FirstCash Holdings (FCFS) Stock Forecast & Price Target

FirstCash Holdings Inc. experienced a notable increase in Q2 originations, rising approximately 34% while benefiting from new business relationships and expanding market reach, particularly in non-furniture sectors. The company demonstrated significant growth in its Latin America segment, with pawn receivables increasing by 31% and gross profit soaring by 59%, reflecting strong operational performance. Additionally, with an increasing proportion of the population becoming unbanked or underbanked during economic downturns, the pawn industry is expected to benefit, reinforcing a positive outlook for FirstCash Holdings' continued growth and profitability.

FirstCash Holdings Inc. is expected to experience a modest decline in segment earnings in 2026, largely influenced by conservative provisions for Current Expected Credit Losses (CECL) and flat net revenue projections for the year. The company's Retail POS payment solutions segment has been negatively impacted, with a 13% year-on-year decrease in gross transaction volume in Q3 due to significant bankruptcies among key partners. Furthermore, the increasing competition in the pawn industry could lead to a reduction in transaction volumes and revenue, compounding the challenges already posed by declining financial literacy among consumers, as evidenced by the drop in adults participating in related courses from 8.3% in 2018 to 6.0% in 2024.