FirstCash Reports Record Second Quarter Operating Results; Strong Performance Across All Segments Drives Over 30% Year-to-Date EPS Growth; Increases Quarterly Cash Dividend 11%

Core Insights - FirstCash Holdings, Inc. reported strong operating results for the second quarter and year-to-date periods, with significant growth in pawn demand and earnings across its segments [2][27][31] - The Board of Directors declared a quarterly cash dividend of $0.42 per share, marking an 11% increase from the previous dividend [1][20] Financial Performance - For the three months ended June 30, 2025, revenue was $830.622 million, with net income of $59.805 million, representing a 22% increase year-over-year on a GAAP basis [4][5] - Adjusted diluted earnings per share for the second quarter increased by 31% compared to the prior-year quarter, reaching $1.79 [5][10] - Year-to-date net income increased by 30% over the prior-year period on a GAAP basis, totaling $143.396 million [5][10] Segment Performance - Pawn demand remains robust, with same-store pawn receivables up 13% in both the U.S. and Latin America [2][11] - The U.S. pawn segment reported a record pre-tax operating income of $98 million for the second quarter, an 8% increase compared to the prior-year quarter [11][46] - The Latin America pawn segment saw a 10% increase in pre-tax operating income on a U.S. dollar basis, with a 22% increase on a local currency basis [15][29] Acquisition and Expansion - The company expects to complete the acquisition of H&T Group plc, the largest pawnbroker in the U.K., by the end of the third quarter of 2025 [2][10] - The acquisition will expand FirstCash's operations into Europe, creating the largest publicly traded pawn platform in the U.S., Latin America, and the U.K. with over 3,300 locations [10][31] Cash Flow and Shareholder Returns - Consolidated operating cash flows for the twelve months ended June 30, 2025, grew by 26% to $555 million [20][32] - The company repurchased 525,000 shares of common stock at a total cost of $60 million over the past twelve months [20][32] - The annualized dividend is now $1.68 per share, reflecting an 11% increase over the previous annualized dividend [20][32] Outlook - The outlook for 2025 remains positive, with expected year-over-year growth in income driven by continued growth in earning asset balances and store additions [21][26] - Same-store pawn loans are projected to grow by 10% to 12% for the full year, up from previous expectations of 9% to 11% [21][26]