FirstCash Holdings, Inc.

FirstCash Holdings, Inc. operates as the leading operator of pawn stores in the U.S., Latin America and the U.K., and also operates a retail POS payment solutions business through its wholly owned subsidiary American First Finance, LLC (AFF). The Company's two business lines are organized into four reportable segments: the U.S. pawn segment, the Latin America pawn segment, the U.K. pawn segment, and the retail POS payment solutions segment. The pawn industry in the U.S. is well established, with the highest concentration of pawn stores located in states that have favorable customer demographics, high population growth and maintain regulations most conducive to profitable pawn operations, generally in the Southeast, Midwest, Southwest and Mountain West regions. In Latin America, a large percentage of the population is unbanked or under-banked with limited access to traditional consumer credit, and the Company believes there is opportunity for further expansion in Mexico and other Latin American countries due to the large potential consumer base and limited competition from other large format, full-service pawn store operators. The U.K. and European pawn industries remain highly fragmented and the Company believes there is opportunity for further expansion in the U.K. and other European countries.

The Company encounters significant competition in all aspects of its pawn operations, with primary competitors including other pawnshops, branch-based consumer lenders, banks, credit unions, credit card issuers, online lenders, POS consumer finance and BNPL companies, LTO companies, and general, specialty and online retailers. Management believes the pawn industry remains highly fragmented with an estimated 12,000 to 14,000 total pawnshops in the U.S., 8,000 to 9,000 total pawnshops in Mexico and slightly under 1,000 total pawnshops in the U.K. Including the Company, there are two publicly-held, U.S.-based pawnshop operators, both of which have pawn operations in the U.S., Mexico, Guatemala and El Salvador. The Company is the largest public or private operator of large format, full-service pawn stores in the U.S., Mexico and the U.K. AFF's retail POS payment solutions business competes with national, regional and local LTO stores, virtual LTO companies, rental stores, buy now / pay later providers, and various other types of consumer finance companies.

The Company generates revenue through two primary business lines: pawn operations and retail POS payment solutions. Pawn operations generate revenue from retail merchandise sales of pre-owned consumer products, pawn loan fees on non-recourse loans collateralized by personal property, and wholesale scrap jewelry sales. Pawn loan fees accounted for 46% of the Company's consolidated net revenue during 2025, while gross profit from pawn merchandise sales accounted for 39% of consolidated net revenue during 2025. The retail POS payment solutions segment, conducted solely through AFF, generates revenue from leased merchandise income, interest and fees on finance receivables, and servicing fees from off-balance sheet installment loans. Net revenues from AFF accounted for 15% of the Company's consolidated net revenues during 2025. Pawn loans are non-recourse, and the Company does not engage in post-default collection efforts, does not take legal actions against customers for defaulted loans, does not ban customers for nonpayment, nor does it report any negative credit information to credit reporting agencies.

The U.S. pawn segment consists of pawn operations in 29 U.S. states and the District of Columbia, operating 1,207 stores as of December 31, 2025. For the year ended December 31, 2025, the U.S. pawn segment generated total revenue of $1,753.382 million ¹, net revenue of $1,021.513 million ², and pre-tax operating income of $452.568 million ³ with a pre-tax segment operating margin of 26% ⁴. U.S. pawn loan fees were $555.035 million ⁵ and retail merchandise sales were $1,046.258 million ⁶ during 2025. The average outstanding pawn loan amount in the U.S. was $312 ⁷ per transaction as of December 31, 2025. U.S. pawn loan receivables were $450.516 million ⁸ and inventories were $286.102 million ⁹ as of December 31, 2025. The gross profit margin on retail merchandise sales in the U.S. was 42% ¹⁰ during both 2025 and 2024.

The Latin America pawn segment consists of pawn operations in Mexico, Guatemala, El Salvador and Colombia, operating 1,837 stores as of December 31, 2025, including 1,732 stores in Mexico, 75 stores in Guatemala, 18 stores in El Salvador and 12 stores in Colombia. For the year ended December 31, 2025, the Latin America pawn segment generated total revenue of $889.524 million ¹¹, net revenue of $467.261 million ¹², and pre-tax operating income of $177.446 million ¹³ with a pre-tax segment operating margin of 20% ¹⁴. Latin America pawn loan fees were $254.061 million ¹⁵ and retail merchandise sales were $584.129 million ¹⁶ during 2025. The average outstanding pawn loan amount in Latin America was $112 ¹⁷ per transaction as of December 31, 2025. Latin America pawn loan receivables were $167.438 million ¹⁸ and inventories were $129.269 million ¹⁹ as of December 31, 2025. The gross profit margin on retail merchandise sales in Latin America was 35% ²⁰ during both 2025 and 2024. The U.K. pawn segment consists of pawn operations in England, Scotland and Wales, operating 286 stores as of December 31, 2025, following the acquisition of H&T Group plc on August 14, 2025. For the period from August 14, 2025 to December 31, 2025, the U.K. pawn segment contributed total revenue of $150.664 million ²¹, net revenue of $85.091 million ²², and pre-tax operating income of $52.486 million ²³ with a pre-tax segment operating margin of 35% ²⁴. The average outstanding pawn loan amount in the U.K. was $825 ²⁵ per transaction as of December 31, 2025. U.K. pawn loan receivables were $213.543 million ²⁶ and inventories were $71.861 million ²⁷ as of December 31, 2025. The retail POS payment solutions segment, consisting solely of AFF, generated total revenue of $870.217 million ²⁸, net revenue of $266.704 million ²⁹, and pre-tax operating income of $169.126 million ³⁰ with a pre-tax segment operating margin of 19% ³¹ for the year ended December 31, 2025. AFF's gross transaction volumes originated were $1,021.865 million ³² during 2025, consisting of $435.750 million ³³ in leased merchandise and $586.115 million ³⁴ in finance receivables. AFF offers three primary products: LTO transactions, which accounted for 43% ³⁵ of AFF's gross transaction volumes during 2025; retail installment sales agreements (RISA), which accounted for 12% ³⁶ of AFF's gross transaction volumes during 2025; and bank-originated installment loans, which accounted for 45% ³⁷ of AFF's gross transaction volumes during 2025. AFF currently has approximately 16,400 ³⁸ active retail merchant partner locations and e-commerce platforms offering its leasing and financing products, spanning approximately 30 ³⁹ vertical channels.

On August 14, 2025, the Company completed the acquisition of H&T Group plc, the leading pawn operator in the United Kingdom with 286 store locations. The total equity value for the H&T Acquisition, including cash consideration for the shares, was £289.1 million ($392.4 million USD using the August 13, 2025 closing GBP/USD exchange rate of 1.36) ⁴⁰. H&T had outstanding indebtedness of £79.6 million as of August 14, 2025 ($108.0 million USD using the August 13, 2025 closing GBP/USD exchange rate of 1.36) ⁴¹, which the Company assumed upon closing. During 2025, the Company acquired 23 pawn stores in the U.S. for a cumulative purchase price of $106.3 million ⁴², net of cash acquired. The Company also opened 32 new locations in Latin America, two new stores in the U.S. and one new store in the U.K. during 2025. During 2025, the Company purchased the real estate at 43 store locations for a cumulative purchase price of $61.9 million ⁴³. In July 2023, the Board authorized a common stock repurchase program for up to $200.0 million ⁴⁴ of the Company's outstanding common stock. During 2025, the Company repurchased a total of 912,000 shares ⁴⁵ of common stock at an aggregate cost of $115.0 million ⁴⁶ and an average cost per share of $126.03 ⁴⁷, which completed that share repurchase program. In October 2025, the Board authorized an additional common stock repurchase program for up to $150.0 million ⁴⁸ of the Company's outstanding common stock, of which the entire $150.0 million ⁴⁹ is currently remaining. During 2025, the Company paid quarterly cash dividends to its shareholders totaling $70.9 million ⁵⁰. In January 2026, the Board declared a $0.42 per share ⁵¹ first quarter cash dividend on common shares outstanding, or an aggregate of $18.5 million ⁵² based on the December 31, 2025 share count. The Company also incurred $14.4 million ⁵³ in merger and acquisition expenses during 2025, primarily associated with the H&T Acquisition.

For the fiscal year ended December 31, 2025, the Company reported consolidated revenue of $3,661.043 million ⁵⁴, compared to $3,388.514 million ⁵⁵ in 2024, representing an 8% ⁵⁶ increase. Net income was $330.375 million ⁵⁷ in 2025, compared to $258.815 million ⁵⁸ in 2024, a 28% ⁵⁹ increase. Diluted earnings per share were $7.42 ⁶⁰ in 2025, compared to $5.73 ⁶¹ in 2024, a 29% ⁶² increase. Adjusted net income (non-GAAP) was $390.142 million ⁶³ in 2025, compared to $302.680 million ⁶⁴ in 2024, a 29% ⁶⁵ increase. Adjusted diluted earnings per share (non-GAAP) were $8.76 ⁶⁶ in 2025, compared to $6.70 ⁶⁷ in 2024, a 31% ⁶⁸ increase. EBITDA (non-GAAP) was $677.727 million ⁶⁹ in 2025, compared to $551.008 million ⁷⁰ in 2024, a 23% ⁷¹ increase. Adjusted EBITDA (non-GAAP) was $698.389 million ⁷² in 2025, compared to $558.437 million ⁷³ in 2024, a 25% ⁷⁴ increase. The consolidated effective income tax rate was 26.2% ⁷⁵ for 2025, compared to 24.5% ⁷⁶ for 2024. As of December 31, 2025, the Company had outstanding principal indebtedness of $2,224.0 million ⁷⁷ and availability of $178.0 million ⁷⁸ under its credit facilities, subject to certain financial covenants. Total pawn earning assets (pawn loans plus inventories) were $1,318.729 million ⁷⁹ as of December 31, 2025, compared to $852.447 million ⁸⁰ as of December 31, 2024.

The Company's primary growth vector for its pawn operations is the continued expansion of its store network through both de novo openings and strategic acquisitions. Over the last five years, 783 pawn stores have been opened or acquired, with the net store count growing at a compound annual store growth rate of 4% ⁸¹ over this period. The Company intends to open or acquire additional stores in locations where management believes appropriate consumer demand and other favorable conditions exist. For 2026, the Company expects to continue adding store locations through new store openings and acquisitions, subject to its ability to identify acquisition opportunities and new location sites in markets with attractive demographics and favorable regulatory environments. The Company also intends to continue expansion of its pawn operations through growth of pawn receivables and inventories in existing stores. The H&T Acquisition, completed on August 14, 2025, added 286 store locations in the United Kingdom, and the Company believes there is opportunity for further expansion in the U.K. and other European countries given the highly fragmented nature of those markets.

AFF's business strategy is to continue building market share through additional expansion of both its brick-and-mortar and online merchant base while increasing customer utilization rates by continuous improvement and enhancement of its omni-channel user experience. With an ongoing focus toward improving application conversion rates for qualified applicants combined with an enhanced risk segmentation of its applications, AFF believes that it has numerous opportunities to gain additional market share and expand its large and fast-growing merchant and customer base to achieve greater levels of revenue and profitability. AFF expects to expand its business primarily by promoting and expanding relationships with both new and existing customers and retail merchant partners, and intends to continue to make investments in its customer and merchant support operations and facilities, its technology platforms and its proprietary decisioning platforms and processes. During the third quarter of 2025, AFF began assisting certain customers in applying for a direct-to-consumer unsecured installment loan that is underwritten and fully retained by the Bank (OBS Loan), which represents a new product vector for the business.The Company expects to continue to incur additional integration costs during 2026 related to the H&T Acquisition, with the substantial majority of these costs being non-recurring expenses. The Company does not own, operate or contract for manufacturing, supply chain, warehousing or distribution facilities to support its pawn operations, and does not own, lease or operate any long-haul trucks to support its 3,330 pawn locations. The Company is working to further reduce energy consumption by continuing to retrofit its offices and stores with LED lighting and more energy efficient HVAC equipment. As of December 31, 2025, the Company had approximately 22,000 ⁸² employees across seven countries.

The Company's primary capital requirements include expansion of pawn operations through growth of pawn receivables and inventories in existing stores, new store openings, strategic acquisitions and purchases of underlying real estate; growth of earning assets in the retail POS payment solutions operations; and return of capital to shareholders through dividends and stock repurchases. The Company believes that net cash provided by operating activities and available and unused funds under its revolving credit facilities will be adequate to meet its liquidity and capital needs over the next 12 months and also in the longer term beyond the next 12 months. During 2025, the Company paid quarterly cash dividends totaling $70.9 million ⁸³. In January 2026, the Board declared a $0.42 per share ⁸⁴ first quarter cash dividend. In October 2025, the Board authorized an additional common stock repurchase program for up to $150.0 million ⁸⁵ of the Company's outstanding common stock, of which the entire $150.0 million ⁸⁶ is currently remaining. The Company intends to continue repurchases under its active share repurchase program, including through open market transactions under trading plans in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act.

The Company faces significant headwinds from the extensive regulatory environment in which it operates, including uncertainty involving the present regulatory environment in the jurisdictions in which it operates. The Company derives significant revenue, earnings and cash flow from operations in Latin America, primarily in Mexico, creating inherent risks regarding the overall stability of the trading relationship between Mexico and the U.S. and the burdens imposed by any changes to regulations, tariffs or other federal or state legislation. The Company has significant exposure to fluctuations and devaluations of the Mexican peso and the health of the Mexican economy, which may be negatively impacted by changes in U.S. trade treaties, including the United States-Mexico-Canada Agreement and corporate tax policy. There is continued uncertainty around Mexico's current federal administration and how its policies, including conducting aggressive corporate tax and other regulatory audits, adverse government discretion, and support of increased employee minimum wages, profit sharing and benefit programs, may impact U.S. companies doing business in Mexico generally and pawn and consumer finance companies in particular. The Company also faces headwinds from potential changes in consumer behavior and shopping patterns which could impact demand for its pawn loan, retail, LTO and retail finance products, as well as from labor shortages and increased labor costs.

The Company's AFF business faces specific headwinds, including that a number of its legacy merchant partners operate brick-and-mortar retail locations, many of which are furniture stores which have been impacted industry-wide by sales declines over the past several years. Certain of AFF's larger furniture-focused merchant partners have experienced lagging sales, store closures and, in some instances, including Conn's Appliances, Inc. and American Freight, Inc., bankruptcies, which has and is expected to continue to negatively impact AFF's originations. The current economic environment, characterized by elevated inflation, elevated interest rates, declines in consumer confidence and uncertainty about economic stability, adversely affected merchant sales volumes in certain categories and demand in general for AFF's products in 2025. The Company also faces headwinds from currency fluctuations, primarily involving the Mexican peso and British pound sterling, and from declines in commodity market prices of gold, other precious metals and diamonds, which could negatively affect profits given that approximately 75% ⁸⁷ of the Company's pawn loans were collateralized with jewelry, which is primarily gold, and 62% ⁸⁸ of its inventories consisted of jewelry, which is also primarily gold, as of December 31, 2025.

The Company faces material risks from the extensive and evolving regulatory environment governing its pawn and retail POS payment solutions businesses in the U.S., Latin America and the U.K., including the potential for interest rate caps such as the 36% ⁸⁹ cap on consumer loans that has been proposed at the federal level and in certain states, which could materially impair revenue and profitability. The Company's AFF business is dependent on its relationship with a Utah state-chartered bank for its bank-originated installment loan products, which accounted for 45% ⁹⁰ of AFF's gross transaction volumes during 2025, and the current loan program agreement expires in August 2028 ⁹¹; if this relationship is terminated and AFF cannot replace it, its business would be materially affected. The Company has significant exposure to fluctuations in the Mexican peso and British pound sterling, as it derives substantial revenue and earnings from operations in Latin America and the U.K., and a 5% ⁹² unfavorable change in the average value of the Mexican peso impacted Latin America segment results in 2025. The Company's profitability is sensitive to commodity market prices for gold, other precious metals and diamonds, as approximately 75% ⁹³ of pawn loans were collateralized with jewelry (primarily gold) and 62% ⁹⁴ of inventories consisted of jewelry as of December 31, 2025. The AFF business faces concentration risk from its merchant partners, as certain larger furniture-focused merchants including Conn's Appliances, Inc. and American Freight, Inc. have experienced bankruptcies, which has and is expected to continue to negatively impact AFF's originations.

Management's message emphasizes the Company's position as the leading operator of pawn stores in the U.S., Latin America and the U.K., and highlights the completion of the H&T Acquisition on August 14, 2025 as a transformative event that added 286 store locations in the United Kingdom. The strategic priorities emphasized for the period ahead include continuing to drive profitable growth by opening new de novo retail pawn locations, acquiring existing pawn stores in strategic markets, and increasing revenue and operating profits in existing stores. For AFF, the strategic priorities are to continue building market share through additional expansion of both its brick-and-mortar and online merchant base while increasing customer utilization rates by continuous improvement and enhancement of its omni-channel user experience. Management also emphasizes the Company's commitment to returning capital to shareholders, as evidenced by the declaration of a $0.42 per share ⁹⁵ first quarter cash dividend in January 2026 and the authorization of an additional $150.0 million ⁹⁶ common stock repurchase program in October 2025. The forward-looking statements in the filing caution that actual results may differ materially from those anticipated due to risks and uncertainties, including those related to the extensive regulatory environment, the H&T Acquisition, potential changes in consumer behavior, labor shortages, economic conditions, currency fluctuations, and competition.