Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 160

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 2
Chunk 160
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69.0 million and 17% in the prior year, respectively. The increase in the segment pre-tax operating income and margin reflected the decrease in operating expenses.

42

Retail POS Payment Solutions Segment  

Retail POS Payment Solutions Operating Results

The following table presents segment pre-tax operating income of the retail POS payment solutions segment for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 (dollars in thousands). Operating expenses 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.

Six Months EndedJune 30,Increase /20252024(Decrease)Retail POS Payment Solutions SegmentRevenue:Leased merchandise income$296,702 $400,241 (26)%Interest and fees on finance receivables149,488 114,186 31 %Total revenue446,190 514,427 (13)%Cost of revenue: Depreciation of leased merchandise (1)167,672 231,341 (28)%Provision for lease losses (2)60,271 91,004 (34)%Provision for loan losses78,121 61,534 27 %Total cost of revenue306,064 383,879 (20)%Net revenue140,126 130,548 7 %Segment expenses: Operating expenses48,482 70,091 (31)%Depreciation and amortization1,404 1,399 — %Total segment expenses49,886 71,490 (30)%Segment pre-tax operating income$90,240 $59,058 53 %

(1)Includes $0.6 million and $0.9 million of depreciation of leased merchandise from intersegment transactions for the six months ended June 30, 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 six months ended June 30, 2025 and 2024 totaled $167.1 million and $230.4 million, respectively.

(2)Includes $0.2 million and $