MIL-OSI: Amalgamated Financial Corp. Reports Second Quarter 2025 Financial Results; Solid Deposit and Loan Growth; Strong Margin at 3.55%

Source: GlobeNewswire (MIL-OSI)

Common Equity Tier 1 Capital Ratio of 14.13% | Tangible Book Value per Share of $24.33

NEW YORK, July 24, 2025 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights (on a linked quarter basis)

Net income of $26.0 million, or $0.84 per diluted share, compared to $25.0 million, or $0.81 per diluted share.
Core net income¹ of $27.0 million, or $0.88 per diluted share, compared to $27.1 million, or $0.88 per diluted share.

Deposits and Liquidity

On-balance sheet deposits increased $321.2 million, or 4.3%, to $7.7 billion.
Excluding $112.3 million of temporary pension funding deposits received on the last day of the quarter and withdrawn on the following day, total deposits increased $208.9 million, or 2.8%, to $7.6 billion.
Off-balance sheet deposits were $41.4 million at the end of the quarter.
Political deposits increased $136.5 million, or 13%, to $1.2 billion, which includes both on and off-balance sheet deposits.
Average cost of deposits, increased 3 basis points to 162 basis points, where non-interest-bearing deposits comprised 36% of total deposits.

Assets and Margin

Net interest margin remained unchanged at 3.55%.
Net interest income grew $2.3 million, or 3.3%, to $72.9 million.
Net loans receivable increased $35.5 million, or 0.8%, to $4.7 billion.
Net loans in growth mode (commercial and industrial, commercial real estate, and multifamily) increased $60.8 million or 2.1%.
Total PACE assessments grew $16.3 million, or 1.4%, to $1.2 billion.
The multifamily and commercial real estate loan portfolios totaled $1.8 billion and had a concentration of 202% to total risk based capital.

Capital and Returns

Tier 1 leverage ratio remained constant at 9.22% and Common Equity Tier 1 ratio was 14.13%.
Tangible common equity¹ ratio decreased 13 basis points to 8.60% due to a larger balance sheet.
Tangible book value per share¹ increased $0.82, or 3.5%, to $24.33, and has increased $7.00, or 40.4% since September 2021.
Core return on average tangible common equity¹ of 14.90% and core return on average assets¹ of 1.28%.

Share Repurchase

Repurchased approximately 327,000 shares, or $9.7 million of common stock, through June 30, 2025, with $30.3 million in remaining capacity under the share repurchase program approved on March 10, 2025.
Approximately 74,000 shares have been repurchased from July 1 through July 22, 2025.


^{1 Definitions are presented under “Non-GAAP Financial Measures”. Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on the Company’s website, www.amalgamatedbank.com.}

Priscilla Sims Brown, President and Chief Executive Officer, commented, “We are achieving our results because our banking model is flexible. We have many levers we can pull to drive performance and that creates reliability and predictability for our shareholders, customers, and employees.”

Second Quarter Earnings

Net income was $26.0 million, or $0.84 per diluted share, compared to $25.0 million, or $0.81 per diluted share, for the prior quarter. The $1.0 million increase during the quarter was primarily driven by a scheduled $2.6 million increase in non-core income related to solar tax equity investments, a $2.3 million increase in net interest income, and a $1.1 million decrease in non-interest expense. This was partially offset by a $4.3 million increase in provision for credit losses, the effect from a $0.8 million net valuation gain on residential loans sold during the previous quarter, and a $0.4 million increase in losses on sales of securities and other assets compared to the linked quarter.

Core net income¹ was $27.0 million, or $0.88 per diluted share, compared to $27.1 million, or $0.88 per diluted share for the prior quarter. Excluded from core net income for the quarter, pre-tax, was $1.0 million of losses on the sale of securities and other assets, $0.3 million of scheduled accelerated depreciation from solar tax equity investments, $0.1 million of severance costs, and $0.1 million of ICS One-Way Sell fee income. Excluded from core net income for the first quarter of 2025, pre-tax, was $2.9 million of accelerated depreciation from solar tax equity investments, a $0.8 million net valuation gain from residential loans sold during the quarter, and $0.7 million of losses on the sale of securities.

Net interest income was $72.9 million, compared to $70.6 million for the prior quarter. Loan interest income increased $0.9 million and loan yields increased 5 basis points despite a $35.6 million decrease in average loan balances, primarily due to completion of a residential loan pool sale in the prior quarter. In addition, commercial loan originations were offset by paydowns and payoffs on lower-yielding commercial and residential loans. Interest income on securities increased $2.0 million driven by an increase in the average balance of securities of $141.2 million despite a slight decline in securities yields of 4 basis points. Interest expense on total interest-bearing deposits increased $1.7 million driven primarily by an increase in the average balance of total interest-bearing deposits of $201.0 million, while interest-bearing deposits cost remained flat.

Net interest margin was 3.55%, the same as the prior quarter largely due to a higher average balance of interest-bearing deposits as noted above, which resulted in a slightly higher blended cost of funds. This offset the interest income generated by the higher average balance of securities and modestly higher loan yields. Additionally, income from prepayment penalties had a one basis point impact on net interest margin in the current quarter, compared to no impact in the prior quarter.

Provision for credit losses was an expense of $4.9 million, compared to an expense of $0.6 million in the prior quarter. The increase in the second quarter was primarily driven by a $2.3 million increase in reserve for one syndicated commercial and industrial loan as well as the macroeconomic forecasts used in the CECL model, primarily related to the consumer solar loan portfolio, which can be volatile.

Non-interest income was $8.0 million, compared to $6.4 million in the prior quarter. Excluding all non-core income adjustments noted above, core non-interest income¹ was $9.3 million, compared to $9.1 million in the prior quarter. The increase was primarily related to higher commercial banking fees, partially offset by lower income from Trust fees.

Non-interest expense was $40.6 million, a decrease of $1.1 million from the prior quarter. Core non-interest expense¹ was $40.4 million, also a decrease of $1.1 million from the prior quarter. This was mainly driven by a $1.5 million decrease in professional fees, partially offset by a $0.4 million increase in advertising expense.

Provision for income tax expense was $9.5 million, compared to $9.7 million for the prior quarter. The effective tax rate was 26.7%, compared to 28.0% in the prior quarter. The California single-sales factor apportionment law was adopted during the quarter which resulted in an increase in the California state tax rate. A discrete tax benefit was recognized during the current quarter for the remeasurement of deferred tax assets reducing the quarterly effective tax rate. Going forward, the tax rate is expected to be 27.3%. The prior quarter effective tax rate was impacted by discrete tax items related to a city and state tax examination. Adjusted, the current quarter effective tax rate was 27.3% compared to 27.0% for the prior quarter.

Balance Sheet Quarterly Summary

Total assets were $8.6 billion at June 30, 2025, a $336.1 million or a 4% increase compared to $8.3 billion at March 31, 2025. On the last day of the quarter, the balance sheet was impacted by $112.3 million of temporary pension funding deposits that were withdrawn the following day. Adjusted, total assets were $8.5 billion, in line with our target for the quarter. Notable changes within individual balance sheet line items include a $177.6 million increase in securities and a $35.5 million increase in net loans receivable. On the liabilities side, on-balance sheet deposits increased by $321.2 million or $208.9 million when adjusted for the temporary deposits noted above. Off-balance sheet deposits decreased by $173.1 million in the quarter. Equity grew by $18.0 million.

Total net loans receivable at June 30, 2025 were $4.7 billion, an increase of $35.5 million, or 0.8% for the quarter. A balanced increase in loans was primarily driven by a $34.2 million increase in multifamily loans, a $13.5 million increase in commercial and industrial loans, and a $13.1 million increase in commercial real estate loans, all in our identified growth portfolios. This was partially offset by a $11.0 million decrease in consumer solar loans, and a $11.8 million decrease in residential loans, both being non-growth portfolios. During the quarter, criticized or classified loans increased $13.9 million, largely related to the downgrades of four commercial and industrial loans totaling $9.7 million, the downgrade of one multifamily loan totaling $2.8 million, additional downgrades of small business loans totaling $1.0 million, and an increase of $2.1 million in residential and consumer substandard loans. This was partially offset by charge-offs of small business loans totaling $1.1 million, and an upgrade of one $0.1 million small business loan.

Total on-balance sheet deposits at June 30, 2025 were $7.7 billion, an increase of $321.2 million, or 4.3%, during the quarter. Including accounts currently held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.2 billion as of June 30, 2025, an increase of $136.5 million during the quarter. Non-interest-bearing deposits represented 38% of average total deposits and 36% of ending total deposits for the quarter, contributing to an average cost of total deposits of 162 basis points. Super-core deposits¹ totaled approximately $4.2 billion, had a weighted average life of 18 years, and comprised 54% of total deposits. Total uninsured deposits were $3.9 billion, comprising 50% of total deposits.

Nonperforming assets totaled $35.2 million, or 0.41% of period-end total assets at June 30, 2025, an increase of $1.3 million, compared with $33.9 million, or 0.41% on a linked quarter basis. The increase in nonperforming assets was primarily driven by a $2.4 million increase in residential non-accrual loans, partially offset by a $0.3 million decrease in commercial and industrial nonaccrual loans, a $0.3 million decrease in consumer solar nonaccrual loans, and a $0.5 million decrease in nonaccrual loans held for sale compared to the prior quarter.

During the quarter, the allowance for credit losses on loans increased $1.3 million to $59.0 million. The ratio of allowance to total loans was 1.25%, an increase of 2 basis points from 1.23% in the first quarter of 2025. This is primarily due to an increase of $2.3 million in reserves for one commercial and industrial loan, along with increases in provision related to the macroeconomic forecasts used in the CECL model. The loan associated with the increased reserve is a commercial and industrial business loan to an originator of consumer loans for renewable energy efficiency improvements. During the quarter, $2.5 million of debtor-in-possession (“DIP”) financing was put in place, a portion of which was advanced and increased our outstanding exposure from $8.3 million to $9.3 million as of June 30, 2025. Additionally, during the third quarter, the remainder of the DIP financing was advanced bringing the total exposure to $10.8 million as of the date of this earnings release. While there remains collateral value, the situation with this loan is fluid and could result in further reserves as the workout progresses.

Capital Quarterly Summary

As of June 30, 2025, the Common Equity Tier 1 Capital ratio was 14.13%, the Total Risk-Based Capital ratio was 16.43%, and the Tier 1 Leverage Capital ratio was 9.22%, compared to 14.27%, 16.61% and 9.22%, respectively, as of March 31, 2025. Stockholders’ equity at June 30, 2025 was $754.0 million, an increase of $18.0 million during the quarter. The increase in stockholders’ equity was primarily driven by $26.0 million of net income for the quarter and a $4.3 million improvement in accumulated other comprehensive loss due to the tax-effected mark-to-market on available for sale securities, offset by $9.7 million in share buybacks and $4.4 million in dividends paid at $0.14 per outstanding share.

Tangible book value per share¹ was $24.33 as of June 30, 2025 compared to $23.51 as of March 31, 2025. Tangible common equity¹ improved to 8.60% of tangible assets, compared to 8.73% as of March 31, 2025.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its second quarter 2025 results today, July 24, 2025 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Second Quarter 2025 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13754662. The telephonic replay will be available until July 31, 2025.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

The presentation materials for the call can be accessed on the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/.

About Amalgamated Financial Corp.

Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of June 30, 2025, total assets were $8.6 billion, total net loans were $4.7 billion, and total deposits were $7.7 billion. Additionally, as of June 30, 2025, the trust business held $36.5 billion in assets under custody and $15.6 billion in assets under management.

Non-GAAP Financial Measures

This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”

Management utilizes this information to compare operating performance for June 30, 2025 versus certain periods in 2025 and 2024 and to prepare internal projections. The Company believes these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to core business, which are excluded, vary extensively from company to company, the Company believe that the presentation of this information allows investors to more easily compare results to those of other companies.

The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. The Company strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on the Company’s website, amalgamatedbank.com.

Terminology

Certain terms used in this release are defined as follows:

“Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

“Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. The Company believes the most directly comparable GAAP financial measure is net income.

“Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, and restructuring/severance. The Company believes the most directly comparable GAAP financial measure is total non-interest expense.

“Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. The Company believes the most directly comparable GAAP financial measure is non-interest income.

“Core operating revenue” is defined as total net interest income plus “core non-interest income”. The Company believes the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

“Core return on average assets” is defined as “Core net income” divided by average total assets. The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

“Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

“Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. The Company believes the most directly comparable GAAP financial measure is total deposits.

“Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. The Company believes the most directly comparable GAAP financial measure is total assets.

“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, goodwill and core deposit intangibles. The Company believes that the most directly comparable GAAP financial measure is total stockholders’ equity.

“Traditional securities” is defined as total investment securities excluding PACE assessments. The Company believes the most directly comparable GAAP financial measure is total investment securities.

Forward-Looking Statements

Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to:

uncertain conditions in the banking industry and in national, regional and local economies in core markets, which may have an adverse impact on business, operations and financial performance;
deterioration in the financial condition of borrowers resulting in significant increases in credit losses and provisions for those losses;
deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors;
changes in deposits, including an increase in uninsured deposits;
ability to maintain sufficient liquidity to meet deposit and debt obligations as they come due, which may require that the Company sell investment securities at a loss, negatively impacting net income, earnings and capital;
unfavorable conditions in the capital markets, which may cause declines in stock price and the value of investments;
negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense;
fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits;
the general decline in the real estate and lending markets, particularly in commercial real estate in the Company’s market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing;
potential implementation by the current presidential administration of a regulatory reform agenda that is significantly different from that of the prior presidential administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies;
changes in U.S. trade policies and other global political factors beyond the Company’s control, including the imposition of tariffs, which raise economic uncertainty, potentially leading to slower growth and a decrease in loan demand;
the outcome of legal or regulatory proceedings that may be instituted against us;
inability to achieve organic loan and deposit growth and the composition of that growth;
composition of the Company’s loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which the Company operates;
inaccuracy of the assumptions and estimates the Company makes and policies that the Company implements in establishing the allowance for credit losses;
changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
any matter that would cause the Company to conclude that there was impairment of any asset, including intangible assets;
limitations on the ability to declare and pay dividends;
the impact of competition with other financial institutions, including pricing pressures and the resulting impact on results, including as a result of compression to net interest margin;
increased competition for experienced members of the workforce including executives in the banking industry;
a failure in or breach of operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;
increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence;
a downgrade in the Company’s credit rating;
“greenwashing claims” against the Company and environmental, social, and governance (“ESG”) products and increased scrutiny and political opposition to ESG and diversity, equity, and inclusion (“DEI”) practices;
any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters) affecting the markets in which the Company operates;
physical and transitional risks related to climate change as they impact the business and the businesses that the Company finances;
future repurchase of the Company’s shares through the Company’s common stock repurchase program; and
descriptions of assumptions underlying or relating to any of the foregoing.

Additional factors which could affect the forward-looking statements can be found in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC’s website at https://www.sec.gov/. The Company disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Jamie Lillis
Solebury Strategic Communications
shareholderrelations@amalgamatedbank.com
800-895-4172

Consolidated Statements of Income (unaudited)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
($ in thousands)	2025			2025			2024			2025			2024
INTEREST AND DIVIDEND INCOME
Loans	$	58,723		$	57,843		$	51,293		$	116,566		$	103,245
Securities		43,737			41,653			44,978			85,390			87,368
Interest-bearing deposits in banks		1,639			1,194			2,690			2,833			5,282
Total interest and dividend income		104,099			100,690			98,961			204,789			195,895
INTEREST EXPENSE
Deposits		30,593			28,917			28,882			59,510			54,773
Borrowed funds		597			1,196			887			1,793			3,893
Total interest expense		31,190			30,113			29,769			61,303			58,666
NET INTEREST INCOME		72,909			70,577			69,192			143,486			137,229
Provision for credit losses		4,890			596			3,161			5,486			4,749
Net interest income after provision for credit losses		68,019			69,981			66,031			138,000			132,480
NON-INTEREST INCOME
Trust Department fees		3,879			4,191			3,657			8,069			7,511
Service charges on deposit accounts		3,873			3,438			8,614			7,311			14,750
Bank-owned life insurance income		796			626			615			1,422			1,224
Losses on sale of securities and other assets		(1,041	)		(680	)		(2,691	)		(1,721	)		(5,465	)
Gain (loss) on sale of loans and changes in fair value on loans held- for-sale, net		18			832			69			850			116
Equity method investments income (loss)		51			(2,508	)		(1,551	)		(2,458	)		521
Other income		449			507			545			957			830
Total non-interest income		8,025			6,406			9,258			14,430			19,487
NON-INTEREST EXPENSE
Compensation and employee benefits		23,240			23,314			23,045			46,554			45,318
Occupancy and depreciation		3,476			3,293			3,379			6,768			6,283
Professional fees		3,283			4,739			2,332			8,022			4,708
Technology		5,485			5,619			4,786			11,103			9,415
Office maintenance and depreciation		570			629			580			1,199			1,243
Amortization of intangible assets		144			144			182			287			365
Advertising and promotion		412			51			1,175			463			2,394
Federal deposit insurance premiums		900			900			1,050			1,800			2,100
Other expense		3,074			2,961			2,983			6,038			5,838
Total non-interest expense		40,584			41,650			39,512			82,234			77,664
Income before income taxes		35,460			34,737			35,777			70,196			74,303
Income tax expense		9,471			9,709			9,024			19,179			20,301
Net income	$	25,989		$	25,028		$	26,753		$	51,017		$	54,002
Earnings per common share – basic	$	0.85		$	0.82		$	0.88		$	1.67		$	1.77
Earnings per common share – diluted	$	0.84		$	0.81		$	0.87		$	1.65		$	1.75

Consolidated Statements of Financial Condition

($ in thousands)	June 30, 2025			March 31, 2025			December 31, 2024
Assets	(unaudited)			(unaudited)
Cash and due from banks	$	4,049		$	4,196		$	4,042
Interest-bearing deposits in banks		167,017			61,518			56,707
Total cash and cash equivalents		171,066			65,714			60,749
Securities:
Available for sale, at fair value
Traditional securities		1,713,077			1,546,127			1,477,047
Property Assessed Clean Energy (“PACE”) assessments		178,247			161,147			152,011
		1,891,324			1,707,274			1,629,058
Held-to-maturity, at amortized cost:
Traditional securities, net of allowance for credit losses of $47, $47, and $49, respectively		529,418			535,065			542,246
PACE assessments, net of allowance for credit losses of $657, $654, and $655, respectively		1,037,220			1,038,052			1,043,959
		1,566,638			1,573,117			1,586,205

Loans held for sale		2,545			3,667			37,593
Loans receivable, net of deferred loan origination fees and costs		4,714,344			4,677,506			4,672,924
Allowance for credit losses		(58,998	)		(57,676	)		(60,086	)
Loans receivable, net		4,655,346			4,619,830			4,612,838

Resell agreements		57,040			41,651			23,741
Federal Home Loan Bank of New York (“FHLBNY”) stock, at cost		5,277			4,679			15,693
Accrued interest receivable		55,509			55,092			61,172
Premises and equipment, net		8,823			7,366			6,386
Bank-owned life insurance		108,465			108,652			108,026
Right-of-use lease asset		11,379			12,477			14,231
Deferred tax asset, net		33,685			33,799			42,437
Goodwill		12,936			12,936			12,936
Intangible assets, net		1,200			1,343			1,487
Equity method investments		5,110			5,639			8,482
Other assets		34,995			31,991			35,858
Total assets	$	8,621,338		$	8,285,227		$	8,256,892
Liabilities
Deposits		7,733,272			7,412,072			7,180,605
Borrowings		75,457			69,676			314,409
Operating leases		15,395			17,190			19,734
Other liabilities		43,230			50,293			34,490
Total liabilities		7,867,354			7,549,231			7,549,238
Stockholders’ equity
Common stock, par value $0.01 per share		310			309			308
Additional paid-in capital		290,256			288,539			288,656
Retained earnings		522,405			500,783			480,144
Accumulated other comprehensive loss, net of income taxes		(42,982	)		(47,308	)		(58,637	)
Treasury stock, at cost		(16,005	)		(6,327	)		(2,817	)
Total stockholders’ equity		753,984			735,996			707,654
Total liabilities and stockholders’ equity	$	8,621,338		$	8,285,227		$	8,256,892

Select Financial Data

	As of and for the Three Months Ended						As of and for the Six Months Ended
	June 30,		March 31,		June 30,		June 30,
(Shares in thousands)	2025		2025		2024		2025		2024
Selected Financial Ratios and Other Data:
Earnings per share
Basic	$	0.85	$	0.82	$	0.88	$	1.67	$	1.77
Diluted		0.84		0.81		0.87		1.65		1.75
Core net income (non-GAAP)
Basic	$	0.88	$	0.88	$	0.86	$	1.77	$	1.70
Diluted		0.88		0.88		0.85		1.75		1.68
Book value per common share (excluding minority interest)	$	24.79	$	23.98	$	21.09	$	24.79	$	21.09
Tangible book value per share (non-GAAP)	$	24.33	$	23.51	$	20.61	$	24.33	$	20.61
Common shares outstanding, par value $0.01 per share⁽¹⁾		30,412		30,697		30,630		30,412		30,630
Weighted average common shares outstanding, basic		30,558		30,682		30,551		30,619		30,513
Weighted average common shares outstanding, diluted		30,758		30,946		30,832		30,872		30,789

(1) 70,000,000 shares authorized; 30,983,139, 30,940,480, and 30,743,666 shares issued for the periods ended June 30, 2025, March 31, 2025, and June 30, 2024 respectively, and 30,412,241, 30,696,940, and 30,630,386 shares outstanding for the periods ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

Select Financial Data

	As of and for the Three Months Ended						As of and for the Six Months Ended
	June 30,		March 31,		June 30,		June 30,
	2025		2025		2024		2025		2024
Selected Performance Metrics:
Return on average assets	1.23	%	1.22	%	1.30	%	1.23	%	1.33	%
Core return on average assets (non-GAAP)	1.28	%	1.33	%	1.27	%	1.30	%	1.27	%
Return on average equity	14.06	%	14.05	%	17.27	%	14.06	%	17.75	%
Core return on average tangible common equity (non-GAAP)	14.90	%	15.54	%	17.34	%	15.21	%	17.46	%
Average equity to average assets	8.78	%	8.71	%	7.53	%	8.75	%	7.48	%
Tangible common equity to tangible assets (non-GAAP)	8.60	%	8.73	%	7.66	%	8.60	%	7.66	%
Loan yield	5.05	%	5.00	%	4.68	%	5.03	%	4.72	%
Securities yield	5.11	%	5.15	%	5.22	%	5.13	%	5.21	%
Deposit cost	1.62	%	1.59	%	1.55	%	1.61	%	1.51	%
Net interest margin	3.55	%	3.55	%	3.46	%	3.55	%	3.47	%
Efficiency ratio ⁽¹⁾	50.14	%	54.10	%	50.37	%	52.07	%	49.56	%
Core efficiency ratio (non-GAAP)	49.21	%	52.11	%	50.80	%	50.64	%	50.60	%

Asset Quality Ratios:
Nonaccrual loans to total loans	0.74	%	0.70	%	0.78	%	0.74	%	0.78	%
Nonperforming assets to total assets	0.41	%	0.41	%	0.43	%	0.41	%	0.43	%
Allowance for credit losses on loans to nonaccrual loans	170.02	%	175.07	%	182.83	%	170.02	%	182.83	%
Allowance for credit losses on loans to total loans	1.25	%	1.23	%	1.42	%	1.25	%	1.42	%
Annualized net charge-offs to average loans	0.30	%	0.22	%	0.25	%	0.26	%	0.22	%

Liquidity Ratios:
2 day Liquidity Coverage of Uninsured Deposits %	96.73	%	93.75	%	100.83	%	96.73	%	100.83	%
Cash and Borrowing Capacity Coverage of Uninsured, Non-Supercore Deposits (%)	167.94	%	163.71	%	174.24	%	167.94	%	174.24	%

Capital Ratios:
Tier 1 leverage capital ratio	9.22	%	9.22	%	8.42	%	9.22	%	8.42	%
Tier 1 risk-based capital ratio	14.13	%	14.27	%	13.48	%	14.13	%	13.48	%
Total risk-based capital ratio	16.43	%	16.61	%	16.04	%	16.43	%	16.04	%
Common equity tier 1 capital ratio	14.13	%	14.27	%	13.48	%	14.13	%	13.48	%

(1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

Loan and PACE Assessments Portfolio Composition

(In thousands)	At June 30, 2025					At March 31, 2025					At June 30, 2024
	Amount			% of total		Amount			% of total		Amount			% of total
Commercial portfolio:
Commercial and industrial	$	1,196,804		25.4	%	$	1,183,297		25.3	%	$	1,012,400		22.6	%
Multifamily		1,406,193		29.8	%		1,371,950		29.4	%		1,230,545		27.5	%
Commercial real estate		422,068		9.0	%		409,004		8.7	%		377,484		8.4	%
Construction and land development		20,330		0.4	%		20,690		0.4	%		23,254		0.5	%
Total commercial portfolio		3,045,395		64.6	%		2,984,941		63.8	%		2,643,683		59.0	%

Retail portfolio:
Residential real estate lending		1,292,013		27.4	%		1,303,856		27.9	%		1,404,624		31.4	%
Consumer solar		345,604		7.3	%		356,601		7.6	%		385,567		8.6	%
Consumer and other		31,332		0.7	%		32,108		0.7	%		37,965		1.0	%
Total retail portfolio		1,668,949		35.4	%		1,692,565		36.2	%		1,828,156		41.0	%
Total loans held for investment		4,714,344		100.0	%		4,677,506		100.0	%		4,471,839		100.0	%

Allowance for credit losses		(58,998	)				(57,676	)				(63,444	)
Loans receivable, net	$	4,655,346				$	4,619,830				$	4,408,395

PACE assessments:
Available for sale, at fair value
Residential PACE assessments		178,247		14.7	%		161,147		13.4	%		112,923		9.7	%

Held-to-maturity, at amortized cost
Commercial PACE assessments		278,006		22.9	%		271,200		22.6	%		256,663		22.0	%
Residential PACE assessments		759,871		62.4	%		767,507		64.0	%		798,561		68.4	%
Total Held-to-maturity PACE assessments		1,037,877		85.3	%		1,038,707		86.6	%		1,055,224		90.4	%
Total PACE assessments		1,216,124		100.0	%		1,199,854		100.0	%		1,168,147		100.0	%

Allowance for credit losses		(657	)				(654	)				(655	)
Total PACE assessments, net	$	1,215,467				$	1,199,200				$	1,167,492

Loans receivable, net and total PACE assessments, net as a % of Deposits		75.9	%				78.5	%				74.9	%
Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs		75.9	%				78.5	%				76.4	%

Net Interest Income Analysis

	Three Months Ended
	June 30, 2025						March 31, 2025						June 30, 2024
(In thousands)	Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate

Interest-earning assets:
Interest-bearing deposits in banks	$	161,965	$	1,639	4.06	%	$	121,321	$	1,194	3.99	%	$	213,725	$	2,690	5.06	%
Securities⁽¹⁾		3,361,812		42,850	5.11	%		3,220,590		40,867	5.15	%		3,308,881		42,937	5.22	%
Resell agreements		52,621		887	6.76	%		30,169		786	10.57	%		122,618		2,041	6.69	%
Loans receivable, net ⁽²⁾		4,659,667		58,723	5.05	%		4,695,264		57,843	5.00	%		4,406,843		51,293	4.68	%
Total interest-earning assets		8,236,065		104,099	5.07	%		8,067,344		100,690	5.06	%		8,052,067		98,961	4.94	%
Non-interest-earning assets:
Cash and due from banks		5,622						5,045						6,371
Other assets		203,992						220,589						217,578
Total assets	$	8,445,679					$	8,292,978					$	8,276,016

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,457,620	$	28,653	2.58	%	$	4,242,786	$	26,806	2.56	%	$	3,729,858	$	24,992	2.69	%
Time deposits		218,835		1,940	3.56	%		232,683		2,111	3.68	%		210,565		1,898	3.63	%
Brokered CDs		—		—	0.00	%		—		—	0.00	%		156,086		1,992	5.13	%
Total interest-bearing deposits		4,676,455		30,593	2.62	%		4,475,469		28,917	2.62	%		4,096,509		28,882	2.84	%
Borrowings		75,741		597	3.16	%		134,340		1,196	3.61	%		104,560		887	3.41	%
Total interest-bearing liabilities		4,752,196		31,190	2.63	%		4,609,809		30,113	2.65	%		4,201,069		29,769	2.85	%
Non-interest-bearing liabilities:
Demand and transaction deposits		2,895,845						2,901,061						3,390,941
Other liabilities		56,203						59,728						60,982
Total liabilities		7,704,244						7,570,598						7,652,992
Stockholders’ equity		741,435						722,380						623,024
Total liabilities and stockholders’ equity	$	8,445,679					$	8,292,978					$	8,276,016

Net interest income / interest rate spread			$	72,909	2.44	%			$	70,577	2.41	%			$	69,192	2.09	%
Net interest-earning assets / net interest margin	$	3,483,869			3.55	%	$	3,457,535			3.55	%	$	3,850,998			3.46	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,572,300			1.62	%	$	7,376,530			1.59	%	$	7,331,364			1.48	%
Total deposits / total cost of deposits	$	7,572,300			1.62	%	$	7,376,530			1.59	%	$	7,487,450			1.55	%
Total funding / total cost of funds	$	7,648,041			1.64	%	$	7,510,870			1.63	%	$	7,592,010			1.58	%

(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in 2Q2025, 1Q2025, or 2Q2024 of $200,076, $0, and $0, respectively (in thousands).

Net Interest Income Analysis

	Six Months Ended
	June 30, 2025						June 30, 2024
(In thousands)	Average Balance		Income / Expense		Yield / Rate		Average Balance		Income / Expense		Yield / Rate

Interest-earning assets:
Interest-bearing deposits in banks	$	141,756	$	2,833	4.03	%	$	209,547	$	5,282	5.07	%
Securities		3,291,591		83,717	5.13	%		3,239,619		84,000	5.21	%
Resell agreements		41,457		1,673	8.14	%		100,814		3,368	6.72	%
Total loans, net ⁽¹⁾⁽²⁾		4,677,367		116,566	5.03	%		4,398,665		103,245	4.72	%
Total interest-earning assets		8,152,171		204,789	5.07	%		7,948,645		195,895	4.96	%
Non-interest-earning assets:
Cash and due from banks		5,335						5,720
Other assets		212,245						221,924
Total assets	$	8,369,751					$	8,176,289

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,350,797	$	55,459	2.57	%	$	3,660,704	$	46,864	2.57	%
Time deposits		225,721		4,051	3.62	%		199,305		3,474	3.51	%
Brokered CDs		—		—	0.00	%		173,163		4,435	5.15	%
Total interest-bearing deposits		4,576,518		59,510	2.62	%		4,033,172		54,773	2.73	%
Borrowings		104,879		1,793	3.45	%		196,326		3,893	3.99	%
Total interest-bearing liabilities		4,681,397		61,303	2.64	%		4,229,498		58,666	2.79	%
Non-interest-bearing liabilities:
Demand and transaction deposits		2,898,439						3,264,590
Other liabilities		57,955						70,309
Total liabilities		7,637,791						7,564,397
Stockholders’ equity		731,960						611,892
Total liabilities and stockholders’ equity	$	8,369,751					$	8,176,289

Net interest income / interest rate spread			$	143,486	2.43	%			$	137,229	2.17	%
Net interest-earning assets / net interest margin	$	3,470,774			3.55	%	$	3,719,147			3.47	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,474,957			1.61	%	$	7,124,599			1.42	%
Total deposits / total cost of deposits	$	7,474,957			1.61	%	$	7,297,762			1.51	%
Total funding / total cost of funds	$	7,579,836			1.63	%	$	7,494,088			1.57	%

(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in June YTD 2025 and June YTD 2024 of $200 thousand and $18 thousand, respectively.

Deposit Portfolio Composition

	Three Months Ended
(In thousands)	June 30, 2025				March 31, 2025				June 30, 2024
	Ending Balance		Average Balance		Ending Balance		Average Balance		Ending Balance		Average Balance
Non-interest-bearing demand deposit accounts	$	2,810,489	$	2,895,845	$	2,895,757	$	2,901,061	$	3,445,068	$	3,390,941
NOW accounts		177,494		177,312		187,078		177,827		192,452		191,253
Money market deposit accounts		4,216,318		3,950,346		3,772,423		3,739,548		3,093,644		3,202,365
Savings accounts		330,892		329,962		330,410		325,411		336,943		336,240
Time deposits		198,079		218,835		226,404		232,683		227,437		210,565
Brokered certificates of deposit (“CDs”)		—		—		—		—		153,444		156,086
Total deposits	$	7,733,272	$	7,572,300	$	7,412,072	$	7,376,530	$	7,448,988	$	7,487,450

Total deposits excluding Brokered CDs	$	7,733,272	$	7,572,300	$	7,412,072	$	7,376,530	$	7,295,544	$	7,331,364

	Three Months Ended
	June 30, 2025				March 31, 2025				June 30, 2024
(In thousands)	Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds

Non-interest bearing demand deposit accounts	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
NOW accounts	0.68	%	0.72	%	0.72	%	0.70	%	1.07	%	1.07	%
Money market deposit accounts	2.70	%	2.77	%	2.73	%	2.76	%	3.08	%	2.93	%
Savings accounts	1.32	%	1.30	%	1.28	%	1.28	%	1.67	%	1.37	%
Time deposits	3.22	%	3.56	%	3.52	%	3.68	%	3.50	%	3.63	%
Brokered CDs	—	%	—	%	—	%	—	%	4.98	%	5.13	%
Total deposits	1.63	%	1.62	%	1.57	%	1.59	%	1.59	%	1.55	%

Interest-bearing deposits excluding Brokered CDs	2.56	%	2.62	%	2.58	%	2.62	%	2.88	%	2.74	%

(1) Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown.

Asset Quality

(In thousands)	June 30, 2025		March 31, 2025		June 30, 2024
Loans 90 days past due and accruing	$	—	$	—	$	—
Nonaccrual loans held for sale		459		989		989
Nonaccrual loans – Commercial		27,501		27,872		23,778
Nonaccrual loans – Retail		7,199		5,072		10,924
Nonaccrual securities		6		7		29
Total nonperforming assets	$	35,165	$	33,940	$	35,720

Nonaccrual loans:
Commercial and industrial	$	12,501	$	12,786	$	8,428
Commercial real estate		3,893		3,979		4,231
Construction and land development		11,107		11,107		11,119
Total commercial portfolio		27,501		27,872		23,778

Residential real estate lending		3,805		1,375		7,756
Consumer solar		3,193		3,479		2,794
Consumer and other		201		218		374
Total retail portfolio		7,199		5,072		10,924
Total nonaccrual loans	$	34,700	$	32,944	$	34,702

Credit Quality

	June 30, 2025		March 31, 2025		June 30, 2024
($ in thousands)
Criticized and classified loans
Commercial and industrial	$	64,305	$	55,157	$	53,940
Multifamily		11,324		8,540		10,242
Commercial real estate		3,893		3,979		8,311
Construction and land development		11,107		11,107		11,119
Residential real estate lending		3,805		1,375		7,756
Consumer solar		3,193		3,479		2,794
Consumer and other		201		218		374
Total loans	$	97,828	$	83,855	$	94,536

Criticized and classified loans to total loans
Commercial and industrial	1.36	%	1.18	%	1.21	%
Multifamily	0.24	%	0.18	%	0.23	%
Commercial real estate	0.08	%	0.09	%	0.19	%
Construction and land development	0.24	%	0.24	%	0.25	%
Residential real estate lending	0.08	%	0.03	%	0.17	%
Consumer solar	0.07	%	0.07	%	0.06	%
Consumer and other	—	%	—	%	0.01	%
Total loans	2.07	%	1.79	%	2.12	%

	June 30, 2025				March 31, 2025				June 30, 2024
	Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance
Commercial and industrial	0.32	%	1.42	%	0.28	%	1.29	%	0.32	%	1.44	%
Multifamily	—	%	0.20	%	—	%	0.23	%	—	%	0.38	%
Commercial real estate	—	%	0.49	%	—	%	0.39	%	—	%	0.40	%
Construction and land development	—	%	6.33	%	—	%	6.05	%	—	%	3.60	%
Residential real estate lending	(0.01	)%	0.69	%	—	%	0.73	%	(0.18	)%	0.88	%
Consumer solar	2.91	%	7.26	%	1.90	%	7.01	%	2.57	%	7.00	%
Consumer and other	0.07	%	5.74	%	0.70	%	5.67	%	0.01	%	6.49	%
Total loans	0.30	%	1.25	%	0.22	%	1.23	%	0.25	%	1.42	%

Reconciliation of GAAP to Non-GAAP Financial Measures
The information provided below presents a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

	As of and for the Three Months Ended									As of and for the Six Months Ended
(in thousands)	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Core operating revenue
Net Interest Income (GAAP)	$	72,909		$	70,577		$	69,192		$	143,486		$	137,229
Non-interest income (GAAP)		8,025			6,406			9,258			14,430			19,487
Add: Loss on Sale of Securities and Other Assets		1,041			680			2,691			1,721			5,465
Less: ICS One-Way Sell Fee Income⁽¹⁾		(102	)		(9	)		(4,859	)		(111	)		(7,762	)
Less: Changes in fair value of loans held-for-sale⁽⁶⁾		—			(837	)		—			(837	)		—
Less: Subdebt repurchase gain⁽²⁾		—			—			(406	)		—			(406	)
Add: Tax (credits) depreciation on solar investments⁽³⁾		310			2,868			1,815			3,179			7
Core operating revenue (non-GAAP)	$	82,183		$	79,685		$	77,691			161,868			154,020

Core non-interest expense
Non-interest expense (GAAP)	$	40,584		$	41,650		$	39,512		$	82,234		$	77,664
Add: Gain on settlement of lease termination⁽⁴⁾		—			—			—			—			499
Less: Severance costs⁽⁵⁾		(142	)		(125	)		(44	)		(267	)		(228	)
Core non-interest expense (non-GAAP)	$	40,442		$	41,525		$	39,468			81,967			77,935

Core net income
Net Income (GAAP)	$	25,989		$	25,028		$	26,753		$	51,017		$	54,002
Add: Loss on Sale of Securities and Other Assets		1,041			680			2,691			1,721			5,465
Less: ICS One-Way Sell Fee Income⁽¹⁾		(102	)		(9	)		(4,859	)		(111	)		(7,762	)
Less: Changes in fair value of loans held-for-sale⁽⁶⁾		—			(837	)		—			(837	)		—
Less: Gain on settlement of lease termination⁽⁴⁾		—			—			—			—			(499	)
Less: Subdebt repurchase gain⁽²⁾		—			—			(406	)		—			(406	)
Add: Severance costs⁽⁵⁾		142			125			44			267			228
Add: Tax (credits) depreciation on solar investments⁽³⁾		310			2,868			1,815			3,179			7
Less: Tax on notable items		(371	)		(731	)		180			(1,109	)		775
Core net income (non-GAAP)	$	27,009		$	27,124		$	26,218			54,127			51,810

Tangible common equity
Stockholders’ equity (GAAP)	$	753,984		$	735,996		$	646,112		$	753,984		$	646,112
Less: Minority interest		—			—			(133	)		—			(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,200	)		(1,343	)		(1,852	)		(1,200	)		(1,852	)
Tangible common equity (non-GAAP)	$	739,848		$	721,717		$	631,191			739,848			631,191

Average tangible common equity
Average stockholders’ equity (GAAP)	$	741,435		$	722,380		$	623,024		$	731,960		$	611,892
Less: Minority interest		—			—			(133	)		—			(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,270	)		(1,413	)		(1,941	)		(1,341	)		(2,032	)
Average tangible common equity (non-GAAP)	$	727,229		$	708,031		$	608,014			717,683			596,791

(1) Included in service charges on deposit accounts in the Consolidated Statements of Income.
(2) Included in other income in the Consolidated Statements of Income.
(3) Included in equity method investments income in the Consolidated Statements of Income.
(4) Included in occupancy and depreciation in the Consolidated Statements of Income.
(5) Included in compensation and employee benefits in the Consolidated Statements of Income.
(6) Included in changes in fair value of loans held-for-sale in the Consolidated Statements of Income.

The MIL Network –

July 24, 2025

MIL-OSI: Donegal Group Inc. Announces Second Quarter and First Half 2025 Results

Source: GlobeNewswire (MIL-OSI)

MARIETTA, Pa., July 24, 2025 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the second quarter and first half of 2025.

Significant Items for Second Quarter of 2025 (all comparisons to second quarter of 2024):

Net premiums earned decreased 1.1% to $231.8 million
Combined ratio of 97.7%, compared to 103.0%
Net income of $16.9 million, or 46 cents per diluted Class A share, compared to $4.2 million, or 13 cents per diluted Class A share
Net investment gains (after tax) of $1.2 million, or 3 cents per diluted Class A share, compared to $0.6 million, or 2 cents per diluted Class A share, are included in net income
Annualized return on average equity of 11.3%, compared to 3.4%
Book value per share of $16.62 at June 30, 2025, compared to $14.48 at June 30, 2024

Financial Summary

	Three Months Ended June 30,									Six Months Ended June 30,
		2025			2024		% Change				2025			2024		% Change
	(dollars in thousands, except per share amounts)

Income Statement Data
Net premiums earned	$	231,775		$	234,311			-1.1	%	$	464,476		$	462,060			0.5	%
Investment income, net		12,540			11,068			13.3			24,524			22,041			11.3
Net investment gains		1,544			737			109.5			1,073			2,850			-62.4
Total revenues		247,148			246,773			0.2			491,953			487,913			0.8
Net income		16,866			4,153			306.1			42,071			10,108			316.2
Non-GAAP operating income¹		15,647			3,571			338.2			41,224			7,857			424.7
Annualized return on average equity		11.3	%		3.4	%	7.9 pts				14.6	%		4.2	%	10.4 pts

Per Share Data
Net income – Class A (diluted)	$	0.46		$	0.13			253.8	%	$	1.17		$	0.31			277.4	%
Net income – Class B		0.43			0.11			290.9			1.08			0.28			285.7
Non-GAAP operating income – Class A (diluted)		0.43			0.11			290.9			1.14			0.24			375.0
Non-GAAP operating income – Class B		0.40			0.10			300.0			1.06			0.22			381.8
Book value		16.62			14.48			14.8			16.62			14.48			14.8

¹The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

Management Commentary

Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc., stated, “We are pleased with the progress we have made and the results we delivered for both the second quarter and first half of 2025, which we believe reflect the strength of our strategic execution and underwriting discipline. A meaningful improvement in our core loss ratio for both periods underscores our commitment to disciplined risk management and sustainable profitability. As expected, net premiums written¹ declined this quarter, as lower new business writings and planned attrition modestly outpaced ongoing premium rate increases and solid retention levels. As a proactive measure, we intentionally slowed new business writings in our personal lines of business to protect underwriting margins and ensure we remain focused on profitable growth opportunities. We continue to identify and pursue profitable new business opportunities in states and classes that match our objectives.

“We reached a significant milestone in our multi-year systems modernization project with the successful deployment of our final major commercial lines systems release. During the second half of 2025, we will begin to roll out this enhanced platform on a state-by-state basis, enabling us to more effectively target and win key middle market accounts. When the rollout is completed in the first half of 2026, we will be operating on a single modern technology platform for all of our middle market and small business commercial product offerings.

“As we look ahead, we remain focused on disciplined execution, organizational alignment and operational excellence to further strengthen our long-term competitive position and enhance value for our stockholders.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

	Three Months Ended June 30,							Six Months Ended June 30,
		2025		2024	% Change				2025		2024	% Change
	(dollars in thousands)

Net Premiums Earned
Commercial lines	$	138,527	$	134,489		3.0	%	$	274,743	$	266,581		3.1	%
Personal lines		93,248		99,822		-6.6			189,733		195,479		-2.9
Total net premiums earned	$	231,775	$	234,311		-1.1	%	$	464,476	$	462,060		0.5	%

Net Premiums Written
Commercial lines:
Automobile	$	50,584	$	47,089		7.4	%	$	107,109	$	100,603		6.5	%
Workers’ compensation		24,243		27,591		-12.1			52,997		58,665		-9.7
Commercial multi-peril		56,478		55,870		1.1			117,268		113,373		3.4
Other		13,609		11,698		16.3			28,158		25,101		12.2
Total commercial lines		144,914		142,248		1.9			305,532		297,742		2.6
Personal lines:
Automobile		52,741		62,427		-15.5			107,933		123,808		-12.8
Homeowners		33,590		39,608		-15.2			62,378		71,367		-12.6
Other		2,568		2,906		-11.6			5,062		5,714		-11.4
Total personal lines		88,899		104,941		-15.3			175,373		200,889		-12.7
Total net premiums written	$	233,813	$	247,189		-5.4	%	$	480,905	$	498,631		-3.6	%

Net Premiums Written

The 5.4% decrease in net premiums written for the second quarter of 2025 compared to the second quarter of 2024, as shown in the table above, represents the net combination of a 1.9% increase in commercial lines net premiums written and a 15.3% decrease in personal lines net premiums written. The $13.3 million decrease in net premiums written for the second quarter of 2025 compared to the second quarter of 2024 included:

Commercial Lines: $2.7 million increase that we attribute primarily to solid retention and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by lower new business writings.
Personal Lines: $16.0 million decrease that we attribute primarily to planned attrition due to lower new business writings and non-renewal actions, offset partially by a continuation of renewal premium rate increases and solid retention.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three and six months ended June 30, 2025 and 2024:

	Three Months Ended					Six Months Ended
	June 30					June 30
		2025		2024			2025		2024

GAAP Combined Ratios (Total Lines)
Loss ratio – core losses		50.1	%	55.0	%		52.1	%	56.8	%
Loss ratio – weather-related losses		11.1		10.6			7.4		7.7
Loss ratio – large fire losses		5.2		5.3			4.3		5.9
Loss ratio – net prior-year reserve development		-1.3		-0.3			-2.9		-2.0
Loss ratio		65.1		70.6			60.9		68.4
Expense ratio		32.2		31.9			33.4		33.8
Dividend ratio		0.4		0.5			0.3		0.5
Combined ratio		97.7	%	103.0	%		94.6	%	102.7	%

Statutory Combined Ratios
Commercial lines:
Automobile		97.7	%	93.5	%		94.6	%	96.6	%
Workers’ compensation		104.9		117.0			111.3		114.2
Commercial multi-peril		97.5		110.6			93.9		106.7
Other		119.8		94.3			100.6		88.3
Total commercial lines		101.0		104.9			97.8		103.3
Personal lines:
Automobile		79.3		95.6			82.2		97.7
Homeowners		115.1		103.1			99.0		102.7
Other		55.2		104.7			55.9		94.8
Total personal lines		91.7		98.6			87.5		99.4
Total lines		97.4	%	102.2	%		93.9	%	101.7	%

Loss Ratio

For the second quarter of 2025, the loss ratio decreased to 65.1%, compared to 70.6% for the second quarter of 2024. For the commercial lines segment, the core loss ratio, which excludes weather-related losses, large fire losses and net development of reserves for losses incurred in prior accident years, of 54.5% for the second quarter of 2025 decreased modestly from 54.8% for the second quarter of 2024. For the personal lines segment, the core loss ratio of 43.3% for the second quarter of 2025 decreased from 55.3% for the second quarter of 2024, due largely to the favorable impact of premium rate increases on net premiums earned for that segment.

Weather-related losses were $25.8 million, or 11.1 percentage points of the loss ratio, for the second quarter of 2025, compared to $24.7 million, or 10.6 percentage points of the loss ratio, for the second quarter of 2024. Weather-related loss activity for the second quarter of 2025 was higher than our previous five-year average of $18.9 million, or 9.2 percentage points of the loss ratio, for second-quarter weather-related losses. Atlantic States Insurance Company, our largest insurance subsidiary, incurred $3.0 million in net losses from a catastrophic wind and hail loss event in April 2025, with Donegal Mutual assuming losses that subsidiary incurred from the event in excess of its retention under an intercompany catastrophe reinsurance agreement.

Large fire losses, which we define as individual fire losses in excess of $50,000, for the second quarter of 2025 were $12.1 million, or 5.2 percentage points of the loss ratio. That amount was comparable to the large fire losses of $12.5 million, or 5.3 percentage points of the loss ratio, for the second quarter of 2024. We experienced a modest decrease in commercial property fire losses that was partially offset by a modest increase in homeowners fire losses compared to the prior-year quarter.

Net favorable development of reserves for losses incurred in prior accident years reduced the loss ratio by 1.3 percentage points for the second quarter of 2025 and had virtually no impact for the second quarter of 2024. Our insurance subsidiaries experienced favorable development primarily in the personal automobile and homeowners lines of business, partially offset by adverse development in other commercial lines that we primarily attribute to higher-than-anticipated case reserve development.

Expense Ratio

The expense ratio was 32.2% for the second quarter of 2025, compared to 31.9% for the second quarter of 2024. The increase in the expense ratio primarily reflected higher underwriting-based incentive costs for agents and employees, partially offset by the favorable impact of ongoing expense management initiatives. The impact from costs that Donegal Mutual Insurance Company allocated to our insurance subsidiaries related to its ongoing systems modernization project peaked at approximately 1.3 percentage points of the full year 2024 expense ratio, and we expect that impact to subside gradually over the next several years. Allocated costs related to that project represented approximately 1.0 percentage point of the expense ratio for the second quarter of 2025, and we expect the full year 2025 expense ratio impact will also be approximately 1.0 percentage point.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 95.4% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at June 30, 2025.

	June 30, 2025						December 31, 2024
	Amount			%			Amount			%
	(dollars in thousands)
Fixed maturities, at carrying value:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies	$	145,585			10.2	%	$	170,423			12.3	%
Obligations of states and political subdivisions		424,010			29.7			409,560			29.6
Corporate securities		441,603			30.9			440,552			31.8
Mortgage-backed securities		353,639			24.7			304,459			22.0
Allowance for expected credit losses		(1,374	)		-0.1			(1,388	)		-0.1
Total fixed maturities		1,363,463			95.4			1,323,606			95.6
Equity securities, at fair value		41,007			2.9			36,808			2.6
Short-term investments, at cost		24,764			1.7			24,558			1.8
Total investments	$	1,429,234			100.0	%	$	1,384,972			100.0	%

Average investment yield		3.5	%					3.3	%
Average tax-equivalent investment yield		3.6	%					3.4	%
Average fixed-maturity duration (years)		5.2						5.2

Net investment income of $12.5 million for the second quarter of 2025 increased 13.3% compared to $11.1 million for the second quarter of 2024. The increase in net investment income primarily reflected an increase in average investment yield relative to the prior-year second quarter.

Net investment gains of $1.5 million for the second quarter of 2025 were primarily related to unrealized gains in the fair value of equity securities held at June 30, 2025, offset partially by net realized investment losses on the sale of available-for-sale fixed-maturity securities. Net investment gains of $0.7 million for the second quarter of 2024 were primarily related to unrealized gains in the fair value of equity securities held at June 30, 2024.

Our book value per share was $16.62 at June 30, 2025, compared to $15.36 at December 31, 2024, with the increase related to net income as well as $10.7 million of after-tax unrealized gains within our available-for-sale fixed-maturity portfolio during 2025 that increased our book value by $0.31 per share, offset partially by cash dividends declared.

Definitions of Non-GAAP Financial Measures

We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:

	Three Months Ended June 30,							Six Months Ended June 30,
		2025		2024	% Change				2025		2024	% Change
	(dollars in thousands)

Reconciliation of Net Premiums
Earned to Net Premiums Written
Net premiums earned	$	231,775	$	234,311		-1.1	%	$	464,476	$	462,060		0.5	%
Change in net unearned premiums		2,038		12,878		-84.2			16,429		36,571		-55.1
Net premiums written	$	233,813	$	247,189		-5.4	%	$	480,905	$	498,631		-3.6	%

The following table provides a reconciliation of net income to operating income for the periods indicated:

	Three Months Ended June 30,									Six Months Ended June 30,
		2025			2024		% Change				2025			2024		% Change
	(dollars in thousands, except per share amounts)

Reconciliation of Net Income
to Non-GAAP Operating Income
Net income	$	16,866		$	4,153			306.1	%	$	42,071		$	10,108			316.2	%
Investment gains (after tax)		(1,219	)		(582	)		109.5			(847	)		(2,251	)		-62.4
Non-GAAP operating income	$	15,647		$	3,571			338.2	%	$	41,224		$	7,857			424.7	%

Per Share Reconciliation of Net Income
to Non-GAAP Operating Income
Net income – Class A (diluted)	$	0.46		$	0.13			253.8	%	$	1.17		$	0.31			277.4	%
Investment gains (after tax)		(0.03	)		(0.02	)		50.0			(0.03	)		(0.07	)		-57.1
Non-GAAP operating income – Class A	$	0.43		$	0.11			290.9	%	$	1.14		$	0.24			375.0	%

Net income – Class B	$	0.43		$	0.11			290.9	%	$	1.08		$	0.28			285.7	%
Investment gains (after tax)		(0.03	)		(0.01	)		200.0			(0.02	)		(0.06	)		-66.7
Non-GAAP operating income – Class B	$	0.40		$	0.10			300.0	%	$	1.06		$	0.22			381.8	%

The statutory combined ratio is a non-GAAP standard measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
- the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Dividend Information

On July 17, 2025, we declared a regular quarterly cash dividend of $0.1825 per share for our Class A common stock and $0.165 per share for our Class B common stock, which are payable on August 15, 2025 to stockholders of record as of the close of business on August 1, 2025.

Pre-Recorded Webcast

At approximately 8:30 am ET on Thursday, July 24, 2025, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

About the Company

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and providing superior experiences to our agents, policyholders and employees.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs, including due to tariffs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments, changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Investor Relations Contacts

Karin Daly, Vice President, The Equity Group Inc.

Phone: (212) 836-9623
E-mail: kdaly@theequitygroup.com

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Financial Supplement

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

	Quarter Ended June 30,
		2025			2024

Net premiums earned	$	231,775		$	234,311
Investment income, net of expenses		12,540			11,068
Net investment gains		1,544			737
Lease income		76			78
Installment payment fees		844			579
Other income, net		369			–
Total revenues		247,148			246,773

Net losses and loss expenses		150,917			165,360
Amortization of deferred acquisition costs		39,501			40,656
Other underwriting expenses		35,150			34,037
Policyholder dividends		819			1,187
Interest		337			155
Other expenses, net		–			365
Total expenses		226,724			241,760

Income before income tax expense		20,424			5,013
Income tax expense		3,558			860

Net income	$	16,866		$	4,153

Net income per common share:
Class A – basic	$	0.47		$	0.13
Class A – diluted	$	0.46		$	0.13
Class B – basic and diluted	$	0.43		$	0.11

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic		30,678,158			27,844,811
Class A – diluted		31,336,862			27,844,903
Class B – basic and diluted		5,576,775			5,576,775

Net premiums written	$	233,813		$	247,189

Book value per common share
at end of period	$	16.62		$	14.48

Annualized operating return on average equity		11.3	%		3.4	%

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

	Six Months Ended June 30,
		2025			2024

Net premiums earned	$	464,476		$	462,060
Investment income, net of expenses		24,524			22,041
Net investment gains		1,073			2,850
Lease income		153			159
Installment payment fees		1,727			803
Total revenues		491,953			487,913

Net losses and loss expenses		282,950			316,257
Amortization of deferred acquisition costs		78,732			80,258
Other underwriting expenses		76,345			75,777
Policyholder dividends		1,578			2,241
Interest		670			309
Other expenses, net		93			810
Total expenses		440,368			475,652

Income before income tax expense		51,585			12,261
Income tax expense		9,514			2,153

Net income	$	42,071		$	10,108

Net income per common share:
Class A – basic	$	1.19		$	0.31
Class A – diluted	$	1.17		$	0.31
Class B – basic and diluted	$	1.08		$	0.28

Supplementary Financial Analysts’ Data

Weighted-average number of shares
outstanding:
Class A – basic		30,400,944			27,828,062
Class A – diluted		30,884,992			27,845,608
Class B – basic and diluted		5,576,775			5,576,775

Net premiums written	$	480,905		$	498,631

Book value per common share
at end of period	$	16.62		$	14.48

Annualized operating return on average equity		14.6	%		4.2	%

Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)

	June 30,			December 31,
		2025			2024
	(unaudited)

ASSETS
Investments:
Fixed maturities:
Held to maturity, at amortized cost	$	737,356		$	705,714
Available for sale, at fair value		626,107			617,892
Equity securities, at fair value		41,007			36,808
Short-term investments, at cost		24,764			24,558
Total investments		1,429,234			1,384,972
		57,437			52,926
Premiums receivable		198,885			181,107
Reinsurance receivable		411,125			420,742
Deferred policy acquisition costs		76,620			73,347
Prepaid reinsurance premiums		182,795			176,162
Other assets		51,739			46,776
Total assets	$	2,407,835		$	2,336,032

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Losses and loss expenses	$	1,117,010		$	1,120,985
Unearned premiums		635,538			612,476
Borrowings under lines of credit		35,000			35,000
Other liabilities		14,618			21,795
Total liabilities		1,802,166			1,790,256
Stockholders’ equity:
Class A common stock		339			329
Class B common stock		56			56
Additional paid-in capital		383,546			369,680
Accumulated other comprehensive loss		(17,517	)		(28,200	)
Retained earnings		280,471			245,137
Treasury stock		(41,226	)		(41,226	)
Total stockholders’ equity		605,669			545,776
Total liabilities and stockholders’ equity	$	2,407,835		$	2,336,032

The MIL Network –

July 24, 2025

MIL-OSI USA: NASA Launches Mission to Study Earth’s Magnetic Shield

Source: NASA

NASA’s newest mission, TRACERS, soon will begin studying how Earth’s magnetic shield protects our planet from the effects of space weather. Short for Tandem Reconnection and Cusp Electrodynamics Reconnaissance Satellites, the twin TRACERS spacecraft lifted off at 11:13 a.m. PDT (2:13 p.m. EDT) Wednesday aboard a SpaceX Falcon 9 rocket from Space Launch Complex 4 East at Vandenberg Space Force Base in California.
“NASA is proud to launch TRACERS to demonstrate and expand American preeminence in space science research and technology,” said acting NASA Administrator Sean Duffy. “The TRACERS satellites will move us forward in decoding space weather and further our understanding of the connection between Earth and the Sun. This mission will yield breakthroughs that will advance our pursuit of the Moon, and subsequently, Mars.”
The twin satellites will fly one behind the other – following as closely as 10 seconds apart over the same location – and will take a record-breaking 3,000 measurements in one year to build a step-by-step picture of how magnetic reconnection changes over time.
Riding along with TRACERS aboard the Falcon 9 were NASA’s Athena EPIC (Economical Payload Integration Cost), PExT (Polylingual Experimental Terminal), and REAL (Relativistic Electron Atmospheric Loss) missions – three small satellites to demonstrate new technologies and gather scientific data. These three missions were successfully deployed, and mission controllers will work to contact them over the coming hours and days.
Ground controllers for the TRACERS mission established communications with the second of the two spacecraft at 3:43 p.m. PDT (6:43 p.m. EDT), about 3 hours after it separated from the rocket. During the next four weeks, TRACERS will undergo a commissioning period during which mission controllers will check out their instruments and systems.
Once cleared, the twin satellites will begin their 12-month prime mission to study a process called magnetic reconnection, answering key questions about how it shapes the impacts of the Sun and space weather on our daily lives.
“NASA’s heliophysics fleet helps to safeguard humanity’s home in space and understand the influence of our closest star, the Sun,” said Joe Westlake, heliophysics division director at NASA Headquarters in Washington. “By adding TRACERS to that fleet, we will gain a better understanding of those impacts right here at Earth.”
The two TRACERS spacecraft will orbit through an open region in Earth’s magnetic field near the North Pole, called the polar cusp. Here, TRACERS will investigate explosive magnetic events that happen when the Sun’s magnetic field – carried through space in a stream of solar material called the solar wind – collides with Earth’s magnetic field. This collision creates a buildup of energy that causes magnetic reconnection, when magnetic field lines snap and explosively realign, flinging away nearby particles at high speeds.
Flying through the polar cusp allows the TRACERS satellites to study the results of these magnetic explosions, measuring charged particles that race down into Earth’s atmosphere and collide with atmospheric gases – giving scientist the tools to reconstruct exactly how changes in the incoming solar wind affect how, and how quickly, energy and particles are coupled into near-Earth space.
“The successful launch of TRACERS is a tribute to many years of work by an excellent team,” said David Miles, TRACERS principal investigator at the University of Iowa. “TRACERS is set to transform our understanding of Earth’s magnetosphere. We’re excited to explore the dynamic processes driving space weather.”
Small Satellites Along for Ride
Athena EPIC is a pathfinder mission that will demonstrate NASA’s use of an innovative and configurable commercial SmallSat architecture to improve flexibility of payload designs, reduce launch schedule, and reduce overall costs in future missions, as well as the benefits of working collaboratively with federal partners. In addition to this demonstration for NASA, once the Athena EPIC satellite completes its two-week commissioning period, the mission will spend the next 12 months taking measurements of outgoing longwave radiation from Earth.
The PExT demonstration will test interoperability between commercial and government communication networks for the first time by demonstrating a wideband polylingual terminal in low Earth orbit. This terminal will use software-defined radios to jump between government and commercial networks, similar to cell phones roaming between providers on Earth. These terminals could allow future missions to switch seamlessly between networks and access new commercial services throughout its lifecycle in space.
The REAL mission is a CubeSat that will investigate how energetic electrons are scattered out of the Van Allen radiation belts and into Earth’s atmosphere. Shaped like concentric rings high above Earth’s equator, the Van Allen belts are composed of a mix of high-energy electrons and protons that are trapped in place by Earth’s magnetic field. Studying electrons and their interactions, REAL aims to improve our understanding of these energetic particles that can damage spacecraft and imperil astronauts who pass through them.
The TRACERS mission is led by David Miles at the University of Iowa with support from the Southwest Research Institute in San Antonio, Texas. NASA’s Heliophysics Explorers Program Office at the agency’s Goddard Space Flight Center in Greenbelt, Maryland, manages the mission for the Heliophysics Division at NASA Headquarters in Washington. The University of Iowa, Southwest Research Institute, University of California, Los Angeles, and the University of California, Berkeley, all lead instruments on TRACERS.
The Athena EPIC mission is led by NASA’s Langley Research Center in Hampton, Virginia, and is a partnership between National Oceanic and Atmospheric Administration, U.S. Space Force, and NovaWurks. Athena EPIC’s launch is supported by launch integrator SEOPS. The PExT demonstration is managed by NASA’s SCaN (Space Communications and Navigation) program in partnership with Johns Hopkins Applied Physics Laboratory, with launch support by York Space Systems. The REAL project is led by Dartmouth College in Hanover, New Hampshire, and is a partnership between Johns Hopkins Applied Physics Laboratory, Montana State University, and Boston University. Sponsored by NASA’s Heliophysics Division and CubeSat Launch Initiative, it was included through launch integrator Maverick Space Systems.
NASA’s Launch Services Program, based at the agency’s Kennedy Space Center in Florida, manages the VADR (Venture-class Acquisition of Dedicated and Rideshare) contract.
To learn more about TRACERS, visit:
https://nasa.gov/tracers
-end-
Abbey Interrante / Karen FoxHeadquarters, Washington301-201-0124 / 202-358-1600abbey.a.interrante@nasa.gov / karen.c.fox@nasa.gov
Sarah FrazierGoddard Space Flight Center, Greenbelt, Maryland202-853-7191sarah.frazier@nasa.gov

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: South Texas Disaster Assistance Deadline Has Passed but Help Still Available

Source: US Federal Emergency Management Agency

Headline: South Texas Disaster Assistance Deadline Has Passed but Help Still Available

South Texas Disaster Assistance Deadline Has Passed but Help Still Available

AUSTIN, Texas – The July 22 deadline to apply for FEMA disaster assistance has passed, but help is still available for those who sustained loss from the March 26-28 severe storms and floods in South Texas

Applicants should stay in touch with FEMA to ensure the disaster assistance process stays on track

Missing or incorrect information could result in delays in receiving assistance

Update contact information, report additional home damage or a delay in insurance claims in the following ways:Visit DisasterAssistance

govUse the FEMA mobile appCall the FEMA Helpline at 800-621-3362

Lines are open from 6 a

m

to 10 p

m

CT daily

If you use a relay service, captioned telephone or other service, you can give FEMA your number for that service

Helpline specialists speak many languages

Press 2 for Spanish

Visit any Disaster Recovery Center to receive in-person assistance

No appointment is needed

Recovery centers are open in Cameron, Hidalgo, Starr and Willacy counties

To find one close to you, use your ZIP code to search FEMA

gov/DRC

To view an accessible video on how to apply, visit What You Need to Know Before Applying for FEMA Assistance

For the latest information about Texas’ recovery, visit fema

gov/disaster/4871

Follow FEMA Region 6 on social media at x

com/FEMARegion6 and at facebook

com/FEMARegion6
toan

nguyen
Wed, 07/23/2025 – 19:44

MIL OSI USA News –

July 24, 2025

MIL-OSI NGOs: Iran/Israel: Iranian forces’ use of cluster munitions in ‘12 Day War’ violated international humanitarian law

Source: Amnesty International –

Unlawful ballistic missile strikes utilizing cluster munitions landed in residential areas in Israel
“Cluster munitions are inherently indiscriminate weapons that must never be used ” – Erika Guevara Rosas

The Iranian forces’ use of cluster munitions during the ‘12 Day War’ with Israel was a flagrant violation of international humanitarian law, Amnesty International said today.

Last month, the Iranian forces fired ballistic missiles whose warheads contained submunitions into populated residential areas of Israel, in attacks endangering civilians. Amnesty International analysed photos and videos showing cluster munitions that, according to media reports, struck inside the Gush Dan metropolitan area around Tel Aviv on 19 June.

In addition, the cities of Beersheba, southern Israel (20 June), and Rishon LeZion, to the south of Tel Aviv (22 June), were also struck with ordnance that left multiple impact craters consistent with the submunitions seen in Gush Dan. Such submunitions hit a school and basketball court in Beersheba, but no deaths or injuries were reported.

“Cluster munitions are inherently indiscriminate weapons that must never be used. By using such weapons in or near populated residential areas, Iranian forces endangered civilian lives and demonstrated clear disregard for international humanitarian law,” said Erika Guevara Rosas, Amnesty International’s Senior Director for Research, Advocacy, Policy and Campaigns.

“Civilians, particularly children, are most at risk of injury or death from unexploded submunitions. Iranian forces’ deliberate use of such inherently indiscriminate weapons is a blatant violation of international humanitarian law.”

Customary international humanitarian law prohibits the use of inherently indiscriminate weapons, and launching indiscriminate attacks that kill or injure civilians constitutes a war crime.

Civilians, particularly children, are most at risk of injury or death from unexploded submunitions.

Erika Guevara Rosas, Amnesty International’s Senior Director for Research, Advocacy, Policy and Campaigns

Cluster munitions are conventional ordnance designed to disperse or release small explosive submunitions. Typically, such submunitions are launched and dispersed by rockets, artillery, or air-dropped containers, scattering ordnance over a wide area, sometimes as large as a football pitch, which often remain unexploded.

According to media reports, the warheads deployed by Iranian forces against Israel dispersed their payload several kilometres above the ground, spreading their submunitions over a very large area.

Many systems have high “dud” rates, leaving large areas contaminated with unexploded ordnance which can remain lethal for years or even decades after a conflict has ended.

The Convention on Cluster Munitions, which entered into force on 1 August 2010, bans the use, production, stockpiling and transfer of cluster munitions. Amnesty International has called on all states that have not acceded to the Convention on Cluster Munitions, including Iran and Israel, to become a party to it and strictly comply with its terms.

Amnesty International sent questions regarding the use of cluster munitions to the Iranian authorities on 15 July 2025. At the time of publication, no response had yet been received.

MIL OSI NGO –

July 24, 2025

MIL-OSI NGOs: Iran/Israel: Iranian forces’ use of cluster munition in ’12 day war’ violated international humanitarian law

Source: Amnesty International –

Unlawful ballistic missile strikes utilising cluster munitions landed in residential areas in Israel

‘Cluster munitions are inherently indiscriminate weapons that must never be used’ – Erika Guevara Rosas

The Iranian forces’ use of cluster munitions during the ‘12 Day War’ with Israel was a flagrant violation of international humanitarian law, Amnesty International said today.

Last month, the Iranian forces fired ballistic missiles whose warheads contained submunitions into populated residential areas of Israel, in attacks endangering civilians. Amnesty analysed photos and videos showing cluster munitions that, according to media reports, struck inside the Gush Dan metropolitan area around Tel Aviv on 19 June.

In addition, the cities of Beersheba, southern Israel (20 June), and Rishon LeZion, to the south of Tel Aviv (22 June), were also struck with ordnance that left multiple impact craters consistent with the submunitions seen in Gush Dan. Such submunitions hit a school and basketball court in Beersheba, but no deaths or injuries were reported.

Erika Guevara Rosas, Amnesty International’s Senior Director for Research, Advocacy, Policy and Campaigns, said:

“Cluster munitions are inherently indiscriminate weapons that must never be used. By using such weapons in or near populated residential areas, Iranian forces endangered civilian lives and demonstrated clear disregard for international humanitarian law.

“Civilians, particularly children, are most at risk of injury or death from unexploded submunitions. Iranian forces’ deliberate use of such inherently indiscriminate weapons is a blatant violation of international humanitarian law.”

Customary international humanitarian law prohibits the use of inherently indiscriminate weapons, and launching indiscriminate attacks that kill or injure civilians constitutes a war crime.

Cluster munitions are conventional ordnance designed to disperse or release small explosive submunitions. Typically, such submunitions are launched and dispersed by rockets, artillery, or air-dropped containers, scattering ordnance over a wide area, sometimes as large as a football pitch, which often remain unexploded.

According to media reports, the warheads deployed by Iranian forces against Israel dispersed their payload several kilometres above the ground, spreading their submunitions over a very large area.

Many systems have high “dud” rates, leaving large areas contaminated with unexploded ordnance which can remain lethal for years or even decades after a conflict has ended.

The Convention on Cluster Munitions, which entered into force on 1 August 2010, bans the use, production, stockpiling and transfer of cluster munitions. Amnesty has called on all states that have not acceded to the Convention on Cluster Munitions, including Iran and Israel, to become a party to it and strictly comply with its terms.

Amnesty sent questions regarding the use of cluster munitions to the Iranian authorities on 15 July. At the time of publication, no response had yet been received.

Missiles fired at Israel

On 19 June, media reported that the Israeli military announced that Iranian forces had fired “a missile that contained cluster submunitions at a densely populated civilian area” in central Israel, and that approximately 20 submunitions fell over an estimated eight-kilometre radius.

Amnesty’s weapon experts were able to identify an unexploded submunition apparently found in the Gush Dan metropolitan area on 19 June. Amnesty could not independently establish where this submunition landed.

According to Haaretz, another cluster munition struck the top floor of a home in Azor shortly after 7am where a man and his son had been asleep. The father and son were woken up by sirens and managed to reach a safe room downstairs just before the submunition hit.

Amnesty’s weapons experts identified the submunitions (above) from images shared by the media, which cited Israeli military’s Home Front Command.

Furthermore, media reports of simultaneous impacts in Beersheba on 20 June seemingly indicate that cluster munitions were also used in that area. Among the several locations that were hit, Amnesty was able to verify that a submunition hit the basketball court of Gevim School in Beersheba. No deaths or injuries were reported. However, due to the high dud rate, there is the possibility that unexploded munitions not yet found could cause death or injury in the future.

Israeli media also reported a cluster munitions strike on Rishon LeZion on 22 June. Amnesty analysed photographs of a crater in a residential street, which was consistent with impact craters left by submunitions used in the attack on the Gush Dan area.

The ballistic missiles used by Iranian forces proved wildly inaccurate, and thus completely inappropriate for use near or in civilian residential areas. For example, an analysis of the October 2024 ballistic missiles strikes by Iranian forces against Israel showed that the missiles missed their intended target by an average of half-a-kilometre or more.

International humanitarian law prohibits indiscriminate attacks, including through the use of weapons which cannot be directed at a specific military objective.

Fin-stabilised submunitions

While it has not been possible to determine precisely what kind of ballistic missile was used in these three attacks, the submunitions it dispersed bear a striking resemblance to a fin-stabilised submunition that appeared to have landed in the city of Gorgan, Golestan province, in Iran on 18 September 2023, following a failed missile test. Two citizens were reportedly injured.

A picture of the submunition was published by Mashregh News, a news organisation in Iran, amid widespread reports of multiple explosions being heard and ordnance landing in and around the city. The Iranian authorities did not acknowledge testing cluster munitions; instead, Iran’s Ministry of Defence announced on 18 September 2023 that: “During a research test of offensive and drone systems conducted in a desert area, one of the systems under testing experienced a technical malfunction, veered off its intended path, and disintegrated, with parts of it falling in areas of the city of Gorgan.”

The cluster munitions used by the Iranian forces also bear external resemblance to those showcased during defence exhibitions in Tehran in 2016.

Civilians killed

During the escalation of hostilities between Israel and Iran, at least 1,100 people were killed in Iran, including at least 132 women and 45 children, according to Iran’s Foundation for Martyrs and Veterans Affairs. Amnesty is calling for Israel’s attack on Evin prison in Tehran on 23 June that killed and injured scores of civilians, including a child, to be investigated as a war crime following an in-depth investigation.

At least 29 people, including women and children, were killed as a result of Iranian attacks in Israel, according to the Israeli Health Ministry. In one of the deadliest incidents, four members of the same family – three women and one child – were killed by an Iranian missile that hit the Palestinian town of Tamra in northern Israel on 14 June.

MIL OSI NGO –

July 24, 2025

MIL-OSI United Nations: Resilience at the Core: Reframing Social Development for a Risk-Prone World

Source: UNISDR Disaster Risk Reduction

Venue

Qatar National Convention Centre, Doha (Room TBC)

Background

The Second World Summit for Social Development takes place at a defining moment for global development. As the 2030 Agenda enters its final stretch, only 17% of SDG targets are currently on track. The promise to end poverty, expand decent work, and reduce inequalities is faltering under the weight of intersecting crises, from escalating climate extremes and pandemics to economic shocks and pandemics. At the same time, 2025 also marks the final implementation phase of the Sendai Framework for Disaster Risk Reduction 2015-2030.

In this context, disasters have become a structural feature of development, not isolated events. Each year, they affect over 100 million people, disrupt livelihoods, displace millions, and erase decades of progress in a matter of hours. These impacts are not evenly distributed: they disproportionately affect people in vulnerable situations such as women, children, older persons, persons with disabilities, and those living in poverty, further entrenching cycles of inequality and exclusion.

Social development systems such as social protection, health, education, and employment are not designed to withstand compounding shocks. Most social protection schemes do not anticipate risk or reach the most exposed communities. Critical infrastructure is rarely built with future hazards in mind. According to the Global Assessment Report 2025, more than 80 percent of global disaster losses are linked to sectors critical to human development, including education, health, housing, and transport. These systemic weaknesses are not only exposing people to greater risk but are also locking countries into cycles of crisis and recovery, rather than enabling sustainable and inclusive progress.

Yet this crisis presents an opportunity, the 2023 Midterm Review of the Sendai Framework and the outcome of the 8th Global Platform for Disaster Risk Reduction – The Geneva Call for Disaster Risk Reduction – highlighted that countries which invest in risk-informed planning, governance, and infrastructure experience fewer lives lost, faster recoveries, and more equitable development. DRR is not solely a matter of responding to disasters; it is fundamentally about reshaping the way public systems are designed and implemented, to be more inclusive, forward-looking, and resilient to a broad spectrum of risks. Risk-informed development means making deliberate choices to anticipate, plan for, reduce and prevent disaster risk. It means aligning DRR with poverty eradication, decent work, housing, and inclusion – not as an add-on, but as a core strategy for sustainable development. This requires political will, institutional change, and financing systems that reward prevention and protect the most vulnerable.

The 2025 World Summit on Social Development is a once-in-a-generation opportunity to reposition DRR as a foundation for social justice and equity. Building resilience is not only a technical imperative, it is a social and moral one. This Solutions Session will spotlight the transformative potential of DRR to protect development gains, tackle root causes of vulnerability, and ensure no one is left behind.

Objective

This Solutions Session will challenge the conventional view of DRR as a siloed technical tool and reframe it as a transformative accelerator of social development. It will:

Highlight policy shifts where governments use data, anticipatory action, and inclusive design to future-proof their development pathways.

Catalyze institutional and policy shifts across Member States, the UN system and the private sector to mainstream DRR as a core approach to achieving inclusive, risk-informed, and future-ready social development.

MIL OSI United Nations News –

July 24, 2025

MIL-OSI: SALTGATOR Debuts Desktop Soft-Gel Injection Machine on Kickstarter — A Game-Changer for Makers

Source: GlobeNewswire (MIL-OSI)

DICKINSON, Texas, July 24, 2025 (GLOBE NEWSWIRE) — SALTGATOR Tech Inc., an Dickinson-based startup dedicated to accessible fabrication tools, is proud to announce the launch of its Kickstarter campaign for the SALTGATOR — the world’s first desktop soft-gel injection molding machine. Compact, safe, and remarkably versatile, SALTGATOR puts industrial-grade molding capabilities into the hands of everyday creators.

Designed for desktops, workshops, or classrooms, the SALTGATOR measures just 13×6×5.5 inches and supports precise heating up to 410°F (210°C). Fully enclosed and insulated, it safely processes up to 4 fl oz of softgel material, enabling users to create custom items like dual-tone fishing lures, silicone grips, cosplay props, keyboard caps, and squishy toys — all within minutes.

“We believe manufacturing tools belong on every creator’s desk,” said a SALTGATOR spokesperson. “Our goal is to empower the next generation of inventors with professional molding capabilities — without the cost, complexity, or hazards of traditional industrial equipment.”

Key Benefits:
– Compact and Powerful – Industrial-level injection molding in a desktop-sized device
– Multi-Material Support – Compatible with thermoplastic elastomers and 3D-printed molds (PLA, PETG, resin)
– Eco-Friendly & Reusable – Remelt and reuse materials to reduce waste and cost
– No Hidden Costs – No subscriptions, no proprietary cartridges — just refill and go
– Beginner-Friendly Interface – Simple control panel, auto shut-off, and fume-free operation for total peace of mind

Kickstarter Details
The SALTGATOR Kickstarter campaign offers early-bird specials starting at $249, a full $150 discount from the projected $399 retail price. Reward tiers include starter mold sets, custom color options, and extended warranties. Shipping is expected 1 months after campaign completion.

Backers can explore hands-on video demos, real-world use cases, and expert reviews on the campaign page, showcasing how SALTGATOR bridges the gap between creative ideas and real, tangible products. Whether you’re an educator, DIY enthusiast, or small-batch producer, SALTGATOR makes desktop-scale molding more approachable than ever before.

“As more creators demand agile, on-demand fabrication solutions, SALTGATOR brings those capabilities home,” added the spokesperson. “We’re here to unlock creativity with tools that are powerful, safe, and surprisingly fun to use.”

About SALTGATOR Tech Inc.
Founded in 2025 in Dickinson, Texas, SALTGATOR Tech Inc. develops compact, efficient, and user-friendly fabrication tools for innovators of all levels. With a focus on safety, simplicity, and creativity, SALTGATOR’s mission is to make advanced production technologies — like soft-gel injection molding — accessible to makers, educators, and entrepreneurs around the world.

For media inquiries and sample requests:
SALTGATOR Tech Inc. Press Office

https://www.SALTGATOR.com

https://discord.com/invite/93EydfRVUD

https://www.kickstarter.com/projects/1613155563/saltgator-the-1st-desktop-softgel-injection-molding-machine?ref=7c79id

Email: hello@saltgator.com

Disclaimer: This content is provided by SALTGATOR Tech Inc.. The statements, views, and opinions expressed in this column are solely those of the content provider. The information shared in this press release is not a solicitation for investment, nor is it intended as investment, financial, or trading advice. It is strongly recommended that you conduct thorough research and consult with a professional financial advisor before making any investment or trading decisions. Please conduct your own research and invest at your own risk.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/23c3bfca-ea72-4a57-a061-6966b5ca0bdb

https://www.globenewswire.com/NewsRoom/AttachmentNg/c83b5167-eaa7-46c1-8881-6640aeb2d939

https://www.globenewswire.com/NewsRoom/AttachmentNg/5b7577e2-d171-441f-9c06-912ed41dfafb

The MIL Network –

July 24, 2025

MIL-OSI: FirstCash Reports Record Second Quarter Operating Results; Strong Performance Across All Segments Drives Over 30% Year-to-Date EPS Growth; Increases Quarterly Cash Dividend 11%

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, July 24, 2025 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale payment solutions, today announced operating results for the three and six month periods ended June 30, 2025. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.42 per share, an increase of 11% over the previous quarterly dividend, which will be paid in August 2025.

Mr. Rick Wessel, chief executive officer, stated, “FirstCash is pleased to report outstanding earnings results for the second quarter and year-to-date periods. Pawn demand remains extremely robust, with local currency same-store pawn receivables up 13% in both the U.S. and Latin America, driving strong earnings growth for both segments. AFF posted growth in originations for the second quarter and a segment earnings increase of 46% versus last year. Driven by strong cash flows, the Board of Directors increased the quarterly cash dividend by 11%, which further reflects the strength of our business and long-term earnings prospects.”

Additionally, the Company expects to complete its previously announced acquisition of H&T Group plc (“H&T”) by the end of the third quarter of 2025, subject to receipt of the required approvals by the Financial Conduct Authority of the United Kingdom (“FCA”) and satisfaction of the other remaining closing conditions. H&T is the largest pawnbroker in the U.K. with 285 locations and would represent FirstCash’s first operations in Europe.

This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

	Three Months Ended June 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2025		2024		2025		2024
Revenue	$	830,622	$	831,012	$	830,622	$	831,012
Net income	$	59,805	$	49,073	$	79,620	$	61,898
Diluted earnings per share	$	1.34	$	1.08	$	1.79	$	1.37
EBITDA (non-GAAP measure)	$	132,753	$	117,651	$	145,129	$	121,882
Weighted-average diluted shares		44,552		45,289		44,552		45,289

	Six Months Ended June 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2025		2024		2025		2024
Revenue	$	1,667,045	$	1,667,382	$	1,667,045	$	1,667,382
Net income	$	143,396	$	110,441	$	172,399	$	132,087
Diluted earnings per share	$	3.21	$	2.44	$	3.86	$	2.91
EBITDA (non-GAAP measure)	$	295,714	$	250,238	$	308,009	$	253,474
Weighted-average diluted shares		44,670		45,338		44,670		45,338

Consolidated Operating Highlights

Diluted earnings per share for the second quarter increased 24% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 31% compared to the prior-year quarter.
Year-to-date diluted earnings per share increased 32% over the prior-year period on a GAAP basis and adjusted diluted earnings per share increased 33% compared to the prior-year period.
Net income for the second quarter increased 22% over the prior-year quarter on a GAAP basis while adjusted net income increased 29% compared to the prior-year quarter.
Year-to-date net income increased 30% over the prior-year period on a GAAP basis and adjusted net income increased 31% compared to the prior-year period.
Adjusted EBITDA for the second quarter increased 19% compared to the prior-year quarter. On a year-to-date basis, adjusted EBITDA increased 22% compared to the comparative prior-year period.
For the trailing twelve month period ended June 30, 2025 the Company reported:
- Revenues of $3.4 billion
- Net income of $292 million on a GAAP basis and adjusted net income of $343 million
- Adjusted EBITDA of $613 million
- Operating cash flows of $555 million and adjusted free cash flows (a non-GAAP measure) of $267 million

Store Base and Platform Growth

U.K. Pawn Acquisition Update
- On July 2, 2025 the shareholders of H&T voted to approve the acquisition.
- Pending approvals by the FCA and the satisfaction of other closing conditions, the Company expects the transaction to close by the end of the third quarter.
- The total equity value for the H&T acquisition is approximately £291 million ($396 million USD using GBP/USD exchange rate of 1.36) which the Company intends to fund utilizing its revolving bank credit facility.
- This combination of FirstCash and H&T will create the largest publicly traded pawn platform in the United States, Latin America and the United Kingdom with more than 3,300 total locations.
Other Pawn Store Additions
- A total of 13 pawn locations were added in the second quarter and 25 stores added year-to-date.
- Three U.S. stores were acquired in Illinois, bringing the total to 39 locations in that market. Additionally, one new location in Texas was opened during the second quarter. Year-to-date through June 30, 2025, a total of six new locations were opened or acquired in the U.S.
- There were nine new store openings in Latin America, all of which are located in Mexico. Year-to-date through June 30, 2025, a total of 19 new locations were opened in Latin America.
- The Company purchased the underlying real estate of 14 U.S. stores during the quarter, bringing the total number of company owned locations to 421 at quarter end.
- As of June 30, 2025, the Company had 3,027 locations, comprised of 1,194 U.S. locations and 1,833 locations in Latin America. Additionally, two U.S. stores were acquired in July 2025 in separate transactions.

Retail POS Payment Solutions (AFF) Merchant Partnerships
- At June 30, 2025, there were approximately 15,300 active retail and e-commerce merchant partner locations, representing a 19% increase in the number of active merchant locations compared to a year ago. Excluding furniture locations that closed in the prior year due to merchant partner bankruptcies, the number of active doors increased 29%.

U.S. Pawn Segment Operating Results

Segment pre-tax operating income in the second quarter of 2025 was a record $98 million, an increase of $8 million, or 8%, compared to the prior-year quarter. The resulting segment pre-tax operating margin was 24% for the second quarter of 2025, which equaled the prior-year quarter.
Year-to-date segment pre-tax operating income increased by $24 million, or 13%, compared to the prior-year period. The pre-tax operating margin was 25% for the year-to-date period, which equaled the prior-year period.
Pawn receivables increased 12% in total at June 30, 2025 compared to the prior year, driven by an impressive 13% increase in same-store pawn receivables. On a two-year stacked basis, same-store pawn receivables were up 24%.
Pawn loan fees increased 9% for the second quarter both in total and on a same-store basis.
Retail merchandise sales increased 9% in the second quarter of 2025 compared to the prior-year quarter, while same-store retail sales increased 7% compared to the prior-year quarter.
Retail sales margins increased to 43% for the second quarter compared to 42% in the prior-year quarter. Annualized inventory turnover was 2.8 times for the trailing twelve months ended June 30, 2025, which equaled the inventory turnover during the same prior-year period. Inventories aged greater than one year at June 30, 2025 remained low at 2% of total inventories.

Latin America Pawn Segment Operating Results

Note: Certain growth rates below are calculated on a constant or local currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the second quarter of 2025 was 19.5 pesos / dollar, an unfavorable change of 13% versus the comparable prior-year period, and for the six month period ended June 30, 2025 was 20.0 pesos / dollar, an unfavorable change of 17% versus the prior-year period.

Despite the 13% decrease in the average Mexican peso exchange rate, second quarter segment pre-tax operating income increased 10% on a U.S. dollar basis and totaled a record $41 million compared to last year. On a local currency basis, segment earnings increased 22% over last year, with resulting segment pre-tax operating margins of 20% for both measures, compared to 18% in the prior year.
Year-to-date segment pre-tax operating income totaled $72 million, a 5% increase on a U.S. dollar-basis compared to the prior-year period and an 18% increase on a local currency basis. The year-to-date pre-tax operating margin increased to 19% compared to 17% in the prior-year period.
Pawn receivables at June 30, 2025 increased 11% on a U.S. dollar basis while increasing 14% on a constant currency basis compared to the prior year. On a same-store basis, pawn receivables increased 10% on a U.S. dollar basis and increased 13% on a constant currency basis compared to the prior year.
While total and same-store pawn loan fees in the second quarter decreased 1% and 2% on a U.S. dollar-basis, respectively, they both increased 11% on a constant currency basis compared to the prior-year quarter.
Retail merchandise sales in the second quarter of 2025 increased 1% on a U.S. dollar-basis compared to the prior-year quarter while increasing 14% on a constant currency basis. On a same-store basis, second quarter retail merchandise sales were flat on a U.S. dollar basis while increasing 13% on a constant currency basis compared to the prior-year quarter.
Retail margins were 36% for the second quarter of 2025, which equaled the prior-year quarter. Annualized inventory turnover was 4.1 times for the trailing twelve months ended June 30, 2025 compared to 4.3 times in the prior-year period. Inventories aged greater than one year at June 30, 2025 remained extremely low at 1%.

American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

Second quarter segment pre-tax operating income totaled $38 million, an increase of 46% compared to the prior-year quarter. The growth in earnings was driven primarily by gross margin improvement and operating expense reductions. Year-to-date segment pre-tax operating income totaled $90 million, a 53% increase over the prior-year period which was $59 million.
While gross revenues for the second quarter decreased 14%, primarily due to the American Freight Warehouse (“A-Freight”) and Conn’s Home Plus (“Conn’s”) bankruptcies in late 2024, net revenue increased 2%, driven by growth in revenue from other merchant partners and lower net credit provisioning expenses.
Gross transaction volume of lease and loan originations during the second quarter increased 3%, compared to the second quarter of last year. Excluding 2024 originations from A-Freight and Conn’s, second quarter 2025 origination volume increased approximately 34%. For the year-to-date period, overall gross transaction volume decreased 2% over the same prior-year period and was up 29% excluding A-Freight and Conn’s.
As a percentage of the total gross transaction volume, the combined lease and loan loss provision expense was 29% for the second quarter of 2025 compared to 31% in the second quarter of 2024. The decrease reflected lower than expected charge-offs on older portfolio vintages which resulted in net reserve releases. The combined allowance as a percentage of combined leased merchandise and finance receivables at June 30, 2025 was 43% compared to 45% a year ago.
Operating expenses decreased 31% compared to the prior-year quarter, primarily due to the elimination of certain expenses associated with supporting the A-Freight and Conn’s relationships in the prior-year period along with continued realization of operating synergies, including greater efficiencies in technology and development infrastructure, coupled with other cost reduction initiatives.

Cash Flow and Liquidity

Consolidated operating cash flows for the twelve month period ended June 30, 2025 grew 26% and totaled $555 million compared to $439 million in the same prior-year period, with significant contributions from each of the Company’s three business segments.
Adjusted free cash flows increased 21% to $267 million in the twelve month period ended June 30, 2025 compared to $220 million in the same prior-year period.
The operating cash flows helped fund significant growth in earning assets, continued investments in the pawn store platform and shareholder returns over the past twelve months with a nominal increase in net debt:
- Pawn earning assets (pawn receivables and inventories) increased $99 million compared to last year.
- A total of 15 pawn stores were acquired for a combined purchase price of $44 million.
- 42 new pawn stores were added with a combined investment of $16 million in fixed assets and working capital.
- Real estate purchases totaled $93 million as the Company purchased the underlying real estate at 60 of its existing pawn stores, bringing the number of Company-owned properties to 421 locations.
- Shareholder returns comprised of stock repurchases and cash dividends of $127 million.
Net debt at June 30, 2025 was $1.6 billion, of which $1.5 billion is fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032. The outstanding balance under the Company’s $700 million revolving line of credit totaled $152 million at June 30, 2025.
Based on trailing twelve month results, the Company’s net debt to adjusted EBITDA ratio improved to 2.6x at June 30, 2025.

Shareholder Returns

The Board of Directors declared a $0.42 per share third quarter cash dividend, which will be paid on August 29, 2025 to stockholders of record as of August 15, 2025. This represents an 11% increase over the previous quarterly dividend.
On an annualized basis, the dividend is now $1.68 per share, also representing an 11% increase over the previous annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
Over the past twelve months, the Company has repurchased 525,000 shares of common stock at a total cost of $60 million and paid out $68 million in cash dividends, representing a payout ratio of approximately 44% of net income over the same period.
The Company has $55 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
The Company generated a 14% return on equity and a 7% return on assets for the twelve months ended June 30, 2025. Using adjusted net income for the twelve months ended June 30, 2025, the adjusted return on equity was 17% while the adjusted return on assets was 8%.

2025 Outlook

Driven by the strong first half results and continuing customer demand for pawn loans, the outlook for 2025 remains highly positive, with expected year-over-year growth in income driven by the continued growth in earning asset balances coupled with store additions. While the H&T acquisition is now anticipated to close by the end of the third quarter of 2025, the estimates provided below do not yet include revenue and contributions from H&T. Anticipated conditions and trends for the remainder of 2025 include the following:

Pawn Operations:

Pawn operations are expected to remain the primary earnings driver in 2025 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
The Company expects further growth in the pawn store base in 2025 through a combination of new store openings and potential small acquisitions.

U.S. Pawn

Based on strong first half results and expected store additions, the outlook for anticipated revenue growth and margins has been increased for all metrics.
Same-store pawn loans at June 30, 2025 were up 13% compared to a year ago, with July balances to date up similarly. Given these trends, the outlook for pawn fee growth is now expected to be in a range of 10% to 12% for the full year versus the prior expectation of 9% to 11% for the full year.
Retail sales are expected to grow in a high single digit range in 2025 versus prior expectations of mid single digits. Retail sales margins are now targeted at the upper end of the 41% to 42% guidance range.

Latin America Pawn

U.S. dollar-reported first half results for Latin America in 2025 were negatively impacted by the lower exchange rate for the Mexican peso during the first half of this year compared to last year. With the recent favorable movement in the peso and the better than expected growth in the underlying business, the Company is increasing its full year revenue outlook for the Latin America pawn segment.
Same-store pawn receivables at June 30, 2025 were up 10% on a U.S. dollar basis and up 13% on a constant currency basis, with July balances to date up similarly. Full year pawn fee growth is now expected to increase in a range of 10% to 12% on a local currency basis and is now projected to be flat to up slightly on a U.S. dollar basis versus prior expectations of flat to down slightly on a U.S. dollar basis.
Retail sales in Latin America are also expected to track similarly to pawn fees in 2025 with consistent retail margins.

Retail POS Payment Solutions (AFF) Operations:

The forecast for full year origination volume for 2025 is expected to be relatively consistent with the 2024 volume. Excluding 2024 originations from Conn’s and A-Freight, origination volumes are expected to increase in a range of 20% to 25% over 2024, reflecting continued diversification outside the furniture vertical.
The outlook for full year net revenues has improved, with the revised forecast for net revenues now expected to decline only 6% to 8% compared to last year versus the previously forecasted decline of 8% to 12%.
The net lease and loan charge-off rates for the second half of 2025 are expected to remain consistent with the charge-off rates in the second half of last year. Quarterly operating expenses for the balance of 2025 are expected to remain generally consistent with the second quarter run rate.

Tax Rates and Currency:

The full year 2025 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
Each full point change in the exchange rate of the Mexican peso is projected to have an annual earnings impact of approximately $0.10 per share.

Additional Commentary and Analysis

Mr. Wessel further commented on FirstCash’s second quarter results and the outlook for the remainder of 2025, “Operating performance across all business segments continues to be incredibly strong, driving year-to-date earnings per share growth of 32% on a GAAP basis and a 33% increase on an adjusted basis. FirstCash also achieved another significant earnings milestone this quarter with adjusted EBITDA for the trailing twelve months exceeding $600 million for the first time in Company history.

“The U.S. pawn segment has now recorded eight consecutive quarters of double-digit growth in same-store receivables with continuing demand remaining strong thus far in July. At the same time, we remain disciplined in managing loan-to-value ratios as evidenced by the improved U.S. retail margins in the second quarter. The demand for value priced merchandise remains strong as well with same-store retail sales up 7% for the most recent quarter.

“In Latin America, we have seen tremendous growth in pawn receivables over the last three quarters, including a 13% increase in same-store pawn receivables in the second quarter. This trend continued to accelerate, with same-store pawn loan originations in Mexico up over 20% over the last thirty days. Our outlook for Latin America is further enhanced by the improved exchange rate for the Mexican peso since the last quarter, which has reduced the previously anticipated currency headwinds and improved our full year outlook for the region.

“Solid performance at AFF further bolstered second quarter and year-to-date operating results for our Retail POS Payment Solutions segment. AFF now has over 15,000 active doors, an increase of 19% over a year ago. Coupled with a 12% increase in same-door originations, AFF fully offset the impact of the loss of two significant merchant partners to bankruptcy last year and realized an overall total increase in originations in the second quarter. Growth continues to be particularly robust in verticals such as elective medical and automotive services. Driven by the solid revenue performance and significant expense savings, profitability for AFF has been especially strong in the first half of the year.

“Looking ahead, we continue to progress toward the closing of the H&T acquisition. H&T represents a highly complementary strategic fit as the U.K.’s largest pawnbroker, operating with a network of 285 stores, which will expand FirstCash’s geographic footprint into a new and attractive market further providing the Company with enhanced scale, operating efficiencies and long-term growth opportunities. We continue to believe in the financial and strategic rationale for expanding our international operations as part of our long-term growth strategy.

“Lastly, based on strong earnings results, robust operating cash flows and the strength of its balance sheet, FirstCash continues to make significant investments in new stores, acquisitions and shareholder returns. To that end, we are again pleased to announce an increased quarterly cash dividend to be paid in August which is expected to provide an annualized payout of $1.68 per share further augmenting shareholder returns” concluded Mr. Wessel.

About FirstCash

FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of annualized segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

Forward-Looking Information

This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2025 and the Company’s previously announced H&T acquisition. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors and risks may include, without limitation, risks related to the extensive regulatory environment in which the Company operates, including uncertainty involving the current regulatory environment under the current presidential administration; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; risks related to the H&T acquisition, in particular, the ability to obtain the necessary regulatory approvals for the H&T acquisition from the FCA and to satisfy the other closing conditions in the expected timeframe, if at all, and the ability to achieve the anticipated benefits from the H&T acquisition; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and trade policy, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail point-of-sale (“POS”) payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; the ability of the Company’s retail POS payment solutions business to continue to grow its base of merchant partners, including those outside of the furniture vertical; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FIRSTCASH HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
Revenue:
Retail merchandise sales	$	385,125		$	363,463		$	756,181		$	730,284
Pawn loan fees		190,822			181,046			382,693			360,581
Leased merchandise income		139,784			194,570			296,702			400,241
Interest and fees on finance receivables		76,075			56,799			149,488			114,186
Wholesale scrap jewelry sales		38,816			35,134			81,981			62,090
Total revenue		830,622			831,012			1,667,045			1,667,382

Cost of revenue:
Cost of retail merchandise sold		230,326			218,147			454,450			441,676
Depreciation of leased merchandise		78,272			110,157			167,091			230,441
Provision for lease losses		32,543			47,653			60,105			90,663
Provision for loan losses		41,761			31,116			78,121			61,534
Cost of wholesale scrap jewelry sold		34,904			28,542			70,259			51,831
Total cost of revenue		417,806			435,615			830,026			876,145

Net revenue		412,816			395,397			837,019			791,237

Expenses and other income:
Operating expenses		222,493			228,369			437,079			449,505
Administrative expenses		59,263			46,602			107,786			90,620
Depreciation and amortization		25,864			26,547			51,366			52,574
Interest expense		26,337			25,187			53,808			50,605
Interest income		(527	)		(261	)		(1,756	)		(1,004	)
(Gain) loss on foreign exchange		(1,271	)		1,437			(1,285	)		1,251
Merger and acquisition expenses		2,777			1,364			3,239			1,961
Other income, net		(3,199	)		(26	)		(5,514	)		(2,338	)
Total expenses and other income		331,737			329,219			644,723			643,174

Income before income taxes		81,079			66,178			192,296			148,063

Provision for income taxes		21,274			17,105			48,900			37,622

Net income	$	59,805		$	49,073		$	143,396		$	110,441

Certain amounts in the consolidated statement of income for the three and six months ended June 30, 2024 have been reclassified in order to conform to the 2025 presentation.

FIRSTCASH HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (unaudited, in thousands)

	June 30,						December 31,
		2025			2024			2024
ASSETS
Cash and cash equivalents	$	101,467		$	113,693		$	175,095
Accounts receivable, net		76,062			72,158			73,325
Pawn loans		550,718			491,731			517,867
Finance receivables, net		154,518			105,401			147,501
Inventories		355,733			315,424			334,580
Leased merchandise, net		100,689			142,935			128,437
Prepaid expenses and other current assets		35,667			31,923			26,943
Total current assets		1,374,854			1,273,265			1,403,748

Property and equipment, net		750,862			661,005			717,916
Operating lease right of use asset		342,859			324,651			324,646
Goodwill		1,826,184			1,794,957			1,787,172
Intangible assets, net		204,643			253,910			228,858
Other assets		9,805			9,606			9,934
Deferred tax assets, net		5,042			5,014			4,712
Total assets	$	4,514,249		$	4,322,408		$	4,476,986

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	145,035		$	141,314		$	171,540
Customer deposits and prepayments		80,848			76,452			72,703
Lease liability, current		100,845			97,809			95,161
Total current liabilities		326,728			315,575			339,404

Revolving unsecured credit facilities		152,000			150,000			198,000
Senior unsecured notes		1,532,865			1,529,870			1,531,346
Deferred tax liabilities, net		125,290			129,060			128,574
Lease liability, non-current		237,198			219,454			225,498
Total liabilities		2,374,081			2,343,959			2,422,822

Stockholders’ equity:
Common stock		575			575			575
Additional paid-in capital		1,760,179			1,760,986			1,767,569
Retained earnings		1,520,677			1,296,721			1,411,083
Accumulated other comprehensive loss		(96,267	)		(84,366	)		(129,596	)
Common stock held in treasury, at cost		(1,044,996	)		(995,467	)		(995,467	)
Total stockholders’ equity		2,140,168			1,978,449			2,054,164
Total liabilities and stockholders’ equity	$	4,514,249		$	4,322,408		$	4,476,986

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS
(UNAUDITED)

The Company organizes its operations into three reportable segments as follows:

U.S. pawn
Latin America pawn
Retail POS payment solutions (AFF)

Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, gain on foreign exchange, merger and acquisition expenses, and other income, net, are presented on a consolidated basis and are not allocated to the segments. Intersegment transactions related to AFF’s LTO payment solution product offered in U.S. pawn stores are eliminated from consolidated totals.

U.S. Pawn Operating Results and Margins (dollars in thousands)

	Three Months Ended
	June 30,
	2025			2024			Increase
Revenue:
Retail merchandise sales	$	249,918		$	230,093			9	%
Pawn loan fees		130,948			120,332			9	%
Wholesale scrap jewelry sales		28,740			26,311			9	%
Total revenue		409,606			376,736			9	%

Cost of revenue:
Cost of retail merchandise sold		143,149			132,449			8	%
Cost of wholesale scrap jewelry sold		26,265			21,269			23	%
Total cost of revenue		169,414			153,718			10	%

Net revenue		240,192			223,018			8	%

Segment expenses:
Operating expenses		133,815			125,192			7	%
Depreciation and amortization		8,091			7,231			12	%
Total segment expenses		141,906			132,423			7	%

Segment pre-tax operating income	$	98,286		$	90,595			8	%

Operating metrics:
Retail merchandise sales margin	43		%	42		%
Net revenue margin	59		%	59		%
Segment pre-tax operating margin	24		%	24		%

FIRSTCASH HOLDINGS, INC. SEGMENT RESULTS (CONTINUED) (UNAUDITED)

U.S. Pawn Operating Results and Margins (dollars in thousands)

	Six Months Ended
	June 30,
	2025			2024			Increase
Revenue:
Retail merchandise sales	$	501,143		$	467,083			7	%
Pawn loan fees		268,896			243,306			11	%
Wholesale scrap jewelry sales		62,232			44,037			41	%
Total revenue		832,271			754,426			10	%

Cost of revenue:
Cost of retail merchandise sold		288,907			272,363			6	%
Cost of wholesale scrap jewelry sold		53,489			36,535			46	%
Total cost of revenue		342,396			308,898			11	%

Net revenue		489,875			445,528			10	%

Segment expenses:
Operating expenses		262,766			244,087			8	%
Depreciation and amortization		15,691			14,244			10	%
Total segment expenses		278,457			258,331			8	%

Segment pre-tax operating income	$	211,418		$	187,197			13	%

Operating metrics:
Retail merchandise sales margin	42		%	42		%
Net revenue margin	59		%	59		%
Segment pre-tax operating margin	25		%	25		%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

	As of June 30,
	2025			2024			Increase
Earning assets:
Pawn loans	$	400,143		$	356,342			12	%
Inventories		252,885			223,428			13	%
	$	653,028		$	579,770			13	%

Average outstanding pawn loan amount (in ones)	$	286		$	260			10	%

Composition of pawn collateral:
General merchandise	28		%	30		%
Jewelry	72		%	70		%
	100		%	100		%

Composition of inventories:
General merchandise	39		%	43		%
Jewelry	61		%	57		%
	100		%	100		%

Percentage of inventory aged greater than one year	2		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	2.8 times			2.8 times

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.

Latin America Pawn Operating Results and Margins (dollars in thousands)

														Constant Currency Basis
														Three Months
														Ended
		Three Months Ended												June 30,			Increase /
		June 30,							Increase /						2025		(Decrease)
			2025				2024		(Decrease)					(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	135,956			$	134,445			1		%		$	153,234			14		%
Pawn loan fees			59,874				60,714			(1	)	%			67,497			11		%
Wholesale scrap jewelry sales			10,076				8,823			14		%			10,076			14		%
Total revenue			205,906				203,982			1		%			230,807			13		%

Cost of revenue:
Cost of retail merchandise sold			87,579				86,276			2		%			98,641			14		%
Cost of wholesale scrap jewelry sold			8,639				7,273			19		%			9,811			35		%
Total cost of revenue			96,218				93,549			3		%			108,452			16		%

Net revenue			109,688				110,433			(1	)	%			122,355			11		%

Segment expenses:
Operating expenses			64,414				67,902			(5	)	%			72,340			7		%
Depreciation and amortization			4,294				5,418			(21	)	%			4,804			(11	)	%
Total segment expenses			68,708				73,320			(6	)	%			77,144			5		%

Segment pre-tax operating income		$	40,980			$	37,113			10		%		$	45,211			22		%

Operating metrics:
Retail merchandise sales margin	36			%	36			%					36			%
Net revenue margin	53			%	54			%					53			%
Segment pre-tax operating margin	20			%	18			%					20			%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Latin America Pawn Operating Results and Margins (dollars in thousands)

														Constant Currency Basis
														Six Months
														Ended
		Six Months Ended												June 30,			Increase /
		June 30,							Increase /						2025		(Decrease)
			2025				2024		(Decrease)					(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	256,488			$	265,294			(3	)	%		$	296,887			12		%
Pawn loan fees			113,797				117,275			(3	)	%			131,755			12		%
Wholesale scrap jewelry sales			19,749				18,053			9		%			19,749			9		%
Total revenue			390,034				400,622			(3	)	%			448,391			12		%

Cost of revenue:
Cost of retail merchandise sold			166,318				170,459			(2	)	%			192,333			13		%
Cost of wholesale scrap jewelry sold			16,770				15,296			10		%			19,491			27		%
Total cost of revenue			183,088				185,755			(1	)	%			211,824			14		%

Net revenue			206,946				214,867			(4	)	%			236,567			10		%

Segment expenses:
Operating expenses			125,831				135,327			(7	)	%			144,841			7		%
Depreciation and amortization			8,730				10,523			(17	)	%			10,008			(5	)	%
Total segment expenses			134,561				145,850			(8	)	%			154,849			6		%

Segment pre-tax operating income		$	72,385			$	69,017			5		%		$	81,718			18		%

Operating metrics:
Retail merchandise sales margin	35			%	36			%					35			%
Net revenue margin	53			%	54			%					53			%
Segment pre-tax operating margin	19			%	17			%					18			%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

										Constant Currency Basis
										As of
										June 30,
	As of June 30,									2025		Increase
	2025			2024			Increase			(Non-GAAP)		(Non-GAAP)
Earning assets:
Pawn loans	$	150,575		$	135,389			11	%	$	154,466		14	%
Inventories		102,848			91,996			12	%		105,501		15	%
	$	253,423		$	227,385			11	%	$	259,967		14	%

Average outstanding pawn loan amount (in ones)	$	96		$	89			8	%	$	98		10	%

Composition of pawn collateral:
General merchandise	57		%	63		%
Jewelry	43		%	37		%
	100		%	100		%

Composition of inventories:
General merchandise	59		%	69		%
Jewelry	41		%	31		%
	100		%	100		%

Percentage of inventory aged greater than one year	1		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	4.1 times			4.3 times

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Operating Results (dollars in thousands)

	Three Months Ended
	June 30,				Increase /
	2025		2024		(Decrease)
Revenue:
Leased merchandise income	$	139,784	$	194,570		(28	)	%
Interest and fees on finance receivables		76,075		56,799		34		%
Total revenue		215,859		251,369		(14	)	%

Cost of revenue:
Depreciation of leased merchandise		78,529		110,567		(29	)	%
Provision for lease losses		32,667		47,824		(32	)	%
Provision for loan losses		41,761		31,116		34		%
Total cost of revenue		152,957		189,507		(19	)	%

Net revenue		62,902		61,862		2		%

Segment expenses:
Operating expenses		24,264		35,275		(31	)	%
Depreciation and amortization		699		678		3		%
Total segment expenses		24,963		35,953		(31	)	%

Segment pre-tax operating income	$	37,939	$	25,909		46		%

	Six Months Ended
	June 30,				Increase /
	2025		2024		(Decrease)
Revenue:
Leased merchandise income	$	296,702	$	400,241		(26	)	%
Interest and fees on finance receivables		149,488		114,186		31		%
Total revenue		446,190		514,427		(13	)	%

Cost of revenue:
Depreciation of leased merchandise		167,672		231,341		(28	)	%
Provision for lease losses		60,271		91,004		(34	)	%
Provision for loan losses		78,121		61,534		27		%
Total cost of revenue		306,064		383,879		(20	)	%

Net revenue		140,126		130,548		7		%

Segment expenses:
Operating expenses		48,482		70,091		(31	)	%
Depreciation and amortization		1,404		1,399		—		%
Total segment expenses		49,886		71,490		(30	)	%

Segment pre-tax operating income	$	90,240	$	59,058		53		%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)

	Three Months Ended								Six Months Ended
	June 30,				Increase /				June 30,				Increase /
	2025		2024		(Decrease)				2025		2024		(Decrease)
Leased merchandise	$	110,516	$	146,778		(25	)	%	$	204,822	$	300,899		(32	)	%
Finance receivables		149,943		105,258		42		%		291,205		207,422		40		%
Total gross transaction volume	$	260,459	$	252,036		3		%	$	496,027	$	508,321		(2	)	%

Retail POS Payment Solutions Earning Assets (dollars in thousands)

	As of June 30,						Increase /
		2025			2024		(Decrease)
Leased merchandise, net:
Leased merchandise, before allowance for lease losses	$	170,824		$	246,457			(31	)	%
Less allowance for lease losses		(69,972	)		(103,301	)		(32	)	%
Leased merchandise, net	$	100,852		$	143,156			(30	)	%

Finance receivables, net:
Finance receivables, before allowance for loan losses	$	277,392		$	205,362			35		%
Less allowance for loan losses		(122,874	)		(99,961	)		23		%
Finance receivables, net	$	154,518		$	105,401			47		%

Portfolio Metrics

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
Leased merchandise portfolio metrics:
Provision rate ⁽¹⁾	30		%	33		%	29		%	30		%
Average monthly net charge-off rate ^{(2), (3)}	6.2		%	5.4		%	6.2		%	5.4		%
Delinquency rate ⁽⁴⁾	23.2		%	23.0		%	23.2		%	23.0		%

Finance receivables portfolio metrics:
Provision rate ⁽¹⁾	28		%	30		%	27		%	30		%
Average monthly net charge-off rate ⁽²⁾	4.6		%	4.5		%	4.4		%	4.7		%
Delinquency rate ⁽⁴⁾	20.6		%	20.0		%	20.6		%	20.0		%

_{⁽¹⁾ Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
⁽²⁾ Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.}
_{⁽³⁾ The increase in leased merchandised net charge-off rate for 2025 is the expected result given reduced originations of new leases in 2025.}
_{⁽⁴⁾ Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).}

FIRSTCASH HOLDINGS, INC.
PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS

Pawn Operations

As of June 30, 2025, the Company operated 3,027 pawn store locations composed of 1,194 stores in 29 U.S. states and the District of Columbia, 1,731 stores in 32 states in Mexico, 72 stores in Guatemala, 18 stores in El Salvador and 12 stores in Colombia.

The following tables detail pawn store count activity for the three and six months ended June 30, 2025:

	Three Months Ended June 30, 2025
	U.S.		Latin America		Total
Total locations, beginning of period	1,197		1,826		3,023
New locations opened	1		9		10
Locations acquired	3		—		3
Consolidation of existing pawn locations ⁽¹⁾	(7	)	(2	)	(9	)
Total locations, end of period	1,194		1,833		3,027


	Six Months Ended June 30, 2025
	U.S.		Latin America		Total
Total locations, beginning of period	1,200		1,826		3,026
New locations opened	2		19		21
Locations acquired	4		—		4
Consolidation of existing pawn locations ⁽¹⁾	(12	)	(12	)	(24	)
Total locations, end of period	1,194		1,833		3,027

_{⁽¹⁾ Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.}

Retail POS Payment Solutions

As of June 30, 2025, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 15,300 active retail merchant partner locations. This compares to the active door count of approximately 12,800 locations at June 30, 2024.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(UNAUDITED)

The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

The Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses, amortization of acquired AFF intangible assets, the Consumer Financial Protection Bureau (“CFPB”) litigation settlement and certain other income and expenses. The Company does not consider these items to be related to the organic operations of the Company’s businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the Company. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

											Trailing Twelve
	Three Months Ended					Six Months Ended					Months Ended
	June 30,					June 30,					June 30,
		2025			2024		2025			2024		2025		2024
	In Thousands			In Thousands		In Thousands			In Thousands		In Thousands		In Thousands
Net income, as reported	$	59,805		$	49,073	$	143,396		$	110,441	$	291,770	$	237,174
Adjustments, net of tax:
Merger and acquisition expenses		2,134			1,047		2,488			1,504		2,690		7,380
AFF purchase accounting and other adjustments		9,258			9,572		18,516			19,145		37,660		51,497
CFPB litigation settlement		9,390			—		9,390			—		9,390		—
Other (income) expenses, net		(967	)		2,206		(1,391	)		997		1,482		(343	)
Adjusted net income	$	79,620		$	61,898	$	172,399		$	132,087	$	342,992	$	295,708

	Three Months Ended					Six Months Ended
	June 30,					June 30,
		2025		2024		2025			2024
	Per Share			Per Share		Per Share			Per Share
Diluted earnings per share, as reported	$	1.34		$	1.08	$	3.21		$	2.44
Adjustments, net of tax:
Merger and acquisition expenses		0.05			0.03		0.06			0.03
AFF purchase accounting and other adjustments		0.21			0.21		0.41			0.42
CFPB litigation settlement		0.21			—		0.21			—
Other (income) expenses, net		(0.02	)		0.05		(0.03	)		0.02
Adjusted diluted earnings per share	$	1.79		$	1.37	$	3.86		$	2.91

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):

													Trailing Twelve
	Three Months Ended						Six Months Ended						Months Ended
	June 30,						June 30,						June 30,
	2025			2024			2025			2024			2025			2024
Net income	$	59,805		$	49,073		$	143,396		$	110,441		$	291,770		$	237,174
Income taxes		21,274			17,105			48,900			37,622			95,239			80,001
Depreciation and amortization		25,864			26,547			51,366			52,574			103,733			107,574
Interest expense		26,337			25,187			53,808			50,605			108,429			101,880
Interest income		(527	)		(261	)		(1,756	)		(1,004	)		(2,687	)		(1,548	)
EBITDA		132,753			117,651			295,714			250,238			596,484			525,081
Adjustments:
Merger and acquisition expenses		2,777			1,364			3,239			1,961			3,506			9,600
AFF purchase accounting and other adjustments ⁽¹⁾		—			—			—			—			—			13,968
CFPB litigation settlement		11,000			—			11,000			—			11,000			—
Other (income) expenses, net		(1,401	)		2,867			(1,944	)		1,275			1,982			(486	)
Adjusted EBITDA	$	145,129		$	121,882		$	308,009		$	253,474		$	612,972		$	548,163

_{⁽¹⁾ For the twelve months ended June 30, 2024, amount represents other non-recurring costs included in administrative expenses related to a discontinued finance product.}

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Free Cash Flow and Adjusted Free Cash Flow

For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

													Trailing Twelve
	Three Months Ended						Six Months Ended						Months Ended
	June 30,						June 30,						June 30,
		2025			2024			2025			2024			2025			2024
Cash flow from operating activities	$	116,854		$	106,187		$	243,494		$	228,719		$	554,733		$	439,192
Cash flow from certain investing activities:
Pawn loans, net ⁽¹⁾		(50,032	)		(46,036	)		(30,592	)		(20,887	)		(81,704	)		(56,053	)
Finance receivables, net		(35,411	)		(22,252	)		(55,977	)		(37,563	)		(157,728	)		(95,880	)
Purchases of furniture, fixtures, equipment and improvements		(12,952	)		(16,237	)		(25,866	)		(42,664	)		(51,447	)		(74,464	)
Free cash flow		18,459			21,662			131,059			127,605			263,854			212,795
Merger and acquisition expenses paid, net of tax benefit		2,134			1,047			2,488			1,504			2,690			7,380
Adjusted free cash flow	$	20,593		$	22,709		$	133,547		$	129,109		$	266,544		$	220,175

_{⁽¹⁾ Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.}

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Return on Equity and Adjusted Return on Assets

Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

	Trailing Twelve
	Months Ended
	June 30, 2025
Adjusted net income ⁽¹⁾	$	342,992

Average stockholders’ equity (average of five most recent quarter-end balances)	$	2,046,067
Adjusted return on equity (trailing twelve months adjusted net income divided by average equity)	17		%

Average total assets (average of five most recent quarter-end balances)	$	4,426,553
Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets)	8		%

_{⁽¹⁾ See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.}

Constant Currency Results

The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso

	June 30,		Favorable /
	2025	2024	(Unfavorable)
Mexican peso / U.S. dollar exchange rate:
End-of-period	18.9	18.4		(3	)	%
Three months ended	19.5	17.2		(13	)	%
Six months ended	20.0	17.1		(17	)	%

Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period	7.7	7.8		1		%
Three months ended	7.7	7.8		1		%
Six months ended	7.7	7.8		1		%

Colombian peso / U.S. dollar exchange rate:
End-of-period	4,070	4,148		2		%
Three months ended	4,199	3,927		(7	)	%
Six months ended	4,195	3,921		(7	)	%

The MIL Network –

July 24, 2025

MIL-OSI: FirstCash Reports Record Second Quarter Operating Results; Strong Performance Across All Segments Drives Over 30% Year-to-Date EPS Growth; Increases Quarterly Cash Dividend 11%

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, July 24, 2025 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale payment solutions, today announced operating results for the three and six month periods ended June 30, 2025. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.42 per share, an increase of 11% over the previous quarterly dividend, which will be paid in August 2025.

Mr. Rick Wessel, chief executive officer, stated, “FirstCash is pleased to report outstanding earnings results for the second quarter and year-to-date periods. Pawn demand remains extremely robust, with local currency same-store pawn receivables up 13% in both the U.S. and Latin America, driving strong earnings growth for both segments. AFF posted growth in originations for the second quarter and a segment earnings increase of 46% versus last year. Driven by strong cash flows, the Board of Directors increased the quarterly cash dividend by 11%, which further reflects the strength of our business and long-term earnings prospects.”

Additionally, the Company expects to complete its previously announced acquisition of H&T Group plc (“H&T”) by the end of the third quarter of 2025, subject to receipt of the required approvals by the Financial Conduct Authority of the United Kingdom (“FCA”) and satisfaction of the other remaining closing conditions. H&T is the largest pawnbroker in the U.K. with 285 locations and would represent FirstCash’s first operations in Europe.

This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

	Three Months Ended June 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2025		2024		2025		2024
Revenue	$	830,622	$	831,012	$	830,622	$	831,012
Net income	$	59,805	$	49,073	$	79,620	$	61,898
Diluted earnings per share	$	1.34	$	1.08	$	1.79	$	1.37
EBITDA (non-GAAP measure)	$	132,753	$	117,651	$	145,129	$	121,882
Weighted-average diluted shares		44,552		45,289		44,552		45,289

	Six Months Ended June 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2025		2024		2025		2024
Revenue	$	1,667,045	$	1,667,382	$	1,667,045	$	1,667,382
Net income	$	143,396	$	110,441	$	172,399	$	132,087
Diluted earnings per share	$	3.21	$	2.44	$	3.86	$	2.91
EBITDA (non-GAAP measure)	$	295,714	$	250,238	$	308,009	$	253,474
Weighted-average diluted shares		44,670		45,338		44,670		45,338

Consolidated Operating Highlights

Diluted earnings per share for the second quarter increased 24% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 31% compared to the prior-year quarter.
Year-to-date diluted earnings per share increased 32% over the prior-year period on a GAAP basis and adjusted diluted earnings per share increased 33% compared to the prior-year period.
Net income for the second quarter increased 22% over the prior-year quarter on a GAAP basis while adjusted net income increased 29% compared to the prior-year quarter.
Year-to-date net income increased 30% over the prior-year period on a GAAP basis and adjusted net income increased 31% compared to the prior-year period.
Adjusted EBITDA for the second quarter increased 19% compared to the prior-year quarter. On a year-to-date basis, adjusted EBITDA increased 22% compared to the comparative prior-year period.
For the trailing twelve month period ended June 30, 2025 the Company reported:
- Revenues of $3.4 billion
- Net income of $292 million on a GAAP basis and adjusted net income of $343 million
- Adjusted EBITDA of $613 million
- Operating cash flows of $555 million and adjusted free cash flows (a non-GAAP measure) of $267 million

Store Base and Platform Growth

U.K. Pawn Acquisition Update
- On July 2, 2025 the shareholders of H&T voted to approve the acquisition.
- Pending approvals by the FCA and the satisfaction of other closing conditions, the Company expects the transaction to close by the end of the third quarter.
- The total equity value for the H&T acquisition is approximately £291 million ($396 million USD using GBP/USD exchange rate of 1.36) which the Company intends to fund utilizing its revolving bank credit facility.
- This combination of FirstCash and H&T will create the largest publicly traded pawn platform in the United States, Latin America and the United Kingdom with more than 3,300 total locations.
Other Pawn Store Additions
- A total of 13 pawn locations were added in the second quarter and 25 stores added year-to-date.
- Three U.S. stores were acquired in Illinois, bringing the total to 39 locations in that market. Additionally, one new location in Texas was opened during the second quarter. Year-to-date through June 30, 2025, a total of six new locations were opened or acquired in the U.S.
- There were nine new store openings in Latin America, all of which are located in Mexico. Year-to-date through June 30, 2025, a total of 19 new locations were opened in Latin America.
- The Company purchased the underlying real estate of 14 U.S. stores during the quarter, bringing the total number of company owned locations to 421 at quarter end.
- As of June 30, 2025, the Company had 3,027 locations, comprised of 1,194 U.S. locations and 1,833 locations in Latin America. Additionally, two U.S. stores were acquired in July 2025 in separate transactions.

Retail POS Payment Solutions (AFF) Merchant Partnerships
- At June 30, 2025, there were approximately 15,300 active retail and e-commerce merchant partner locations, representing a 19% increase in the number of active merchant locations compared to a year ago. Excluding furniture locations that closed in the prior year due to merchant partner bankruptcies, the number of active doors increased 29%.

U.S. Pawn Segment Operating Results

Segment pre-tax operating income in the second quarter of 2025 was a record $98 million, an increase of $8 million, or 8%, compared to the prior-year quarter. The resulting segment pre-tax operating margin was 24% for the second quarter of 2025, which equaled the prior-year quarter.
Year-to-date segment pre-tax operating income increased by $24 million, or 13%, compared to the prior-year period. The pre-tax operating margin was 25% for the year-to-date period, which equaled the prior-year period.
Pawn receivables increased 12% in total at June 30, 2025 compared to the prior year, driven by an impressive 13% increase in same-store pawn receivables. On a two-year stacked basis, same-store pawn receivables were up 24%.
Pawn loan fees increased 9% for the second quarter both in total and on a same-store basis.
Retail merchandise sales increased 9% in the second quarter of 2025 compared to the prior-year quarter, while same-store retail sales increased 7% compared to the prior-year quarter.
Retail sales margins increased to 43% for the second quarter compared to 42% in the prior-year quarter. Annualized inventory turnover was 2.8 times for the trailing twelve months ended June 30, 2025, which equaled the inventory turnover during the same prior-year period. Inventories aged greater than one year at June 30, 2025 remained low at 2% of total inventories.

Latin America Pawn Segment Operating Results

Note: Certain growth rates below are calculated on a constant or local currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the second quarter of 2025 was 19.5 pesos / dollar, an unfavorable change of 13% versus the comparable prior-year period, and for the six month period ended June 30, 2025 was 20.0 pesos / dollar, an unfavorable change of 17% versus the prior-year period.

Despite the 13% decrease in the average Mexican peso exchange rate, second quarter segment pre-tax operating income increased 10% on a U.S. dollar basis and totaled a record $41 million compared to last year. On a local currency basis, segment earnings increased 22% over last year, with resulting segment pre-tax operating margins of 20% for both measures, compared to 18% in the prior year.
Year-to-date segment pre-tax operating income totaled $72 million, a 5% increase on a U.S. dollar-basis compared to the prior-year period and an 18% increase on a local currency basis. The year-to-date pre-tax operating margin increased to 19% compared to 17% in the prior-year period.
Pawn receivables at June 30, 2025 increased 11% on a U.S. dollar basis while increasing 14% on a constant currency basis compared to the prior year. On a same-store basis, pawn receivables increased 10% on a U.S. dollar basis and increased 13% on a constant currency basis compared to the prior year.
While total and same-store pawn loan fees in the second quarter decreased 1% and 2% on a U.S. dollar-basis, respectively, they both increased 11% on a constant currency basis compared to the prior-year quarter.
Retail merchandise sales in the second quarter of 2025 increased 1% on a U.S. dollar-basis compared to the prior-year quarter while increasing 14% on a constant currency basis. On a same-store basis, second quarter retail merchandise sales were flat on a U.S. dollar basis while increasing 13% on a constant currency basis compared to the prior-year quarter.
Retail margins were 36% for the second quarter of 2025, which equaled the prior-year quarter. Annualized inventory turnover was 4.1 times for the trailing twelve months ended June 30, 2025 compared to 4.3 times in the prior-year period. Inventories aged greater than one year at June 30, 2025 remained extremely low at 1%.

American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

Second quarter segment pre-tax operating income totaled $38 million, an increase of 46% compared to the prior-year quarter. The growth in earnings was driven primarily by gross margin improvement and operating expense reductions. Year-to-date segment pre-tax operating income totaled $90 million, a 53% increase over the prior-year period which was $59 million.
While gross revenues for the second quarter decreased 14%, primarily due to the American Freight Warehouse (“A-Freight”) and Conn’s Home Plus (“Conn’s”) bankruptcies in late 2024, net revenue increased 2%, driven by growth in revenue from other merchant partners and lower net credit provisioning expenses.
Gross transaction volume of lease and loan originations during the second quarter increased 3%, compared to the second quarter of last year. Excluding 2024 originations from A-Freight and Conn’s, second quarter 2025 origination volume increased approximately 34%. For the year-to-date period, overall gross transaction volume decreased 2% over the same prior-year period and was up 29% excluding A-Freight and Conn’s.
As a percentage of the total gross transaction volume, the combined lease and loan loss provision expense was 29% for the second quarter of 2025 compared to 31% in the second quarter of 2024. The decrease reflected lower than expected charge-offs on older portfolio vintages which resulted in net reserve releases. The combined allowance as a percentage of combined leased merchandise and finance receivables at June 30, 2025 was 43% compared to 45% a year ago.
Operating expenses decreased 31% compared to the prior-year quarter, primarily due to the elimination of certain expenses associated with supporting the A-Freight and Conn’s relationships in the prior-year period along with continued realization of operating synergies, including greater efficiencies in technology and development infrastructure, coupled with other cost reduction initiatives.

Cash Flow and Liquidity

Consolidated operating cash flows for the twelve month period ended June 30, 2025 grew 26% and totaled $555 million compared to $439 million in the same prior-year period, with significant contributions from each of the Company’s three business segments.
Adjusted free cash flows increased 21% to $267 million in the twelve month period ended June 30, 2025 compared to $220 million in the same prior-year period.
The operating cash flows helped fund significant growth in earning assets, continued investments in the pawn store platform and shareholder returns over the past twelve months with a nominal increase in net debt:
- Pawn earning assets (pawn receivables and inventories) increased $99 million compared to last year.
- A total of 15 pawn stores were acquired for a combined purchase price of $44 million.
- 42 new pawn stores were added with a combined investment of $16 million in fixed assets and working capital.
- Real estate purchases totaled $93 million as the Company purchased the underlying real estate at 60 of its existing pawn stores, bringing the number of Company-owned properties to 421 locations.
- Shareholder returns comprised of stock repurchases and cash dividends of $127 million.
Net debt at June 30, 2025 was $1.6 billion, of which $1.5 billion is fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032. The outstanding balance under the Company’s $700 million revolving line of credit totaled $152 million at June 30, 2025.
Based on trailing twelve month results, the Company’s net debt to adjusted EBITDA ratio improved to 2.6x at June 30, 2025.

Shareholder Returns

The Board of Directors declared a $0.42 per share third quarter cash dividend, which will be paid on August 29, 2025 to stockholders of record as of August 15, 2025. This represents an 11% increase over the previous quarterly dividend.
On an annualized basis, the dividend is now $1.68 per share, also representing an 11% increase over the previous annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
Over the past twelve months, the Company has repurchased 525,000 shares of common stock at a total cost of $60 million and paid out $68 million in cash dividends, representing a payout ratio of approximately 44% of net income over the same period.
The Company has $55 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
The Company generated a 14% return on equity and a 7% return on assets for the twelve months ended June 30, 2025. Using adjusted net income for the twelve months ended June 30, 2025, the adjusted return on equity was 17% while the adjusted return on assets was 8%.

2025 Outlook

Driven by the strong first half results and continuing customer demand for pawn loans, the outlook for 2025 remains highly positive, with expected year-over-year growth in income driven by the continued growth in earning asset balances coupled with store additions. While the H&T acquisition is now anticipated to close by the end of the third quarter of 2025, the estimates provided below do not yet include revenue and contributions from H&T. Anticipated conditions and trends for the remainder of 2025 include the following:

Pawn Operations:

Pawn operations are expected to remain the primary earnings driver in 2025 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
The Company expects further growth in the pawn store base in 2025 through a combination of new store openings and potential small acquisitions.

U.S. Pawn

Based on strong first half results and expected store additions, the outlook for anticipated revenue growth and margins has been increased for all metrics.
Same-store pawn loans at June 30, 2025 were up 13% compared to a year ago, with July balances to date up similarly. Given these trends, the outlook for pawn fee growth is now expected to be in a range of 10% to 12% for the full year versus the prior expectation of 9% to 11% for the full year.
Retail sales are expected to grow in a high single digit range in 2025 versus prior expectations of mid single digits. Retail sales margins are now targeted at the upper end of the 41% to 42% guidance range.

Latin America Pawn

U.S. dollar-reported first half results for Latin America in 2025 were negatively impacted by the lower exchange rate for the Mexican peso during the first half of this year compared to last year. With the recent favorable movement in the peso and the better than expected growth in the underlying business, the Company is increasing its full year revenue outlook for the Latin America pawn segment.
Same-store pawn receivables at June 30, 2025 were up 10% on a U.S. dollar basis and up 13% on a constant currency basis, with July balances to date up similarly. Full year pawn fee growth is now expected to increase in a range of 10% to 12% on a local currency basis and is now projected to be flat to up slightly on a U.S. dollar basis versus prior expectations of flat to down slightly on a U.S. dollar basis.
Retail sales in Latin America are also expected to track similarly to pawn fees in 2025 with consistent retail margins.

Retail POS Payment Solutions (AFF) Operations:

The forecast for full year origination volume for 2025 is expected to be relatively consistent with the 2024 volume. Excluding 2024 originations from Conn’s and A-Freight, origination volumes are expected to increase in a range of 20% to 25% over 2024, reflecting continued diversification outside the furniture vertical.
The outlook for full year net revenues has improved, with the revised forecast for net revenues now expected to decline only 6% to 8% compared to last year versus the previously forecasted decline of 8% to 12%.
The net lease and loan charge-off rates for the second half of 2025 are expected to remain consistent with the charge-off rates in the second half of last year. Quarterly operating expenses for the balance of 2025 are expected to remain generally consistent with the second quarter run rate.

Tax Rates and Currency:

The full year 2025 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
Each full point change in the exchange rate of the Mexican peso is projected to have an annual earnings impact of approximately $0.10 per share.

Additional Commentary and Analysis

Mr. Wessel further commented on FirstCash’s second quarter results and the outlook for the remainder of 2025, “Operating performance across all business segments continues to be incredibly strong, driving year-to-date earnings per share growth of 32% on a GAAP basis and a 33% increase on an adjusted basis. FirstCash also achieved another significant earnings milestone this quarter with adjusted EBITDA for the trailing twelve months exceeding $600 million for the first time in Company history.

“The U.S. pawn segment has now recorded eight consecutive quarters of double-digit growth in same-store receivables with continuing demand remaining strong thus far in July. At the same time, we remain disciplined in managing loan-to-value ratios as evidenced by the improved U.S. retail margins in the second quarter. The demand for value priced merchandise remains strong as well with same-store retail sales up 7% for the most recent quarter.

“In Latin America, we have seen tremendous growth in pawn receivables over the last three quarters, including a 13% increase in same-store pawn receivables in the second quarter. This trend continued to accelerate, with same-store pawn loan originations in Mexico up over 20% over the last thirty days. Our outlook for Latin America is further enhanced by the improved exchange rate for the Mexican peso since the last quarter, which has reduced the previously anticipated currency headwinds and improved our full year outlook for the region.

“Solid performance at AFF further bolstered second quarter and year-to-date operating results for our Retail POS Payment Solutions segment. AFF now has over 15,000 active doors, an increase of 19% over a year ago. Coupled with a 12% increase in same-door originations, AFF fully offset the impact of the loss of two significant merchant partners to bankruptcy last year and realized an overall total increase in originations in the second quarter. Growth continues to be particularly robust in verticals such as elective medical and automotive services. Driven by the solid revenue performance and significant expense savings, profitability for AFF has been especially strong in the first half of the year.

“Looking ahead, we continue to progress toward the closing of the H&T acquisition. H&T represents a highly complementary strategic fit as the U.K.’s largest pawnbroker, operating with a network of 285 stores, which will expand FirstCash’s geographic footprint into a new and attractive market further providing the Company with enhanced scale, operating efficiencies and long-term growth opportunities. We continue to believe in the financial and strategic rationale for expanding our international operations as part of our long-term growth strategy.

“Lastly, based on strong earnings results, robust operating cash flows and the strength of its balance sheet, FirstCash continues to make significant investments in new stores, acquisitions and shareholder returns. To that end, we are again pleased to announce an increased quarterly cash dividend to be paid in August which is expected to provide an annualized payout of $1.68 per share further augmenting shareholder returns” concluded Mr. Wessel.

About FirstCash

FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of annualized segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

Forward-Looking Information

This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2025 and the Company’s previously announced H&T acquisition. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors and risks may include, without limitation, risks related to the extensive regulatory environment in which the Company operates, including uncertainty involving the current regulatory environment under the current presidential administration; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; risks related to the H&T acquisition, in particular, the ability to obtain the necessary regulatory approvals for the H&T acquisition from the FCA and to satisfy the other closing conditions in the expected timeframe, if at all, and the ability to achieve the anticipated benefits from the H&T acquisition; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and trade policy, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail point-of-sale (“POS”) payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; the ability of the Company’s retail POS payment solutions business to continue to grow its base of merchant partners, including those outside of the furniture vertical; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FIRSTCASH HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
Revenue:
Retail merchandise sales	$	385,125		$	363,463		$	756,181		$	730,284
Pawn loan fees		190,822			181,046			382,693			360,581
Leased merchandise income		139,784			194,570			296,702			400,241
Interest and fees on finance receivables		76,075			56,799			149,488			114,186
Wholesale scrap jewelry sales		38,816			35,134			81,981			62,090
Total revenue		830,622			831,012			1,667,045			1,667,382

Cost of revenue:
Cost of retail merchandise sold		230,326			218,147			454,450			441,676
Depreciation of leased merchandise		78,272			110,157			167,091			230,441
Provision for lease losses		32,543			47,653			60,105			90,663
Provision for loan losses		41,761			31,116			78,121			61,534
Cost of wholesale scrap jewelry sold		34,904			28,542			70,259			51,831
Total cost of revenue		417,806			435,615			830,026			876,145

Net revenue		412,816			395,397			837,019			791,237

Expenses and other income:
Operating expenses		222,493			228,369			437,079			449,505
Administrative expenses		59,263			46,602			107,786			90,620
Depreciation and amortization		25,864			26,547			51,366			52,574
Interest expense		26,337			25,187			53,808			50,605
Interest income		(527	)		(261	)		(1,756	)		(1,004	)
(Gain) loss on foreign exchange		(1,271	)		1,437			(1,285	)		1,251
Merger and acquisition expenses		2,777			1,364			3,239			1,961
Other income, net		(3,199	)		(26	)		(5,514	)		(2,338	)
Total expenses and other income		331,737			329,219			644,723			643,174

Income before income taxes		81,079			66,178			192,296			148,063

Provision for income taxes		21,274			17,105			48,900			37,622

Net income	$	59,805		$	49,073		$	143,396		$	110,441

Certain amounts in the consolidated statement of income for the three and six months ended June 30, 2024 have been reclassified in order to conform to the 2025 presentation.

FIRSTCASH HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (unaudited, in thousands)

	June 30,						December 31,
		2025			2024			2024
ASSETS
Cash and cash equivalents	$	101,467		$	113,693		$	175,095
Accounts receivable, net		76,062			72,158			73,325
Pawn loans		550,718			491,731			517,867
Finance receivables, net		154,518			105,401			147,501
Inventories		355,733			315,424			334,580
Leased merchandise, net		100,689			142,935			128,437
Prepaid expenses and other current assets		35,667			31,923			26,943
Total current assets		1,374,854			1,273,265			1,403,748

Property and equipment, net		750,862			661,005			717,916
Operating lease right of use asset		342,859			324,651			324,646
Goodwill		1,826,184			1,794,957			1,787,172
Intangible assets, net		204,643			253,910			228,858
Other assets		9,805			9,606			9,934
Deferred tax assets, net		5,042			5,014			4,712
Total assets	$	4,514,249		$	4,322,408		$	4,476,986

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	145,035		$	141,314		$	171,540
Customer deposits and prepayments		80,848			76,452			72,703
Lease liability, current		100,845			97,809			95,161
Total current liabilities		326,728			315,575			339,404

Revolving unsecured credit facilities		152,000			150,000			198,000
Senior unsecured notes		1,532,865			1,529,870			1,531,346
Deferred tax liabilities, net		125,290			129,060			128,574
Lease liability, non-current		237,198			219,454			225,498
Total liabilities		2,374,081			2,343,959			2,422,822

Stockholders’ equity:
Common stock		575			575			575
Additional paid-in capital		1,760,179			1,760,986			1,767,569
Retained earnings		1,520,677			1,296,721			1,411,083
Accumulated other comprehensive loss		(96,267	)		(84,366	)		(129,596	)
Common stock held in treasury, at cost		(1,044,996	)		(995,467	)		(995,467	)
Total stockholders’ equity		2,140,168			1,978,449			2,054,164
Total liabilities and stockholders’ equity	$	4,514,249		$	4,322,408		$	4,476,986

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS
(UNAUDITED)

The Company organizes its operations into three reportable segments as follows:

U.S. pawn
Latin America pawn
Retail POS payment solutions (AFF)

Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, gain on foreign exchange, merger and acquisition expenses, and other income, net, are presented on a consolidated basis and are not allocated to the segments. Intersegment transactions related to AFF’s LTO payment solution product offered in U.S. pawn stores are eliminated from consolidated totals.

U.S. Pawn Operating Results and Margins (dollars in thousands)

	Three Months Ended
	June 30,
	2025			2024			Increase
Revenue:
Retail merchandise sales	$	249,918		$	230,093			9	%
Pawn loan fees		130,948			120,332			9	%
Wholesale scrap jewelry sales		28,740			26,311			9	%
Total revenue		409,606			376,736			9	%

Cost of revenue:
Cost of retail merchandise sold		143,149			132,449			8	%
Cost of wholesale scrap jewelry sold		26,265			21,269			23	%
Total cost of revenue		169,414			153,718			10	%

Net revenue		240,192			223,018			8	%

Segment expenses:
Operating expenses		133,815			125,192			7	%
Depreciation and amortization		8,091			7,231			12	%
Total segment expenses		141,906			132,423			7	%

Segment pre-tax operating income	$	98,286		$	90,595			8	%

Operating metrics:
Retail merchandise sales margin	43		%	42		%
Net revenue margin	59		%	59		%
Segment pre-tax operating margin	24		%	24		%

FIRSTCASH HOLDINGS, INC. SEGMENT RESULTS (CONTINUED) (UNAUDITED)

U.S. Pawn Operating Results and Margins (dollars in thousands)

	Six Months Ended
	June 30,
	2025			2024			Increase
Revenue:
Retail merchandise sales	$	501,143		$	467,083			7	%
Pawn loan fees		268,896			243,306			11	%
Wholesale scrap jewelry sales		62,232			44,037			41	%
Total revenue		832,271			754,426			10	%

Cost of revenue:
Cost of retail merchandise sold		288,907			272,363			6	%
Cost of wholesale scrap jewelry sold		53,489			36,535			46	%
Total cost of revenue		342,396			308,898			11	%

Net revenue		489,875			445,528			10	%

Segment expenses:
Operating expenses		262,766			244,087			8	%
Depreciation and amortization		15,691			14,244			10	%
Total segment expenses		278,457			258,331			8	%

Segment pre-tax operating income	$	211,418		$	187,197			13	%

Operating metrics:
Retail merchandise sales margin	42		%	42		%
Net revenue margin	59		%	59		%
Segment pre-tax operating margin	25		%	25		%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

	As of June 30,
	2025			2024			Increase
Earning assets:
Pawn loans	$	400,143		$	356,342			12	%
Inventories		252,885			223,428			13	%
	$	653,028		$	579,770			13	%

Average outstanding pawn loan amount (in ones)	$	286		$	260			10	%

Composition of pawn collateral:
General merchandise	28		%	30		%
Jewelry	72		%	70		%
	100		%	100		%

Composition of inventories:
General merchandise	39		%	43		%
Jewelry	61		%	57		%
	100		%	100		%

Percentage of inventory aged greater than one year	2		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	2.8 times			2.8 times

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.

Latin America Pawn Operating Results and Margins (dollars in thousands)

														Constant Currency Basis
														Three Months
														Ended
		Three Months Ended												June 30,			Increase /
		June 30,							Increase /						2025		(Decrease)
			2025				2024		(Decrease)					(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	135,956			$	134,445			1		%		$	153,234			14		%
Pawn loan fees			59,874				60,714			(1	)	%			67,497			11		%
Wholesale scrap jewelry sales			10,076				8,823			14		%			10,076			14		%
Total revenue			205,906				203,982			1		%			230,807			13		%

Cost of revenue:
Cost of retail merchandise sold			87,579				86,276			2		%			98,641			14		%
Cost of wholesale scrap jewelry sold			8,639				7,273			19		%			9,811			35		%
Total cost of revenue			96,218				93,549			3		%			108,452			16		%

Net revenue			109,688				110,433			(1	)	%			122,355			11		%

Segment expenses:
Operating expenses			64,414				67,902			(5	)	%			72,340			7		%
Depreciation and amortization			4,294				5,418			(21	)	%			4,804			(11	)	%
Total segment expenses			68,708				73,320			(6	)	%			77,144			5		%

Segment pre-tax operating income		$	40,980			$	37,113			10		%		$	45,211			22		%

Operating metrics:
Retail merchandise sales margin	36			%	36			%					36			%
Net revenue margin	53			%	54			%					53			%
Segment pre-tax operating margin	20			%	18			%					20			%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Latin America Pawn Operating Results and Margins (dollars in thousands)

														Constant Currency Basis
														Six Months
														Ended
		Six Months Ended												June 30,			Increase /
		June 30,							Increase /						2025		(Decrease)
			2025				2024		(Decrease)					(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	256,488			$	265,294			(3	)	%		$	296,887			12		%
Pawn loan fees			113,797				117,275			(3	)	%			131,755			12		%
Wholesale scrap jewelry sales			19,749				18,053			9		%			19,749			9		%
Total revenue			390,034				400,622			(3	)	%			448,391			12		%

Cost of revenue:
Cost of retail merchandise sold			166,318				170,459			(2	)	%			192,333			13		%
Cost of wholesale scrap jewelry sold			16,770				15,296			10		%			19,491			27		%
Total cost of revenue			183,088				185,755			(1	)	%			211,824			14		%

Net revenue			206,946				214,867			(4	)	%			236,567			10		%

Segment expenses:
Operating expenses			125,831				135,327			(7	)	%			144,841			7		%
Depreciation and amortization			8,730				10,523			(17	)	%			10,008			(5	)	%
Total segment expenses			134,561				145,850			(8	)	%			154,849			6		%

Segment pre-tax operating income		$	72,385			$	69,017			5		%		$	81,718			18		%

Operating metrics:
Retail merchandise sales margin	35			%	36			%					35			%
Net revenue margin	53			%	54			%					53			%
Segment pre-tax operating margin	19			%	17			%					18			%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

										Constant Currency Basis
										As of
										June 30,
	As of June 30,									2025		Increase
	2025			2024			Increase			(Non-GAAP)		(Non-GAAP)
Earning assets:
Pawn loans	$	150,575		$	135,389			11	%	$	154,466		14	%
Inventories		102,848			91,996			12	%		105,501		15	%
	$	253,423		$	227,385			11	%	$	259,967		14	%

Average outstanding pawn loan amount (in ones)	$	96		$	89			8	%	$	98		10	%

Composition of pawn collateral:
General merchandise	57		%	63		%
Jewelry	43		%	37		%
	100		%	100		%

Composition of inventories:
General merchandise	59		%	69		%
Jewelry	41		%	31		%
	100		%	100		%

Percentage of inventory aged greater than one year	1		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	4.1 times			4.3 times

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Operating Results (dollars in thousands)

	Three Months Ended
	June 30,				Increase /
	2025		2024		(Decrease)
Revenue:
Leased merchandise income	$	139,784	$	194,570		(28	)	%
Interest and fees on finance receivables		76,075		56,799		34		%
Total revenue		215,859		251,369		(14	)	%

Cost of revenue:
Depreciation of leased merchandise		78,529		110,567		(29	)	%
Provision for lease losses		32,667		47,824		(32	)	%
Provision for loan losses		41,761		31,116		34		%
Total cost of revenue		152,957		189,507		(19	)	%

Net revenue		62,902		61,862		2		%

Segment expenses:
Operating expenses		24,264		35,275		(31	)	%
Depreciation and amortization		699		678		3		%
Total segment expenses		24,963		35,953		(31	)	%

Segment pre-tax operating income	$	37,939	$	25,909		46		%

	Six Months Ended
	June 30,				Increase /
	2025		2024		(Decrease)
Revenue:
Leased merchandise income	$	296,702	$	400,241		(26	)	%
Interest and fees on finance receivables		149,488		114,186		31		%
Total revenue		446,190		514,427		(13	)	%

Cost of revenue:
Depreciation of leased merchandise		167,672		231,341		(28	)	%
Provision for lease losses		60,271		91,004		(34	)	%
Provision for loan losses		78,121		61,534		27		%
Total cost of revenue		306,064		383,879		(20	)	%

Net revenue		140,126		130,548		7		%

Segment expenses:
Operating expenses		48,482		70,091		(31	)	%
Depreciation and amortization		1,404		1,399		—		%
Total segment expenses		49,886		71,490		(30	)	%

Segment pre-tax operating income	$	90,240	$	59,058		53		%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)

	Three Months Ended								Six Months Ended
	June 30,				Increase /				June 30,				Increase /
	2025		2024		(Decrease)				2025		2024		(Decrease)
Leased merchandise	$	110,516	$	146,778		(25	)	%	$	204,822	$	300,899		(32	)	%
Finance receivables		149,943		105,258		42		%		291,205		207,422		40		%
Total gross transaction volume	$	260,459	$	252,036		3		%	$	496,027	$	508,321		(2	)	%

Retail POS Payment Solutions Earning Assets (dollars in thousands)

	As of June 30,						Increase /
		2025			2024		(Decrease)
Leased merchandise, net:
Leased merchandise, before allowance for lease losses	$	170,824		$	246,457			(31	)	%
Less allowance for lease losses		(69,972	)		(103,301	)		(32	)	%
Leased merchandise, net	$	100,852		$	143,156			(30	)	%

Finance receivables, net:
Finance receivables, before allowance for loan losses	$	277,392		$	205,362			35		%
Less allowance for loan losses		(122,874	)		(99,961	)		23		%
Finance receivables, net	$	154,518		$	105,401			47		%

Portfolio Metrics

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
Leased merchandise portfolio metrics:
Provision rate ⁽¹⁾	30		%	33		%	29		%	30		%
Average monthly net charge-off rate ^{(2), (3)}	6.2		%	5.4		%	6.2		%	5.4		%
Delinquency rate ⁽⁴⁾	23.2		%	23.0		%	23.2		%	23.0		%

Finance receivables portfolio metrics:
Provision rate ⁽¹⁾	28		%	30		%	27		%	30		%
Average monthly net charge-off rate ⁽²⁾	4.6		%	4.5		%	4.4		%	4.7		%
Delinquency rate ⁽⁴⁾	20.6		%	20.0		%	20.6		%	20.0		%

_{⁽¹⁾ Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
⁽²⁾ Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.}
_{⁽³⁾ The increase in leased merchandised net charge-off rate for 2025 is the expected result given reduced originations of new leases in 2025.}
_{⁽⁴⁾ Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).}

FIRSTCASH HOLDINGS, INC.
PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS

Pawn Operations

As of June 30, 2025, the Company operated 3,027 pawn store locations composed of 1,194 stores in 29 U.S. states and the District of Columbia, 1,731 stores in 32 states in Mexico, 72 stores in Guatemala, 18 stores in El Salvador and 12 stores in Colombia.

The following tables detail pawn store count activity for the three and six months ended June 30, 2025:

	Three Months Ended June 30, 2025
	U.S.		Latin America		Total
Total locations, beginning of period	1,197		1,826		3,023
New locations opened	1		9		10
Locations acquired	3		—		3
Consolidation of existing pawn locations ⁽¹⁾	(7	)	(2	)	(9	)
Total locations, end of period	1,194		1,833		3,027


	Six Months Ended June 30, 2025
	U.S.		Latin America		Total
Total locations, beginning of period	1,200		1,826		3,026
New locations opened	2		19		21
Locations acquired	4		—		4
Consolidation of existing pawn locations ⁽¹⁾	(12	)	(12	)	(24	)
Total locations, end of period	1,194		1,833		3,027