FirstCash Holdings, Inc. (NASDAQ: FCFS)

FirstCash Holdings, Inc. is a leading operator of pawn stores and a provider of retail point-of-sale payment solutions in the United States, Latin America, and the United Kingdom. The company’s primary business involves offering non-recourse pawn loans and buying and selling pre-owned consumer merchandise such as jewelry, electronics, tools, appliances, sporting goods, and musical instruments through its pawn shop locations. In addition, FirstCash operates a retail POS payment solutions business through its subsidiary American First Finance, LLC (AFF), which delivers lease-to-own and retail financing products to merchant partners and their customers.

FirstCash generates revenue through two main business lines: pawn operations and retail POS payment solutions. Pawn revenue comes from pawn loan fees and service charges, as well as retail sales of forfeited collateral and over-the-counter merchandise. Pawn loan fees accounted for 46% of consolidated net revenue in 2025, while gross profit from pawn merchandise sales contributed 39%. The retail POS payment solutions segment, operated by AFF, provided the remaining 15% of consolidated net revenue in 2025 through fees earned on lease-to-own agreements, retail installment sales agreements, and bank-originated installment loans facilitated for merchant partners.

The company operates through the following segments: U. S. pawn, Latin America pawn, U. K. pawn, and retail POS payment solutions.

• U. S. pawn: This segment consists of pawn operations in 29 U. S. states and the District of Columbia. The average pawn loan amount in the U. S. was $312 per transaction as of December 31, 2025. Pawn loan fees in this segment are calculated as a percentage of the loan amount and typically range from 4% to 25% per month, depending on state regulations. The segment generates revenue from both lending activities and retail sales of pre-owned merchandise acquired through collateral forfeiture and direct purchases.

• Latin America pawn: This segment includes pawn operations in Mexico, Guatemala, El Salvador, and Colombia. The average pawn loan amount in Latin America was $112 per transaction as of December 31, 2025. The company operates larger format, full-service pawn stores in this region that buy, sell, and lend on a wide array of merchandise, differentiating from competitors that focus primarily on gold jewelry or small electronics. Pawn loan fees in this segment are similarly structured as a percentage of the loan amount and vary by country based on local laws.

• U. K. pawn: This segment consists of pawn operations in England, Scotland, and Wales, including the 286 store locations acquired from H&T on August 14, 2025. The average pawn loan amount in the U. K. was $825 per transaction as of December 31, 2025. Pawn loans in the U. K. have a statutory six-month term and a two-month grace period under federal regulations, and the segment primarily focuses on lending collateralized by gold jewelry. The company believes there is opportunity for further expansion in the U. K. and other European countries due to the fragmented nature of the pawn industry.

• Retail POS payment solutions: This segment consists of the operations of American First Finance, LLC (AFF), which offers products in the U. S. AFF provides lease-to-own (LTO), retail installment sales agreement (RISA), and bank-originated installment loan solutions to merchant partners. LTO transactions involve AFF purchasing tangible personal property from merchants and leasing it to customers under consumer rental purchase agreements, with terms typically ranging from six to 24 months. RISA and bank-originated installment loan products are generally secured by the financed tangible personal property and have similar contractual terms. AFF’s proprietary decisioning platform uses algorithms to evaluate applicants using external and internal data points beyond traditional credit scores.

FirstCash is the largest public or private operator of large format, full-service pawn stores in the United States, Mexico, and the United Kingdom. The pawn industry remains highly fragmented, with an estimated 12,000 to 14,000 pawnshops in the U. S., 8,000 to 9,000 in Mexico, and slightly under 1,000 in the U. K. The company competes with other pawnshop operators, payday lenders, rent-to-own companies, and traditional and online retailers. Its competitive advantages include store location, customer service, the ability to lend competitive amounts on pawn loans, and the resale of forfeited collateral through its retail merchandise function.

FirstCash serves unbanked, under-banked, and credit-constrained customers who seek small, short-term cash needs or wish to purchase pre-owned merchandise. Its pawn store customers typically include value-conscious consumers who are not effectively served by traditional lenders such as banks, credit unions, or credit card providers. Through its AFF subsidiary, the company serves consumers who may not qualify for prime or near-prime retail payment options and who use its lease-to-own and financing products to purchase goods and services such as automotive, furniture, elective medical, and jewelry items from merchant partners.