FirstCash Reports Record First Quarter Operating Results; Earnings per Share Increase 39% in Total and 34% on an Adjusted Basis; Operating Cash Flows Fund Store Additions, $60 Million of First Quarter Share Repurchases and Continued Quarterly Cash Dividend

Core Insights - FirstCash Holdings, Inc. reported record first quarter results for 2025, with net income increasing by 36% on a GAAP basis and 32% on an adjusted basis, driven by growth in core pawn operations and strong margins in the AFF POS payment solutions segment [2][9][30] Financial Performance - Total revenue for the first quarter was $836 million, flat on a U.S. dollar basis but up 4% on a constant currency basis compared to the prior year [9] - Net income for the first quarter was $83.6 million on a GAAP basis and $92.8 million on an adjusted basis, reflecting a 36% and 32% increase respectively compared to the prior year [6][9] - Diluted earnings per share increased by 39% on a GAAP basis to $1.87 and by 34% on an adjusted basis to $2.07 compared to the prior year [9] Segment Performance - The U.S. pawn segment saw a 13% increase in same-store pawn receivables, marking seven consecutive quarters of double-digit growth, contributing to a 17% increase in earnings from this segment [3][25] - In Latin America, same-store pawn receivables increased by 14% on a local currency basis, despite a 20% unfavorable change in the average exchange rate of the Mexican peso [11][25] - The AFF segment reported a record pre-tax operating income of $52 million, a 58% increase compared to the prior year, driven by gross margin improvement and reduced operating expenses [17][28] Cash Flow and Investments - Strong cash flows allowed the company to fund the addition of 12 pawn locations, real estate purchases, and $60 million in stock repurchases during the first quarter [5][29] - Consolidated operating cash flows for the trailing twelve months ended March 31, 2025, grew by 27% to $544 million compared to the prior year [17][29] Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.38 per share, representing an annualized dividend of $1.52 per share, to be paid in May 2025 [21] - Over the past twelve months, the company repurchased 1,246,000 shares at a total cost of $145 million, with a payout ratio of approximately 75% of net income [21][29] 2025 Outlook - The company expects continued growth in income driven by the demand for pawn loans and the expansion of the pawn store base through new openings and acquisitions [18][22] - Full year pawn fee growth is estimated to be in the range of 9% to 11%, with retail sales expected to grow in the mid-single digits [22][31]