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What changed in FirstCash Holdings, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of FirstCash Holdings, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+412 added−383 removedSource: 10-K (2026-02-09) vs 10-K (2025-02-03)

Top changes in FirstCash Holdings, Inc.'s 2025 10-K

412 paragraphs added · 383 removed · 294 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

86 edited+45 added−24 removed134 unchanged
Biggest changeMexico (State of Mexico) 213 North Carolina 74 Veracruz 199 Ohio 56 Puebla 115 Tennessee 49 Tamaulipas 101 Arizona 47 Nuevo Leon 100 Georgia 47 Jalisco 82 Illinois 36 Baja California 81 Nevada 30 Estado de Ciudad de Mexico (State of Mexico City) 73 Louisiana 29 Chiapas 68 Washington 29 Coahuila 62 Maryland 28 Oaxaca 58 South Carolina 27 Hidalgo 57 Alabama 24 Guanajuato 53 Colorado 24 Sonora 42 Kentucky 23 Tabasco 41 Indiana 22 Chihuahua 40 Missouri 21 Sinaloa 31 Oklahoma 19 Quintana Roo 30 Virginia 13 Michoacan 30 Alaska 6 San Luis Potosi 29 Oregon 5 Durango 29 Utah 5 Morelos 27 District of Columbia 3 Queretaro 22 North Dakota 3 Aguascalientes 19 South Dakota 3 Tlaxcala 19 Mississippi 2 Yucatan 19 Iowa 1 Campeche 18 Nebraska 1 Zacatecas 18 Wyoming 1 Baja California Sur 14 U.S. total 1,200 Guerrero 14 Colima 11 Nayarit 10 1,725 Guatemala 72 El Salvador 17 Colombia 12 Latin America total 1,826 6 Table of Contents Pawn Operations Competitive Environment The Company encounters significant competition in connection with all aspects of its pawn operations.
Biggest changeMexico (State of Mexico) 217 Scotland 26 North Carolina 68 Veracruz 194 Wales 7 Ohio 56 Puebla 114 U.K. total 286 Arizona 49 Nuevo Leon 104 Tennessee 49 Tamaulipas 103 Georgia 46 Jalisco 82 Illinois 39 Baja California 80 Nevada 33 Estado de Ciudad de Mexico (State of Mexico City) 75 Washington 30 Chiapas 69 Louisiana 29 Coahuila 64 Maryland 28 Hidalgo 58 South Carolina 27 Oaxaca 57 Indiana 23 Guanajuato 52 Kentucky 23 Sonora 42 Alabama 22 Tabasco 40 Colorado 22 Chihuahua 40 Missouri 20 Michoacan 31 Oklahoma 19 Quintana Roo 31 Virginia 13 San Luis Potosi 30 Nebraska 7 Durango 29 Alaska 6 Sinaloa 29 Oregon 5 Morelos 24 Utah 5 Queretaro 23 North Dakota 3 Aguascalientes 19 South Dakota 3 Tlaxcala 19 District of Columbia 2 Yucatan 19 Mississippi 2 Campeche 18 Iowa 1 Zacatecas 18 Wyoming 1 Baja California Sur 14 U.S. total 1,207 Guerrero 14 Colima 13 Nayarit 10 1,732 Guatemala 75 El Salvador 18 Colombia 12 Latin America total 1,837 6 Table of Contents Pawn Operations Competitive Environment The Company encounters significant competition in connection with all aspects of its pawn operations.
In order to increase retention of its employees, the Company is focused on providing competitive and attractive wages and benefits (which includes a store-level profit-sharing program for its pawn store employees) and extensive training and advancement opportunities as well as fostering safe, healthy and secure workplace.
In order to increase retention of its employees, the Company is focused on providing competitive and attractive wages and benefits (which includes a store-level profit-sharing program for its pawn store employees) and extensive training and advancement opportunities as well as fostering a safe, healthy and secure workplace.
The Company and its Bank partner may incur material expenses and encounter material difficulties in complying with the CCPA and related regulations. Future regulations, further amendments to the CCPA, or authoritative interpretations thereof could increase the cost and complexity of compliance, or could require the Company and the partner Bank to modify their operations and increase their respective operating expenses.
The Company and its bank partner may incur material expenses and encounter material difficulties in complying with the CCPA and related regulations. Future regulations, further amendments to the CCPA, or authoritative interpretations thereof could increase the cost and complexity of compliance, or could require the Company and its bank partner to modify their operations and increase their respective operating expenses.
Merchandise acquired by the Company through forfeited pawn loan collateral is carried in inventory at the amount of the related pawn loan, exclusive of any accrued service fees, and purchased inventory is carried at cost. Retail customers can use cash and debit or credit cards for retail purchases or can purchase merchandise on an interest-free “layaway” plan.
Merchandise acquired by the Company through forfeited pawn loan collateral is carried in inventory at the amount of the related pawn loan, exclusive of any accrued service fees, and purchased inventory is carried at cost. Retail customers can use cash and debit or credit cards for retail purchases or can generally purchase merchandise on an interest-free “layaway” plan.
The following is a description of the three retail POS payment products offered by AFF: • LTO — LTO transactions involve the purchase by AFF of tangible personal property directly from the merchant partner and a subsequent lease of that merchandise by AFF to the customer through a consumer rental purchase agreement under applicable state laws.
The following is a description of the retail POS payment products offered by AFF: • LTO — LTO transactions involve the purchase by AFF of tangible personal property directly from the merchant partner and a subsequent lease of that merchandise by AFF to the customer through a consumer rental purchase agreement under applicable state laws.
Including the Company, there are two publicly-held, U.S.-based pawnshop operators, both of which have pawn operations in the U.S., Mexico, Guatemala and El Salvador. The Company is the largest public or private operator of large format, full-service pawn stores in the U.S. and Mexico.
Including the Company, there are two publicly-held, U.S.-based pawnshop operators, both of which have pawn operations in the U.S., Mexico, Guatemala and El Salvador. The Company is the largest public or private operator of large format, full-service pawn stores in the U.S., Mexico and the U.K.
State and local agencies, including local and state police officials, often have unlimited and discretionary authority to suspend store operations pending an investigation of suspicious pawn transactions or resolution of actual or alleged regulatory, licensing and permitting issues. 17 Table of Contents Other Latin American Federal and Local Regulations Similar to Mexico, certain federal, department and local governmental entities in Guatemala, El Salvador and Colombia also regulate the pawn industry and retail and commercial businesses.
State and local agencies, including local and state police officials, often have unlimited and discretionary authority to suspend store operations pending an investigation of suspicious pawn transactions or resolution of actual or alleged regulatory, licensing and permitting issues. 18 Table of Contents Other Latin American Federal and Local Regulations Similar to Mexico, certain federal, department and local governmental entities in Guatemala, El Salvador and Colombia also regulate the pawn industry and retail and commercial businesses.
AFF’s ability to customize the technology and offer a choice between retail POS payment products provides its merchant partners the ability to identify the most effective solution for its business and customers.
AFF’s ability to customize the technology and offer a choice between retail POS payment products provides its merchant partners with the ability to identify the most effective solution for its business and customers.
The Company does not own, lease or operate any long-haul trucks to support its 3,026 pawn locations and, other than operating small storefront locations which are typically 5,000 square feet or less, the Company’s operations leave a limited carbon footprint compared to manufacturers and retailers selling new merchandise with extensive supply chain and distribution channels.
The Company does not own, lease or operate any long-haul trucks to support its 3,330 pawn locations and, other than operating small storefront locations which are typically 5,000 square feet or less, the Company’s operations leave a limited carbon footprint compared to manufacturers and retailers selling new merchandise with extensive supply chain and distribution channels.
A number of other states have adopted, or are proposing to enact, similar comprehensive data privacy laws. 16 Table of Contents Some states also specifically regulate, via statutes and regulations, the RISA transactions that AFF purchases from merchants. The scope of such RISA regulation varies from state to state.
A number of other states have adopted, or are proposing to enact, similar comprehensive data privacy laws. 17 Table of Contents Some states also specifically regulate, via statutes and regulations, the RISA transactions that AFF purchases from merchants. The scope of such RISA regulation varies from state to state.
Customers can apply for AFF’s products online or through their mobile devices and complete the process electronically or in person at one of AFF’s merchant partner locations. AFF primarily serves customers who are credit-constrained who may not qualify for prime or near prime retail payment options.
Customers can apply for AFF’s payment solutions online or through their mobile devices and complete the process electronically or in person at one of AFF’s merchant partner locations. AFF primarily serves customers who are credit-constrained who may not qualify for prime or near prime retail payment options.
Each of the Company’s 3,026 pawn locations provides consumers a neighborhood-based market to buy and resell pre-owned and popular consumer products in a safe environment, along with access to a quick and convenient source of short-term cash through non-recourse pawn transactions.
Each of the Company’s 3,330 pawn locations provides consumers with a neighborhood-based market to buy and resell pre-owned and popular consumer products in a safe environment, along with access to a quick and convenient source of short-term cash through non-recourse pawn transactions.
Federal Regulations The U.S. government and its agencies have significant regulatory authority over the Company’s activities, and its business is subject to a variety of federal laws, including but not limited to the following: Federal Trade Commission (“FTC”) Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) — The FTC and the CFPB regulate advertising for, the marketing of, and practices related to the origination and servicing of financial products and services.
Federal Regulations The U.S. government and its agencies have significant regulatory authority over the Company’s activities, and its business is subject to a variety of federal laws, including but not limited to the following: Federal Trade Commission (“FTC”) Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) — The FTC and the Consumer Financial Protection Bureau (“CFPB”) regulate advertising for, the marketing of, and practices related to the origination and servicing of financial products and services.
Many of the Company’s acquired stores in Latin America tend to be smaller than its U.S. stores, especially those located in dense urban markets that may not have dedicated parking. Management has established a standard store design intended to facilitate operations and provide a positive customer experience.
Many of the Company’s acquired stores in Latin America and all of its stores in the U.K. tend to be smaller than the U.S. stores, especially those located in more dense urban markets that may not have dedicated parking. Management has established a standard store design intended to facilitate operations and provide a positive customer experience.
Services Offered by the Company’s Pawn Operations Pawn Merchandise Sales The Company’s pawn merchandise sales are primarily retail sales to the general public from its pawn store locations. The items sold generally consist of pre-owned consumer products such as jewelry, electronics, tools, appliances, sporting goods and musical instruments.
Services Offered by the Company’s Pawn Operations Pawn Merchandise Sales The Company’s pawn merchandise sales are primarily retail sales to the general public from its pawn store locations. The items sold vary by location but generally consist of pre-owned consumer products such as jewelry, electronics, tools, appliances, sporting goods and musical instruments.
Unlike most brick-and-mortar or online retailers, the Company does not rely on supply chains or manufacturing of its inventories, as it sources the majority of its inventory from forfeited pawn loan collateral and merchandise purchased directly from customers living or working near the Company’s pawn stores.
Unlike most brick-and-mortar or online retailers, the Company does not rely on supply chains or manufacturing of its retail inventories, as it sources the majority of its inventory from unredeemed pawn loan collateral and merchandise purchased directly from customers living or working near the Company’s pawn stores.
AFF facilitates the RISA retail POS payment product with merchant partners in 22 U.S. states, and such product accounted for 13% of AFF’s gross transaction volumes during 2024. • Bank-originated installment loans — The customer enters into an installment loan directly with a Utah state-chartered non-member bank (the “Bank”), for the purchase of a good or service from the merchant partner.
AFF facilitates the RISA retail POS payment product with merchant partners in 22 U.S. states, and such product accounted for 12% of AFF’s gross transaction volumes during 2025. • Bank-originated installment loans — The customer enters into an installment loan directly with a Utah state-chartered non-member bank (the “Bank”), for the purchase of a good or service from the merchant partner.
In contrast, a majority of the Company’s pawn stores opened in Latin America are larger format, full-service stores similar to the U.S. stores, which buy, sell and lend on a wide array of merchandise. Accordingly, competition in Latin America with the Company’s larger format, full-service pawn stores is more limited.
In contrast, a majority of the Company’s pawn stores opened in Latin America are larger format, full-service stores similar to the U.S. stores, which buy, sell and lend on a wide array of merchandise. Accordingly, competition in Latin America with the Company’s larger format, full-service pawn stores is more 1 Table of Contents limited.
Over the last five years, 576 pawn stores have been opened or acquired, with the net store count growing at a compound annual store growth rate of 2% over this period. The Company intends to open or acquire additional stores in locations where management believes appropriate consumer demand and other favorable conditions exist.
Over the last five years, 783 pawn stores have been opened or acquired, with the net store count growing at a compound annual store growth rate of 4% over this period. The Company intends to open or acquire additional stores in locations where management believes appropriate consumer demand and other favorable conditions exist.
The law is intended to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, or other prohibited bases, and to prevent discrimination on the basis of any of those factors in any 14 Table of Contents aspect of a credit transaction.
The law is intended to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, or other prohibited bases, and to prevent discrimination on the basis of any of those factors in any aspect of a credit transaction.
The Company also has implemented an identity theft prevention program to fulfill the requirements of the Red Flags Regulations and Guidelines issued under the Fair and Accurate Credit Transactions Act (“FACTA”). 15 Table of Contents Anti-Corruption — The Company is subject to the U.S.
The Company also has implemented an identity theft prevention program to fulfill the requirements of the Red Flags Regulations and Guidelines issued under the Fair and Accurate Credit Transactions Act (“FACTA”). Anti-Corruption — The Company is subject to the U.S.
MLA — The MLA requires the provision of certain disclosures at certain times and restricts, among other things, the interest rate and other terms that can be offered to active military personnel and their dependents on most types of consumer credit.
Military Lending Act (“MLA”) — The MLA requires the provision of certain disclosures at certain times and restricts, among other things, the interest rate and other terms that can be offered to active military personnel and their dependents on most types of consumer credit.
The Company employed approximately 8,200 employees in the U.S. as of December 31, 2024, including approximately 1,200 persons employed in executive, supervisory, administrative and accounting functions. None of the Company’s U.S. employees are covered by collective bargaining agreements.
The Company employed approximately 8,300 employees in the U.S. as of December 31, 2025, including approximately 1,200 persons employed in executive, supervisory, administrative and accounting functions. None of the Company’s U.S. employees are covered by collective bargaining agreements.
If a pawn loan is not repaid before the expiration of the grace period, the pawn collateral is forfeited to the Company and transferred to inventory at a value equal to the principal amount of the loan, exclusive of accrued service fees.
If a pawn loan is not repaid before the expiration of the grace period, the pawn collateral is forfeited to the Company and transferred 2 Table of Contents to inventory at a value equal to the principal amount of the loan, exclusive of accrued service fees.
The Company enters into agreements with its employees, consultants and partners, and through these and other confidentiality or non-compete agreements, the Company attempts to 9 Table of Contents control access to and distribution of its software, documentation and other proprietary technology and information.
The Company enters into agreements with its employees, consultants and partners, and through these and other confidentiality or non-compete agreements, the Company attempts to control access to and distribution of its software, documentation and other proprietary technology and information.
After resolution of some challenges to the SDL Rule itself and the constitutionality of the CFPB, on July 3, 2024, trade groups filed a petition for a rehearing with the Fifth Circuit en banc . The Fifth Circuit did not grant the petition and the SDL Rule is expected to go into effect on March 30, 2025.
After resolution of some challenges to the SDL Rule itself and the constitutionality of the CFPB, on July 3, 2024, trade groups filed a petition for a rehearing with the Fifth Circuit en banc . The Fifth Circuit did not grant the petition and the SDL Rule went into effect on March 30, 2025.
The learning takes a blended approach involving formal courses, self-directed learning and on-the-job applications. • Coordinating and enrolling training, at least annually, including compliance and anti-harassment training to all team members, as well as ethics and leadership training to all management-level team members. • Providing team members with recurring training on critical issues such as safety and security, lending and collection practices, ethics and integrity, information security and other compliance matters. • Offering a tuition reimbursement program to U.S. employees for courses related to current or future roles at the Company and also discounted tuition rates to select universities. • Offering eligible U.S. employees private health and life insurance benefits and a comprehensive suite of well-being offerings, including health coaching sessions, financial coaching sessions with a certified financial planner and counseling/emotional support through the Company’s Employee Assistance program. • Matching team members’ 401(k) plan contributions for all U.S. employees after one year of service. 12 Table of Contents • Offering access to thousands of partner discounts for services and products through the partner portal. • Providing all employees in Latin America public healthcare and other statutory benefits.
The learning takes a blended approach involving formal courses, self-directed learning and on-the-job applications. • Coordinating and enrolling training, at least annually, including compliance and anti-harassment training to all team members, as well as ethics and leadership training to all management-level team members. • Providing team members with recurring training on critical issues such as safety and security, lending and collection practices, ethics and integrity, information security and other compliance matters. • Offering a tuition reimbursement program to U.S. and U.K. employees for courses related to current or future roles at the Company and also discounted tuition rates to select universities in the U.S. • Offering eligible U.S. employees private health and life insurance benefits and a comprehensive suite of well-being offerings, including health coaching sessions, financial coaching sessions with a certified financial planner and counseling/emotional support through the Company’s Employee Assistance program. • Matching eligible U.S. and U.K. team members’ retirement plan contributions after meeting certain service requirements. • Offering U.S. employees access to thousands of partner discounts for services and products through the partner portal. • All employees in Latin America and the U.K. have access to public healthcare and are provided with other statutory benefits.
For instance, the Company participated in the Government Program of Youth Building the Future in Mexico in 2024 by providing year-long apprenticeships to female participants aspiring to build careers in legal, human resources, and information technology industries. The Mexico Secretary of Labor awarded the Company the Recognition of Social Commitment as a result of the Company’s participation in this program.
For instance, the Company has participated in the Government Program of Youth Building the Future in Mexico since 2019 by providing year-long apprenticeships to participants aspiring to build careers in legal, human resources, and information technology industries. The Mexico Secretary of Labor awarded the Company the Recognition of Social Commitment as a result of the Company’s participation in this program.
The Company complies with notice and opt-out requirements for prescreen solicitations and for certain information sharing under the FCRA and conducts reasonable investigations of disputes as applicable.
The Company complies with notice and opt-out requirements for prescreen solicitations and for certain information sharing under the FCRA and conducts reasonable investigations of 16 Table of Contents disputes as applicable.
The Company employed approximately 11,600 employees in Latin America as of December 31, 2024, including approximately 900 persons employed in executive, supervisory, administrative and accounting functions. The Company’s Mexico employees are covered by labor agreements as required under Mexico’s Federal Labor Law. None of the Company’s other Latin American employees are covered by collective bargaining agreements.
The Company employed approximately 11,900 employees in Latin America as of December 31, 2025, including approximately 1,100 persons employed in executive, supervisory, administrative and accounting functions. The Company’s Mexico employees are covered by labor agreements as required under Mexico’s Federal Labor Law. None of the Company’s other Latin American employees are covered by collective bargaining agreements.
Net revenues (gross profit) from AFF accounted for 17% of the Company’s consolidated net revenues during 2024. Products Offered by AFF AFF’s merchant partners may provide consumer goods and services to their customers using one of AFF’s retail POS payment products to facilitate payments on such transactions.
Net revenues (gross profit) from AFF accounted for 15% of the Company’s consolidated net revenues during 2025. Payment Solution Products Offered by AFF AFF’s merchant partners may provide consumer goods and services to their customers using one of AFF’s retail POS payment products to facilitate payments on such transactions.
The Company also melts certain quantities of scrap jewelry and sells the gold, silver and diamonds in the commodity markets. Gross profit from pawn merchandise sales accounted for 38% of the Company’s consolidated net revenue during 2024.
The Company also melts certain quantities of scrap jewelry and sells the gold, silver and diamonds in the commodity markets. Gross profit from pawn merchandise sales accounted for 39% of the Company’s consolidated net revenue during 2025.
For a discussion of the risks related to the Company’s regulatory environment, see “Item 1A. Risk Factors—Regulatory, Legislative and Legal Risks.” U.S.
For a discussion of the risks related to the Company’s regulatory environment, see “Item 1A. Risk Factors—Regulatory, Legislative and Legal Risks.” 14 Table of Contents U.S.
The customer enters into a RISA with the merchant and AFF subsequently purchases the RISA from the merchant partner and services the account through the end of the 7 Table of Contents contractual term.
The customer enters into a RISA with the merchant and AFF subsequently purchases the RISA from the merchant partner and services the account through the end of the contractual term.
Other non-specialty lenders may, and do, lend money on financial terms more favorable than those offered by the Company. Management believes the pawn industry remains highly fragmented with an estimated 12,000 to 14,000 total pawnshops in the U.S. and 7,000 to 8,000 total pawnshops in Mexico.
Other non-specialty lenders may, and do, lend money on financial terms more favorable than those offered by the Company. Management believes the pawn industry remains highly fragmented with an estimated 12,000 to 14,000 total pawnshops in the U.S., 8,000 to 9,000 total pawnshops in Mexico and slightly under 1,000 total pawnshops in the U.K.
Retail POS Payment Solutions Operations AFF facilitates customized LTO and retail finance programs to its merchant partners, allowing those merchant partners to complete sales by providing their customers with a retail POS payment solution.
Retail POS Payment Solutions Operations AFF facilitates customized LTO and retail finance programs to its merchant partners, allowing those merchant partners to complete sales by providing their customers with one of its retail POS payment solutions.
The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov .
The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov . 19 Table of Contents
The Company’s primary corporate website is www.firstcash.com . Pawn Operations Pawn stores are neighborhood-based retail locations that buy and sell pre-owned consumer products such as jewelry, electronics, tools, appliances, sporting goods and musical instruments. Pawn stores also provide a quick and convenient source of small, secured consumer loans, also known as pawn loans, to unbanked, under-banked and credit-constrained customers.
Pawn Operations Pawn stores are neighborhood-based retail locations that buy and sell pre-owned consumer products such as jewelry, electronics, tools, appliances, sporting goods and musical instruments. Pawn stores also provide a quick and convenient source of small, secured consumer loans, also known as pawn loans, to unbanked, under-banked and credit-constrained customers.
Despite the Company’s efforts to protect its proprietary rights, third parties may, in an authorized or unauthorized manner, attempt to use, copy or otherwise obtain and market or distribute its intellectual property rights or technology or otherwise develop products with the same functionality as its solutions. Policing all unauthorized use of the Company’s intellectual property rights is nearly impossible.
Despite the Company’s efforts to protect its proprietary rights, third parties may, in an authorized or unauthorized manner, attempt to use, 9 Table of Contents copy or otherwise obtain and market or distribute its intellectual property rights or technology or otherwise develop products with the same functionality as its solutions.
The following chart presents the year end pawn store count over the five-year period ended December 31, 2024: 5 Table of Contents As of December 31, 2024, the Company’s pawn stores were located in the following countries and states: Number of Locations U.S. Latin America Texas 485 Mexico: Florida 87 Estado de.
The following chart presents the year end pawn store count over the five-year period ended December 31, 2025: 5 Table of Contents As of December 31, 2025, the Company’s pawn stores were located in the following countries and states: Number of Locations U.S. Latin America U.K. Texas 490 Mexico: England 253 Florida 86 Estado de.
AFF offers the LTO retail POS payment product to merchant partners in 45 U.S. states, the District of Columbia and Puerto Rico, and such product accounted for 53% of AFF’s gross transaction volumes during 2024. • Retail installment sales agreement (“RISA”) — The RISA transaction involves the purchase of either tangible personal property or services from the merchant partner by the customer.
AFF offers the LTO retail POS payment product to merchant partners in 46 U.S. states and the District of Columbia, and such product accounted for 43% of AFF’s gross transaction volumes during 2025. 7 Table of Contents • Retail installment sales agreement (“RISA”) — The RISA transaction involves the purchase of either tangible personal property or services from the merchant partner by the customer.
Pawn Business Strategy The Company’s business strategy is to continue growing pawn revenues and income by opening new (“de novo”) retail pawn locations, acquiring existing pawn stores in strategic markets and increasing revenue and operating profits in existing stores.
Pawn Business Strategy The Company’s business strategy is to drive profitable growth by opening new (“de novo”) retail pawn locations, acquiring existing pawn stores in strategic markets and increasing revenue and operating profits in existing stores.
In order to combat this risk, AFF has been focused on expanding and diversifying its merchant partner base away from these larger merchant partners, which has resulted in less concentration by large merchant partner and vertical channel as reflected in the table above.
Over the past several years, AFF has been focused on expanding and diversifying its merchant partner base away from these larger merchant partners, which has resulted in less concentration by large merchant partner and vertical channel as reflected in the table above.
In addition, from time to time, state regulatory agencies and state attorneys general have directed investigations or regulatory initiatives toward the Company’s industry or toward certain companies within the industry.
In addition, from time to time, state regulatory agencies and state attorneys general have directed investigations or regulatory initiatives toward the Company’s industry, including its retail POS payment solutions products, or toward certain companies within the industry.
The Company cannot be certain that the steps it has taken or will take in the future will prevent misappropriations of its technology or intellectual property rights.
Policing all unauthorized use of the Company’s intellectual property rights is nearly impossible. The Company cannot be certain that the steps it has taken or will take in the future will prevent misappropriations of its technology or intellectual property rights.
The following table shows the percentage of AFF's gross transaction volumes originated attributable to these vertical channels for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, 2024 2023 2022 Furniture 37 % 48 % 52 % Automotive 24 % 19 % 20 % Jewelry 10 % 8 % 5 % Elective Medical 12 % 7 % 2 % Other 17 % 18 % 21 % Total 100 % 100 % 100 % A significant portion of AFF’s gross transaction volumes have historically been concentrated with certain large merchant partners, many of which were also concentrated within the furniture vertical, which has suffered from declining sales, store closures and bankruptcies over the past few years.
The following table shows the percentage of AFF's gross transaction volumes originated attributable to these vertical channels for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, 2025 2024 2023 Automotive 25 % 24 % 19 % Furniture 23 % 37 % 48 % Elective Medical 18 % 12 % 7 % Jewelry 11 % 10 % 8 % Other 23 % 17 % 18 % Total 100 % 100 % 100 % A significant portion of AFF’s gross transaction volumes have historically been concentrated with certain large merchant partners, many of which were also concentrated within the furniture vertical.
Most management-level employees and tenured store and administrative employees in Mexico are provided private health insurance. • All eligible employees in Mexico participate in a statutory profit sharing program. Workplace Profile As of December 31, 2024, the Company had approximately 20,000 employees across six countries (the U.S., Mexico, Guatemala, El Salvador, Colombia and Jamaica).
Certain management-level employees and administrative employees in Mexico and the U.K. are provided private health insurance. • All eligible employees in Mexico participate in a statutory profit sharing program. 12 Table of Contents Workplace Profile As of December 31, 2025, the Company had approximately 22,000 employees across seven countries (the U.S., Mexico, Guatemala, El Salvador, Colombia, Jamaica and the U.K.).
In these proceedings, the CFPB can seek consent orders, confidential memorandums of understanding, cease and desist orders (which can include orders for redisclosure, restitution or rescission of contracts, as well as affirmative or injunctive relief) and monetary penalties.
In these proceedings, the CFPB can seek consent orders, confidential memorandums of understanding, cease and desist orders (which can include orders for redisclosure, restitution or rescission of contracts, as well as affirmative or injunctive relief) and monetary penalties. For a discussion of the risks to the Company’s business related to CFPB regulation, see “Item 1A.
The following table details store count activity for the year ended December 31, 2024: U.S.
The following table details store count activity for the year ended December 31, 2025: U.S. Latin America U.K.
Employee Empowerment The Company is committed to creating a safe, trusted and professional environment in which its employees can thrive. Total employee compensation is typically above the minimum wage standards in each country in which it operates. The Company also believes in fairly compensating its employees by providing the ability to share in the Company’s profitability.
Total employee compensation is typically above the minimum wage standards in each country in which it operates. The Company also believes in fairly compensating its employees by providing the ability to share in the Company’s profitability.
The Company’s retail business competitors include numerous retail and wholesale merchants, including jewelry stores, rent-to-own operators, discount retail stores, “second-hand” stores, consumer electronics stores, other specialty retailers, online retailers, online auction sites, online marketplace sites and other pawnshops.
In addition, the Company competes with other lenders and retailers to attract and retain employees with competitive compensation programs. The Company’s retail business competitors include numerous retail and wholesale merchants, including jewelry stores, rent-to-own operators, discount retail stores, “second-hand” stores, consumer electronics stores, other specialty retailers, online retailers, online auction sites, online marketplace sites and other pawnshops.
The Company estimates that it resold approximately 13 million individual used or pre-owned consumer product items in its pawn stores during 2024, with a commercial value of approximately $1.5 billion.
The Company resold approximately 14 million individual used or pre-owned consumer product items in its pawn stores during 2025 having a commercial value of approximately $1.7 billion.
Like Mexico, department agencies, including local and state police officials, in Guatemala, El Salvador and Colombia have unlimited and discretionary authority in their application of their rules and requirements. FirstCash Website The Company’s primary corporate website is www.firstcash.com .
Like Mexico, department agencies, including local and state police officials, in Guatemala, El Salvador and Colombia have unlimited and discretionary authority in their application of their rules and requirements. U.K.
The Company believes there is opportunity for further expansion in Mexico and 1 Table of Contents other Latin American countries due to the large potential consumer base and limited competition from other large format, full-service pawn store operators.
A large percentage of the population in Mexico and other countries in Latin America is unbanked or under-banked with limited access to traditional consumer credit. The Company believes there is opportunity for further expansion in Mexico and other Latin American countries due to the large potential consumer base and limited competition from other large format, full-service pawn store operators.
Equal Credit Opportunity Act (“ECOA”) — The ECOA and its implementing regulation known as Regulation B, is a consumer protection law stating that individuals applying for loans and other credit products can be evaluated only using factors directly related to their creditworthiness.
However, the rule can still be enforced by state attorneys general, and consumers may utilize the rule in private litigation. 15 Table of Contents Equal Credit Opportunity Act (“ECOA”) — The ECOA and its implementing regulation known as Regulation B, is a consumer protection law stating that individuals applying for loans and other credit products can be evaluated only using factors directly related to their creditworthiness.
As of December 31, 2024, the Company operated 3,026 pawn store locations composed of 1,200 stores in 29 U.S. states and the District of Columbia, 1,725 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.
As of December 31, 2025, the Company operated 3,330 pawn store locations composed of 1,207 stores in 29 U.S. states and the District of Columbia, 1,732 stores in 32 states in Mexico, 75 stores in Guatemala, 18 stores in El Salvador, 12 stores in Colombia and 286 stores in the U.K.
In North Texas, where the Company is headquartered, the Company has made meaningful investments in the local community in the form of employee volunteer service hours and matching certain employee-donations to non-profits. The Communities Foundation of Texas has recognized AFF as a Be In Good Company member for AFF’s community engagement.
In North Texas, where the Company is headquartered, the Company has made meaningful investments in the local community in the form of event sponsorships, employee volunteer service hours and matching certain employee donations to non-profits.
Merchant partners are subject to suspension and/or termination if, based upon the results of AFF’s monitoring, they are found to be out of compliance with the merchant agreement, have low lease or loan quality performance, have elevated customer complaint volume or fail to comply with applicable laws. 8 Table of Contents AFF currently has approximately 13,600 active retail merchant partner locations and e-commerce platforms offering its leasing and financing products.
Merchant partners are subject to suspension and/or termination if, based upon the results of AFF’s monitoring, they are found to be out of compliance with the merchant agreement, have low lease or loan quality performance, have elevated customer complaint volume or fail to comply with applicable laws.
The following table details stores opened and acquired over the five-year period ended December 31, 2024: Year Ended December 31, 2024 2023 2022 2021 2020 U.S. pawn segment: New locations opened 1 5 — 1 — Locations acquired 28 91 30 46 22 Total additions 29 96 30 47 22 Latin America pawn segment: New locations opened 60 61 45 60 75 Locations acquired 10 — 1 — 40 Total additions 70 61 46 60 115 Total: New locations opened 61 66 45 61 75 Locations acquired 38 91 31 46 62 Total additions 99 157 76 107 137 For additional information on store count activity, see “Pawn Store Locations” below.
The following table details stores opened and acquired over the five-year period ended December 31, 2025: Year Ended December 31, 2025 2024 2023 2022 2021 U.S. pawn segment: New locations opened 2 1 5 — 1 Locations acquired 23 28 91 30 46 Total additions 25 29 96 30 47 Latin America pawn segment: New locations opened 32 60 61 45 60 Locations acquired — 10 — 1 — Total additions 32 70 61 46 60 U.K. pawn segment: New locations opened 1 — — — — Locations acquired 286 — — — — Total additions 287 — — — — Total: New locations opened 35 61 66 45 61 Locations acquired 309 38 91 31 46 Total additions 344 99 157 76 107 For additional information on store count activity, see “Pawn Store Locations” below. 3 Table of Contents New Store Openings The Company typically opens new stores in under-served neighborhoods in markets with favorable regulations and customer demographics.
These competitive conditions may adversely affect the Company’s pawn revenue and profitability and its ability to expand and execute its pawn business strategy. The Company believes the primary drivers for competitive success in the pawn industry are store location, customer service, the ability to lend competitive amounts on pawn loans and to sell popular retail merchandise at competitive prices.
The Company believes the primary drivers for competitive success in the pawn industry are store location, customer service, the ability to lend competitive amounts on pawn loans and to sell popular and in-demand retail merchandise tailored to the surrounding area at competitive prices.
The average amount of a pawn loan at December 31, 2024 was $283 in the U.S. and $87 in Latin America.
The average amount of a pawn loan at December 31, 2025 was $312 in the U.S., $112 in Latin America and $825 in the U.K. per transaction.
There are no minimum or maximum pawn loan to fair market value restrictions in connection with the Company’s lending activities. In order to estimate the value of the collateral, the Company utilizes its proprietary POS and loan management system to recall recent selling prices of similar merchandise in its own stores.
In order to estimate the value of the collateral, the Company utilizes its proprietary POS and loan management system to recall recent selling prices of similar merchandise in its own stores.
Item 1. Business Overview FirstCash Holdings, Inc., along with its wholly owned subsidiaries (together, “FirstCash” or the “Company”), is the leading operator of pawn stores in the U.S. and Latin America and is also a leading provider of technology-driven, retail POS payment solutions focused on serving credit-constrained consumers in the U.S and Puerto Rico.
Item 1. Business Overview FirstCash Holdings, Inc., along with its wholly owned subsidiaries (together, “FirstCash” or the “Company”), is the leading operator of pawn stores in the U.S., Latin America and the U.K. FirstCash’s primary line of business is the operation of retail pawn stores, also known as “pawnshops.” The Company also operates a retail POS payment solutions business.
This ESR certification is granted to companies that meet a series of criteria that generally cover the economic, social and environmental sustainability of its operations, including corporate ethics, good governance, the quality of life of the Company’s employees and a proven commitment to the betterment of the community where it operates, including the care and preservation of the environment.
This ESR certification is granted by the Mexican Center for Philanthropy to companies that meet a series of criteria that generally cover the economic, social and environmental sustainability of its operations, including corporate ethics, good governance, the quality of life of the Company’s employees and a proven commitment to the betterment of the community where it operates, including the care and preservation of the environment. 11 Table of Contents The Company has also established relationships and supports certain foundations and social programs in Mexico that provide internships, reading initiatives and educational programs for disadvantaged citizens.
The MLA also requires certain disclosures and prohibits certain terms, such as mandatory arbitration, if a dispute arises concerning the consumer credit product.
The MLA also requires certain disclosures and prohibits certain terms, such as mandatory arbitration, if a dispute arises concerning the consumer credit product. The MLA covers overdraft lines of credit, pawn loans, RISAs, bank installment loans, and certain vehicle-secured and unsecured credit products.
To ensure merchant quality, each prospective merchant goes through a vetting and approval process and, once approved, they must sign a merchant agreement that identifies the roles and responsibilities of both the merchant and AFF. Merchants also receive appropriate training so they can properly represent AFF’s retail POS payment products to their customers and ensure regulatory compliance.
To ensure merchant quality, each prospective merchant goes through a vetting and approval process and, once approved, they must sign a merchant agreement that identifies the roles and responsibilities of both the merchant and AFF.
The Company contributes to its communities by providing these customers with instant access to capital through very small, non-recourse pawn loans or by purchasing merchandise from such customers. The average credit provided by the Company’s pawn business to a customer is $283 in the U.S. and $87 in Latin America as of December 31, 2024.
As a result, the majority of the Company’s customers have limited access to traditional forms of credit or capital. The Company contributes to its communities by providing these customers with instant access to capital through very small, non-recourse pawn loans or by purchasing merchandise from such customers.
Pawn loan fees accounted for 45% of the Company’s consolidated net revenue during 2024. 2 Table of Contents The amount the Company is willing to finance for a pawn loan is primarily based on a percentage of the estimated retail value of the collateral.
Pawn loan fees accounted for 46% of the Company’s consolidated net revenue during 2025. The amount the Company is willing to finance for a pawn loan is primarily based on a percentage of the estimated retail value of the collateral. There are no minimum or maximum pawn loan to fair market value restrictions in connection with the Company’s lending activities.
Latin America Total Total locations, beginning of period 1,183 1,814 2,997 New locations opened 1 60 61 Locations acquired 28 10 38 Consolidation of existing pawn locations (1) (2) (12) (58) (70) Total locations, end of period 1,200 1,826 3,026 (1) Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.
Total Total locations, beginning of period 1,200 1,826 — 3,026 New locations opened 2 32 1 35 Locations acquired 23 — 286 309 Consolidation of existing pawn locations (1) (18) (21) (1) (40) Total locations, end of period 1,207 1,837 286 3,330 (1) Store consolidations, which include certain acquired locations that have been combined with overlapping stores, represent closings for which the Company expects to maintain a significant portion of the customer base in the consolidated location.
During 2024, the Company estimates that it recycled over 57,000 ounces of gold and approximately 47,000 carats of diamonds with a combined market value of over $132 million. This process helps reduce demand for mined precious metals and diamonds, which benefits the environment by reducing carbon emissions, water usage and other harmful environmental impacts of mining.
This process helps reduce demand for mined precious metals and diamonds, which benefits the environment by reducing carbon emissions, water usage and other harmful environmental impacts of mining.
Pawn stores help customers meet small, short-term cash needs by providing non-recourse pawn loans and buying merchandise directly from customers. Personal property, such as jewelry, electronics, tools, appliances, sporting goods and musical instruments, is pledged and held as collateral for the pawn loans over the typical 30-day term of the loan.
Personal property, such as jewelry, electronics, tools, appliances, sporting goods and musical instruments, is pledged and held as collateral for the pawn loans over the term of the loan. Pawn stores also generate retail sales primarily from the merchandise acquired through collateral forfeitures and over-the-counter purchases from customers.
Accordingly, the Company has focused significant time and resources on corporate and social responsibility initiatives in supporting disadvantaged people who live and work in this market. 11 Table of Contents The Company is certified in Mexico as an Empresa Socialmente Responsable (“ESR”), or a socially responsible company under the XII Latin American Meeting of Corporate Social Responsibility Framework.
The Company is certified in Mexico as an Empresa Socialmente Responsable (“ESR”), or a socially responsible company under the XVIII Latin American Meeting of Corporate Social Responsibility Framework.
Accordingly, the Company generally does not own, operate or contract for manufacturing, supply chain, warehousing or distribution facilities to support its pawn operations. Almost all retail sales and pawn loans are made to customers who live or work within a tight geographic radius of the Company’s stores.
Accordingly, the Company generally does not own, operate or contract for manufacturing, supply chain, warehousing or distribution facilities to support its pawn operations.
The term of a pawn loan is typically 30 days plus an additional grace period of 14 to 90 days, depending on geographic markets and local or state regulations.
The term of a pawn loan in the U.S. and Latin America typically range from 30 to 90 days plus an additional grace period of 14 to 90 days based primarily on local or state regulations in each market. In the U.K., federal regulations require a six month term and a two month grace period.
The SDL Rule defines some of the RISA transactions that AFF purchases and some of the bank loans that AFF sub-services as transactions that are covered under the rule.
The SDL Rule imposes certain obligations and limitations associated with the origination and servicing of covered transactions. Traditional possessory, non-recourse pawn loans are not covered under the SDL Rule but some of the RISA transactions that AFF purchases and some of the bank loans that AFF sub-services are covered under the rule.
AFF focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners. AFF’s retail partners provide consumer goods and services to their customers and use AFF’s LTO and retail finance solutions to facilitate payments on such transactions.
The Company’s retail POS payment solutions business line consists solely of the operations of AFF, which focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners.
The process of obtaining a pawn loan is extremely fast, generally taking 15 minutes or less. Loans are funded immediately by providing customers cash. Pawn loans include loan terms that are highly transparent and easy to understand. These fiscally responsible products are regulated, safe and affordable non-recourse loans for which the customer has no legal obligation to repay.
The process of obtaining a pawn loan is extremely fast, generally taking 15 minutes or less. Loans are funded immediately by providing customers cash.
An orange dot is a designated safe space for women who have been victims of community sexual violence or harassment and that is equipped to provide support to such women and contact emergency authorities.
An orange dot is a designated safe space for women who have been victims of community sexual violence or harassment and that is equipped to provide support to such women and contact emergency authorities. 13 Table of Contents Governmental Regulation General Overview The Company’s pawn and retail POS payment solutions businesses are subject to significant regulation by various laws, regulations, ordinances and regulatory pronouncements from federal, state and municipal governmental entities in the U.S.
New Store Openings The Company typically opens new stores in under-served markets and neighborhoods. After a suitable location has been identified and a lease and the appropriate licenses are obtained, a new store can typically open for business within six to twelve weeks.
After a suitable location has been identified and a lease and the appropriate licenses are obtained, a new store can typically open for business within six to twelve weeks. The investment required to open a new location includes store operating cash, inventory, funds for pawn loans, leasehold improvements, store fixtures, security systems, computer equipment and other start-up costs.
The bank-originated installment loan retail POS payment product is made available to merchant partners in 34 U.S. states, and such product accounted for 34% of AFF’s gross transaction volumes during 2024.
Bank-originated loans typically have a term ranging from six to 24 months, and when utilized for the purchase of tangible personal property, are generally secured by such tangible personal property. The bank-originated installment loan retail POS payment product is made available to merchant partners in 38 U.S. states.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisk Factor Summary Risks Related to the Company’s Strategy, Business and Operations • The Company faces significant competition from other pawnshops, branch-based consumer lenders, banks, credit unions, online lenders, POS consumer finance companies, LTO companies, general, specialty and online retailers, governmental entities and other organizations offering similar financial services and retail products to those offered by the Company. • A decrease in demand for the Company’s products and services and the failure of the Company to adapt to such changes could adversely affect the Company’s results of operations. • The Company’s future success is largely dependent upon the ability of its management team to successfully execute its business strategy and drive organic growth. • The inability to successfully identify attractive acquisition targets, realize administrative and operational synergies and integrate completed acquisitions could adversely affect results. • The Company depends on its senior management and hiring, training and retaining an adequate number of qualified employees to run its businesses. • Security breaches, cyber attacks or fraudulent activity could result in damage to the Company’s operations or lead to reputational damage and could expose the Company to significant liabilities. • The Company’s businesses are typically subject to seasonality, which causes the Company’s revenues and operating cash flows to fluctuate. • The Company’s financial position and results of operations may fluctuate significantly due to fluctuations in currency exchange rates in most Latin American markets. • Changes impacting international trade, such as proposed or enacted tariffs, including pursuant to policies of the incoming U.S. administration, and corporate taxation and other related regulatory provisions may have an adverse effect on the Company’s financial condition and results of operations. 18 Table of Contents Risks Related to the Company’s Regulatory, Legislative and Legal Environment • The Company’s products and services are subject to extensive regulation and supervision under various federal, state and local laws, ordinances and regulations in both the U.S. and Latin America, and all consumer finance companies that serve credit-constrained consumers, including the Company, face increasing regulatory scrutiny under the current regulatory environment. • The adoption of new laws or regulations or adverse changes in, or the interpretation or enforcement of, existing laws or regulations affecting the Company’s products and services could adversely affect its financial condition and operating results. • The Company is the subject of a lawsuit initiated by the CFPB alleging (1) violations of the MLA and (2) violations of a consent order the Company’s predecessor entered into with the CFPB. • If the bank partner loan origination model used by AFF is successfully challenged or deemed impermissible, AFF could be found to be in violation of licensing, interest rate limit, lending or brokering laws and could face penalties, fines, a determination that certain of the loans are void or voidable, litigation or regulatory enforcement. • Media reports, statements made by regulators and elected officials and the general public perception that pawnshops, LTO and retail finance products for credit-constrained consumers are predatory or abusive could have a material adverse effect on the Company’s businesses. • Current and future litigation or regulatory proceedings, both in the U.S. and Latin America, could have a material adverse effect on the Company’s business, prospects, results of operations and financial condition. • The sale and pawning of firearms, ammunition and certain related accessories is subject to current and potential regulation and exposes the Company to reputational and litigation risk if such firearms, ammunition and related accessories lead to deaths, injuries or are utilized in the commission of a crime.
Biggest changeRisk Factor Summary Risks Related to the Company’s Strategy, Business and Operations • The Company faces significant competition from other pawnshops, branch-based consumer lenders, online consumer lenders, banks, credit unions, POS consumer finance companies, LTO companies, buy-now/pay later (“BNPL”) providers along with general, specialty and online retailers, governmental entities and other organizations offering similar financial services and retail products to those offered by the Company. • A decrease in demand for the Company’s products and services and the failure of the Company to adapt to such changes could adversely affect the Company’s results of operations. • The Company’s future success is largely dependent upon the ability of its management team to successfully execute its business strategy and drive organic growth. • The inability to successfully identify attractive acquisition targets, realize anticipated benefits from and integrate completed acquisitions could adversely affect results. • The Company depends on its senior management and hiring, training and retaining an adequate number of qualified employees to run its businesses. • Security breaches, cyber attacks or fraudulent activity could result in damage to the Company’s operations or lead to reputational damage and could expose the Company to significant liabilities. • The Company’s future growth is dependent on its ability to keep pace with technological advances, including the adoption of generative artificial intelligence and other machine learning technologies, to remain competitive. • The Company’s businesses are typically subject to seasonality, which causes the Company’s revenues and operating cash flows to fluctuate. • The Company’s financial position and results of operations may fluctuate significantly due to fluctuations in currency exchange rates in most Latin American markets. • Changes impacting international trade, such as proposed or enacted tariffs, including pursuant to policies of the current U.S. administration, and corporate taxation and other related regulatory provisions may have an adverse effect on the Company’s financial condition and results of operations.
Because the Company accepts firearms as pawn collateral and buys and sells firearms, ammunition and certain related accessories in many of its U.S. pawn locations, the Company is required to comply with federal, state and local laws and regulations pertaining to the pawning, purchase, storage, transfer and sale of such products, and the Company is subject to reputational harm if a customer purchases or redeems a pawned firearm that is later involved in a shooting or other crime.
Because the Company accepts firearms as pawn collateral and buys and sells firearms, ammunition and certain related accessories in many of its U.S. pawn locations, the Company is required to comply with U.S. federal, state and local laws and regulations pertaining to the pawning, purchase, storage, transfer and sale of such products, and the Company is subject to reputational harm if a customer purchases or redeems a pawned firearm that is later involved in a shooting or other crime.
Under this arrangement, AFF purchases a portion of the cash flows originated by the Bank and sub-services the loans thereafter while the Bank retains ownership of the loans at all times. AFF does not originate or ultimately control the pricing or functionality of the loans. The Bank makes all key decisions regarding the marketing, underwriting, product features and pricing.
Under this arrangement, AFF purchases a portion of the cash flows originated by the Bank and sub-services the loans thereafter while the Bank retains ownership of the loans at all times. AFF does not originate or ultimately control the pricing or functionality of the loans. The Bank makes all key decisions regarding marketing, underwriting, product features and pricing.
Furthermore, certain states and localities have also adopted laws requiring licensing, registration, notice filing, or other approval for consumer debt collection or servicing, and/or purchasing or selling consumer loans. From time to time, the Company is subject to audits in various states to ensure it is meeting the applicable requirements to maintain the applicable licenses and registrations.
Furthermore, certain states and localities have also adopted laws requiring licensing, registration, notice filing, or other approval for consumer debt collection or servicing, and/or purchasing or selling consumer loans. From time to time, the Company is subject to audits in various jurisdictions to ensure it is meeting the applicable requirements to maintain the applicable licenses and registrations.
Additionally, the Company’s storefront operations depend on the efficiency and reliability of the Company’s proprietary pawn POS and loan management system and AFF depends on its systems to process its transaction volume and effectively take applications, decision and service its customers. Furthermore, third parties provide a number of key components necessary to the Company’s business functions and systems.
Additionally, the Company’s storefront operations depend on the efficiency and reliability of the Company’s proprietary pawn POS and loan management systems and AFF depends on its systems to process its transaction volume and effectively take applications, decision and service its customers. Furthermore, third parties provide a number of key components necessary to the Company’s business functions and systems.
The Company’s principal competitors are other pawnshops, branch-based consumer lenders, banks, credit unions, credit card issuers, online lenders, POS consumer finance companies, LTO companies, general, specialty and online retailers, governmental entities and other organizations offering similar financial services and retail products to those offered by the Company.
The Company’s principal competitors are other pawnshops, branch-based consumer lenders, banks, credit unions, credit card issuers, online lenders, POS consumer finance and BNPL companies, LTO companies, general, specialty and online retailers, governmental entities and other organizations offering similar financial services and retail products to those offered by the Company.
Because the Company maintains a significant supply of cash, loan collateral and inventories in its pawn stores and certain processing centers, the Company may be subject to employee and third-party robberies, riots, looting, burglaries and thefts. The Company may also be subject to liability as a result of crimes at its pawn stores.
Because the Company maintains a significant supply of cash, pawn loan collateral and retail inventories in its pawn stores and certain processing centers, the Company may be subject to employee and third-party robberies, riots, looting, burglaries and thefts. The Company may also be subject to liability as a result of crimes at its pawn stores.
The Company faces the risk that restrictions or limitations on pawn loans and retail POS payment products resulting from the enactment, change, interpretation or enforcement of laws and regulations in the U.S. or Latin America could have a negative effect on the Company’s business activities.
The Company faces the risk that restrictions or limitations on pawn loans and retail POS payment products resulting from the enactment, change, interpretation or enforcement of laws and regulations in the U.S., Latin America or the U.K. could have a negative effect on the Company’s business activities.
Adoption of such federal, state or local regulation or legislation in the U.S. and Latin America could restrict, or even eliminate, the availability of pawn transactions and buy/sell agreements at some or all of the Company’s locations, which would adversely affect the Company’s operations and financial condition.
Adoption of such federal, state or local regulation or legislation in the U.S., Latin America and the U.K. could restrict, or even eliminate, the availability of pawn transactions and buy/sell agreements at some or all of the Company’s locations, which would adversely affect the Company’s operations and financial condition.
With respect to the AFF business, organic growth is largely driven by the ability of AFF to expand its network of merchant partners, increase utilization of its products at its merchant partners and improve its technology to support increased growth, meet the needs of its merchants and consumers and make effective approval decisions with respect to its products.
With respect to the AFF business, organic growth is largely driven by the ability of AFF to expand its network of merchant partners, increase utilization of its products at its merchant partners and improve its technology to support increased growth, meet the needs of its merchants and consumers and make effective pricing and approval decisions with respect to its products.
The Company also relies significantly on outside vendors to provide services related to financial transaction processing (including credit and debit card processors), utilities, store security, armored transport, precious metal smelting, data and voice networks and other information technology products and services.
The Company also relies significantly on outside vendors to provide services related to financial transaction processing (including credit and debit card processors), utilities, store security, armored transport, precious metal smelting and sales, data and voice networks and other information technology products and services.
If the estimates prove incorrect, the AFF business may incur net charge-offs in excess of its reserves, or may be required to increase its provision for lease and loan losses, either of which would adversely affect the Company’s results of operations.
If the estimates prove incorrect, the AFF business may incur net charge-offs in excess of its reserves or liabilities, or may be required to increase its provision for lease and loan losses, either of which would adversely affect the Company’s results of operations.
An important component of the Company’s business involves collection, storage, use, disclosure, processing, transfer and other handling of a wide variety of sensitive, regulated and/or confidential information, including personally identifiable information, for various purposes in its business with customers.
An important component of the Company’s business involves collection, storage, use, disclosure, processing, transfer and other handling of a wide variety of sensitive, regulated and/or confidential information, including personally identifiable information, for various purposes in its business with customers and employees.
The Company’s products and services are subject to extensive regulation and supervision under various federal, state and local laws, ordinances and regulations in both the U.S. and Latin America. Federal and state regulatory authorities are increasingly focused on consumer finance and retail POS payment products, such as those offered by the Company, for credit-constrained consumers.
The Company’s products and services are subject to extensive regulation and supervision under various federal, state and local laws, ordinances and regulations in the U.S., Latin America and the U.K. Federal and state regulatory authorities are increasingly focused on consumer finance and retail POS payment products, such as those offered by the Company, for credit-constrained consumers.
While retail sales at the Company’s pawnshops, due in part to the “deep value” nature of the products sold at its pawnshops, and demand for pawn loans have not been adversely affected by such economic trends in 2024, there is no guarantee that they will not be adversely affected should economic conditions deteriorate further.
While retail sales at the Company’s pawnshops, due in part to the “deep value” nature of the products sold at its pawnshops, and demand for pawn loans have not been adversely affected by such economic trends in 2025, there is no guarantee that they will not be adversely affected should economic conditions deteriorate further.
The Company relies on a combination of trademarks, trade dress, trade secrets, proprietary software, website domain names and other rights, including confidentiality procedures and contractual provisions, to protect its proprietary technology, processes and other intellectual property. While the Company intends to vigorously protect its trademarks and proprietary systems against infringement, it may not be successful.
The Company relies on a combination of trademarks, trade dress, trade secrets, proprietary software, mobile applications, website domain names and other rights, including confidentiality procedures and contractual provisions, to protect its proprietary technology, processes and other intellectual property. While the Company intends to vigorously protect its trademarks and proprietary systems against infringement, it may not be successful.
Furthermore, economic conditions and demand may also fluctuate by geographic region. The current geographic concentration of the Company’s pawn stores and AFF’s merchant partners creates exposure to local economies and politics, and regional downturns, including with respect to Latin American economies and politics, which tend to be more volatile than the U.S. economy.
Furthermore, economic conditions and demand may also fluctuate by geographic region. The current geographic concentration of the Company’s pawn stores and AFF’s merchant partners creates exposure to local economies and politics, and regional downturns, including with respect to Latin American economies and politics, which tend to be more volatile than the U.S. and U.K. economies.
It is possible that the integration process could result in unrealized administrative and operational synergies, the loss of key employees, the disruption of ongoing businesses, tax costs or inefficiencies, or inconsistencies in standards, controls, information technology systems, procedures and policies, any of which could adversely affect the Company’s ability to maintain relationships with customers, employees, or other third parties or the Company’s ability to achieve the anticipated benefits of such acquisitions and could harm its financial performance.
It is possible that the integration process could result in unrealized administrative and operational synergies, the loss of key employees, the disruption of ongoing businesses, tax costs or inefficiencies, or inconsistencies in standards, controls, information technology systems, procedures and policies, any of which could adversely affect the Company’s ability to maintain relationships with customers, employees, or other third parties or the Company’s ability to achieve the anticipated benefits of such acquisitions 22 Table of Contents and could harm its financial performance.
Loans originated through the Bank’s program represent a material amount of AFF’s total origination volume. AFF’s bank loan product relies on the Bank originating the loans that are facilitated through AFF’s platform and complying with various federal, state and other laws. The current loan program agreement expires in August 2025.
Loans originated through the Bank’s program represent a material amount of AFF’s total origination volume. AFF’s bank loan product relies on the Bank originating the loans that are facilitated through AFF’s platform and complying with various federal, state and other laws. The current loan program agreement expires in August 2028.
A security breach of the Company’s computer systems, or those of the Company’s third-party service providers, including as a result of cyber attacks, could cause loss of Company assets, sensitive customer information and transaction data, interrupt or damage its operations or harm its reputation.
A security breach of the Company’s computer systems, or those of the Company’s third-party service providers, including as a result of cyber attacks, could cause loss of Company assets, sensitive customer or employee information, transaction data, interrupt or damage its operations or harm its reputation.
The attractiveness of AFF’s platform to merchants depends upon, among other things, the size of its consumer base, its brand and reputation, the amount of merchant premium or discounts paid or received by AFF, its ability to sustain its value proposition to merchants for customer acquisition by demonstrating higher conversion at checkout, the attractiveness to merchants of AFF’s technology and data-driven platform, services and products offered by competitors, and its ability to perform under, and maintain, its merchant agreements.
The attractiveness of AFF’s platform to merchants depends upon, among other things, the size of its consumer base, its brand and reputation, the amount of merchant premium or discounts paid or received by AFF, its ability to sustain its value proposition to merchants for customer acquisition by demonstrating higher conversion at checkout, the attractiveness to merchants of AFF’s technology and data-driven platform, 35 Table of Contents services and products offered by competitors, and its ability to perform under, and maintain, its merchant agreements.
A shut-down of or inability to access these systems due to a power outage, a cyber-security breach or attack, a breakdown or failure of one or more of its information technology, telecommunications or other systems, or sustained or repeated disruptions of such systems could significantly impair its ability to perform such functions on a timely basis and could result in a deterioration of the Company’s ability to perform its day-to-day operations, provide customer service or perform other necessary business functions.
A shut-down of or inability to access these systems due to a power outage, a cybersecurity breach or attack, a breakdown or failure of one or more of its information technology, telecommunications or other systems, or sustained or repeated disruptions of such systems could significantly impair its ability to perform such functions on a timely basis and could result in a deterioration of the Company’s ability to perform its day-to-day operations, provide customer service or perform other necessary business functions.
However, the insurance program generally has large deductibles and co-insurance requirements and may not be adequate to cover all such losses. The Company could also experience liability or adverse publicity arising from such crimes. Any such 23 Table of Contents event may have a material and adverse effect on the Company’s business, prospects, results of operations and financial condition.
However, the insurance program generally has large deductibles and co-insurance requirements and may not be adequate to cover all such losses. The Company could also experience liability or adverse publicity arising from such crimes. Any such event may have a material and adverse effect on the Company’s business, prospects, results of operations and financial condition.
In any event, the effect of any product or service change on the results of the Company’s business may not be fully ascertainable until the change has been in effect for some time. 20 Table of Contents The Company’s organic growth is subject to external factors and other circumstances over which it has limited control or that are beyond its control.
In any event, the effect of any product or service change on the results of the Company’s business may not be fully ascertainable until the change has been in effect for some time. The Company’s organic growth is subject to external factors and other circumstances over which it has limited control or that are beyond its control.
Failure to successfully integrate an acquisition could have an adverse effect on the Company’s business, results of operations and financial condition, and failure to successfully identify attractive acquisition targets and complete such acquisitions on favorable terms could have an adverse effect on the Company’s growth.
Failure to successfully integrate an acquisition could adversely affect the Company’s business, results of operations and financial condition, and failure to successfully identify attractive acquisition targets and complete such acquisitions on favorable terms could have an adverse effect on the Company’s growth.
In recent years, consumer advocacy groups and some media reports, in both the U.S. and Latin America, have advocated governmental action to prohibit or place severe restrictions on the Company’s products and services.
In recent years, consumer advocacy groups and some media reports, in the U.S., Latin America and the U.K., have advocated governmental action to prohibit or place severe restrictions on the Company’s products and services.
Such litigation could have a material adverse effect on the Company’s business, results of operations and financial condition. Current and future litigation or regulatory proceedings, both in the U.S. and Latin America, could have a material adverse effect on the Company’s business, prospects, results of operations and financial condition.
Such litigation could have a material adverse effect on the Company’s business, results of operations and financial condition. Current and future litigation or regulatory proceedings in the U.S., Latin America and the U.K. could have a material adverse effect on the Company’s business, prospects, results of operations and financial condition.
These factors and circumstances could adversely affect the Company’s ability to grow. The success of the Company’s organic expansion strategy is subject to numerous external factors, including regulatory restrictions, general economic conditions and acceptance of the Company’s products.
These factors and circumstances could adversely affect the Company’s ability to grow. The success of the Company’s organic expansion strategy is subject to many external factors, including regulatory restrictions, general economic conditions and acceptance of the Company’s products.
Regulatory, Legislative and Legal Risks The Company’s products and services are subject to extensive regulation and supervision under various federal, state and local laws, ordinances and regulations in both the U.S. and Latin America.
Regulatory, Legislative and Legal Risks The Company’s products and services are subject to extensive regulation and supervision under various federal, state and local laws, ordinances and regulations in the U.S., Latin America and the U.K.
The Company’s pawn business relies heavily on hourly retail employees along with supervisory employees, while AFF relies heavily on sales, information technology, data science and customer service employees. The Company must attract, train, and retain a large number of employees, while at the same time controlling labor costs.
The Company’s pawn businesses rely heavily on hourly retail employees along with supervisory employees, while AFF relies heavily on sales, information technology, data science and customer service employees. The Company must attract, train, and retain a large number of employees, while at the same time controlling labor costs.
If the Company is unable to maintain access to needed services on favorable terms, the Company would have to materially alter, or possibly discontinue, some or all of its business if alternative processors are not available. The Company’s risk management efforts may not be effective.
If the Company is unable to maintain access to needed services on favorable terms, the Company would have to materially alter, or possibly discontinue, some or all of its business if alternative processors are not available. 26 Table of Contents The Company’s risk management efforts may not be effective.
Additionally, if the negative characterization of these types of transactions becomes increasingly accepted by legislators and regulators, the Company could become subject to more restrictive laws and regulations that could have a material adverse effect on the Company’s financial condition and results of operations.
Additionally, if the negative characterization of these types of transactions becomes 28 Table of Contents increasingly accepted by legislators and regulators, the Company could become subject to more restrictive laws and regulations that could have a material adverse effect on the Company’s financial condition and results of operations.
Over the past several years, the purchase, sale and ownership of firearms, ammunition and certain related accessories has been the subject of increased media scrutiny and federal, state and local regulation.
Over the past several years, the purchase, sale and ownership of firearms, ammunition and certain related accessories have been the subject of increased media scrutiny and federal, state and local regulation.
Securities class action litigation has often been instituted against companies following periods of volatility in the overall market and in the market price of a company’s securities. Inclement weather, natural disasters or health epidemics can adversely impact the Company’s operating results.
Securities class action litigation has often been instituted against companies following periods of volatility in the overall market and in the market price of a company’s securities. 34 Table of Contents Inclement weather, natural disasters or health epidemics can adversely impact the Company’s operating results.
Certain of AFF’s larger furniture-focused merchant partners have experienced lagging sales, store closures and, in some instances, including Conn’s Appliances, Inc. and American Freight, Inc. , bankruptcies, which has and is expected to continue to negatively impact AFF’s originations.
Certain of AFF’s larger furniture-focused merchant partners have experienced lagging sales, store closures and, in some instances, including Conn’s Appliances, Inc. (“Conn’s”) and American Freight, Inc. (“A-Freight”) , bankruptcies, which has and is expected to continue to negatively impact AFF’s originations.
Doing business in each of these countries involves increased risks related to geo-political events, political instability, corruption, economic volatility, property crime, drug cartel and gang-related violence, social and ethnic unrest including riots and looting, enforcement of property rights, governmental regulations, tax policies, banking policies or restrictions, foreign investment policies, public safety, health and security, anti-money laundering regulations, interest rate regulation and import/export regulations, among others.
Doing business in foreign countries, especially in Latin America, involves increased risks related to geo-political events, political instability, corruption, economic volatility, property crime, drug cartel and gang-related violence, social and ethnic unrest including riots and looting, enforcement of property rights, governmental regulations, tax policies, banking policies or restrictions, foreign investment policies, public safety, health and security, anti-money laundering regulations, interest rate regulation and import/export regulations, among others.
While the Company’s consolidated financial statements are reported in U.S. dollars, the financial statements of the Company’s Latin American subsidiaries are prepared using their respective functional currency and translated into U.S. dollars by applying appropriate exchange rates.
While the Company’s consolidated financial statements are reported in U.S. dollars, the financial statements of the Company’s foreign subsidiaries are prepared using their respective functional currency and translated into U.S. dollars by applying appropriate exchange rates.
In addition, the AFF business is also subject to certain states’ laws which regulate and require licensing, registration, notice filing or other approval by parties that engage in certain activity regarding consumer finance transactions, including facilitating and assisting such transactions in certain circumstances.
In addition, the AFF business is also subject to certain states’ laws which regulate and require licensing, registration, notice filing or other approval by parties that engage in certain activity 30 Table of Contents regarding consumer finance transactions, including facilitating and assisting such transactions in certain circumstances.
As a result, fluctuations in the exchange rate of the U.S. dollar relative to the Latin American currencies could cause significant fluctuations in the value of the Company’s assets, liabilities, stockholders’ equity and operating results.
As a result, fluctuations in the exchange rate of the U.S. dollar relative to the foreign currencies could cause significant fluctuations in the value of the Company’s assets, liabilities, stockholders’ equity and operating results.
Actions by federal regulators in the U.S. and Latin American countries where the Company operates have caused many commercial banks, including certain banks used by the Company, to cease offering such services to the Company and other businesses in the pawn, LTO and consumer finance industries.
Additionally, actions by federal regulators in the U.S., Latin American countries where the Company operates and the U.K. have caused some commercial banks, including certain banks used by the Company, to cease offering such services to the Company and other businesses in the pawn, LTO and consumer finance industries.
The loss of business, transaction volumes or platform support from one or more of its top merchant partners could have a material adverse effect on the AFF business. Furthermore, a number of AFF’s legacy merchant partners operate brick-and-mortar retail locations, many of which are furniture stores which have been impacted industry-wide by sales declines in 2024.
The loss of business, transaction volumes or platform support from one or more of its top merchant partners could have a material adverse effect on the AFF business. Furthermore, a number of AFF’s legacy merchant partners operate brick-and-mortar retail locations, many of which are furniture stores which have been impacted industry-wide by sales declines over the past several years.
In such event, it is possible that the Company would not be able to satisfy its obligations under all of such accelerated indebtedness simultaneously. 32 Table of Contents Determining the AFF business’ allowance for lease and loan losses requires many assumptions and complex analyses.
In such event, it is possible that the Company would not be able to satisfy its obligations under all of such accelerated indebtedness simultaneously. 32 Table of Contents Determining the AFF business’ allowance for lease and loan losses and liability for off-balance sheet credit exposure requires many assumptions and complex analyses.
Lease and loan loss experience, first payment default histories, contractual delinquency of lease and loan receivables and management’s judgement are factors used in assessing the overall adequacy of the allowance and the resulting provision for lease and loan losses. Changes in estimates and assumptions can significantly affect the allowance and provision for lease and loan losses.
Loss experience, first payment default histories, contractual delinquency of lease and loan receivables and OBS Loans and management’s judgment are factors used in assessing the overall adequacy of the allowance and liability and the resulting provision for lease and loan losses. Changes in estimates and assumptions can significantly affect the allowance, liability and provision for lease and loan losses.
As of December 31, 2024, approximately 65% of the Company’s pawn loans were collateralized with jewelry, which is primarily gold, and 52% of its inventories consisted of jewelry, which is also primarily gold. The Company sells significant quantities of gold, other precious metals and diamonds acquired through collateral forfeitures or direct purchases from customers.
As of December 31, 2025, approximately 75% of the Company’s pawn loans were collateralized with jewelry, which is primarily gold, and 62% of its inventories consisted of jewelry, which is also primarily gold. The Company sells significant quantities of gold, other precious metals and diamonds acquired through collateral forfeitures or direct purchases from customers.
The inability to successfully identify attractive acquisition targets, realize administrative and operational synergies and integrate completed acquisitions could adversely affect results. The Company has historically grown in large part through strategic acquisitions, and the Company’s strategy is to continue to pursue attractive acquisition opportunities if and when they become available.
The inability to successfully identify attractive acquisition targets, realize anticipated benefits from and integrate completed acquisitions could adversely affect results. The Company has historically grown in large part through strategic acquisitions, and the Company’s strategy is to continue to pursue attractive acquisition opportunities if and when they become available.
The Company could incur substantial losses and its business operations could be disrupted if the Company is unable to effectively identify, manage, monitor and mitigate financial risks, such as credit risk, interest rate risk, prepayment risk, liquidity risk and other market-related risks, as well as regulatory and operational risks related to its business, assets and liabilities.
The Company could incur substantial losses and its business operations could be disrupted if the Company does not effectively identify, manage, monitor and mitigate financial risks, such as credit risk, interest rate risk, commodity pricing risk, prepayment risk, liquidity risk and other market-related risks, as well as regulatory and operational risks related to its business, assets and liabilities.
If AFF is unable to fully collect on its leases, RISAs and bank loans, the performance of its lease and loan portfolio will be adversely affected, which could result in additional provisions for lease and loan losses and loss of revenue, cash flow and profitability. Item 1B. Unresolved Staff Comments None.
If AFF is unable to fully collect on its leases, RISAs and bank loans, the performance of its lease and loan portfolio will be adversely affected, which could result in additional provisions for lease and loan losses and loss of revenue, cash flow and profitability.
In addition, if the tax authorities in jurisdictions where AFF is already subject to sales tax or other indirect tax obligations were to successfully challenge AFF’s positions, AFF’s tax liability could increase substantially. 33 Table of Contents General Economic and Market Risks General economic conditions may have a material adverse impact on the Company’s business and financial results.
In addition, if the tax authorities in jurisdictions where the Company is already subject to sales tax or other indirect tax obligations were to successfully challenge the Company’s positions, the Company’s tax liability could increase substantially. General Economic and Market Risks General economic conditions may have a material adverse impact on the Company’s business and financial results.
The Company derives significant revenue, earnings and cash flow from operations in Latin America, where business operations are transacted primarily in Mexican pesos, and in Guatemalan quetzales and Colombian pesos to a lesser extent.
The Company derives significant revenue, earnings and cash flow from operations in Latin America and the U.K., where business operations are transacted primarily in Mexican pesos and British pounds sterling, and to a lesser extent in Guatemalan quetzales and Colombian pesos.
It is possible that the Company will experience lease and loan losses that are different from its current estimates.
It is possible that the Company will experience losses that are different from its current estimates.
Concerns over the long-term impacts of climate change have led and will continue to lead to governmental efforts around the world to mitigate those impacts. Consumers and businesses are also changing their behavior and business preferences as a result of these concerns.
Climate change could adversely affect the Company’s business and damage its reputation. Concerns over the long-term impacts of climate change have led and will continue to lead to governmental efforts around the world to mitigate those impacts. Consumers and businesses are also changing their behavior and business preferences as a result of these concerns.
As in many developing markets, there are also uncertainties as to how both local law and U.S. federal law is applied, including laws related to commercial transactions and foreign investment.
As in many developing markets, there are also uncertainties in the Latin American countries the Company operates in as to how both local law and U.S. federal law is applied, including laws related to commercial transactions and foreign investment.
Failure to comply with such tax provisions or a successful assertion by a jurisdiction requiring AFF to collect taxes in a location or for transactions where or for which AFF presently does not, could result in substantial tax liabilities, including those for past sales and leases, as well as penalties and interest.
Failure to comply with such tax provisions or a successful assertion by a jurisdiction requiring the Company to collect taxes in a location or for transactions where or for which the Company presently does not, could result in substantial tax liabilities as well as penalties and interest.
AFF depends on its merchants to drive transaction volume by supporting its platform over alternative payment options for credit-constrained customers and by prominently presenting AFF’s platform as an attractive payment option for these customers.
AFF’s transaction volume is dependent on the support of its platform by its merchant partners. AFF depends on its merchants to drive transaction volume by supporting its platform over alternative payment options for credit-constrained customers and by prominently presenting AFF’s platform as an attractive payment option for these customers.
The current economic environment, characterized by rising inflation, higher interest rates, declines in consumer confidence and uncertainly about economic stability and a potential recession, has increased demand for pawn loans in the U.S. Conversely these conditions, coupled with tighter decisioning, adversely affected merchant sales volumes in certain categories and demand in general for AFF’s products in 2024.
The current economic environment, characterized by elevated inflation, elevated interest rates, declines in consumer confidence and uncertainty about economic stability, has increased demand for pawn loans in the U.S. Conversely these conditions, coupled with tighter decisioning, adversely affected merchant sales volumes in certain categories and demand in general for AFF’s products in 2025.
Therefore, it is possible that the Company’s consumer arbitration agreements will be rendered unenforceable. Additionally, Congress has considered legislation that would generally limit or prohibit mandatory dispute arbitration in certain consumer contracts, and it has adopted such prohibitions with respect to certain mortgage loans and certain consumer loans to active-duty members of the military and their dependents.
Additionally, Congress has considered legislation that would generally limit or prohibit mandatory dispute arbitration in certain consumer contracts, and it has adopted such prohibitions with respect to certain mortgage loans and certain consumer loans to active-duty members of the military and their dependents.
The Company is also subject to anti-money laundering laws in both the United States and Latin America and anti-terrorism financing laws and regulations, including the Bank Secrecy Act and the Patriot Act .
The Company is also subject to anti-money laundering laws in the U.S., Latin America and the U.K. and anti-terrorism financing laws and regulations, including the Bank Secrecy Act and the Patriot Act .
The sale and pawning of firearms, ammunition and certain related accessories is subject to current and potential regulation, which could have a material adverse effect on the Company’s reputation, business, prospects, results of operations and financial condition.
Any of these events could have a material adverse effect on the Company’s business, prospects, results of operations and financial condition and could impair the Company’s ability to continue current operations. 29 Table of Contents The sale and pawning of firearms, ammunition and certain related accessories is subject to current and potential regulation, which could have a material adverse effect on the Company’s reputation, business, prospects, results of operations and financial condition.
If AFF is not able to retain its existing merchant partners, attract additional merchants and expand revenue and volume of transactions from existing merchants, it will not be able to continue to grow its business, and its business, results of operations, financial condition and future prospects would be materially and adversely affected. 35 Table of Contents AFF’s transaction volume is dependent on the support of its platform by its merchant partners.
If AFF is not able to retain its existing merchant partners, attract additional merchants and expand revenue and volume of transactions from existing merchants, it will not be able to continue to grow its business, and its business, results of operations, financial condition and future prospects would be materially and adversely affected.
If the Company’s estimates and assumptions prove incorrect and its allowance for lease and loan losses are insufficient, it may incur net charge-offs in excess of its reserves, or it could be required to increase its provision for lease and loan losses, either of which would adversely affect its results of operations. The Company is subject to goodwill impairment risk.
If the Company’s estimates and assumptions prove incorrect and its allowance for lease and loan losses and liability for off-balance sheet credit exposure are insufficient, it may incur net charge-offs in excess of its reserves or liability, or it could be required to increase its provision for lease and loan losses, either of which would adversely affect its results of operations.
At December 31, 2024, the Company had $1,787.2 million of goodwill on its consolidated balance sheet, all of which represents assets capitalized in connection with the Company’s acquisitions and business combinations. Accounting for goodwill requires significant management estimates and judgment.
The Company is subject to goodwill impairment risk. At December 31, 2025, the Company had $2,023.4 million of goodwill on its consolidated balance sheet, all of which represents assets capitalized in connection with the Company’s acquisitions and business combinations. Accounting for goodwill requires significant management estimates and judgment.
Furthermore, federal, state or locally legislated increases in the minimum wage, as well as increases in additional labor cost components such as employee benefit costs, workers’ compensation insurance rates, compliance costs, fines and, in Mexico, additional costs associated with labor agreements, unions and profit sharing requirements, would increase the Company’s labor costs, which could have a material adverse effect on its business, prospects, results of operations and financial condition.
Furthermore, federal, state or locally legislated increases in the minimum wage, as well as increases in additional labor cost components such as employee benefit costs, workers’ compensation insurance rates, compliance costs, fines and, in Mexico, additional costs associated with labor agreements, unions and profit sharing requirements, would increase the Company’s labor costs, which could have a material adverse effect on its business, prospects, results of operations and financial condition. 23 Table of Contents The Company’s business depends on the uninterrupted operation of the Company’s facilities, systems and business functions, including its information technology and other business systems, and reliance on other companies to provide key components of its business systems.
The Bank is supervised and examined by both the State of Utah, which charters the Bank, and the FDIC. If the FDIC or the Utah Department of Financial Institutions considers any aspect of the Bank-originated products to be inconsistent with its guidance, the Bank may be required to alter or discontinue the product.
If the FDIC or the Utah Department of Financial Institutions considers any aspect of the Bank-originated products to be inconsistent with its guidance, the Bank may be required to alter or discontinue the product.
This estimate is highly dependent upon the reasonableness of its assumptions and the predictability of the relationships that drive the results of its valuation methodologies. The Company performs a quantitative analysis to compute historical losses to estimate the allowance for future lease and loan losses.
These estimates are highly dependent upon the reasonableness of its assumptions and the predictability of the relationships that drive the results of its valuation methodologies. The Company performs a quantitative analysis to compute historical losses to estimate the allowance for future lease and loan losses and the liability for off-balance sheet credit exposure.
AFF also competes with many of these retailers for consumers desiring to purchase lower cost merchandise for cash or on credit. Furthermore, many of AFF’s merchants operate at brick-and-mortar retail locations that are subject to increased competition from online or lower-cost competitors. In Mexico, the Company’s pawn stores also compete directly with government-sponsored or affiliated non-profit foundations operating pawn stores.
Furthermore, many of AFF’s merchants operate at brick-and-mortar retail locations that are subject to increased competition from online or lower-cost competitors. 21 Table of Contents In Mexico, the Company’s pawn stores also compete directly with government-sponsored or affiliated non-profit foundations operating pawn stores.
If the legal structure underlying AFF’s relationship with the Bank was successfully challenged, it may be found to be in violation of state licensing requirements and state laws regulating interest rates and fees and disclosures.
AFF relies on its originating bank partner model to comply with various federal, state and other laws. If the legal structure underlying AFF’s relationship with the Bank was successfully challenged, it may be found to be in violation of state licensing requirements and state laws regulating interest rates and fees and disclosures.
In addition, the laws of certain foreign countries may not protect intellectual property rights to the same extent as the laws of the U.S. The costs required to protect the Company’s intellectual property rights and trademarks could be substantial.
In addition, the laws of certain foreign countries may not protect intellectual property rights to the same extent as the laws of the U.S.
In addition, the Company may incur property, casualty or other losses not covered by insurance. Losses not covered by insurance could be substantial and may increase the Company’s expenses, which could harm the Company’s results of operations and financial condition.
In addition, the Company may incur property, casualty or other losses not covered by insurance. Losses not covered by insurance could be substantial and may increase the Company’s expenses, which could harm the Company’s results of operations and financial condition. Furthermore, the frequency and severity of these weather events and natural disasters may increase as a result of climate change.
The Company’s businesses are typically subject to seasonality, which causes the Company’s revenues and operating cash flows to fluctuate and may adversely affect the Company’s ability to borrow on its unsecured credit facilities, service its debt obligations and fund its operations.
The costs required to protect the Company’s intellectual property rights and trademarks could be substantial. 25 Table of Contents The Company’s businesses are typically subject to seasonality, which causes the Company’s revenues and operating cash flows to fluctuate and may adversely affect the Company’s ability to borrow on its unsecured credit facilities, service its debt obligations and fund its operations.
In the event that AFF’s relationship with the Bank were terminated and it is unable to substitute another one of its products at the merchants that utilize such bank loan products, its business, results of operations, financial condition and future prospects may be materially affected.
In the event that AFF’s relationship with the Bank were terminated and it is unable to substitute another one of its products at the merchants that utilize such bank loan products, its business, results of operations, financial condition and future prospects may be materially affected. 36 Table of Contents AFF’s business relies extensively on its proprietary decisioning platform, and if such platform is not effective it could have a material impact on AFF’s business, financial condition and results of operations.
Thus, the Company’s arbitration agreements, if enforced, have the effect of mitigating, but not eliminating, class and collective action liability. 28 Table of Contents However, a number of state and federal circuit courts and the National Labor Relations Board have concluded that arbitration agreements with consumer class action waivers are “unconscionable” and hence unenforceable, particularly where a small dollar amount is in controversy on an individual basis.
However, a number of state and federal circuit courts and the National Labor Relations Board have concluded that arbitration agreements with consumer class action waivers are “unconscionable” and hence unenforceable, particularly where a small dollar amount is in controversy on an individual basis. Therefore, it is possible that the Company’s consumer arbitration agreements will be rendered unenforceable.
The adoption of new laws or regulations or adverse changes in, or the interpretation or enforcement of, existing laws or regulations affecting the Company’s products and services could adversely affect its financial condition and operating results.
See “Item 1. Business—Governmental Regulation” for a further discussion of the regulatory authority of the CFPB. The adoption of new laws or regulations or adverse changes in, or the interpretation or enforcement of, existing laws or regulations affecting the Company’s products and services could adversely affect its financial condition and operating results.
AFF obtains additional personal information, including social security numbers, dates of birth, bank account and payment card information and data from consumer reporting agencies (including credit report information) from its customers, increasing the 22 Table of Contents potential risk of unauthorized access to such confidential information.
While the Company’s pawn business has historically acquired and maintained minimal personal information (primarily name, address, government identification numbers and date of birth), AFF obtains additional personal information, including social security numbers, dates of birth, bank account and payment card information and data from consumer reporting agencies (including credit report information) from its customers, increasing the potential risk of unauthorized access to such confidential information.
If the Company were to lose any of its licenses to conduct its business, it could result in the temporary or permanent closure of stores and/or cessation of consumer lending activities, any of which could adversely affect the Company’s business, results of operations and cash flows. 30 Table of Contents Foreign Operations Risks The Company’s financial position and results of operations may change significantly due to fluctuations in currency exchange rates in Latin American markets.
If the Company were to lose any of its licenses to conduct its business, it could result in the temporary or permanent closure of stores and/or cessation of consumer lending activities, any of which could adversely affect the Company’s business, results of operations and cash flows.
Further, if the Company’s growth is not effectively managed, the Company’s business, financial condition, results of operations and future prospects could be negatively affected, and the Company may not be able to continue to implement its business strategy and successfully conduct its operations. 21 Table of Contents Operational Risks The Company depends on its senior management and may not be able to retain those employees or recruit additional qualified personnel.
Further, if the Company’s growth is not effectively managed, the Company’s business, financial condition, results of operations and future prospects could be negatively affected, and the Company may not be able to continue to implement its business strategy and successfully conduct its operations.
Furthermore, federal and state regulators and many federal and state laws and regulations require notice of any data security breaches that involve personal information. These mandatory disclosures are costly to implement and often lead to widespread negative publicity, which may cause consumers to lose confidence in the effectiveness of the Company’s data security measures.
These mandatory disclosures are costly to implement and often lead to widespread negative publicity, which may cause consumers to lose confidence in the effectiveness of the Company’s data security measures.
As of December 31, 2024, including the Company's senior unsecured notes and the Company’s unsecured credit facilities, the Company had outstanding principal indebtedness of $1,748.0 million and availability of $528.9 million under its unsecured credit facilities, subject to certain financial covenants.
As of December 31, 2025, the Company had outstanding principal indebtedness of $2,224.0 million and availability of $178.0 million under its credit facilities, subject to certain financial covenants.
Third-party purchasers of loans facilitated through AFF’s platform also may be subject to scrutiny or similar litigation, whether based upon the inability to rely upon the “valid when made” doctrine or because a party other than the Bank is deemed the true lender.
Third-party purchasers of loans facilitated through AFF’s platform also may be subject to scrutiny or similar litigation, whether based upon the inability to rely upon the “valid when made” doctrine or because a party other than the Bank is deemed the true lender. 37 Table of Contents The FDIC has issued examination guidance affecting AFF’s unaffiliated third-party lender and these or subsequent new rules and regulations could have a significant impact on AFF’s Bank-originated products.
In addition, AFF owns customer service call centers operating in Jamaica and Mexico and utilizes third-party call center services located in the Dominican Republic and Mexico.
The Company plans to open or acquire additional pawn stores in Latin America and the U.K. in the future. In addition, AFF owns customer service call centers operating in Jamaica and Mexico and utilizes third-party call center services located in the Dominican Republic.
These states or their respective regulatory bodies have established criteria the Company must meet in order to obtain, maintain, and renew those licenses.
Many of these regulatory bodies require registration and licenses of stores and employees to conduct the Company’s business and have established criteria the Company must meet in order to obtain, maintain, and renew those licenses.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Audit Committee also monitors the Company’s compliance with legal and regulatory requirements and the risks associated therewith. On a regular basis, the Audit Committee reviews with senior management significant areas of risk exposure involving cybersecurity.
Biggest changeThe Audit Committee also monitors the Company’s compliance with legal and regulatory requirements and the risks associated therewith. On a regular basis, the Audit Committee reviews significant areas of risk exposure involving cybersecurity with senior management.
The Company has training and awareness programs designed to educate its employees about cybersecurity risks and how to protect the Company, its customers and themselves from cyberattacks and to keep its employees informed about cybersecurity threats and how to stay safe online, including secure access practice, phishing schemes, remote work and response to suspicious activities. 37 Table of Contents The cybersecurity program of the Company interfaces with other functional areas within the Company, including but not limited to the Company’s business segments and information technology, legal, risk, human resources and internal audit departments, as well as external third-party partners, to identify and understand potential cybersecurity threats.
The Company has training and awareness programs designed to educate its employees about cybersecurity risks and how to protect the Company, its customers and themselves from cyberattacks and to keep its employees informed about cybersecurity threats and how to stay safe online, including secure access practice, phishing schemes, remote work and response to suspicious activities. 38 Table of Contents The cybersecurity program of the Company interfaces with other functional areas within the Company, including but not limited to the Company’s business segments and information technology, legal, risk, human resources and internal audit departments, as well as external third-party partners, to identify and understand potential cybersecurity threats.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeBusiness—Pawn Store Locations.” 38 Table of Contents The following table details material corporate locations leased by the Company (dollars in thousands): Description Location Square Footage Lease Expiration Date Monthly Rental Payment Administrative offices Monterrey, Mexico 50,000 July 31, 2027 $ 61 Administrative offices Coppell, Texas 26,000 June 30, 2029 46 Administrative offices Mexico City, Mexico 8,000 March 31, 2025 22 Most leases require the Company to maintain the property and pay the cost of insurance and property taxes.
Biggest changeBusiness—Pawn Store Locations.” 39 Table of Contents The following table details material corporate office locations leased by the Company (dollars in thousands): Description Location Square Footage Lease Expiration Date Monthly Rental Payment Administrative offices Monterrey, Mexico 50,000 July 31, 2027 $ 56 Administrative offices Coppell, Texas 26,000 June 30, 2029 46 Administrative offices Mexico City, Mexico 8,000 August 31, 2030 23 Administrative offices Sutton, England 7,000 April 30, 2030 14 Most leases require the Company to maintain the property and pay the cost of insurance and property taxes.
All store leases provide for specified periodic rental payments ranging from approximately $1,000 to $27,000 per month as of December 31, 2024. In addition, the Company leases call center space in Jamaica and Mexico to support the AFF customer service operations. For more information about the Company’s pawn store locations, see “Item 1.
All store leases provide for specified periodic rental payments ranging from approximately $1,000 to $40,000 per month as of December 31, 2025. In addition, the Company leases call center space in Jamaica and Mexico to support the AFF customer service operations. For more information about the Company’s pawn store locations, see “Item 1.
Leased facilities are generally leased for a term of three to five years with one or more options to renew. A majority of the store leases can be terminated early upon an adverse change in law which negatively affects the store’s profitability. The Company’s leases expire on dates ranging from 2025 to 2062.
Leased facilities are generally leased for a term of three to five years with one or more options to renew. A majority of the store leases can be terminated early upon an adverse change in law which negatively affects the store’s profitability. The Company’s leases expire on dates ranging from 2026 to 2084.
As of December 31, 2024, the Company owned the real estate and buildings for 400 of its pawn stores and its Company’s corporate headquarters in Fort Worth, Texas. As of December 31, 2024, the Company leased 2,638 pawn store locations that were open or were in the process of opening.
As of December 31, 2025, the Company owned the real estate and buildings for 443 of its pawn stores and its Company’s corporate headquarters in Fort Worth, Texas. As of December 31, 2025, the Company leased 2,900 pawn store locations that were open or were in the process of opening.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIssuer Purchases of Equity Securities The following table provides information about purchases made by the Company of shares of its common stock during the three months ended December 31, 2024 (dollars in thousands, except per share amounts): Total Number Of Shares Purchased Average Price Paid Per Share Total Number Of Shares Purchased As Part Of Publicly Announced Plans Approximate Dollar Value Of Shares That May Yet Be Purchased Under The Plans (1) October 1 through October 31, 2024 — $ — — $ 115,000 November 1 through November 30, 2024 — — — 115,000 December 1 through December 31, 2024 — — — 115,000 Total — — — (1) In July 2023, the Company’s Board of Directors authorized a common stock repurchase program for up to $200.0 million of the Company’s outstanding common stock, of which $115.0 million is currently remaining.
Biggest changeIssuer Purchases of Equity Securities The following table provides information about purchases made by the Company of shares of its common stock during the three months ended December 31, 2025 (dollars in thousands, except per share amounts): Total Number Of Shares Purchased Average Price Paid Per Share (1) Total Number Of Shares Purchased As Part Of Publicly Announced Plans (2) Approximate Dollar Value Of Shares That May Yet Be Purchased Under The Plans (1) (2) October 1 through October 31, 2025 — $ — — $ 25,391 November 1 through November 30, 2025 157,032 161.69 157,032 150,000 December 1 through December 31, 2025 — — — 150,000 Total 157,032 161.69 157,032 (1) The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022.
Recent Sales of Unregistered Securities None. 40 Table of Contents Performance Graph The graph set forth below compares the cumulative total stockholder return on the common stock of the Company for the period from December 31, 2019 through December 31, 2024, with the cumulative total return on the Standard & Poor’s (“S&P”) MidCap 400 Index and the Russell 2000 Index, representing broad-based equity market indexes, and the S&P MidCap 400 Financials Index and the S&P MidCap 400 Consumer Discretionary Index, representing industry-based indexes, over the same period (assuming the investment of $100 on December 31, 2019 and assuming the reinvestment of all dividends on the date paid).
Recent Sales of Unregistered Securities None. 41 Table of Contents Performance Graph The graph set forth below compares the cumulative total stockholder return on the common stock of the Company for the period from December 31, 2020 through December 31, 2025, with the cumulative total return on the Standard & Poor’s (“S&P”) MidCap 400 Index and the Russell 2000 Index, representing broad-based equity market indexes, and the S&P MidCap 400 Financials Index and the S&P MidCap 400 Consumer Discretionary Index, representing industry-based indexes, over the same period (assuming the investment of $100 on December 31, 2020 and assuming the reinvestment of all dividends on the date paid).
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities General Market Information The Company’s common stock is quoted on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “FCFS.” On January 29, 2025, there were approximately 199 stockholders of record of the Company’s common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities General Market Information The Company’s common stock is quoted on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “FCFS.” On January 28, 2026, there were 197 stockholders of record of the Company’s common stock.
In January 2025, the Company’s Board declared a $0.38 per share first quarter cash dividend on common shares outstanding, or an aggregate of $17.0 million based on the December 31, 2024 share count, to be paid on February 28, 2025 to stockholders of record as of February 14, 2025.
In January 2026, the Board declared a $0.42 per share first quarter cash dividend on common shares outstanding, or an aggregate of $18.5 million based on the December 31, 2025 share count, to be paid on February 27, 2026 to stockholders of record as of February 18, 2026.
Added
During the three months ended December 31, 2025, the Company reflected the applicable excise tax in treasury stock as part of the cost basis of the stock repurchased and recorded a corresponding liability for the excise taxes payable in accrued expenses and other liabilities on the consolidated balance sheet. All dollar amounts presented exclude such excise taxes.
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(2) In July 2023, the Board authorized a common stock repurchase program for up to $200.0 million of the Company’s outstanding common stock.
Added
During 2025, the Company repurchased a total of 912,000 shares of common stock at an aggregate cost of $115.0 million and an average cost per share of $126.03 which completed the share repurchase program authorized in July 2023.
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In October 2025, the Board authorized an additional common stock repurchase program for up to $150.0 million of the Company’s outstanding common stock, of which the entire $150.0 million is currently remaining.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

90 edited+42 added−30 removed62 unchanged
Biggest changeExcluding these intersegment transactions, consolidated net leased merchandise as of December 31, 2024 and 2023 totaled $128.4 million and $171.2 million, respectively. 54 Table of Contents The following table details the changes in the allowance for lease and loan losses and other portfolio metrics during the year ended December 31, 2024 as compared to the year ended December 31, 2023 (dollars in thousands): Year Ended December 31, Increase / 2024 2023 (Decrease) Allowance for lease losses: Balance at beginning of period $ 95,752 $ 79,576 20 % Provision for lease losses (1) 163,937 177,418 (8) % Charge-offs (186,123) (167,952) 11 % Recoveries 7,095 6,710 6 % Balance at end of period $ 80,661 $ 95,752 (16) % Leased merchandise portfolio metrics: Provision rate (2) 29 % 28 % Average monthly net charge-off rate (3) 6.3 % 5.4 % Delinquency rate (4) 24.4 % 21.7 % Allowance for loan losses: Balance at beginning of period $ 96,454 $ 84,833 14 % Provision for loan losses 143,827 123,030 17 % Charge-offs (130,812) (117,961) 11 % Recoveries 7,536 6,552 15 % Balance at end of period $ 117,005 $ 96,454 21 % Finance receivables portfolio metrics: Provision rate (2) 28 % 30 % Average monthly net charge-off rate (3) 4.3 % 4.7 % Delinquency rate (4) 20.0 % 21.8 % (1) Includes $0.5 million and $1.6 million of provision for lease losses from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation.
Biggest changeThe following table details the changes in the allowance for lease and loan losses and other portfolio metrics during the year ended December 31, 2025 as compared to the year ended December 31, 2024 (dollars in thousands): Year ended December 31, 2025 2024 Leased merchandise portfolio metrics: Provision rate (1) 27.7 % 28.8 % Average monthly net charge-off rate (2) 5.9 % 6.3 % Delinquency rate (3) 23.5 % 24.4 % Finance receivables portfolio metrics: Provision rate (1) 27.8 % 28.2 % Average monthly net charge-off rate (2) 5.1 % 4.3 % Delinquency rate (3) 21.2 % 20.0 % (1) Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations General The Company’s primary business line is the operation of retail pawn stores, also known as “pawnshops,” which focus on serving cash- and credit-constrained consumers. The Company is the leading operator of pawn stores in the U.S. and Latin America.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations General The Company’s primary business line is the operation of retail pawn stores, also known as “pawnshops,” which focus on serving cash- and credit-constrained consumers. The Company is the leading operator of pawn stores in the U.S., Latin America and the U.K.
The Company believes that net cash provided by operating activities and available and unused funds under its revolving unsecured credit facilities will be adequate to meet its liquidity and capital needs for these items over the next 12 months and also in the longer term beyond the next 12 months.
The Company believes that net cash provided by operating activities and available and unused funds under its revolving credit facilities will be adequate to meet its liquidity and capital needs for these items over the next 12 months and also in the longer term beyond the next 12 months.
The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.
The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America and the U.K., which are transacted in local currencies in Mexico, Guatemala, Colombia and the U.K. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.
The Company has a partnership with a Utah state-chartered bank that requires the Company to purchase the rights to the cash flows associated with finance receivables marketed to retail consumers on the bank’s behalf. The bank establishes the underwriting criteria for the finance receivables originated by the bank.
The Company has a partnership with a Utah state-chartered bank that requires the Company to purchase the rights to the cash flows associated with certain finance receivables marketed to retail consumers on the bank’s behalf. The bank establishes the underwriting criteria for the finance receivables originated by the bank.
The Company’s liquidity is affected by a number of factors, including changes in general customer traffic and demand, pawn loan balances, loan-to-value ratios, collection of pawn fees, merchandise sales, inventory levels, LTO merchandise, finance receivable balances, collection of lease and finance receivable payments, seasonality, operating expenses, administrative expenses, expenses related to merger and acquisition activities, litigation-related expenses, tax rates, gold prices, foreign currency exchange rates and the pace of new pawn store expansion and acquisitions.
The Company’s liquidity is affected by a number of factors, including changes in general customer traffic and demand, pawn loan balances, collection of pawn fees, merchandise sales, inventory levels, LTO merchandise, finance receivable balances, collection of lease and finance receivable payments, seasonality, operating expenses, administrative expenses, expenses related to merger and acquisition activities, litigation-related expenses, tax rates, gold prices, foreign currency exchange rates and the pace of new pawn store expansion and acquisitions.
The allowance for loan losses is maintained at a level considered appropriate to cover expected lifetime losses on the finance receivable portfolio, and the appropriateness of the allowance is evaluated at each period end. 43 Table of Contents The Company charges off finance receivables when a receivable is 90 days or more contractually past due.
The allowance for loan 44 Table of Contents losses is maintained at a level considered appropriate to cover expected lifetime losses on the finance receivable portfolio, and the appropriateness of the allowance is evaluated at each period end. The Company charges off finance receivables when a receivable is 90 days or more contractually past due.
Retail sales are seasonally higher in the fourth quarter as a result of holiday shopping and, to a lesser extent, in the first quarter due to the disbursement of tax refunds in the U.S. Recent Accounting Pronouncements See discussion in Note 2 of Notes to Consolidated Financial Statements. 65 Table of Contents
Retail sales are seasonally higher in the fourth quarter as a result of holiday shopping and, to a lesser extent, in the first quarter due to the disbursement of tax refunds in the U.S. Recent Accounting Pronouncements See discussion in Note 2 of Notes to Consolidated Financial Statements. 64 Table of Contents
The Company’s reporting units, which are tested for impairment, are U.S. pawn, Latin America pawn and retail POS payment solutions.
The Company’s reporting units, which are tested for impairment, are U.S. pawn, Latin America pawn, U.K. pawn and retail POS payment solutions.
The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods.
The Company does not consider these items to be related to the organic operations of the Company’s businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the Company. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods.
AFF’s retail partners provide consumer goods and services to their customers and use AFF’s LTO and retail finance solutions to facilitate payments on such transactions. The Company’s two business lines are organized into three reportable segments.
AFF’s retail partners provide consumer goods and services to their customers and use AFF’s LTO and retail finance solutions to facilitate payments on such transactions. The Company’s two business lines are organized into four reportable segments.
These cash balances, which are primarily held in Mexican pesos, are associated with foreign earnings the Company has asserted are indefinitely reinvested and which the Company primarily plans to use to support its continued growth plans outside the U.S. through funding of capital expenditures, acquisitions, operating expenses or other similar cash needs of the Company’s foreign operations.
These cash balances, which are primarily held in Mexican pesos and British pounds sterling, are associated with foreign earnings the Company has asserted are indefinitely reinvested and which the Company plans to use to support its continued growth plans outside the U.S. through funding of capital expenditures, acquisitions, operating expenses or other similar cash needs of the Company’s foreign operations.
The following charts present net income, adjusted net income, diluted earnings per share, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, revenue and adjusted revenue for the years ended December 31, 2024, 2023 and 2022 (in millions, except per share amounts): * Non-GAAP financial measures.
The following charts present net income, adjusted net income, diluted earnings per share, adjusted diluted earnings per share, EBITDA, adjusted EBITDA and revenue for the years ended December 31, 2025, 2024 and 2023 (in millions, except per share amounts): * Non-GAAP financial measures.
The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results.
The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America and the U.K., consistent with how the Company’s management evaluates such performance and operating results.
Leased merchandise contracts can typically be renewed for weekly, bi-weekly, semi-monthly, and monthly renewal periods and are generally renewed for between six and 24 months. Leased merchandise is stated at depreciated cost. The Company depreciates leased merchandise over the life of the lease and assumes no salvage value. Depreciation is accelerated upon an early buyout.
Leased merchandise contracts can typically be renewed for weekly, bi-weekly, semi-monthly, and monthly renewal periods and are generally renewed for between six and 24 months. Leased merchandise is stated at depreciated cost. The Company depreciates leased merchandise over the life of the lease and assumes no salvage value. Depreciation is 43 Table of Contents accelerated upon an early buyout.
Pawn stores help customers meet small short-term cash needs by providing non-recourse pawn loans and buying merchandise directly from customers. Personal property, such as jewelry, electronics, tools, appliances, sporting goods and musical instruments, is pledged and held as collateral for the pawn loans over the typical 30-day term of the loan.
Pawn stores help customers meet small short-term cash needs by providing non-recourse pawn loans and buying merchandise directly from customers. Personal property, such as jewelry, electronics, tools, appliances, sporting goods and musical instruments, is pledged and held as collateral for the pawn loans over the term of the loan.
During 2024, the Company received $500.0 million in proceeds from the private offering of senior unsecured notes which was used to repay a portion of the outstanding balance on the Credit Facility, after payment of fees and expenses related to the offering. The Company paid debt issuance costs of $10.4 million during 2024 compared to $0.3 million during 2023.
During 2024, the Company received $500.0 million in proceeds from the private offering of senior unsecured notes which was used to repay a portion of the outstanding balance on the Credit Facility, after payment of fees and expenses related to the offering. The Company paid debt issuance costs of $10.4 million during 2024.
The characteristics of the Company’s current assets, specifically the ability to rapidly liquidate gold jewelry inventory, which accounts for 52% of total inventory, give the Company flexibility to quickly increase cash flow if necessary.
The characteristics of the Company’s current assets, specifically the ability to rapidly liquidate gold jewelry inventory, which accounts for 62% of total inventory, give the Company flexibility to quickly increase cash flow if necessary.
(3) Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
(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.
All of the Company’s leased merchandise represents on-lease merchandise and all leases are operating leases. 42 Table of Contents Lease income is recognized over the lease term and is recorded net of any sales taxes collected. Charges for late fees and insufficient fund fees are recognized as income when collected.
All of the Company’s leased merchandise represents on-lease merchandise and all leases are operating leases. Lease income is recognized over the lease term and is recorded net of any sales taxes collected. Charges for late fees and insufficient fund fees are recognized as income when collected.
For similar operating and financial data and discussion of the Company’s 2023 results compared to its 2022 results, refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under Part II of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 5, 2024.
For similar operating and financial data and discussion of the Company’s 2024 results compared to its 2023 results, refer to Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under Part II of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 3, 2025.
Liquidity and Capital Resources Material Capital Requirements The Company’s primary capital requirements include: • The expansion of pawn operations through growth of pawn receivables and inventories in existing stores, new store openings, strategic acquisitions of pawn stores and purchases of underlying real estate at existing locations; • The expansion of retail POS payment solutions operations through growth of the business generated from new and existing merchant partners; and • The return of capital to shareholders through dividends and stock repurchases.
Liquidity and Capital Resources Material Capital Requirements The Company’s primary capital requirements include: • Expansion of pawn operations through growth of pawn receivables and inventories in existing stores, new store openings, strategic acquisitions and purchases of underlying real estate at new and existing locations; • Growth of earning assets in the retail POS payment solutions operations through transaction volumes generated from new and existing merchant partners; and • Return of capital to shareholders through dividends and stock repurchases.
For 2025, the Company expects to continue adding store locations through new (“de novo”) store openings and acquisitions. 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.
For 2026, the Company expects to continue adding store locations through new store openings and acquisitions. 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.
However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other 63 Table of Contents income statement data prepared in accordance with GAAP.
However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP.
The increase was primarily due to the higher year-over-year finance receivable balances, 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 during 2024, some of which are provided at lower interest rates.
The increase was primarily due to the higher average finance receivable balances outstanding during 2025 compared to 2024, 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, some of which are provided at lower interest rates.
(4) 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). 55 Table of Contents LTO Operations Leased merchandise, before allowance for lease losses, decreased 22% as of December 31, 2024 compared to December 31, 2023.
(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). 53 Table of Contents LTO Operations Leased merchandise, before allowance for lease losses, decreased 14% as of December 31, 2025 compared to December 31, 2024.
Depending on the severity and persistence of these inflationary pressures, the Company could see a negative impact on its customers’ ability to pay for its goods and services, including an impact on the collectability of its accounts receivable, which could result in increased charge-offs of AFF’s finance receivables and leased merchandise as well as increases in wages and other operating costs.
Depending on the severity and persistence of these inflationary pressures, the Company could see a negative impact on its customers’ ability to pay for its goods and services, including an impact on the collectability of its accounts receivable, which could result in increased charge-offs of AFF’s finance receivables and leased merchandise.
Business—Governmental Regulation.” If needed, the Company could seek to raise additional funds from a variety of sources, including, but not limited to, repatriation of excess cash held in Latin America, the sale of assets, reductions in operating expenses, capital expenditures and dividends, the forbearance or deferral of operating expenses, the issuance of debt or equity utilizing other structured financing arrangements, the leveraging of currently unencumbered real estate owned by the Company and/or changes to its management 59 Table of Contents of current assets.
Business—Governmental Regulation.” If needed, the Company could seek to raise additional funds from a variety of sources, including, but not limited to, the sale of assets, reductions in operating expenses, capital expenditures and dividends, the forbearance or deferral of certain operating expenses, the issuance of debt or equity securities, utilizing other structured financing arrangements, the leveraging of currently unencumbered real estate owned by the Company and/or changes to its management of current assets.
Inventories aged greater than one year in Latin America were 1% at both December 31, 2024 and 2023. 51 Table of Contents Pawn Lending Operations Latin America pawn loan receivables decreased 5% (13% increase on a constant currency basis) as of December 31, 2024 compared to December 31, 2023.
Inventories aged greater than one year in Latin America were 1.4% at both December 31, 2025 and 2024. 51 Table of Contents Pawn Lending Operations Latin America pawn loan receivables increased 38% (23% increase on a constant currency basis) as of December 31, 2025 compared to December 31, 2024.
As of December 31, 2024, the Company’s primary sources of liquidity were $175.1 million in cash and cash equivalents and $528.9 million of available and unused funds under the Company's revolving unsecured credit facilities, subject to certain financial covenants (see Note 11 of Notes to Consolidated Financial Statements).
As of December 31, 2025, the Company’s primary sources of liquidity were $125.2 million in cash and cash equivalents, $171.9 million of available and unused funds under the Company's revolving unsecured credit facilities and $6.1 million of available and unused funds under the Company’s revolving secured credit facility, subject to certain financial covenants (see Note 11 of Notes to Consolidated Financial Statements).
Cash Flows and Liquidity Metrics The following tables set forth certain historical information with respect to the Company’s sources and uses of cash and other key indicators of liquidity (dollars in thousands): Year Ended December 31, 2024 2023 2022 Cash flow provided by operating activities $ 539,958 $ 416,142 $ 469,305 Cash flow used in investing activities (441,591) (462,332) (336,443) Cash flow (used in) provided by financing activities (38,193) 51,313 (139,273) As of December 31, 2024 2023 2022 Working capital $ 1,064,344 $ 971,009 $ 835,133 Current ratio 4.1:1 3.9:1 3.8:1 Cash Flow Provided by Operating Activities Net cash provided by operating activities increased $123.8 million, or 30%, from $416.1 million for 2023 to $540.0 million for 2024 due to net changes in certain non-cash adjustments to reconcile net income to operating cash flow and net changes in other operating assets and liabilities (as detailed in the consolidated statements of cash flows) and an increase in net income of $39.5 million.
Cash Flows and Liquidity Metrics The following tables set forth certain historical information with respect to the Company’s sources and uses of cash and other key indicators of liquidity (dollars in thousands): Year Ended December 31, 2025 2024 2023 Cash flow provided by operating activities $ 585,942 $ 539,958 $ 416,142 Cash flow used in investing activities (828,045) (441,591) (462,332) Cash flow provided by (used in) financing activities 176,408 (38,193) 51,313 As of December 31, 2025 2024 2023 Working capital $ 1,448,654 $ 1,064,344 $ 971,009 Current ratio 4.6:1 4.1:1 3.9:1 Cash Flow Provided by Operating Activities Net cash provided by operating activities increased $46.0 million, or 9%, from $540.0 million for 2024 to $585.9 million for 2025 due to net changes in certain non-cash adjustments to reconcile net income to operating cash flow and net changes in other operating assets and liabilities (as detailed in the consolidated statements of cash flows) and an increase in net income of $71.6 million.
The decrease was primarily due to decreased gross transaction volumes originated due to weakness in furniture originations and the bankruptcy filings in 2024 for two of AFF’s larger retail furniture merchant partners.
The decrease was primarily due to decreased gross transaction volumes originated resulting from the bankruptcy filings in late 2024 for two of AFF’s larger retail furniture merchant partners, A-Freight and Conn’s.
The Company paid $68.2 million for furniture, fixtures, equipment and improvements and $86.1 million for discretionary pawn store real property purchases during 2024 compared to $60.1 million and $70.5 million in 2023, respectively. The Company paid $76.0 million in cash related to pawn store acquisitions during 2024 compared to $181.3 million during 2023.
The Company paid $54.9 million for furniture, fixtures, equipment and improvements and $61.9 million for discretionary pawn store real property purchases during 2025 compared to $68.2 million and $86.1 million in 2024, respectively. The Company paid $475.1 million in cash related to pawn store acquisitions during 2025 compared to $76.0 million during 2024.
Provision for lease losses decreased 8% to $163.9 million during 2024 compared to $177.4 million during 2023, which was primarily due to the 9% decrease in gross transaction volumes. As a percentage of gross transaction volume, the provision for lease losses increased to 29% during 2024 compared to 28% during 2023.
Provision for lease losses decreased 26% to $120.7 million during 2025 compared to $163.9 million during 2024, which was primarily due to the 23% decrease in gross transaction volumes. As a percentage of gross transaction volume, the provision for lease losses decreased to 27.7% during 2025 compared to 28.8% during 2024.
See “Non-GAAP Financial Information” for additional discussion of non-GAAP financial measures. 45 Table of Contents Operating Results for the Twelve Months Ended December 31, 2024 Compared to the Twelve Months Ended December 31, 2023 The following tables and related discussion set forth key operating and financial data for the Company’s operations by reporting segment as of and for the years ended December 31, 2024 and 2023.
Operating Results for the Twelve Months Ended December 31, 2025 Compared to the Twelve Months Ended December 31, 2024 The following tables and related discussion set forth key operating and financial data for the Company’s operations by reporting segment as of and for the years ended December 31, 2025 and 2024.
As a percentage of finance receivables, the allowance was 44% at December 31, 2024 compared to 46% at December 31, 2023. Interest and fees on finance receivables increased 5% to $245.9 million during 2024 compared to $233.8 million during 2023.
As a percentage of finance receivables, the allowance was 41% at December 31, 2025 compared to 44% at December 31, 2024. Interest and fees on finance receivables increased 27% to $311.2 million during 2025 compared to $245.9 million during 2024.
Return of Capital to Shareholders In January 2025, the Company’s Board declared a $0.38 per share first quarter cash dividend on common shares outstanding, or an aggregate of $17.0 million based on the December 31, 2024 share count, to be paid on February 28, 2025 to stockholders of record as of February 14, 2025.
In January 2026, the Board declared a $0.42 per share first quarter cash dividend on common shares outstanding, or an aggregate of $18.5 million based on the December 31, 2025 share count, to be paid on February 27, 2026 to stockholders of record as of February 18, 2026.
Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of 64 Table of Contents evaluating period-over-period comparisons.
Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. 61 Table of Contents The following table presents segment information for the Latin America pawn segment for the year ended December 31, 2025 using the exchange rate from the prior-year comparable periods (unaudited, in thousands): Year Ended December 31, 2025 Currency Constant Currency Exchange Rate Basis U.S.
Same-store retail sales increased 1% (4% on a constant currency basis) during 2024 compared to 2023. The increase in total and same-store retail sales was primarily due to increased inventory levels throughout 2024 and greater demand for value-priced, pre-owned merchandise. The gross profit margin on retail merchandise sales was 35% during both 2024 and 2023.
The increase in total and same-store retail sales was primarily due to strong demand for value priced merchandise and increased inventory levels during 2025 compared to 2024. The gross profit margin on retail merchandise sales was 35% during both 2025 and 2024.
In addition to utilizing cash flows generated from its own operations to fund expected 2025 growth, AFF has access to the additional sources of liquidity described below if needed to fund further expansion activities.
In addition to utilizing cash flows generated from its own operations to fund expected 2026 growth, AFF has access to the additional sources of liquidity described below if needed to fund further expansion activities. Return of Capital to Shareholders During 2025, the Company paid quarterly cash dividends to its shareholders totaling $70.9 million.
Financial information regarding the Company’s revenue and long-lived assets by geographic area is provided in Note 17 of Notes to Consolidated Financial Statements.
The retail POS payment solutions segment consists of the operations of AFF in the U.S. Financial information regarding the Company’s revenue and long-lived assets by geographic area is provided in Note 17 of Notes to Consolidated Financial Statements.
Also included are stores that were relocated during the applicable period within a specified distance and are serving the same market, where there is not a significant change in store size, and where there is not a significant overlap or gap in timing between the opening of the new store and the closing of the existing store. 46 Table of Contents U.S.
Also included are stores that were relocated during the applicable period within a specified distance and are serving the same market, where there is not a significant change in store size, and where there is not a significant overlap or gap in timing between the opening of the new store and the closing of the existing store. 47 Table of Contents The following tables present segment information for the year ended December 31, 2025 as compared to the year ended December 31, 2024 (in thousands).
The translated value of Latin American earning assets as of December 31, 2024 compared to December 31, 2023 was also impacted by a 20% unfavorable change in the end-of-period Mexican peso compared to the U.S. dollar.
The translated value of Latin American earning assets as of December 31, 2025 compared to December 31, 2024 benefited from a 11% favorable change in the end-of-period Mexican peso compared to the U.S. dollar.
On a same-store basis, pawn loan receivables decreased 6% (12% increase on a constant currency basis) as of December 31, 2024 compared to December 31, 2023.
On a same-store basis, pawn loan receivables also increased 38% (23% increase on a constant currency basis) as of December 31, 2025 compared to December 31, 2024.
See Note 14 of Notes to Consolidated Financial Statements. 44 Table of Contents Results of Operations 2024 Consolidated Operating Results Highlights The following table sets forth revenue, net income, diluted earnings per share, adjusted net income, adjusted diluted earnings per share, EBITDA and adjusted EBITDA for the year ended December 31, 2024 as compared to the year ended December 31, 2023 (in thousands, except per share amounts): Year Ended December 31, As Reported (GAAP) Adjusted (Non-GAAP) 2024 2023 2024 2023 Revenue $ 3,388,514 $ 3,151,796 $ 3,388,514 $ 3,151,796 Net income $ 258,815 $ 219,301 $ 302,680 $ 276,874 Diluted earnings per share $ 5.73 $ 4.80 $ 6.70 $ 6.06 EBITDA (non-GAAP measure) $ 551,008 $ 493,784 $ 558,437 $ 511,732 Weighted-average diluted shares 45,168 45,693 45,168 45,693 See “Non-GAAP Financial Information—Adjusted Net Income and Adjusted Diluted Earnings Per Share and —Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA” below.
See Note 14 of Notes to Consolidated Financial Statements. 45 Table of Contents Results of Operations 2025 Consolidated Operating Results Highlights The following table sets forth revenue, net income, diluted earnings per share, adjusted net income, adjusted diluted earnings per share, EBITDA and adjusted EBITDA for the year ended December 31, 2025 as compared to the year ended December 31, 2024 (in thousands, except per share amounts): Year Ended December 31, As Reported (GAAP) Adjusted (Non-GAAP) Increase / Increase / 2025 2024 (Decrease) 2025 2024 (Decrease) Revenue $ 3,661,043 $ 3,388,514 8 % $ 3,661,043 $ 3,388,514 8 % Net income $ 330,375 $ 258,815 28 % $ 390,142 $ 302,680 29 % Diluted earnings per share $ 7.42 $ 5.73 29 % $ 8.76 $ 6.70 31 % EBITDA (non-GAAP measure) $ 677,727 $ 551,008 23 % $ 698,389 $ 558,437 25 % Weighted-average diluted shares 44,526 45,168 (1) % 44,526 45,168 (1) % See “Non-GAAP Financial Information—Adjusted Net Income and Adjusted Diluted Earnings Per Share and —Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA” below.
The allowance for lease losses decreased 16% to $80.7 million as of December 31, 2024 compared to $95.8 million as of December 31, 2023, which was primarily due to the decrease in leased merchandise, partially offset by slightly higher lease loss provisioning rates used during 2024 as compared to 2023.
The allowance for lease losses decreased 20% to $64.9 million as of December 31, 2025 compared to $80.7 million as of December 31, 2024, which was primarily due to the decrease in leased merchandise and lower lease loss provisioning rates used during 2025 as compared to 2024.
The constant currency increase in total and same-store pawn loan fees was primarily due to increased average pawn receivable balances outstanding during 2024. Segment Expenses Operating expenses increased 7% (9% on a constant currency basis) to $259.3 million during 2024 compared to $243.1 million during 2023.
The constant currency increase in total and same-store pawn loan fees was primarily due to increased constant currency pawn receivables. Segment Expenses Operating expenses increased 5% (10% on a constant currency basis) to $272.1 million during 2025 compared to $259.3 million during 2024. Same-store operating expenses also increased 5% (10% on a constant currency basis) compared to the prior year.
The Company funded a net increase in pawn loans of $72.0 million during 2024 and $35.0 million during 2023. The Company funded a net increase in finance receivables of $139.3 million during 2024 and $115.4 million during 2023.
The Company funded a net 57 Table of Contents increase in pawn loans of $137.9 million during 2025 and $72.0 million during 2024. The Company funded a net increase in finance receivables of $98.3 million during 2025 and $139.3 million during 2024.
Segment Expenses U.S. store operating expenses increased 12% to $503.6 million during 2024 compared to $451.5 million during 2023 while same-store operating expenses increased 5% compared with the prior year. The increase in operating expenses was primarily due to an increase in the average store count.
Segment Expenses U.S. store operating expenses increased 7% to $536.6 million during 2025 compared to $503.6 million during 2024 while same-store operating expenses increased 6% compared with the prior year. The increase in operating expenses was primarily due to increased labor and variable compensation expenses.
Latin America pawn loan fees increased 4% (7% on a constant currency basis) to $231.9 million during 2024 compared to $222.8 million for 2023. Same-store pawn loan fees also increased 4% (7% on a constant currency basis) during 2024 compared to 2023.
Latin America pawn loan fees increased 10% (15% on a constant currency basis) to $254.1 million during 2025 compared to $231.9 million for 2024. Same-store pawn loan fees increased 9% (14% on a constant currency basis) during 2025 compared to 2024.
The Company’s retail POS payment solutions business line consists solely of the operations of AFF, which focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners in the U.S. and Puerto Rico.
The Company is also a leading provider of customer payment solutions at the POS for retailers of consumer goods and services, which it conducts solely through AFF. The Company’s customer payment solutions business line focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners in the U.S.
However, inflationary economic environments could also benefit the Company by increasing customer demand for value-priced products, lending services in its pawn stores and demand for POS payment solutions provided by AFF.
The Company could also see increases in wages and other operating costs. Furthermore, inflation could also weaken sales at AFF’s merchant partners, negatively impacting AFF’s originations. However, inflationary economic environments could also benefit the Company by increasing customer demand for value-priced products, lending services in its pawn stores and demand for POS payment solutions provided by AFF.
The following table provides a reconciliation between net income and diluted earnings per share, calculated in accordance with GAAP, to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (unaudited, in thousands, except per share amounts): Year Ended December 31, 2024 2023 2022 2024 2023 2022 In Thousands In Thousands In Thousands Per Share Per Share Per Share Net income and diluted earnings per share, as reported $ 258,815 $ 219,301 $ 253,495 $ 5.73 $ 4.80 $ 5.36 Adjustments, net of tax: Merger and acquisition expenses 1,706 6,089 2,878 0.04 0.13 0.06 Non-cash foreign currency loss (gain) related to lease liability 2,627 (1,778) (930) 0.06 (0.04) (0.02) AFF purchase accounting and other adjustments 38,289 54,341 82,432 0.85 1.19 1.74 Gain on revaluation of contingent acquisition consideration — — (90,035) — — (1.91) Other expenses (income), net 1,243 (1,079) (2,103) 0.02 (0.02) (0.04) Adjusted net income and diluted earnings per share $ 302,680 $ 276,874 $ 245,737 $ 6.70 $ 6.06 $ 5.19 62 Table of Contents Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance.
The following table provides a reconciliation between net income and diluted earnings per share, calculated in accordance with GAAP, to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (unaudited, in thousands, except per share amounts): Year Ended December 31, 2025 2024 2023 2025 2024 2023 In Thousands In Thousands In Thousands Per Share Per Share Per Share Net income and diluted earnings per share, as reported $ 330,375 $ 258,815 $ 219,301 $ 7.42 $ 5.73 $ 4.80 Adjustments, net of tax: Merger and acquisition expenses 12,271 1,706 6,089 0.27 0.04 0.13 Purchase accounting and other adjustments 41,055 38,289 54,341 0.92 0.85 1.19 CFPB litigation settlement 9,390 — — 0.21 — — Other (income) expense, net (2,949) 3,870 (2,857) (0.06) 0.08 (0.06) Adjusted net income and diluted earnings per share $ 390,142 $ 302,680 $ 276,874 $ 8.76 $ 6.70 $ 6.06 59 Table of Contents Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance.
The allowance for loan losses increased 21% to $117.0 million as of December 31, 2024 compared to $96.5 million as of December 31, 2023, which was primarily due to the increase in finance receivables, partially offset by slightly lower loan loss provisioning rates used during 2024 as compared to 2023.
The allowance for loan losses decreased 9% to $106.3 million as of December 31, 2025 compared to $117.0 million as of December 31, 2024, which was primarily due to the decrease in finance receivables and lower loan loss provisioning rates used during 2025 as compared to 2024.
Segment Pre-Tax Operating Income The U.S. segment pre-tax operating income for 2024 was $397.3 million, which generated a pre-tax segment operating margin of 25% compared to $336.3 million and 25% in the prior year, respectively.
Segment Pre-Tax Operating Income The U.S. segment pre-tax operating income for 2025 was $452.6 million, which generated a pre-tax segment operating margin of 26% compared to $397.3 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.
The Company had working capital of $1,064.3 million as of December 31, 2024. The Company’s cash and cash equivalents as of December 31, 2024 included $70.9 million held by its foreign subsidiaries.
The Company had working capital of $1,448.7 million as of December 31, 2025. 56 Table of Contents The Company’s cash and cash equivalents as of December 31, 2025 included $43.8 million held by its foreign subsidiaries.
The Company evaluates potential acquisitions based upon growth potential, purchase price, available liquidity, strategic fit and quality of management personnel, among other factors. During 2024, the Company also opened 60 new locations in Latin America and one location in the U.S. The combined investment in leasehold improvements and other fixed assets for these new locations totaled $19.3 million.
The Company evaluates potential acquisitions based upon growth potential, purchase price, available liquidity, strategic fit and quality of management personnel, among other factors. During 2025, the Company also opened 32 new locations in Latin America, two new stores in the U.S. and one new store in the U.K.
Expand Pawn Operations The Company intends to continue expansion of its pawn operations through growth of pawn receivables and inventories in existing stores along with new store openings and acquisitions.
Expand Pawn Operations The Company intends to continue expansion of its pawn operations through growth of pawn receivables and inventories in existing stores along with new store openings and acquisitions. On August 14, 2025, the Company completed its previously announced acquisition of H&T, the leading pawn operator in the United Kingdom with 286 store locations.
Operating expenses include salary and benefit expense of pawn store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the pawn stores.
Operating expenses include salary and benefit expenses of pawn store-level employees and certain of AFF’s operations-focused departments, occupancy costs, bank and other payment processing charges, data analytics and decisioning costs, information technology costs, advertising costs, security, insurance, utilities, supplies, other costs incurred by the pawn stores and other operational costs incurred by AFF.
In addition, the Company paid withholding taxes on net share settlements of restricted stock awards during 2024 of $7.0 million compared to $2.5 million during 2023. 60 Table of Contents Non-GAAP Financial Information The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted retail POS payment solutions segment metrics and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth.
Non-GAAP Financial Information The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth.
The increase in the segment pre-tax operating income reflected increased net revenue from both acquired and existing stores, partially offset by an increase in segment expenses. 49 Table of Contents Latin America Pawn Segment Latin America pawn segment pre-tax operating income for 2024 compared to 2023 was impacted by a 3% unfavorable change in the average value of the Mexican peso compared to the U.S. dollar.
Latin America Pawn Segment Latin America pawn segment pre-tax operating income for 2025 compared to 2024 was impacted by a 5% unfavorable change in the average value of the Mexican peso compared to the U.S. dollar.
The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (unaudited, in thousands): Year Ended December 31, 2024 2023 2022 Net income $ 258,815 $ 219,301 $ 253,495 Income taxes 83,961 73,548 70,138 Depreciation and amortization (1) 104,941 109,161 103,832 Interest expense 105,226 93,243 70,708 Interest income (1,935) (1,469) (1,313) EBITDA 551,008 493,784 496,860 Adjustments: Merger and acquisition expenses 2,228 7,922 3,739 Non-cash foreign currency loss (gain) related to lease liability 3,755 (2,540) (1,329) AFF purchase accounting and other adjustments (2) — 13,968 50,354 Gain on revaluation of contingent acquisition consideration — — (109,549) Other expenses (income), net 1,446 (1,402) (2,731) Adjusted EBITDA $ 558,437 $ 511,732 $ 437,344 (1) Includes $49.7 million, $56.6 million and $56.7 million of amortization expense related to identifiable intangible assets as a result of the AFF acquisition for 2024, 2023 and 2022, respectively.
The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (unaudited, in thousands): Year Ended December 31, 2025 2024 2023 Net income $ 330,375 $ 258,815 $ 219,301 Income taxes 117,188 83,961 73,548 Depreciation and amortization (1) 111,806 104,941 109,161 Interest expense 121,293 105,226 93,243 Interest income (2,935) (1,935) (1,469) EBITDA 677,727 551,008 493,784 Adjustments: Merger and acquisition expenses 14,369 2,228 7,922 Purchase accounting and other adjustments (2) — — 13,968 CFPB litigation settlement 11,000 — — Other (income) expense, net (4,707) 5,201 (3,942) Adjusted EBITDA $ 698,389 $ 558,437 $ 511,732 (1) Includes $53.5 million, $49.7 million and $56.6 million of amortization expense related to identifiable intangible assets for 2025, 2024 and 2023, respectively.
In addition, AFF has made, and intends to continue to make, investments in its customer and merchant support operations and facilities, its technology platforms and its proprietary decisioning platforms and processes.
Expand Retail POS Payment Solutions Operations AFF expects to expand its business primarily by promoting and expanding relationships with both new and existing customers and retail merchant partners. In addition, AFF has made, and intends to continue to make, investments in its customer and merchant support operations and facilities, its technology platforms and its proprietary decisioning platforms and processes.
While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets.
The Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired intangible assets, the CFPB litigation settlement and certain other income and expenses.
Pawn stores also generate retail sales primarily from the merchandise acquired through collateral forfeitures and over-the-counter purchases from customers. The Company is also a leading provider of technology-driven, retail POS payment solutions focused on serving credit-constrained consumers.
Pawn stores also generate retail sales primarily from the merchandise acquired through collateral forfeitures and over-the-counter purchases from customers.
Cash Flow Used in Investing Activities Net cash used in investing activities decreased $20.7 million, or 4%, from $462.3 million during 2023 to $441.6 million during 2024.
Cash Flow Used in Investing Activities Net cash used in investing activities increased $386.5 million, or 88%, from $441.6 million during 2024 to $828.0 million during 2025.
The U.S. pawn segment consists of pawn operations in the U.S. while the Latin America pawn segment consists of pawn operations in Mexico, Guatemala, El Salvador and Colombia. The retail POS payment solutions segment consists of the operations of AFF in the U.S. and Puerto Rico.
The U.S. pawn segment consists of pawn operations in 29 U.S. states and the District of Columbia; the Latin America pawn segment consists of pawn operations in Mexico, Guatemala, El Salvador and Colombia; and the U.K. pawn segment consists of pawn operations in England, Scotland and Wales.
Same-store pawn loan fees increased 11% during 2024 compared to 2023. The increase in total and same-store pawn loan fees was primarily due to store growth and increased same-store pawn receivables.
U.S. pawn loan fees increased 10% to $555.0 million during 2025 compared to $505.3 million for 2024. Same-store pawn loan fees increased 9% during 2025 compared to 2024. The increase in total and same-store pawn loan fees was primarily due to higher pawn loan balances.
In July 2023, the Board authorized a common stock repurchase program for up to $200.0 million of the Company’s outstanding common stock, of which $115.0 million is currently remaining.
In July 2023, the Board authorized a common stock repurchase program for up to $200.0 million of the Company’s outstanding common stock. During 2025, the Company repurchased a total of 912,000 shares of common stock at an aggregate cost of $115.0 million and an average cost per share of $126.03, which completed the share repurchase program authorized in July 2023.
Pawn Lending Operations U.S. pawn loan receivables as of December 31, 2024 increased 15% in total and 12% on a same-store basis compared to December 31, 2023.
Pawn Lending Operations U.S. pawn loan receivables as of December 31, 2025 increased 14% in total and 12% on a same-store basis compared to December 31, 2024. 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 larger loan amounts requested by the Company’s customers.
Latin America inventories decreased 1% (17% increase on a constant currency basis) to $89.1 million at December 31, 2024 compared to $90.2 million at December 31, 2023. The increase in constant currency inventories was primarily due to increases in pawn loan receivable balances over the past several quarters creating more forfeited inventory.
The increase in constant currency inventories was primarily due to increases in pawn loan receivable balances over the past several quarters creating more forfeited inventory and a slightly increased mix of higher value jewelry inventory.
Segment Pre-Tax Operating Income The segment pre-tax operating income for 2024 was $150.2 million, which generated a pre-tax segment operating margin of 19% compared to $156.2 million and 19% in the prior year, respectively.
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. Segment Pre-Tax Operating Income The segment pre-tax operating income for 2025 was $177.4 million, which generated a pre-tax segment operating margin of 20% compared to $150.2 million and 19% in the prior year, respectively.
Excluding these intersegment transactions, consolidated provision for lease losses during 2024 and 2023 totaled $163.4 million and $175.9 million, respectively. 53 Table of Contents The following table provides a detail of gross transaction volumes originated during the year ended December 31, 2024 as compared to the year ended December 31, 2023 (dollars in thousands): Years Ended December 31, Increase / 2024 2023 (Decrease) Leased merchandise $ 568,635 $ 623,069 (9) % Finance receivables 510,231 405,765 26 % Total gross transaction volume $ 1,078,866 $ 1,028,834 5 % The following table details retail POS payment solutions earning assets as of December 31, 2024 as compared to December 31, 2023 (dollars in thousands): As of December 31, Increase / 2024 2023 (Decrease) Leased merchandise, net: Leased merchandise, before allowance for lease losses $ 209,333 $ 267,458 (22) % Less allowance for lease losses (80,661) (95,752) (16) % Leased merchandise, net (1) $ 128,672 $ 171,706 (25) % Finance receivables, net: Finance receivables, before allowance for loan losses $ 264,506 $ 210,355 26 % Less allowance for loan losses (117,005) (96,454) 21 % Finance receivables, net $ 147,501 $ 113,901 29 % (1) Includes $0.2 million and $0.5 million of intersegment transactions as of December 31, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation.
The following table details retail POS payment solutions earning assets as of December 31, 2025 as compared to December 31, 2024 (dollars in thousands): As of December 31, 2025 2024 Leased merchandise, net: Leased merchandise, before allowance for lease losses $ 179,396 $ 209,333 Less allowance for lease losses (64,916) (80,661) Leased merchandise, net (1) $ 114,480 $ 128,672 Finance receivables, net: Finance receivables, before allowance for loan losses $ 256,600 $ 264,506 Less allowance for loan losses (106,326) (117,005) Finance receivables, net $ 150,274 $ 147,501 (1) Includes $0.2 million of intersegment transactions as of both December 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation.
During 2024, the gross profit margin on retail merchandise sales in the U.S. was 42% compared to a margin of 43% during 2023, reflecting continued demand for value-priced, pre-owned merchandise and low levels of aged inventory. U.S. inventories increased 11% to $245.5 million at December 31, 2024 compared to $221.8 million at December 31, 2023.
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 2025 compared to 2024. The gross profit margin on retail merchandise sales in the U.S. was 42% during both 2025 and 2024.
Pawn Segment Earning assets: Pawn loans $ 396,667 $ 344,152 15 % Inventories 245,492 221,843 11 % $ 642,159 $ 565,995 13 % Average outstanding pawn loan amount (in ones) $ 283 $ 258 10 % Composition of pawn collateral: General merchandise 28 % 30 % Jewelry 72 % 70 % 100 % 100 % Composition of inventories: General merchandise 41 % 43 % Jewelry 59 % 57 % 100 % 100 % Percentage of inventory aged greater than one year 1 % 1 % Inventory turnover (trailing twelve months cost of merchandise sales divided by average inventories) 2.8 times 2.8 times Store count 1,200 1,183 1 % Average store count 1,195 1,135 5 % Retail Merchandise Sales Operations U.S. retail merchandise sales increased 13% to $969.4 million during 2024 compared to $854.2 million for 2023.
Pawn Total Pawn Earning assets: Pawn loans $ 396,667 $ 121,200 $ — $ 517,867 Inventories 245,492 89,088 — 334,580 $ 642,159 $ 210,288 $ — $ 852,447 Average outstanding pawn loan amount (in ones) $ 283 $ 87 $ — $ 185 Composition of pawn collateral: Jewelry 72 % 42 % — % 65 % General merchandise 28 % 58 % — % 35 % 100 % 100 % — % 100 % Composition of inventories: Jewelry 59 % 35 % — % 52 % General merchandise 41 % 65 % — % 48 % 100 % 100 % — % 100 % Percentage of inventory aged greater than one year 1.5 % 1.4 % — % 1.4 % Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 2.8 times 4.2 times — 3.2 times Store count 1,200 1,826 — 3,026 Average store count 1,195 1,821 — 3,016 50 Table of Contents U.S.
The Company funded $85.0 million for share repurchases and paid dividends of $65.8 million during 2024, compared to funding $114.4 million of share repurchases and dividends paid of $61.9 million during 2023.
The Company funded $115.8 million for share repurchases during 2025, compared to $85.0 million during 2024. The Company paid dividends of $70.9 million during 2025 compared to $65.8 million during 2024. In addition, the Company paid withholding taxes of $5.8 million on net share settlements of restricted stock awards during 2025 compared to $7.0 million during 2024.
(2) The following table details AFF purchase accounting and other adjustments (in thousands): Year Ended December 31, 2024 2023 2022 Pre-tax Pre-tax Pre-tax Amortization of fair value adjustment on acquired finance receivables $ — $ — $ 42,657 Amortization of fair value adjustment on acquired leased merchandise — — 7,697 Other non-recurring costs included in administrative expenses related to a discontinued finance product — 13,968 — Total AFF purchase accounting and other adjustments $ — $ 13,968 $ 50,354 Free Cash Flow and Adjusted Free Cash Flow For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow.
(2) For 2023, amount represents other non-recurring costs included in administrative expenses related to a discontinued finance product. 60 Table of Contents Free Cash Flow and Adjusted Free Cash Flow For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow.
Cash Flow Used in Financing Activities Net cash provided by financing activities decreased $89.5 million, or 174%, from net cash provided by financing activities of $51.3 million during 2023 to net cash used in financing activities of $38.2 million during 2024.
Cash Flow Provided by Financing Activities Net cash used in financing activities decreased $214.6 million, or 562%, from net cash used in financing activities of $38.2 million during 2024 to net cash provided by financing activities of $176.4 million during 2025. Net borrowings on credit facilities were $368.9 million during 2025 compared to net payments of $370.0 million during 2024.
As a percentage of lease merchandise, the allowance was 39% at December 31, 2024 and 36% at December 31, 2023.
As a percentage of lease merchandise, the allowance was 36% at December 31, 2025 and 39% at December 31, 2024. Leased merchandise income decreased 27% to $559.0 million during 2025 compared to $766.2 million during 2024, which was primarily due to lower average leased merchandise balances outstanding during 2025 compared to 2024.
The increase was primarily due to incremental inventories from acquired stores and an increase in same-store inventories as a result of the higher pawn loan balances noted below. Inventories aged greater than one year in the U.S. were 1% at both December 31, 2024 and 2023.
U.S. inventories increased 17% to $286.1 million at December 31, 2025 compared to $245.5 million at December 31, 2024. The increase was primarily due to increases in pawn loan receivable balances creating more forfeited inventory. Inventories aged greater than one year in the U.S. were 1.8% at December 31, 2025 compared to 1.5% at December 31, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

14 edited+1 added−0 removed10 unchanged
Biggest changeA one-point change in the average Mexican peso to the U.S. dollar exchange rate would have impacted 2024 annual earnings by approximately $3.4 million.
Biggest changeA one-point change in the average Mexican peso to the U.S. dollar exchange rate would have impacted 2025 annual earnings by approximately $4.4 million. The average value of the U.S. dollar to the British pound sterling exchange rate for 2025 was 1.32 to 1 compared to 1.28 to 1 in 2024 and 1.24 to 1 in 2023.
Foreign Currency Risk The financial statements of the Company’s subsidiaries in Mexico, Guatemala and Colombia are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for revenues and expenses.
Foreign Currency Risk The financial statements of the Company’s subsidiaries in Mexico, Guatemala, Colombia and the U.K. are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for revenues and expenses.
Accordingly, changes in exchange rates, and in particular a weakening of foreign currencies relative to the U.S. dollar, may negatively affect the Company’s revenue and earnings of its Latin America pawn operations as expressed in U.S. dollars.
Accordingly, changes in exchange rates, and in particular a weakening of foreign currencies relative to the U.S. dollar, may negatively affect the Company’s revenue and earnings of its foreign pawn operations as expressed in U.S. dollars.
The impact of foreign exchange rates in Guatemala and Colombia is not material to the Company’s financial position or results of operations. 66 Table of Contents Interest Rate Risk The Company is potentially exposed to market risk in the form of interest rate risk for its long-term unsecured lines of credit.
The impact of foreign exchange rates in Guatemala, Colombia and the U.K. is not material to the Company’s financial position or results of operations. 65 Table of Contents Interest Rate Risk The Company is potentially exposed to market risk in the form of interest rate risk for its long-term lines of credit.
The majority of Latin America revenues and expenses are denominated in currencies other than the U.S. dollar, and the Company, therefore, has foreign currency risk related to these currencies, which are primarily the Mexican peso, and, to a much lesser extent, the Guatemalan quetzal and Colombian peso.
The majority of foreign revenues and expenses are denominated in currencies other than the U.S. dollar, and the Company, therefore, has foreign currency risk related to these currencies, which are primarily the Mexican peso and British pound sterling, and, to a much lesser extent, the Guatemalan quetzal and Colombian peso.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” for further discussion of Latin America constant currency results. The Company does not use long-term foreign exchange contracts or derivatives to hedge foreign currency exposures. The volatility of exchange rates depends on many factors that it cannot forecast with reliable accuracy.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Information” for further discussion of constant currency results. The Company does not use long-term foreign exchange contracts or derivatives to hedge foreign currency exposures. The volatility of exchange rates depends on many factors that it cannot forecast with reliable accuracy.
The Company’s continued Latin America expansion increases exposure to exchange rate fluctuations and, as a result, such fluctuations could have a significant impact on future results of operations. The average value of the Mexican peso to the U.S. dollar exchange rate for 2024 was 18.3 to 1 compared to 17.8 to 1 in 2023 and 20.1 to 1 in 2022.
The Company’s continued international expansion increases exposure to exchange rate fluctuations and, as a result, such fluctuations could have a significant impact on future results of operations. The average value of the Mexican peso to the U.S. dollar exchange rate for 2025 was 19.2 to 1 compared to 18.3 to 1 in 2024 and 17.8 to 1 in 2023.
For the year ended December 31, 2024, the Company’s Latin America revenues and pre-tax operating income would have been approximately $21.3 million and $3.6 million higher, respectively, had foreign currency exchange rates remained consistent with those for the year ended December 31, 2023. See “Item 7.
For the year ended December 31, 2025, the Company’s foreign revenues and pre-tax operating income would have been approximately $36.9 million and $6.7 million higher, respectively, had foreign currency exchange rates remained consistent with those for the year ended December 31, 2024. See “Item 7.
At December 31, 2024, the fair value of the Company’s fixed rate debt was approximately $1,503.0 million and the outstanding principal of the Company’s fixed rate debt was $1,550.0 million. The fair value estimate of the Company’s fixed rate debt was estimated based on quoted prices in markets that are not active.
At December 31, 2025, the fair value of the Company’s fixed rate debt was approximately $1,624.5 million and the outstanding principal of the Company’s fixed rate debt was $1,610.5 million. The fair value estimate of the Company’s fixed rate debt was estimated based on quoted prices in markets that are not active.
The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. On a dollar-translated basis, Latin America revenues and cost of revenues accounted for 24% and 22%, respectively, of consolidated amounts for the year ended December 31, 2024.
The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar. On a dollar-translated basis, foreign revenues and cost of revenues accounted for 28% and 27%, respectively, of consolidated amounts for the year ended December 31, 2025.
Based on the $198.0 million in outstanding borrowings at December 31, 2024, a 1% (100 basis points) increase in interest rates would have increased the Company’s annual interest expense by approximately $2.0 million for 2024.
Based on the $613.5 million in outstanding borrowings at December 31, 2025, a 1% (100 basis points) increase in interest rates would have increased the Company’s annual interest expense by approximately $6.1 million for 2025.
At December 31, 2024, the Company held approximately $174.0 million in jewelry inventories, which were primarily gold, representing 52% of total inventory. In addition, approximately $336.6 million, or 65%, of total pawn loans were collateralized by jewelry, which was also primarily gold. Of the Company’s total retail merchandise revenue during 2024, approximately $602.8 million, or 40%, was from jewelry sales.
At December 31, 2025, the Company held approximately $302.1 million in jewelry inventories, which were primarily gold, representing 62% of total inventory. In addition, approximately $623.6 million, or 75%, of total pawn loans were collateralized by jewelry, which was also primarily gold. Of the Company’s total retail merchandise revenue during 2025, approximately $734.1 million, or 44%, was from jewelry sales.
During 2024, the average market price of gold increased by 23% from $1,942 to $2,385 per ounce. The price of gold at December 31, 2024 was $2,609 per ounce compared to $2,078 at December 31, 2023.
During 2025, the average market price of gold increased by 44% from $2,385 to $3,441 per ounce. The price of gold at December 31, 2025 was $4,323 per ounce compared to $2,609 at December 31, 2024.
At December 31, 2024, the Company had $198.0 million outstanding under its U.S. revolving line of credit. The revolving lines of credit are generally priced with a variable rate based on a fixed spread over SOFR or the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) and repriced with any changes in SOFR or TIIE.
The revolving lines of credit are generally priced with a variable rate based on a fixed spread over the prevailing secured overnight financing rate (“SOFR”), the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) or the Sterling Overnight Index Average (“SONIA”) and repriced with any changes in SOFR, TIIE or SONIA.
Added
At December 31, 2025, the Company had $613.5 million outstanding under its revolving lines of credit.

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