FirstCash Adds $200 Million To Buyback, Citing 'Growing Disconnect' With Its Valuation
The pawn-store operator's repurchase program now totals $350 million, with $222 million left after $128 million of buying.
FirstCash Holdings, which operates pawn stores and a lease-to-own business, raised its stock repurchase authorization by $200 million to $350 million, the company said Wednesday in an 8-K. CEO Rick Wessel said the board acted because of a "growing disconnect between our current valuation and FirstCash's progress toward our long-term growth objectives."
Spending so far, and what remains
Under the program the board authorized in July 2026, FirstCash has bought 644,000 shares at an average of $199.46, for an aggregate $128 million. As of Wednesday's market open, $222 million of the authorization remained.
The average is above the $188.45 level at which the stock traded Wednesday at 11:45 a.m. ET, up about 2% from the prior close of $185.35. The board approved the increase unanimously on October 27.
The company may buy in the open market, in block purchases or in privately negotiated deals, including under a pre-scheduled trading plan. No time limit was set, and the program may be suspended or discontinued at any time. Pace will depend on cash balances, credit availability, debt covenants, the stock price and the availability of acquisitions.
Buybacks alongside store growth
Wessel said the primary strategic focus remains growing core pawn operations through acquisitions and new stores, and that the company sees significant opportunities to add locations in each geographic segment. He said funding that growth while enlarging the buyback reflects the balance sheet, record free cash flow and the recent upsizing of its unsecured revolving credit facility.
Pawn customers get small, short-term loans secured by items such as jewelry, electronics and tools, or sell goods to the store. As of December 31, 2025, the company ran 3,330 pawn stores, and its American First Finance unit offers lease-to-own options to credit-constrained shoppers.
A record of returning cash
The company's third-quarter results, released October 22, showed $123 million of stock repurchased in the quarter and $250 million year to date. It also raised its quarterly dividend 10% to $0.46 per share.
Wessel pointed to the longer record: over 25 years, FirstCash has repurchased almost 27 million shares at an aggregate $1.7 billion, an average of $64 per share. It has averaged $139 million in annual repurchases over the last ten years, he said, and its cash dividends have risen every year since the program began in 2016.
The $199.46 average under the current program compares with the $64 average the company says it paid across 25 years of buybacks.
Sources
- 8-K Filing — FirstCash Holdings, Inc. (FCFS) — SEC EDGAR
- Exhibit fcfs10282026exhibit991.htm — FirstCash Holdings, Inc. 8-K exhibit — SEC EDGAR
- FirstCash Announces $200 Million Increase to Share — globenewswire.com
- FirstCash Reports Record Third Quarter Operating Results; — globenewswire.com
