FirstCash(FCFS) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter revenues increased by 20% to $1.058 billion, marking the first fiscal quarter in history where consolidated revenues exceeded $1 billion[2][12] - Full year 2025 net income reached a record $330 million, a 28% increase compared to the prior year, while adjusted net income was $390 million, up 29%[12] - Diluted earnings per share for the fourth quarter increased by 26% to $2.35 on a GAAP basis and by 25% to $2.64 on an adjusted basis[12] - Total segment revenues increased by 14% in the fourth quarter and 12% for the full year, driven by strong same-store revenue growth[12] - Adjusted EBITDA for the full year increased by 25% to $698 million, while fourth quarter adjusted EBITDA totaled $210 million, a 27% increase[12] - Total revenue for the three months ended December 31, 2025, was $1,058,419,000, an increase of 19.7% compared to $883,811,000 for the same period in 2024[41] - Net income for the twelve months ended December 31, 2025, was $330,375,000, representing a 27.7% increase from $258,815,000 in 2024[41] - For the twelve months ended December 31, 2025, total revenue was $3,661,043,000, up from $3,388,514,000 in 2024, marking a year-over-year increase of 8.0%[51] - The net revenue for the twelve months ended December 31, 2025, was $1,840,607,000, compared to $1,629,532,000 in 2024, showing an increase of 12.9%[51] Operational Growth - The company added 28 pawn locations in the fourth quarter, including 17 acquisitions in the U.S. and 11 new openings in Latin America[12][4] - The company expanded its U.K. operations through the acquisition of H&T, which added 286 stores and contributed to strong fourth quarter results[4][17] - The Company added 344 pawn stores in 2025, increasing the total store count by 10% to over 3,300 locations globally[28] - The total locations increased by 19 during the three months ended December 31, 2025, with 11 new locations opened and 17 acquired[56] - The company operated 3,330 pawn store locations as of December 31, 2025, with 1,207 in the U.S., 1,732 in Mexico, and 286 in the U.K.[55] Cash Flow and Dividends - Operating cash flows reached a record $586 million for 2025, with adjusted free cash flows totaling $307 million[12] - The company declared a quarterly cash dividend of $0.42 per share, to be paid in February 2026[1] - The Board of Directors declared a $0.42 per share cash dividend for Q1 2026, representing an annualized dividend of $1.68 per share[20] - Free cash flow for the twelve months ended December 31, 2025, was $294,875,000, an increase from $260,400,000 in 2024, while adjusted free cash flow rose to $307,146,000 from $262,106,000[66] Debt and Liabilities - Outstanding debt at December 31, 2025 was $2.2 billion, with a net debt to adjusted EBITDA ratio of 3.0x[20] - Total liabilities increased to $3,024,001,000 as of December 31, 2025, compared to $2,422,822,000 in 2024, representing a rise of 24.9%[43] Revenue Sources - Pawn loan fees increased to $249,955,000 for the three months ended December 31, 2025, up 31.6% from $189,984,000 in the same period of 2024[41] - Retail merchandise sales reached $501,261,000 for the three months ended December 31, 2025, compared to $413,671,000 in 2024, marking a 21.1% increase[41] - Total gross transaction volume for the twelve months ended December 31, 2025, was $1,021,865,000, compared to $1,078,866,000 for the previous year[54] Financial Ratios and Metrics - The adjusted return on equity for the twelve months ended December 31, 2025, was 18%, while the adjusted return on assets was 8%[68] - The average outstanding pawn loan amount was $259, with U.S. at $312, LatAm at $112, and U.K. at $825[53] - The provision for loan losses for the twelve months ended December 31, 2025, was $162,706,000, compared to $143,827,000 in 2024, an increase of 13.1%[51] Currency Exchange Rates - The end-of-period exchange rate for the U.S. dollar to Mexican peso improved by 11% from 20.3 in 2024 to 18.0 in 2025[72] - The end-of-period exchange rate for the U.S. dollar to Colombian peso improved by 15% from 4,409 in 2024 to 3,757 in 2025[72] - The end-of-period exchange rate for the British pound sterling to U.S. dollar improved by 8% from 1.25 in 2024 to 1.35 in 2025[72] Miscellaneous - The company uses non-GAAP financial measures to provide greater transparency and a more complete understanding of its financial performance[59] - The company reported a provision for loan losses of $162,706,000 for the twelve months ended December 31, 2025, compared to $143,827,000 in 2024, indicating an increase of 13.1%[41] - The company utilized constant currency results to evaluate performance in Latin America and the U.K., providing a clearer picture of operational results[69]