FirstCash 2025 Q2 Earnings EPS Surges 23.9%

FirstCash(FCFS) reported its fiscal 2025 Q2 earnings on July 28th, 2025. The company’s earnings exceeded expectations, reflecting strong operational resilience. FirstCash raised its guidance for fiscal 2025, projecting continued year-over-year income growth driven by expanding earning asset balances and ongoing store additions. This optimistic outlook is based on favorable market conditions and operational efficiency, demonstrating the company's confidence in maintaining profitability and strategic growth.

Revenue

Revenue for FirstCash in 2025 Q2 was $830.62 million, unchanged from 2024 Q2. Retail merchandise sales contributed $385.13 million, while pawn loan fees amounted to $190.82 million. Leased merchandise income was $139.78 million, and interest and fees on finance receivables reached $76.08 million. Wholesale scrap jewelry sales added $38.82 million to the total revenue.

Earnings/Net Income

FirstCash's earnings per share (EPS) rose significantly by 23.9% to $1.35 in 2025 Q2 from $1.09 in 2024 Q2, indicating continued earnings growth. The company's profitability strengthened with net income increasing by 21.9% to $59.80 million. This strong performance underscores the company's operational resilience and long-term profitability. The EPS growth reflects a positive earnings report.

Post-Earnings Price Action Review

The strategy of purchasing FirstCash shares when revenues exceed expectations and holding them for 30 days proved highly profitable. This approach yielded a substantial return of 238.64%, significantly outperforming the benchmark return of 88.74%. The strategy demonstrated an excess return of 149.90%, showcasing its ability to capitalize on positive earnings surprises effectively. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.86, it also highlighted strong risk management capabilities. The zero drawdown during the backtest period further indicates the strategy's robustness in navigating market fluctuations. Overall, this strategy not only delivered impressive returns but also maintained stability, positioning it as a formidable tool for investors aiming to leverage earnings announcements.

CEO Commentary

FirstCash's CEO highlighted the robust performance in Q2, emphasizing strong customer demand for pawn loans and successful asset balance expansion. Despite slight revenue challenges, the CEO remains optimistic about growth drivers, including store additions and enhancements in retail payment solutions. The leadership is confident in navigating market dynamics while maintaining profitability, reflecting a positive outlook for continued operational strength.

Guidance

FirstCash anticipates a strong fiscal year 2025, projecting continued year-over-year income growth driven by the expansion of earning asset balances and ongoing store additions. The company expects full-year revenue to reach approximately $3.516 billion and earnings per share (EPS) of $8.12, underscoring a positive trajectory based on favorable market conditions and operational efficiency.

Additional News

FirstCash has been actively involved in strategic activities, including the acquisition of H&T, a leading pawn operator in the United Kingdom, with a projected completion by the third quarter. On July 2, 2025, H&T shareholders approved the acquisition terms, marking a significant expansion for FirstCash. Additionally, FirstCash announced a dividend increase, raising its quarterly cash dividend to $0.42 per share, payable on August 29, 2025, to shareholders of record as of August 15, 2025. This move underscores FirstCash's commitment to returning capital to shareholders while pursuing growth opportunities. Furthermore, New South Capital Management Inc. has reported a substantial investment in FirstCash, amounting to $26.01 million, indicating confidence in the company's strategic direction and financial performance.