Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 115

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 and other income96,160 87,523 Income before income taxes81,079 66,178 Provision for income taxes21,274 17,105   Net income$59,805 $49,073 

(1)Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores. For further detail, see Note 10 of Notes to Consolidated Financial Statements.

Corporate Expenses and Taxes

Administrative expenses increased 27% to $59.3 million during the second quarter of 2025 compared to $46.6 million in the second quarter of 2024, primarily due to the $11.0 million CFPB litigation settlement accrued for in the second quarter of 2025, a slight increase in the pawn store count and general inflationary impacts, partially offset by a 13% change in the average value of the Mexican peso resulting in lower U.S. dollar translated administrative expenses in Latin America. As a percentage of revenue, administrative expenses were 7% in the second quarter of 2025 compared to 6% during the second quarter of 2024.

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Depreciation and amortization decreased 3% to $12.8 million during the second quarter of 2025 compared to $13.2 million in the second quarter of 2024, primarily due to a scheduled $0.4 million decrease in amortization of acquired AFF intangible assets.

Interest expense increased 5% to $26.3 million during the second quarter of 2025 compared to $25.2 million in the second quarter of 2024, primarily due to higher average total long-term debt balances outstanding. See Note 8 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”

Merger and acquisition expenses increased 104% to $2.8 million during the second quarter of 2025 compared to $1.4 million in the second quarter of 2024, due primarily to expenses associated with the H&T Acquisition.

Consolidated effective income tax rates for the second quarter of 2025 and 2024 were 26.2% and 25.8%, respectively. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”), which includes a broad range of tax reform provisions, was signed into law in the United States. The Company is currently evaluating the impact on future periods but does not expect the OBBBA