Company: FCFS
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000840489-25-000120
Chunk: 56

Company: FirstCash Holdings, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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.K. Pawn Segment

The segment contribution reflects the results of operations of H&T for the period August 14, 2025 to September 30, 2025 as a result of the completion of the H&T Acquisition on August 14, 2025. See Note 3 of Notes to Consolidated Financial Statements for additional information about the H&T Acquisition.

The U.K. pawn segment contributed $55.0 million in revenue and $17.9 million in pre-tax segment operating income for the third quarter of 2025. The resulting pre-tax segment operating margin was 33%. 

Retail POS Payment Solutions Segment

LTO Operations

Leased merchandise, before allowance for lease losses, decreased 29% to $164.2 million as of September 30, 2025 compared to $231.8 million as of September 30, 2024. The decrease was primarily due to reduced originations resulting from the bankruptcy filings in late 2024 for two of AFF’s larger retail furniture merchant partners, American Freight (“A-Freight”) and Conn’s Home Plus (“Conn’s”). 

The allowance for lease losses decreased 31% to $64.3 million as of September 30, 2025 compared to $93.8 million as of September 30, 2024, which was primarily due to the decrease in leased merchandise. As a percentage of lease merchandise, the allowance was 39% at September 30, 2025 and 40% at September 30, 2024.

Leased merchandise income decreased 30% to $132.5 million during the third quarter of 2025 compared to $188.6 million during the third quarter of 2024, which was primarily due to lower average leased merchandise balances outstanding during the third quarter of 2025 compared to the third quarter of 2024.  

31

Depreciation of leased merchandise decreased 28% to $76.3 million during the third quarter of 2025 compared to $105.3 million during the third quarter of 2024, primarily due to the decrease in leased merchandise balances outstanding. As a percentage of leased merchandise income, depreciation of leased merchandise increased slightly to 58% during the third quarter of 2025 from 56% during the third quarter of 2024.

Provision for lease losses decreased 29% to $28.0 million during the third quarter of 2025 compared to $39.3 million during the third quarter of 2024, which was