Company: FCFS
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000840489-25-000032
Chunk: 59

Company: FirstCash Holdings, Inc.
Filing Date: 2025-02-03
Form: 10-K
Item: Item 1
Chunk 59
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 similar items of merchandise in particular stores, influence the determination of the estimated retail value of such items. 

The Company typically experiences seasonal growth in its pawn loan balances in the third and fourth quarters, preceded by lower balances in the first two quarters due to the typical repayment of pawn loans associated with statutory bonuses received by customers in the fourth quarter in Mexico and with tax refund proceeds typically received by customers in the first quarter in the U.S.

Pawn Business Strategy 

The Company’s business strategy is to continue growing pawn revenues and income by opening new (“de novo”) retail pawn locations, acquiring existing pawn stores in strategic markets and increasing revenue and operating profits in existing stores. Over the last five years, 576 pawn stores have been opened or acquired, with the net store count growing at a compound annual store growth rate of 2% over this period. The Company intends to open or acquire additional stores in locations where management believes appropriate consumer demand and other favorable conditions exist. The following table details stores opened and acquired over the five-year period ended December 31, 2024:

Year Ended December 31,20242023202220212020U.S. pawn segment:New locations opened1 5 — 1 — Locations acquired28 91 30 46 22 Total additions29 96 30 47 22 Latin America pawn segment:New locations opened60 61 45 60 75 Locations acquired10 — 1 — 40 Total additions70 61 46 60 115 Total:New locations opened61 66 45 61 75 Locations acquired38 91 31 46 62 Total additions99 157 76 107 137 

For additional information on store count activity, see “Pawn Store Locations” below.

New Store Openings

The Company typically opens new stores in under-served markets and neighborhoods. After a suitable location has been identified and a lease and the appropriate licenses are obtained, a new store can typically open for business within six to twelve weeks. The investment required to open a new location includes store operating cash, inventory, funds for pawn loans, leasehold improvements, store fixtures, security systems, computer equipment and other start-up costs.   

3

Acquisitions

Due to the fragmented nature of the pawn industry, the Company believes attractive acquisition opportunities will continue to arise in both the U.S. and Latin America. Specific pawn store acquisition criteria include an evaluation of the volume of merchandise sales and pawn transactions, outstanding customer