FirstCash (FCFS) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income rose 9% to $49.1 million, with revenue up 11% to $831.0 million, driven by U.S. and Latin America pawn operations and retail POS payment solutions.

• Adjusted net income for Q2 2024 was $61.9 million, or $1.37 per diluted share, compared to $55.6 million, or $1.22 per share, in Q2 2023.

• U.S. pawn segment pre-tax operating income rose 25% to $91 million, with strong results in Latin America and AFF segments.

• Added 47 pawn locations in Q2 and 67 year-to-date, expanding to 3,018 pawn stores globally as of June 30, 2024.

• Increased quarterly cash dividend by 9% to $0.38 per share and repurchased $85 million in stock in the first half of 2024.

Financial highlights

• Q2 2024 revenue increased 11% year-over-year to $831.0 million; net income rose 9% to $49.1 million.

• Adjusted EBITDA for Q2 2024 was $122 million, up 13% year-over-year.

• Six-month net income was $110.4 million, up 19% from $92.6 million in the prior year period.

• Free cash flow for the first half of 2024 was $127.6 million, up from $120.4 million in 2023.

• Diluted EPS for Q2 was $1.08 (GAAP), up 9%, and $1.37 (adjusted), up 12% year-over-year.

Outlook and guidance

• Management expects to add 90–100 new pawn locations in 2024 through openings and acquisitions.

• Expects continued year-over-year growth in consolidated revenue and earnings for 2024, driven by asset growth and new stores.

• Latin America pawn fee growth anticipated in mid-single digits, with retail margins expected at 35–36%.

• AFF segment gross transaction volumes for 2024 projected to exceed 2023, with flat to slightly lower gross revenues in the second half.

• Net interest expense is projected to increase in 2024 due to higher borrowings and floating rates.