FirstCash Holdings (FCFS) Margin Expansion Reinforces Bullish Earnings Narratives

FirstCash Holdings (FCFS) closed out FY 2025 with fourth quarter revenue of US$1.1b and basic EPS of US$2.35, while trailing twelve month revenue stood at US$3.7b and EPS at US$7.42. Over the past six quarters, revenue has moved from US$837.3m in Q3 2024 to US$1.1b in Q4 2025, with quarterly EPS ranging from US$1.35 in Q2 2025 to US$2.35 in the latest quarter. This reflects expanding scale and an earnings profile that now runs through a wider margin base.

See our full analysis for FirstCash Holdings.

With the latest print on the table, the next step is to see how these numbers line up against the most widely held narratives around FirstCash, and where the data might challenge what many investors think they know about the business.

Curious how numbers become stories that shape markets? Explore Community Narratives

Net margin at 9% on US$3.7b TTM revenue

• On a trailing twelve month basis, FirstCash generated US$3.7b of revenue and US$330.4 million of net income, which works out to a 9% net margin compared with 7.6% in the prior year period.
• What backs a more bullish take is that earnings grew 27.6% over the last year versus a 20.1% annual pace over five years, while net margin moved to 9% from 7.6%. At the same time, revenue forecasts of about 9.8% a year leave some bulls watching how much of the story is margin driven rather than top line led.
  • Supportive data for the bullish side includes the trailing EPS of US$7.42 and trailing net income of US$330.4 million, both higher than the prior year figures in the data.
  • The tension for bulls is that revenue growth projections, at about 9.8% a year, sit just below the 10.2% US market forecast. As a result, the margin level around 9% carries more of the workload in that optimistic view.

Earnings growth at 20.1% per year

• Over the past five years, earnings have grown at about 20.1% per year, with the most recent one year period stepping up to 27.6% growth according to the analysis data.
• Bears point out that this strong earnings record is paired with a high level of debt on the balance sheet and revenue that is forecast to grow at roughly 9.8% a year. This invites questions about how resilient that 16.7% forecast earnings growth rate is if credit conditions or pawn demand soften.
  • The concern is that higher leverage, flagged as a risk, sits alongside a 24.3x P/E and a 9% net margin, so a lot of the recent 27.6% earnings growth has to persist for the story to keep working.
  • At the same time, trailing revenue of US$3.7b and net income of US$330.4 million give bears concrete numbers to stress test against the debt load if growth slows from the recent pace toward the 16.7% forecast.

On this kind of growth and margin profile, many investors want to see how the full narrative fits together over a longer horizon, not just one year of strong numbers. This is exactly what the Curious how numbers become stories that shape markets? Explore Community Narratives is designed to help with.

P/E of 24.3x and DCF fair value gap

• The shares trade around US$181.92 with a trailing P/E of 24.3x, while the provided DCF fair value figure is US$82.22, and the P/E sits below a 35.8x peer average but above the 8.2x consumer finance industry average.
• Critics highlight this mixed valuation picture as a key bearish angle, arguing that strong historical earnings growth and a 9% net margin do not fully explain why the current price of US$181.92 is so far above the US$82.22 DCF fair value figure, especially when revenue growth expectations of about 9.8% a year are only in line with, or slightly below, broad market levels.
  • The spread between 24.3x P/E and the 8.2x industry average gives bears a concrete multiple gap to point to even though the stock is cheaper than the 35.8x peer group figure.
  • The contrast between the quoted price of US$181.92 and the DCF fair value estimate of US$82.22 sits at the center of the cautious view, alongside the flagged high debt level.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on FirstCash Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

FirstCash pairs a higher 24.3x P/E and a sizeable DCF gap with a flagged high debt load, which leaves some investors uneasy about risk.

If that level of leverage and valuation premium feels like a stretch, use our solid balance sheet and fundamentals stocks screener (45 results) to focus on companies where financial strength plays a more prominent role.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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