Regulatory and licensing changes
Pawn loans and retail finance products are heavily regulated and can be restricted by law.
- Scope
- U.S., Latin America and U.K. operations
- Materiality
- high
FirstCash Holdings, Inc.
FirstCash Holdings operates pawn stores and a retail point-of-sale financing business across the U.S., Latin America and the U.K. Its core model is to provide short-term, non-recourse pawn loans secured by customer collateral and to resell forfeited or purchased merchandise, while AFF offers lease-to-own and other retail financing at merchant partners.
50,3 %
9,0 %
+8,0 %
4.55
3.36
| % | |
|---|---|
| Pawn lending | 55% Non-recourse pawn loans secured by personal property held as collateral. |
| Pawn retail merchandise sales | 25% Sales of forfeited collateral and merchandise bought directly from customers. |
| Retail POS payment solutions | 20% AFF lease-to-own and consumer financing products sold through merchants. |
FirstCash serves cash- and credit-constrained consumers who need small, short-term liquidity and value convenience over...
- Pawn loan customersprimary
Consumers pledge personal property to obtain small, short-term cash loans and use the collateralized structure for convenience and access.
- Pawn retail shoppersprimary
Customers buy pre-owned and forfeited goods such as jewelry, electronics and tools at neighborhood stores.
- AFF merchant partnerssecondary
Retailers and e-commerce merchants use AFF to offer lease-to-own and financing options to end customers.
- AFF end consumerssecondary
Credit-constrained shoppers use AFF financing to spread payments on consumer goods and services.
The company operates pawn stores in 29 U.S. states and the District of Columbia, plus Mexico, Guatemala, El Salvador,...
- •U.S. pawn stores are the largest operating base
- •Latin America includes Mexico, Guatemala, El Salvador and Colombia
- •U.K. pawn operations expanded with the H&T acquisition
- •AFF operates in the U.S. through merchant partners
- •Local-currency markets create FX and regulatory exposure
FirstCash is focused on expanding pawn store count, growing pawn receivables and inventories in existing stores, and...
01
Expand pawn store footprintmedium-term
More locations and larger store bases increase lending and merchandise sales capacity.
02
Diversify AFF merchant concentrationshort-term
Reducing dependence on large merchants and furniture exposure lowers volume volatility.
03
Invest in technology and customer supportmedium-term
Better underwriting, servicing and merchant tools support growth and compliance.
The business is exposed to regulatory scrutiny, consumer-credit reputation risk and competition from pawnshops, banks,...
Commodity price declines
Pawn collateral and resale value are tied to gold, precious metals and diamonds.
- Scope
- Pawn merchandise and loan recovery values
- Materiality
- high
Merchant concentration at AFF
A loss of large merchant partners could reduce transaction volumes materially.
- Scope
- Retail POS payment solutions
- Materiality
- high
Foreign exchange volatility
Latin America and U.K. earnings are translated from local currencies into USD.
- Scope
- Mexico, Guatemala, Colombia and U.K.
- Materiality
- medium
Goodwill impairment
Large acquisition-driven goodwill balances can be written down if performance weakens.
- Scope
- Acquired businesses including H&T and AFF
- Materiality
- high
Goodwill impairment
Could materially reduce reported earnings and equity
Allowance for lease and loan losses
Affects revenue recognition timing and credit loss expense
Foreign currency remeasurement
Creates non-cash gains or losses in reported results
Acquisition-related amortization
Can depress GAAP earnings versus operating cash generation
: 28.4.2026