Company: FCFS
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000840489-25-000120
Chunk: 57

Company: FirstCash Holdings, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 57
---
 primarily due to the 27% decrease in gross transaction volumes. As a percentage of gross transaction volume, the provision for lease losses was 27% during both the third quarter of 2025 and 2024. 

Retail Finance Operations

Finance receivables, before allowance for loan losses, increased 15% as of September 30, 2025 compared to September 30, 2024. The increase was primarily due to increased gross transaction volumes in certain non-furniture industry verticals over the past twelve months. 

The allowance for loan losses increased 6% to $115.7 million as of September 30, 2025 compared to $109.2 million as of September 30, 2024, which was primarily due to the increase in finance receivables, partially offset by lower loan loss provisioning rates used during the third quarter of 2025 compared to the third quarter of 2024. As a percentage of finance receivables, the allowance was 43% at September 30, 2025 compared to 47% at September 30, 2024. 

Interest and fees on finance receivables increased 33% to $81.7 million during the third quarter of 2025 compared to $61.2 million during the third quarter of 2024. The increase was primarily due to higher average finance receivable balances outstanding during the third quarter of 2025 compared to the third quarter of 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 decreased 1% to $40.3 million during the third quarter of 2025 compared to $40.6 million during the third quarter of 2024, which was relatively consistent with the slight increase in gross transaction volume. As a percentage of gross transaction volume, the provision for loan losses was 28% during both the third quarter of 2025 and 2024.

Segment Expenses

Operating expenses decreased 32% to $23.0 million during the third quarter of 2025 compared to $33.8 million during the third quarter of 2024. The decrease was primarily due to the elimination of certain expenses associated with supporting the A-Freight and Conn’s relationships along with continued realization of operating synergies, primarily in technology and development infrastructure, coupled with other cost reduction initiatives. As