FirstCash Holdings, Inc.

Previous wording

The Company is also a leading provider of technology-driven, retail POS payment solutions focused on serving credit-constrained consumers. The Company’s retail POS payment solutions business line consists solely of the operations of AFF, which focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners in all 50 states in the U.S., the District of Columbia and Puerto Rico. AFF’s retail partners provide consumer goods and services to their customers and use AFF’s LTO and retail finance solutions to facilitate payments on such transactions.

Current wording

The Company is also a leading provider of technology-driven, retail POS payment solutions focused on serving credit-constrained consumers. The Company’s retail POS payment solutions business line consists solely of the operations of AFF, which focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners in the U.S. and Puerto Rico. AFF’s retail partners provide consumer goods and services to their customers and use AFF’s LTO and retail finance solutions to facilitate payments on such transactions.

Previous wording

The Company’s two business lines are organized into three reportable segments. The U.S. pawn segment consists of pawn operations in the U.S. while the Latin America pawn segment consists of pawn operations in Mexico, Guatemala, Colombia and El Salvador. The retail POS payment solutions segment consists of the operations of AFF in the U.S. and Puerto Rico.

Current wording

The Company’s two business lines are organized into three reportable segments. The U.S. pawn segment consists of pawn operations in the U.S. while the Latin America pawn segment consists of pawn operations in Mexico, Guatemala, El Salvador and Colombia. The retail POS payment solutions segment consists of the operations of AFF in the U.S. and Puerto Rico.

Previous wording

As of September 30, 2024, the Company operated 3,025 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,723 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.

Current wording

As of March 31, 2025, the Company operated 3,023 pawn store locations composed of 1,197 stores in 29 U.S. states and the District of Columbia, 1,724 stores in 32 states in Mexico, 72 stores in Guatemala, 18 stores in El Salvador and 12 stores in Colombia.

Previous wording

The following tables detail pawn store count activity for the three and nine months ended September 30, 2024:

Current wording

The following table details pawn store count activity for the three months ended March 31, 2025:

Previous wording

(2)Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.

Current wording

(1)Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.

Previous wording

As of September 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,800 locations at September 30, 2023.

Current wording

As of March 31, 2025, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 14,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 12,200 locations at March 31, 2024.

Previous wording

The financial statements have been prepared in accordance with GAAP. The significant accounting policies and estimates that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results have been reported in the Company’s 2023 Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies for the nine months ended September 30, 2024.

Current wording

The financial statements have been prepared in accordance with GAAP. The significant accounting policies and estimates that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results have been reported in the Company’s 2024 Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies for the three months ended March 31, 2025.

Previous wording

(1)Includes $1.0 million and $1.5 million of retail merchandise sales from intersegment transactions for the three months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. retail merchandise sales for the three months ended September 30, 2024 and 2023 totaled $234.1 million and $202.3 million, respectively.

Current wording

(1)Includes $0.7 million and $1.0 million of retail merchandise sales from intersegment transactions for the three months ended March 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. retail merchandise sales for the three months ended March 31, 2025 and 2024 totaled $250.5 million and $236.0 million, respectively.

Previous wording

(2)Includes $0.5 million and $0.8 million of cost of retail merchandise sold from intersegment transactions for the three months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold for the three months ended September 30, 2024 and 2023 totaled $134.4 million and $114.9 million, respectively.

Current wording

(2)Includes $0.4 million and $0.6 million of cost of retail merchandise sold from intersegment transactions for the three months ended March 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold for the three months ended March 31, 2025 and 2024 totaled $145.4 million and $139.3 million, respectively.

Previous wording

U.S. retail merchandise sales increased 15%, totaling $235.0 million during the third quarter of 2024 compared to $203.8 million for the third quarter of 2023. Same-store retail sales increased 7% in the third quarter of 2024 compared to the third quarter of 2023. The increase in total retail sales was due to incremental sales contributions from acquired stores and the same-store sales increase. The gross profit margin on retail merchandise sales in the U.S. was 43% for both comparative periods, reflecting continued demand for value-priced, pre-owned merchandise and low levels of aged inventory.

Current wording

U.S. retail merchandise sales increased 6% to $251.2 million during the first quarter of 2025 compared to $237.0 million for the first quarter of 2024. Same-store retail sales increased 2% in the first quarter of 2025 compared to the first quarter of 2024. The increase in total retail sales was primarily due to incremental sales contributions from acquired stores and an increase in same-store sales. The gross profit margin on retail merchandise sales in the U.S. was 42% during the first quarter of 2025 compared to 41% during the first quarter of 2024.

Previous wording

U.S. inventories increased 10% from $217.4 million at September 30, 2023 to $238.7 million at September 30, 2024. The increase was primarily due to incremental inventories from acquired stores and an increase in same-store inventories as a result of the higher pawn loan balances noted below. Inventories aged greater than one year in the U.S. were 2% at September 30, 2024 compared to 1% at September 30, 2023.

Current wording

U.S. inventories increased 14% to $246.2 million at March 31, 2025 compared to $216.8 million at March 31, 2024. The increase was primarily due to incremental inventories from acquired stores and an increase in same-store inventories as a result of the higher pawn loan balances. Inventories aged greater than one year in the U.S. were 2% at March 31, 2025 compared to 1% at March 31, 2024.

Previous wording

U.S. pawn loan receivables as of September 30, 2024 increased 12% in total and 10% on a same-store basis compared to September 30, 2023. The Company believes the increase in same-store pawn receivables was primarily due to continued inflationary pressures driving additional demand for pawn loans and higher gold prices, which increased customers’ collateral value.

Current wording

U.S. pawn loan receivables as of March 31, 2025 increased 16% in total and 13% on a same-store basis compared to March 31, 2024. The Company believes the increase in same-store pawn receivables was primarily due to continued inflationary pressures driving additional demand for pawn loans and higher gold prices, which increased customers’ collateral value to borrow against.

Previous wording

U.S. operating expenses increased 12% to $128.1 million during the third quarter of 2024 compared to $114.0 million during the third quarter of 2023 while same-store operating expenses increased 6% compared with the prior-year period. The increase in operating expenses was primarily due to store growth.

Current wording

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.

Previous wording

The U.S. segment pre-tax operating income for the third quarter of 2024 was $98.3 million, which generated a pre-tax segment operating margin of 25% compared to $84.4 million and 25% in the prior year, respectively. The increase in the segment pre-tax operating income reflected increased net revenue from both acquired and existing stores partially offset by an increase in segment expenses.

Current wording

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.

Previous wording

Latin American segment pre-tax operating income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was impacted by an 11% 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 September 30, 2024 compared to September 30, 2023 was also impacted by an 11% 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.

Current wording

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.

Previous wording

Latin America retail merchandise sales decreased 3% (7% increase on a constant currency basis) to $129.1 million during the third quarter of 2024 compared to $132.8 million for the third quarter of 2023. Same-store retail sales also decreased 3% (7% increase on a constant currency basis) during the third quarter of 2024 compared to the third quarter of 2023. The increase in constant currency total and same-store retail sales was primarily due to increased inventory levels during the third quarter of 2024 compared to the third quarter of 2023 and greater demand for value-priced, pre-owned merchandise. The gross profit margin on retail merchandise sales was 35% during the third quarter of 2024 compared to 36% during the third quarter of 2023.

Current wording

Latin America retail merchandise sales decreased 8% (9% increase on a constant currency basis) to $120.5 million during the first quarter of 2025 compared to $130.8 million for the first quarter of 2024. Same-store retail sales decreased 9% (9% increase on a constant currency basis) during the first quarter of 2025 compared to the first quarter of 2024. The increase in constant currency total and same-store retail sales was primarily due to increased inventory levels during the first quarter of 2025 compared to the first quarter of 2024. The gross profit margin on retail merchandise sales was 35% during the first quarter of 2025 compared to 36% during the first quarter of 2024.

Previous wording

Latin America inventories decreased 1% (9% increase on a constant currency basis) from $97.0 million at September 30, 2023 to $95.7 million at September 30, 2024. The increase in constant currency inventories was primarily due to increases in pawn loan receivable balances over the past several quarters creating more forfeited inventory. Inventories aged greater than one year in Latin America were 1% at both September 30, 2024 and 2023.

Current wording

Latin America inventories increased 3% (24% increase on a constant currency basis) to $88.5 million at March 31, 2025 compared to $85.6 million at March 31, 2024. The increase in constant currency inventories was primarily due to increases in pawn loan receivable balances over the past several quarters creating more forfeited inventory and a slightly increased mix of

Previous wording

Latin America pawn loan receivables decreased 4% (6% increase on a constant currency basis) as of September 30, 2024 compared to September 30, 2023. On a same-store basis, pawn loan receivables also decreased 4% (6% increase on a constant currency basis) as of September 30, 2024 compared to September 30, 2023. The increase in constant currency total and same-store pawn receivables is primarily due to increasing demand for pawn loans and larger loan sizes driven in part by higher gold prices and a slightly increased mix of higher value jewelry loans.

Current wording

Latin America pawn loan receivables decreased 5% (15% increase on a constant currency basis) as of March 31, 2025 compared to March 31, 2024. On a same-store basis, pawn loan receivables decreased 5% (14% increase on a constant currency basis) as of March 31, 2025 compared to March 31, 2024. The increase in constant currency total and same-store pawn receivables is primarily due to increasing demand for pawn loans and larger loan sizes, driven in part by higher gold prices and a slightly increased mix of higher value jewelry loans.

Previous wording

Latin America pawn loan fees decreased 4% (6% increase on a constant currency basis), totaling $58.2 million during the third quarter of 2024 compared to $60.5 million for the third quarter of 2023. Same-store pawn fees also decreased 4% (6% increase on a constant currency basis) in the third quarter of 2024 compared to the third quarter of 2023. The increase in total and same-store constant currency pawn loan fees was primarily due to increased constant currency average pawn loan receivable balances outstanding during the third quarter of 2024 compared to the third quarter of 2023.

Current wording

Latin America pawn loan fees decreased 5% (13% increase on a constant currency basis), totaling $53.9 million during the first quarter of 2025 compared to $56.6 million for the first quarter of 2024. Same-store pawn fees also decreased 5% (13% increase on a constant currency basis) in the first quarter of 2025 compared to the first quarter of 2024. The constant currency increase in total and same-store pawn loan fees was primarily due to increased constant currency same-store pawn receivables.

Previous wording

Operating expenses decreased 1% (8% increase on a constant currency basis) to $63.1 million during the third quarter of 2024 compared to $63.9 million during the third quarter of 2023. Same-store operating expenses decreased 2% (8% increase on a constant currency basis) compared to the prior-year period. The constant currency increase in total and same-store constant currency operating expenses was primarily driven by increased store counts, accelerated store opening activity, general inflationary impacts and continued increases in the federally mandated minimum wage and increased costs associated with required employee benefit programs.

Current wording

Operating expenses decreased 9% (8% increase on a constant currency basis) to $61.4 million during the first quarter of 2025 compared to $67.4 million during the first quarter of 2024. Same-store operating expenses decreased 8% (8% increase on a constant currency basis) compared to the prior-year period. The constant currency increase in total and same-store operating expenses was primarily driven by increased store counts, accelerated store opening activity, general inflationary impacts and continued increases in the federally mandated minimum wage.

Previous wording

The segment pre-tax operating income for the third quarter of 2024 was $38.5 million, which generated a pre-tax segment operating margin of 19% compared to $41.0 million and 20% in the prior year, respectively. The decrease in the segment pre-tax operating income and margin reflected the decrease in net revenue, partially offset by a decrease in operating expenses.

Current wording

The segment pre-tax operating income for the first quarter of 2025 was $31.4 million, which generated a pre-tax segment operating margin of 17% compared to $31.9 million and 16% in the prior year, respectively. The decrease in the segment pre-tax operating income and margin reflected the decrease in net revenue, partially offset by a decrease in operating expenses.

Previous wording

(1)Includes $0.4 million and $0.5 million of depreciation of leased merchandise from intersegment transactions for the three months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated depreciation of leased merchandise for the three months ended September 30, 2024 and 2023 totaled $104.9 million and $103.7 million, respectively.

Current wording

(1)Includes $0.3 million and $0.5 million of depreciation of leased merchandise from intersegment transactions for the three months ended March 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated depreciation of leased merchandise for the three months ended March 31, 2025 and 2024 totaled $88.8 million and $120.3 million, respectively.

Previous wording

(2)Includes $0.4 million and $0.2 million of provision for lease losses from intersegment transactions for the nine months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated provision for lease losses for the nine months ended September 30, 2024 and 2023 totaled $129.8 million and $141.7 million, respectively.

Current wording

(2)Includes less than $0.1 million and $0.2 million of provision for lease losses from intersegment transactions for the three months ended March 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated provision for lease losses for the three months ended March 31, 2025 and 2024 totaled $27.6 million and $43.0 million, respectively.

Previous wording

(1)Includes $0.2 million and $1.7 million of intersegment transactions as of September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated net leased merchandise as of September 30, 2024 and 2023 totaled $137.8 million and $143.2 million, respectively.

Current wording

(1)Includes $0.2 million and $0.3 million of intersegment transactions as of March 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated net leased merchandise as of March 31, 2025 and 2024 totaled $103.6 million and $157.8 million, respectively.

Previous wording

(1)Includes $0.4 millionand $0.2 million of provision for lease losses from intersegment transactions for the nine months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated provision for lease losses for the nine months ended September 30, 2024 and 2023 totaled $129.8 million and $141.7 million, respectively.

Current wording

(1)Includes less than $0.1 million and $0.2 million of provision for lease losses from intersegment transactions for the three months ended March 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated provision for lease losses for the three months ended March 31, 2025 and 2024 totaled $27.6 million and $43.0 million, respectively.

Previous wording

Leased merchandise, before allowance for lease losses, decreased 7% as of September 30, 2024 compared to September 30, 2023. The decrease was primarily due to decreased gross transaction volumes originated by retail furniture merchant partners.

Current wording

Leased merchandise, before allowance for lease losses, decreased 32% as of March 31, 2025 compared to March 31, 2024. The decrease was primarily due to reduced first quarter originations resulting from the bankruptcy filings in late 2024 for two of AFF’s larger retail furniture merchant partners (American Freight and Conn’s Home Plus).

Previous wording

The allowance for lease losses decreased 11% to $93.8 million as of September 30, 2024 compared to $105.5 million as of September 30, 2023, which was primarily due to the decrease in leased merchandise. As a percentage of lease merchandise, the allowance was 40% at September 30, 2024 and 42% at September 30, 2023.

Current wording

The allowance for lease losses decreased 28% to $69.1 million as of March 31, 2025 compared to $95.8 million as of March 31, 2024, which was primarily due to the decrease in leased merchandise, partially offset by slightly higher lease loss provisioning rates used during the first quarter of 2025 as compared to first quarter of 2024. As a percentage of lease merchandise, the allowance was 40% at March 31, 2025 and 38% at March 31, 2024.

Previous wording

Leased merchandise income decreased slightly to $188.6 million during the third quarter of 2024 compared to $189.4 million during the third quarter of 2023, which was primarily due to lower average leased merchandise balances outstanding during the third quarter of 2024 compared to the third quarter of 2023.

Current wording

Leased merchandise income decreased 24% to $156.9 million during the first quarter of 2025 compared to $205.7 million during the first quarter of 2024, which was primarily due to lower average leased merchandise balances outstanding during the first quarter of 2025 compared to the first quarter of 2024.

Previous wording

Depreciation of leased merchandise increased 9% to $336.6 million during the nine months ended September 30, 2024 compared to $309.4 million during the nine months ended September 30, 2023. As a percentage of leased merchandise income, depreciation of leased merchandise increased from 55% during the nine months ended September 30, 2023 to 57% during the nine months ended September 30, 2024 primarily as a result of a slight increase in customers taking advantage of early buyout or other early payment options.

Current wording

Depreciation of leased merchandise decreased 26% to $89.1 million during the first quarter of 2025 compared to $120.8 million during the first quarter of 2024, primarily due to the decrease in leased merchandise balances outstanding. As a percentage of leased merchandise income, depreciation of leased merchandise decreased from 59% during the first quarter of 2024 to 57% during the first quarter of 2025, primarily as a result of a decrease in customers taking advantage of early buyout or other early payment options.

Previous wording

Provision for lease losses decreased 8% to $130.3 million during the nine months ended September 30, 2024 compared to $141.9 million for the nine months ended September 30, 2023, which was primarily due to a slight decrease in lease loss provisioning rates used during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 and the 2% decrease in gross transaction volumes. As a percentage of gross transaction volume, the provision for lease losses decreased from 31% during the nine months ended September 30, 2023 to 29% during the nine months ended September 30, 2024.

Current wording

Provision for lease losses decreased 36% to $27.6 million during the first quarter of 2025 compared to $43.2 million during the first quarter of 2024, which was primarily due to the 39% decrease in gross transaction volumes. As a percentage of gross transaction volume, the provision for lease losses increased slightly to 29% during the first quarter of 2025 compared to 28% during the first quarter of 2024.

Previous wording

Finance receivables, before allowance for loan losses, increased 11% as of September 30, 2024 compared to September 30, 2023. The increase was primarily due to increased gross transaction volumes in certain non-furniture industry verticals.

Current wording

Finance receivables, before allowance for loan losses, increased 31% as of March 31, 2025 compared to March 31, 2024. The increase was primarily due to increased gross transaction volumes in certain non-furniture industry verticals.

Previous wording

The allowance for loan losses increased 13% to $109.2 million as of September 30, 2024 compared to $96.7 million as of September 30, 2023, which was primarily due to the increase in finance receivables. As a percentage of finance receivables, the allowance was 47% at September 30, 2024 compared to 46% at September 30, 2023.

Current wording

The allowance for loan losses increased 23% to $118.3 million as of March 31, 2025 compared to $96.0 million as of March 31, 2024, which was primarily due to the increase 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.

Previous wording

Interest and fees on finance receivables increased 1% to $175.4 million during the nine months ended September 30, 2024 compared to $174.2 million for the nine months ended September 30, 2023. 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 in the nine months ended September 30, 2024, some of which provide slightly lower interest rates.

Current wording

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.

Previous wording

Provision for loan losses increased 23% to $40.6 million during the third quarter of 2024 compared to $33.1 million during the third quarter of 2023, which was primarily due to the 39% increase in gross transaction volume, partially offset by a reduction in the net provisioning rates used during the third quarter of 2024 based on lower than expected loss rates on older vintages. As a percentage of gross transaction volume, the provision for loan losses decreased from 32% during the third quarter of 2023 to 28% during the third quarter of 2024.

Current wording

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.

Previous wording

The retail POS payment solutions segment pre-tax operating income for the third quarter of 2024 was $30.2 million compared to $39.4 million in the third quarter of 2023. The decrease was primarily the result of the decrease in segment net revenue.

Current wording

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.

Previous wording

Administrative expenses decreased 9% to $40.9 million during the third quarter of 2024 compared to $45.1 million in the third quarter of 2023, primarily due to decreased management incentive compensation expense and an 11% change in the average value of the Mexican peso resulting in lower U.S. dollar translated administrative expenses in Latin America, partially offset by the increase in the pawn store count. As a percentage of revenue, administrative expenses were 5% in the third quarter of 2024 compared to 6% during the third quarter of 2023.

Current wording

Administrative expenses increased 10% to $48.5 million during the first quarter of 2025 compared to $44.0 million in the first quarter of 2024, primarily due to the increase in the pawn store count and general inflationary impacts, partially offset by a 20% 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% in the first quarter of 2025 compared to 5% during the first quarter of 2024.

Previous wording

Depreciation and amortization decreased 11% to $13.2 million during the third quarter of 2024 compared to $14.8 million in the third quarter of 2023, primarily due to a $1.7 million decrease in amortization of acquired AFF intangible assets.

Current wording

Depreciation and amortization decreased 3% to $12.8 million during the first quarter of 2025 compared to $13.2 million in the first quarter of 2024, primarily due to a scheduled $0.4 million decrease in amortization of acquired AFF intangible assets.

Previous wording

Interest expense increased 17% to $78.0 million during the nine months ended September 30, 2024 compared to $66.7 million for the nine months ended September 30, 2023, primarily due to higher floating interest rates on the Company’s unsecured bank credit facilities and higher average total long-term debt balances outstanding. See Note 8 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”

Current wording

Interest expense increased 8% to $27.5 million during the first quarter of 2025 compared to $25.4 million in the first quarter of 2024, primarily due to higher average total long-term debt balances outstanding. See Note 7 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”

Previous wording

Consolidated effective income tax rates for the third quarter of 2024 and 2023 were 23.9% and 26.4%, respectively. The decrease in the effective tax rate was primarily due to an increase in U.S.-sourced income as a result of the U.S. store acquisition activity since the beginning of 2023, which is taxed at a lower rate than the Latin American countries in which the Company operates. In addition, the Company recorded an increased foreign permanent tax benefit in the third quarter of 2024 compared to the third quarter of 2023, related to an inflation index adjustment allowed in Mexico.

Current wording

Consolidated effective income tax rates for the first quarter of 2025 and 2024 were 24.8% and 25.1%, respectively.

Previous wording

The Company’s primary capital requirements include:

Current wording

The Company’s primary capital requirements include the: