Third quarter 2026
Filed Oct 22, 2026FirstCash 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.