What changed in this filing

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Item 1. Business

2026-02-09 compared with 2025-02-03 · 203 added, 134 removed, 367 unchanged (48% of the section changed)

FirstCash Holdings, Inc., along with its wholly owned subsidiaries (together, “FirstCash” or the “Company”), is the leading operator of pawn stores in the U.S.

and Latin America and is also a leading provider of technology-driven, retail POS payment solutions focused on serving credit-constrained consumers in the U.S and Puerto Rico.

FirstCash Holdings, Inc., along with its wholly owned subsidiaries (together, “FirstCash” or the “Company”), is the leading operator of pawn stores in the U.S., Latin America and the U.K.

FirstCash’s primary line of business is the operation of retail pawn stores, also known as “pawnshops.” The Company also operates a retail POS payment solutions business.

The Company is organized into three reportable segments that cover these two lines of business.

The Company’s two business lines are organized into four reportable segments:

pawn segment consists of pawn operations in 29 U.S.

states and the District of Columbia, while the Latin America pawn segment consists of pawn operations in Mexico, Guatemala, El Salvador and Colombia.

The retail POS payment solutions segment consists of the operations of American First Finance, LLC (“AFF”), which offers products in all 50 states in the U.S.

plus the District of Columbia and Puerto Rico.

states and the District of Columbia

• The Latin America pawn segment consists of pawn operations in Mexico, Guatemala, El Salvador and Colombia

pawn segment consists of pawn operations in England, Scotland and Wales

• The retail POS payment solutions segment consists of the operations of American First Finance, LLC (“AFF”), which offers products in the U.S.

The Company completed the acquisition of H&T, the leading pawn operator in the United Kingdom with 286 store locations, on August 14, 2025, the date which the balance sheet and operating results of H&T were included in the Company’s consolidated financial results.

For further detail, see Note 3 of Notes to Consolidated Financial Statements.

As of December 31, 2025, the Company operated over 3,300 pawnshops across its network.

Pawn stores help customers meet small, short-term cash needs by providing non-recourse pawn loans and buying merchandise directly from customers.

Personal property, such as jewelry, electronics, tools, appliances, sporting goods and musical instruments, is pledged and held as collateral for the pawn loans over the typical 30-day term of the loan.

Personal property, such as jewelry, electronics, tools, appliances, sporting goods and musical instruments, is pledged and held as collateral for the pawn loans over the term of the loan.

Pawn stores also generate retail sales primarily from the merchandise acquired through collateral forfeitures and over-the-counter purchases from customers.

Net revenues (gross profit) from pawn operations comprised 83% of consolidated net revenues in 2024.

The Company’s retail POS payment solutions business line consists solely of the operations of AFF.

AFF focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners.

The Company’s retail POS payment solutions business line consists solely of the operations of AFF, which focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners.

AFF’s retail partners provide consumer goods and services to their customers and use AFF’s LTO and retail finance solutions to facilitate payments on such transactions.

As one of the largest omni-channel providers of “no credit required” payment options, AFF’s technology set provides consumers with seamless leasing and financing experiences in-store, online, in-cart and on mobile devices.

The Company’s principal executive offices are located at 1600 West 7th Street, Fort Worth, Texas 76102, and its telephone number is (817) 335-1100.

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stores, which buy, sell and lend on a wide array of merchandise.

Accordingly, competition in Latin America with the Company’s larger format, full-service pawn stores is more limited.

Accordingly, competition in Latin America with the Company’s larger format, full-service pawn stores is more

A large percentage of the population in Mexico and other countries in Latin America is unbanked or under-banked with limited access to traditional consumer credit.

The Company believes there is opportunity for further expansion in Mexico and

other Latin American countries due to the large potential consumer base and limited competition from other large format, full-service pawn store operators.

The Company believes there is opportunity for further expansion in Mexico and other Latin American countries due to the large potential consumer base and limited competition from other large format, full-service pawn store operators.

The Company’s pawn stores in the U.K.

focus primarily on providing loans collateralized by gold jewelry.

Stores are typically smaller in size and are located on the “high streets” in most major towns and cities throughout England, Scotland and Wales.

While H&T is the U.K.’s largest pawnbroker, the U.K.

and European pawn industries remain highly fragmented and the Company believes there is opportunity for further expansion in the U.K.

and other European countries.

Services Offered by the Company’s Pawn Operations

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The Company’s pawn merchandise sales are primarily retail sales to the general public from its pawn store locations.

The items sold generally consist of pre-owned consumer products such as jewelry, electronics, tools, appliances, sporting goods and musical instruments.

The items sold vary by location but generally consist of pre-owned consumer products such as jewelry, electronics, tools, appliances, sporting goods and musical instruments.

The Company also melts certain quantities of scrap jewelry and sells the gold, silver and diamonds in the commodity markets.

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Merchandise acquired by the Company through forfeited pawn loan collateral is carried in inventory at the amount of the related pawn loan, exclusive of any accrued service fees, and purchased inventory is carried at cost.

Retail customers can use cash and debit or credit cards for retail purchases or can purchase merchandise on an interest-free “layaway” plan.

Retail customers can use cash and debit or credit cards for retail purchases or can generally purchase merchandise on an interest-free “layaway” plan.

Should the customer fail to make a required payment pursuant to a layaway plan, the item is returned to inventory and all or a portion of previous payments are typically forfeited to the Company.

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There is no collections process, and the decision to not repay the loan will not affect the customer’s credit score with any credit reporting agency and rarely affects the customer’s ability to obtain a subsequent pawn loan from the Company.

The average amount of a pawn loan at December 31, 2024 was $283 in the U.S.

and $87 in Latin America.

The average amount of a pawn loan at December 31, 2025 was $312 in the U.S., $112 in Latin America and $825 in the U.K.

per transaction.

At the time a pawn loan transaction is entered into, an agreement or pawn contract, commonly referred to as a “pawn ticket,” is presented to the borrower for signature that includes, among other items, the borrower’s name and identification information, a description of the pledged goods, amount financed, pawn service fee, maturity date, total amount that must be paid to redeem the pledged goods on the maturity date and the fee charged expressed as an annual percentage rate.

The term of a pawn loan is typically 30 days plus an additional grace period of 14 to 90 days, depending on geographic markets and local or state regulations.

The term of a pawn loan in the U.S.

and Latin America typically range from 30 to 90 days plus an additional grace period of 14 to 90 days based primarily on local or state regulations in each market.

In the U.K., federal regulations require a six month term and a two month grace period.

Pawn loans may be either paid in full with accrued pawn loan fees and service charges or, where permitted by law, may be renewed or extended by the customer’s payment of accrued pawn loan fees and service charges.

If a pawn loan is not repaid before the expiration of the grace period, the pawn collateral is forfeited to the Company and transferred to inventory at a value equal to the principal amount of the loan, exclusive of accrued service fees.

If a pawn loan is not repaid before the expiration of the grace period, the pawn collateral is forfeited to the Company and transferred

to inventory at a value equal to the principal amount of the loan, exclusive of accrued service fees.

Pledged property is held in a secured, non-public warehouse area of the pawn store for the term of the loan and the grace period, unless the loan is repaid earlier.

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Pawn Business Strategy

The Company’s business strategy is to continue growing pawn revenues and income by opening new (“de novo”) retail pawn locations, acquiring existing pawn stores in strategic markets and increasing revenue and operating profits in existing stores.

The Company’s business strategy is to drive profitable growth by opening new (“de novo”) retail pawn locations, acquiring existing pawn stores in strategic markets and increasing revenue and operating profits in existing stores.

Over the last five years, 783 pawn stores have been opened or acquired, with the net store count growing at a compound annual store growth rate of 4% over this period.

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Year Ended December 31,

2025 2024 2023 2022 2021

pawn segment:

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Total additions 32 70 61 46 60

pawn segment:

New locations opened 1 — — — —

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Total additions 287 — — — —

New locations opened 35 61 66 45 61

Locations acquired 309 38 91 31 46

Total additions 344 99 157 76 107

For additional information on store count activity, see “Pawn Store Locations” below.

New Store Openings

The Company typically opens new stores in under-served markets and neighborhoods.

The Company typically opens new stores in under-served neighborhoods in markets with favorable regulations and customer demographics.

After a suitable location has been identified and a lease and the appropriate licenses are obtained, a new store can typically open for business within six to twelve weeks.

The investment required to open a new location includes store operating cash, inventory, funds for pawn loans, leasehold improvements, store fixtures, security systems, computer equipment and other start-up costs.

Due to the fragmented nature of the pawn industry, the Company believes attractive acquisition opportunities will continue to arise in both the U.S.

and Latin America.

Due to the fragmented nature of the pawn industry, the Company believes attractive acquisition opportunities will continue to arise in the U.S., Latin America and the U.K.

Specific pawn store acquisition criteria include an evaluation of the volume of merchandise sales and pawn transactions, outstanding customer pawn loan balances, historical pawn yields, merchandise sales margins, pawn loan redemption rates, the condition and quantity of inventory on hand, licensing restrictions or requirements, and the location, physical condition, and lease terms of the stores to be acquired.

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The Company’s typical large format pawn store is a freestanding building or part of a retail shopping center with dedicated available parking.

Many of the Company’s acquired stores in Latin America tend to be smaller than its U.S.

stores, especially those located in dense urban markets that may not have dedicated parking.

Many of the Company’s acquired stores in Latin America and all of its stores in the U.K.

tend to be smaller than the U.S.

stores, especially those located in more dense urban markets that may not have dedicated parking.

Management has established a standard store design intended to facilitate operations and provide a positive customer experience.

As of December 31, 2025, the Company operated 3,330 pawn store locations composed of 1,207 stores in 29 U.S.

states and the District of Columbia, 1,725 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.

states and the District of Columbia, 1,732 stores in 32 states in Mexico, 75 stores in Guatemala, 18 stores in El Salvador, 12 stores in Colombia and 286 stores in the U.K.

The following table details store count activity for the year ended December 31, 2025:

Latin America Total

Latin America U.K.

Total locations, beginning of period 1,200 1,826 — 3,026

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Total locations, end of period 1,207 1,837 286 3,330

(1) Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.

(2) Includes 10 pawnshops located in Acapulco, Mexico that were severely damaged by a hurricane in the fall of 2023, which the Company elected to consolidate with other stores in this market.

The Company expects to replace certain of these locations in this market over time as the city’s infrastructure recovers.

(1) Store consolidations, which include certain acquired locations that have been combined with overlapping stores, represent closings for which the Company expects to maintain a significant portion of the customer base in the consolidated location.

The following chart presents the year end pawn store count over the five-year period ended December 31, 2025:

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Number of Locations

Latin America

Latin America U.K.

Texas 490 Mexico:

Florida 86 Estado de.

Mexico (State of Mexico) 213

North Carolina 74 Veracruz 199

56 Puebla 115

Mexico (State of Mexico) 217 Scotland 26

North Carolina 68 Veracruz 194 Wales 7

Ohio 56 Puebla 114 U.K.

49 Nuevo Leon 104

Tennessee 49 Tamaulipas 103

Arizona 47 Nuevo Leon 100

36 Baja California 81

Georgia 46 Jalisco 82

Illinois 39 Baja California 80

Nevada 33 Estado de Ciudad de Mexico (State of Mexico City) 75

29 Chiapas 68

29 Coahuila 62

South Carolina

27 Hidalgo 57

Alabama 24 Guanajuato 53

23 Tabasco 41

22 Chihuahua 40

21 Sinaloa 31

Washington 30 Chiapas 69

Louisiana 29 Coahuila 64

Maryland 28 Hidalgo 58

South Carolina 27 Oaxaca 57

Indiana 23 Guanajuato 52

Kentucky 23 Sonora 42

Alabama 22 Tabasco 40

Colorado 22 Chihuahua 40

Missouri 20 Michoacan 31

Oklahoma 19 Quintana Roo 31

13 Michoacan 30

6 San Luis Potosi 29

District of Columbia 3 Queretaro 22

3 Aguascalientes 19

3 Tlaxcala 19

1 Campeche 18

Nebraska 1 Zacatecas 18

Virginia 13 San Luis Potosi 30

Nebraska 7 Durango 29

Alaska 6 Sinaloa 29

Oregon 5 Morelos 24

Utah 5 Queretaro 23

North Dakota 3 Aguascalientes 19

South Dakota 3 Tlaxcala 19

District of Columbia 2 Yucatan 19

Mississippi 2 Campeche 18

Iowa 1 Zacatecas 18

Wyoming 1 Baja California Sur 14

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These competitive conditions may adversely affect the Company’s pawn revenue and profitability and its ability to expand and execute its pawn business strategy.

The Company believes the primary drivers for competitive success in the pawn industry are store location, customer service, the ability to lend competitive amounts on pawn loans and to sell popular retail merchandise at competitive prices.

In addition, the Company competes with other lenders and retailers to attract and retain employees with competitive compensation programs.

Many of the competitors’ individual retail locations have significantly greater size, financial resources and human capital than the Company.

The Company’s retail business competitors include numerous retail and wholesale merchants, including jewelry stores, rent-to-own operators, discount retail stores, “second-hand” stores, consumer electronics stores, other specialty retailers, online retailers, online auction sites, online marketplace sites and other pawnshops.

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Other non-specialty lenders may, and do, lend money on financial terms more favorable than those offered by the Company.

Management believes the pawn industry remains highly fragmented with an estimated 12,000 to 14,000 total pawnshops in the U.S.

and 7,000 to 8,000 total pawnshops in Mexico.

Management believes the pawn industry remains highly fragmented with an estimated 12,000 to 14,000 total pawnshops in the U.S., 8,000 to 9,000 total pawnshops in Mexico and slightly under 1,000 total pawnshops in the U.K.

Including the Company, there are two publicly-held, U.S.-based pawnshop operators, both of which have pawn operations in the U.S., Mexico, Guatemala and El Salvador.

The Company is the largest public or private operator of large format, full-service pawn stores in the U.S.

The Company is the largest public or private operator of large format, full-service pawn stores in the U.S., Mexico and the U.K.

Retail POS Payment Solutions Operations

AFF facilitates customized LTO and retail finance programs to its merchant partners, allowing those merchant partners to complete sales by providing their customers with a retail POS payment solution.

Customers can apply for AFF’s products online or through their mobile devices and complete the process electronically or in person at one of AFF’s merchant partner locations.

AFF facilitates customized LTO and retail finance programs to its merchant partners, allowing those merchant partners to complete sales by providing their customers with one of its retail POS payment solutions.

Customers can apply for AFF’s payment solutions online or through their mobile devices and complete the process electronically or in person at one of AFF’s merchant partner locations.

AFF primarily serves customers who are credit-constrained who may not qualify for prime or near prime retail payment options.

Net revenues (gross profit) from AFF accounted for 15% of the Company’s consolidated net revenues during 2025.

Products Offered by AFF

Payment Solution Products Offered by AFF

AFF’s merchant partners may provide consumer goods and services to their customers using one of AFF’s retail POS payment products to facilitate payments on such transactions.

AFF’s ability to customize the technology and offer a choice between retail POS payment products provides its merchant partners the ability to identify the most effective solution for its business and customers.

The following is a description of the three retail POS payment products offered by AFF:

AFF’s ability to customize the technology and offer a choice between retail POS payment products provides its merchant partners with the ability to identify the most effective solution for its business and customers.

The following is a description of the retail POS payment products offered by AFF:

• LTO — LTO transactions involve the purchase by AFF of tangible personal property directly from the merchant partner and a subsequent lease of that merchandise by AFF to the customer through a consumer rental purchase agreement under applicable state laws.

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AFF offers the LTO retail POS payment product to merchant partners in 46 U.S.

states, the District of Columbia and Puerto Rico, and such product accounted for 53% of AFF’s gross transaction volumes during 2024.

states and the District of Columbia, and such product accounted for 43% of AFF’s gross transaction volumes during 2025.

• Retail installment sales agreement (“RISA”) — The RISA transaction involves the purchase of either tangible personal property or services from the merchant partner by the customer.

The customer enters into a RISA with the merchant and AFF subsequently purchases the RISA from the merchant partner and services the account through the end of the

contractual term.

The customer enters into a RISA with the merchant and AFF subsequently purchases the RISA from the merchant partner and services the account through the end of the contractual term.

RISA finance receivables typically have a term ranging from six to 24 months, and when utilized for the purchase of tangible personal property, are generally secured by such tangible personal property.

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AFF then assumes responsibility for sub-servicing the loan on behalf of the Bank for the remaining term of the loan.

Bank-originated loans typically have a term ranging from six to 24 months and can be either secured by tangible personal property or unsecured.

Approximately 81% of these loans are related to the purchase of property or services while approximately 19% are loans with cash proceeds issued directly to the customer.

Bank-originated loans typically have a term ranging from six to 24 months, and when utilized for the purchase of tangible personal property, are generally secured by such tangible personal property.

The bank-originated installment loan retail POS payment product is made available to merchant partners in 38 U.S.

states, and such product accounted for 34% of AFF’s gross transaction volumes during 2024.

During the third quarter of 2025, AFF began assisting certain customers in applying for a direct-to-consumer unsecured installment loan that is underwritten and fully retained by the Bank (“OBS Loan”).

After origination of the unsecured loan by the Bank, AFF assumes responsibility for servicing the loan on behalf of the Bank for the remaining term of the loan.

AFF does not purchase the loan or the rights to a portion of the cash flows of the loan from the Bank.

As such, these loans are not reflected on the Company’s balance sheet as a finance receivable.

AFF receives certain servicing and other fees associated with performing loans from the Bank.

However, if a loan becomes 90 days contractually past due, AFF is obligated to reimburse the Bank for the outstanding principal amount plus accrued interest.

These unsecured Bank-originated loans typically have a term ranging from six to 24 months.

Bank-originated installment loan products accounted for 45% of AFF’s gross transaction volumes during 2025.

Decisioning Process

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AFF currently has approximately 16,400 active retail merchant partner locations and e-commerce platforms offering its leasing and financing products.

Those merchant partners offer a wide array of goods and services spanning 26 vertical channels.

Those merchant partners offer a wide array of goods and services spanning approximately 30 vertical channels.

The following table shows the percentage of AFF's gross transaction volumes originated attributable to these vertical channels for the years ended December 31, 2025, 2024 and 2023:

Year Ended December 31,

Furniture 37 % 48 % 52 %

2025 2024 2023

Automotive 25 % 24 % 19 %

23 % 37 % 48 %

Elective Medical 18 % 12 % 7 %

Jewelry 11 % 10 % 8 %

Other 23 % 17 % 18 %

100 % 100 % 100 %

A significant portion of AFF’s gross transaction volumes have historically been concentrated with certain large merchant partners, many of which were also concentrated within the furniture vertical, which has suffered from declining sales, store closures and bankruptcies over the past few years.

While this concentration historically provided AFF with opportunities for growth, it also created a degree of exposure to potential transaction volume loss outside of AFF’s control if these merchant partners experienced declining sales, store closures or bankruptcies (as was the case with two of AFF’s largest merchant partners, Conn’s Appliances, Inc.

and American Freight, Inc.).

In order to combat this risk, AFF has been focused on expanding and diversifying its merchant partner base away from these larger merchant partners, which has resulted in less concentration by large merchant partner and vertical channel as reflected in the table above.

Total 100 % 100 % 100 %

Over the past several years, AFF has been focused on expanding and diversifying its merchant partner base away from these larger merchant partners, which has resulted in less concentration by large merchant partner and vertical channel as reflected in the table above.

For a discussion of the risks associated with the possible loss or reduction of business from one or more of AFF’s large merchant partners and factors that may affect a particular type of merchant or vertical channel that AFF is heavily concentrated in, refer to “Item 1A.

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The Company’s competitors may develop products that are similar to its own technology, such as the Company’s proprietary pawn POS and loan management software, AFF’s proprietary lease, financing and loan management software, AFF’s proprietary decisioning platform and other developed technology.

The Company enters into agreements with its employees, consultants and partners, and through these and other confidentiality or non-compete agreements, the Company attempts to

control access to and distribution of its software, documentation and other proprietary technology and information.

Despite the Company’s efforts to protect its proprietary rights, third parties may, in an authorized or unauthorized manner, attempt to use, copy or otherwise obtain and market or distribute its intellectual property rights or technology or otherwise develop products with the same functionality as its solutions.

The Company enters into agreements with its employees, consultants and partners, and through these and other confidentiality or non-compete agreements, the Company attempts to control access to and distribution of its software, documentation and other proprietary technology and information.

Despite the Company’s efforts to protect its proprietary rights, third parties may, in an authorized or unauthorized manner, attempt to use,

copy or otherwise obtain and market or distribute its intellectual property rights or technology or otherwise develop products with the same functionality as its solutions.

Policing all unauthorized use of the Company’s intellectual property rights is nearly impossible.

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Pawnshops are neighborhood-based stores that contribute to the modern “circular economy” which encourages reduced resource consumption and waste, decreased environmental footprints and emissions, along with economic growth and job creation.

Each of the Company’s 3,026 pawn locations provides consumers a neighborhood-based market to buy and resell pre-owned and popular consumer products in a safe environment, along with access to a quick and convenient source of short-term cash through non-recourse pawn transactions.

Each of the Company’s 3,330 pawn locations provides consumers with a neighborhood-based market to buy and resell pre-owned and popular consumer products in a safe environment, along with access to a quick and convenient source of short-term cash through non-recourse pawn transactions.

In addition, through AFF, the Company provides POS payment solutions through technology-enabled virtual LTO and consumer finance platforms with minimal environmental impact.

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As a large and significant acquirer and reseller of pre-owned items, the Company believes it extends the life of these products and helps reduce demand for newly manufactured and distributed products, thereby reducing carbon emissions and water usage, resulting in a positive impact to the environment.

The Company estimates that it resold approximately 13 million individual used or pre-owned consumer product items in its pawn stores during 2024, with a commercial value of approximately $1.5 billion.

The Company resold approximately 14 million individual used or pre-owned consumer product items in its pawn stores during 2025 having a commercial value of approximately $1.7 billion.

In addition, the Company recycles significant volumes of precious metals and diamonds, whereby unwanted or broken jewelry is collected and melted/processed by the Company and then resold as a commodity for future commercial use.

During 2024, the Company estimates that it recycled over 57,000 ounces of gold and approximately 47,000 carats of diamonds with a combined market value of over $132 million.

This process helps reduce demand for mined precious metals and diamonds, which benefits the environment by reducing carbon emissions, water usage and other harmful environmental impacts of mining.

Unlike most brick-and-mortar or online retailers, the Company does not rely on supply chains or manufacturing of its inventories, as it sources the majority of its inventory from forfeited pawn loan collateral and merchandise purchased directly from customers living or working near the Company’s pawn stores.

Unlike most brick-and-mortar or online retailers, the Company does not rely on supply chains or manufacturing of its retail inventories, as it sources the majority of its inventory from unredeemed pawn loan collateral and merchandise purchased directly from customers living or working near the Company’s pawn stores.

Accordingly, the Company generally does not own, operate or contract for manufacturing, supply chain, warehousing or distribution facilities to support its pawn operations.

Almost all retail sales and pawn loans are made to customers who live or work within a tight geographic radius of the Company’s stores.

The Company does not own, lease or operate any long-haul trucks to support its 3,330 pawn locations and, other than operating small storefront locations which are typically 5,000 square feet or less, the Company’s operations leave a limited carbon footprint compared to manufacturers and retailers selling new merchandise with extensive supply chain and distribution channels.

The Company is working to further reduce energy consumption by retrofitting buildings with LED lighting and reducing corporate travel by utilizing remote meeting technologies.

Additionally, almost all retail sales and pawn loans are made to customers who live or work within a tight geographic radius of the Company’s stores.

The Company is working to further reduce energy consumption by continuing to retrofit its offices and stores with LED lighting and more energy efficient HVAC equipment.

Safe Capital Access Solutions in Underserved Communities

According to multiple studies and surveys, approximately 25% of U.S.

households remain unbanked or under-banked.

In Latin America, the number of unbanked or under-banked consumers can be as much as 75% of the local population.

According to multiple studies and surveys, significant segments of populations in most economies are unbanked or underbanked.

As examples, approximately 25% of U.S.

households remain unbanked or under-banked while in Latin America, the number of unbanked or under-banked consumers can be as much as 75% of the local population.

As a result, the majority of the Company’s customers have limited access to traditional forms of credit or capital.

The Company contributes to its communities by providing these customers with instant access to capital through very small, non-recourse pawn loans or by purchasing merchandise from such customers.

The average credit provided by the Company’s pawn business to a customer is $283 in the U.S.

and $87 in Latin America as of December 31, 2024.

Traditional lenders such as banks, credit unions, credit card providers or other small loan providers do not efficiently or effectively offer micro-credit products of this size.

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Loans are funded immediately by providing customers cash.

Pawn loans include loan terms that are highly transparent and easy to understand.

These fiscally responsible products are regulated, safe and affordable non-recourse loans for which the customer has no legal obligation to repay.

All terms are provided in short, easy-to-read contracts that allow the Company’s customers to make well-informed decisions before obtaining a loan.

Pawn loans differ from most other forms of small-dollar lending as the Company does not engage in post-default collection efforts on delinquent loans, does not take legal actions against its customers for defaulted loans, does not ban its customers for nonpayment, nor does it issue any negative credit information to external credit agencies, but rather relies only on the resale of the pawn collateral for recovery.

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• Introduction of any significant new products, services and business lines are subject to approval by the Board.

The Company has significant operations in Mexico, where the majority of its employees and customers reside.

The Company has significant operations in Mexico and throughout other Latin American countries, where the majority of its employees and customers reside.

Accordingly, the Company has focused significant time and resources on corporate and social responsibility initiatives in supporting disadvantaged people who live and work in this market.

The Company is certified in Mexico as an Empresa Socialmente Responsable (“ESR”), or a socially responsible company under the XII Latin American Meeting of Corporate Social Responsibility Framework.

This ESR certification is granted to companies that meet a series of criteria that generally cover the economic, social and environmental sustainability of its operations, including corporate ethics, good governance, the quality of life of the Company’s employees and a proven commitment to the betterment of the community where it operates, including the care and preservation of the environment.

The Company is certified in Mexico as an Empresa Socialmente Responsable (“ESR”), or a socially responsible company under the XVIII Latin American Meeting of Corporate Social Responsibility Framework.

This ESR certification is granted by the Mexican Center for Philanthropy to companies that meet a series of criteria that generally cover the economic, social and environmental sustainability of its operations, including corporate ethics, good governance, the quality of life of the Company’s employees and a proven commitment to the betterment of the community where it operates, including the care and preservation of the environment.

The Company has also established relationships and supports certain foundations and social programs in Mexico that provide internships, reading initiatives and educational programs for disadvantaged citizens.

For instance, the Company participated in the Government Program of Youth Building the Future in Mexico in 2024 by providing year-long apprenticeships to female participants aspiring to build careers in legal, human resources, and information technology industries.

For instance, the Company has participated in the Government Program of Youth Building the Future in Mexico since 2019 by providing year-long apprenticeships to participants aspiring to build careers in legal, human resources, and information technology industries.

The Mexico Secretary of Labor awarded the Company the Recognition of Social Commitment as a result of the Company’s participation in this program.

In North Texas, where the Company is headquartered, the Company has made meaningful investments in the local community in the form of employee volunteer service hours and matching certain employee-donations to non-profits.

The Communities Foundation of Texas has recognized AFF as a Be In Good Company member for AFF’s community engagement.

In North Texas, where the Company is headquartered, the Company has made meaningful investments in the local community in the form of event sponsorships, employee volunteer service hours and matching certain employee donations to non-profits.

Human Capital Resources

In managing its human capital resources, the Company aims to attract a qualified, professional workforce through an inclusive and accessible job posting and recruiting process.

In order to increase retention of its employees, the Company is focused on providing competitive and attractive wages and benefits (which includes a store-level profit-sharing program for its pawn store employees) and extensive training and advancement opportunities as well as fostering safe, healthy and secure workplace.

The Company believes that it complies with all applicable state, local and international laws governing nondiscrimination in employment in jurisdictions in which it operates.

All applicants and employees are treated with the same high level of respect regardless of their gender, ethnicity, religion, national origin, age, marital status, political affiliation, sexual orientation, gender identity, disability or protected veteran status.

The Company maintains complaint resolution policies and procedures as well as a confidential whistleblower hotline available to all employees and external stakeholders to report (anonymously, if desired) any matter of concern.

The communications hotline is managed by an independent third party, and such communications are routed to appropriate functions such as Human Resources, Legal or Compliance.

A whistleblower hotline review committee, which includes members from Human Resources, Legal and Compliance, review all cases as a group before any case is closed.

Complaint trends and statistics compiled from the Company’s internal complaint resolution procedures and along with all communications made to the whistleblower hotline are reported to the Board quarterly for review and further investigation, if warranted.

Employee Development and Career Opportunities

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• Offering a tuition reimbursement program to U.S.

employees for courses related to current or future roles at the Company and also discounted tuition rates to select universities.

employees for courses related to current or future roles at the Company and also discounted tuition rates to select universities in the U.S.

• Offering eligible U.S.

employees private health and life insurance benefits and a comprehensive suite of well-being offerings, including health coaching sessions, financial coaching sessions with a certified financial planner and counseling/emotional support through the Company’s Employee Assistance program.

• Matching team members’ 401(k) plan contributions for all U.S.

employees after one year of service.

• Offering access to thousands of partner discounts for services and products through the partner portal.

• Providing all employees in Latin America public healthcare and other statutory benefits.

Most management-level employees and tenured store and administrative employees in Mexico are provided private health insurance.

• Matching eligible U.S.

team members’ retirement plan contributions after meeting certain service requirements.

• Offering U.S.

employees access to thousands of partner discounts for services and products through the partner portal.

• All employees in Latin America and the U.K.

have access to public healthcare and are provided with other statutory benefits.

Certain management-level employees and administrative employees in Mexico and the U.K.

are provided private health insurance.

• All eligible employees in Mexico participate in a statutory profit sharing program.

Workplace Profile

As of December 31, 2024, the Company had approximately 20,000 employees across six countries (the U.S., Mexico, Guatemala, El Salvador, Colombia and Jamaica).

As of December 31, 2025, the Company had approximately 22,000 employees across seven countries (the U.S., Mexico, Guatemala, El Salvador, Colombia, Jamaica and the U.K.).

The Company employed approximately 8,300 employees in the U.S.

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None of the Company’s other Latin American employees are covered by collective bargaining agreements.

The Company employed approximately 1,700 employees in the U.K.

as of December 31, 2025, including approximately 400 persons employed in executive, supervisory, administrative and accounting functions.

None of the Company’s U.K.

employees are covered by collective bargaining agreements.

Employee Empowerment

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An orange dot is a designated safe space for women who have been victims of community sexual violence or harassment and that is equipped to provide support to such women and contact emergency authorities.

The Board and the Nominating and Corporate Governance Committee of the Board routinely assess the composition and size of the Board and aim to strike a balance between the knowledge and understanding of the business that comes from longer-term service on the Board and the fresh ideas and perspective that come from adding new members.

As part of this assessment, the Board and the Nominating and Corporate Governance Committee seek a board that includes directors from diverse professional backgrounds with a broad spectrum of experience and expertise and a reputation for integrity.

Governmental Regulation

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The Company’s pawn and retail POS payment solutions businesses are subject to significant regulation by various laws, regulations, ordinances and regulatory pronouncements from federal, state and municipal governmental entities in the U.S.

and Latin America, all of which are constantly evolving and subject to potentially significant changes.

Latin America and the U.K., all of which are constantly evolving and subject to potentially significant changes.

These statutes and regulations prescribe, among other things, the general terms of the Company’s pawn loan agreements, including maximum service fees and/or interest rates that may be charged and collected and mandatory consumer disclosures, as well as maximum interest rates/finance charges or leasing fees (as applicable), consumer disclosures, contractual terms and other matters directly related to the Company’s retail POS payment solutions platform activities.

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In general, the regulatory regimes to which the Company are subject are increasingly focused on consumer finance companies serving credit-constrained customers, and any of these agencies or authorities may propose and adopt new regulations, or interpret existing regulations, in a manner that could result in significant adverse changes in the regulatory landscape for businesses such as the Company’s.

Actions of the current U.S.

presidential administration could result in changes in federal policy with significant impacts on the legal and regulatory framework affecting the industries in which the related consumers are involved.

These changes, including restructuring and widespread personnel changes at the applicable regulatory agencies, may alter the nature and scope of oversight affecting such industries.

The nature, timing and economic and political effects of potential changes affecting such industries generally remains uncertain and it is possible that such uncertainty may adversely affect the Company.

In addition, the United States, China, Canada, Mexico, members of the European Union and other countries have imposed, or have threatened to impose, new or enhanced tariffs, quotas, trade barriers and other restrictions on imports into their respective territories.

Numerous trade restrictions are currently in effect and such restrictions, coupled with the risk of retaliatory steps taken in response to such restrictions, could result in a depression of economic activity in the United States, which in turn could adversely affect consumers and contribute to general market volatility.

As the Company derives significant revenue, earnings and cash flow from operations in Latin America, primarily in Mexico, there are some inherent risks regarding the overall stability of the trading relationship between Mexico and the U.S.

and the burdens imposed thereon by any changes to (or the adoption of new) regulations, tariffs or other federal or state legislation.

Specifically, the Company has significant exposure to fluctuations and devaluations of the Mexican peso and the health of the Mexican economy, which, in each case, may be negatively impacted by changes in U.S.

trade treaties, including the United States-Mexico-Canada Agreement and corporate tax policy.

In some cases, there have been negative reactions to the enacted and/or proposed policies as expressed in the media and by politicians in Mexico, which could potentially negatively impact U.S.

companies operating in Mexico.

In particular, there is continued uncertainty around Mexico’s current federal administration and how the policies as applied by its administration, including conducting aggressive corporate tax and other regulatory audits, adverse government discretion, and support of increased employee minimum wages, profit sharing and benefit programs, may impact U.S.

companies doing business in Mexico generally and pawn and consumer finance companies in particular.

Any such changes in regulations, trade treaties, corporate tax policy, import taxes or adverse court or administrative interpretations of the foregoing could adversely and significantly affect the Mexican economy and ultimately the Mexican peso, which could adversely and significantly affect the Company’s financial position and results of the Company’s Latin America pawn operations.

For a discussion of the risks related to the Company’s regulatory environment, see “Item 1A.

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government and its agencies have significant regulatory authority over the Company’s activities, and its business is subject to a variety of federal laws, including but not limited to the following:

Federal Trade Commission (“FTC”) Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) — The FTC and the CFPB regulate advertising for, the marketing of, and practices related to the origination and servicing of financial products and services.

Federal Trade Commission (“FTC”) Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) — The FTC and the Consumer Financial Protection Bureau (“CFPB”) regulate advertising for, the marketing of, and practices related to the origination and servicing of financial products and services.

The FTC is charged with preventing, investigating and remediating unfair or deceptive acts or practices and false or misleading advertisements, and the CFPB is charged with preventing unfair, deceptive or abusive acts or practices.

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In these proceedings, the CFPB can seek consent orders, confidential memorandums of understanding, cease and desist orders (which can include orders for redisclosure, restitution or rescission of contracts, as well as affirmative or injunctive relief) and monetary penalties.

On November 12, 2021, the Company was named as a defendant in a lawsuit brought by the CFPB alleging violations of the Military Lending Act (“MLA”) as discussed elsewhere herein.

For a discussion of the risks to the Company’s business related to CFPB regulation, see “Item 1A.

Risk Factors—Regulatory, Legislative and Legal Risks and General Economic and Market Risks.”

On October 6, 2017, the CFPB issued its small-dollar loan rule (the “SDL Rule”), which was subsequently revised on July 7, 2020.

Traditional possessory, non-recourse pawn loans are not covered under the SDL Rule.

The SDL Rule defines some of the RISA transactions that AFF purchases and some of the bank loans that AFF sub-services as transactions that are covered under the rule.

On January 31, 2025, President Trump designated Scott Bessent as Acting Director of the CFPB.

Acting Director Bessent promptly ordered agency staff to suspend rulemaking, litigation, enforcement and contracting activities.

On February 7, 2025, President Trump removed Acting Director Bessent and designated Russell Vought as Acting Director of the CFPB.

Shortly after his appointment, Acting Director Vought ordered the remaining activities of the CFPB, including supervision and examination activities, to be suspended.

Thereafter, on February 8, 2025, Acting Director Vought ordered all employees to cease operations unless specifically approved by the agency’s chief legal officer.

On February 11, 2025, President Trump announced the nomination of Jonathan McKernan to be Director of the CFPB.

There is no guaranty the activities of the CFPB, in whole or in part, will remain suspended.

On March 28, 2025, Judge Amy Berman Jackson at the U.S.

District Court in Washington, D.C.

blocked the Trump administration from dismantling the CFPB and ordered that all terminated employees be reinstated.

The CFPB appealed that decision and on August 15, 2025, a three-judge panel of the U.S.

Court of Appeals for the District of Columbia (the “D.C.

Circuit”) vacated the district court’s preliminary injunction.

Oral argument is set for February 24, 2026, when the full D.C.

Circuit will rehear the matter.

Litigation of the matter is expected to continue.

There remains considerable uncertainty as to the future of the CFPB and the policy priorities of the CFPB under Acting Director Vought and any successor Director.

In November 2025, the CFPB announced it would transfer all active litigation and enforcement cases to the U.S.

Department of Justice.

The current U.S.

administration has also indicated its desire to make potentially significant changes to the regulatory enforcement and supervisory agenda of the CFPB.

The CFPB under the Trump administration has indicated that it intends to rescind, repeal or not implement certain rules, regulations and prior CFPB guidance.

There is also considerable uncertainty as to how other federal and state regulators will react to any changes at the CFPB.

Additional or different supervision and enforcement activities by such regulators or additional legislation regarding consumer financial services by state legislatures could adversely affect the Company’s operations.

Certain actions of the Trump administration have been made by executive order.

Many of these orders do not have clear legal authority, which has resulted in numerous legal challenges.

It is unclear what other actions may be taken by the Trump administration in response to such challenges, and what effect those actions may have on economic conditions generally is unknown.

On October 6, 2017, the CFPB issued its small-dollar lending rule (the “SDL Rule”), which was subsequently revised on July 7, 2020.

The SDL Rule imposes certain obligations and limitations associated with the origination and servicing of covered transactions.

Traditional possessory, non-recourse pawn loans are not covered under the SDL Rule but some of the RISA transactions that AFF purchases and some of the bank loans that AFF sub-services are covered under the rule.

After resolution of some challenges to the SDL Rule itself and the constitutionality of the CFPB, on July 3, 2024, trade groups filed a petition for a rehearing with the Fifth Circuit en banc .

The Fifth Circuit did not grant the petition and the SDL Rule is expected to go into effect on March 30, 2025.

The SDL Rule imposes certain obligations and limitations associated with the origination and servicing of covered transactions as of its effective date.

At this time, the Company does not believe that the implementation of the SDL Rule will have a material impact on the Company’s future results of operations or financial condition.

It is possible the incoming U.S.

administration could delay implementation of the SDL Rule.

On May 17, 2024, the Supreme Court rejected a challenge to the constitutionality of the structure used to fund the CFPB.

By a vote of 7-2, the justices reversed a decision by a federal appeals court in Louisiana, which had ruled that the agency’s funding violates the Constitution because it comes from the Federal Reserve rather than through the congressional appropriations process.

As a consequence of the Supreme Court ruling, the CFPB will proceed with the implementation of rulemakings that the agency paused due to the litigation.

The Fifth Circuit did not grant the petition and the SDL Rule went into effect on March 30, 2025.

However, on March 28, 2025, the CFPB announced that enforcement of the SDL Rule will not be a priority and that the agency may seek new rulemaking to narrow its scope.

However, the rule can still be enforced by state attorneys general, and consumers may utilize the rule in private litigation.

Equal Credit Opportunity Act (“ECOA”) — The ECOA and its implementing regulation known as Regulation B, is a consumer protection law stating that individuals applying for loans and other credit products can be evaluated only using factors directly related to their creditworthiness.

The law is intended to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, or other prohibited bases, and to prevent discrimination on the basis of any of those factors in any

aspect of a credit transaction.

The ECOA also imposes certain disclosure obligations with respect to action taken on an application for credit and is applicable to the Company’s RISA and bank loan products.

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The EFTA imposes certain disclosure and practice restriction requirements upon the Company and also grants certain rights to consumers.

MLA — The MLA requires the provision of certain disclosures at certain times and restricts, among other things, the interest rate and other terms that can be offered to active military personnel and their dependents on most types of consumer credit.

Military Lending Act (“MLA”) — The MLA requires the provision of certain disclosures at certain times and restricts, among other things, the interest rate and other terms that can be offered to active military personnel and their dependents on most types of consumer credit.

The MLA caps the interest rate that may be offered to a covered borrower to a 36% military annual percentage rate (“MAPR”), which includes certain fees such a s application fees, participation fees and fees for add-on products.

The MLA also requires certain disclosures and prohibits certain terms, such as mandatory arbitration, if a dispute arises concerning the consumer credit product.

The MLA covers overdraft lines of credit, pawn loans, RISAs, bank installment loans, and certain vehicle-secured and unsecured credit products, and restricts the Company’s ability to offer its products to military personnel and their dependents to the extent any such products have a MAPR greater than 36% .

The MLA covers overdraft lines of credit, pawn loans, RISAs, bank installment loans, and certain vehicle-secured and unsecured credit products.

The Company began offering an MLA compliant pawn lending product for covered members of the U.S.

military and their immediate families and dependents in 2025 but is restricted from offering its other products to military personnel and their dependents to the extent any such products have an MAPR greater than 36% .

Failure to comply with the MLA may limit the Company’s ability to collect principal, interest, and fees from borrowers and may result in civil and criminal liability that could harm its business.

Compliance with the MLA is complex, increases compliance risks and related costs and limits the potential customer base of the Company.

The Company was named as a defendant in a lawsuit brought by the CFPB alleging violations of the MLA as discussed elsewhere herein.

Servicemembers Civil Relief Act (“SCRA”) — The SCRA and similar state laws apply to certain transactions between the Company and servicemembers called to active duty in the United States military as defined within the SCRA, and may include reservists and members of the National Guard.

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The Company only obtains and uses consumer reports subject to the permissible purpose requirements under the FCRA, which also permits the Company to share its experiential information, information obtained from consumer reporting agencies and other customer information with affiliates.

The Company complies with notice and opt-out requirements for prescreen solicitations and for certain information sharing under the FCRA and conducts reasonable investigations of disputes as applicable.

The Company complies with notice and opt-out requirements for prescreen solicitations and for certain information sharing under the FCRA and conducts reasonable investigations of

disputes as applicable.

The Company also has implemented an identity theft prevention program to fulfill the requirements of the Red Flags Regulations and Guidelines issued under the Fair and Accurate Credit Transactions Act (“FACTA”).

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The Company and its bank partner may incur material expenses and encounter material difficulties in complying with the CCPA and related regulations.

Future regulations, further amendments to the CCPA, or authoritative interpretations thereof could increase the cost and complexity of compliance, or could require the Company and the partner Bank to modify their operations and increase their respective operating expenses.

Future regulations, further amendments to the CCPA, or authoritative interpretations thereof could increase the cost and complexity of compliance, or could require the Company and its bank partner to modify their operations and increase their respective operating expenses.

A number of other states have adopted, or are proposing to enact, similar comprehensive data privacy laws.

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Failure to maintain required licenses or act in compliance with applicable law may result in adverse findings, including, among others, potential enforcement, refunds of excess charges, monetary penalties and/or revocation of licenses.

In addition, from time to time, state regulatory agencies and state attorneys general have directed investigations or regulatory initiatives toward the Company’s industry or toward certain companies within the industry.

In addition, from time to time, state regulatory agencies and state attorneys general have directed investigations or regulatory initiatives toward the Company’s industry, including its retail POS payment solutions products, or toward certain companies within the industry.

Mexico Regulations

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Like Mexico, department agencies, including local and state police officials, in Guatemala, El Salvador and Colombia have unlimited and discretionary authority in their application of their rules and requirements.

The Company’s U.K.

pawn business is subject to various regulatory regimes affecting the pawn industry, for example, the consumer credit regime, as well as general business regulations in the areas of tax compliance, customs, consumer protection (like unfair terms, unfair conduct and distance marketing), payment services, anti-money laundering, public safety and employment matters, among others, by various federal, state and local governmental agencies.

Financial Conduct Authority (“FCA”) — The Company is authorized and regulated by the FCA with various consumer credit permissions to carry out the credit aspects of its U.K.

pawn business.

The Company is also registered with the FCA as a “PSD Agent” to carry out payment services in connection with its FCA regulated payment service provider, Western Union Payment Services GB Limited.

The FCA is an independent federal regulatory body, constituted by an Act of U.K.

Parliament, responsible for oversight of conduct matters pertaining to financial services firms which carry out regulated activities by way of business in the U.K.

As an FCA authorized firm, the Company must comply with a wide range of requirements, including authorization obligations, prescribed form and content requirements in its customer facing documents, systems and controls expectations, conduct-of-business rules, financial crime prevention standards and ongoing reporting and disclosure requirements.

Failure to comply with a prescribed form and content requirement could render one of the Company’s regulated credit agreements as unenforceable, without a court order.

The FCA’s Consumer Duty framework was introduced in 2023 and further requires relevant FCA authorized firms to act to deliver good outcomes for consumers, emphasizing higher standards of care, oversight, and accountability.

As part of the Company’s compliance framework, it has implemented policies and procedures designed to meet the requirements of the Consumer Duty.

Failure to comply with the Consumer Duty could result in regulatory enforcement actions, customer-redress obligations, financial penalties, or operational restrictions.

The FCA continues to issue guidance and supervisory expectations related to the Consumer Duty, and future changes in interpretation, enforcement priorities, or regulatory requirements may require additional investment in systems, oversight, and governance.

General Data Protection Regulation (“GDPR”) — The Company’s pawn business in the U.K.

is subject to the Data Protection Act 2018, and related privacy, data protection and electronic communications laws in the U.K.

These laws impose extensive requirements on the collection, use, storage, transfer and other processing of personal data, and grant individuals significant rights with respect to their personal information.

Non-compliance with the GDPR may result in significant regulatory investigations, enforcement actions, and monetary penalties, including fines of up to the greater of £20.0 million or 4% of annual worldwide revenue, as well as potential civil claims by affected individuals.

Additionally, any failure to adequately protect personal data or maintain appropriate compliance measures could lead to reputational harm, operational disruptions, and loss of customer trust.

The Company continues to invest in its privacy and information security programs, including policy enhancements, employee training, vendor oversight, data-mapping efforts and security controls designed to mitigate risks associated with personal data processing.

However, compliance with the GDPR and related laws requires ongoing resources, and the Company may incur additional costs or operational impacts as regulatory requirements or enforcement priorities evolve.

FirstCash Website

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business