FirstCash Holdings, Inc.
For the period ended Jun 30, 2026. Filed Jul 27, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 27, 2026
FCFS$185.67-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-24.
0000840489-26-000049
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-27.
0000840489-26-000085
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 144 previous paragraphs and 193 current paragraphs.
85 unchanged; 54 reworded; 38 added; 4 removed; 1 previous and 16 current paragraphs rearranged.
Tables are not compared: 16 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
Provision for lease losses decreased 25% to $24.5 million during the second quarter of 2026 compared to $32.7 million during the second quarter of 2025, which was primarily due to the 22% decrease in gross transaction volumes and slightly lower lease loss provisioning rates used during the second quarter of 2026 compared to the second quarter of 2025. As a percentage of gross transaction volume, the provision for lease losses decreased to 29% during the second quarter of 2026 compared to 30% during the second quarter of 2025.
Current report
Administrative expenses increased 13% to $66.8 million during the second quarter of 2026 compared to $59.3 million in the second quarter of 2025, primarily due to the addition of administrative expenses of H&T, increased variable compensation, general inflationary impacts and an 11% change in the average value of the Mexican peso resulting in higher U.S. dollar translated administrative expenses in Latin America, partially offset by the $11.0 million CFPB litigation settlement accrued for in the second quarter of 2025. As a percentage of revenue, administrative expenses decreased to 6% in the second quarter of 2026 compared to 7% during the second quarter of 2025.
Current report
Merger and acquisition expenses increased 129% to $6.4 million during the second quarter of 2026 compared to $2.8 million in the second quarter of 2025, primarily due to $4.2 million of aggregate prepayment penalties incurred during the second quarter of 2026 to terminate the U.K. Term Loans as the Company continues its integration activities of H&T.
Current report
Operating Results for the Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Current report
U.S. Pawn Segment
Current report
Retail Merchandise Sales Operations
Current report
U.S. retail merchandise sales increased 12% to $559.5 million during the six months ended June 30, 2026 compared to $501.1 million for the six months ended June 30, 2025. Same-store retail sales increased 8% during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase in total and same-store retail sales was primarily due to continued strong demand for value priced merchandise and increased inventory levels during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The gross profit margin on retail merchandise sales in the U.S. was 44% during the six months ended June 30, 2026 compared to 42% during the six months ended June 30, 2025.
Current report
U.S. wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 92% to $119.7 million during the six months ended June 30, 2026 compared to $62.2 million during the six months ended June 30, 2025. The scrap gross profit margin in the U.S. was 19% compared to the prior-year margin of 14%. The increase in wholesale scrap jewelry revenue was primarily due to increases in pawn lending activity over the past several quarters, which created more forfeited collateral to scrap, and the increase in gold prices over the past year.
Current report
U.S. pawn loan fees increased 14% to $307.9 million during the six months ended June 30, 2026 compared to $268.9 million for the six months ended June 30, 2025. Same-store pawn loan fees increased 13% during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase in total and same-store pawn loan fees was primarily due to the higher pawn receivable balances.
Current report
The U.S. segment pre-tax operating income for the six months ended June 30, 2026 was $270.6 million, which generated a pre-tax segment operating margin of 27% compared to $211.4 million and 25% in the prior year, respectively. The increase in the segment pre-tax operating income and margin reflected increased net revenue, partially offset by an increase in segment expenses.
Current report
Latin America Pawn Segment
Current report
Retail Merchandise Sales Operations
Current report
Latin America retail merchandise sales increased 30% (15% on a constant currency basis) to $334.2 million during the six months ended June 30, 2026 compared to $256.5 million for the six months ended June 30, 2025. Same-store retail sales also increased 30% (15% on a constant currency basis) during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase in constant currency total and same-store retail sales was primarily due to strong demand for value priced merchandise and increased inventory levels during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The gross profit margin on retail merchandise sales was 35% during both the six months ended June 30, 2026 and 2025.
Current report
Latin America wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 198% to $58.8 million during the six months ended June 30, 2026 compared to $19.7 million during the six months ended June 30, 2025. The scrap gross profit margin in Latin America was 15% during both the six months ended June 30, 2026 and 2025. The increase in wholesale scrap jewelry revenue was primarily due to increases in pawn lending activity over the past several quarters, which created more forfeited collateral to scrap, and the increase in gold prices over the past year.
Current report
Latin America pawn loan fees increased 37% (21% on a constant currency basis) totaling $156.2 million during the six months ended June 30, 2026 compared to $113.8 million for the six months ended June 30, 2025. Same-store pawn fees also increased 37% (21% on a constant currency basis) during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The constant currency increase in total and same-store pawn loan fees was primarily due to increased constant currency pawn receivables.
Current report
Operating expenses increased 29% (15% increase on a constant currency basis) to $162.9 million during the six months ended June 30, 2026 compared to $125.8 million during the six months ended June 30, 2025. Same-store operating expenses increased 29% (14% 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 general inflationary impacts and continued increases in the federally mandated minimum wage.
Current report
The segment pre-tax operating income for the six months ended June 30, 2026 was $109.0 million, which generated a pre-tax segment operating margin of 20% compared to $72.4 million and 19% in the prior year, respectively. The increase in the segment pre-tax operating income and margin reflected increased net revenue, partially offset by an increase in segment expenses.
Current report
U.K. Pawn Segment
Current report
The U.K. pawn segment contributed $197.0 million in revenue and $72.8 million in pre-tax segment operating income for the six months ended June 30, 2026. The resulting pre-tax segment operating margin was 37%.
Current report
Retail POS Payment Solutions Segment
Current report
The following table details retail POS payment solutions gross transaction volumes originated during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 (dollars in thousands):
Current report
(1) For the six months ended June 30, 2026, includes $27.7 million of OBS Loans.
Current report
LTO Operations
Current report
Leased merchandise income decreased 17% to $245.7 million during the six months ended June 30, 2026 compared to $296.7 million for the six months ended June 30, 2025, which was primarily due to lower average leased merchandise balances outstanding during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report
Provision for lease losses decreased 10% to $54.4 million during the six months ended June 30, 2026 compared to $60.3 million for the six months ended June 30, 2025, which was primarily due to the 11% decrease in gross transaction volumes during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. As a percentage of gross transaction volume, the provision for lease losses increased slightly to 30% during the six months ended June 30, 2026 compared to 29% during the six months ended June 30, 2025.
Current report
Retail Finance Operations
Current report
Provision for loan losses increased 6% to $82.8 million during the six months ended June 30, 2026 compared to $78.1 million for the six months ended June 30, 2025, which was primarily due to higher loan loss provisioning rates used during the six months ended June 30, 2026 compared to the six months ended June 30, 2025, partially offset by the 3% decrease in gross transaction volumes. As a percentage of gross transaction volume, the provision for loan losses increased to 29% during the six months ended June 30, 2026 compared to 27% during the six months ended June 30, 2025.
Current report
Operating expenses decreased 2% to $47.6 million during the six months ended June 30, 2026 compared to $48.5 million during the six months ended June 30, 2025. As a percentage of segment revenues, operating expenses increased to 12% during the six months ended June 30, 2026 from 11% during the six months ended June 30, 2025.
Current report
Corporate Expenses and Taxes
Current report
Depreciation and amortization increased 27% to $32.4 million during the six months ended June 30, 2026 compared to $25.5 million in the six months ended June 30, 2025, primarily due to the addition of depreciation and amortization expenses of H&T during the six months ended June 30, 2026.
Current report
Merger and acquisition expenses increased 123% to $7.2 million during the six months ended June 30, 2026 compared to $3.2 million in the six months ended June 30, 2025, primarily due to $4.2 million of aggregate prepayment penalties incurred during the second quarter of 2026 to terminate the U.K. Term Loans as the Company continues its integration activities of H&T.
Current report
In connection with the pending Ramsdens Acquisition, the Company expects to acquire the entire issued and to be issued share capital of Ramsdens by the end of 2026 by paying Ramsdens’ shareholders 675 pence per share in cash. In addition, Ramsdens’ shareholders will receive an interim cash dividend of up to 9 pence for each Ramsdens share to be paid on October 9, 2026. The total equity value for the Ramsdens Acquisition, including cash consideration for the shares, is approximately £231.7 million ($307.5 million USD using GBP/USD exchange rate of 1.33).
Current report
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Current report
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Current report
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Current report
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Current report
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Current report
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Removed paragraphs (4)
Previous report
Pawn Lending Operations
Previous report
Pawn Lending Operations
Previous report
Provision for lease losses increased 8% to $29.9 million during the first quarter of 2026 compared to $27.6 million during the first quarter of 2025, which was primarily due to the 3% increase in gross transaction volumes and slightly higher lease loss provisioning rates used during the first quarter of 2026 compared to the first quarter of 2025. As a percentage of gross transaction volume, the provision for lease losses increased to 31% during the first quarter of 2026 compared to 29% during the first quarter of 2025.
Previous report
Net cash used in financing activities decreased $73.7 million, or 70%, from $105.3 million for the three months ended March 31, 2025 to $31.6 million for the three months ended March 31, 2026. Net borrowings on credit facilities were $48.1 million during the three months ended March 31, 2026 compared to net payments of $23.0 million during the three months ended March 31, 2025. The Company funded $50.0 million of share repurchases during the three months ended March 31, 2026 compared to $59.6 million during the three months ended March 31, 2025. The Company paid dividends of $18.5 million during the three months ended March 31, 2026 compared to $16.9 million during the three months ended March 31, 2025. In
Reworded paragraphs (54)
Previous wording
The Company completed the acquisition of H&T, the leading pawn operator in the United Kingdom, on August 14, 2025, the date which the balance sheet and operating results of H&T were included in the Company’s consolidated financial results.
Current wording
The Company completed the acquisition of H&T, the leading pawn operator in the United Kingdom, on August 14, 2025, the date on which the balance sheet and operating results of H&T were included in the Company’s consolidated financial results.
Previous wording
As of March 31, 2026, the Company operated 3,334 pawn store locations composed of 1,207 stores in 29 U.S. states and the District of Columbia, 1,733 stores in 32 states in Mexico, 75 stores in Guatemala, 18 stores in El Salvador, 12 stores in Colombia and 289 stores in the U.K.
Current wording
As of June 30, 2026, the Company operated 3,343 pawn store locations composed of 1,212 stores in 29 U.S. states and the District of Columbia, 1,729 stores in 32 states in Mexico, 77 stores in Guatemala, 18 stores in El Salvador, 12 stores in Colombia and 295 stores in the U.K.
Previous wording
The following table details pawn store count activity for the three months ended March 31, 2026:
Current wording
The following tables detail pawn store count activity for the three and six months ended June 30, 2026:
Previous wording
As of March 31, 2026, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 16,600 active retail merchant partner locations located in all 50 U.S. states and the District of Columbia, up from approximately 14,500 locations at March 31, 2025.
Current wording
As of June 30, 2026, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 16,700 active retail merchant partner locations located in all 50 U.S. states and the District of Columbia, up from approximately 15,300 locations at June 30, 2025.
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 2025 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, 2026.
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 2025 Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies for the six months ended June 30, 2026.
Previous wording
Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, gain on foreign exchange, merger and acquisition expenses, and other income, net, are presented on a consolidated basis and are not allocated between the segments. Intersegment transactions related to AFF’s LTO payment solution product offered in U.S. pawn stores are eliminated from consolidated totals.
Current wording
Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, loss (gain) on foreign exchange, merger and acquisition expenses, and other income, net, are presented on a consolidated basis and are not allocated between the segments. Intersegment transactions related to AFF’s LTO payment solution product offered in U.S. pawn stores are eliminated from consolidated totals.
Previous wording
U.S. retail merchandise sales increased 13% to $283.8 million during the first quarter of 2026 compared to $251.2 million for the first quarter of 2025. Same-store retail sales increased 9% in the first quarter of 2026 compared to the first quarter of 2025. The increase in total and same-store retail sales was primarily due to continued strong demand for value priced merchandise and increased inventory levels during the first quarter of 2026 compared to the first quarter of 2025. The gross profit margin on retail merchandise sales in the U.S. increased to 44% during the first quarter of 2026 compared to 42% during the first quarter of 2025.
Current wording
U.S. retail merchandise sales increased 10% to $275.7 million during the second quarter of 2026 compared to $249.9 million for the second quarter of 2025. Same-store retail sales increased 8% in the second quarter of 2026 compared to the second quarter of 2025. The increase in total and same-store retail sales was primarily due to continued strong demand for value priced merchandise and increased inventory levels during the second quarter of 2026 compared to the second quarter of 2025. The gross profit margin on retail merchandise sales in the U.S. was 43% during both the second quarter of 2026 and 2025.
Previous wording
U.S. wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 41% to $47.4 million during the first quarter of 2026 compared to $33.5 million during the first quarter of 2025. The scrap gross profit margin in the U.S. was 24% compared to the prior-year margin of 19%. The increase in wholesale scrap jewelry revenue was primarily due to increases in pawn lending activity over the past several quarters, which created more forfeited collateral to scrap, and the increase in gold prices over the past year.
Current wording
U.S. wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 152% to $72.3 million during the second quarter of 2026 compared to $28.7 million during the second quarter of 2025. The scrap gross profit margin in the U.S. was 16% compared to the prior-year margin of 9%. The increase in wholesale scrap jewelry revenue was primarily due to increases in pawn lending activity over the past several quarters, which created more forfeited collateral to scrap, and the increase in gold prices over the past year.
Previous wording
U.S. inventories increased 27% to $311.6 million at March 31, 2026 compared to $246.2 million at March 31, 2025. The increase was primarily due to increases in pawn lending activity over the past several quarters, which created more forfeited inventory available for sale. Inventories aged greater than one year in the U.S. were 1.7% at both March 31, 2026 and 2025.
Current wording
U.S. inventories increased 28% to $324.1 million at June 30, 2026 compared to $252.9 million at June 30, 2025. The increase was primarily due to increases in pawn lending activity over the past several quarters, which created more forfeited inventory available for sale, partially offset by an increase in forfeited collateral that was scrapped. Inventories aged greater than one year in the U.S. were 1.5% at June 30, 2026, which excludes aged inventories from certain recently acquired stores, compared to 1.9% at June 30, 2025.
Previous wording
U.S. pawn loan receivables as of March 31, 2026 increased 21% in total and 19% on a same-store basis compared to March 31, 2025. The Company believes the increase in same-store pawn receivables was primarily due to continued strong customer demand from a combination of more customer transactions and an increase in the average loan amount requested by customers.
Current wording
U.S. pawn loan receivables as of June 30, 2026 increased 20% in total and 19% on a same-store basis compared to June 30, 2025. The Company believes the increase in same-store pawn receivables was primarily due to continued strong customer demand from a combination of more customer transactions and an increase in the average loan amount requested by customers.
Previous wording
U.S. pawn loan fees increased 14% to $157.8 million during the first quarter of 2026 compared to $137.9 million for the first quarter of 2025. Same-store pawn loan fees increased 13% in the first quarter of 2026 compared to the first quarter of 2025. The increase in total and same-store pawn loan fees was due to the higher pawn receivable balances.
Current wording
U.S. pawn loan fees increased 15% to $150.1 million during the second quarter of 2026 compared to $130.9 million for the second quarter of 2025. Same-store pawn loan fees increased 14% in the second quarter of 2026 compared to the second quarter of 2025. The increase in total and same-store pawn loan fees was due to the higher pawn receivable balances.
Previous wording
U.S. operating expenses increased 12% to $143.9 million during the first quarter of 2026 compared to $129.0 million during the first quarter of 2025 while same-store operating expenses increased 10% compared with the prior-year period. The increase in operating expenses was primarily due to increased labor and variable compensation expenses.
Current wording
U.S. operating expenses increased 6% to $142.4 million during the second quarter of 2026 compared to $133.8 million during the second quarter of 2025 while same-store operating expenses increased 5% compared with the prior-year period. The increase in operating expenses was primarily due to increased labor and variable compensation expenses.
Previous wording
The U.S. segment pre-tax operating income for the first quarter of 2026 was $141.4 million, which generated a pre-tax segment operating margin of 29% compared to $113.1 million and 27% in the prior year, respectively. The increase in the segment pre-tax operating income and margin reflected increased net revenue, partially offset by an increase in segment expenses.
Current wording
The U.S. segment pre-tax operating income for the second quarter of 2026 was $129.2 million, which generated a pre-tax segment operating margin of 26% compared to $98.3 million and 24% in the prior year, respectively. The increase in the segment pre-tax operating income and margin reflected increased net revenue, partially offset by an increase in segment expenses.
Previous wording
Latin America segment pre-tax operating income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 benefited from a 14% favorable 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, 2026 compared to March 31, 2025 also benefited from an 11% favorable 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 America segment pre-tax operating income for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 benefited from an 11% favorable 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 June 30, 2026 compared to June 30, 2025 also benefited from a 7% favorable 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 increased 33% (15% on a constant currency basis) to $159.8 million during the first quarter of 2026 compared to $120.5 million for the first quarter of 2025. Same-store retail sales also increased 33% (15% on a constant currency basis) during the first quarter of 2026 compared to the first quarter of 2025. The increase in constant currency total and same-store retail sales was primarily due to strong demand for value priced merchandise and increased inventory levels during the first quarter of 2026 compared to the first quarter of 2025. The gross profit margin on retail merchandise sales was 35% during both the first quarter of 2026 and 2025.
Current wording
Latin America retail merchandise sales increased 28% (15% on a constant currency basis) to $174.3 million during the second quarter of 2026 compared to $136.0 million for the second quarter of 2025. Same-store retail sales also increased 28% (15% on a constant currency basis) during the second quarter of 2026 compared to the second quarter of 2025. The increase in constant currency total and same-store retail sales was primarily due to strong demand for value priced merchandise and increased inventory levels during the second quarter of 2026 compared to the second quarter of 2025. The gross profit margin on retail merchandise sales was 35% during the second quarter of 2026 compared to 36% during the second quarter of 2025.
Previous wording
Latin America wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 113% to $20.6 million during the first quarter of 2026 compared to $9.7 million during the first quarter of 2025. The scrap gross profit margin in Latin America was 18% compared to the prior-year margin of 16%. The increase in wholesale scrap jewelry revenue was primarily due to increases in pawn lending activity over the past several quarters, which created more forfeited collateral to scrap, and the increase in gold prices over the past year.
Current wording
Latin America wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 279% to $38.2 million during the second quarter of 2026 compared to $10.1 million during the second quarter of 2025. The scrap gross profit margin in Latin America was 14% for both the second quarter of 2026 and 2025. The increase in wholesale scrap jewelry revenue was primarily due to increases in pawn lending activity over the past several quarters, which created more forfeited collateral to scrap, and the increase in gold prices over the past year.
Previous wording
Latin America inventories increased 63% (46% on a constant currency basis) to $144.0 million at March 31, 2026 compared to $88.5 million at March 31, 2025. The increase in constant currency inventories was primarily due to increased pawn lending activity over the past several quarters, creating more forfeited inventory and a slightly increased mix of higher value jewelry inventory. Inventories aged greater than one year in Latin America were 1.3% at March 31, 2026 compared to 1.5% at March 31, 2025.
Current wording
Latin America inventories increased 57% (45% on a constant currency basis) to $161.0 million at June 30, 2026 compared to $102.8 million at June 30, 2025. The increase in constant currency inventories was primarily due to increased pawn lending activity over the past several quarters, creating more forfeited inventory and a slightly increased mix of higher value jewelry inventory, partially offset by an increase in forfeited collateral that was scrapped. Inventories aged greater than one year in Latin America were 1.2% at June 30, 2026 compared to 1.5% at June 30, 2025.
Previous wording
Latin America pawn loan receivables increased 45% (30% on a constant currency basis) as of March 31, 2026 compared to March 31, 2025. On a same-store basis, pawn loan receivables also increased 45% (30% on a constant currency basis) as of March 31, 2026 compared to March 31, 2025. The increase in constant currency total and same-store pawn receivables is primarily due to increased number of pawn loans and larger average loan sizes, driven in part by an increased mix of higher value jewelry loans.
Current wording
Latin America pawn loan receivables increased 32% (22% on a constant currency basis) as of June 30, 2026 compared to June 30, 2025. On a same-store basis, pawn loan receivables also increased 32% (22% on a constant currency basis) as of June 30, 2026 compared to June 30, 2025. The increase in constant currency total and same-store pawn receivables is primarily due to the increased number of pawn loans and larger average loan sizes, driven in part by an increased mix of higher value jewelry loans.
Previous wording
Latin America pawn loan fees increased 42% (23% on a constant currency basis), totaling $76.6 million during the first quarter of 2026 compared to $53.9 million for the first quarter of 2025. Same-store pawn fees also increased 42% (23% on a constant currency basis) in the first quarter of 2026 compared to the first quarter of 2025. The constant currency increase in total and same-store pawn loan fees was primarily due to increased constant currency pawn receivables.
Current wording
Latin America pawn loan fees increased 33% (19% on a constant currency basis), totaling $79.6 million during the second quarter of 2026 compared to $59.9 million for the second quarter of 2025. Same-store pawn fees also increased 33% (19% on a constant currency basis) in the second quarter of 2026 compared to the second quarter of 2025. The constant currency increase in total and same-store pawn loan fees was primarily due to increased constant currency pawn receivables.
Previous wording
Operating expenses increased 31% (14% on a constant currency basis) to $80.7 million during the first quarter of 2026 compared to $61.4 million during the first quarter of 2025. Same-store operating expenses also increased 31% (14% 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 general inflationary impacts and continued increases in the federally mandated minimum wage.
Current wording
Operating expenses increased 28% (15% on a constant currency basis) to $82.2 million during the second quarter of 2026 compared to $64.4 million during the second quarter of 2025. Same-store operating expenses also increased 28% (15% 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 general inflationary impacts and continued increases in the federally mandated minimum wage.
Previous wording
The segment pre-tax operating income for the first quarter of 2026 was $50.9 million, which generated a pre-tax segment operating margin of 20% compared to $31.4 million and 17% in the prior year, respectively. The increase in the segment pre-tax operating income and margin reflected increased net revenue, partially offset by an increase in segment expenses.
Current wording
The segment pre-tax operating income for the second quarter of 2026 was $58.1 million, which generated a pre-tax segment operating margin of 20% compared to $41.0 million and 20% in the prior year, respectively. The increase in the segment pre-tax operating income reflected increased net revenue, partially offset by an increase in segment expenses.
Previous wording
The U.K. pawn segment contributed $101.7 million in revenue and $39.2 million in segment pre-tax operating income for the first quarter of 2026. The resulting segment pre-tax operating margin was 39%.
Current wording
The U.K. pawn segment contributed $95.3 million in revenue and $33.6 million in segment pre-tax operating income for the second quarter of 2026. The resulting segment pre-tax operating margin was 35%.
Previous wording
U.K. pawn loan receivables were $215.4 million and inventories were $83.2 million as of March 31, 2026.
Current wording
U.K. pawn loan receivables were $217.4 million and inventories were $85.4 million as of June 30, 2026.
Previous wording
(1) For the three months ended March 31, 2026, includes $14.4 million of OBS Loans.
Current wording
(1) For the three months ended June 30, 2026, includes $13.2 million of OBS Loans.
Previous wording
(2)Does not include $32.9 million of outstanding OBS Loans held by AFF’s bank partner as of March 31, 2026. Combined finance receivables, before allowance for loan losses, and OBS Loans totaled $276.8 million as of March 31, 2026. See the “OBS Loans” section in Note 8 of Notes to Consolidated Financial Statements.
Current wording
(2)Does not include $35.2 million of outstanding OBS Loans held by AFF’s bank partner as of June 30, 2026. Combined finance receivables, before allowance for loan losses, and OBS Loans totaled $271.2 million as of June 30, 2026. See the “OBS Loans” section in Note 9 of Notes to Consolidated Financial Statements.
Previous wording
Leased merchandise, before allowance for lease losses, decreased 8% to $158.5 million as of March 31, 2026 compared to $172.9 million as of March 31, 2025. The decrease was primarily due to decreased gross transaction volumes originated throughout 2025 resulting from the bankruptcy filings in late 2024 for two of AFF’s larger retail furniture merchant partners.
Current wording
Leased merchandise, before allowance for lease losses, decreased 17% to $141.7 million as of June 30, 2026 compared to $170.8 million as of June 30, 2025. The decrease was primarily due to decreased gross transaction volumes as a result of continued weakness in the furniture industry.
Previous wording
The allowance for lease losses decreased 11% to $61.2 million as of March 31, 2026 compared to $69.1 million as of March 31, 2025, which was primarily due to the decrease in leased merchandise balances outstanding. As a percentage of leased merchandise, the allowance was 39% at March 31, 2026 and 40% at March 31, 2025.
Current wording
The allowance for lease losses decreased 18% to $57.1 million as of June 30, 2026 compared to $70.0 million as of June 30, 2025, which was primarily due to the decrease in leased merchandise balances outstanding. As a percentage of leased merchandise, the allowance was 40% at June 30, 2026 and 41% at June 30, 2025.
Previous wording
Leased merchandise income decreased 17% to $130.2 million during the first quarter of 2026 compared to $156.9 million during the first quarter of 2025, which was primarily due to lower average leased merchandise balances outstanding during the first quarter of 2026 compared to the first quarter of 2025.
Current wording
Leased merchandise income decreased 17% to $115.5 million during the second quarter of 2026 compared to $139.8 million during the second quarter of 2025, which was primarily due to lower average leased merchandise balances outstanding during the second quarter of 2026 compared to the second quarter of 2025.
Previous wording
Depreciation of leased merchandise decreased 9% to $81.4 million during the first quarter of 2026 compared to $89.1 million during the first quarter of 2025, primarily due to the decrease in leased merchandise balances outstanding partially offset by increased early buyout activity resulting in an increase in accelerated depreciation during the first quarter of 2026 compared to the first quarter of 2025. As a percentage of leased merchandise income, depreciation of leased merchandise increased to 62% during the first quarter of 2026 from 57% during the first quarter of 2025.
Current wording
Depreciation of leased merchandise decreased 9% to $71.7 million during the second quarter of 2026 compared to $78.5 million during the second quarter of 2025, primarily due to the decrease in leased merchandise balances outstanding partially offset by increased early buyout activity resulting in an increase in accelerated depreciation during the second quarter of 2026 compared to the second quarter of 2025. As a percentage of leased merchandise income, depreciation of leased merchandise increased to 62% during the second quarter of 2026 from 56% during the second quarter of 2025.
Previous wording
Finance receivables, before allowance for loan losses, decreased 7% as of March 31, 2026 compared to March 31, 2025. The decrease was primarily due to a shift in a number of finance receivable transaction volumes to OBS Loans, which are not included on the Company’s balance sheet. As of March 31, 2026, the outstanding amount of OBS Loans originated and held by the Company’s bank partner was $32.9 million. Including the OBS Loans, finance receivables, before allowance for loan losses would have increased 5% as of March 31, 2026 compared to March 31, 2025, which is consistent with the 3% increase in gross transaction volume, which includes OBS Loans originated.
Current wording
Finance receivables, before allowance for loan losses, decreased 15% as of June 30, 2026 compared to June 30, 2025. The decrease was primarily due to a shift in a number of finance receivable transaction volumes to OBS Loans, which are not included on the Company’s balance sheet. As of June 30, 2026, the outstanding amount of OBS Loans originated and held by the Company’s bank partner was $35.2 million. Including the OBS Loans, finance receivables, before allowance for loan losses would have decreased 2% as of June 30, 2026 compared to June 30, 2025, which was primarily due to the 8% decrease in gross transaction volume, which includes OBS Loans originated.
Previous wording
The allowance for loan losses decreased 12% to $104.6 million as of March 31, 2026 compared to $118.3 million as of March 31, 2025, which was primarily due to the decrease in finance receivables outstanding. As a percentage of finance receivables, the allowance was 43% at March 31, 2026 compared to 45% at March 31, 2025.
Current wording
The allowance for loan losses decreased 15% to $105.0 million as of June 30, 2026 compared to $122.9 million as of June 30, 2025, which was primarily due to the decrease in finance receivables outstanding. As a percentage of finance receivables, the allowance was 44% at both June 30, 2026 and 2025.
Previous wording
Interest and fees on retail finance products increased 1% to $74.3 million during the first quarter of 2026 compared to $73.4 million during the first quarter of 2025. The increase was primarily due to higher combined average finance receivable and OBS Loan balances outstanding during the first quarter of 2026 compared to the first quarter of 2025, 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 over the past twelve months, some of which are provided at lower interest rates.
Current wording
Interest and fees on retail finance products decreased 3% to $74.0 million during the second quarter of 2026 compared to $76.1 million during the second quarter of 2025. The decrease was primarily due to a slight decline in portfolio yield primarily as a result of AFF expanding its offerings and merchant relationships in certain services sector verticals over the past twelve months, some of which are provided at lower interest rates, partially offset by higher combined average finance receivable and OBS Loan balances outstanding during the second quarter of 2026 compared to the second quarter of 2025.
Previous wording
Provision for loan losses increased 18% to $42.8 million during the first quarter of 2026 compared to $36.4 million during the first quarter of 2025, which was primarily due to the 3% increase in gross transaction volumes, $7.6 million in provision expense related to the off-balance sheet credit exposure of the OBS Loans, and slightly higher loan loss provisioning rates used during the first quarter of 2026 compared to the first quarter of 2025. As a percentage of gross transaction volume, the provision for loan losses increased to 29% during the first quarter of 2026 from 26% during the first quarter of 2025.
Current wording
Provision for loan losses decreased 4% to $39.9 million during the second quarter of 2026 compared to $41.8 million during the second quarter of 2025, which was primarily due to the 8% decrease in gross transaction volumes, partially offset by slightly higher loan loss provisioning rates used during the second quarter of 2026 compared to the second quarter of 2025. As a percentage of gross transaction volume, the provision for loan losses increased to 29% during the second quarter of 2026 from 28% during the second quarter of 2025.
Previous wording
Operating expenses decreased 2% to $23.8 million during the first quarter of 2026 compared to $24.2 million during the first quarter of 2025. As a percentage of segment revenues, operating expenses increased to 12% during the first quarter of 2026 compared to 11% during the first quarter of 2025.
Current wording
Operating expenses decreased 2% to $23.8 million during the second quarter of 2026 compared to $24.3 million during the second quarter of 2025. As a percentage of segment revenues, operating expenses increased to 13% during the second quarter of 2026 compared to 11% during the second quarter of 2025.
Previous wording
Depreciation and amortization increased 26% to $16.1 million during the first quarter of 2026 compared to $12.8 million in the first quarter of 2025, primarily due to the addition of depreciation and amortization expenses of H&T during the first quarter of 2026.
Current wording
Depreciation and amortization increased 27% to $16.3 million during the second quarter of 2026 compared to $12.8 million in the second quarter of 2025, primarily due to the addition of depreciation and amortization expenses of H&T during the second quarter of 2026.
Previous wording
Interest expense increased 26% to $34.5 million during the first quarter of 2026 compared to $27.5 million in the first quarter of 2025, primarily due to increased outstanding long-term debt balances. See Note 7 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”
Current wording
Interest expense increased 36% to $35.7 million during the second quarter of 2026 compared to $26.3 million in the second quarter of 2025, primarily due to increased outstanding long-term debt balances. See Note 8 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”
Previous wording
The retail POS payment solutions segment pre-tax operating income for the first quarter of 2026 was $25.9 million compared to $52.3 million in the first quarter of 2025. The decrease was primarily the result of the decrease in segment net revenue, partially offset by a decrease in operating expenses.
Current wording
The retail POS payment solutions segment pre-tax operating income for the six months ended June 30, 2026 was $54.7 million compared to $90.2 million in the six months ended June 30, 2025. The decrease was primarily the result of the decrease in segment net revenue, partially offset by a decrease in operating expenses.
Previous wording
Administrative expenses increased 36% to $65.8 million during the first quarter of 2026 compared to $48.5 million in the first quarter of 2025, primarily due to the addition of administrative expenses of H&T, increased variable compensation, general inflationary impacts and a 14% change in the average value of the Mexican peso resulting in higher U.S. dollar translated administrative expenses in Latin America. As a percentage of revenue, administrative expenses were 6% in both the first quarter of 2026 and 2025.
Current wording
Administrative expenses increased 23% to $132.6 million during the six months ended June 30, 2026 compared to $107.8 million during the six months ended June 30, 2025, primarily due to the addition of administrative expenses of H&T, increased variable compensation, general inflationary impacts, and a 13% change in the average value of the Mexican peso resulting in higher U.S. dollar translated administrative expenses in Latin America, partially offset by the $11.0 million CFPB litigation settlement accrued for in the second quarter of 2025. As a percentage of revenue, administrative expenses were 6% during both the six months ended June 30, 2026 and 2025.
Previous wording
During the three months ended March 31, 2026, the Company opened four new stores in Latin America, three new stores in the U.K. and acquired one pawn store in the U.S. The Company evaluates potential acquisitions based upon growth potential, purchase price, available liquidity, strategic fit and quality of management personnel, among other factors. Future store openings and acquisitions are subject to the Company’s ability to identify acquisition opportunities and new location sites in markets with attractive demographics and favorable regulatory environments. The Company currently has no other contractual commitments for materially significant future acquisitions, business combinations or capital commitments.
Current wording
During the six months ended June 30, 2026, the Company opened ten new stores in Latin America, nine new stores in the U.K., one new store in the U.S. and acquired eight pawn stores in the U.S. The Company evaluates potential acquisitions based upon growth potential, purchase price, available liquidity, strategic fit and quality of management personnel, among other factors. Future store openings and acquisitions are subject to the Company’s ability to identify acquisition opportunities and new location sites in markets with attractive demographics and favorable regulatory environments.
Previous wording
The Company also incurred, and expects to incur, additional costs, expenses and fees for professional services, financing and other transaction and integration costs in connection with the H&T Acquisition. The substantial majority of these costs will be non-recurring expenses relating to the H&T Acquisition. The Company financed the H&T Acquisition and other costs with available funds under the Credit Facility.
Current wording
The Company has also incurred, and expects to incur additional costs, expenses and fees for professional services, financing and other transaction and integration costs in connection with the Ramsdens Acquisition and the H&T Acquisition. The substantial majority of these costs will be non-recurring expenses. The Company plans to finance the Ramsdens Acquisition and other transaction and integration costs with available funds under the Credit Facility and believes it has adequate capacity to borrow the necessary funds under the most restrictive covenants under its credit agreements.
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged current paragraphs (16)
Current report — wording carried from elsewhere
The retail POS payment solutions segment pre-tax operating income for the second quarter of 2026 was $28.7 million compared to $37.9 million in the second quarter of 2025. The decrease was primarily the result of the decrease in segment net revenue.
Current report — wording carried from elsewhere
The following tables and related discussion set forth key operating and financial data for the Company’s operations by reporting segment for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 (in thousands).
Current report — wording carried from elsewhere
Operating expenses of the three pawn segments include salary and benefit expenses of store-level employees, occupancy costs, bank and other treasury fees, security, insurance, utilities, supplies and other costs incurred by the pawn stores. Operating expenses of the AFF segment include salary and benefit expenses of operations-focused departments, payment processing charges, data analytics and decisioning costs, information technology costs, advertising costs and other operational costs incurred by AFF.
Current report — wording carried from elsewhere
Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, loss (gain) on foreign exchange, merger and acquisition expenses, and other income, net, are presented on a consolidated basis and are not allocated between the segments. Intersegment transactions related to AFF’s LTO payment solution product offered in U.S. pawn stores are eliminated from consolidated totals.
Current report — wording carried from elsewhere
U.S. operating expenses increased 9% to $286.2 million during the six months ended June 30, 2026 compared to $262.8 million during the six months ended June 30, 2025 while same-store operating expenses increased 7% compared with the prior-year period. The increase in operating expenses was primarily due to increased labor and variable compensation expenses.
Current report — wording carried from elsewhere
Latin America segment pre-tax operating income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 benefited from a 13% favorable change in the average value of the 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 report — wording carried from elsewhere
The Company completed the H&T Acquisition on August 14, 2025, and the results of operations of H&T have been consolidated since the acquisition date.
Current report — wording carried from elsewhere
The following table details certain retail POS payment solutions portfolio metrics for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025:
Current report — wording carried from elsewhere
(1)Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
Current report — wording carried from elsewhere
(2)Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
Current report — wording carried from elsewhere
(3)Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).
Current report — wording carried from elsewhere
Depreciation of leased merchandise decreased 9% to $153.1 million during the six months ended June 30, 2026 compared to $167.7 million during the six months ended June 30, 2025, primarily due to the decrease in leased merchandise balances outstanding, partially offset by increased early buyout activity resulting in an increase in accelerated depreciation during the six months ended June 30, 2026 compared to the six months ended June 30, 2025. As a percentage of leased merchandise income, depreciation of leased merchandise increased to 62% during the six months ended June 30, 2026 from 57% during the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Interest and fees on retail finance products decreased 1% to $148.3 million during the six months ended June 30, 2026 compared to $149.5 million for the six months ended June 30, 2025. The decrease was primarily due to a slight decline in portfolio yield primarily as a result of AFF expanding its offerings and merchant relationships in certain services sector verticals over the past twelve months, some of which are provided at lower interest rates, partially offset by higher combined average finance receivable and OBS Loan balances outstanding during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current report — wording carried from elsewhere
Interest expense increased 31% to $70.2 million during the six months ended June 30, 2026 compared to $53.8 million for the six months ended June 30, 2025, primarily due to increased outstanding long-term debt balances. See Note 8 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”
Current report — wording carried from elsewhere
Other than the proposed Ramsdens Acquisition, the Company currently has no other contractual commitments for materially significant future acquisitions, business combinations or capital commitments.
Current report — wording carried from elsewhere
During July 2026, the Company repurchased a total of 107,000 shares of common stock at an aggregate cost of $23.4 million and an average cost per share of $218.04, which completed the share repurchase program authorized in October 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
the Company’s future ability to fully borrow on its credit facilities under current leverage covenants. Regulatory developments affecting the Company’s operations may also impact profitability and liquidity. See “Governmental Regulation.”