FirstCash Holdings, Inc.

Additional Commentary and Analysis

Mr. Wessel further commented on FirstCash’s third quarter results and the outlook for the remainder of 2025, “We are extremely pleased with the record third quarter operating results and the timely completion of the H&T acquisition. From a long-term perspective, these results further validate our growth strategies and strong market positioning, with FirstCash now having over 3,300 pawn locations operating across six countries on three continents.

“Demand for our products and services in each pawn segment are at record levels as our operators and associates continue to execute superbly and efficiently, as evidenced by outstanding and consistent retail margins, low levels of aged inventory and segment profitability growth. Given this momentum, we are confident in our prospects for a strong fourth quarter and full year 2025 results.

“The U.S. pawn segment has now posted nine consecutive quarters of double-digit same-store pawn loan increases while same-store receivable growth in Latin America at quarter-end surged 18% ahead of last year on a local currency basis. H&T’s operating results reflect similar strength in customer demand in the U.K., with same-store pawn receivables up 25% on a local currency basis compared to a year ago and strong margins on pawn merchandise disposition.

“The robust growth in pawn revenues continues to be driven primarily by strong customer demand from a combination of more customer transactions and larger loan amounts requested by our customers. Pawn loan originations and balances thus far for the month of October continue to reflect similarly strong demand trends in each market. At the same time, we remain conservative in managing loan-to-value ratios as we have intentionally lagged market increases of precious metal prices by several months for the purpose of setting lending standards.

“Our retail POS payment solutions segment contributed to the record consolidated third quarter results as well, driven by its strong operating margins, improving credit performance and significant cash flow generation. The continued focus on the diversification and quality of AFF’s merchant partner relationships, as evidenced by increased door counts across multiple industry verticals, we believe positions the segment well for expected long-term growth in originations and revenues.

“FirstCash is highly focused on several near-term opportunities to add additional locations through acquisitions and new store openings in all three pawn segments. As previously noted, last week we completed the acquisition of four high-performing pawn stores, including the purchase of the underlying real estate, in a growing Texas market, and additionally we are in position to add another 30 or more pawn locations across all segments over the next 90 days. Even after funding the $392 million cash acquisition of H&T, leverage remains within a normal range and we anticipate further natural deleveraging over the next two quarters as we enter our strongest period of seasonal cash flows.

“While continuing to invest in the significant growth of the pawn store platform, we remain committed to meaningful shareholder returns. During the third quarter, FirstCash repurchased $30 million of its common stock, bringing the year-to-date buybacks to a total of $90 million. Although we have $25 million remaining under the current authorization, the Board of Directors has authorized an additional $150 million for further potential share repurchases. Since our 2016 merger with Cash America, we have repurchased over $1 billion of our stock at an average price of $82 per share. Additionally, we paid a quarterly dividend of $0.42 per share in the third quarter, which represented an 11% increase over the previous quarterly dividend.

“Our balance sheet remains strong, and in addition to funding loan growth, our solid cash flows allow us to continue our pursuit of store growth through both strategic acquisitions and de novo store openings, select real estate purchases, dividend payouts and share repurchases,” concluded Mr. Wessel.