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]

For the Quarterly Period Ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ Commission file number 001-10960 FIRSTCASH HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 87- ...

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]

Core Insights - FirstCash Holdings (FCFS) has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 5.32% [1][2] Earnings Performance - In the last reported quarter, FirstCash achieved earnings of $2.12 per share, surpassing the Zacks Consensus Estimate of $2.02 per share, resulting in a surprise of 4.95% [2] - In the previous quarter, the company was expected to earn $1.58 per share but delivered $1.67 per share, yielding a surprise of 5.70% [2] Earnings Estimates and Predictions - Estimates for FirstCash have been trending upward, influenced by its history of earnings surprises [4] - The stock currently has a positive Zacks Earnings ESP of +2.86%, indicating increased analyst optimism regarding its near-term earnings potential [7] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report [7] Earnings ESP Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of delivering a positive surprise [5] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6]

Financial Performance - The company's revenue for the year ended December 31, 2024, was $3,388,514, an increase of 7.5% compared to $3,151,796 in 2023[265]. - Net income rose to $258,815 in 2024, up from $219,301 in 2023, reflecting a growth of 18%[265]. - Diluted earnings per share increased to $5.73 in 2024, compared to $4.80 in 2023, representing a 19.4% rise[265]. - EBITDA for 2024 was reported at $551,008, a 11.6% increase from $493,784 in 2023[265]. - Consolidated net income for 2024 increased by 18% to $258.8 million compared to $219.3 million in 2023[306]. - Adjusted net income for 2024 was $302,680,000, compared to $276,874,000 in 2023, resulting in adjusted diluted earnings per share of $6.70, up from $6.06[332]. - EBITDA for 2024 was $551,008,000, an increase from $493,784,000 in 2023, while adjusted EBITDA rose to $558,437,000 from $511,732,000[334]. - Free cash flow for 2024 was $260,400,000, compared to $205,574,000 in 2023, with adjusted free cash flow at $262,106,000, up from $211,663,000[337]. - Total revenue for 2024 was $3,388,514,000, an increase from $3,151,796,000 in 2023, while total net revenue rose to $1,629,532,000 from $1,507,239,000[339]. U.S. Operations - U.S. total revenue increased by 15% to $1,568.6 million in 2024 compared to $1,368.5 million in 2023[271]. - U.S. pawn loan fees rose by 16% to $505.3 million in 2024, with same-store fees increasing by 11%[276]. - U.S. retail merchandise sales grew by 13% to $969.4 million, with same-store sales up by 6%[273]. - U.S. segment pre-tax operating income increased by 18% to $397.3 million, maintaining a pre-tax operating margin of 25%[278]. - U.S. inventories increased by 11% to $245.5 million, driven by acquired stores and higher pawn loan balances[274]. - U.S. average outstanding pawn loan amount increased by 10% to $283[272]. - U.S. store operating expenses rose by 12% to $503.6 million, primarily due to an increase in average store count[277]. - U.S. pawn segment pre-tax operating income rose by 18% to $397.3 million[306]. Latin America Operations - Latin America total revenue increased by 1% to $811.9 million, with retail merchandise sales up by 2%[281]. - Latin America pawn loans decreased by 5% to $121.2 million, while constant currency results showed a 13% increase[282]. - Latin America segment pre-tax operating income decreased by 4% to $150.2 million, impacted by currency fluctuations[280]. - Latin America pawn loan receivables decreased 5% to $X million, but increased 13% on a constant currency basis as of December 31, 2024 compared to December 31, 2023[285]. - Latin America pawn loan fees increased 4% to $231.9 million during 2024 compared to $222.8 million for 2023, with a 7% increase on a constant currency basis[286]. Financial Services and Partnerships - The company operates pawn stores primarily in the U.S. and Latin America, focusing on cash- and credit-constrained consumers[244]. - The retail POS payment solutions segment, operated by AFF, facilitates payment options for consumers through a network of traditional and e-commerce partners[245]. - The company has a partnership with a Utah state-chartered bank for purchasing and servicing retail finance receivables, enhancing its financial service offerings[255]. - The company maintains an allowance for loan losses based on historical loss information and economic conditions, ensuring financial stability[259]. - The allowance for loan losses increased 21% to $117.0 million as of December 31, 2024 compared to $96.5 million in the prior year[301]. - Interest and fees on finance receivables increased 5% to $245.9 million during 2024 compared to $233.8 million during 2023[302]. - Provision for loan losses increased 17% to $143.8 million during 2024 compared to $123.0 million during 2023, with a decrease in the provision rate to 28%[303]. Acquisitions and Expansion - The Company acquired 28 pawn stores in the U.S. and 10 in Mexico for a total purchase price of $107.6 million during 2024[312]. - The Company opened 60 new locations in Latin America and one in the U.S. with a combined investment of $19.3 million[312]. - The Company expects to continue expanding its pawn operations through new store openings and acquisitions in 2025[313]. Economic and Market Conditions - The current economic environment has increased demand for pawn loans in the U.S., but tighter decisioning has adversely affected merchant sales volumes in certain categories[202]. - The Company is exposed to local economies and politics due to the geographic concentration of its pawn stores and merchant partners, which could materially affect revenues and profitability[203]. - Changes in domestic or foreign tax laws could negatively impact the Company's operating results, including potential increases in statutory tax rates[199]. - The Company's financial results may be adversely affected by fluctuations in commodity market prices, particularly for gold and other precious metals[198]. - Economic factors such as job loss and inflation could negatively affect AFF's ability to collect payments on leases and loans, impacting revenue and profitability[217]. Risks and Compliance - The Company maintains an allowance for lease and loan losses, which is highly dependent on the reasonableness of its assumptions and could significantly affect its results of operations[196]. - The inability to renew or extend store operating leases could adversely affect the Company's results of operations, especially in regions with rising real estate prices[208]. - AFF's transaction volume is dependent on sales at its merchant partners, and declines in such sales could materially impact AFF's results of operations[209]. - The Company faces risks related to compliance with indirect tax provisions, which could result in substantial tax liabilities if not adhered to[200]. - The reliance on external data providers poses a risk; any loss of access or increased costs could materially impact AFF's operations[215]. Inventory and Collateral - As of December 31, 2024, the company held approximately $174.0 million in jewelry inventories, primarily gold, representing 52% of total inventory[347]. - Approximately $336.6 million, or 65%, of total pawn loans were collateralized by jewelry, primarily gold[347]. - The average market price of gold increased by 23% from $1,942 to $2,385 per ounce during 2024[347].

Financial Performance - FirstCash reported record revenue of $3.4 billion for 2024, an 8% increase compared to the previous year, with Q4 revenue reaching $884 million, up 4% year-over-year[9] - Net income for 2024 was $259 million on a GAAP basis, an 18% increase from the prior year, while adjusted net income reached a record $303 million, up 9%[9] - Adjusted EBITDA for 2024 was $558 million, a 9% increase compared to the previous year[9] - For the three months ended December 31, 2024, the company reported net income of $83.5 million, an increase from $69.6 million in the same period of 2023, representing a growth of approximately 20%[69] - Adjusted diluted earnings per share for the twelve months ended December 31, 2024, was $6.70, compared to $6.06 for the previous year, reflecting an increase of about 10.6%[69] - EBITDA for the twelve months ended December 31, 2024, was $551.0 million, up from $493.8 million in 2023, indicating a year-over-year growth of approximately 11.6%[72] - Adjusted free cash flow for the twelve months ended December 31, 2024, reached $262,106,000, compared to $211,663,000 in 2023, reflecting a 23.7% increase[76] Store Growth and Operations - The company added 16 pawn stores in Q4 2024, including 10 acquisitions and 6 new openings, bringing the total store count to 3,026 locations[3] - The Company added nearly 100 new locations in 2024 and has a strong pipeline for new store openings in 2025, primarily in Latin America[24] - As of December 31, 2024, the company operated a total of 3,026 pawn store locations, with 1,200 in the U.S. and 1,826 in Latin America[60] - The company opened 61 new locations and acquired 38 locations over the twelve months ended December 31, 2024[60] Revenue and Sales Performance - Same-store pawn receivables increased by 12% in both the U.S. and Latin America, marking the sixth consecutive quarter of double-digit growth in the U.S.[2] - Pawn loan fees increased by 11% in Q4 and 16% for the full year, with same-store pawn loan fee revenue up 9% and 11% respectively[10] - Same-store sales in the U.S. and Latin America were up 6% and 7% respectively in the fourth quarter of 2024, maintaining strong gross margins[23] - Total revenue for the U.S. Pawn segment increased by 11% to $424,015,000 in Q4 2024, compared to $381,243,000 in Q4 2023[39] - Retail merchandise sales in the U.S. Pawn segment rose by 10% to $267,251,000 in Q4 2024, up from $243,697,000 in Q4 2023[39] - Total revenue for the Latin America Pawn segment decreased by 4% to $212,841,000 in Q4 2024, down from $222,858,000 in Q4 2023[48] - Retail merchandise sales in Latin America fell by 5% to $147,412,000 in Q4 2024, compared to $155,310,000 in Q4 2023[48] - U.S. pawn retail merchandise sales for the twelve months ended December 31, 2024, totaled $965.3 million, compared to $847.7 million in 2023, marking a 13.9% increase[86] Cash Flow and Dividends - Operating cash flows grew 30% in 2024, totaling $540 million compared to $416 million in 2023[17] - Cash flow from operating activities for the three months ended December 31, 2024, was $198,149,000, compared to $99,105,000 for the same period in 2023, representing a 100% increase[76] - Free cash flow for the twelve months ended December 31, 2024, was $260,400,000, up from $205,574,000 in 2023, indicating a 26.6% growth[76] - The company declared a quarterly cash dividend of $0.38 per share, representing an annualized dividend of $1.52 per share[17] Future Outlook - The company anticipates continued growth in pawn receivables and further store additions in 2025, indicating a positive outlook[18] - The Company expects the combined U.S. and Latin America pawn segments to contribute approximately 85% of total segment level pre-tax income for 2025[5] - Same-store pawn loans increased by 12% at the start of 2025 compared to the previous year, with full-year pawn fee growth projected to be between 8% and 11%[5] - The Company anticipates solid double-digit segment earnings growth in 2025 from its largest segment, driven by strong revenue momentum and modest expense growth[5] Asset and Liability Management - Total assets increased to $4,476,986,000 in 2024, up from $4,289,915,000 in 2023, reflecting a growth of 4%[37] - Total liabilities increased to $2,422,822,000 in 2024, up from $2,293,497,000 in 2023, marking a growth of 6%[37] - Total stockholders' equity rose to $2,054,164,000 in 2024, up from $1,996,418,000 in 2023, reflecting a growth of 3%[37] Loan and Finance Metrics - The average outstanding pawn loan amount increased by 10% to $283 in 2024, compared to $258 in 2023[44] - Pawn loans decreased by 5% to $121,200, while inventories decreased by 1% to $89,088 as of December 31, 2024[52] - Interest and fees on finance receivables increased by 18% to $70,507 for the three months ended December 31, 2024[54] - Provision for loan losses increased by 29% to $41,736 for the three months ended December 31, 2024[58] - The delinquency rate for finance receivables was 20.0%, down from 21.8%[58] - The allowance for loan losses increased by 21% to $117,005 as of December 31, 2024[59] Currency Exchange Impact - The Mexican peso to U.S. dollar exchange rate at the end of December 31, 2024, was 20.3, a 20% unfavorable change compared to 16.9 in 2023[83] - The Colombian peso to U.S. dollar exchange rate at the end of December 31, 2024, was 4,409, which is a 15% unfavorable change from 3,822 in 2023[83] Other Notable Events - The company expects to replace certain pawn locations in Acapulco, Mexico, that were damaged by a hurricane, as the city's infrastructure recovers[60] - The company closed approximately 1,000 Conn's HomePlus and American Freight locations due to bankruptcy during the fourth quarter of 2024[61] - The company’s management uses constant currency results to evaluate performance in Latin America, which helps exclude the effects of foreign currency fluctuations[80]

Core Insights - FirstCash Holdings reported revenue of $883.81 million for the quarter ended December 2024, reflecting a year-over-year increase of 3.7% [1] - The company's EPS was $2.12, up from $2.04 in the same quarter last year, indicating a positive trend in earnings [1] - Revenue fell short of the Zacks Consensus Estimate of $901.91 million, resulting in a surprise of -2.01%, while the EPS exceeded expectations by 4.95% [1] Revenue Breakdown - Leased merchandise income was reported at $177.44 million, which is a decrease of 6.6% year over year and below the average estimate of $188.44 million [4] - Pawn loan fees amounted to $189.98 million, showing a year-over-year increase of 6.6% and surpassing the average estimate of $183.64 million [4] - Retail merchandise sales were $413.67 million, falling short of the estimated $439.69 million [4] - Interest and fees on finance receivables reached $70.51 million, exceeding the average estimate of $61.58 million, with a significant year-over-year increase of 18.4% [4] Stock Performance - Over the past month, FirstCash shares have returned +8.1%, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]