FirstCash Holdings (FCFS) Stock Forecast & Price Target

FirstCash Holdings Inc. reported a robust increase in Q2 originations by approximately 34%, driven by new store openings and expanded merchant relationships, highlighting growth potential in its operational segments. The company also experienced a substantial 31% growth in pawn receivables in its legacy stores in Latin America, coupled with a remarkable 59% increase in gross profit over the same period, emphasizing strong performance in this region. With an anticipated rise in the unbanked or underbanked population during economic downturns, FirstCash stands to benefit from increased demand for its pawn services, further strengthening the outlook for the company's growth.

FirstCash Holdings Inc. faces a negative outlook primarily due to anticipated modest declines in segment earnings for 2026, compounded by flat net revenue expectations for the full year, which contrasts sharply with previously forecasted declines of 6% to 8%. The affordability factors have been exacerbated by a significant year-over-year decline of 13% in gross transaction volume within the Retail POS payment solutions segment, attributed to competitor bankruptcies that have negatively influenced loan originations. Furthermore, a decrease in financial literacy among adults, coupled with increasing competition in the pawn lending market, poses a risk to revenue stability and may lead to reduced transaction volumes, ultimately impacting overall profitability.