Executive Summary

Record Q4 and FY results: Q4 revenue $883.8M (+4% YoY) and GAAP diluted EPS $1.86 (+22% YoY); adjusted EPS $2.12 (+4% YoY). FY24 revenue $3.39B (+8%), GAAP EPS $5.73 (+19%). Strength was led by U.S. pawn; AFF remained profitable amid furniture headwinds .
U.S. pawn delivered double‑digit growth: Q4 segment pre‑tax income $111.8M (+14% YoY); retail margins 43% (vs 42% LY); pawn loans ended year +15% to $396.7M .
LatAm pawn grew on a constant currency basis but was pressured in USD by a weaker MXN; Q4 pre‑tax margin held at 20% despite FX headwinds .
2025 outlook: pawn to contribute ~85% of segment pre‑tax income; U.S. pawn fee growth 8–11%; AFF net revenues down 10–15% with flat/slightly lower pre‑tax income; tax rate 24–25%; $0.38 dividend declared for Q1’25 .
Street estimates: S&P Global/Capital IQ consensus was unavailable in this session (API limit). We therefore do not present “vs. estimates” comparisons for Q4 2024.

What Went Well and What Went Wrong

What Went Well
- U.S. pawn outperformance: Q4 segment pre‑tax income +14% YoY to $111.8M; retail margins improved to 43%; same‑store pawn receivables +12% (sixth straight quarter of double‑digit growth) .
- Strong cash generation and balance sheet: FY24 operating cash flow $540M (+30%); adjusted FCF $262M (+24%); net debt/adj. EBITDA 2.8x with largely fixed‑rate notes maturing 2028–2032 .
- Management tone: “FirstCash posted record fourth quarter and full year revenues and earnings primarily fueled by exceptionally strong pawn operating results… We began 2025 in a strong position to again deliver meaningful earnings growth” – CEO Rick Wessel .
What Went Wrong
- FX headwinds in LatAm: Peso depreciation drove USD declines; Q4 LatAm pre‑tax income −4% in USD but +7% in constant currency; FY margins stable at 19–20% .
- AFF furniture vertical weakness and merchant bankruptcies (Conn’s HomePlus, American Freight) weighed on Q4; segment pre‑tax income −10% YoY to $39.4M; delinquencies on leased merchandise rose to 24.4% vs 21.7% LY .
- Cost inflation: Store additions and labor drove higher OpEx (U.S. pawn OpEx +10% in Q4; LatAm OpEx +7% in CC for FY) though operating leverage remained favorable in the U.S. .

Financial Results

Consolidated results (in USD thousands; EPS in USD)

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue	852,134	837,321	883,811
Net Income	69,589	64,827	83,547
Diluted EPS (GAAP)	$1.53	$1.44	$1.86
Adjusted EPS (Non‑GAAP)	$2.04	$1.67	$2.12
EBITDA (Non‑GAAP)	145,493	138,134	162,636

Segment performance – key P&L and margins (USD thousands unless noted)

Segment	Metric	Q4 2023	Q3 2024	Q4 2024
U.S. Pawn	Revenue	381,243	390,115	424,015
	Net Revenue	224,896	233,756	250,619
	Pre‑tax Op. Income	98,470	98,287	111,809
	Pre‑tax Margin	26%	25%	26%
	Retail Sales Margin	42%	43%	43%
LatAm Pawn	Revenue	222,858	198,425	212,841
	Net Revenue	114,120	106,209	108,820
	Pre‑tax Op. Income	44,678	38,471	42,732
	Pre‑tax Margin	20%	19%	20%
	Retail Sales Margin	35%	35%	34%
AFF (Retail POS)	Revenue	249,628	249,758	247,947
	Net Revenue	77,491	64,625	74,280
	Pre‑tax Op. Income	43,539	30,186	39,385

Operating KPIs

KPI	Q4 2023	Q4 2024
U.S. Pawn loans outstanding (EOP)	$344,152	$396,667
U.S. Inventories (EOP)	$221,843	$245,492
U.S. Inventory turnover (TTM)	2.8x	2.8x
LatAm Pawn loans outstanding (EOP, USD)	$127,694	$121,200
LatAm Inventories (EOP, USD)	$90,246	$89,088
LatAm Inventory turnover (TTM)	4.4x	4.2x
AFF total gross transaction volume (Q4)	$272,557	$284,488
AFF delinquency – leased merch (EOP)	21.7%	24.4%
AFF average monthly NCO (full‑year)	5.0% (FY23)	5.3% (FY24)

Note on estimates: S&P Global consensus was unavailable in this session, so “vs estimates” comparisons are not shown.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Contribution mix (pawn vs AFF)	FY2025	— (no prior FY25 guide)	Pawn ~85% of total segment pre‑tax income; AFF ~15%	New
U.S. pawn fee growth	FY2025	—	+8% to +11%	New
U.S. retail sales growth/margins	FY2025	—	Similar sales growth; ~42% retail margin targeted	New
LatAm pawn fee growth (LC)	FY2025	—	+8% to +11% (local currency)	New
LatAm pawn fee growth (USD)	FY2025	—	−2% to −5% (USD at 20–21 MXN/USD)	New
LatAm retail sales/margins	FY2025	—	Track pawn fees; margins consistent	New
LatAm OpEx	FY2025	—	+6% to +9% (LC); −3% to −6% (USD)	New
AFF origination volume	FY2025	—	Low single‑digit growth; ex‑Conn’s/American Freight: +20% to +25%	New
AFF net revenues	FY2025	—	−10% to −15% YoY	New
AFF pre‑tax income	FY2025	—	Flat to slightly down YoY	New
Effective tax rate	FY2025	—	24%–25%	New
MXN sensitivity	FY2025	—	~$0.10 EPS per 1 peso change	New
Dividend	Q1 2025	Prior: $0.38 (Q4’24)	$0.38 declared (payable Feb 28, 2025)	Maintained

Earnings Call Themes & Trends

Note: We could not locate a Q4 2024 earnings call transcript in our document set; analysis reflects company press releases for Q2–Q4 2024.

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Pawn demand & consumer backdrop	Strong U.S. pawn; same‑store pawn fees +12% in Q2; demand aided by credit tightening; retail margins 42%	Record demand; U.S. same‑store pawn receivables +10%; momentum into October	“Accelerating pawn demand” drove record results; same‑store pawn receivables +12% U.S. and LatAm (LC)	Improving
Store growth	47 pawn locations added in Q2; 67 YTD; pipeline robust	16 added in Q3; 83 YTD; 3,025 total	16 added in Q4; 99 in FY24; total stores 3,026	Steady expansion
LatAm FX	Q2 MXN favorable vs PY; margins 17–20%	Q3 MXN −11% vs PY; LatAm USD results pressured	Q4 MXN −14% vs PY; USD results down while CC growth positive; guidance embeds 20–21 MXN/USD	FX headwind
AFF mix & furniture vertical	Q2: flat YoY revenues; diversification into auto, jewelry, elective medical; provisioning ~31%	Q3: origination +14% YoY; pre‑tax income −23% on higher upfront provisioning	Q4: pre‑tax −10% YoY; furniture bankruptcies a H1’25 headwind; net revenues −10–15% guided; ex‑furniture originations +36% in Q4	Mixed: non‑furniture up; furniture down
Capital allocation	Q2 dividend raised to $0.38; $85M buybacks in Q2	Q3 dividend $0.38; $85M YTD buybacks	Q1’25 dividend $0.38; $85M buybacks in FY24; net debt/adj. EBITDA 2.8x	Shareholder‑friendly

Management Commentary

“FirstCash posted record fourth quarter and full year revenues and earnings primarily fueled by exceptionally strong pawn operating results.” – CEO Rick Wessel .
“Strong sequential acceleration in same‑store pawn receivable growth rates during the fourth quarter resulted in end of year increases in pawn receivables of 15% in the U.S. and 13% (constant currency) in Latin America… We began 2025 in a strong position to again deliver meaningful earnings growth.” – CEO Rick Wessel .
“AFF posted solid results in 2024 by contributing almost $130 million in segment earnings… Although this was a difficult year in the retail furniture industry… AFF posted overall origination growth in 2024, driven by successful expansion in other vertical categories.” – CEO Rick Wessel .

Q&A Highlights

We were unable to access a Q4 2024 earnings call transcript in our document set or via company filings; FirstCash’s Q4 communication comprised the press release/8‑K with detailed quantitative schedules and a 2025 outlook. Notable clarifications from management’s outlook include the explicit MXN EPS sensitivity (~$0.10 per 1 peso), AFF revenue headwinds tied to specific merchant bankruptcies, and continued double‑digit growth expectations for U.S. pawn with targeted ~42% retail margins .

Estimates Context

Wall Street consensus (S&P Global/Capital IQ) for Q4 2024 EPS and revenue was unavailable in this session due to data access limits; as a result, we cannot quantify beats/misses vs. consensus.
Implications for models: guidance suggests upward bias to U.S. pawn segment earnings on 8–11% pawn fee growth and stable ~42% margins, offset by lower AFF net revenue (−10% to −15%) and MXN/USD translation pressure in LatAm (USD pawn fees −2% to −5%) .

Key Takeaways for Investors

Core thesis intact: pawn remains the primary earnings engine (target ~85% of 2025 segment pre‑tax), supported by robust same‑store receivables and retail margins; U.S. pawn comps and loan growth are strong tailwinds .
Watch FX and mix: LatAm constant‑currency growth is healthy, but USD translation and a higher Mexican minimum wage will weigh; peso sensitivity is explicit at ~$0.10 EPS per 1 peso move .
AFF transition: furniture‑related headwinds and merchant bankruptcies reduce H1 originations and 2025 net revenues, but non‑furniture verticals are expanding (ex‑furniture originations +36% in Q4; 20–25% growth ex‑furniture guided for 2025) .
Cash flow and balance sheet provide optionality: adjusted FCF $262M and net leverage 2.8x support continued store expansion, dividends ($0.38/qtr) and opportunistic buybacks .
Near‑term trading setup: momentum in U.S. pawn and clear 2025 guide are positives; headline risk from FX and AFF revenue declines could temper sentiment, but segment mix shift toward pawn should support EPS durability .

Appendix: Additional data sources

Q4/FY24 press release and 8‑K with full schedules –.
Prior quarter press releases for trend analysis (Q3 2024 and Q2 2024) – –.

FirstCash Holdings, Inc. (FCFS)·Q4 2024 Earnings Summary