Company: FCFS
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000840489-25-000120
Chunk: 65

Company: FirstCash Holdings, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 $243.9 million during the nine months ended September 30, 2025 compared to $336.6 million during the nine months ended September 30, 2024, primarily due to the decrease in leased merchandise balances outstanding. As a percentage of leased merchandise income, depreciation of leased merchandise was 57% during both the nine months ended September 30, 2025 and 2024.

Provision for lease losses decreased 32% to $88.3 million during the nine months ended September 30, 2025 compared to $130.3 million for the nine months ended September 30, 2024, which was primarily due to the 30% decrease in gross transaction volumes. As a percentage of gross transaction volume, the provision for lease losses was 29% during both the nine months ended September 30, 2025 and 2024.

Retail Finance Operations

Interest and fees on finance receivables increased 32% to $231.2 million during the nine months ended September 30, 2025 compared to $175.4 million for the nine months ended September 30, 2024. The increase was primarily due to higher average finance receivable balances outstanding during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, 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 over the past twelve months, some of which are provided at lower interest rates.

Provision for loan losses increased 16% to $118.5 million during the nine months ended September 30, 2025 compared to $102.1 million for the nine months 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.

38

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