FirstCash Holdings, Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS FIRSTCASH HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) September 30, December 31, 2024 2023 2023 ASSETS Cash and cash equivalents $ 106,320 $ 86,547 $ 127,018 Accounts receivable, net 74,378 72,336 71,922 Pawn loans 517,877 483,785 471,846 Finance receivables, net 123,751 113,307 113,901 Inventories 334,394 314,382 312,089 Leased merchandise, net 137,769 143,169 171,191 Prepaid expenses and other current assets 34,861 21,114 38,634 Total current assets 1,329,350 1,234,640 1,306,601 Property and equipment, net 689,075 604,673 632,724 Operating lease right of use asset 329,228 312,097 328,458 Goodwill 1,788,795 1,713,354 1,727,652 Intangible assets, net 241,389 291,690 277,724 Other assets 10,339 10,057 10,242 Deferred tax assets, net 4,671 8,052 6,514 Total assets $ 4,392,847 $ 4,174,563 $ 4,289,915 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued liabilities $ 133,792 $ 146,873 $ 163,050 Customer deposits and prepayments 78,083 71,752 70,580 Lease liability, current 96,598 98,745 101,962 Total current liabilities 308,473 317,370 335,592 Revolving unsecured credit facilities 200,000 560,229 568,000 Senior unsecured notes 1,530,604 1,037,151 1,037,647 Deferred tax liabilities, net 127,425 139,713 136,773 Lease liability, non-current 227,151 202,516 215,485 Total liabilities 2,393,653 2,256,979 2,293,497 Stockholders’ equity: Common stock 575 573 573 Additional paid-in capital 1,764,351 1,737,497 1,741,046 Retained earnings 1,344,542 1,164,228 1,218,029 Accumulated other comprehensive loss ( 114,807 ) ( 64,521 ) ( 43,037 ) Common stock held in treasury, at cost ( 995,467 ) ( 920,193 ) ( 920,193 ) Total stockholders’ equity 1,999,194 1,917,584 1,996,418 Total liabilities and stockholders’ equity $ 4,392,847 $ 4,174,563 $ 4,289,915 The accompanying notes are an integral part of these consolidated financial statements. 1 Table of Contents FIRSTCASH HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Revenue: Retail merchandise sales $ 363,141 $ 335,081 $ 1,093,425 $ 983,860 Pawn loan fees 186,561 174,560 547,142 480,298 Leased merchandise income 188,560 189,382 588,801 562,625 Interest and fees on finance receivables 61,198 61,413 175,384 174,247 Wholesale scrap jewelry sales 37,861 25,865 99,951 98,632 Total revenue 837,321 786,301 2,504,703 2,299,662 Cost of revenue: Cost of retail merchandise sold 218,178 199,719 659,854 590,991 Depreciation of leased merchandise 104,928 103,698 335,369 307,824 Provision for lease losses 39,171 39,736 129,834 141,674 Provision for loan losses 40,557 33,096 102,091 90,571 Cost of wholesale scrap jewelry sold 29,880 21,405 81,711 79,012 Total cost of revenue 432,714 397,654 1,308,859 1,210,072 Net revenue 404,607 388,647 1,195,844 1,089,590 Expenses and other income: Operating expenses 224,926 211,524 674,431 615,366 Administrative expenses 40,930 45,056 129,563 124,428 Depreciation and amortization 25,933 27,365 78,507 81,526 Interest expense 27,424 24,689 78,029 66,657 Interest income ( 403 ) ( 328 ) ( 1,407 ) ( 1,253 ) Loss (gain) on foreign exchange 882 ( 286 ) 2,133 ( 1,905 ) Merger and acquisition expenses 225 3,387 2,186 3,670 Other expenses (income), net ( 490 ) ( 384 ) ( 841 ) ( 260 ) Total expenses and other income 319,427 311,023 962,601 888,229 Income before income taxes 85,180 77,624 233,243 201,361 Provision for income taxes 20,353 20,480 57,975 51,649 Net income $ 64,827 $ 57,144 $ 175,268 $ 149,712 Earnings per share: Basic $ 1.45 $ 1.27 $ 3.89 $ 3.29 Diluted $ 1.44 $ 1.26 $ 3.88 $ 3.27 The accompanying notes are an integral part of these consolidated financial statements. 2 Table of Contents FIRSTCASH HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited, in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net income $ 64,827 $ 57,144 $ 175,268 $ 149,712 Other comprehensive income (loss): Currency translation adjustment ( 30,441 ) ( 15,263 ) ( 71,770 ) 42,052 Comprehensive income $ 34,386 $ 41,881 $ 103,498 $ 191,764 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents FIRSTCASH HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited, in thousands, except per share amounts) Nine Months Ended September 30, 2024 Common Stock Additional Paid-In Capital Retained Earnings Accum- ulated Other Compre- hensive Loss Common Stock Held in Treasury Total Stock- holders’ Equity Shares Amount Shares Amount As of 12/31/2023 57,322 $ 573 $ 1,741,046 $ 1,218,029 $ ( 43,037 ) 12,214 $ ( 920,193 ) $ 1,996,418 Shares issued under share-based compensation plan, net of 59 shares net-settled — — ( 17,583 ) — — ( 140 ) 10,576 ( 7,007 ) Share-based compensation expense — — 4,101 — — — — 4,101 Net income — — — 61,368 — — — 61,368 Cash dividends ($ 0.35 per share) — — — ( 15,833 ) — — — ( 15,833 ) Currency translation adjustment — — — — 6,335 — — 6,335 As of 3/31/2024 57,322 $ 573 $ 1,727,564 $ 1,263,564 $ ( 36,702 ) 12,074 $ ( 909,617 ) $ 2,045,382 Shares issued upon acquisition of pawn stores 225 2 29,320 — — — — 29,322 Share-based compensation expense — — 4,102 — — — — 4,102 Net income — — — 49,073 — — — 49,073 Cash dividends ($ 0.35 per share) — — — ( 15,916 ) — — — ( 15,916 ) Currency translation adjustment — — — — ( 47,664 ) — — ( 47,664 ) Purchases of treasury stock, including excise tax — — — — — 721 ( 85,850 ) ( 85,850 ) As of 6/30/2024 57,547 $ 575 $ 1,760,986 $ 1,296,721 $ ( 84,366 ) 12,795 $ ( 995,467 ) $ 1,978,449 Share-based compensation expense — — 3,365 — — — — 3,365 Net income — — — 64,827 — — — 64,827 Cash dividends ($ 0.38 per share) — — — ( 17,006 ) — — — ( 17,006 ) Currency translation adjustment — — — — ( 30,441 ) — — ( 30,441 ) As of 9/30/2024 57,547 $ 575 $ 1,764,351 $ 1,344,542 $ ( 114,807 ) 12,795 $ ( 995,467 ) $ 1,999,194 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents FIRSTCASH HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY CONTINUED (unaudited, in thousands, except per share amounts) Nine Months Ended September 30, 2023 Common Stock Additional Paid-In Capital Retained Earnings Accum- ulated Other Compre- hensive Loss Common Stock Held in Treasury Total Stock- holders’ Equity Shares Amount Shares Amount As of 12/31/2022 57,322 $ 573 $ 1,734,528 $ 1,060,603 $ ( 106,573 ) 11,030 $ ( 809,365 ) $ 1,879,766 Shares issued under share-based compensation plan, net of 28 shares net-settled — — ( 7,156 ) — — ( 64 ) 4,693 ( 2,463 ) Share-based compensation expense — — 3,375 — — — — 3,375 Net income — — — 47,388 — — — 47,388 Cash dividends ($ 0.33 per share) — — — ( 15,294 ) — — — ( 15,294 ) Currency translation adjustment — — — — 29,513 — — 29,513 Purchases of treasury stock, including excise tax — — — — — 782 ( 71,411 ) ( 71,411 ) As of 3/31/2023 57,322 $ 573 $ 1,730,747 $ 1,092,697 $ ( 77,060 ) 11,748 $ ( 876,083 ) $ 1,870,874 Share-based compensation expense — — 3,375 — — — — 3,375 Net income — — — 45,180 — — — 45,180 Cash dividends ($ 0.33 per share) — — — ( 15,298 ) — — — ( 15,298 ) Currency translation adjustment — — — — 27,802 — — 27,802 Purchases of treasury stock, including excise tax — — — — — 371 ( 35,214 ) ( 35,214 ) As of 6/30/2023 57,322 $ 573 $ 1,734,122 $ 1,122,579 $ ( 49,258 ) 12,119 $ ( 911,297 ) $ 1,896,719 Share-based compensation expense — — 3,375 — — — — 3,375 Net income — — — 57,144 — — — 57,144 Cash dividends ($ 0.35 per share) — — — ( 15,495 ) — — — ( 15,495 ) Currency translation adjustment — — — — ( 15,263 ) — — ( 15,263 ) Purchases of treasury stock, including excise tax — — — — — 95 ( 8,896 ) ( 8,896 ) As of 9/30/2023 57,322 $ 573 $ 1,737,497 $ 1,164,228 $ ( 64,521 ) 12,214 $ ( 920,193 ) $ 1,917,584 The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents FIRSTCASH HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands) Nine Months Ended September 30, 2024 2023 Cash flow from operating activities: Net income $ 175,268 $ 149,712 Adjustments to reconcile net income to net cash flow provided by operating activities: Depreciation of leased merchandise 335,369 307,824 Provision for lease losses 129,834 141,674 Provision for loan losses 102,091 90,571 Share-based compensation expense 11,568 10,125 Depreciation and amortization expense 78,507 81,526 Amortization of debt issuance costs 2,707 2,067 Net amortization of premiums, discounts and unearned origination fees on finance receivables ( 25,755 ) ( 12,390 ) Impairments and dispositions of certain other assets 1,415 346 Deferred income taxes, net ( 8,337 ) ( 12,000 ) Changes in operating assets and liabilities, net of business combinations: Accounts receivable, net ( 4,244 ) ( 9,998 ) Inventories purchased directly from customers, wholesalers or manufacturers ( 9,219 ) ( 939 ) Leased merchandise, net ( 431,783 ) ( 439,365 ) Prepaid expenses and other assets 420 ( 427 ) Accounts payable, accrued liabilities and other liabilities ( 17,513 ) ( 7,594 ) Income taxes 1,481 15,905 Net cash flow provided by operating activities 341,809 317,037 Cash flow from investing activities: Pawn loans, net (1) ( 69,723 ) ( 59,426 ) Finance receivables, net ( 86,186 ) ( 87,994 ) Purchases of furniture, fixtures, equipment and improvements ( 56,032 ) ( 46,723 ) Purchases of store real property ( 54,304 ) ( 46,677 ) Acquisitions of pawn stores, net of cash acquired ( 69,238 ) ( 168,353 ) Net cash flow used in investing activities ( 335,483 ) ( 409,173 ) Cash flow from financing activities: Borrowings from unsecured credit facilities 389,000 545,835 Repayments of unsecured credit facilities ( 757,000 ) ( 322,967 ) Issuance of senior unsecured notes 500,000 — Debt issuance costs paid ( 10,425 ) ( 90 ) Purchases of treasury stock ( 85,000 ) ( 115,521 ) Payment of withholding taxes on net share settlements of restricted stock unit awards ( 7,007 ) ( 2,463 ) Dividends paid ( 48,755 ) ( 46,087 ) Net cash flow (used in) provided by financing activities ( 19,187 ) 58,707 6 Table of Contents FIRSTCASH HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS CONTINUED (unaudited, in thousands) Nine Months Ended September 30, 2024 2023 Effect of exchange rates on cash ( 7,837 ) 2,646 Change in cash and cash equivalents ( 20,698 ) ( 30,783 ) Cash and cash equivalents at beginning of the period 127,018 117,330 Cash and cash equivalents at end of the period $ 106,320 $ 86,547 (1) Includes the funding of new pawn loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral. The accompanying notes are an integral part of these consolidated financial statements. 7 Table of Contents FIRSTCASH HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1 - General Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2023, which is derived from audited consolidated financial statements, and the unaudited consolidated financial statements, including the notes thereto, includes the accounts of FirstCash Holdings, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions, and the results of operations for the acquisitions have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. These interim period financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 5, 2024. The consolidated financial statements as of September 30, 2024 and 2023, and for the three month and nine month periods ended September 30, 2024 and 2023, are unaudited, but in management’s opinion include all adjustments (consisting of only normal recurring adjustments) considered necessary to present fairly the financial position, results of operations and cash flow for such interim periods. Operating results for the periods ended September 30, 2024 are not necessarily indicative of the results that may be expected for the full year. The Company has pawn operations in Latin America, where in Mexico, Guatemala and Colombia, the functional currency is the Mexican peso, Guatemalan quetzal and Colombian peso. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenues and expenses are translated at the average exchange rates occurring during the respective period. The Company also has pawn operations in El Salvador, where the reporting and functional currency is the U.S. dollar. Use of Estimates The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related revenue and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements. Such estimates and assumptions are subject to a number of risks and uncertainties, which may cause actual results to differ materially from the Company’s estimates. Recent Accounting Pronouncements In October 2023, the FASB issued ASU No 2023-06, “Disclosure Agreements – Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” (“ASU 2023-06”). ASU 2023-06 will align the disclosure and presentation requirements in the FASB Accounting Standards Codification with the SEC’s regulations. The amendments in ASU 2023-06 will be applied prospectively and are effective when the SEC removes the related requirements from Regulations S-X or S-K. Any amendments the SEC does not remove by June 30, 2027 will not be effective. As the Company is currently subject to these SEC requirements, ASU 2023-06 is not expected to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In November 2023, the FASB issued ASU No 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 expands disclosures about a public entity’s reportable segments and requires more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how a public entity’s chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-07 should be applied retrospectively to all prior periods presented in the financial statements. The Company does not expect ASU 2023-07 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. 8 Table of Contents In December 2023, the FASB issued ASU No 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 expands disclosures in the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 should be applied prospectively, however, retrospective application is permitted. The Company does not expect ASU 2023-09 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In March 2024, the FASB issued ASU No 2024-02, “Codification Improvements - Amendments to Remove References to the Concepts Statements” (“ASU 2024-02”). ASU 2024-02 removes references to various Concepts Statements. In most instances, the references are extraneous and not required to understand or apply the guidance. ASU 2024-02 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2024-02 can be applied prospectively or retrospectively. The Company adopted ASU 2024-02 effective January 1, 2024 on a prospective basis. The adoption of ASU 2024-02 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures . Note 2 - Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Numerator: Net income $ 64,827 $ 57,144 $ 175,268 $ 149,712 Denominator: Weighted-average common shares for calculating basic earnings per share 44,752 45,114 45,039 45,531 Effect of dilutive securities: Restricted stock unit awards 218 260 175 216 Weighted-average common shares for calculating diluted earnings per share 44,970 45,374 45,214 45,747 Earnings per share: Basic $ 1.45 $ 1.27 $ 3.89 $ 3.29 Diluted $ 1.44 $ 1.26 $ 3.88 $ 3.27 Note 3 - Acquisitions Consistent with the Company’s strategy to continue its expansion of pawn stores in strategic markets, during the nine months ended September 30, 2024, the Company acquired 28 pawn stores in the U.S. in five separate transactions and acquired one pawn license that was used to open one new pawn store in the state of Nevada. The aggregate purchase price for these acquisitions totaled $ 102.8 million, net of cash acquired and subject to future post-closing adjustments. The aggregate purchase price was composed of $ 68.6 million in cash, $ 29.3 million in stock consideration and remaining short-term amounts payable to certain of the sellers of approximately $ 4.9 million. During the nine months ended September 30, 2024, the Company also paid $ 0.6 million of purchase price amounts payable related to prior-year pawn acquisitions. The purchase price of each of the 2024 acquisitions was allocated to assets acquired and liabilities assumed based upon the estimated fair values at the date of acquisition. The excess purchase price over the estimated fair value of the net assets acquired has been recorded as goodwill. The goodwill arising from these acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the Company and the pawn stores acquired. These acquisitions were not material individually or in the aggregate to the Company’s consolidated financial statements. 9 Table of Contents The estimated fair value of the assets acquired and liabilities assumed are preliminary, as the Company is gathering information to finalize the valuation of these assets and liabilities. The preliminary allocation of the aggregate purchase prices for these individually immaterial acquisitions during the nine months ended September 30, 2024 is as follows (in thousands): Pawn loans $ 11,669 Accounts receivable 816 Inventories 8,743 Prepaid expenses and other current assets 5 Property and equipment 561 Operating lease right of use asset 13,258 Goodwill (1) 82,357 Intangible assets 1,280 Current liabilities ( 2,665 ) Lease liability ( 13,258 ) Aggregate purchase price $ 102,766 (1) Substantially all of the goodwill is expected to be deductible for U.S. income tax purposes . The results of operations for the acquired stores have been consolidated since the respective acquisition dates. During 2024, revenue from the acquired stores was $ 20.7 million and the earnings from the combined acquisitions since the acquisition dates (including $ 1.7 million of transaction and integration costs, net of tax) was $ 4.2 million. Note 4 - Operating Leases Lessor For information about the Company’s revenue-generating activities as a lessor, refer to the “Leased merchandise and revenue recognition” section of Note 2 to the consolidated financial statements included in the Company’s 2023 Annual Report on Form 10-K. All of the Company’s lease agreements are considered operating leases. Lessee The Company leases the majority of its pawnshop locations and certain administrative offices under operating leases and determines if an arrangement is or contains a lease at inception. Many leases include both lease and non-lease components for which the Company accounts separately. Lease components include rent, taxes and insurance costs while non-lease components include common area or other maintenance costs. Operating leases are included in operating lease right of use assets, lease liability, current and lease liability, non-current in the consolidated balance sheets. The Company does not have any finance leases. Leased facilities are generally leased for a term of three to five years with one or more options to renew for an additional three to five years , typically at the Company’s sole discretion. In addition, the majority of these leases can be terminated early upon an adverse change in law which negatively affects the store’s profitability. The Company regularly evaluates renewal and termination options to determine if the Company is reasonably certain to exercise the option, and excludes these options from the lease term included in the recognition of the operating lease right of use asset and lease liability until such certainty exists. The weighted-average remaining lease term for operating leases was 4.2 years as of September 30, 2024 and 3.9 years as of September 30, 2023. The operating lease right of use asset and lease liability is recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate, and therefore, it uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company utilizes a portfolio approach for determining the incremental borrowing rate to apply to groups of leases with similar characteristics. The weighted-average discount rate used to measure the lease liability as of September 30, 2024 and 2023 was 8.4 % and 7.7 %, respectively. 10 Table of Contents The Company has certain operating leases in Mexico which are denominated in U.S. dollars. The liability related to these leases is considered a monetary liability and requires remeasurement each reporting period into the functional currency (Mexican pesos) using reporting date exchange rates. The remeasurement results in the recognition of foreign currency exchange gains or losses each reporting period, which can produce a certain level of earnings volatility. The Company recognized a foreign currency loss of $ 1.4 million and $ 0.6 million during the three months ended September 30, 2024 and 2023, respectively, related to the remeasurement of these U.S. dollar-denominated operating leases, which is included in loss (gain) on foreign exchange in the accompanying consolidated statements of income. During the nine months ended September 30, 2024 and 2023, the Company recognized a foreign currency loss of $ 3.0 million and a gain of $ 1.7 million, respectively, related to these U.S. dollar denominated leases. Lease expense is recognized on a straight-line basis over the lease term, with variable lease expense recognized in the period such payments are incurred. The following table details the components of lease expense included in operating expenses in the consolidated statements of income during the three and nine months ended September 30, 2024 and 2023 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Operating lease expense $ 36,288 $ 36,687 $ 110,760 $ 104,702 Variable lease expense (1) 4,917 4,744 14,945 13,777 Total operating lease expense $ 41,205 $ 41,431 $ 125,705 $ 118,479 (1) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details the maturity of lease liabilities for all operating leases as of September 30, 2024 (in thousands): Three months ending December 31, 2024 $ 31,733 2025 113,581 2026 90,355 2027 63,051 2028 41,367 Thereafter 43,244 Total $ 383,331 Less amount of lease payments representing interest ( 59,582 ) Total present value of lease payments $ 323,749 The following table details supplemental cash flow information related to operating leases for the nine months ended September 30, 2024 and 2023 (in thousands): Nine Months Ended September 30, 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 99,910 $ 92,233 Leased assets obtained in exchange for new operating lease liabilities $ 104,584 $ 72,663 11 Table of Contents Note 5 - Fair Value of Financial Instruments The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements The Company did not have any financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2024, September 30, 2023 and December 31, 2023. Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities, such as property and equipment and intangible assets, at fair value on a non-recurring basis, or when events or circumstances indicate that the carrying amount of the assets may be impaired. There were no such events or conditions identified during the nine months ended September 30, 2024. Financial Assets and Liabilities Not Measured at Fair Value, But for Which Fair Value is Disclosed The Company’s financial assets and liabilities as of September 30, 2024, September 30, 2023 and December 31, 2023 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2024 2024 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 106,320 $ 106,320 $ 106,320 $ — $ — Accounts receivable, net 74,378 74,378 — — 74,378 Pawn loans 517,877 517,877 — — 517,877 Finance receivables, net (1) 123,751 264,517 — — 264,517 $ 822,326 $ 963,092 $ 106,320 $ — $ 856,772 Financial liabilities: Revolving unsecured credit facilities $ 200,000 $ 200,000 $ — $ 200,000 $ — Senior unsecured notes (outstanding principal) 1,550,000 1,534,000 — 1,534,000 — $ 1,750,000 $ 1,734,000 $ — $ 1,734,000 $ — (1) Finance receivables, gross as of September 30, 2024 was $ 259.5 million. See Note 6. 12 Table of Contents Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2023 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 86,547 $ 86,547 $ 86,547 $ — $ — Accounts receivable, net 72,336 72,336 — — 72,336 Pawn loans 483,785 483,785 — — 483,785 Finance receivables, net (1) 113,307 230,357 — — 230,357 $ 755,975 $ 873,025 $ 86,547 $ — $ 786,478 Financial liabilities: Revolving unsecured credit facilities $ 560,229 $ 560,229 $ — $ 560,229 $ — Senior unsecured notes (outstanding principal) 1,050,000 938,000 — 938,000 — $ 1,610,229 $ 1,498,229 $ — $ 1,498,229 $ — (1) Finance receivables, gross as of September 30, 2023 was $ 224.6 million. See Note 6. Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2023 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 127,018 $ 127,018 $ 127,018 $ — $ — Accounts receivable, net 71,922 71,922 — — 71,922 Pawn loans 471,846 471,846 — — 471,846 Finance receivables, net (1) 113,901 227,732 — — 227,732 $ 784,687 $ 898,518 $ 127,018 $ — $ 771,500 Financial liabilities: Revolving unsecured credit facilities $ 568,000 $ 568,000 $ — $ 568,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 987,000 — 987,000 — $ 1,618,000 $ 1,555,000 $ — $ 1,555,000 $ — (1) Finance receivables, gross as of December 31, 2023 were $ 227.5 million. See Note 6. As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and accounts receivable, net approximate fair value. Finance receivables are measured at amortized cost, net of an allowance for loan losses on the consolidated balance sheets. In estimating fair value for finance receivables, the Company utilized a discounted cash flow methodology. The Company used various unobservable inputs reflecting its own assumptions, such as contractual future principal and interest cash flows, future charge-off rates and discount rates (which consider current interest rates and are adjusted for credit risk, among other factors). The carrying value of the unsecured credit facilities approximates fair value as of September 30, 2024, September 30, 2023 and December 31, 2023. The fair value of the unsecured credit facilities is estimated based on market values for debt issuances with similar characteristics or rates currently available for debt with similar terms. In addition, the unsecured credit facilities have a variable interest rate based on the prevailing secured overnight financing rate (“SOFR”) or the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) and reprice with any changes in SOFR or TIIE. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active. 13 Table of Contents Note 6 - Finance Receivables, Net Finance receivables, net, which include retail installment sales agreements and bank-originated loans, consist of the following (in thousands): As of September 30, As of December 31, 2024 2023 2023 Finance receivables, gross $ 259,485 $ 224,618 $ 227,474 Merchant partner discounts and premiums, net ( 20,227 ) ( 9,730 ) ( 11,907 ) Unearned origination fees ( 6,310 ) ( 4,897 ) ( 5,212 ) Finance receivables, amortized cost 232,948 209,991 210,355 Less allowance for loan losses ( 109,197 ) ( 96,684 ) ( 96,454 ) Finance receivables, net $ 123,751 $ 113,307 $ 113,901 The following table details the changes in the allowance for loan losses (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Balance at beginning of period $ 99,961 $ 93,054 $ 96,454 $ 84,833 Provision for loan losses 40,557 33,096 102,091 90,571 Charge-offs ( 32,969 ) ( 30,890 ) ( 95,061 ) ( 83,281 ) Recoveries 1,648 1,424 5,713 4,561 Balance at end of period $ 109,197 $ 96,684 $ 109,197 $ 96,684 14 Table of Contents The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of September 30, 2024 and 2023, by origination year (in thousands): Origination Year 2024 2023 2022 Total As of September 30, 2024 Delinquency: 1 to 30 days past due $ 16,957 $ 4,739 $ 173 $ 21,869 31 to 60 days past due 9,835 3,471 131 13,437 61 to 89 days past due (1) 7,060 3,162 155 10,377 Total past due finance receivables 33,852 11,372 459 45,683 Current finance receivables 152,138 34,253 874 187,265 Finance receivables, amortized cost $ 185,990 $ 45,625 $ 1,333 $ 232,948 Origination Year 2023 2022 2021 Total As of September 30, 2023 Delinquency: 1 to 30 days past due $ 18,395 $ 5,014 $ 224 $ 23,633 31 to 60 days past due 9,193 2,865 151 12,209 61 to 89 days past due (1) 7,240 2,858 174 10,272 Total past due finance receivables 34,828 10,737 549 46,114 Current finance receivables 132,635 30,243 999 163,877 Finance receivables, amortized cost $ 167,463 $ 40,980 $ 1,548 $ 209,991 (1) The Company charges off finance receivables when a receivable is 90 days or more contractually past due. The following table details the gross charge-offs of finance receivables for the nine months ended September 30, 2024 and 2023, by origination year (in thousands): Origination Year 2024 2023 2022 2021 Total Finance receivables gross charge-offs: Gross charge-offs during the nine months ended September 30, 2024 $ 25,359 $ 63,525 $ 6,177 $ — $ 95,061 Gross charge-offs during the nine months ended September 30, 2023 — 24,676 51,150 7,455 83,281 15 Table of Contents Note 7 - Leased Merchandise, Net Leased merchandise, net consists of the following (in thousands): As of September 30, As of December 31, 2024 2023 2023 Leased merchandise $ 348,675 $ 365,677 $ 384,129 Processing fees ( 3,809 ) ( 4,155 ) ( 4,348 ) Merchant partner discounts and premiums, net 1,034 2,566 2,501 Accumulated depreciation ( 114,762 ) ( 115,774 ) ( 115,964 ) Leased merchandise, before allowance for lease losses 231,138 248,314 266,318 Less allowance for lease losses ( 93,369 ) ( 105,145 ) ( 95,127 ) Leased merchandise, net $ 137,769 $ 143,169 $ 171,191 The following table details the changes in the allowance for lease losses (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Balance at beginning of period $ 102,778 $ 110,972 $ 95,127 $ 79,189 Provision for lease losses 39,171 39,736 129,834 141,674 Charge-offs ( 50,228 ) ( 47,225 ) ( 136,907 ) ( 120,726 ) Recoveries 1,648 1,662 5,315 5,008 Balance at end of period $ 93,369 $ 105,145 $ 93,369 $ 105,145 16 Table of Contents Note 8 - Long-Term Debt The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs on the senior unsecured notes (in thousands): As of September 30, As of December 31, 2024 2023 2023 Revolving unsecured credit facilities: Revolving unsecured credit facility, maturing 2029 (1) $ 200,000 $ 531,000 $ 568,000 Revolving unsecured uncommitted credit facility, maturing 2027 (1) — 29,229 — Total revolving unsecured credit facilities 200,000 560,229 568,000 Senior unsecured notes: 4.625 % senior unsecured notes due 2028 (2) 495,304 494,239 494,499 5.625 % senior unsecured notes due 2030 (3) 543,879 542,912 543,148 6.875 % senior unsecured notes due 2032 (4) 491,421 — — Total senior unsecured notes 1,530,604 1,037,151 1,037,647 Total long-term debt $ 1,730,604 $ 1,597,380 $ 1,605,647 (1) Debt issuance costs related to the Company’s revolving unsecured credit facilities are included in other assets in the accompanying consolidated balance sheets. (2) As of September 30, 2024, September 30, 2023 and December 31, 2023, deferred debt issuance costs of $ 4.7 million, $ 5.8 million and $ 5.5 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2028 in the accompanying consolidated balance sheets. (3) As of September 30, 2024, September 30, 2023 and December 31, 2023, deferred debt issuance costs of $ 6.1 million, $ 7.1 million and $ 6.9 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2030 in the accompanying consolidated balance sheets. (4) As of September 30, 2024, deferred debt issuance costs of $ 8.6 million are included as a direct deduction from the carrying amount of the senior unsecured notes due 2032 in the accompanying consolidated balance sheets. Revolving Unsecured Credit Facility During the period from January 1, 2024 through August 8, 2024, the Company maintained an unsecured line of credit with a group of U.S.-based commercial lenders (the “Credit Facility”) in the amount of $ 640.0 million, which was scheduled to mature on August 30, 2027. The Credit Facility charged interest, at the Company’s option, of either (i) the prevailing SOFR (with interest periods of 1, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5 % and a fixed SOFR adjustment of 0.1 % or (ii) the prevailing prime or base rate plus a fixed spread of 1.5 % . On August 8, 2024, the Credit Facility was amended (the “2024 Amendment”) in order to increase the total lender commitment, extend the term of the Credit Facility, amend certain financial covenants and modify the benchmark interest rate. Under the 2024 Amendment, the total lender commitment was increased from $ 640.0 million to $ 700.0 million and the term of the Credit Facility was extended to August 8, 2029. In addition, the permitted consolidated leverage ratio was increased to 3.25 times adjusted EBITDA for the full term of the agreement, while the other financial covenants remain substantially unchanged. The Credit Facility, as amended by the 2024 Amendment, now bears interest at the Company’s option of either (i) the prevailing SOFR (with interest periods of 1, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5 % or (ii) the prevailing prime or base rate plus a fixed spread of 1.5 %. 17 Table of Contents As of September 30, 2024, the Company had $ 200.0 million in outstanding borrowings and $ 2.8 million in outstanding letters of credit under the Credit Facility, leaving $ 497.2 million available for future borrowings, subject to certain financial covenants. The agreement has an interest rate floor of 0 %. Additionally, the Company is required to pay an annual commitment fee of 0.325 % on the average daily unused portion of the Credit Facility commitment. The weighted-average interest rate on amounts outstanding under the Credit Facility at September 30, 2024 was 7.41 % based on 1-month SOFR. Under the terms of the Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Credit Facility also contains customary restrictions on the Company’s ability to incur additional debt, grant liens, make investments, consummate acquisitions and similar negative covenants with customary carve-outs and baskets. The Company was in compliance with the covenants of the Credit Facility as of September 30, 2024. During the nine months ended September 30, 2024, the Company made net payments of $ 368.0 million pursuant to the Credit Facility. Revolving Unsecured Uncommitted Credit Facility As of September 30, 2024, the Company’s primary subsidiary in Mexico, First Cash S.A. de C.V., maintained an unsecured and uncommitted line of credit guaranteed by FirstCash, Inc. with a bank in Mexico (the “Mexico Credit Facility”) in the amount of $ 600.0 million Mexican pesos. The Mexico Credit Facility bears interest at TIIE plus a fixed spread of 2.25 % and matures on August 24, 2027. Under the terms of the Mexico Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Company was in compliance with the covenants of the Mexico Credit Facility as of September 30, 2024. At September 30, 2024, the Company had no amount outstanding under the Mexico Credit Facility and $ 30.6 million ($ 600.0 million pesos) available for future borrowings. Senior Unsecured Notes Due 2028 On August 26, 2020, the Company issued $ 500.0 million of 4.625 % senior unsecured notes due on September 1, 2028 (the “2028 Notes”), all of which are currently outstanding. Interest on the 2028 Notes is payable semi-annually in arrears on March 1 and September 1. The 2028 Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its Credit Facility. The 2028 Notes will permit the Company to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio is less than 2.75 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2028 Notes as the ratio of (i) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (ii) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period. As of September 30, 2024, the Company’s consolidated total debt ratio was 2.8 to 1. While the 2028 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 2.75 to 1, restricted payments are allowable within certain permitted baskets, which currently provide the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 2.75 to 1. Senior Unsecured Notes Due 2030 On December 13, 2021, the Company issued $ 550.0 million of 5.625 % senior unsecured notes due on January 1, 2030 (the “2030 Notes”), all of which are currently outstanding. Interest on the 2030 Notes is payable semi-annually in arrears on January 1 and July 1. The 2030 Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its Credit Facility. The 2030 Notes will permit the Company to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio is less than 3.0 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2030 Notes as the ratio of (i) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (ii) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period. As of September 30, 2024, the Company’s consolidated total debt ratio was 2.8 to 1. While the 2030 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 3.0 to 1, restricted payments are allowable within certain permitted baskets, which currently provides the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 3.0 to 1. 18 Table of Contents Senior Unsecured Notes Due 2032 On February 21, 2024, the Company issued $ 500.0 million of 6.875 % senior unsecured notes due on March 1, 2032 (the “2032 Notes”), all of which are currently outstanding. Interest on the 2032 Notes is payable semi-annually in arrears on March 1 and September 1, commencing on September 1, 2024. The 2032 Notes were sold in a private placement in reliance on Rule 144A and Regulation S under the Securities Act of 1933, as amended. The Company used the net proceeds from the offering to repay a portion of the outstanding balance on the Credit Facility, after payment of fees and expenses related to the offering. The Company capitalized $ 9.1 million in debt issuance costs, which consisted primarily of the initial purchaser’s discount and fees and legal and other professional expenses. The debt issuance costs are being amortized over the life of the 2032 Notes as a component of interest expense and are carried as a direct deduction from the carrying amount of the 2032 Notes in the accompanying consolidated balance sheets. The 2032 Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its Credit Facility. The 2032 Notes will permit the Company to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio is less than 3.0 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2032 Notes (the “2032 Notes Indenture”) as the ratio of (i) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (ii) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period. As of September 30, 2024, the Company’s consolidated total debt ratio was 2.8 to 1. While the 2032 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 3.0 to 1, restricted payments are allowable within certain permitted baskets, which currently provides the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 3.0 to 1. The Company may redeem some or all of the 2032 Notes at any time on or after March 1, 2027, at the redemption prices set forth in the 2032 Notes Indenture, plus accrued and unpaid interest, if any. In addition, prior to March 1, 2027, the Company may redeem some or all of the 2032 Notes at a price equal to 100 % of the principal amount thereof, plus accrued and unpaid interest, if any, plus a “make-whole” premium set forth in the 2032 Notes Indenture. The Company may redeem up to 40 % of the 2032 Notes on or prior to March 1, 2027 with the proceeds of certain equity offerings at the redemption prices set forth in the 2032 Notes Indenture. If the Company or any of its restricted subsidiaries sells certain assets or if the Company consummates certain change in control transactions, the Company will be required to make an offer to repurchase the 2032 Notes. 19 Table of Contents Note 9 - Commitments and Contingencies Litigation The Company, in the ordinary course of business, is a party to various legal and regulatory proceedings and other general claims. Although no assurances can be given, in management’s opinion, such outstanding proceedings are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company believes it has meritorious defenses to all of the claims described below and intends to vigorously defend itself against such claims. However, legal and regulatory proceedings involve an inherent level of uncertainty and no assurances can be given regarding the ultimate outcome of any such matters or whether an adverse outcome would not have a material adverse impact on the Company’s financial position, results of operations, or cash flows. At this stage, the Company is unable to determine whether a future loss will be incurred for any of its material outstanding legal and regulatory proceedings or to estimate a range of loss with respect to such proceeding, if any, and accordingly, no material amounts have been accrued in the Company’s financial statements for legal and regulatory proceedings. On November 12, 2021, the CFPB initiated a civil action in the United States District Court for the Northern District of Texas (the “N.D. Texas Court”) against FirstCash, Inc. and Cash America West, Inc., two of the Company’s subsidiaries, alleging violations of the Military Lending Act (“MLA”) in connection with pawn transactions. The CFPB also alleges that these same alleged violations of the MLA constitute breaches of a 2013 CFPB consent order entered into by its predecessor company that, among other things, allegedly required the company and its successors to cease and desist from further MLA violations. The CFPB is seeking an injunction, redress for affected borrowers and a civil monetary penalty. After an initial period of pre-trial activity, the case was stayed on November 4, 2022, pending the Supreme Court review of the Fifth Circuit's decision in Community Financial v. CFPB , where the Fifth Circuit held the CFPB’s funding mechanism was unconstitutional and its ensuing actions were void. The Supreme Court reversed that decision through an opinion issued on May 16, 2024. The N.D. Texas Court then issued a scheduling order on June 18, 2024, with the case currently scheduled for trial in June of 2025. On July 2, 2024, the CFPB renewed their prior motion to strike certain affirmative defenses of the Company, which the Company has opposed, including through the submission of a motion for partial summary judgment. That motion remains under submission. The Company intends to vigorously defend the action. Gold Forward Sales Contracts As of September 30, 2024, the Company had contractual commitments to deliver a total of 72,500 gold ounces between the months of October 2024 and June 2026 at a weighted-average price of $ 2,188 per ounce. The ounces required to be delivered over this time period are less than the historical volume of scrap gold normally produced, and the Company expects to have the required gold ounces to meet the commitments as they come due. 20 Table of Contents Note 10 - Segment Information The Company organizes its operations into three reportable segments as follows: • U.S. pawn • Latin America pawn • Retail POS payment solutions (AFF) Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, loss (gain) on foreign exchange, merger and acquisition expenses, and other expenses (income), net, are presented on a consolidated basis and are not allocated between the U.S. pawn segment, Latin America pawn segment or retail POS payment solutions segment. Intersegment transactions relate to the Company offering AFF’s LTO payment solution in its U.S. pawn stores and are eliminated to arrive at consolidated totals. The following tables present reportable segment information for the three and nine month periods ended September 30, 2024 and 2023 as well as segment earning assets (in thousands): Three Months Ended September 30, 2024 U.S. Pawn Latin America Pawn Retail POS Payment Solutions Corporate/ Eliminations Consolidated Revenue: Retail merchandise sales $ 235,037 $ 129,081 $ — $ ( 977 ) (1) $ 363,141 Pawn loan fees 128,393 58,168 — — 186,561 Leased merchandise income — — 188,560 — 188,560 Interest and fees on finance receivables — — 61,198 — 61,198 Wholesale scrap jewelry sales 26,685 11,176 — — 37,861 Total revenue 390,115 198,425 249,758 ( 977 ) 837,321 Cost of revenue: Cost of retail merchandise sold 134,966 83,729 — ( 517 ) (1) 218,178 Depreciation of leased merchandise — — 105,308 ( 380 ) (1) 104,928 Provision for lease losses — — 39,268 ( 97 ) (1) 39,171 Provision for loan losses — — 40,557 — 40,557 Cost of wholesale scrap jewelry sold 21,393 8,487 — — 29,880 Total cost of revenue 156,359 92,216 185,133 ( 994 ) 432,714 Net revenue 233,756 106,209 64,625 17 404,607 Expenses and other income: Operating expenses 128,104 63,062 33,760 — 224,926 Administrative expenses — — — 40,930 40,930 Depreciation and amortization 7,365 4,676 679 13,213 25,933 Interest expense — — — 27,424 27,424 Interest income — — — ( 403 ) ( 403 ) Loss on foreign exchange — — — 882 882 Merger and acquisition expenses — — — 225 225 Other expenses (income), net — — — ( 490 ) ( 490 ) Total expenses and other income 135,469 67,738 34,439 81,781 319,427 Income (loss) before income taxes $ 98,287 $ 38,471 $ 30,186 $ ( 81,764 ) $ 85,180 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores. 21 Table of Contents Nine Months Ended September 30, 2024 U.S. Pawn Latin America Pawn Retail POS Payment Solutions Corporate/ Eliminations Consolidated Revenue: Retail merchandise sales $ 702,120 $ 394,375 $ — $ ( 3,070 ) (1) $ 1,093,425 Pawn loan fees 371,699 175,443 — — 547,142 Leased merchandise income — — 588,801 — 588,801 Interest and fees on finance receivables — — 175,384 — 175,384 Wholesale scrap jewelry sales 70,722 29,229 — — 99,951 Total revenue 1,144,541 599,047 764,185 ( 3,070 ) 2,504,703 Cost of revenue: Cost of retail merchandise sold 407,329 254,188 — ( 1,663 ) (1) 659,854 Depreciation of leased merchandise — — 336,649 ( 1,280 ) (1) 335,369 Provision for lease losses — — 130,272 ( 438 ) (1) 129,834 Provision for loan losses — — 102,091 — 102,091 Cost of wholesale scrap jewelry sold 57,928 23,783 — — 81,711 Total cost of revenue 465,257 277,971 569,012 ( 3,381 ) 1,308,859 Net revenue 679,284 321,076 195,173 311 1,195,844 Expenses and other income: Operating expenses 372,191 198,389 103,851 — 674,431 Administrative expenses — — — 129,563 129,563 Depreciation and amortization 21,609 15,199 2,078 39,621 78,507 Interest expense — — — 78,029 78,029 Interest income — — — ( 1,407 ) ( 1,407 ) Loss on foreign exchange — — — 2,133 2,133 Merger and acquisition expenses — — — 2,186 2,186 Other expenses (income), net — — — ( 841 ) ( 841 ) Total expenses and other income 393,800 213,588 105,929 249,284 962,601 Income (loss) before income taxes $ 285,484 $ 107,488 $ 89,244 $ ( 248,973 ) $ 233,243 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores. As of September 30, 2024 U.S. Pawn Latin America Pawn Retail POS Payment Solutions Corporate/ Eliminations Consolidated Earning assets: Pawn loans $ 380,962 $ 136,915 $ — $ — $ 517,877 Finance receivables, net — — 123,751 — 123,751 Inventories 238,668 95,726 — — 334,394 Leased merchandise, net — — 137,973 ( 204 ) (1) 137,769 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores. 22 Table of Contents Three Months Ended September 30, 2023 U.S. Pawn Latin America Pawn Retail POS Payment Solutions Corporate/ Eliminations Consolidated Revenue: Retail merchandise sales $ 203,769 $ 132,784 $ — $ ( 1,472 ) (1) $ 335,081 Pawn loan fees 114,022 60,538 — — 174,560 Leased merchandise income — — 189,382 — 189,382 Interest and fees on finance receivables — — 61,413 — 61,413 Wholesale scrap jewelry sales 17,140 8,725 — — 25,865 Total revenue 334,931 202,047 250,795 ( 1,472 ) 786,301 Cost of revenue: Cost of retail merchandise sold 115,670 84,816 — ( 767 ) (1) 199,719 Depreciation of leased merchandise — — 104,198 ( 500 ) (1) 103,698 Provision for lease losses — — 39,640 96 (1) 39,736 Provision for loan losses — — 33,096 — 33,096 Cost of wholesale scrap jewelry sold 14,297 7,108 — — 21,405 Total cost of revenue 129,967 91,924 176,934 ( 1,171 ) 397,654 Net revenue (loss) 204,964 110,123 73,861 ( 301 ) 388,647 Expenses and other income: Operating expenses 113,976 63,907 33,641 — 211,524 Administrative expenses — — — 45,056 45,056 Depreciation and amortization 6,586 5,236 771 14,772 27,365 Interest expense — — — 24,689 24,689 Interest income — — — ( 328 ) ( 328 ) Gain on foreign exchange — — — ( 286 ) ( 286 ) Merger and acquisition expenses — — — 3,387 3,387 Other expenses (income), net — — — ( 384 ) ( 384 ) Total expenses and other income 120,562 69,143 34,412 86,906 311,023 Income (loss) before income taxes $ 84,402 $ 40,980 $ 39,449 $ ( 87,207 ) $ 77,624 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores. 23 Table of Contents Nine Months Ended September 30, 2023 U.S. Pawn Latin America Pawn Retail POS Payment Solutions Corporate/ Eliminations Consolidated Revenue: Retail merchandise sales $ 610,493 $ 378,302 $ — $ ( 4,935 ) (1) $ 983,860 Pawn loan fees 315,679 164,619 — — 480,298 Leased merchandise income — — 562,625 — 562,625 Interest and fees on finance receivables — — 174,247 — 174,247 Wholesale scrap jewelry sales 61,108 37,524 — — 98,632 Total revenue 987,280 580,445 736,872 ( 4,935 ) 2,299,662 Cost of revenue: Cost of retail merchandise sold 349,138 244,439 — ( 2,586 ) (1) 590,991 Depreciation of leased merchandise — — 309,432 ( 1,608 ) (1) 307,824 Provision for lease losses — — 141,854 ( 180 ) (1) 141,674 Provision for loan losses — — 90,571 — 90,571 Cost of wholesale scrap jewelry sold 49,604 29,408 — — 79,012 Total cost of revenue 398,742 273,847 541,857 ( 4,374 ) 1,210,072 Net revenue (loss) 588,538 306,598 195,015 ( 561 ) 1,089,590 Expenses and other income: Operating expenses 331,916 179,170 104,280 — 615,366 Administrative expenses — — — 124,428 124,428 Depreciation and amortization 18,786 15,884 2,258 44,598 81,526 Interest expense — — — 66,657 66,657 Interest income — — — ( 1,253 ) ( 1,253 ) Gain on foreign exchange — — — ( 1,905 ) ( 1,905 ) Merger and acquisition expenses — — — 3,670 3,670 Other expenses (income), net — — — ( 260 ) ( 260 ) Total expenses and other income 350,702 195,054 106,538 235,935 888,229 Income (loss) before income taxes $ 237,836 $ 111,544 $ 88,477 $ ( 236,496 ) $ 201,361 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores. As of September 30, 2023 U.S. Pawn Latin America Pawn Retail POS Payment Solutions Corporate/ Eliminations Consolidated Earning assets: Pawn loans $ 341,123 $ 142,662 $ — $ — $ 483,785 Finance receivables, net — — 113,307 — 113,307 Inventories 217,406 96,976 — — 314,382 Leased merchandise, net — — 144,826 ( 1,657 ) (1) 143,169 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores. 24 Table of Contents