FirstCash(US:FCFS)2025-11-03 20:45Store Operations - As of September 30, 2025, the Company operated a total of 3,311 pawn store locations, including 1,193 in the U.S., 1,729 in Mexico, and 286 in the U.K.[89] - The Company completed the acquisition of H&T, the leading pawn operator in the U.K. with 286 store locations, on August 14, 2025[85]. - The company opened 21 new stores in Latin America and two in the U.S. during the nine months ended September 30, 2025, and acquired six pawn stores in the U.S. for $35.1 million[157]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $935.579 million, an increase from $837.321 million in the same period of 2024, representing an increase of approximately 11.7%[94][95]. - Total revenue for the nine months ended September 30, 2025, was $2.602 billion, with significant contributions from retail merchandise sales and pawn loan fees[129]. - Total revenue for the nine months ended September 30, 2025, was $2,504.7 million, a slight increase from $2,504.0 million in the same period of 2024[130]. - Total revenue for the Latin America pawn segment was $229.674 million for the three months ended September 30, 2025, a decrease of 1.3% compared to the prior year[184]. - Net revenue for the segment was $121.743 million for the three months ended September 30, 2025, reflecting a decline of 1.2% year-over-year[184]. - Segment pre-tax operating income was $46.973 million for the three months ended September 30, 2025, down 0.9% from the previous year[184]. Revenue Breakdown - Retail merchandise sales for the three months ended September 30, 2025, were $410.968 million, compared to $363.141 million in the same period of 2024, reflecting a growth of about 13.2%[94][95]. - U.S. retail merchandise sales increased 8% to $253.0 million during Q3 2025 compared to $235.0 million in Q3 2024[98]. - Latin America retail merchandise sales increased 12% to $144.6 million during Q3 2025 compared to $129.1 million in Q3 2024[105]. - U.S. retail merchandise sales increased by 7% to $754.1 million for the nine months ended September 30, 2025, compared to $702.1 million in 2024[132]. - Latin America retail merchandise sales increased by 2% to $401.1 million for the nine months ended September 30, 2025, compared to $394.4 million in 2024[137]. Loan Performance - The Company’s pawn loan fees for the three months ended September 30, 2025, were $221.088 million, up from $186.561 million in the same period of 2024, marking an increase of about 18.5%[94][95]. - U.S. pawn loan receivables increased 12% to $426.3 million as of September 30, 2025, compared to $381.0 million as of September 30, 2024[100]. - Latin America pawn loan receivables increased 27% to $173.2 million as of September 30, 2025, compared to $136.5 million as of September 30, 2024[107]. - U.S. pawn loan fees increased 8% to $138.9 million during Q3 2025 compared to $128.4 million in Q3 2024[101]. - Latin America pawn loan fees increased 16% to $67.2 million during Q3 2025 compared to $58.2 million in Q3 2024[108]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $236.528 million, compared to $224.926 million for the same period in 2024, indicating an increase of approximately 5.2%[94][95]. - U.S. operating expenses increased 4% to $133.0 million during Q3 2025 compared to $128.1 million in Q3 2024[102]. - Latin America operating expenses increased 12% to $70.3 million during Q3 2025 compared to $63.1 million in Q3 2024[109]. - Administrative expenses rose by 39% to $58.8 million in Q3 2025, primarily due to the addition of H&T's expenses and inflationary impacts[124]. - Operating expenses for the retail POS payment solutions segment decreased by 31% to $71.4 million during the nine months ended September 30, 2025, compared to $103.9 million in 2024[148]. Profitability - The net income before income taxes for the three months ended September 30, 2025, was $112.479 million, compared to $85.180 million for the same period in 2024, showing an increase of approximately 32%[94][95]. - Adjusted net income for Q3 2025 was $100.6 million, up from $75.2 million in Q3 2024, representing a 33.8% increase[178]. - Adjusted diluted earnings per share for Q3 2025 increased to $2.26, compared to $1.67 in Q3 2024, reflecting a 35.3% growth[178]. - EBITDA for Q3 2025 was $172.8 million, a 25.1% increase from $138.1 million in Q3 2024[179]. - Adjusted EBITDA for Q3 2025 reached $180.6 million, up from $139.3 million in Q3 2024, marking a 29.6% rise[179]. - The company reported a net income of $82.8 million for Q3 2025, up from $64.8 million in Q3 2024, a growth of 27.5%[179]. Cash Flow and Capital Management - Cash flow provided by operating activities increased by $37.5 million, or 11%, to $379.3 million for the nine months ended September 30, 2025, driven by an increase in net income[168]. - Cash flow used in investing activities surged 97% to $662.4 million for the nine months ended September 30, 2025, primarily for pawn store acquisitions[169]. - The company repurchased 755,000 shares of common stock at an aggregate cost of $89.6 million during the nine months ended September 30, 2025, compared to 721,000 shares for $85.0 million in the prior year[162]. - As of September 30, 2025, the company had working capital of $1,433.1 million and a current ratio of 5.0:1[167]. - The company declared a fourth quarter cash dividend of $0.42 per share, totaling $18.5 million, to be paid on November 26, 2025[161]. Market Risks and Strategic Insights - The company does not engage in speculative or leveraged transactions, maintaining a stable approach to market risks[186]. - There have been no material changes to the company's exposure to market risks since December 31, 2024[186]. - The company utilized constant currency results to evaluate performance in Latin America and the U.K., providing insights into underlying business operations[182].