FirstCash Q3 2024 Earnings Report
Key Takeaways
FirstCash Holdings, Inc. reported record third-quarter revenue of $837 million, a 6% increase year-over-year, and record earnings. The U.S. pawn segment showed double-digit growth in same-store pawn receivables, and AFF saw a 14% increase in gross origination volumes. The company added 16 new pawn stores in Q3 and declared a quarterly cash dividend of $0.38 per share.
Achieved record revenue and earnings for the third quarter and year-to-date periods.
U.S. pawn segment experienced a fifth consecutive quarter of double-digit growth in same-store pawn receivables.
AFF recorded a 14% increase in third-quarter gross origination volumes.
Opened 16 new pawn stores in the third quarter, with a total of 83 stores added year-to-date.
FirstCash
FirstCash
FirstCash Revenue by Segment
FirstCash Revenue by Geographic Location
Forward Guidance
The outlook for the remainder of 2024 continues to be highly positive, with expected year-over-year growth in consolidated revenue and earnings driven by the continued growth in earning asset balances coupled with store additions.
Positive Outlook
- Pawn operations are expected to remain the primary earnings driver in 2024.
- Targeting the addition of approximately 90 total pawn locations for 2024.
- U.S. pawn fees are expected to increase in the range of 10% to 12%.
- Retail sales growth is expected to remain in-line with the inventory growth of 10%.
- Year-over-year growth in gross transaction volumes is still projected for the full year and fourth quarter of 2024, driven by increasing active merchant doors and further expansion of non-furniture verticals.
Challenges Ahead
- Latin America results in the fourth quarter are expected to be negatively impacted by the lower exchange rate for the Mexican peso.
- Weakness in the macro furniture retail environment continues to negatively impact performance from many of its merchant retail partners in the furniture retail vertical.
- The origination and revenue outlook takes into consideration the previously announced bankruptcy filing of Conn’s Home Plus which now assumes minimal originations from November 2024 forward from this merchant relationship.
- Anticipated provision rates are expected to range between 25% and 28% in the fourth quarter of the year.
- Each full point change in the exchange rate of the Mexican peso represents an annual earnings impact of approximately $0.10 per share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income