FirstCash(FCFS) - 2025 Q1 - Quarterly Report

Filing Information General Information 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] - 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] 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 Item 1. Financial Statements (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 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 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 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 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 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 Note 1 - General 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][32] - 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] - 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][38] Note 2 - Earnings Per Share 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 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] - 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] 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 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] - 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][53] 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 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] 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 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 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] - 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][62][63] 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 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] - 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] - 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][66] Note 9 - Segment Information 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] 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 Management's perspective on financial condition, results of operations, and liquidity for Q1 2025, including segment performance and regulatory updates General Business Overview 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] - 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] - The Company's operations are organized into three reportable segments: U.S. pawn, Latin America pawn, and retail POS payment solutions (AFF)[76] Operations and Locations This section details the Company's operational footprint, including pawn store locations and the network of active retail merchant partners Pawn Operations - 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][78] 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 - 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] Critical Accounting Estimates 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] Results of Operations (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 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][88] 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 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] 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 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][110] - 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][113][114] - Operating expenses decreased 30% due to the elimination of expenses associated with bankrupt merchant relationships and operating synergies[117] 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 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 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] - 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] - Interest expense increased 8% to $27.5 million in Q1 2025, driven by higher average total long-term debt balances outstanding[122] - The consolidated effective income tax rate was 24.8% for Q1 2025, compared to 25.1% for Q1 2024[122] Liquidity and Capital Resources 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][129] - 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] - 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][132] - Cash dividends of $16.9 million ($0.38 per share) were declared in April 2025 for payment in May 2025[130] Cash Flow Provided by Operating Activities - Net cash provided by operating activities increased 3% to $126.6 million for Q1 2025, driven by an increase in net income[137] Cash Flow Used in Investing Activities - Net cash used in investing activities increased 69% to $50.1 million for Q1 2025[138] - 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] - 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] Cash Flow Used in Financing Activities - Net cash used in financing activities increased 24% to $105.3 million for Q1 2025[139] - This includes $59.6 million for share repurchases and $16.9 million for dividends paid in Q1 2025[139] - Net payments on credit facilities were $23.0 million in Q1 2025, significantly lower than $553.0 million in Q1 2024[139] Governmental Regulation Update 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][141] - 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] - Trade restrictions and retaliatory steps could depress economic activity, potentially affecting consumers and contributing to market volatility[144] Non-GAAP Financial Information 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] - Adjustments typically exclude merger and acquisition expenses, amortization of acquired AFF intangible assets, and non-cash foreign currency gains/losses[146][147] Adjusted Net Income and Adjusted Diluted Earnings Per Share 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 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 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 - Constant currency results are used to evaluate Latin America operations by translating local currency items using prior-year exchange rates[154][155] 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 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] - There have been no material changes to the Company's exposure to market risks since December 31, 2024[157] - The Company does not engage in speculative or leveraged transactions, nor does it hold or issue financial instruments for trading purposes[157] Item 4. Controls and Procedures 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][159] - 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] PART II. OTHER INFORMATION Item 1. Legal Proceedings 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] Item 1A. Risk Factors 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] - There have been no material changes in the Company's risk factors from those in the 2024 Annual Report on Form 10-K[162] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 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] - 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] 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 This section states that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities[164] Item 4. Mine Safety Disclosures 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] Item 5. Other Information This section states that there is no other information to report under this item - No other information is reported under this item[167] Item 6. Exhibits 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] - The filing also includes Inline XBRL documents and the Cover Page Interactive Data File[168][169] 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]