10-Q · April 24, 2026
FirstCash reported record Q1 2026 results with consolidated revenue of $1,051,651,000 (up ~25.8% YoY vs $836,423,000) and adjusted diluted EPS of $2.69 (vs $1.87 in Q1 2025). Growth was driven by large increases in pawn…
Earnings analysis · 10-Q
FCFS earnings analysis
Filed July 27, 2026 · Our reading of the company's report
The latest report
FirstCash posted strong Q2 revenue growth of 29% to $1.075 billion, driven by the U.S., Latin America, and the first full comparable contribution from H&T in the U.K.; GAAP EPS increased to $2.12 from $1.34 a year ago.…
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FirstCash posted strong Q2 revenue growth of 29% to $1.075 billion, driven by the U.S., Latin America, and the first full comparable contribution from H&T in the U.K.; GAAP EPS increased to $2.12 from $1.34 a year ago. Pawn operations expanded segment profit and U.S. margin, while AFF remained the key offset, with pretax income falling to $28.7 million amid furniture-sector weakness and higher delinquencies. Liquidity appears ample at $834.2 million of cash plus unused revolver availability, but debt costs, higher earning-asset investment, and the planned $307.5 million Ramsdens acquisition elevate capital-allocation and execution considerations.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.12
- Gross margin
- 49.7%
What stood out
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Revenue growth and year-over-year EPS expansion
Q2 revenue rose 29% to $1.075 billion from $830.6 million in Q2 2025 and increased 2% from $1.05 billion in Q1 2026. GAAP diluted EPS was $2.12, up 58% from $1.34 a year earlier but down 13% from $2.43 in Q1; adjusted diluted EPS was $2.50 versus $1.79.
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Gross margin held flat; pretax income increased
Gross margin was 49.7% ($533.7 million of net revenue on $1.075 billion of revenue), essentially flat with the 49.7% recorded in Q2 2025 and down from 51.6% in Q1 2026. Income before tax increased 57% to $127.0 million from $81.1 million.
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U.S. Pawn delivered higher income and margin
U.S. Pawn pretax segment income rose to $129.2 million from $98.3 million, and margin expanded to 26% from 24%. Retail sales increased 10% to $275.7 million, pawn fees rose 15% to $150.1 million, and scrap-jewelry revenue increased 152% to $72.3 million.
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Latin America growth remained strong
Latin America Pawn revenue grew 42% to $292.0 million, including 31% growth on a constant-currency basis; pretax segment income increased to $58.1 million from $41.0 million. Same-store pawn fees increased 19% on a constant-currency basis, although a favorable 11% Mexican-peso translation effect aided reported results.
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U.K. acquisition added a high-margin segment
The acquired U.K. Pawn segment contributed $95.3 million of Q2 revenue and $33.6 million of pretax segment income, a 35% pretax margin. Management also opened 9 U.K. stores in the first six months of 2026.
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Operating cash flow and liquidity strengthened
Six-month operating cash flow increased 36% to $330.4 million, while free cash flow was $130.0 million. The company had $172.3 million of cash, $661.9 million of unused revolver capacity, and $1.606 billion of working capital at June 30.
What to watch
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AFF earnings declined on weak transaction demand
Retail POS Payment Solutions pretax segment income fell 24% to $28.7 million from $37.9 million as revenue declined 12% to $189.5 million. Leased-merchandise income declined 17% to $115.5 million, driven by continued weakness in the furniture industry.
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AFF delinquencies and loss provisioning increased
Credit performance weakened in AFF portfolios: LTO delinquency rose to 25.6% from 23.2%, while finance-receivable delinquency increased to 22.3% from 20.6%. Finance-receivable provision rate rose to 29.0% from 27.9%.
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Higher leverage and acquisition funding needs
Interest expense increased 36% to $35.7 million as long-term debt rose, and the company issued $750.0 million of 2034 Notes during the first half. It also expects to finance the approximately $307.5 million Ramsdens acquisition with its Credit Facility.
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Earning-asset growth requires more capital
Pawn inventories rose to $570.5 million from $355.7 million and pawn loans increased to $897.6 million from $550.7 million year over year. The company funded a net $148.0 million increase in pawn loans in the first half, increasing working-capital funding requirements.
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Foreign-exchange benefit amplifies reported growth
Latin America reported growth was supported by currency: its Q2 pretax income benefited from an 11% favorable change in the average Mexican-peso exchange rate. Constant-currency retail sales growth was 15%, versus reported growth of 28%.
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No formal risk-factor update; integration continues
The filing states there were no material changes in risk factors from the 2025 Form 10-K. However, the company is integrating H&T into its internal-control assessment for 2026 and incurred $6.4 million of Q2 merger and acquisition expense, including $4.2 million of U.K. term-loan prepayment penalties.
Management's outlook
The 10-Q provides no consolidated revenue or EPS outlook. Management expects the Ramsdens acquisition to close by the end of 2026 for approximately £231.7 million ($307.5 million), financed with the Credit Facility, and states operating cash flow plus revolver availability should cover needs over the next 12 months and beyond.
Earlier filings 4
10-K · February 9, 2026
FirstCash describes a strategy of profitable growth through de novo openings and acquisitions (783 stores opened or acquired over five years) and expanded geographic reach via the August 14, 2025 acquisition of H&T (286…
10-Q · July 28, 2025
Q2 2025 revenue was essentially flat at $830,622 thousand versus $831,012 thousand a year earlier, while net income rose to $59,805 thousand from $49,073 thousand. Gross margin remained healthy at ~49.7% (net revenue…
10-K · February 3, 2025
FirstCash positions itself as the leading large-format pawn operator in the U.S. and Latin America with a complementary retail POS business (AFF). As of December 31, 2024 it operated 3,026 pawn stores (1,200 U.S.; 1,826…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.