fiscal year, it is $7.65 on revenues of $3.42 billion [7] - The Financial Transaction Services industry, to which FirstCash belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - FirstCash Holdings, Inc. reported record first quarter results for the period ending March 31, 2025, with significant growth in revenue and net income driven by strong performance in core pawn operations and retail point-of-sale payment solutions [2][18][24] Financial Performance - First quarter net income increased by 36% on a GAAP basis and 32% on an adjusted basis, with diluted earnings per share rising by 39% and 34% respectively compared to the prior year [9][21] - Gross revenues for the first quarter totaled $836 million, remaining flat on a U.S. dollar basis but up 4% on a constant currency basis compared to the previous year [9][36] - For the trailing twelve months ended March 31, 2025, revenues reached a record $3.4 billion, with net income of $281 million on a GAAP basis and adjusted net income of $325 million [9][36] Pawn Operations - Demand for pawn loans was robust, with same-store pawn receivables increasing by 13% in the U.S. and 14% in Latin America on a local currency basis, marking seven consecutive quarters of double-digit growth in the U.S. [3][25] - The U.S. pawn segment saw a 17% increase in earnings, driven by a 19% increase in merchant locations and diversification outside the furniture vertical [4][25] - Total outstanding pawn loans at the end of the quarter were up 16% in the U.S. and 15% in Latin America on a local currency basis [25][22] Retail POS Payment Solutions (AFF) - The AFF segment reported a record pre-tax operating income of $52 million, an increase of 58% compared to the prior year, despite a 12% decrease in gross revenues [17][28] - The number of active retail and e-commerce merchant partner locations increased by 19% year-over-year, with a 29% increase when excluding closed furniture locations [4][12] Cash Flow and Shareholder Returns - Strong cash flows allowed the company to fund the addition of 12 pawn locations, real estate purchases, and $60 million in stock repurchases, alongside a quarterly cash dividend of $0.38 per share [5][21] - Over the past twelve months, the company repurchased 1,246,000 shares at a total cost of $145 million, representing a payout ratio of approximately 75% of net income [21][29] 2025 Outlook - The outlook for 2025 remains positive, with expected year-over-year growth in income driven by continued growth in earning asset balances and store additions [18][22] - The company anticipates same-store pawn fee growth in the range of 9% to 11% for the full year, with retail sales expected to grow in the mid-single digits [22][31]