FirstCash Holdings, Inc.
For the period ended Sep 30, 2026. Filed Oct 26, 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.
Sep 30, 2026 · Filed Oct 26, 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 2026-06-30; filed 2026-07-27.
0000840489-26-000085
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-26.
0000840489-26-000099
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 193 previous paragraphs and 204 current paragraphs.
99 unchanged; 74 reworded; 29 added; 19 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 20 previous and 22 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 (29)
Current report
(1) Percentage of inventory aged greater than one year is 1.6% for U.S. pawn and 3.3% for total pawn excluding certain recently acquired U.S. stores which have historically carried significantly higher levels of aged jewelry inventory.
Current report
U.S. wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 75% to $79.8 million during the third quarter of 2026 compared to $45.6 million during the third quarter of 2025. The scrap gross profit margin in the U.S. was 15% 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 report
On August 14, 2025, the Company completed the H&T Acquisition. The results of operations of the U.K. pawn segment for the three months ended September 30, 2026 includes H&T’s results of operations for three full months while the comparable prior-year period includes H&T’s results of operations for the period August 14, 2025 to September 30, 2025 (“H&T PY Partial Period”), affecting comparability.
Current report
U.K. segment pre-tax operating income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was impacted by a 1% unfavorable change in the average value of the U.S. dollar compared to the British pound sterling. The translated value of U.K. earning assets as of September 30, 2026 compared to September 30, 2025 was also impacted by a 1% unfavorable change in the end-of-period U.S. dollar compared to the British pound sterling. 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
U.K. retail merchandise sales increased 60% (61% on a constant currency basis) to $22.5 million during the third quarter of 2026 compared to $14.1 million for the third quarter of 2025. The increase was primarily due to the H&T PY Partial Period. The gross profit margin on retail merchandise sales was 33% during the third quarter of 2026 compared to 24% during the third quarter of 2025. The increase in the retail gross margin was primarily due to increased gold prices compared to a year ago.
Current report
U.K. wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 94% to $45.0 million during the third quarter of 2026 compared to $23.3 million during the third quarter of 2025. The increase was primarily due to the H&T PY Partial Period. The scrap gross profit margin in the U.K. was 27% for the third quarter of 2026 and 37% for the third quarter of 2025. The decrease in the scrap gross margin was primarily due to the increased cost of inventories acquired through forfeiture or purchase over the past several quarters consistent with gold prices over that period.
Current report
U.K. inventories increased 62% (64% on a constant currency basis) to $106.6 million at September 30, 2026 compared to $65.7 million at September 30, 2025. The increase in inventories was primarily due to increased jewelry counts held per store and increased cost of inventories acquired through forfeiture or purchase over the past several quarters, consistent with gold prices over that period. Inventories aged greater than one year in the U.K. were 11.6% at September 30, 2026 compared to 7.9% at September 30, 2025.
Current report
U.K. pawn loan fees increased 88% (89% on a constant currency basis), totaling $28.2 million during the third quarter of 2026 compared to $15.0 million for the third quarter of 2025. The increase was primarily due to the H&T PY Partial Period.
Current report
Operating expenses increased 101% (also 101% on a constant currency basis) to $20.5 million during the third quarter of 2026 compared to $10.2 million during the third quarter of 2025. The increase was primarily due to the H&T PY Partial Period.
Current report
The segment pre-tax operating income for the third quarter of 2026 was $29.2 million, which generated a pre-tax segment operating margin of 29% compared to $17.9 million and 33% in the prior year, respectively. The increase in the segment pre-tax operating income was primarily due to the H&T PY Partial Period.
Current report
(1) For the three months ended September 30, 2026 and 2025, includes $22.9 million and $10.4 million of OBS Loans, respectively.
Current report
Corporate Expenses
Current report
Merger and acquisition expenses decreased 60% to $3.8 million during the third quarter of 2026 compared to $9.5 million in the third quarter of 2025, primarily due to significant one-time expenses incurred with the H&T Acquisition during the third quarter of 2025.
Current report
Operating Results for the Nine Months Ended September 30, 2026 Compared to the Nine Months Ended September 30, 2025
Current report
U.S. wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 85% to $199.5 million during the nine months ended September 30, 2026 compared to $107.8 million during the nine months ended September 30, 2025. The scrap gross profit margin in the U.S. was 17% compared to the prior-year margin of 15%. 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
On August 14, 2025, the Company completed the H&T Acquisition. The results of operations of the U.K. pawn segment for the nine months ended September 30, 2026 includes H&T’s results of operations for nine full months while the comparable prior-year period includes H&T’s results of operations for the H&T PY Partial Period, affecting comparability.
Current report
U.K. segment pre-tax operating income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 benefited from a 2% favorable change in the average value of the U.S. dollar compared to the British pound sterling. 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
U.K. retail merchandise sales increased 368% (357% on a constant currency basis) to $65.8 million during the nine months ended September 30, 2026 compared to $14.1 million for the nine months ended September 30, 2025. The increase was primarily due to the H&T PY Partial Period. The gross profit margin on retail merchandise sales was 30% during the nine months ended September 30, 2026 compared to 24% during the nine months ended September 30, 2025. The increase in the retail gross margin was primarily due to increased gold prices compared to a year ago.
Current report
U.K. wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 464% to $131.2 million during the nine months ended September 30, 2026 compared to $23.3 million during the nine months ended September 30, 2025. The increase was primarily due to the H&T PY Partial Period. The scrap gross profit margin in the U.K. was 38% for the nine months ended September 30, 2026 and 37% for the nine months ended September 30, 2025.
Current report
U.K. pawn loan fees increased 494% (481% on a constant currency basis), totaling $89.3 million during the nine months ended September 30, 2026 compared to $15.0 million for the nine months ended September 30, 2025. The increase was primarily due to the H&T PY Partial Period.
Current report
Operating expenses increased 496% (483% on a constant currency basis) to $61.0 million during the nine months ended September 30, 2026 compared to $10.2 million during the nine months ended September 30, 2025. The increase was primarily due to the H&T PY Partial Period.
Current report
The segment pre-tax operating income for the nine months ended September 30, 2026 was $102.0 million, which generated a pre-tax segment operating margin of 34% compared to $17.9 million and 33% in the prior year, respectively. The increase in the segment pre-tax operating income was primarily due to the H&T PY Partial Period.
Current report
(1) For the nine months ended September 30, 2026 and 2025, includes $50.5 million and $10.4 million of OBS Loans, respectively.
Current report
Corporate Expenses
Current report
Merger and acquisition expenses decreased 14% to $11.0 million during the nine months ended September 30, 2026 compared to $12.7 million in the nine months ended September 30, 2025, primarily due to significant one-time expenses incurred with the H&T Acquisition during the nine months ended September 30, 2025.
Current report
Table of Contents
Current report
Table of Contents
Current report
The following table presents operating results for the U.K. pawn segment using the exchange rate from the respective H&T PY Partial Period (in thousands):
Current report
Table of Contents
Removed paragraphs (19)
Previous report
The following tables detail earning assets, which consist of pawn loans and inventories as well as other earning asset metrics of the Company’s pawn segments, as of June 30, 2026 compared to June 30, 2025 (dollars in thousands, except as otherwise noted):
Previous report
Merchandise Sales Operations
Previous report
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 report
Merchandise Sales Operations
Previous report
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.
Previous report
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 report
U.K. pawn loan receivables were $217.4 million and inventories were $85.4 million as of June 30, 2026.
Previous report
(1) For the three months ended June 30, 2026, includes $13.2 million of OBS Loans.
Previous report
Corporate Expenses and Taxes
Previous 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.
Previous report
Operating Results for the Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Previous report
Retail Merchandise Sales Operations
Previous 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.
Previous report
Retail Merchandise Sales Operations
Previous report
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.
Previous 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%.
Previous report
(1) For the six months ended June 30, 2026, includes $27.7 million of OBS Loans.
Previous report
Corporate Expenses and Taxes
Previous 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.
Reworded paragraphs (74)
Previous 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.
Current wording
The Company completed the acquisition of H&T, the leading pawn operator in the U.K., on August 14, 2025, the date the balance sheet and operating results of H&T, as reported in the U.K. pawn segment, were included in the Company’s consolidated financial results.
Previous 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.
Current wording
As of September 30, 2026, the Company operated 3,352 pawn store locations composed of 1,215 stores in 29 U.S. states and the District of Columbia, 1,732 stores in 32 states in Mexico, 77 stores in Guatemala, 18 stores in El Salvador, 12 stores in Colombia and 298 stores in the U.K.
Previous wording
The following tables detail pawn store count activity for the three and six months ended June 30, 2026:
Current wording
The following tables detail pawn store count activity for the three and nine months ended September 30, 2026:
Previous 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.
Current wording
As of September 30, 2026, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 17,000 active retail merchant partner locations located in all 50 U.S. states and the District of Columbia, up from approximately 15,800 locations at September 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 six months ended June 30, 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 nine months ended September 30, 2026.
Previous 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.
Current wording
Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, (gain) loss 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 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.
Current wording
U.S. retail merchandise sales increased 10% to $278.9 million during the third quarter of 2026 compared to $253.0 million for the third quarter of 2025. Same-store retail sales increased 7% in the third quarter of 2026 compared to the third 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 third quarter of 2026 compared to the third quarter of 2025. The gross profit margin on retail merchandise sales in the U.S. was 42% during the third quarter of 2026 compared to 43% during the third quarter of 2025.
Previous 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.
Current wording
U.S. inventories increased 26% to $336.2 million as of September 30, 2026 compared to $266.5 million as of September 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 2.9% at September 30, 2026 compared to 1.9% at September 30, 2025. Excluding certain recently acquired U.S. stores which have historically carried significantly higher levels of aged jewelry inventory, aged inventories greater than one year were 1.6% at September 30, 2026.
Previous 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.
Current wording
U.S. pawn loan receivables increased 14% to $487.2 million as of September 30, 2026 compared to $426.3 million as of September 30, 2025. On a same-store basis, pawn loan receivables increased 12% as of September 30, 2026 compared to September 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 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.
Current wording
U.S. pawn loan fees increased 12% to $155.9 million during the third quarter of 2026 compared to $138.9 million for the third quarter of 2025. Same-store pawn loan fees increased 11% in the third quarter of 2026 compared to the third 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 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.
Current wording
U.S. operating expenses increased 7% to $142.4 million during the third quarter of 2026 compared to $133.0 million during the third 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 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.
Current wording
The U.S. segment pre-tax operating income for the third quarter of 2026 was $133.3 million, which generated a pre-tax segment operating margin of 26% compared to $112.0 million and 26% 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
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.
Current wording
Latin America segment pre-tax operating income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 benefited from an 8% favorable change in the average value of the Mexican peso compared to the U.S. dollar. The translated value of Latin America segment earning assets as of September 30, 2026 compared to September 30, 2025 also benefited from a 3% favorable change in the end-of-period 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.
Previous 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.
Current wording
Latin America retail merchandise sales increased 24% (16% on a constant currency basis) to $179.9 million during the third quarter of 2026 compared to $144.6 million for the third quarter of 2025. Same-store retail sales increased 25% (16% on a constant currency basis) during the third quarter of 2026 compared to the third 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 third quarter of 2026 compared to the third quarter of 2025. The gross profit margin on retail merchandise sales was 35% during the third quarter of 2026 compared to 36% during the third quarter of 2025.
Previous 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.
Current wording
Latin America wholesale scrap jewelry revenue, consisting primarily of gold sales, increased 167% to $47.7 million during the third quarter of 2026 compared to $17.8 million during the third quarter of 2025. The scrap gross profit margin in Latin America was 16% for both the third 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 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.
Current wording
Latin America inventories increased 25% (22% on a constant currency basis) to $155.7 million at September 30, 2026 compared to $124.1 million at September 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 1.3% at September 30, 2026 compared to 1.4% at September 30, 2025.
Previous 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.
Current wording
Latin America pawn loan receivables increased 19% (15% on a constant currency basis) to $205.5 million as of September 30, 2026 compared to $173.2 million as of September 30, 2025. On a same-store basis, pawn loan receivables also increased 19% (15% on a constant currency basis) as of September 30, 2026 compared to September 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 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.
Current wording
Latin America pawn loan fees increased 24% (15% on a constant currency basis), totaling $83.1 million during the third quarter of 2026 compared to $67.2 million for the third quarter of 2025. Same-store pawn fees also increased 24% (15% on a constant currency basis) in the third quarter of 2026 compared to the third 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 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.
Current wording
Operating expenses increased 20% (12% on a constant currency basis) to $84.3 million during the third quarter of 2026 compared to $70.3 million during the third quarter of 2025. Same-store operating expenses also increased 20% (11% 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 wages and benefits.
Previous 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.
Current wording
The segment pre-tax operating income for the third quarter of 2026 was $64.6 million, which generated a pre-tax segment operating margin of 21% compared to $47.0 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
(1)Includes less than $0.1 million and $0.2 million of intersegment transactions as of June 30, 2026 and 2025, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation.
Current wording
(1)Includes $0.1 million and $0.2 million of intersegment transactions as of September 30, 2026 and 2025, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation.
Previous 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.
Current wording
(2)Does not include $45.5 million and $9.7 million of outstanding OBS Loans held by AFF’s bank partner as of September 30, 2026 and 2025, respectively. Combined finance receivables, before allowance for loan losses, and OBS Loans totaled $268.4 million and $278.5 million as of September 30, 2026 and 2025, respectively. See the “OBS Loans” section in Note 9 of Notes to Consolidated Financial Statements.
Previous 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.
Current wording
Leased merchandise, before allowance for lease losses, decreased 25% to $122.8 million as of September 30, 2026 compared to $164.2 million as of September 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 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.
Current wording
The allowance for lease losses decreased 25% to $48.0 million as of September 30, 2026 compared to $64.3 million as of September 30, 2025, which was primarily due to the decrease in leased merchandise balances outstanding. As a percentage of leased merchandise, the allowance was 39% at both September 30, 2026 and 2025.
Previous 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.
Current wording
Leased merchandise income decreased 22% to $103.1 million during the third quarter of 2026 compared to $132.5 million during the third quarter of 2025, which was primarily due to lower average leased merchandise balances outstanding during the third quarter of 2026 compared to the third quarter of 2025.
Previous 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.
Current wording
Depreciation of leased merchandise decreased 17% to $63.3 million during the third quarter of 2026 compared to $76.3 million during the third 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 third quarter of 2026 compared to the third quarter of 2025. As a percentage of leased merchandise income, depreciation of leased merchandise increased to 61% during the third quarter of 2026 from 58% during the third quarter of 2025.
Previous wording
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 wording
Provision for lease losses decreased 39% to $17.0 million during the third quarter of 2026 compared to $28.0 million during the third quarter of 2025, which was primarily due to the 31% decrease in gross transaction volumes and slightly lower lease loss provisioning rates used during the third quarter of 2026 compared to the third quarter of 2025. As a percentage of gross transaction volume, the provision for lease losses decreased to 24% during the third quarter of 2026 compared to 27% during the third quarter of 2025.
Previous 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.
Current wording
Finance receivables, before allowance for loan losses, decreased 17% as of September 30, 2026 compared to September 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 September 30, 2026, the outstanding amount of OBS Loans originated and held by the Company’s bank partner was $45.5 million. Including the OBS Loans, finance receivables, before allowance for loan losses would have decreased 4% as of September 30, 2026 compared to September 30, 2025, which was primarily due to the 3% decrease in gross transaction volume, which includes OBS Loans originated.
Previous 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.
Current wording
The allowance for loan losses decreased 15% to $98.8 million as of September 30, 2026 compared to $115.7 million as of September 30, 2025, which was primarily due to the decrease in finance receivables outstanding. As a percentage of finance receivables, the allowance was 44% at September 30, 2026 compared to 43% at September 30, 2025.
Previous 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.
Current wording
Interest and fees on retail finance products decreased 10% to $73.7 million during the third quarter of 2026 compared to $81.7 million during the third quarter of 2025. The decrease was primarily due to the decrease in combined finance receivable and OBS Loan balances outstanding and 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, during the third quarter of 2026 compared to the third quarter of 2025.
Previous 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.
Current wording
Provision for loan losses increased 1% to $40.8 million during the third quarter of 2026 compared to $40.3 million during the third quarter of 2025, which was primarily due to slightly higher loan loss provisioning rates used during the third quarter of 2026 compared to the third quarter of 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 third quarter of 2026 from 28% during the third quarter of 2025.
Previous 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.
Current wording
Operating expenses decreased 5% to $21.8 million during the third quarter of 2026 compared to $23.0 million during the third quarter of 2025, which was primarily due to the decrease in gross transaction volumes. As a percentage of segment revenues, operating expenses increased to 12% during the third quarter of 2026 compared to 11% during the third quarter of 2025.
Previous wording
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 wording
The retail POS payment solutions segment pre-tax operating income for the third quarter of 2026 was $33.2 million compared to $46.0 million in the third quarter of 2025. The decrease was primarily the result of the decrease in segment net revenue.
Previous wording
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 wording
Administrative expenses increased 13% to $66.7 million during the third quarter of 2026 compared to $58.8 million in the third quarter of 2025, primarily due to a full quarter of administrative expenses of H&T, increased variable compensation, general inflationary impacts and an 8% 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 third quarter of 2026 and 2025.
Previous 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.
Current wording
Depreciation and amortization increased 9% to $16.0 million during the third quarter of 2026 compared to $14.7 million in the third quarter of 2025, primarily due to a full quarter of depreciation and amortization expenses of H&T during the third quarter of 2026.
Previous 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.”
Current wording
Interest expense increased 17% to $37.7 million during the third quarter of 2026 compared to $32.2 million in the third 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 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 wording
The following tables and related discussion set forth key operating and financial data for the Company’s operations by reporting segment for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 (in thousands).
Previous 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.
Current wording
Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, (gain) loss 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 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 wording
U.S. retail merchandise sales increased 11% to $838.4 million during the nine months ended September 30, 2026 compared to $754.1 million for the nine months ended September 30, 2025. Same-store retail sales increased 8% during the nine months ended September 30, 2026 compared to the nine months ended September 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 nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The gross profit margin on retail merchandise sales in the U.S. was 43% during the nine months ended September 30, 2026 compared to 42% during the nine months ended September 30, 2025.
Previous wording
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 wording
U.S. pawn loan fees increased 14% to $463.8 million during the nine months ended September 30, 2026 compared to $407.8 million for the nine months ended September 30, 2025. Same-store pawn loan fees increased 13% during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase in total and same-store pawn loan fees was primarily due to the higher pawn receivable balances.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
U.K. pawn loan receivables increased 14% (15% on a constant currency basis) to $214.9 million as of September 30, 2026 compared to $188.6 million as of September 30, 2025. On a same-store basis, pawn loan receivables increased 13% (14% on a constant currency basis) as of September 30, 2026 compared to September 30, 2025. The Company believes the increase in pawn loan 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 report — wording carried from elsewhere
The following table presents earning assets for the U.K. pawn segment using the exchange rate from the prior-year comparable period (in thousands):
Rearranged previous paragraphs (1)
Previous report — wording carried 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.