Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 145

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 2
Chunk 145
---
 for the second quarter of 2024. Same-store retail sales increased 7% in the second quarter of 2025 compared to the second quarter of 2024. The increase in total and same-store retail sales was primarily due to continued strong demand for value priced merchandise and increased inventory levels during the second quarter of 2025 compared to the second quarter of 2024. The gross profit margin on retail merchandise sales in the U.S. was 43% during the second quarter of 2025 compared to 42% during the second quarter of 2024.

U.S. inventories increased 13% to $252.9 million at June 30, 2025 compared to $223.4 million at June 30, 2024. The increase was primarily due to increases in pawn loan receivable balances creating more forfeited inventory. Inventories aged greater than one year in the U.S. were 1.9% at June 30, 2025 compared to 1.3% at June 30, 2024.

Pawn Lending Operations

U.S. pawn loan receivables as of June 30, 2025 increased 12% in total and 13% on a same-store basis compared to June 30, 2024. The Company believes the increase in same-store pawn receivables was primarily due to higher gold prices, which increased customers’ collateral value to borrow against.

28

U.S. pawn loan fees increased 9% to $130.9 million during the second quarter of 2025 compared to $120.3 million for the second quarter of 2024. Same-store pawn loan fees also increased 9% in the second quarter of 2025 compared to the second quarter of 2024. The increase in total and same-store pawn loan fees was primarily due to the higher pawn loan balances.

Segment Expenses

U.S. operating expenses increased 7% to $133.8 million during the second quarter of 2025 compared to $125.2 million during the second quarter of 2024 while same-store operating expenses increased 6% compared with the prior-year period. The increase in operating expenses was primarily due to increased labor and variable compensation expenses.

Segment Pre-Tax Operating Income

The U.S. segment pre-tax operating income for the second quarter of 2025 was $98.3 million, which generated a pre-tax segment operating margin of 24% compared to $90.6 million and 24% in the