FirstCash Holdings Inc (NASDAQ:FCFS) Reports Strong Q3 2025 Earnings, Beating Revenue and EPS Estimates

FirstCash Holdings Inc (NASDAQ:FCFS) has reported financial results for the third quarter of 2025 that surpassed analyst expectations, delivering a strong performance across its core pawn operations. The company's earnings and revenue exceeded projections, yet the market's initial reaction appears mixed, with the stock showing modest pre-market gains following the announcement.

Earnings and Revenue Performance

The company posted a significant beat on both the top and bottom lines for the quarter. FirstCash reported revenue of $935.6 million, which represents an 11.7% increase compared to the same period last year. This figure came in well above the analyst consensus estimate of $873.5 million.

On the profitability front, the company reported non-GAAP earnings per share of $2.26, substantially exceeding the $2.03 per share that analysts had projected. This represents a 35% increase in adjusted diluted EPS compared to the prior-year quarter.

Key financial highlights from the quarter include:

• Total revenue of $935.6 million (11.7% year-over-year growth)
• Non-GAAP EPS of $2.26 (35% year-over-year growth)
• Net income increased 28% on a GAAP basis to $82.8 million
• Adjusted EBITDA of $180.6 million, up 30% from the prior year

Market Reaction and Price Action

Despite the earnings beat, the market response has been measured. The stock showed a pre-market increase of approximately 5%, suggesting some positive investor sentiment following the results. However, this comes against a backdrop of recent weakness, with the stock having declined over the past two weeks. This tempered reaction may reflect investor considerations beyond the immediate earnings beat, including broader market conditions or profit-taking after the announcement.

Operational Highlights and Strategic Developments

FirstCash demonstrated robust performance across its business segments, driven by strong consumer demand for pawn services and strategic expansion initiatives. The company's recent acquisition of H&T Pawnbrokers in the United Kingdom, completed in August 2025, contributed meaningfully to the quarter's results.

Notable operational achievements include:

• Record pawn receivables of $788 million, with same-store pawn receivables growing 13% in the U.S., 18% in Latin America, and 25% in the U.K.
• Expansion to over 3,300 pawn stores internationally following the H&T acquisition
• Strong retail sales margins of 43% in the U.S. and 36% in Latin America
• Authorization of a new $150 million share repurchase program
• Quarterly dividend declaration of $0.42 per share

Business Segment Performance

The company's pawn operations continued to be the primary earnings driver, with all geographic segments showing strength. The U.S. pawn segment achieved record pre-tax operating income of $112 million, while the Latin America segment saw pre-tax operating income increase 22% on a U.S. dollar basis. The newly acquired U.K. operations contributed $18 million in pre-tax operating income in their partial quarter of inclusion.

The retail point-of-sale payment solutions segment, American First Finance, also showed strong performance with pre-tax operating income increasing 52% compared to the prior-year quarter, driven by improved credit performance and operating efficiencies.

Forward Outlook and Analyst Estimates

Looking ahead, FirstCash provided an optimistic outlook for the remainder of 2025, expecting continued growth across its pawn operations. The company specifically noted that it is raising its full-year revenue growth expectations for both U.S. and Latin American operations.

For the fourth quarter of 2025, analysts currently project revenue of $954.4 million and earnings per share of approximately $2.48. For the full year 2025, the consensus estimates stand at $3.53 billion in revenue.

The company's guidance suggests confidence in maintaining momentum, particularly citing strong pawn demand trends observed in early October and expectations for continued store growth through acquisitions and new openings.

For investors seeking more detailed earnings analysis and future estimates, additional information is available through the company's earnings and estimates page.

Disclaimer: This article presents financial information for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.