Company: FCFS
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0000840489-25-000061
Chunk: 38

Company: FirstCash Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 additional demand for pawn loans and higher gold prices, which increased customers’ collateral value to borrow against.

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U.S. pawn loan fees increased 12% to $137.9 million during the first quarter of 2025 compared to $123.0 million for the first quarter of 2024. Same-store pawn loan fees increased 10% in the first quarter of 2025 compared to the first quarter of 2024. The increase in total and same-store pawn loan fees was primarily due to store growth and increased same-store pawn receivables.

Segment Expenses

U.S. operating expenses increased 8% to $129.0 million during the first quarter of 2025 compared to $118.9 million during the first quarter of 2024 while same-store operating expenses increased 6% compared with the prior-year period. The increase in operating expenses was primarily due to an increase in the average store count and increased labor and variable compensation expenses.

Segment Pre-Tax Operating Income

The U.S. segment pre-tax operating income for the first quarter of 2025 was $113.1 million, which generated a pre-tax segment operating margin of 27% compared to $96.6 million and 26% in the prior year, respectively. The increase in the segment pre-tax operating income and margin reflected increased net revenue from both acquired and existing stores, partially offset by an increase in segment expenses. 

25

Latin America Pawn Segment

Latin American segment pre-tax operating income for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was impacted by a 20% unfavorable change in the average value of the Mexican peso compared to the U.S. dollar. The translated value of Latin American earning assets as of March 31, 2025 compared to March 31, 2024 was also impacted by a 22% unfavorable change in the end-of-period Mexican peso compared to the U.S. dollar. Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section in “Non-GAAP Financial Information” below for additional discussion of constant currency operating results.

The following table presents segment pre-tax operating income and other operating metrics of the Latin America pawn segment for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 (dollars in thousands).