FirstCash (FCFS) Q1 2025 earnings summary

Executive summary

• Net income rose 36% year-over-year to $83.6 million for Q1 2025, with EPS of $1.87, up from $1.35; adjusted net income was $92.8 million and adjusted EPS was $2.07.

• Record first quarter results driven by strong pawn operations and robust margins in the AFF POS payment segment.

• Store base expanded to 3,023 locations, with 12 pawn stores added in Q1 and 19% growth in active merchant partners for AFF.

• Board declared a $0.38 per share quarterly dividend and repurchased $59.6 million in shares during Q1.

• Free cash flow for the quarter was $113.0 million, up from $106.4 million a year ago.

Financial highlights

• Q1 revenue was $836.4 million, flat in USD but up 4% on a constant currency basis year-over-year.

• U.S. pawn segment revenue grew 12% year-over-year, with pre-tax operating income up 17% to $113.1 million.

• Latin America pawn revenue fell 6% (up 10% constant currency); pre-tax operating income was flat at $31.4 million.

• Retail POS payment solutions revenue declined 12%, but pre-tax operating income rose 58% to $52.3 million due to cost reductions.

• Cash flow from operations was $126.6 million, and working capital stood at $1.02 billion.

Outlook and guidance

• Management expects continued expansion of pawn operations through new store openings and acquisitions in 2025.

• Pawn operations expected to contribute over 80% of segment pre-tax income; further store growth anticipated.

• U.S. pawn same-store loan growth projected at 9–11% for 2025; retail sales to grow mid-single digits with 41–42% margins.

• Latin America pawn fee growth expected at 10–12% (local currency), but flat to slightly down in USD due to FX headwinds.

• AFF origination volumes (excluding bankrupt partners) expected to rise 20–25% over 2024; full-year AFF segment income to increase mid-single digits.