FirstCash Holdings (NASDAQ:FCFS) delivered a standout first-quarter performance that comfortably exceeded Wall Street’s expectations, sending shares higher in pre-market trading as investors welcomed accelerating growth across its international pawn operations.
The company reported adjusted earnings per share of $2.69 for the three months ended March 31, 2026, crushing the analyst consensus estimate of $2.36 by a wide margin. Revenue for the quarter came in at $1.052 billion, also above the $1.023 billion analysts had forecast, representing a 26% increase from the $836.4 million reported in the same period last year.
The market reacted swiftly to the news, with FirstCash shares climbing roughly 3.6% in pre-market trading. The stock had already been trending higher over the past month, gaining 4.7%, and appears to have found additional momentum from the results and the company’s decision to raise its full-year revenue guidance.
Record Quarterly Performance
The first quarter of 2026 was a record-breaking period for FirstCash, with net income rising 29% to $107.7 million on a GAAP basis. Adjusted net income hit $119 million, up 28% year-over-year. Adjusted EBITDA jumped 29% to $210.6 million, underscoring the company’s ability to convert top-line growth into profit.
CEO Rick Wessel attributed the results to “exceptionally strong performances in each of the three pawn segments.” U.S. pawn revenues rose 16%, Latin America pawn revenues surged 40% on a U.S. dollar basis (23% in local currency), and the recently acquired U.K. operations contributed $102 million in revenue with a segment margin of 39%.
Perhaps the most telling metric for future performance was the acceleration in same-store pawn receivables. At the end of the quarter, these grew an unprecedented 19% in the U.S., 30% in Latin America, and 29% in the U.K. on a local currency basis. Pawn receivables represent the outstanding loan book and are considered the leading indicator of future fee income.
Segment Performance Details
U.S. Pawn: Revenue increased 16%, driven by strong same-store growth and contributions from 2025 acquisitions. Segment pre-tax operating income rose 25%, pushing the margin to a record 29%. Retail sales margins improved to 44% from 42% a year ago.
Latin America Pawn: Revenue increased 40% in U.S. dollars. Segment pre-tax income jumped 62%, reaching a record $51 million, with margins expanding from 17% to 20%. Growth was supported by continued inflationary pressures and favorable currency trends.
U.K. Pawn: The segment generated $102 million in revenue and $39 million in pre-tax operating income, achieving a 39% margin. Pawn receivables grew 29% on a local currency basis.
American First Finance (AFF): The retail POS payment solutions segment reported pre-tax income of $26 million. While this was down from the prior year — which included run-off revenue from merchant bankruptcies — gross transaction volumes increased 3% sequentially, an improvement from the 3% decline in the prior quarter.
Revised Guidance Points Higher
Management raised its full-year 2026 revenue guidance for each pawn segment based on accelerating demand. The company now expects:
- U.S. Pawn: Mid-teen growth in pawn fees (previously low double-digit), with retail sales growth of 10% or more.
- Latin America Pawn: High-teen growth in pawn fees (previously mid-teens), with retail sales growth in the mid-teens.
- U.K. Pawn: Segment income in a range of $125 million to $135 million, up from the prior $115 million to $125 million.
The company also noted that April pawn receivable balances are trending over 20% higher in the U.S. and remain strong in Latin America and the U.K., suggesting continued momentum into the second quarter.
Analysts had estimated full-year 2026 sales of $4.254 billion, a figure that now appears conservative given the raised guidance. Consensus EPS estimates for the full year stand at $10.41 per share, though that number is likely to move higher following this release.
Cash Flow and Capital Allocation
FirstCash generated $613 million in operating cash flows over the trailing twelve months, which it used to fund store expansion, real estate purchases, and shareholder returns. The company repurchased 261,000 shares in Q1 at an average price of $191.79 per share, totaling $50 million, and declared a quarterly dividend of $0.42 per share — an annualized payout of $1.68.
The net debt to adjusted EBITDA ratio stood at 2.9x, or 2.6x on a proforma basis, down from 2.9x six months ago, indicating the company is successfully deleveraging following the H&T acquisition in August 2025.
Valuation Metrics
FirstCash generated a 16% return on equity and 7% return on assets over the trailing twelve months on a GAAP basis. Using adjusted net income, those figures improve to 19% and 8%, respectively. With over 3,300 stores across 29 U.S. states, 32 Mexican states, Guatemala, El Salvador, Colombia, and the U.K., the company's geographic diversification continues to provide a buffer against regional economic fluctuations.
For a deeper look into FirstCash's historical earnings trends and future projections, you can view the full earnings data and analyst estimates at the links below:
- View historical earnings: FCFS Earnings Data
- See future forecasts and analyst ratings: FCFS Analyst Forecasts
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research and consult with a licensed financial advisor before making investment decisions.