Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 113

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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6 million during the second 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 slightly to 56% during the second quarter of 2025 from 57% during the second quarter of 2024.

Provision for lease losses decreased 32% to $32.7 million during the second quarter of 2025 compared to $47.8 million during the second quarter of 2024, which was primarily due to the 25% decrease in gross transaction volumes and a decrease in the net provisioning rates used during the second quarter of 2025. As a percentage of gross transaction volume, the provision for lease losses decreased to 30% during the second quarter of 2025 compared to 33% during the second quarter of 2024. 

Retail Finance Operations

Finance receivables, before allowance for loan losses, increased 35% as of June 30, 2025 compared to June 30, 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 $122.9 million as of June 30, 2025 compared to $100.0 million as of June 30, 2024, which was primarily due to the increase in finance receivables, partially offset by lower loan loss provisioning rates used during the second quarter of 2025 compared to the second quarter of 2024. As a percentage of finance receivables, the allowance was 44% at June 30, 2025 compared to 49% at June 30, 2024. 

Interest and fees on finance receivables increased 34% to $76.1 million during the second quarter of 2025 compared to $56.8 million during the second quarter of 2024. 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 the second quarter of 2025, some of which are provided at lower interest rates.

Provision for loan losses increased 34% to $41.8 million during the second quarter of 2025 compared to $31.1 million during the second quarter of 2024, which was primarily due to the 42% increase in gross transaction volume, partially offset by a