Company: FCFS
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0000840489-25-000061
Chunk: 115

Company: FirstCash Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 2
Chunk 115
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 include salary and benefit expenses of certain operations-focused departments, merchant partner incentives, bank and other payment processing charges, credit reporting costs, information technology costs, advertising costs and other operational costs incurred by AFF. Administrative expenses and amortization expense of intangible assets related to the purchase of AFF are not included in the segment pre-tax operating income.

Three Months EndedMarch 31,Increase / 20252024(Decrease)Retail POS Payment Solutions SegmentRevenue:Leased merchandise income$156,918 $205,671 (24)%Interest and fees on finance receivables73,413 57,387 28 %Total revenue230,331 263,058 (12)%Cost of revenue:  Depreciation of leased merchandise (1)89,143 120,774 (26)%Provision for lease losses (2)27,604 43,180 (36)%Provision for loan losses36,360 30,418 20 %Total cost of revenue153,107 194,372 (21)%Net revenue77,224 68,686 12 %Segment expenses:  Operating expenses24,218 34,816 (30)%Depreciation and amortization705 721 (2)%Total segment expenses24,923 35,537 (30)%Segment pre-tax operating income$52,301 $33,149 58 %

(1)Includes $0.3 million and $0.5 million of depreciation of leased merchandise 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 depreciation of leased merchandise for the three months ended March 31, 2025 and 2024 totaled $88.8 million and $120.3 million, respectively.

(2)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,