Company: FCFS
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000840489-25-000032
Chunk: 19

Company: FirstCash Holdings, Inc.
Filing Date: 2025-02-03
Form: 10-K
Item: Item 7
Chunk 19
---
52

Retail POS Payment Solutions Segment

Retail POS Payment Solutions Operating Results

The following table presents segment pre-tax operating income of the retail POS payment solutions segment for the year ended December 31, 2024 as compared to the year ended December 31, 2023 (dollars in thousands). Operating expenses include salary and benefit expenses of certain operations-focused departments, merchant partner incentives, bank and other payment processing charges, credit reporting costs, information technology costs, advertising costs and other operational costs incurred by AFF. Administrative expenses and amortization expense of intangible assets related to the purchase of AFF are not included in the segment pre-tax operating income.

Year EndedDecember 31,Increase /20242023(Decrease)Retail POS Payment Solutions SegmentRevenue:Leased merchandise income$766,241 $752,682 2 %Interest and fees on finance receivables245,891 233,818 5 %Total revenue1,012,132 986,500 3 %Cost of revenue: Depreciation of leased merchandise (1)434,915 413,546 5 %Provision for lease losses (2)163,937 177,418 (8)%Provision for loan losses143,827 123,030 17 %Total cost of revenue742,679 713,994 4 %Net revenue269,453 272,506 (1)%Segment expenses: Operating expenses138,041 137,460 — %Depreciation and amortization2,783 3,030 (8)%Total segment expenses140,824 140,490 — %Segment pre-tax operating income$128,629 $132,016 (3)%

(1)Includes $1.6 million and $2.1 million of depreciation of leased merchandise from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated depreciation of leased merchandise during 2024 and 2023 totaled $433.3 million and $411.5 million, respectively.

(2)Includes $0.5 million and $1.6 million of provision for lease losses from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Ex