FCFS

MKT CAP $9.4BP/E 24.7DIV YIELD —FCF YIELD —REV TTM $4.1B +21.6%NET INCOME $388.1M +33.0%NET DEBT $2.2B52W 148.05 – 236.43SEC XBRL · TTM TO Invalid Date

How FCFS rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

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106

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+1,031

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New in FY2025

Each of the Company’s 3,330 pawn locations provides consumers with a neighborhood-based market to buy and resell pre-owned and popular consumer products in a safe environment, along with access to a quick and convenient source of short-term cash through non-recourse pawn transactions.
The Company resold approximately 14 million individual used or pre-owned consumer product items in its pawn stores during 2025 having a commercial value of approximately $1.7 billion.
Unlike most brick-and-mortar or online retailers, the Company does not rely on supply chains or manufacturing of its retail inventories, as it sources the majority of its inventory from unredeemed pawn loan collateral and merchandise purchased directly from customers living or working near the Company’s pawn stores.
The Company does not own, lease or operate any long-haul trucks to support its 3,330 pawn locations and, other than operating small storefront locations which are typically 5,000 square feet or less, the Company’s operations leave a limited carbon footprint compared to manufacturers and retailers selling new merchandise with extensive supply chain and distribution channels.
Additionally, almost all retail sales and pawn loans are made to customers who live or work within a tight geographic radius of the Company’s stores.
The Company is working to further reduce energy consumption by continuing to retrofit its offices and stores with LED lighting and more energy efficient HVAC equipment.
Safe Capital Access Solutions in Underserved Communities According to multiple studies and surveys, significant segments of populations in most economies are unbanked or underbanked.
As examples, approximately 25% of U.S. households remain unbanked or under-banked while in Latin America, the number of unbanked or under-banked consumers can be as much as 75% of the local population.
The Company has significant operations in Mexico and throughout other Latin American countries, where the majority of its employees and customers reside.
The Company is certified in Mexico as an Empresa Socialmente Responsable (“ESR”), or a socially responsible company under the XVIII Latin American Meeting of Corporate Social Responsibility Framework.
This ESR certification is granted by the Mexican Center for Philanthropy to companies that meet a series of criteria that generally cover the economic, social and environmental sustainability of its operations, including corporate ethics, good governance, the quality of life of the Company’s employees and a proven commitment to the betterment of the community where it operates, including the care and preservation of the environment.
For instance, the Company has participated in the Government Program of Youth Building the Future in Mexico since 2019 by providing year-long apprenticeships to participants aspiring to build careers in legal, human resources, and information technology industries.
In North Texas, where the Company is headquartered, the Company has made meaningful investments in the local community in the form of event sponsorships, employee volunteer service hours and matching certain employee donations to non-profits.
In order to increase retention of its employees, the Company is focused on providing competitive and attractive wages and benefits (which includes a store-level profit-sharing program for its pawn store employees) and extensive training and advancement opportunities as well as fostering a safe, healthy and secure workplace.
The learning takes a blended approach involving formal courses, self-directed learning and on-the-job applications. • Coordinating and enrolling training, at least annually, including compliance and anti-harassment training to all team members, as well as ethics and leadership training to all management-level team members. • Providing team members with recurring training on critical issues such as safety and security, lending and collection practices, ethics and integrity, information security and other compliance matters. • Offering a tuition reimbursement program to U.S. and U.K. employees for courses related to current or future roles at the Company and also discounted tuition rates to select universities in the U.S. • Offering eligible U.S. employees private health and life insurance benefits and a comprehensive suite of well-being offerings, including health coaching sessions, financial coaching sessions with a certified financial planner and counseling/emotional support through the Company’s Employee Assistance program. • Matching eligible U.S. and U.K. team members’ retirement plan contributions after meeting certain service requirements. • Offering U.S. employees access to thousands of partner discounts for services and products through the partner portal. • All employees in Latin America and the U.K. have access to public healthcare and are provided with other statutory benefits.
Certain management-level employees and administrative employees in Mexico and the U.K. are provided private health insurance. • All eligible employees in Mexico participate in a statutory profit sharing program.
Workplace Profile As of December 31, 2025, the Company had approximately 22,000 employees across seven countries (the U.S., Mexico, Guatemala, El Salvador, Colombia, Jamaica and the U.K.).
The Company employed approximately 8,300 employees in the U.S. as of December 31, 2025, including approximately 1,200 persons employed in executive, supervisory, administrative and accounting functions.
The Company employed approximately 11,900 employees in Latin America as of December 31, 2025, including approximately 1,100 persons employed in executive, supervisory, administrative and accounting functions.
The Company employed approximately 1,700 employees in the U.K. as of December 31, 2025, including approximately 400 persons employed in executive, supervisory, administrative and accounting functions.
None of the Company’s U.K. employees are covered by collective bargaining agreements.
Governmental Regulation General Overview The Company’s pawn and retail POS payment solutions businesses are subject to significant regulation by various laws, regulations, ordinances and regulatory pronouncements from federal, state and municipal governmental entities in the U.S.
Latin America and the U.K., all of which are constantly evolving and subject to potentially significant changes.
Actions of the current U.S. presidential administration could result in changes in federal policy with significant impacts on the legal and regulatory framework affecting the industries in which the related consumers are involved.
These changes, including restructuring and widespread personnel changes at the applicable regulatory agencies, may alter the nature and scope of oversight affecting such industries.
The nature, timing and economic and political effects of potential changes affecting such industries generally remains uncertain and it is possible that such uncertainty may adversely affect the Company.
In addition, the United States, China, Canada, Mexico, members of the European Union and other countries have imposed, or have threatened to impose, new or enhanced tariffs, quotas, trade barriers and other restrictions on imports into their respective territories.
Numerous trade restrictions are currently in effect and such restrictions, coupled with the risk of retaliatory steps taken in response to such restrictions, could result in a depression of economic activity in the United States, which in turn could adversely affect consumers and contribute to general market volatility.
As the Company derives significant revenue, earnings and cash flow from operations in Latin America, primarily in Mexico, there are some inherent risks regarding the overall stability of the trading relationship between Mexico and the U.S. and the burdens imposed thereon by any changes to (or the adoption of new) regulations, tariffs or other federal or state legislation.
Specifically, the Company has significant exposure to fluctuations and devaluations of the Mexican peso and the health of the Mexican economy, which, in each case, may be negatively impacted by changes in U.S. trade treaties, including the United States-Mexico-Canada Agreement and corporate tax policy.
In some cases, there have been negative reactions to the enacted and/or proposed policies as expressed in the media and by politicians in Mexico, which could potentially negatively impact U.S. companies operating in Mexico.
In particular, there is continued uncertainty around Mexico’s current federal administration and how the policies as applied by its administration, including conducting aggressive corporate tax and other regulatory audits, adverse government discretion, and support of increased employee minimum wages, profit sharing and benefit programs, may impact U.S. companies doing business in Mexico generally and pawn and consumer finance companies in particular.
Any such changes in regulations, trade treaties, corporate tax policy, import taxes or adverse court or administrative interpretations of the foregoing could adversely and significantly affect the Mexican economy and ultimately the Mexican peso, which could adversely and significantly affect the Company’s financial position and results of the Company’s Latin America pawn operations.
Federal Regulations The U.S. government and its agencies have significant regulatory authority over the Company’s activities, and its business is subject to a variety of federal laws, including but not limited to the following: Federal Trade Commission (“FTC”) Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) — The FTC and the Consumer Financial Protection Bureau (“CFPB”) regulate advertising for, the marketing of, and practices related to the origination and servicing of financial products and services.
Risk Factors—Regulatory, Legislative and Legal Risks and General Economic and Market Risks.” On January 31, 2025, President Trump designated Scott Bessent as Acting Director of the CFPB.
Acting Director Bessent promptly ordered agency staff to suspend rulemaking, litigation, enforcement and contracting activities.
On February 7, 2025, President Trump removed Acting Director Bessent and designated Russell Vought as Acting Director of the CFPB.
Shortly after his appointment, Acting Director Vought ordered the remaining activities of the CFPB, including supervision and examination activities, to be suspended.
Thereafter, on February 8, 2025, Acting Director Vought ordered all employees to cease operations unless specifically approved by the agency’s chief legal officer.
On February 11, 2025, President Trump announced the nomination of Jonathan McKernan to be Director of the CFPB.

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Gone since FY2024

Each of the Company’s 3,026 pawn locations provides consumers a neighborhood-based market to buy and resell pre-owned and popular consumer products in a safe environment, along with access to a quick and convenient source of short-term cash through non-recourse pawn transactions.
The Company estimates that it resold approximately 13 million individual used or pre-owned consumer product items in its pawn stores during 2024, with a commercial value of approximately $1.5 billion.
During 2024, the Company estimates that it recycled over 57,000 ounces of gold and approximately 47,000 carats of diamonds with a combined market value of over $132 million.
Unlike most brick-and-mortar or online retailers, the Company does not rely on supply chains or manufacturing of its inventories, as it sources the majority of its inventory from forfeited pawn loan collateral and merchandise purchased directly from customers living or working near the Company’s pawn stores.
Almost all retail sales and pawn loans are made to customers who live or work within a tight geographic radius of the Company’s stores.
The Company does not own, lease or operate any long-haul trucks to support its 3,026 pawn locations and, other than operating small storefront locations which are typically 5,000 square feet or less, the Company’s operations leave a limited carbon footprint compared to manufacturers and retailers selling new merchandise with extensive supply chain and distribution channels.
The Company is working to further reduce energy consumption by retrofitting buildings with LED lighting and reducing corporate travel by utilizing remote meeting technologies.
Safe Capital Access Solutions in Underserved Communities According to multiple studies and surveys, approximately 25% of U.S. households remain unbanked or under-banked.
In Latin America, the number of unbanked or under-banked consumers can be as much as 75% of the local population.
The average credit provided by the Company’s pawn business to a customer is $283 in the U.S. and $87 in Latin America as of December 31, 2024.
Pawn loans include loan terms that are highly transparent and easy to understand.
These fiscally responsible products are regulated, safe and affordable non-recourse loans for which the customer has no legal obligation to repay.
All terms are provided in short, easy-to-read contracts that allow the Company’s customers to make well-informed decisions before obtaining a loan.
The Company has significant operations in Mexico, where the majority of its employees and customers reside.
The Company is certified in Mexico as an Empresa Socialmente Responsable (“ESR”), or a socially responsible company under the XII Latin American Meeting of Corporate Social Responsibility Framework.
This ESR certification is granted to companies that meet a series of criteria that generally cover the economic, social and environmental sustainability of its operations, including corporate ethics, good governance, the quality of life of the Company’s employees and a proven commitment to the betterment of the community where it operates, including the care and preservation of the environment.
For instance, the Company participated in the Government Program of Youth Building the Future in Mexico in 2024 by providing year-long apprenticeships to female participants aspiring to build careers in legal, human resources, and information technology industries.
In North Texas, where the Company is headquartered, the Company has made meaningful investments in the local community in the form of employee volunteer service hours and matching certain employee-donations to non-profits.
The Communities Foundation of Texas has recognized AFF as a Be In Good Company member for AFF’s community engagement.
In order to increase retention of its employees, the Company is focused on providing competitive and attractive wages and benefits (which includes a store-level profit-sharing program for its pawn store employees) and extensive training and advancement opportunities as well as fostering safe, healthy and secure workplace.
The Company maintains complaint resolution policies and procedures as well as a confidential whistleblower hotline available to all employees and external stakeholders to report (anonymously, if desired) any matter of concern.
The communications hotline is managed by an independent third party, and such communications are routed to appropriate functions such as Human Resources, Legal or Compliance.
A whistleblower hotline review committee, which includes members from Human Resources, Legal and Compliance, review all cases as a group before any case is closed.
Complaint trends and statistics compiled from the Company’s internal complaint resolution procedures and along with all communications made to the whistleblower hotline are reported to the Board quarterly for review and further investigation, if warranted.
The learning takes a blended approach involving formal courses, self-directed learning and on-the-job applications. • Coordinating and enrolling training, at least annually, including compliance and anti-harassment training to all team members, as well as ethics and leadership training to all management-level team members. • Providing team members with recurring training on critical issues such as safety and security, lending and collection practices, ethics and integrity, information security and other compliance matters. • Offering a tuition reimbursement program to U.S. employees for courses related to current or future roles at the Company and also discounted tuition rates to select universities. • Offering eligible U.S. employees private health and life insurance benefits and a comprehensive suite of well-being offerings, including health coaching sessions, financial coaching sessions with a certified financial planner and counseling/emotional support through the Company’s Employee Assistance program. • Matching team members’ 401(k) plan contributions for all U.S. employees after one year of service. • Offering access to thousands of partner discounts for services and products through the partner portal. • Providing all employees in Latin America public healthcare and other statutory benefits.
Most management-level employees and tenured store and administrative employees in Mexico are provided private health insurance. • All eligible employees in Mexico participate in a statutory profit sharing program.
Workplace Profile As of December 31, 2024, the Company had approximately 20,000 employees across six countries (the U.S., Mexico, Guatemala, El Salvador, Colombia and Jamaica).
The Company employed approximately 8,200 employees in the U.S. as of December 31, 2024, including approximately 1,200 persons employed in executive, supervisory, administrative and accounting functions.
The Company employed approximately 11,600 employees in Latin America as of December 31, 2024, including approximately 900 persons employed in executive, supervisory, administrative and accounting functions.
Governance The Board and the Nominating and Corporate Governance Committee of the Board routinely assess the composition and size of the Board and aim to strike a balance between the knowledge and understanding of the business that comes from longer-term service on the Board and the fresh ideas and perspective that come from adding new members.
As part of this assessment, the Board and the Nominating and Corporate Governance Committee seek a board that includes directors from diverse professional backgrounds with a broad spectrum of experience and expertise and a reputation for integrity.
Governmental Regulation General Overview The Company’s pawn and retail POS payment solutions businesses are subject to significant regulation by various laws, regulations, ordinances and regulatory pronouncements from federal, state and municipal governmental entities in the U.S. and Latin America, all of which are constantly evolving and subject to potentially significant changes.
Federal Regulations The U.S. government and its agencies have significant regulatory authority over the Company’s activities, and its business is subject to a variety of federal laws, including but not limited to the following: Federal Trade Commission (“FTC”) Act and Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”) — The FTC and the CFPB regulate advertising for, the marketing of, and practices related to the origination and servicing of financial products and services.
On November 12, 2021, the Company was named as a defendant in a lawsuit brought by the CFPB alleging violations of the Military Lending Act (“MLA”) as discussed elsewhere herein.
Risk Factors—Regulatory, Legislative and Legal Risks and General Economic and Market Risks.” On October 6, 2017, the CFPB issued its small-dollar loan rule (the “SDL Rule”), which was subsequently revised on July 7, 2020.
Traditional possessory, non-recourse pawn loans are not covered under the SDL Rule.
The SDL Rule defines some of the RISA transactions that AFF purchases and some of the bank loans that AFF sub-services as transactions that are covered under the rule.
The Fifth Circuit did not grant the petition and the SDL Rule is expected to go into effect on March 30, 2025.
The SDL Rule imposes certain obligations and limitations associated with the origination and servicing of covered transactions as of its effective date.
At this time, the Company does not believe that the implementation of the SDL Rule will have a material impact on the Company’s future results of operations or financial condition.

and 30 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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