FirstCash Reports Record Third Quarter Operating Results
FirstCash Holdings, Inc. (FCFS) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 FirstCash Reports Record Third Quarter Operating Results; Revenues and Earnings from Pawn Segments Grow 28%; Declares 10% Increase in Quarterly Cash Dividend ____________________________________________________________ Fort Worth, Texas (October 22, 2026) -- FirstCas
How this was made
The 30-second read
Why it matters
The earnings beat and dividend raise provide fresh, material information for traders, creating a clear actionable catalyst.
Market read
The report delivers primary earnings data for a mid‑cap financial services firm, likely influencing its stock and sector peers.
What to watch
Potential regulatory scrutiny of pawn‑shop practices and macro‑economic sensitivity of discretionary credit demand.
FirstCash Reports Record Third Quarter Operating Results; Revenues and Earnings from Pawn Segments Grow 28%; Declares 10% Increase in Quarterly Cash Dividend
Third-quarter revenue increased 18%, GAAP net income increased 22%, GAAP diluted earnings per share increased 25%, and combined pawn-segment revenue and income each increased 28%. U.S., Latin America and U.K. pawn operations expanded while AFF revenue and transaction volume declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $1.10B | – | 18% |
| Net revenue, three months ended September 30GAAP | $545.5M | – | 15% |
| Net income, three months ended September 30GAAP | $101.2M | – | 22% |
| Adjusted net income, three months ended September 30non-GAAP | $116.2M | – | 15% |
| Diluted earnings per share, three months ended September 30GAAP | $2.33 | – | 25% |
| Adjusted diluted earnings per share, three months ended September 30non-GAAP | $2.68 | – | 19% |
| EBITDA, three months ended September 30non-GAAP | $208.2M | – | – |
| Adjusted EBITDA, three months ended September 30non-GAAP | $213.0M | – | 18% |
| Weighted-average diluted shares, three months ended September 30GAAP | 43,335 | – | – |
| Retail merchandise sales, three months ended September 30GAAP | $481.0M | – | – |
| Pawn loan fees, three months ended September 30GAAP | $267.3M | – | – |
| Leased merchandise income, three months ended September 30GAAP | $103.1M | – | – |
| Interest and fees on retail finance products, three months ended September 30GAAP | $73.75M | – | – |
| Wholesale scrap jewelry sales, three months ended September 30GAAP | $172.5M | – | – |
| Total cost of revenue, three months ended September 30GAAP | $555.6M | – | – |
| Operating expenses, three months ended September 30GAAP | $269.1M | – | – |
| Administrative expenses, three months ended September 30GAAP | $66.72M | – | – |
| Depreciation and amortization, three months ended September 30GAAP | $32.28M | – | – |
| Interest expense, three months ended September 30GAAP | $37.68M | – | – |
| Income before income taxes, three months ended September 30GAAP | $138.7M | – | – |
| Provision for income taxes, three months ended September 30GAAP | $37.52M | – | – |
| Total revenue, nine months ended September 30GAAP | $3.23B | – | 24% |
| Net revenue, nine months ended September 30GAAP | $1.62B | – | 24% |
| Net income, nine months ended September 30GAAP | $302.3M | – | 34% |
| Adjusted net income, nine months ended September 30non-GAAP | $345.3M | – | 26% |
| Diluted earnings per share, nine months ended September 30GAAP | $6.89 | – | 36% |
| Adjusted diluted earnings per share, nine months ended September 30non-GAAP | $7.87 | – | 29% |
| EBITDA, nine months ended September 30non-GAAP | $613.9M | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $625.1M | – | 28% |
| Weighted-average diluted shares, nine months ended September 30GAAP | 43,870 | – | – |
| Cash and cash equivalents, September 30GAAP | $203.2M | – | – |
| Pawn loans, September 30GAAP | $907.7M | – | – |
| Finance receivables, net, September 30GAAP | $124.1M | – | – |
| Inventories, September 30GAAP | $598.6M | – | – |
| Total assets, September 30GAAP | $5.56B | – | – |
| Revolving unsecured credit facility, September 30GAAP | $169M | – | – |
| Other long-term debt, September 30GAAP | $2.28B | – | – |
| Cash flow from operating activities, trailing twelve months ended September 30GAAP | $679.0M | – | 18% |
| Free cash flow, trailing twelve months ended September 30non-GAAP | $383.4M | – | – |
| Adjusted free cash flow, trailing twelve months ended September 30non-GAAP | $392.9M | – | 27% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. Pawn, three months ended September 30Especially strong same-store revenue growth coupled with contributions from late 2025 acquisitions. Pawn loan fees increased 12%, retail merchandise sales increased 10%, and same-store pawn receivables increased 12%. | $514.7M | – | 18% |
| Latin America Pawn, three months ended September 30Pawn loan fees increased 24% on a U.S. dollar basis and 15% on a constant currency basis. Total and same-store retail merchandise sales increased 24% and 25%, respectively, on a U.S. dollar basis. | $310.7M | – | 35% on a U.S. dollar basis; 27% on a constant currency basis |
| U.K. Pawn, three months ended September 30Strong growth over the prior-year quarter, partially pre-acquisition, in both pawn fees and merchandise sales. Pawn receivables totaled $215 million and increased 14% on a U.S. dollar basis. | $99.37M | – | – |
| Retail POS Payment Solutions (AFF), three months ended September 30Net revenues decreased 20% compared to the prior-year quarter and gross transaction volume decreased 15%, due primarily to continued weakness in the furniture industry coupled with an increased strategic focus on merchant quality. | $176.8M | – | – |
| U.S. Pawn, nine months ended September 30Segment pre-tax operating income increased 25% compared to the prior-year period, and segment pre-tax operating margin increased to 27% compared to 25%. | $1.50B | – | 18% |
| Latin America Pawn, nine months ended September 30Segment pre-tax operating income increased 45% on a U.S. dollar basis and 39% on a local currency basis. | $859.9M | – | 39% on a U.S. dollar basis; 26% on a local currency basis |
| U.K. Pawn, nine months ended September 30Segment pre-tax operating income was $102 million, resulting in a segment pre-tax operating margin of 34%. | $296.4M | – | – |
| Retail POS Payment Solutions (AFF), nine months ended September 30Net revenues decreased 24% and gross transaction volume decreased 9% compared to the prior-year period. | $570.8M | – | – |
Fourth quarter of 2026 and full year 2026 outlook
- Tax rateThe full year 2026 consolidated effective income tax rate is expected to range from 26% to 27% of income before income taxes.
- NotePawn operations are expected to be approximately 90% of total net revenue and segment level pre-tax income for 2026.
- NoteU.S. Pawn: low-double-digit growth rate in pawn receivables and fees in the fourth quarter; retail sales growth of approximately 8% to 10%; store operating expenses projected to grow in a mid-single-digit range.
- NoteLatin America Pawn: low- to mid-teens growth in pawn receivables and fees; slightly higher expected growth in retail sales; operating expenses expected to increase 10% to 12%.
- NoteU.K. Pawn: pawn receivables and fees expected to grow at a mid- to high-single-digit range; retail sales gross profit expected to increase in a low-double-digit range; operating expenses expected to increase approximately 10%.
- NoteAFF: gross transaction volumes forecast to decrease in the mid-teens percentage range; net revenue expected to decrease 15% to 20%; operating expenses expected to remain at a run rate similar to the third quarter.
- NoteCorporate administrative expenses are expected to remain at a run rate similar to the first three quarters of 2026; interest expense is expected to increase approximately 5% over the prior-year quarter assuming current interest rates.
- NoteGuidance does not include revenue and earnings contributions from any potential fourth quarter acquisitions.
Capital returns
- The Board declared a $0.46 per share fourth quarter cash dividend, payable on November 24, 2026 to stockholders of record as of November 13, 2026.
- The quarterly dividend represents a 10% increase over the previous quarterly dividend.
- Annualized dividend is now $1.84 per share, compared with the previous annualized dividend of $1.68 per share.
- The Company repurchased 592,000 shares during the third quarter at an average price of $208.64 per share for a total cost of $123 million.
- Year-to-date, the Company repurchased 1,210,000 shares at an average price of $206.66 per share for a total cost of $250 million.
- The Company has $50 million remaining on the share repurchase program authorized in July 2026.
- Over the past twelve months, the Company repurchased 1,367,000 shares at an average price of $201.49 per share for a total cost of $275 million and paid out $74 million in cash dividends.
- Shareholder returns over the past twelve months totaled $349 million and represented a payout ratio of 86% of net income over the same period.
What drove it
- Combined U.S., Latin America and U.K. pawn segment revenue and segment income each increased 28% in the third quarter.
- Record pawn receivables totaled $908 million, and all geographic segments posted double-digit increases in same-store pawn receivables and pawn fees.
- The Company added 14 pawn stores in the quarter, consisting of four acquired stores and ten de novo openings, bringing year-to-date additions to 42 locations.
- The Mexican peso exchange rate averaged 17.2 pesos per U.S. dollar in the third quarter, a favorable change of 8% versus the comparable prior-year period.
- The Company owned 480 pawn properties at quarter-end, including 14 acquired during the quarter.
- AFF had approximately 17,000 active retail and e-commerce merchant partner locations, an 8% increase compared to a year ago.
Concerns
- AFF third-quarter net revenues decreased 20%, gross transaction volume decreased 15%, and segment pre-tax operating income decreased compared to the third quarter of 2025 due primarily to lost earnings from previously reported merchant partner bankruptcies.
- AFF cited continued weakness in the furniture industry and an increased strategic focus on merchant quality.
- U.S. Pawn retail sales margins were 42%, versus 43% in the third quarter of 2025.
- Latin America Pawn retail sales margins were 35%, versus 36% in the third quarter of 2025.
- The Ramsdens acquisition remains subject to required anti-trust approval and other customary closing conditions.
- Other long-term debt was $2,278,072 thousand at September 30, 2026, compared with $1,638,106 thousand a year ago.
What to watch
- Fourth-quarter U.S. Pawn receivables and fee growth guidance of low-double-digit growth and retail sales growth guidance of approximately 8% to 10%.
- Fourth-quarter Latin America Pawn performance against low- to mid-teens pawn receivables and fees growth guidance and planned operating-expense growth of 10% to 12%.
- AFF performance against guidance for a mid-teens percentage decline in gross transaction volumes and a 15% to 20% decline in net revenue.
- Completion of the Ramsdens acquisition, which the Company continues to target to close by the end of 2026 pending required approvals and closing conditions.
- The effect of the FirstPawn system rollout across all H&T stores and its jewelry processing center on pawn yields, inventory turns, retail margins and revenue and operating synergies.
- Use of the expanded $1.055 billion credit facility, acquisition pipeline, and the remaining $50 million repurchase authorization.
Balance sheet and cash flow
- Consolidated assets were $5.6 billion at September 30, 2026, including record pawn receivables of $908 million, versus assets of $5.2 billion and pawn receivables of $788 million a year ago.
- Cash and cash equivalents were $203,159 thousand at September 30, 2026.
- Total liabilities were $3,285,842 thousand and total stockholders' equity was $2,273,331 thousand at September 30, 2026.
- The long-term unsecured bank credit facility was increased from $700 million to $1.055 billion and its maturity was extended from August 2029 to August 2031.
- Net debt to adjusted EBITDA was 2.7x at September 30, 2026. Including estimated pro forma EBITDA contributions from acquisitions and other lender-permitted adjustments, the ratio was 2.6x, compared with 2.9x at September 30, 2025.
- Trailing-twelve-month operating cash flow was $679 million and adjusted free cash flow was $393 million.
- Existing-store pawn earning assets increased $235 million compared to last year.
- During the trailing twelve months, 29 pawn stores were acquired for $89 million, 41 de novo stores were opened with approximately $18 million of investment, and strategic real estate purchases at 47 stores totaled $87 million.
Analysis
FirstCash reported record third-quarter results, led by the pawn operations. Total revenue was $1,101,167 thousand, up 18% from $935,579 thousand, while net revenue increased 15% to $545,543 thousand. GAAP net income rose 22% to $101,152 thousand and GAAP diluted earnings per share rose 25% to $2.33. Adjusted net income was $116,181 thousand, adjusted diluted earnings per share was $2.68, and adjusted EBITDA increased 18% to $213,008 thousand. For the first nine months, revenue increased 24%, GAAP net income increased 34%, and adjusted EBITDA increased 28%.
Pawn operations supplied the growth. U.S. Pawn revenue was $514,703 thousand and increased 18%, with same-store pawn receivables up 12%, pawn loan fees up 12%, and retail merchandise sales up 10%. Latin America Pawn revenue was $310,706 thousand, up 35% on a U.S. dollar basis and 27% on a constant currency basis. Its reported performance benefited from an 8% favorable change in the average U.S. dollar to Mexican peso exchange rate. U.K. Pawn revenue was $99,370 thousand and segment pre-tax operating income was $29,200 thousand. Consolidated pawn loans reached $907,670 thousand at quarter-end.
The principal offset was AFF. Third-quarter AFF revenue was $176,806 thousand, and management said net revenue fell 20% from the prior-year quarter. Gross transaction volume declined 15% to $212,476 thousand, reflecting weakness in furniture and other discretionary, large-ticket retail sales and a greater focus on merchant quality. AFF segment pre-tax operating income was $33,159 thousand, a sequential increase but below the third quarter of 2025 because of lost earnings from previously reported merchant partner bankruptcies. The combined average monthly net charge-off rate for lease and finance products improved to 5.6% from 5.8%.
Margins were mixed by business line. U.S. Pawn segment pre-tax operating margin was 26%, equal to the prior-year quarter, while U.S. Pawn retail sales margin declined to 42% from 43%. Latin America Pawn retail sales margin was 35%, versus 36%. The nine-month U.S. Pawn segment pre-tax operating margin increased to 27% from 25%. Management also emphasized inventory discipline, citing U.S. inventory aged greater than one year of 1.6% excluding six recently acquired stores and Latin America inventory aged greater than one year of 1.3%.
Cash generation supported continued investment and shareholder returns. Trailing-twelve-month operating cash flow increased 18% to $679,038 thousand and adjusted free cash flow increased 27% to $392,919 thousand. The Company repurchased $123 million of stock in the quarter and $250 million year to date, and increased the quarterly dividend 10% to $0.46 per share. The credit facility was enlarged to $1.055 billion and extended to August 2031. Net debt to adjusted EBITDA was 2.7x, or 2.6x including specified pro forma acquisition contributions and lender-permitted adjustments.
Fourth-quarter guidance remains positive for pawn operations but calls for continued AFF contraction. Management expects low-double-digit U.S. pawn receivables and fee growth, low- to mid-teens Latin America pawn receivables and fee growth, and mid- to high-single-digit U.K. pawn receivables and fee growth. AFF gross transaction volume is forecast to decline in the mid-teens percentage range, while AFF net revenue is expected to decline 15% to 20%. The guide excludes any potential fourth-quarter acquisition contributions, and the Ramsdens transaction remains targeted for closing by the end of 2026 pending anti-trust approval and other customary conditions.
Management, verbatim
FirstCash delivered another outstanding quarter of operating results, with third quarter pawn revenue growth of 28%. Pawn demand remains exceptionally strong with a record $908 million in pawn receivables and all geographic segments posting double-digit increases in both same-store pawn receivables and pawn fees.
Rick Wessel, chief executive officer
The demand for pawn lending and deep-value retailing remains strong given the continued inflationary environment.
Rick Wessel, chief executive officer
Shareholder returns remain a priority as well and we are pleased to announce a 10% increase in the quarterly cash dividend to $0.46 per share, payable in November.
Rick Wessel, chief executive officer
Not in the filing
stated, not guessed- Prior-quarter income-statement comparisons for third-quarter and nine-month operating metrics
- Consolidated gross margin
- GAAP operating income
- GAAP and non-GAAP quarterly free cash flow prior-quarter comparisons
- A quantitative consolidated revenue outlook
- A quantitative consolidated gross-margin outlook
- A quantitative consolidated operating-expense outlook
- Previous-release outlook needed for comparison with prior guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
FirstCash Holdings filed a Form 8‑K reporting its Q3 2026 operating results, highlighting record revenue, earnings growth, and a dividend increase.
Ticker impact
FirstCash reported record third‑quarter revenue and earnings, 28% pawn‑segment revenue growth and issued a 10% higher quarterly cash dividend.
likely upward pressure as investors price in the earnings beat and higher dividend.
Record revenue, double‑digit earnings growth and a dividend raise signal robust cash flow, supporting a positive price move.
Market effects
Boosts the consumer‑finance and pawn‑shop sector, reinforcing earnings expectations for peers.
Positive impact on U.S. and Latin American retail finance markets where FirstCash operates.
Moderate, as the company’s global footprint adds a modest uplift to broader financial services sentiment.
Counterpoint
Valuation may be stretched despite growth; higher dividend could signal limited reinvestment opportunities.
Key entities
- companyFirstCash Holdings, Inc.
U.S. listed pawn‑shop operator reporting Q3 results.
