Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 152

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 2
Chunk 152
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 Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated provision for lease losses for the three months ended June 30, 2025 and 2024 totaled $32.5 million and $47.7 million, respectively.

(2)Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated. 

(3)Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses. 

(4)Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

35

LTO Operations

Leased merchandise, before allowance for lease losses, decreased 31% to $170.8 million as of June 30, 2025 compared to $246.5 million as of June 30, 2024. The decrease was primarily due to reduced originations resulting from the bankruptcy filings in late 2024 for two of AFF’s larger retail furniture merchant partners, American Freight Warehouse (“A-Freight”) and Conn’s Home Plus (“Conn’s”). 

The allowance for lease losses decreased 32% to $70.0 million as of June 30, 2025 compared to $103.3 million as of June 30, 2024, which was primarily due to the decrease in leased merchandise and lower lease loss provisioning rates used during the second quarter of 2025 as compared to second quarter of 2024. As a percentage of lease merchandise, the allowance was 41% at June 30, 2025 and 42% at June 30, 2024.

Leased merchandise income decreased 28% to $139.8 million during the second quarter of 2025 compared to $194.6 million during the second quarter of 2024, which was primarily due to lower average leased merchandise balances outstanding during the second quarter of 2025 compared to the second quarter of 2024.  

Depreciation of leased merchandise decreased 29% to $78.5 million during the second quarter of 2025 compared to $110.6 million during the second quarter of 2024, primarily due to the decrease in leased merchandise balances outstanding. As a percentage of leased merchandise income, depreciation of leased