Company: FCFS
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000840489-25-000120
Chunk: 165

Company: FirstCash Holdings, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 2
Chunk 165
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 ended September 30, 2024, which was primarily due to the 24% increase in gross transaction volume, partially offset by a decrease in the net provisioning rates used during the nine months ended September 30, 2025 based on lower than expected charge-off rates on older vintages. As a percentage of gross transaction volume, the provision for loan losses decreased to 27% during the nine months ended September 30, 2025 compared to 29% during the nine months ended September 30, 2024.

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Segment Expenses

Operating expenses decreased 31% to $71.4 million during the nine months ended September 30, 2025 compared to $103.9 million during the nine months ended September 30, 2024. The decrease was primarily due to the elimination of certain expenses associated with supporting the A-Freight and Conn’s relationships along with continued realization of operating synergies, primarily in technology and software development infrastructure, coupled with other cost reduction initiatives. As a percentage of segment revenues, operating expenses decreased to 11% during the nine months ended September 30, 2025 from 14% during the nine months ended September 30, 2024.

Segment Pre-Tax Operating Income

The retail POS payment solutions segment pre-tax operating income for the nine months ended September 30, 2025 was $136.2 million compared to $89.2 million in the nine months ended September 30, 2024. The increase was primarily the result of the increase in segment net revenue and a decrease in operating expenses.

Corporate Expenses and Taxes

Administrative expenses increased 25% to $166.6 million during the nine months ended September 30, 2025 compared to $132.9 million during the nine months ended September 30, 2024, primarily due to the $11.0 million CFPB litigation settlement accrued for in the second quarter of 2025, the incremental administrative expenses of H&T since the acquisition date, increased variable compensation expense and general inflationary impacts, partially offset by a 10% change in the average value of the Mexican peso resulting in lower U.S. dollar translated administrative expenses in Latin America. As a percentage of revenue, administrative expenses were 6% during the nine months ended September 30, 2025 compared to 5% during the nine months ended September 30, 2024. 

Depreciation and amortization increased 2% to $40.2 million during the nine