Company: FCFS
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0000840489-25-000061
Chunk: 45

Company: FirstCash Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 Conn’s Home Plus). 

The allowance for lease losses decreased 28% to $69.1 million as of March 31, 2025 compared to $95.8 million as of March 31, 2024, which was primarily due to the decrease in leased merchandise, partially offset by slightly higher lease loss provisioning rates used during the first quarter of 2025 as compared to first quarter of 2024. As a percentage of lease merchandise, the allowance was 40% at March 31, 2025 and 38% at March 31, 2024.

Leased merchandise income decreased 24% to $156.9 million during the first quarter of 2025 compared to $205.7 million during the first quarter of 2024, which was primarily due to lower average leased merchandise balances outstanding during the first quarter of 2025 compared to the first quarter of 2024.  

Depreciation of leased merchandise decreased 26% to $89.1 million during the first quarter of 2025 compared to $120.8 million during the first quarter of 2024, primarily due to the decrease in leased merchandise balances outstanding. As a percentage of leased merchandise income, depreciation of leased merchandise decreased from 59% during the first quarter of 2024 to 57% during the first quarter of 2025, primarily as a result of a decrease in customers taking advantage of early buyout or other early payment options.

Provision for lease losses decreased 36% to $27.6 million during the first quarter of 2025 compared to $43.2 million during the first quarter of 2024, which was primarily due to the 39% decrease in gross transaction volumes. As a percentage of gross transaction volume, the provision for lease losses increased slightly to 29% during the first quarter of 2025 compared to 28% during the first quarter of 2024. 

Retail Finance Operations

Finance receivables, before allowance for loan losses, increased 31% as of March 31, 2025 compared to March 31, 2024. The increase was primarily due to increased gross transaction volumes in certain non-furniture industry verticals. 

The allowance for loan losses increased 23% to $118.3 million as of March 31, 2025 compared to $96.0 million as of March 31, 2024, which was primarily due to the increase in finance receivables, partially offset by lower loan loss