Company: FCFS
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0000840489-25-000061
Chunk: 88

Company: FirstCash Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 (2)29 %28 %Average monthly net charge-off rate (3)6.8 %5.5 %Delinquency rate (4)22.6 %20.5 %Allowance for loan losses:Balance at beginning of period$117,005 $96,454 21 %Provision for loan losses36,360 30,418 20 %Charge-offs(38,419)(33,279)15 %Recoveries3,396 2,427 40 %Balance at end of period$118,342 $96,020 23 %Finance receivables portfolio metrics:Provision rate (2)26 %30 %Average monthly net charge-off rate (3)4.4 %5.0 %Delinquency rate (4)19.3 %19.2 %

(1)Includes less than $0.1 million and $0.2 million of provision for lease losses from intersegment transactions for the three months ended March 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated provision for lease losses for the three months ended March 31, 2025 and 2024 totaled $27.6 million and $43.0 million, respectively.

(2)Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated. 

(3)Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses. 

(4)Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

31

LTO Operations

Leased merchandise, before allowance for lease losses, decreased 32% as of March 31, 2025 compared to March 31, 2024. The decrease was primarily due to reduced first quarter originations resulting from the bankruptcy filings in late 2024 for two of AFF’s larger retail furniture merchant partners (American Freight and Conn’s Home Plus). 

The allowance for lease losses decreased 28% to $69.1 million as of March 31, 2025 compared to $