What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-02-09 compared with 2025-02-03 · 287 added, 299 removed, 310 unchanged (65% of the section changed)

1 unchanged sentence

The Company’s primary business line is the operation of retail pawn stores, also known as “pawnshops,” which focus on serving cash- and credit-constrained consumers.

The Company is the leading operator of pawn stores in the U.S.

and Latin America.

The Company is the leading operator of pawn stores in the U.S., Latin America and the U.K.

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.

The Company is also a leading provider of technology-driven, retail POS payment solutions focused on serving credit-constrained consumers.

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 in the U.S.

and Puerto Rico.

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.

The Company is also a leading provider of customer payment solutions at the POS for retailers of consumer goods and services, which it conducts solely through AFF.

The Company’s customer payment solutions business line focuses on LTO products and facilitating other retail financing payment options across a large network of traditional and e-commerce merchant partners in the U.S.

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.

The Company’s two business lines are organized into three reportable segments.

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

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

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;

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 AFF in the U.S.

and Puerto Rico.

Financial information regarding the Company’s revenue and long-lived assets by geographic area is provided in Note 17 of Notes to Consolidated Financial Statements.

16 unchanged sentences

The Company depreciates leased merchandise over the life of the lease and assumes no salvage value.

Depreciation is accelerated upon an early buyout.

Depreciation is

accelerated upon an early buyout.

All of the Company’s leased merchandise represents on-lease merchandise and all leases are operating leases.

13 unchanged sentences

Finance receivables and revenue recognition — The Company purchases and services retail finance receivables, the term of which typically range from six to 24 months, directly from its merchant partners or from its bank partner.

The Company has a partnership with a Utah state-chartered bank that requires the Company to purchase the rights to the cash flows associated with finance receivables marketed to retail consumers on the bank’s behalf.

The Company has a partnership with a Utah state-chartered bank that requires the Company to purchase the rights to the cash flows associated with certain finance receivables marketed to retail consumers on the bank’s behalf.

The bank establishes the underwriting criteria for the finance receivables originated by the bank.

11 unchanged sentences

The Company may also consider other qualitative factors to address recent and forecasted business trends in estimating the allowance, as necessary, including, but not limited to, loss trends, delinquency levels, economic conditions, underwriting and collection practices.

The allowance for loan losses is maintained at a level considered appropriate to cover expected lifetime losses on the finance receivable portfolio, and the appropriateness of the allowance is evaluated at each period end.

The allowance for loan

losses is maintained at a level considered appropriate to cover expected lifetime losses on the finance receivable portfolio, and the appropriateness of the allowance is evaluated at each period end.

The Company charges off finance receivables when a receivable is 90 days or more contractually past due.

If an account is deemed to be uncollectible prior to this date, the Company will charge off the finance receivable at the point in time it is deemed uncollectible.

Off-balance sheet installment loans — During the third quarter of 2025, the Company began assisting certain customers in applying for an OBS Loan that is underwritten and fully retained by a bank partner.

After origination of the OBS Loan by the bank, the Company assumes responsibility for servicing the loan on behalf of the bank for the remaining term of the loan.

The Company 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.

The Company receives certain servicing and other fees associated with performing OBS Loans from the bank, which are included in interest and fees on finance receivables in the accompanying consolidated statements of income.

However, if an OBS Loan becomes 90 days contractually past due, the Company is obligated to reimburse the bank for the outstanding principal amount plus accrued interest.

This obligation constitutes an off-balance sheet credit exposure for which the Company is required to recognize, upon inception of the obligation, a liability for the expected lifetime losses, which is included in accrued liabilities in the accompanying consolidated balance sheets.

The Company calculates the liability for expected lifetime losses based on historical loss information and incorporates observable and forecasted economic conditions over a reasonable and supportable forecast period covering the full contractual life of the off-balance sheet credit exposure.

Incorporating observable and forecasted economic conditions could have a material impact on the measurement of the liability to the extent that forecasted economic conditions change significantly.

The Company may also consider other qualitative factors to address recent and forecasted business trends in estimating the liability, as necessary, including, but not limited to, loss trends, delinquency levels, economic conditions, underwriting and collection practices.

The liability for off-balance sheet credit exposure is maintained at a level considered appropriate to cover expected lifetime losses of the off-balance sheet credit exposure, and the appropriateness of the liability is evaluated at each period end.

Business combinations — Business combination accounting requires the Company to determine the fair value of all assets acquired, including identifiable intangible assets, liabilities assumed and contingent consideration issued in a business combination.

6 unchanged sentences

The Company’s reporting units, which are tested for impairment, are U.S.

pawn, Latin America pawn and retail POS payment solutions.

pawn, Latin America pawn, U.K.

pawn and retail POS payment solutions.

The Company may assess goodwill for impairment at a reporting unit level by first assessing a range of qualitative factors, including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s products and services, regulatory and political developments, entity specific factors, such as strategy and changes in key personnel, and overall financial performance.

9 unchanged sentences

As Reported (GAAP) Adjusted (Non-GAAP)

2024 2023 2024 2023

Increase / Increase /

2025 2024 (Decrease) 2025 2024 (Decrease)

Revenue $ 3,661,043 $ 3,388,514 8 % $ 3,661,043 $ 3,388,514 8 %

4 unchanged sentences

See “Non-GAAP Financial Information—Adjusted Net Income and Adjusted Diluted Earnings Per Share and —Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA” below.

The following charts present net income, adjusted net income, diluted earnings per share, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, revenue and adjusted revenue for the years ended December 31, 2024, 2023 and 2022 (in millions, except per share amounts):

The following charts present net income, adjusted net income, diluted earnings per share, adjusted diluted earnings per share, EBITDA, adjusted EBITDA and revenue for the years ended December 31, 2025, 2024 and 2023 (in millions, except per share amounts):

* Non-GAAP financial measures.

See “Non-GAAP Financial Information” for additional discussion of non-GAAP financial measures.

The following charts present total assets and earning assets as of December 31, 2025, 2024 and 2023 (in millions):

The following charts present share repurchases, dividends paid, operating cash flow and adjusted free cash flow for the years ended December 31, 2025, 2024 and 2023 (in millions):

* Non-GAAP financial measures.

See “Non-GAAP Financial Information” for additional discussion of non-GAAP financial measures.

Operating Results for the Twelve Months Ended December 31, 2025 Compared to the Twelve Months Ended December 31, 2024

4 unchanged sentences

Also included are stores that were relocated during the applicable period within a specified distance and are serving the same market, where there is not a significant change in store size, and where there is not a significant overlap or gap in timing between the opening of the new store and the closing of the existing store.

The following table presents segment pre-tax operating income and other operating metrics of the U.S.

pawn segment for the year ended December 31, 2024 compared to the year ended December 31, 2023 (dollars in thousands).

Operating expenses include salary and benefit expense of pawn store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the pawn stores.

2024 2023 Increase

The following tables present segment information for the year ended December 31, 2025 as compared to the year ended December 31, 2024 (in thousands).

Operating expenses include salary and benefit expenses of pawn store-level employees and certain of AFF’s operations-focused departments, occupancy costs, bank and other payment processing charges, data analytics and decisioning costs, information technology costs, advertising costs, security, insurance, utilities, supplies, other costs incurred by the pawn stores and other operational costs incurred by AFF.

Administrative expenses and amortization expense of acquired intangible assets are not included in the segment pre-tax operating income.

Year Ended December 31, 2025

Solutions Corporate/

Intersegment Eliminations Consolidated

Retail merchandise sales $ 1,046,258 $ 584,129 $ 40,767 $ — $ (2,744) (2)

$ 969,371 $ 854,190 13 %

Pawn loan fees 555,035 254,061 44,640 — — 853,736

Leased merchandise income — — — 559,028 — 559,028

Interest and fees on finance receivables — — — 311,189 — 311,189

Wholesale scrap jewelry sales 152,089 51,334 59,167 — — 262,590

Other revenue — — 6,090 — — 6,090

Total revenue 1,753,382 889,524 150,664 870,217 (2,744) 3,661,043

1 unchanged sentence

Cost of retail merchandise sold 601,943 378,538 29,125 — (1,458) (2)

Depreciation of leased merchandise — — — 320,106 (985) (2)

Provision for lease losses — — — 120,701 (339) (2)

Provision for loan losses — — — 162,706 — 162,706

Cost of wholesale scrap jewelry sold 129,926 43,725 35,034 — — 208,685

Other cost of revenue — — 1,414 — — 1,414

Total cost of revenue 731,869 422,263 65,573 603,513 (2,782) 1,820,436

Net revenue 1,021,513 467,261 85,091 266,704 38 1,840,607

Expenses and other income:

Operating expenses 536,552 272,060 30,329 94,788 — 933,729

Administrative expenses — — — — 232,844 232,844

Depreciation and amortization 32,393 17,755 2,276 2,790 56,592 111,806

Interest expense — — — — 121,293 121,293

Interest income — — — — (2,935) (2,935)

Gain on foreign exchange

— — — — (2,178) (2,178)

Merger and acquisition expenses — — — — 14,369 14,369

Other income, net

— — — — (15,884) (15,884)

Total expenses and other income 568,945 289,815 32,605 97,578 404,101 1,393,044

Income (loss) before income taxes $ 452,568 $ 177,446 $ 52,486 $ 169,126 $ (404,063) $ 447,563

(1) Reflects the operations of H&T for the period August 14, 2025 to December 31, 2025 as a result of the completion of the H&T Acquisition on August 14, 2025.

(2) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S.

Year Ended December 31, 2024

Solutions Corporate/

Intersegment Eliminations Consolidated

Retail merchandise sales $ 969,371 $ 541,787 $ — $ — $ (4,062) (1)

Pawn loan fees 505,262 231,864 — — — 737,126

Leased merchandise income — — — 766,241 — 766,241

Interest and fees on finance receivables — — — 245,891 — 245,891

Wholesale scrap jewelry sales 93,923 38,237 — — — 132,160

Total revenue 1,568,556 811,888 — 1,012,132 (4,062) 3,388,514

Cost of revenue:

Cost of retail merchandise sold 560,970 350,906 — — (2,191) (1)

Depreciation of leased merchandise — — — 434,915 (1,609) (1)

Provision for lease losses — — — 163,937 (542) (1)

Provision for loan losses — — — 143,827 — 143,827

Cost of wholesale scrap jewelry sold 77,683 31,086 — — — 108,769

1 unchanged sentence

Net revenue 929,903 429,896 — 269,453 280 1,629,532

Segment expenses:

Expenses and other income:

Operating expenses 503,630 259,307 — 138,041 — 900,978

Administrative expenses — — — — 177,978 177,978

Depreciation and amortization 28,980 20,369 — 2,783 52,809 104,941

Total segment expenses 532,610 477,128 12 %

Segment pre-tax operating income $ 397,293 $ 336,306 18 %

Operating metrics:

Retail merchandise sales margin 42 % 43 %

Net revenue margin 59 % 59 %

Segment pre-tax operating margin 25 % 25 %

(1) Includes $4.1 million and $6.5 million of retail merchandise sales from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S.

pawn stores that are eliminated upon consolidation.

Excluding these intersegment sales, consolidated U.S.

retail merchandise sales during 2024 and 2023 totaled $965.3 million and $847.7 million, respectively.

(2) Includes $2.2 million and $3.5 million of cost of retail merchandise sold from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S.

pawn stores that are eliminated upon consolidation.

Excluding these intersegment sales, consolidated U.S.

cost of retail merchandise sold during 2024 and 2023 totaled $558.8 million and $487.1 million, respectively.

The following table details earning assets, which consist of pawn loans and inventories as well as other earning asset metrics of the U.S.

pawn segment, as of December 31, 2024 as compared to December 31, 2023 (dollars in thousands, except as otherwise noted):

Interest expense — — — — 105,226 105,226

Interest income — — — — (1,935) (1,935)

Loss on foreign exchange

— — — — 2,641 2,641

Merger and acquisition expenses — — — — 2,228 2,228

Other income, net

— — — — (5,301) (5,301)

Total expenses and other income 532,610 279,676 — 140,824 333,646 1,286,756

Income (loss) before income taxes $ 397,293 $ 150,220 $ — $ 128,629 $ (333,366) $ 342,776

(1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S.

The following tables detail earning assets, which consist of pawn loans and inventories as well as other earning asset metrics of the pawn segments, as of December 31, 2025 as compared to December 31, 2024 (dollars in thousands, except as otherwise noted):

As of December 31, 2025

2024 2023 Increase

Latin America

Earning assets:

4 unchanged sentences

Composition of pawn collateral:

General merchandise 28 % 30 %

Jewelry 73 % 48 % 98 % 75 %

Composition of inventories:

General merchandise 27 % 52 % 2 % 25 %

100 % 100 % 100 % 100 %

Composition of inventories:

Jewelry 62 % 43 % 99 % 62 %

Percentage of inventory aged greater than one year 1 % 1 %

Inventory turnover (trailing twelve months cost of merchandise sales divided by average inventories) 2.8 times 2.8 times

General merchandise 38 % 57 % 1 % 38 %

100 % 100 % 100 % 100 %

Percentage of inventory aged greater than one year 1.8 % 1.4 % 13.3 % 3.4 %

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 2.8 times 4.0 times 2.5 times 3.1 times

Store count 1,207 1,837 286 3,330

Average store count 1,197 1,831 119 3,147

As of December 31, 2024

Latin America

Earning assets:

Pawn loans $ 396,667 $ 121,200 $ — $ 517,867

Inventories 245,492 89,088 — 334,580

$ 642,159 $ 210,288 $ — $ 852,447

Average outstanding pawn loan amount (in ones) $ 283 $ 87 $ — $ 185

Composition of pawn collateral:

Jewelry 72 % 42 % — % 65 %

General merchandise 28 % 58 % — % 35 %

100 % 100 % — % 100 %

Composition of inventories:

Jewelry 59 % 35 % — % 52 %

General merchandise 41 % 65 % — % 48 %

100 % 100 % — % 100 %

Percentage of inventory aged greater than one year 1.5 % 1.4 % — % 1.4 %

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 2.8 times 4.2 times — 3.2 times

Store count 1,200 1,826 — 3,026

Average store count 1,195 1,821 — 3,016

Retail Merchandise Sales Operations

1 unchanged sentence

Same-store retail sales increased 6% during 2025 compared to 2024.

The increase in total retail sales was primarily due to incremental sales contributions from acquired stores and an increase in same-store sales.

During 2024, the gross profit margin on retail merchandise sales in the U.S.

was 42% compared to a margin of 43% during 2023, reflecting continued demand for value-priced, pre-owned merchandise and low levels of aged inventory.

The increase in total and same-store retail sales was primarily due to continued strong demand for value priced merchandise and increased inventory levels during 2025 compared to 2024.

The gross profit margin on retail merchandise sales in the U.S.

was 42% during both 2025 and 2024.

inventories increased 17% to $286.1 million at December 31, 2025 compared to $245.5 million at December 31, 2024.

The increase was primarily due to incremental inventories from acquired stores and an increase in same-store inventories as a result of the higher pawn loan balances noted below.

The increase was primarily due to increases in pawn loan receivable balances creating more forfeited inventory.

Inventories aged greater than one year in the U.S.

were 1% at both December 31, 2024 and 2023.

were 1.8% at December 31, 2025 compared to 1.5% at December 31, 2024.

Pawn Lending Operations

pawn loan receivables as of December 31, 2025 increased 14% in total and 12% on a same-store basis compared to December 31, 2024.

The Company believes the increase in same-store pawn receivables was primarily due to continued inflationary pressures driving additional demand for pawn loans and higher gold prices, which increased customers’ jewelry collateral value.

The Company believes the increase in same-store pawn receivables was primarily due to continued strong customer demand from a combination of more customer transactions and larger loan amounts requested by the Company’s customers.

pawn loan fees increased 10% to $555.0 million during 2025 compared to $505.3 million for 2024.

Same-store pawn loan fees increased 9% during 2025 compared to 2024.

The increase in total and same-store pawn loan fees was primarily due to store growth and increased same-store pawn receivables.

The increase in total and same-store pawn loan fees was primarily due to higher pawn loan balances.

Segment Expenses

store operating expenses increased 7% to $536.6 million during 2025 compared to $503.6 million during 2024 while same-store operating expenses increased 6% compared with the prior year.

The increase in operating expenses was primarily due to an increase in the average store count.

The increase in operating expenses was primarily due to increased labor and variable compensation expenses.

Segment Pre-Tax Operating Income

segment pre-tax operating income for 2025 was $452.6 million, which generated a pre-tax segment operating margin of 26% compared to $397.3 million and 25% in the prior year, respectively.

The increase in the segment pre-tax operating income reflected increased net revenue from both acquired and existing stores, partially offset by an increase in segment expenses.

The increase in the segment pre-tax operating income and margin reflected increased net revenue, partially offset by an increase in segment expenses.

Latin America Pawn Segment

Latin America pawn segment pre-tax operating income for 2025 compared to 2024 was impacted by a 5% unfavorable change in the average value of the Mexican peso compared to the U.S.

The translated value of Latin American earning assets as of December 31, 2024 compared to December 31, 2023 was also impacted by a 20% unfavorable change in the end-of-period Mexican peso compared to the U.S.

The translated value of Latin American earning assets as of December 31, 2025 compared to December 31, 2024 benefited from a 11% favorable change in the end-of-period Mexican peso compared to the U.S.

Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates.

See the “Constant Currency Results” section in “Non-GAAP Financial Information” below for additional discussion of constant currency operating results.

The following table presents segment pre-tax operating income and other operating metrics of the Latin America pawn segment for the year ended December 31, 2024 as compared to the year ended December 31, 2023 (dollars in thousands).

Constant Currency Basis

Year Ended December 31, Increase /

December 31, Increase / 2024 (Decrease)

2024 2023 (Decrease) (Non-GAAP) (Non-GAAP)

Latin America Pawn Segment

Retail merchandise sales $ 541,787 $ 533,612 2 % $ 556,686 4 %

Pawn loan fees 231,864 222,774 4 % 238,305 7 %

Wholesale scrap jewelry sales 38,237 46,917 (19) % 38,237 (19) %

Total revenue 811,888 803,303 1 % 833,228 4 %

Cost of revenue:

Cost of retail merchandise sold 350,906 345,309 2 % 360,452 4 %

Cost of wholesale scrap jewelry sold 31,086 37,276 (17) % 31,977 (14) %

Total cost of revenue 381,992 382,585 — % 392,429 3 %

Net revenue 429,896 420,718 2 % 440,799 5 %

Segment expenses:

Operating expenses 259,307 243,146 7 % 266,102 9 %

Depreciation and amortization 20,369 21,350 (5) % 20,855 (2) %

Total segment expenses 279,676 264,496 6 % 286,957 8 %

Segment pre-tax operating income

$ 150,220 $ 156,222 (4) % $ 153,842 (2) %

Operating metrics:

Retail merchandise sales margin 35 % 35 % 35 %

Net revenue margin 53 % 52 % 53 %

Segment pre-tax operating margin 19 % 19 % 18 %

The following table details earning assets, which consist of pawn loans and inventories as well as other earning asset metrics of the Latin America pawn segment, as of December 31, 2024 as compared to December 31, 2023 (dollars in thousands, except as otherwise noted):

Constant Currency Basis

As of December 31, 2024 Increase

2024 2023 (Decrease) (Non-GAAP) (Non-GAAP)

Latin America Pawn Segment

Earning assets:

Pawn loans $ 121,200 $ 127,694 (5) % $ 143,805 13 %

Inventories 89,088 90,246 (1) % 105,686 17 %

$ 210,288 $ 217,940 (4) % $ 249,491 14 %

Average outstanding pawn loan amount (in ones) $ 87 $ 95 (8) % $ 103 8 %

Composition of pawn collateral:

General merchandise 58 % 63 %

Jewelry 42 % 37 %

Composition of inventories:

General merchandise 65 % 67 %

Jewelry 35 % 33 %

Percentage of inventory aged greater than one year 1 % 1 %

Inventory turnover (trailing twelve months cost of merchandise sales divided by average inventories) 4.2 times 4.4 times

1,826 1,814 1 %

Average store count

1,821 1,791 2 %

Retail Merchandise Sales Operations

1 unchanged sentence

Same-store retail sales increased 7% (12% on a constant currency basis) during 2025 compared to 2024.

The increase in total and same-store retail sales was primarily due to increased inventory levels throughout 2024 and greater demand for value-priced, pre-owned merchandise.

The increase in total and same-store retail sales was primarily due to strong demand for value priced merchandise and increased inventory levels during 2025 compared to 2024.

The gross profit margin on retail merchandise sales was 35% during both 2025 and 2024.

Latin America inventories decreased 1% (17% increase on a constant currency basis) to $89.1 million at December 31, 2024 compared to $90.2 million at December 31, 2023.

The increase in constant currency inventories was primarily due to increases in pawn loan receivable balances over the past several quarters creating more forfeited inventory.

Latin America inventories increased 45% (29% increase on a constant currency basis) to $129.3 million at December 31, 2025 compared to $89.1 million at December 31, 2024.

The increase in constant currency inventories was primarily due to increases in pawn loan receivable balances over the past several quarters creating more forfeited inventory and a slightly increased mix of higher value jewelry inventory.

Inventories aged greater than one year in Latin America were 1.4% at both December 31, 2025 and 2024.

Pawn Lending Operations

Latin America pawn loan receivables decreased 5% (13% increase on a constant currency basis) as of December 31, 2024 compared to December 31, 2023.

On a same-store basis, pawn loan receivables decreased 6% (12% increase on a constant currency basis) as of December 31, 2024 compared to December 31, 2023.

Latin America pawn loan receivables increased 38% (23% increase on a constant currency basis) as of December 31, 2025 compared to December 31, 2024.

On a same-store basis, pawn loan receivables also increased 38% (23% increase on a constant currency basis) as of December 31, 2025 compared to December 31, 2024.

The increase in constant currency total and same-store pawn receivables is primarily due to increasing demand for pawn loans and larger loan sizes, driven in part by higher gold prices and a slightly increased mix of higher value jewelry loans.

Latin America pawn loan fees increased 10% (15% on a constant currency basis) to $254.1 million during 2025 compared to $231.9 million for 2024.

Same-store pawn loan fees also increased 4% (7% on a constant currency basis) during 2024 compared to 2023.

The constant currency increase in total and same-store pawn loan fees was primarily due to increased average pawn receivable balances outstanding during 2024.

Same-store pawn loan fees increased 9% (14% on a constant currency basis) during 2025 compared to 2024.

The constant currency increase in total and same-store pawn loan fees was primarily due to increased constant currency pawn receivables.

Segment Expenses

Operating expenses increased 5% (10% on a constant currency basis) to $272.1 million during 2025 compared to $259.3 million during 2024.

Same-store operating expenses increased 6% (9% on a constant currency basis) compared to the prior year.

The increase in total and same-store operating expenses was primarily driven by increased store counts, accelerated store opening activity, general inflationary impacts and continued increases in the federally mandated minimum wage and increased costs associated with required employee benefit programs.

Same-store operating expenses also increased 5% (10% on a constant currency basis) compared to the prior year.

The constant currency increase in total and same-store operating expenses was primarily driven by general inflationary impacts and continued increases in the federally mandated minimum wage.

Segment Pre-Tax Operating Income

The segment pre-tax operating income for 2025 was $177.4 million, which generated a pre-tax segment operating margin of 20% compared to $150.2 million and 19% in the prior year, respectively.

The decrease in the segment pre-tax operating income reflected an increase in segment expenses, partially offset by the increase in net revenue.

Retail POS Payment Solutions Segment

Retail POS Payment Solutions Operating Results

The following table presents segment pre-tax operating income of the retail POS payment solutions segment for the year ended December 31, 2024 as compared to the year ended December 31, 2023 (dollars in thousands).

Operating expenses include salary and benefit expenses of certain operations-focused departments, merchant partner incentives, bank and other payment processing charges, credit reporting costs, information technology costs, advertising costs and other operational costs incurred by AFF.

Administrative expenses and amortization expense of intangible assets related to the purchase of AFF are not included in the segment pre-tax operating income.

2024 2023 (Decrease)

The increase in the segment pre-tax operating income and margin reflected the increase in net revenue, partially offset by an increase in operating expenses.

The segment contribution reflects the results of operations of H&T for the period August 14, 2025 to December 31, 2025 as a result of the completion of the H&T Acquisition on August 14, 2025.

See Note 3 of Notes to Consolidated Financial Statements for additional information about the H&T Acquisition.

pawn segment contributed $150.7 million in revenue and $52.5 million in pre-tax segment operating income for 2025.

The resulting pre-tax segment operating margin was 35%.

pawn loan receivables were $213.5 million and inventories were $71.9 million as of December 31, 2025.

Retail POS Payment Solutions Segment

Leased merchandise income $ 766,241 $ 752,682 2 %

Interest and fees on finance receivables 245,891 233,818 5 %

Total revenue 1,012,132 986,500 3 %

Cost of revenue:

Depreciation of leased merchandise (1)

434,915 413,546 5 %

Provision for lease losses (2)

163,937 177,418 (8) %

Provision for loan losses 143,827 123,030 17 %

Total cost of revenue 742,679 713,994 4 %

Net revenue 269,453 272,506 (1) %

Segment expenses:

Operating expenses 138,041 137,460 — %

Depreciation and amortization 2,783 3,030 (8) %

Total segment expenses 140,824 140,490 — %

Segment pre-tax operating income $ 128,629 $ 132,016 (3) %

(1) Includes $1.6 million and $2.1 million of depreciation of leased merchandise from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S.

pawn stores that are eliminated upon consolidation.

Excluding these intersegment transactions, consolidated depreciation of leased merchandise during 2024 and 2023 totaled $433.3 million and $411.5 million, respectively.

(2) Includes $0.5 million and $1.6 million of provision for lease losses from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S.

pawn stores that are eliminated upon consolidation.

Excluding these intersegment transactions, consolidated provision for lease losses during 2024 and 2023 totaled $163.4 million and $175.9 million, respectively.

The following table provides a detail of gross transaction volumes originated during the year ended December 31, 2024 as compared to the year ended December 31, 2023 (dollars in thousands):

December 31, Increase /

2024 2023 (Decrease)

The following table details retail POS payment solutions gross transaction volumes originated during the year ended December 31, 2025 as compared to the year ended December 31, 2024 (dollars in thousands):

Year Ended December 31,

Leased merchandise $ 435,750 $ 568,635

Finance receivables (1)

586,115 510,231

Total gross transaction volume $ 1,021,865 $ 1,078,866

(1) For the year ended December 31, 2025 includes $32.6 million of OBS Loans the Company began offering during the third quarter of 2025.

The following table details retail POS payment solutions earning assets as of December 31, 2025 as compared to December 31, 2024 (dollars in thousands):

As of December 31, Increase /

2024 2023 (Decrease)

As of December 31,

Leased merchandise, net:

7 unchanged sentences

Finance receivables, net $ 150,274 $ 147,501

(1) Includes $0.2 million and $0.5 million of intersegment transactions as of December 31, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S.

(1) Includes $0.2 million of intersegment transactions as of both December 31, 2025 and 2024, respectively, related to the Company offering AFF’s LTO payment solution in its U.S.

pawn stores that are eliminated upon consolidation.

Excluding these intersegment transactions, consolidated net leased merchandise as of December 31, 2024 and 2023 totaled $128.4 million and $171.2 million, respectively.

The following table details the changes in the allowance for lease and loan losses and other portfolio metrics during the year ended December 31, 2025 as compared to the year ended December 31, 2024 (dollars in thousands):

2024 2023 (Decrease)

Allowance for lease losses:

Balance at beginning of period $ 95,752 $ 79,576 20 %

Provision for lease losses (1)

163,937 177,418 (8) %

Charge-offs (186,123) (167,952) 11 %

Recoveries 7,095 6,710 6 %

Balance at end of period $ 80,661 $ 95,752 (16) %

Year ended December 31,

Leased merchandise portfolio metrics:

Provision rate (1)

27.7 % 28.8 %

Average monthly net charge-off rate (2)

1 unchanged sentence

23.5 % 24.4 %

Allowance for loan losses:

Balance at beginning of period $ 96,454 $ 84,833 14 %

Provision for loan losses 143,827 123,030 17 %

Charge-offs (130,812) (117,961) 11 %

Recoveries 7,536 6,552 15 %

Balance at end of period $ 117,005 $ 96,454 21 %

Finance receivables portfolio metrics:

Provision rate (1)

27.8 % 28.2 %

Average monthly net charge-off rate (2)

1 unchanged sentence

21.2 % 20.0 %

(1) Includes $0.5 million and $1.6 million of provision for lease losses from intersegment transactions during 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S.

pawn stores that are eliminated upon consolidation.

Excluding these intersegment transactions, consolidated provision for lease losses during 2024 and 2023 totaled $163.4 million and $175.9 million, respectively.

(1) Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.

3 unchanged sentences

Leased merchandise, before allowance for lease losses, decreased 14% as of December 31, 2025 compared to December 31, 2024.

The decrease was primarily due to decreased gross transaction volumes originated due to weakness in furniture originations and the bankruptcy filings in 2024 for two of AFF’s larger retail furniture merchant partners.

The allowance for lease losses decreased 16% to $80.7 million as of December 31, 2024 compared to $95.8 million as of December 31, 2023, which was primarily due to the decrease in leased merchandise, partially offset by slightly higher lease loss provisioning rates used during 2024 as compared to 2023.

The decrease was primarily due to decreased gross transaction volumes originated resulting from the bankruptcy filings in late 2024 for two of AFF’s larger retail furniture merchant partners, A-Freight and Conn’s.

The allowance for lease losses decreased 20% to $64.9 million as of December 31, 2025 compared to $80.7 million as of December 31, 2024, which was primarily due to the decrease in leased merchandise and lower lease loss provisioning rates used during 2025 as compared to 2024.

As a percentage of lease merchandise, the allowance was 36% at December 31, 2025 and 39% at December 31, 2024.

Leased merchandise income increased 2% to $766.2 million during 2024 compared to $752.7 million during 2023, which was primarily due to slightly higher average rental rates, partially offset by slightly lower average leased merchandise balances outstanding during 2024 compared to 2023.

Depreciation of leased merchandise increased 5% to $434.9 million during 2024 compared to $413.5 million during 2023.

As a percentage of leased merchandise income, depreciation of leased merchandise increased to 57% during 2024 compared to 55% during 2023, primarily as a result of a slight increase in customers taking advantage of early buyout or other early payment options.

Leased merchandise income decreased 27% to $559.0 million during 2025 compared to $766.2 million during 2024, which was primarily due to lower average leased merchandise balances outstanding during 2025 compared to 2024.

Depreciation of leased merchandise decreased 26% to $320.1 million during 2025 compared to $434.9 million during 2024, primarily due to the decrease in leased merchandise balances outstanding.

As a percentage of leased merchandise income, depreciation of leased merchandise was 57% during both 2025 and 2024.

Provision for lease losses decreased 26% to $120.7 million during 2025 compared to $163.9 million during 2024, which was primarily due to the 23% decrease in gross transaction volumes.

As a percentage of gross transaction volume, the provision for lease losses increased to 29% during 2024 compared to 28% during 2023.

Retail Finance Operations

Finance receivables, before allowance for loan losses, increased 26% as of December 31, 2024 compared to December 31, 2023.

The increase was primarily due to increased gross transaction volumes in certain non-furniture industry verticals.

The allowance for loan losses increased 21% to $117.0 million as of December 31, 2024 compared to $96.5 million as of December 31, 2023, which was primarily due to the increase in finance receivables, partially offset by slightly lower loan loss provisioning rates used during 2024 as compared to 2023.

As a percentage of gross transaction volume, the provision for lease losses decreased to 27.7% during 2025 compared to 28.8% during 2024.

Retail Finance and Lending Operations

Finance receivables, before allowance for loan losses, decreased 3% as of December 31, 2025 compared to December 31, 2024.

The decrease was primarily due to decreased gross transaction volumes in the later part of 2025 compared to the later part of 2024, in part as a result of shifting a portion of transaction volume to OBS Loans beginning in the third quarter of 2025.

The allowance for loan losses decreased 9% to $106.3 million as of December 31, 2025 compared to $117.0 million as of December 31, 2024, which was primarily due to the decrease in finance receivables and lower loan loss provisioning rates used during 2025 as compared to 2024.

As a percentage of finance receivables, the allowance was 41% at December 31, 2025 compared to 44% at December 31, 2024.

Interest and fees on finance receivables increased 27% to $311.2 million during 2025 compared to $245.9 million during 2024.

The increase was primarily due to the higher year-over-year finance receivable balances, partially offset by a slight decline in portfolio yield primarily as a result of AFF expanding its offerings and merchant relationships in certain services sector verticals during 2024, some of which are provided at lower interest rates.

Provision for loan losses increased 17% to $143.8 million during 2024 compared to $123.0 million during 2023, which was primarily due to the 26% increase in gross transaction volumes, partially offset by a slight decrease in the net provisioning rates used during 2024 based on lower than expected loss rates on older vintages.

The increase was primarily due to the higher average finance receivable balances outstanding during 2025 compared to 2024, partially offset by a slight decline in portfolio yield primarily as a result of AFF expanding its offerings and merchant relationships in certain services sector verticals, some of which are provided at lower interest rates.

Provision for loan losses increased 13% to $162.7 million during 2025 compared to $143.8 million during 2024, which was primarily due to the 15% increase in gross transaction volumes.

As a percentage of gross transaction volume, the provision for loan losses decreased to 27.8% during 2025 compared to 28.2% during 2024.

Segment Expenses

Operating expenses were flat at $138.0 million during 2024 compared to $137.5 million during 2023.

As a percentage of segment revenues, operating expenses were 14% during both 2024 and 2023.

Segment Pre-Tax Operating Income

The retail POS payment solutions segment pre-tax operating income during 2024 was $128.6 million compared to $132.0 million during 2023.

The decrease was primarily the result of the slight decrease in net revenue.

Consolidated Results of Operations

The following table reconciles pre-tax operating income of the Company’s U.S.

pawn segment, Latin America pawn segment and retail POS payment solutions segment, discussed above, to consolidated net income for the year ended December 31, 2024 as compared to the year ended December 31, 2023 (dollars in thousands):

Year Ended December 31, Increase /

2024 2023 (Decrease)

Consolidated Results of Operations

Operating expenses decreased 31% to $94.8 million during 2025 compared to $138.0 million during 2024.

The decrease was primarily due to the elimination of certain expenses associated with supporting the A-Freight and Conn’s relationships along with continued realization of operating synergies, primarily in technology and development infrastructure, coupled with other cost reduction initiatives.

As a percentage of segment revenues, operating expenses decreased to 11% during 2025 from 14% during 2024.

Segment Pre-Tax Operating Income

pawn $ 397,293 $ 336,306 18 %

Latin America pawn 150,220 156,222 (4) %

Retail POS payment solutions

128,629 132,016 (3) %

Intersegment eliminations (1)

280 581 (52) %

Consolidated segment pre-tax operating income 676,422 625,125 8 %

Corporate expenses and other income:

Administrative expenses 173,199 176,315 (2) %

Depreciation and amortization 52,809 59,196 (11) %

Interest expense 105,226 93,243 13 %

Interest income (1,935) (1,469) 32 %

Loss (gain) on foreign exchange

2,641 (1,529) (273) %

Merger and acquisition expenses 2,228 7,922 (72) %

Other expenses (income), net (522) (1,402) (63) %

Total corporate expenses and other income 333,646 332,276 — %

Income before income taxes 342,776 292,849 17 %

Provision for income taxes 83,961 73,548 14 %

Net income $ 258,815 $ 219,301 18 %

(1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution in its U.S.

For further detail, see Note 17 of Notes to Consolidated Financial Statements.

The retail POS payment solutions segment pre-tax operating income during 2025 was $169.1 million, which generated a pre-tax segment operating margin of 19% compared to $128.6 million and 13% in the prior year, respectively.

The increase in the segment pre-tax operating income and margin was primarily the result of the decrease in operating expenses, partially offset by a decrease in segment net revenue.

Corporate Expenses and Taxes

Administrative expenses decreased 2% to $173.2 million during 2024 compared to $176.3 million during 2023.

As a percentage of revenue, administrative expenses decreased to 5% during 2024 compared to 6% during 2023.

Depreciation and amortization decreased 11% to $52.8 million during 2024 compared to $59.2 million during 2023, primarily due to a scheduled $6.9 million decrease in amortization of acquired AFF intangible assets.

Interest expense increased 13% to $105.2 million during 2024 compared to $93.2 million for 2023, primarily due to higher average total long-term debt balances outstanding.

Administrative expenses increased 31% to $232.8 million during 2025 compared to $178.0 million during 2024, primarily due to the CFPB litigation settlement in 2025, the incremental administrative expenses of H&T since the acquisition date, increased variable compensation expense and general inflationary impacts, partially offset by a 5% change in the average value of the Mexican peso resulting in lower U.S.

dollar translated administrative expenses in Latin America.

As a percentage of revenue, administrative expenses increased to 6% during 2025 compared to 5% during 2024.

Depreciation and amortization increased 7% to $56.6 million during 2025 compared to $52.8 million during 2024, primarily due to the addition of depreciation and amortization expenses of H&T during 2025.

Interest expense increased 15% to $121.3 million during 2025 compared to $105.2 million for 2024, primarily due to increased outstanding long-term debt balances associated with 2025 acquisition activity.

See Note 11 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”

Merger and acquisition expenses decreased 72% to $2.2 million during 2024 compared to $7.9 million during 2023, reflecting a decreased level of acquisition activity in 2024 compared to 2023.

Merger and acquisition expenses increased 545% to $14.4 million during 2025 compared to $2.2 million during 2024.

The increase was due primarily to expenses associated with the H&T Acquisition.

Consolidated effective income tax rates for 2025 and 2024 were 26.2% and 24.5%, respectively.

The decrease in the effective tax rate was primarily due to an increase in U.S.-sourced income as a result of the U.S.

store acquisition activity since the beginning of 2023, which is taxed at a lower rate than the Latin American countries in which the Company operates.

The increase in the effective tax rate was primarily due to certain non-deductible expenses incurred in 2025 related to the settlement of the CFPB lawsuit and certain acquisition costs associated with the H&T Acquisition.

See Note 12 of Notes to Consolidated Financial Statements.

2 unchanged sentences

The Company’s primary capital requirements include:

• The expansion of pawn operations through growth of pawn receivables and inventories in existing stores, new store openings, strategic acquisitions of pawn stores and purchases of underlying real estate at existing locations;

• The expansion of retail POS payment solutions operations through growth of the business generated from new and existing merchant partners;

• The return of capital to shareholders through dividends and stock repurchases.

• Expansion of pawn operations through growth of pawn receivables and inventories in existing stores, new store openings, strategic acquisitions and purchases of underlying real estate at new and existing locations;

• Growth of earning assets in the retail POS payment solutions operations through transaction volumes generated from new and existing merchant partners;

• Return of capital to shareholders through dividends and stock repurchases.

Other material capital requirements include operating expenses (see Note 4 of Notes to Consolidated Financial Statements regarding operating lease commitments), maintenance capital expenditures related to its facilities, technology platforms, general corporate operating activities, income tax payments and debt service, among others.

The Company believes that net cash provided by operating activities and available and unused funds under its revolving unsecured credit facilities will be adequate to meet its liquidity and capital needs for these items over the next 12 months and also in the longer term beyond the next 12 months.

The Company believes that net cash provided by operating activities and available and unused funds under its revolving credit facilities will be adequate to meet its liquidity and capital needs for these items over the next 12 months and also in the longer term beyond the next 12 months.

Expand Pawn Operations

The Company intends to continue expansion of its pawn operations through growth of pawn receivables and inventories in existing stores along with new store openings and acquisitions.

During 2024, the Company acquired 28 pawn stores in the U.S., acquired 10 pawn stores in Mexico and acquired one pawn license that was used to open a new pawn store in the state of Nevada for a cumulative purchase price of $107.6 million, net of cash acquired and subject to future post-closing adjustments.

On August 14, 2025, the Company completed its previously announced acquisition of H&T, the leading pawn operator in the United Kingdom with 286 store locations.

Under the terms of the H&T Acquisition, H&T shareholders received 650 pence per share in cash.

The total equity value for the H&T Acquisition, including cash consideration for the shares, was £289.1 million ($392.4 million USD using the August 13, 2025 closing GBP/USD exchange rate of 1.36).

H&T had outstanding indebtedness of £79.6 million as of August 14, 2025 ($108.0 million USD using the August 13, 2025 closing GBP/USD exchange rate of 1.36), which the Company assumed upon closing.

The Company also incurred additional costs, expenses and fees for professional services, financing and other transaction and integration costs in connection with the H&T Acquisition and expects to continue to incur additional integration costs during 2026.

The substantial majority of these costs will be non-recurring expenses relating to the H&T Acquisition.

The Company financed the H&T Acquisition and other costs with available funds under the Credit Facility.

During 2025, the Company also acquired 23 pawn stores in the U.S.

for a cumulative purchase price of $106.3 million, net of cash acquired and subject to future post-closing adjustments.

The Company evaluates potential acquisitions based upon growth potential, purchase price, available liquidity, strategic fit and quality of management personnel, among other factors.

During 2024, the Company also opened 60 new locations in Latin America and one location in the U.S.

The combined investment in leasehold improvements and other fixed assets for these new locations totaled $19.3 million.

For 2025, the Company expects to continue adding store locations through new (“de novo”) store openings and acquisitions.

During 2025, the Company also opened 32 new locations in Latin America, two new stores in the U.S.

and one new store in the U.K.

For 2026, the Company expects to continue adding store locations through new store openings and acquisitions.

Future store openings and acquisitions are subject to the Company’s ability to identify acquisition opportunities and new location sites in markets with attractive demographics and favorable regulatory environments.

The Company currently has no other contractual commitments for materially significant future acquisitions, business combinations or capital commitments.

Although viewed by management as a discretionary expenditure not required to operate its pawn stores, the Company may continue to strategically purchase real estate from its landlords at existing stores or in conjunction with pawn store acquisitions as opportunities arise at reasonable valuations.

The Company purchased the real estate at 58 store locations, primarily from landlords at existing stores, for a cumulative purchase price of $86.1 million during 2024.

During 2025, the Company purchased the real estate at 43 store locations, primarily from landlords at existing stores, for a cumulative purchase price of $61.9 million.

As of December 31, 2025, the Company owned the real estate at a total of 443 pawn locations, primarily in the U.S., along with its corporate headquarters building in Fort Worth, Texas.

Expand Retail POS Payment Solutions Operations

3 unchanged sentences

Return of Capital to Shareholders

In January 2025, the Company’s Board declared a $0.38 per share first quarter cash dividend on common shares outstanding, or an aggregate of $17.0 million based on the December 31, 2024 share count, to be paid on February 28, 2025 to stockholders of record as of February 14, 2025.

During 2025, the Company paid quarterly cash dividends to its shareholders totaling $70.9 million.

In January 2026, the Board declared a $0.42 per share first quarter cash dividend on common shares outstanding, or an aggregate of $18.5 million based on the December 31, 2025 share count, to be paid on February 27, 2026 to stockholders of record as of February 18, 2026.

While the Company currently expects to continue the payment of quarterly cash dividends, the amount, declaration and payment of cash dividends in the future (quarterly or otherwise) will be made by the Board, from time to time, subject to the Company’s financial condition, results of operations, business requirements, compliance with legal requirements, debt covenant restrictions and other relevant factors.

During 2024, the Company repurchased a total of 721,000 shares of common stock at an aggregate cost of $85.0 million and an average cost per share of $117.90.

During 2023, the Company repurchased 1,248,000 shares of common stock at an aggregate cost of $114.4 million and an average cost per share of $91.58.

The aggregate cost and average cost per share do not include the effect of the 1% excise tax on certain share repurchases enacted under the inflation Reduction Act of 2022.

In July 2023, the Board authorized a common stock repurchase program for up to $200.0 million of the Company’s outstanding common stock.

During 2025, the Company repurchased a total of 912,000 shares of common stock at an aggregate cost of $115.0 million and an average cost per share of $126.03, which completed the share repurchase program authorized in July 2023.

The Company incurred $1.2 million and $0.9 million of excise taxes during 2025 and 2024, respectively.

In July 2023, the Board authorized a common stock repurchase program for up to $200.0 million of the Company’s outstanding common stock, of which $115.0 million is currently remaining.

In October 2025, the Board authorized an additional common stock repurchase program for up to $150.0 million of the Company’s outstanding common stock, of which the entire $150.0 million is currently remaining.

The Company intends to continue repurchases under its active share repurchase program, including through open market transactions under trading plans in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act subject to a variety of factors, including, but not limited to, the level of cash balances, liquidity needs, credit availability, debt covenant restrictions, general business and economic conditions, regulatory requirements, the market price of the Company’s stock, the Company’s dividend policy and the availability of alternative investment opportunities.

1 unchanged sentence

The Company regularly evaluates opportunities to optimize its capital structure, including through consideration of the issuance of debt or equity, to refinance existing debt and to enter into interest rate hedge transactions, such as interest rate swap agreements.

As of December 31, 2024, the Company’s primary sources of liquidity were $175.1 million in cash and cash equivalents and $528.9 million of available and unused funds under the Company's revolving unsecured credit facilities, subject to certain financial covenants (see Note 11 of Notes to Consolidated Financial Statements).

As of December 31, 2025, the Company’s primary sources of liquidity were $125.2 million in cash and cash equivalents, $171.9 million of available and unused funds under the Company's revolving unsecured credit facilities and $6.1 million of available and unused funds under the Company’s revolving secured credit facility, subject to certain financial covenants (see Note 11 of Notes to Consolidated Financial Statements).

The Company had working capital of $1,448.7 million as of December 31, 2025.

The Company’s cash and cash equivalents as of December 31, 2025 included $43.8 million held by its foreign subsidiaries.

These cash balances, which are primarily held in Mexican pesos, are associated with foreign earnings the Company has asserted are indefinitely reinvested and which the Company primarily plans to use to support its continued growth plans outside the U.S.

These cash balances, which are primarily held in Mexican pesos and British pounds sterling, are associated with foreign earnings the Company has asserted are indefinitely reinvested and which the Company plans to use to support its continued growth plans outside the U.S.

through funding of capital expenditures, acquisitions, operating expenses or other similar cash needs of the Company’s foreign operations.

The Company’s liquidity is affected by a number of factors, including changes in general customer traffic and demand, pawn loan balances, loan-to-value ratios, collection of pawn fees, merchandise sales, inventory levels, LTO merchandise, finance receivable balances, collection of lease and finance receivable payments, seasonality, operating expenses, administrative expenses, expenses related to merger and acquisition activities, litigation-related expenses, tax rates, gold prices, foreign currency exchange rates and the pace of new pawn store expansion and acquisitions.

The Company’s liquidity is affected by a number of factors, including changes in general customer traffic and demand, pawn loan balances, collection of pawn fees, merchandise sales, inventory levels, LTO merchandise, finance receivable balances, collection of lease and finance receivable payments, seasonality, operating expenses, administrative expenses, expenses related to merger and acquisition activities, litigation-related expenses, tax rates, gold prices, foreign currency exchange rates and the pace of new pawn store expansion and acquisitions.

Additionally, a prolonged reduction in earnings and EBITDA could limit the Company’s future ability to fully borrow on its credit facilities under current leverage covenants.

1 unchanged sentence

Business—Governmental Regulation.”

If needed, the Company could seek to raise additional funds from a variety of sources, including, but not limited to, repatriation of excess cash held in Latin America, the sale of assets, reductions in operating expenses, capital expenditures and dividends, the forbearance or deferral of operating expenses, the issuance of debt or equity utilizing other structured financing arrangements, the leveraging of currently unencumbered real estate owned by the Company and/or changes to its management

of current assets.

If needed, the Company could seek to raise additional funds from a variety of sources, including, but not limited to, the sale of assets, reductions in operating expenses, capital expenditures and dividends, the forbearance or deferral of certain operating expenses, the issuance of debt or equity securities, utilizing other structured financing arrangements, the leveraging of currently unencumbered real estate owned by the Company and/or changes to its management of current assets.

The characteristics of the Company’s current assets, specifically the ability to rapidly liquidate gold jewelry inventory, which accounts for 62% of total inventory, give the Company flexibility to quickly increase cash flow if necessary.

7 unchanged sentences

(828,045) (441,591) (462,332)

Cash flow (used in) provided by financing activities

Cash flow provided by (used in) financing activities

176,408 (38,193) 51,313

6 unchanged sentences

Cash Flow Used in Investing Activities

Net cash used in investing activities decreased $20.7 million, or 4%, from $462.3 million during 2023 to $441.6 million during 2024.

Net cash used in investing activities increased $386.5 million, or 88%, from $441.6 million during 2024 to $828.0 million during 2025.

Cash flows from investing activities are utilized primarily to fund acquisitions, purchases of furniture, fixtures, equipment and improvements, which includes capital expenditures for improvements to existing pawn stores and for new pawn store openings and other corporate assets, and discretionary purchases of store real property.

2 unchanged sentences

The Company paid $475.1 million in cash related to pawn store acquisitions during 2025 compared to $76.0 million during 2024.

The Company funded a net increase in pawn loans of $72.0 million during 2024 and $35.0 million during 2023.

The Company funded a net

increase in pawn loans of $137.9 million during 2025 and $72.0 million during 2024.

The Company funded a net increase in finance receivables of $98.3 million during 2025 and $139.3 million during 2024.

Cash Flow Used in Financing Activities

Net cash provided by financing activities decreased $89.5 million, or 174%, from net cash provided by financing activities of $51.3 million during 2023 to net cash used in financing activities of $38.2 million during 2024.

Net payments on the credit facilities were $370.0 million during 2024 compared to net borrowings of $230.3 million during 2023.

Cash Flow Provided by Financing Activities

Net cash used in financing activities decreased $214.6 million, or 562%, from net cash used in financing activities of $38.2 million during 2024 to net cash provided by financing activities of $176.4 million during 2025.

Net borrowings on credit facilities were $368.9 million during 2025 compared to net payments of $370.0 million during 2024.

During 2024, the Company received $500.0 million in proceeds from the private offering of senior unsecured notes which was used to repay a portion of the outstanding balance on the Credit Facility, after payment of fees and expenses related to the offering.

The Company paid debt issuance costs of $10.4 million during 2024 compared to $0.3 million during 2023.

The Company funded $85.0 million for share repurchases and paid dividends of $65.8 million during 2024, compared to funding $114.4 million of share repurchases and dividends paid of $61.9 million during 2023.

In addition, the Company paid withholding taxes on net share settlements of restricted stock awards during 2024 of $7.0 million compared to $2.5 million during 2023.

The Company paid debt issuance costs of $10.4 million during 2024.

The Company funded $115.8 million for share repurchases during 2025, compared to $85.0 million during 2024.

The Company paid dividends of $70.9 million during 2025 compared to $65.8 million during 2024.

In addition, the Company paid withholding taxes of $5.8 million on net share settlements of restricted stock awards during 2025 compared to $7.0 million during 2024.

Non-GAAP Financial Information

The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted retail POS payment solutions segment metrics and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth.

The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth.

The Company derives these financial calculations on the basis of methodologies other than GAAP, primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance.

5 unchanged sentences

Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets.

The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses.

The Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired intangible assets, the CFPB litigation settlement and certain other income and expenses.

The Company does not consider these items to be related to the organic operations of the Company’s businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the Company.

In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods.

Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

The Company has certain leases in Mexico which are denominated in U.S.

The lease liability of these U.S.-dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses.

The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (1) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (2) to improve comparability of current periods presented with prior periods.

Adjusted Net Income and Adjusted Diluted Earnings Per Share

8 unchanged sentences

Merger and acquisition expenses 12,271 1,706 6,089 0.27 0.04 0.13

Non-cash foreign currency loss (gain) related to lease liability

2,627 (1,778) (930) 0.06 (0.04) (0.02)

AFF purchase accounting and other adjustments 38,289 54,341 82,432 0.85 1.19 1.74

Gain on revaluation of contingent acquisition consideration

Purchase accounting and other adjustments 41,055 38,289 54,341 0.92 0.85 1.19

CFPB litigation settlement 9,390 — — 0.21 — —

Other (income) expense, net

(2,949) 3,870 (2,857) (0.06) 0.08 (0.06)

Other expenses (income), net 1,243 (1,079) (2,103) 0.02 (0.02) (0.04)

Adjusted net income and diluted earnings per share $ 390,142 $ 302,680 $ 276,874 $ 8.76 $ 6.70 $ 6.06

13 unchanged sentences

Merger and acquisition expenses 14,369 2,228 7,922

Non-cash foreign currency loss (gain) related to lease liability

3,755 (2,540) (1,329)

AFF purchase accounting and other adjustments (2)

— 13,968 50,354

Gain on revaluation of contingent acquisition consideration

Purchase accounting and other adjustments (2)

CFPB litigation settlement 11,000 — —

Other (income) expense, net

(4,707) 5,201 (3,942)

Other expenses (income), net 1,446 (1,402) (2,731)

Adjusted EBITDA $ 698,389 $ 558,437 $ 511,732

(1) Includes $49.7 million, $56.6 million and $56.7 million of amortization expense related to identifiable intangible assets as a result of the AFF acquisition for 2024, 2023 and 2022, respectively.

(2) The following table details AFF purchase accounting and other adjustments (in thousands):

Year Ended December 31,

2024 2023 2022

Pre-tax Pre-tax Pre-tax

Amortization of fair value adjustment on acquired finance receivables $ — $ — $ 42,657

Amortization of fair value adjustment on acquired leased merchandise — — 7,697

Other non-recurring costs included in administrative expenses related to a discontinued finance product

Total AFF purchase accounting and other adjustments

$ — $ 13,968 $ 50,354

(1) Includes $53.5 million, $49.7 million and $56.6 million of amortization expense related to identifiable intangible assets for 2025, 2024 and 2023, respectively.

(2) For 2023, amount represents other non-recurring costs included in administrative expenses related to a discontinued finance product.

Free Cash Flow and Adjusted Free Cash Flow

4 unchanged sentences

These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity.

However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other

income statement data prepared in accordance with GAAP.

However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP.

The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (unaudited, in thousands):

3 unchanged sentences

Cash flow from investing activities:

Pawn loans, net (1)

Pawn loans made

(2,094,228) (1,720,158) (1,572,010)

Finance receivables, net (139,314) (115,442) (85,353)

Pawn loans repaid

1,197,038 1,003,752 933,092

Recovery of pawn loan principal through sale of forfeited collateral

759,333 644,407 603,940

Investments in finance receivables (440,576) (425,817) (363,789)

Proceeds from finance receivables 342,272 286,503 248,347

Purchases of furniture, fixtures, equipment and improvements (54,906) (68,245) (60,148)

2 unchanged sentences

Adjusted free cash flow $ 307,146 $ 262,106 $ 211,663

(1) Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

Retail POS Payment Solutions Segment Purchase Accounting Adjustments

Management believes the presentation of certain retail POS payment solutions segment metrics, adjusted to exclude the impacts of purchase accounting, provides investors with greater transparency and provides a more complete understanding of AFF’s financial performance and prospects for the future by excluding the impacts of purchase accounting, which management believes is non-operating in nature and not representative of AFF’s core operating performance.

Additionally, the following table provides reconciliations of total revenue and total net revenue, presented in accordance with GAAP, to adjusted total revenue and adjusted net revenue, which excludes the impacts of purchase accounting (in thousands):

Year Ended December 31,

2024 2023 2022

Total revenue, as reported $ 3,388,514 $ 3,151,796 $ 2,728,942

AFF purchase accounting and other adjustments (1)

Adjusted total revenue $ 3,388,514 $ 3,151,796 $ 2,771,599

Total net revenue, as reported $ 1,629,532 $ 1,507,239 $ 1,264,586

AFF purchase accounting and other adjustments (1)

Adjusted total net revenue $ 1,629,532 $ 1,507,239 $ 1,314,940

(1) As a result of purchase accounting, AFF’s as reported amount for 2022 contains significant fair value adjustments.

The adjusted amount for 2022 excludes these fair value purchase accounting adjustments.

Constant Currency Results

1 unchanged sentence

dollar, however, certain performance metrics discussed in this report are presented on a “constant currency” basis, which is considered a non-GAAP financial measure.

The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia.

The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America and the U.K., which are transacted in local currencies in Mexico, Guatemala, Colombia and the U.K.

The Company also has operations in El Salvador, where the reporting and functional currency is the U.S.

The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results.

Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of

evaluating period-over-period comparisons.

See the Latin America pawn segment tables in “Results of Operations” above for additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

The following table provides exchange rates for the Mexican peso, Guatemalan quetzal and Colombian peso for the current and prior-year periods:

The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America and the U.K., consistent with how the Company’s management evaluates such performance and operating results.

The following table presents segment information for the Latin America pawn segment for the year ended December 31, 2025 using the exchange rate from the prior-year comparable periods (unaudited, in thousands):

Year Ended December 31, 2025

Constant Currency

Exchange Rate

Retail merchandise sales $ 584,129 $ 27,664 $ 611,793

Pawn loan fees 254,061 12,057 266,118

Wholesale scrap jewelry sales 51,334 — 51,334

Total revenue 889,524 39,721 929,245

Cost of revenue:

Cost of retail merchandise sold 378,538 17,798 396,336

Cost of wholesale scrap jewelry sold 43,725 2,125 45,850

Total cost of revenue 422,263 19,923 442,186

Net revenue 467,261 19,798 487,059

Segment expenses:

Operating expenses 272,060 12,472 284,532

17,755 782 18,537

Total segment expenses 289,815 13,254 303,069

Segment pre-tax operating income $ 177,446 $ 6,544 $ 183,990

The following table presents earning assets and average outstanding pawn loan amount for the Latin America pawn segment as of December 31, 2025 using the exchange rate from the prior-year comparable period (unaudited, in thousands, except as otherwise noted):

As of December 31, 2025

Constant Currency

Exchange Rate

Earning assets:

Pawn loans $ 167,438 $ (17,990) $ 149,448

Inventories 129,269 (13,933) 115,336

$ 296,707 $ (31,923) $ 264,784

Average outstanding pawn loan amount (in ones) $ 112 $ (12) $ 100

The following table provides exchange rates for the Mexican peso, Guatemalan quetzal, Colombian peso and British pound sterling for the current and prior-year periods:

2025 2024 2023

Rate % Change

1 unchanged sentence

(Unfavorable) Rate

Mexican peso / U.S.

dollar exchange rate:

dollar / Mexican peso exchange rate:

End-of-period 18.0 11 % 20.3 (20) % 16.9

Twelve months ended 19.2 (5) % 18.3 (3) % 17.8

Guatemalan quetzal / U.S.

dollar exchange rate:

dollar / Guatemalan quetzal exchange rate:

End-of-period 7.7 — % 7.7 1 % 7.8

Twelve months ended 7.7 1 % 7.8 — % 7.8

Colombian peso / U.S.

dollar / Colombian peso exchange rate:

End-of-period 3,757 15 % 4,409 (15) % 3,822

Twelve months ended 4,053 — % 4,071 6 % 4,328

British pound sterling / U.S.

dollar exchange rate:

1 unchanged sentence

Twelve months ended 1.32 3 % 1.28 3 % 1.24

Off-Balance Sheet Arrangements

During the third quarter of 2025, the Company began assisting certain customers in applying for an OBS Loan that is underwritten and fully retained by a bank partner.

After origination of the OBS Loan by the bank, the Company assumes responsibility for servicing the loan on behalf of the bank for the remaining term of the loan.

The Company 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.

As of December 31, 2025, the outstanding amount of OBS Loans originated and held by the bank was $ 28.1 million.

However, if an OBS Loan becomes 90 days contractually past due, the Company is obligated to reimburse the bank for the outstanding principal amount plus accrued interest.

This obligation constitutes an off-balance sheet credit exposure for which the Company is required to recognize, upon inception of the obligation, a liability for the expected lifetime losses.

As of December 31, 2025, a liability of $13.8 million was included in accrued liabilities in the accompanying consolidated balance sheets.

For further detail, see the “Off-balance sheet installment loans” section in Note 2 of Notes to Consolidated Financial Statements.

Effects of Inflation

While the impacts of inflation have been widely reported and may be ongoing into the foreseeable future, the Company does not believe inflation had a material effect on the Company’s overall results of operations in 2025.

Depending on the severity and persistence of these inflationary pressures, the Company could see a negative impact on its customers’ ability to pay for its goods and services, including an impact on the collectability of its accounts receivable, which could result in increased charge-offs of AFF’s finance receivables and leased merchandise as well as increases in wages and other operating costs.

The Company could also see increases in wages and other operating costs.

Furthermore, inflation could also weaken sales at AFF’s merchant partners, negatively impacting AFF’s originations.

However, inflationary economic environments could also benefit the Company by increasing customer demand for value-priced products, lending services in its pawn stores and demand for POS payment solutions provided by AFF.

7 unchanged sentences

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 7. Management’s Discussion and Analysis