Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 65

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 the impact of the OBBBA on future periods but does not expect it to have a material impact on its effective tax rate in 2025.

LIQUIDITY AND CAPITAL RESOURCES

Material Capital Requirements

The Company’s primary capital requirements include the:

•Expansion of pawn operations through growth of pawn receivables and inventories in existing stores, new store openings, strategic acquisitions of pawn stores and purchases of underlying real estate at existing locations;

•Expansion of retail POS payment solutions operations through growth of the business generated from new and existing merchant partners; and

•Return of capital to shareholders through dividends and stock repurchases.

Other material capital requirements include operating expenses (see Note 4 of Notes to Consolidated Financial Statements regarding operating lease commitments), maintenance capital expenditures related to its facilities, technology platforms, general corporate operating activities, income tax payments and debt service, among others. The Company believes that net cash provided by operating activities and available and unused funds under its revolving unsecured credit facilities will be adequate to meet its liquidity and capital needs for these items over the next 12 months and also in the longer-term beyond the next 12 months.

Expand Pawn Operations

The Company intends to continue expansion of its pawn operations through growth of pawn receivables and inventories in existing stores along with new store openings and acquisitions. 

During the six months ended June 30, 2025, the Company acquired four pawn stores in the U.S. for a cumulative purchase price of $33.0 million, net of cash acquired and subject to future post-closing adjustments. The Company evaluates potential acquisitions based upon growth potential, purchase price, available liquidity, strategic fit and quality of management personnel, among other factors. During the six months ended June 30, 2025, the Company also opened 19 new stores in Latin America and two new stores in the U.S.  

In connection with the pending H&T Acquisition, the Company expects to acquire the entire issued and to be issued share capital of H&T during the third quarter by paying H&T shareholders 650 pence per share in cash. The total equity value for the H&T Acquisition, including cash consideration for the shares, is approximately £291.4 million ($396.3 million USD using GBP/USD exchange rate of 1.36) and H&T had outstanding indebtedness of approximately £72.6 million as of June 30, 2025 ($98.7 million USD using GBP/USD exchange rate of 1.36), which the Company expects will remain outstanding following