Company: FCFS
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000840489-25-000032
Chunk: 35

Company: FirstCash Holdings, Inc.
Filing Date: 2025-02-03
Form: 10-K
Item: Item 7
Chunk 35
---
 the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of 

64

evaluating period-over-period comparisons. See the Latin America pawn segment tables in “Results of Operations” above for additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

The following table provides exchange rates for the Mexican peso, Guatemalan quetzal and Colombian peso for the current and prior-year periods:  

202420232022Rate% ChangeOver Prior-Year PeriodFavorable /(Unfavorable)Rate% ChangeOver Prior-Year PeriodFavorable /(Unfavorable) RateMexican peso / U.S. dollar exchange rate:End-of-period20.3(20)%16.913 %19.4Twelve months ended18.3(3)%17.811 %20.1Guatemalan quetzal / U.S. dollar exchange rate:End-of-period7.71 %7.81 %7.9Twelve months ended7.8— %7.8(1)%7.7Colombian peso / U.S. dollar exchange rate:End-of-period4,409(15)%3,82221 %4,810Twelve months ended4,0716 %4,328(2)%4,253

Effects of Inflation

While the impacts of inflation have been widely reported and may be ongoing into the foreseeable future, the Company does not believe inflation had a material effect on the Company’s overall results of operations in 2024. Depending on the severity and persistence of these inflationary pressures, the Company could see a negative impact on its customers’ ability to pay for its goods and services, including an impact on the collectability of its accounts receivable, which could result in increased charge-offs of AFF’s finance receivables and leased merchandise as well as increases in wages and other operating costs. However, inflationary economic environments could also benefit the Company by increasing customer demand for value-priced products, lending services in its pawn stores and demand for POS payment solutions provided by AFF.

Seasonality

The Company’s business is subject to seasonal variations, and operating results for each quarter and year-to-date periods are not necessarily indicative of the results of operations for the full year. Typically, the Company experiences seasonal growth of pawn service fees in the third and fourth quarter of each year due to pawn loan balance growth. Pawn service fees generally decline in the first and second quarter of each year after the typical repayment period of pawn loans