FirstCash Holdings, Inc.FCFS
FirstCash Holdings, Inc. Income Taxes Disclosure
INCOME TAXES
Components of the provision for income taxes and the income to which it relates for the years ended December 31, 2025, 2024 and 2023 consist of the following (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Income before income taxes (1): | |||||||||||||||||
| Domestic | $ | 331,382 | $ | 280,685 | $ | 217,502 | |||||||||||
| Foreign | 116,181 | 62,091 | 75,347 | ||||||||||||||
| Income before income taxes | $ | 447,563 | $ | 342,776 | $ | 292,849 | |||||||||||
| Current income taxes: | |||||||||||||||||
U.S. federal | $ | 54,749 | $ | 66,338 | $ | 53,217 | |||||||||||
| Foreign | 32,642 | 14,988 | 18,683 | ||||||||||||||
| U.S. state and local | 10,443 | 10,012 | 15,124 | ||||||||||||||
| Current provision for income taxes | 97,834 | 91,338 | 87,024 | ||||||||||||||
| Deferred provision (benefit) for income taxes: | |||||||||||||||||
U.S. federal | 20,325 | (7,571) | (6,253) | ||||||||||||||
| Foreign | (1,045) | 822 | 1,475 | ||||||||||||||
| U.S. state and local | 74 | (628) | (8,698) | ||||||||||||||
| Total deferred provision for income taxes | 19,354 | (7,377) | (13,476) | ||||||||||||||
| Provision for income taxes | $ | 117,188 | $ | 83,961 | $ | 73,548 | |||||||||||
(1)Includes the allocation of certain administrative expenses and intercompany payments, such as royalties, management fees and interest, between domestic and foreign subsidiaries.
At December 31, 2025, the cumulative amount of undistributed earnings of foreign subsidiaries was $254.4 million. The Tax Cuts and Jobs Act imposed a mandatory transition tax on accumulated foreign earnings and generally eliminated U.S. federal income taxes on dividends from foreign subsidiaries with the exception of foreign withholding taxes and other foreign local tax. During 2025, the Company repatriated $76.2 million from certain foreign subsidiaries, which was not subject to withholding or federal income tax. It is the Company’s intent to indefinitely reinvest the remaining undistributed earnings and future earnings of certain subsidiaries outside the U.S. and, therefore, deferred taxes are not currently recorded on cumulative foreign currency translation adjustments. For those subsidiaries where the company is not asserting indefinite reinvestment of the remaining undistributed earnings and future earnings, there are no deferred taxes which to record.
The principal deferred tax assets and liabilities consist of the following (in thousands):
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Property and equipment in foreign jurisdictions | $ | 19,306 | $ | 16,305 | |||||||
| Finance receivables | 27,077 | 26,378 | |||||||||
| Accrued fees on forfeited pawn loans | 11,650 | 8,998 | |||||||||
| Deferred cost of goods sold deduction | 3,737 | 3,133 | |||||||||
Accrued compensation and employee benefits | 5,685 | 3,833 | |||||||||
| U.S. state and certain foreign net operating losses | 5,315 | 6,170 | |||||||||
| Other | 10,504 | 4,973 | |||||||||
| Total deferred tax assets | 83,274 | 69,790 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Intangible assets | 188,077 | 163,612 | |||||||||
| Leased merchandise and property and equipment in domestic jurisdictions | 34,654 | 19,655 | |||||||||
| Net operating lease asset | 1,930 | 825 | |||||||||
| Other | 5,855 | 3,390 | |||||||||
| Total deferred tax liabilities | 230,516 | 187,482 | |||||||||
| Net deferred tax liabilities before valuation allowance | (147,242) | (117,692) | |||||||||
| Valuation allowance | (5,315) | (6,170) | |||||||||
| Net deferred tax liabilities | $ | (152,557) | $ | (123,862) | |||||||
| Reported as: | |||||||||||
| Deferred tax assets | $ | 6,262 | $ | 4,712 | |||||||
| Deferred tax liabilities | (158,819) | (128,574) | |||||||||
| Net deferred tax liabilities | $ | (152,557) | $ | (123,862) | |||||||
The Company has a valuation allowance of $5.3 million and $6.2 million as of December 31, 2025 and 2024, respectively, related to the deferred tax assets associated with its U.S. state and certain foreign net operating losses. The Company has evaluated the nature and timing of its other deferred tax assets and concluded that no additional valuation allowance is necessary.
The following is a reconciliation of income taxes calculated at the U.S. federal statutory rate to the provision for income taxes (dollars in thousands):
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| In Thousands | % | In Thousands | % | In Thousands | % | ||||||||||||||||||||||||||||||
| Tax at the U.S. federal statutory rate | $ | 93,988 | 21.0 | % | $ | 71,983 | 21.0 | % | $ | 61,498 | 21.0 | % | |||||||||||||||||||||||
U.S. state income tax, net of federal income tax effect (1) | 8,575 | 1.9 | % | 5,990 | 1.8 | % | 5,076 | 1.7 | % | ||||||||||||||||||||||||||
Foreign tax effects: | |||||||||||||||||||||||||||||||||||
Mexico: | |||||||||||||||||||||||||||||||||||
| Statutory tax rate difference between U.S. and Mexico | 7,482 | 1.7 | % | 5,363 | 1.6 | % | 6,510 | 2.2 | % | ||||||||||||||||||||||||||
| Mexico inflation index adjustment | (5,154) | (1.2) | % | (6,021) | (1.7) | % | (5,685) | (1.9) | % | ||||||||||||||||||||||||||
Other | 3,382 | 0.8 | % | 2,896 | 0.8 | % | 3,176 | 1.1 | % | ||||||||||||||||||||||||||
Other foreign jurisdictions | 1,481 | 0.3 | % | 498 | 0.2 | % | 372 | 0.1 | % | ||||||||||||||||||||||||||
Effect of cross-border tax laws: | |||||||||||||||||||||||||||||||||||
Foreign-derived intangible income | (1,260) | (0.3) | % | (1,260) | (0.4) | % | — | — | % | ||||||||||||||||||||||||||
Tax credits | (500) | (0.1) | % | (550) | (0.2) | % | (1,500) | (0.5) | % | ||||||||||||||||||||||||||
Nontaxable or nondeductible items: | |||||||||||||||||||||||||||||||||||
Nondeductible compensation | 5,968 | 1.3 | % | 3,864 | 1.1 | % | 4,358 | 1.5 | % | ||||||||||||||||||||||||||
Other | 2,878 | 0.7 | % | (253) | (0.1) | % | 979 | 0.3 | % | ||||||||||||||||||||||||||
Other adjustments, net | 348 | 0.1 | % | 1,451 | 0.4 | % | (1,236) | (0.4) | % | ||||||||||||||||||||||||||
Effective tax rate | $ | 117,188 | 26.2 | % | $ | 83,961 | 24.5 | % | $ | 73,548 | 25.1 | % | |||||||||||||||||||||||
(1)State taxes in Texas, Florida and Maryland made up the majority (greater than 50%) of the tax effect in this category.
The Company’s foreign pawn operating subsidiaries are subject to their respective foreign statutory rates, which differ from the U.S. federal statutory rate. The statutory tax rates in Mexico, Guatemala, Colombia, El Salvador and the U.K. are 30%, 25%, 35%, 30% and 25%, respectively.
The Company reviews the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Interest and penalties related to income tax liabilities that could arise would be classified as interest expense in the Company’s consolidated statements of income.
As of December 31, 2025 and 2024, the Company had no unrecognized tax benefits and, therefore, the Company did not have a liability for accrued interest and penalties and no such interest or penalties were incurred for the years ended December 31, 2025, 2024 and 2023.
The Company files federal income tax returns in the U.S., Mexico, Guatemala, Colombia, El Salvador, the U.K., Jamaica and Puerto Rico, as well as multiple state and local income tax returns in the U.S. The Company’s U.S. federal returns are not subject to examination for tax years prior to 2022. The majority of the Company’s U.S. state income tax returns are not subject to examination for the tax years prior to 2022. The federal tax returns in Mexico are closed to examination for the tax years prior to 2019. With respect to federal tax returns in Guatemala, Colombia, El Salvador, the U.K., Jamaica and Puerto Rico, the tax years prior to 2020 are closed to examination. There are no state income taxes in Mexico, Guatemala, Colombia, El Salvador, the U.K., Jamaica or Puerto Rico.
Net cash paid for income taxes consists of the following (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. Federal | $ | 43,970 | $ | 55,937 | $ | 62,400 | |||||||||||
| Aggregated state and local jurisdictions | 7,490 | 12,684 | 23,142 | ||||||||||||||
| Aggregated foreign jurisdictions | 1,336 | 3,261 | 1,387 | ||||||||||||||
| Disaggregated foreign jurisdictions: | |||||||||||||||||
| Mexico | 14,444 | 13,542 | 15,234 | ||||||||||||||
| U.K. | 5,475 | — | — | ||||||||||||||
Net cash paid for income taxes | $ | 72,715 | $ | 85,424 | $ | 102,163 | |||||||||||
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 Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.