Company: FCFS
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0000840489-25-000061
Chunk: 119

Company: FirstCash Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 2
Chunk 119
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 in finance receivables, partially offset by lower loan loss provisioning rates used during the first quarter of 2025 compared to the first quarter of 2024. As a percentage of finance receivables, the allowance was 45% at March 31, 2025 compared to 48% at March 31, 2024. 

Interest and fees on finance receivables increased 28% to $73.4 million during the first quarter of 2025 compared to $57.4 million during the first quarter of 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 during the first quarter of 2025, some of which are provided at lower interest rates.

Provision for loan losses increased 20% to $36.4 million during the first quarter of 2025 compared to $30.4 million during the first quarter of 2024, which was primarily due to the 38% increase in gross transaction volume, partially offset by a decrease in the net provisioning rates used during the first quarter of 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 26% during the first quarter of 2025 from 30% during the first quarter of 2024.

Segment Expenses

Operating expenses decreased 30% to $24.2 million during the first quarter of 2025 compared to $34.8 million during the first quarter of 2024. The decrease was primarily due to the elimination of certain expenses associated with supporting the American Freight and Conn’s Home Plus 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 first quarter of 2025 compared to 13% during the first quarter of 2024.

32

Segment Pre-Tax Operating Income

The retail POS payment solutions segment pre-tax operating income for the first quarter of 2025 was $52.3 million compared to $33.1 million in the first quarter of 2024. The increase was primarily the result of the increase in segment net revenue and a decrease in operating expenses. 

Consolidated Results of Operations

The following table reconciles pre-tax operating income of the Company’s