Company: FCFS
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000840489-25-000032
Chunk: 23

Company: FirstCash Holdings, Inc.
Filing Date: 2025-02-03
Form: 10-K
Item: Item 7
Chunk 23
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44% at December 31, 2024 compared to 46% at December 31, 2023. 

Interest and fees on finance receivables increased 5% to $245.9 million during 2024 compared to $233.8 million during 2023. The increase was primarily due to the higher year-over-year finance receivable balances, partially offset by a slight decline in portfolio yield primarily as a result of AFF expanding its offerings and merchant relationships in certain services sector verticals during 2024, some of which are provided at lower interest rates.

Provision for loan losses increased 17% to $143.8 million during 2024 compared to $123.0 million during 2023, which was primarily due to the 26% increase in gross transaction volumes, partially offset by a slight decrease in the net provisioning rates used during 2024 based on lower than expected loss rates on older vintages. As a percentage of gross transaction volume, the provision for loan losses decreased to 28% during 2024 compared to 30% during 2023. 

Segment Expenses

Operating expenses were flat at $138.0 million during 2024 compared to $137.5 million during 2023. As a percentage of segment revenues, operating expenses were 14% during both 2024 and 2023. 

Segment Pre-Tax Operating Income

The retail POS payment solutions segment pre-tax operating income during 2024 was $128.6 million compared to $132.0 million during 2023. The decrease was primarily the result of the slight decrease in net revenue.

56

Consolidated Results of Operations

The following table reconciles pre-tax operating income of the Company’s U.S. pawn segment, Latin America pawn segment and retail POS payment solutions segment, discussed above, to consolidated net income for the year ended December 31, 2024 as compared to the year ended December 31, 2023 (dollars in thousands): 

Year Ended December 31,Increase / 20242023(Decrease)Consolidated Results of OperationsSegment pre-tax operating income:U.S. pawn$397,293 $336,306 18 %Latin America pawn150,220 156,222 (4)%Retail POS payment solutions 128,629 132,016 (3)%Intersegment eliminations (1)280 581 (52)%Consolidated segment pre-tax operating