FirstCash Holdings Inc (NASDAQ:FCFS) Surpasses Earnings Estimates on Record Quarterly Revenue
FirstCash Holdings Inc, the international pawn store operator, closed its 2025 fiscal year with a powerful fourth quarter, delivering revenue and earnings that exceeded analyst expectations. The company's results, driven by robust growth across its global pawn operations and strategic acquisitions, were met with a muted initial market reaction.
Earnings and Revenue Beat
For the critical fourth quarter ending December 31, 2025, FirstCash posted record results that topped Wall Street forecasts.
- Revenue: Reported revenue reached $1.058 billion, surpassing the analyst consensus estimate of approximately $1.043 billion. This represents a significant 20% increase over the prior-year quarter and marks the first time in company history that quarterly revenue has exceeded the $1 billion threshold.
- Earnings Per Share (EPS): Adjusted diluted EPS came in at $2.64, beating the estimated $2.56. On a GAAP basis, diluted EPS was $2.35, a 26% increase year-over-year.
The beat was fueled by exceptional strength in the company's core pawn business. Consolidated same-store pawn receivables grew by a record 18%, indicating strong underlying customer demand for pawn loans across its markets.
Market Reaction and Performance
Despite the earnings and revenue beat, along with a positive outlook for 2026, the stock saw a slight negative move in pre-market trading, indicating a potential "sell the news" reaction or profit-taking after a strong recent run. The stock's performance over broader timeframes shows a more positive trend:
- Pre-market performance following the earnings release: -1.1%
- Performance over the last month: +5.4%
This suggests that while the immediate reaction was cautious, longer-term investors may be factoring in the company's sustained growth trajectory and expansion efforts.
Key Highlights from the Quarterly Report
The earnings release underscored several transformative developments for FirstCash in 2025:
- Aggressive Store Expansion: The company added 344 pawn locations in 2025—the most in any year since its major merger a decade ago—bringing its total global footprint to over 3,330 stores. This includes the pivotal acquisition of H&T Pawnbrokers in the United Kingdom, which added 286 stores and a new geographic market.
- Segment Strength: All three pawn segments (U.S., Latin America, and the U.K.) showed outstanding growth. The U.K. segment, in its first full quarter, contributed $96 million in revenue. The Latin America segment saw particularly strong constant currency revenue growth of 17%.
- Shareholder Returns: The company returned $186 million to shareholders in 2025 through dividends and stock repurchases. A new quarterly dividend of $0.42 per share was declared, and a new $150 million share repurchase program was authorized.
- Strong Balance Sheet: Operating cash flow hit a record $586 million for the full year, supporting both expansion and shareholder returns while maintaining a manageable net debt to adjusted EBITDA ratio.
2026 Outlook vs. Analyst Estimates
Management provided a "highly positive" outlook for 2026, expecting continued growth from its expanded store base and strong pawn receivable balances. The company's commentary aligns generally with current analyst projections.
- Analyst Sales Estimate for FY 2026: Approximately $4.05 billion.
- FirstCash's Implied Trajectory: With Q4 2025 annualized revenue at $4.23 billion and the company guiding for continued growth from new stores and same-store performance, the internal expectations appear to be in line with or potentially above street estimates. The company specifically expects its combined pawn segments to drive nearly 90% of total net revenue.
For a detailed breakdown of future quarterly estimates and historical earnings data, you can review the FirstCash earnings and estimates page here.
Conclusion
FirstCash capped off a record-breaking 2025 by exceeding earnings expectations, demonstrating the resilience and growth potential of its global pawn model. The strategic expansion into the U.K. and sustained organic growth across its operations provide a solid foundation for 2026. While the immediate market reaction was slightly negative, the company's strong financial performance, aggressive expansion strategy, and commitment to shareholder returns paint a picture of a business executing effectively on its long-term plan. Investors will now watch for the company's ability to integrate its acquisitions and continue its momentum into the new fiscal year.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
