Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 114

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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 decrease in the net provisioning rates used during the second 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 28% during the second quarter of 2025 from 30% during the second quarter of 2024.

Segment Expenses

Operating expenses decreased 31% to $24.3 million during the second quarter of 2025 compared to $35.3 million during the second quarter of 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 second quarter of 2025 compared to 14% during the second quarter of 2024.

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Segment Pre-Tax Operating Income

The retail POS payment solutions segment pre-tax operating income for the second quarter of 2025 was $37.9 million compared to $25.9 million in the second 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 U.S. pawn segment, Latin America pawn segment and retail POS payment solutions segment, discussed above, to consolidated net income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 (dollars in thousands):

Three Months EndedJune 30, 20252024Consolidated Results of OperationsSegment pre-tax operating income:U.S. pawn$98,286 $90,595 Latin America pawn40,980 37,113 Retail POS payment solutions37,939 25,909 Intersegment elimination (1)34 84 Consolidated segment pre-tax operating income177,239 153,701 Corporate expenses and other income:  Administrative expenses59,263 46,602 Depreciation and amortization12,780 13,220 Interest expense26,337 25,187 Interest income(527)(261)(Gain) loss on foreign exchange(1,271)1,437 Merger and acquisition expenses2,777 1,364 Other income, net(3,199)(26)Total corporate expenses