Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 163

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 2
Chunk 163
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32% decrease in gross transaction volumes and slightly lower lease loss provisioning rates used during the six months ended June 30, 2025 compared to the six months ended June 30, 2024. As a percentage of gross transaction volume, the provision for lease losses decreased slightly to 29% during the six months ended June 30, 2025 compared to 30% during the six months ended June 30, 2024.

Retail Finance Operations

Interest and fees on finance receivables increased 31% to $149.5 million during the six months ended June 30, 2025 compared to $114.2 million for the six months ended June 30, 2024. The increase was primarily due to the higher year-over-year finance receivable balances, 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 in the six months ended June 30, 2025, some of which are provided at lower interest rates.

Provision for loan losses increased 27% to $78.1 million during the six months ended June 30, 2025 compared to $61.5 million for the six months ended June 30, 2024, which was primarily due to the 40% increase in gross transaction volume, partially offset by a decrease in the net provisioning rates used during the six months ended June 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 six months ended June 30, 2025 from 30% during the six months ended June 30, 2024.

Segment Expenses

Operating expenses decreased 31% to $48.5 million during the six months ended June 30, 2025 compared to $70.1 million during the six months ended June 30, 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 a percentage of segment revenues, operating expenses decreased to 11% during the six months ended June 30, 2025 from 14% during the six months ended June 30, 2024.

Segment Pre-Tax Operating Income

The retail POS payment solutions segment pre-tax operating income for the six