FirstCash Holdings, Inc.FCFS
FirstCash Holdings, Inc. Fair Value Disclosure
FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest):
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
Recurring Fair Value Measurements
The Company did not have any financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024.
Fair Value Measurements on a Non-Recurring Basis
The Company measures non-financial assets and liabilities, such as property and equipment and intangible assets, at fair value on a non-recurring basis, or when events or circumstances indicate that the carrying amount of the assets may be impaired. There were no such events or conditions identified during 2025 and 2024.
Financial Assets and Liabilities Not Measured at Fair Value, But for Which Fair Value is Disclosed
The Company’s financial assets and liabilities as of December 31, 2025 and 2024 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands):
| Carrying Value | Estimated Fair Value | ||||||||||||||||||||||||||||
| December 31, | December 31, | Fair Value Measurements Using | |||||||||||||||||||||||||||
| 2025 | 2025 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 125,197 | $ | 125,197 | $ | 125,197 | $ | — | $ | — | |||||||||||||||||||
| Accounts receivable, net | 115,854 | 115,854 | — | — | 115,854 | ||||||||||||||||||||||||
| Pawn loans | 831,497 | 831,497 | — | — | 831,497 | ||||||||||||||||||||||||
Finance receivables, net (1) | 150,274 | 281,504 | — | — | 281,504 | ||||||||||||||||||||||||
| $ | 1,222,822 | $ | 1,354,052 | $ | 125,197 | $ | — | $ | 1,228,855 | ||||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||||||||
| Liability for off-balance sheet credit exposure | $ | 13,782 | $ | 13,782 | $ | — | $ | — | $ | 13,782 | |||||||||||||||||||
Revolving unsecured credit facility | 559,000 | 559,000 | — | 559,000 | — | ||||||||||||||||||||||||
Other long-term debt (outstanding principal) | 1,665,006 | 1,679,006 | — | 1,679,006 | — | ||||||||||||||||||||||||
| $ | 2,237,788 | $ | 2,251,788 | $ | — | $ | 2,238,006 | $ | 13,782 | ||||||||||||||||||||
(1)Finance receivables, gross as of December 31, 2025 was $283.5 million. See Note 7.
| Carrying Value | Estimated Fair Value | ||||||||||||||||||||||||||||
| December 31, | December 31, | Fair Value Measurements Using | |||||||||||||||||||||||||||
| 2024 | 2024 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 175,095 | $ | 175,095 | $ | 175,095 | $ | — | $ | — | |||||||||||||||||||
| Accounts receivable, net | 73,325 | 73,325 | — | — | 73,325 | ||||||||||||||||||||||||
| Pawn loans | 517,867 | 517,867 | — | — | 517,867 | ||||||||||||||||||||||||
Finance receivables, net (1) | 147,501 | 296,526 | — | — | 296,526 | ||||||||||||||||||||||||
| $ | 913,788 | $ | 1,062,813 | $ | 175,095 | $ | — | $ | 887,718 | ||||||||||||||||||||
| Financial liabilities: | |||||||||||||||||||||||||||||
| Revolving unsecured credit facility | $ | 198,000 | $ | 198,000 | $ | — | $ | 198,000 | $ | — | |||||||||||||||||||
| Other long-term debt (outstanding principal) | 1,550,000 | 1,503,000 | — | 1,503,000 | — | ||||||||||||||||||||||||
| $ | 1,748,000 | $ | 1,701,000 | $ | — | $ | 1,701,000 | $ | — | ||||||||||||||||||||
(1)Finance receivables, gross as of December 31, 2024 was $294.2 million. See Note 7.
As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and accounts receivable, net approximate fair value.
Finance receivables are measured at amortized cost, net of an allowance for loan losses on the consolidated balance sheets. In estimating fair value for finance receivables, the Company utilized a discounted cash flow methodology. The Company used various unobservable inputs reflecting its own assumptions, such as contractual future principal and interest cash flows, future charge-off rates and discount rates (which consider current interest rates and are adjusted for credit risk, among other factors).
The carrying value of the liability for off-balance sheet credit exposure approximates fair value as of December 31, 2025 due to the short-term nature and estimation based on current expected lifetime losses.
The carrying value of the revolving unsecured credit facility approximates fair value as of December 31, 2025 and 2024. The fair value of the revolving unsecured credit facility is estimated based on market values for debt issuances with similar characteristics or rates currently available for debt with similar terms. In addition, the revolving unsecured credit facility has a variable interest rate based on the prevailing SOFR and reprices with any changes in SOFR.
The other long-term debt consists primarily of fixed rate secured term loans and senior unsecured notes. The fair value of the secured term loans is estimated based on market values for debt issuances with similar characteristics or rates currently available for debt with similar terms. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active. The remainder of the other long-term debt consists of two variable interest rate credit facilities, the carrying value of which approximates fair value as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 9, 2026 | Showing above |
| 2024 | Feb 3, 2025 | |
| 2023 | Feb 5, 2024 | |
| 2022 | Feb 6, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 1, 2021 | |
| 2019 | Feb 3, 2020 | |
| 2018 | Feb 5, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 17, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.