FirstCash(US:FCFS)2025-10-30 19:19Financial Performance - Third quarter revenue reached $935.6 million, a 12% increase year-over-year, while year-to-date revenue increased 4% to $2.6 billion[5] - Net income for the third quarter was $82.8 million, up 28% from the prior year, with year-to-date net income increasing 29% to $226.2 million[5] - Diluted earnings per share for the third quarter increased 29% to $1.86, and year-to-date diluted earnings per share rose 31% to $5.07[5] - Adjusted EBITDA for the third quarter increased 30% year-over-year, totaling $172.8 million, while year-to-date adjusted EBITDA rose 24% to $468.5 million[5] - Total revenue for the three months ended September 30, 2025, was $935.579 million, an increase of 11.7% compared to $837.321 million for the same period in 2024[40] - Net income for the three months ended September 30, 2025, was $82.807 million, representing a 27.7% increase from $64.827 million in the same period of 2024[40] - Retail merchandise sales increased to $410.968 million for the three months ended September 30, 2025, up 13.2% from $363.141 million in 2024[40] - Pawn loan fees rose to $221.088 million, a 18.5% increase compared to $186.561 million in the prior year[40] - Adjusted net income for the nine months ended September 30, 2025, was $273,032,000, up from $207,266,000 in the same period of 2024, reflecting a 32% growth[61] - Adjusted diluted EPS for the nine months ended September 30, 2025, was $6.12, compared to $4.58 in the same period of 2024, marking a 33% increase[61] - EBITDA for Q3 2025 was $172,821,000, up from $138,134,000 in Q3 2024, indicating a 25% increase[62] - Adjusted EBITDA for the nine months ended September 30, 2025, was $488,563,000, compared to $392,752,000 in the same period of 2024, a 24% increase[62] Asset and Liability Management - Consolidated assets exceeded $5 billion, totaling $5.2 billion, including record pawn receivables of $788 million[9] - Total current assets as of September 30, 2025, were $1,792.360 million, up from $1,329.350 million as of September 30, 2024[42] - Total assets increased to $5,182.316 million as of September 30, 2025, compared to $4,392.847 million at the end of 2024[42] - Total liabilities as of September 30, 2025, were $2,982.670 million, an increase from $2,393.653 million in the previous year[42] - The net debt to adjusted EBITDA ratio was 3.2x as of September 30, 2025, with expectations to drop below 3.0x post-H&T acquisition[16] Shareholder Returns - The company authorized a new $150 million share repurchase plan and declared a quarterly cash dividend of $0.42 per share[1] - The Board of Directors declared a fourth quarter cash dividend of $0.42 per share, representing an annualized dividend of $1.68 per share[22] - The Company repurchased 230,000 shares of common stock for a total cost of $30 million during the third quarter, with total repurchases over the past twelve months amounting to 755,000 shares at $90 million[22] - The company has authorized an additional $150 million for share repurchases, bringing the total available for repurchases to $175 million[22][32] Market Expansion and Operations - The company plans to open 20-25 new stores primarily in Latin America by the end of January 2026, in addition to acquiring 15 U.S. locations[9] - The Company completed the acquisition of H&T and now operates over 3,300 pawn locations across six countries[25][34] - The company plans to continue expanding its market presence and investing in new technologies to enhance customer experience and operational efficiency[50] - As of September 30, 2025, the company operated 3,311 pawn store locations across the U.S., Mexico, Guatemala, El Salvador, Colombia, and the U.K.[53] Revenue and Growth Expectations - The Company expects fourth quarter revenues to range from $85 to $90 million, driven by seasonal holiday shopping and strong pawn receivable balances[28] - Full year 2025 origination volume is expected to decline by 7% to 10% compared to 2024, but excluding certain prior year originations, volumes are expected to increase by 15% to 20%[28] - The consolidated effective income tax rate for full year 2025 is expected to range from 25% to 26%[28] Segment Performance - Pawn loan originations in Latin America increased over 20% on a local currency basis in October, with mid to high-teen pawn fee revenue growth expected in the fourth quarter[23] - Total revenue for the Latin America pawn segment was $226,653,000 for the three months ended September 30, 2025, a decrease of 1.3% compared to the prior year[70] - Pawn loan fees contributed $66,242,000 to revenue for the three months ended September 30, 2025, reflecting a decrease of 1.4% year-over-year[70] - Segment pre-tax operating income was $46,528,000 for the three months ended September 30, 2025, down 0.9% from the previous year[70] - Earning assets in the Latin America pawn segment totaled $279,330,000 as of September 30, 2025, a decrease of 6.0% compared to the prior year[70] Operational Metrics - The company reported a provision for loan losses of $40.347 million for the three months ended September 30, 2025, slightly down from $40.557 million in the same period of 2024[40] - Operating expenses for the three months ended September 30, 2025, were $236.528 million, an increase from $224.926 million in 2024[40] - The delinquency rate for finance receivables increased to 22.4% in September 2025 from 19.4% in September 2024[52] - The average outstanding pawn loan amount was $170, down from $229 in the prior year[51] - The provision rate for finance receivables was 28.0% for the three months ended September 30, 2025, compared to 28.4% in the same period of 2024[52] - Inventory turns for the trailing twelve months were 3.2 times as of September 30, 2025, compared to 3.1 times in the previous year[51]