Company: FCFS
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0000840489-25-000098
Chunk: 125

Company: FirstCash Holdings, Inc.
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 quarter of 2025, a slight increase in pawn store count and general inflationary impacts, partially offset by a 17% change in the average value of the Mexican peso resulting in lower U.S. dollar translated administrative expenses in Latin America. As a percentage of revenue, administrative expenses were 6% during the six months ended June 30, 2025 compared to 5% during the six months ended June 30, 2024. 

Depreciation and amortization decreased 3% to $25.5 million during the six months ended June 30, 2025 compared to $26.4 million in the six months ended June 30, 2024, primarily due to a scheduled $0.8 million decrease in amortization of acquired AFF intangible assets.

Interest expense increased 6% to $53.8 million during the six months ended June 30, 2025 compared to $50.6 million for the six months ended June 30, 2024, primarily due to higher average total long-term debt balances outstanding. See Note 8 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”

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Merger and acquisition expenses increased 65% to $3.2 million during the six months ended June 30, 2025 compared to $2.0 million in the six months ended June 30, 2024, due primarily to expenses associated with the H&T Acquisition.

Consolidated effective income tax rates for both the six months ended June 30, 2025 and 2024 were 25.4%. The Company is currently evaluating the impact of the OBBBA on future periods but does not expect it to have a material impact on its effective tax rate in 2025.

LIQUIDITY AND CAPITAL RESOURCES

Material Capital Requirements

The Company’s primary capital requirements include the:

•Expansion of pawn operations through growth of pawn receivables and inventories in existing stores, new store openings, strategic acquisitions of pawn stores and purchases of underlying real estate at existing locations;

•Expansion of retail POS payment solutions operations through growth of the business generated from new and existing merchant partners; and

•Return of capital to shareholders through dividends and stock repurchases.

Other material capital requirements include operating expenses (see Note 4 of Notes to Consolidated Financial Statements regarding operating lease commitments), maintenance capital expenditures related to its facilities, technology platforms, general corporate operating activities, income tax payments and debt service, among others. The Company believes that