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FirstCash Holdings, Inc. (FCFS)·Q3 2025 Earnings Summary

Executive Summary

  • FirstCash delivered record Q3 results with consolidated revenue of $935.6M and adjusted EPS of $2.26, both materially above Wall Street consensus; revenue beat by ~$73.9M and adjusted EPS beat by ~$0.33. The company also declared a $0.42 quarterly dividend and authorized a new $150M share repurchase plan .
  • Strength was broad-based: U.S. and LatAm pawn posted double‑digit same-store receivable growth and margin expansion; newly acquired H&T in the U.K. added $55M revenue and a 33% pre‑tax margin for the partial quarter .
  • Guidance raised: LatAm revenue outlook increased; AFF full‑year net revenue revised to flat vs prior forecast of −6% to −8%; H&T Q4 accretion guided to $0.18–$0.20 EPS and Q4 U.K. revenue of $85–$90M .
  • Near‑term stock catalysts: outsized beat on EPS and revenue, improved guidance (especially AFF and U.K.), and continuing capital returns; initial market reaction was mixed despite the beats, per third‑party coverage .

What Went Well and What Went Wrong

  • What Went Well

    • Record operating results across all pawn segments; U.S. pawn pre‑tax income rose to $112M with margin up to 26%, LatAm pre‑tax income up 22% to $47M, U.K. pre‑tax income $18M with 33% margin for 6‑week stub period .
    • Demand indicators strengthened: local currency same‑store pawn receivables up 13% (U.S.), 18% (LatAm), and 25% (U.K.); retail margins solid at 43% (U.S.) and 36% (LatAm). CEO: “operating results were outstanding, evidenced by accelerating revenue growth, strong margins…” .
    • AFF earnings surged 52% YoY to $46M on improved gross margins and lower OpEx; net revenue grew 8% despite gross revenues −14% due to diversified merchant growth and lower provisions .

  • What Went Wrong

    • AFF gross transaction volume declined 13% YoY on fallout from the American Freight and Conn’s bankruptcies; gross revenues −14% in Q3 despite underlying improvements .
    • Inventory aging increased at the consolidated level to 2.6% >1 year (vs 1.5% last year), and AFF delinquency metrics rose vs prior year (leased merchandise delinquency 25.5% vs 23.6%; finance receivables 22.4% vs 19.4%) .
    • Elevated interest expense and M&A costs: interest expense rose to $32.2M and merger & acquisition expenses were $9.5M in Q3; net debt increased to $2.1B with revolver usage of $575M post H&T acquisition .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$837.3 $830.6 $935.6
Net Revenue ($USD Millions)$404.6 $412.8 $473.7
GAAP Diluted EPS ($)$1.44 $1.34 $1.86
Adjusted Diluted EPS ($)$1.67 $1.79 $2.26
Net Income - (GAAP) ($USD Millions)$64.8 $59.8 $82.8
Net Income - Adjusted ($USD Millions)$75.2 $79.6 $100.6
EBITDA (Non-GAAP) ($USD Millions)$138.1 $132.8 $172.8
Adjusted EBITDA ($USD Millions)$139.3 $145.1 $180.6

Segment breakdown (Q3):

SegmentQ3 2024 Revenue ($MM)Q3 2025 Revenue ($MM)Q3 2024 Pre‑Tax Income ($MM)Q3 2025 Pre‑Tax Income ($MM)Notable Margins
U.S. Pawn$390.1 $437.4 $98.3 $112.0 Pre‑tax margin 26% vs 25%
LatAm Pawn$198.4 $229.7 $38.5 $47.0 Retail margin 36% vs 35%
U.K. Pawn—$55.0 —$17.9 Pre‑tax margin 33% (stub)
AFF$249.8 $214.2 $30.2 $46.0 Net revenue +8% YoY

KPIs:

KPISept 30, 2024Sept 30, 2025
Pawn Loans ($USD Millions, total)$517.9 $788.1
Inventories ($USD Millions, total)$334.4 $456.3
Avg Outstanding Pawn Loan (Total, $)$170 $229
Inventory aged >1 year (Total, %)1.5% 2.6%
AFF Gross Transaction Volume – Leased ($MM)$143.1 $104.8
AFF Gross Transaction Volume – Finance ($MM)$142.9 $144.0
AFF Provision Rate – Leased (%)27.4% 26.7%
AFF Provision Rate – Finance (%)28.4% 28.0%
AFF Avg Monthly Net Charge‑off – Leased (%)6.8% 6.7%
AFF Avg Monthly Net Charge‑off – Finance (%)4.8% 5.2%
AFF Delinquency – Leased (%)23.6% 25.5%
AFF Delinquency – Finance (%)19.4% 22.4%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
U.S. Pawn Fees GrowthQ4 2025Not quantified for Q4; FY 2025 pawn fee growth +10% to +12% Expect double‑digit Q4 pawn fee growth; retail sales high single‑digit; margins strong Raised Q4 expectations vs general prior FY framework
LatAm Pawn RevenueFY 2025USD basis: flat to up slightly; local currency pawn fee +10% to +12% Full‑year revenue outlook increased; strong originations; Q4 pawn fee mid to high‑teen growth; double‑digit retail comps (assumes current FX) Raised
U.K. (H&T) EPS AccretionQ4 2025—$0.18–$0.20 per share New
U.K. RevenueQ4 2025—$85–$90M New
AFF Origination VolumeFY 2025~flat YoY; ex‑Conn’s/A‑Freight +20% to +25% Down 7% to 10% YoY; ex‑Conn’s/A‑Freight +15% to +20% Lower headline; still strong ex‑bankruptcies
AFF Net RevenueFY 2025Decline 6% to 8% YoY Now expected to be flat YoY Raised
AFF Net RevenueQ4 2025—Down ~15% to 20% YoY (run‑off of prior bankrupt portfolios) New
Effective Tax RateFY 202524.5% to 25.5% 25% to 26% Slightly higher

Earnings Call Themes & Trends

Note: Full earnings call transcript could not be retrieved in the document catalog; themes below reflect management’s Q3 press release commentary and prior quarter releases .

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Demand for Pawn LoansU.S.: +13% same‑store receivables; LatAm constant currency +14% in Q1; Q2 same‑store +13% U.S./LatAm Same‑store receivables: U.S. +13%, LatAm +18% (local), U.K. +25% (local) Strengthening across regions
Retail MarginsU.S. 41%–43% range; LatAm ~35%–36% U.S. 43%; LatAm 36% Stable to slightly up
Currency (MXN/USD)Headwind in H1 (avg 20.0 in Q2) Favorable recent movement; LatAm FY revenue outlook raised Improving FX supports outlook
U.K. Expansion (H&T)Pending approvals; expected close by end Q3 Closed Aug 14; strong Q3 stub; Q4 accretion and revenue guide Executed, accretive
AFF Mix and Merchant DiversificationEx‑bankruptcy doors +29% (Q1), gross originations +3% (Q2) Gross volume −13% YoY; ex‑bankruptcies +~10%; earnings +52% YoY Earnings quality up; headline volumes pressured
Regulatory/LitigationCFPB settlement included in adjustments in H1 No new items; effective tax rate guided 25%–26% Neutral

Management Commentary

  • “FirstCash’s third quarter operating results were outstanding, evidenced by accelerating revenue growth, strong margins and continued earnings growth in both the U.S. and Latin American pawn segments coupled with a strong partial quarter contribution from the recently acquired H&T pawn stores in the U.K.” — CEO Rick Wessel .
  • “Driven by the strong third quarter results, we are raising full year revenue growth expectations in the U.S. and Latin America in addition to increasing the projected H&T accretion contribution… funded by our strong balance sheet and cash flows.” — CEO Rick Wessel .
  • “Demand for our products and services in each pawn segment are at record levels… we are confident in our prospects for a strong fourth quarter and full year 2025 results.” — CEO Rick Wessel .
  • “Even after funding the $392 million cash acquisition of H&T, leverage remains within a normal range and we anticipate further natural deleveraging over the next two quarters.” — CEO Rick Wessel .

Q&A Highlights

The full Q3 2025 earnings call transcript could not be located in our document catalog or via public sources accessed; therefore, specific analyst Q&A themes and clarifications are unavailable at this time .

Estimates Context

How results compared to Wall Street consensus (S&P Global):

MetricConsensusActualSurprise
Revenue ($USD Millions)$861.7*$935.6 +$73.9 (≈ +8.6% vs consensus)*
Adjusted EPS ($)$1.93*$2.26 +$0.33 (≈ +17.1% vs consensus)*
EPS Estimates Count7*——
Revenue Estimates Count6*——

Values marked with * retrieved from S&P Global.

Implications: A clear beat on both top and bottom lines should drive upward estimate revisions for Q4 and FY, particularly in pawn segments (strengthening demand/margins) and H&T accretion, with AFF full‑year net revenue now guided to flat, not down .

Key Takeaways for Investors

  • Broad‑based operational momentum: U.S., LatAm, and U.K. pawn posted strong growth and margins; AFF earnings quality improved despite headline volume headwinds .
  • Guidance reset higher: LatAm revenue outlook raised; AFF full‑year net revenue revised to flat; U.K. accretion quantified ($0.18–$0.20 EPS) with Q4 revenue $85–$90M — increases the probability of upward estimate revisions .
  • Capital returns and balance sheet: Dividend maintained at $0.42 and new $150M buyback authorization alongside ~$90M YTD repurchases; net debt/adjusted EBITDA ~3.2x TTM (sub‑3.0x pro forma H&T) supports continued returns and M&A flexibility .
  • Demand indicators robust: Same‑store receivables growth and retail margins across regions suggest sustained pricing power and transaction volume into holiday seasonality (Q4) .
  • Watch AFF delinquency metrics and Q4 net revenue run‑off: expected −15% to −20% YoY in Q4 as prior bankruptcy portfolios lap; earnings still supported by margin/OpEx discipline .
  • FX tailwinds emerging: recent MXN strength improves translated results; sensitivity ~$0.10 EPS per 1 peso move provides potential incremental upside if rates hold .
  • Near‑term trading setup: A strong beat plus raised guidance and U.K. accretion are positive catalysts; any mixed tape reaction offers a window ahead of Q4 seasonality and acquisition pipeline execution .