FirstCash

FirstCash Holdings, Inc.

Company type	Public
Traded as	Template:NASDAQ S&P 400 Component
Industry	Retail
Founded	1983 (1983)
Headquarters	Fort Worth, Texas, U.S.
Area served	United States, Mexico, Guatemala, Colombia, El Salvador
Services	Pawnbroker, services
Website	firstcash.com

FirstCash Holdings, Inc. is a U.S.-based pawnshop operator with headquarters in Fort Worth, Texas. The company manages retail pawn outlets throughout the United States and Latin America and is listed on the Nasdaq stock market.

In September 2016, FirstCash finalized a merger with Cash America International, Inc., significantly increasing its market presence and extending its international footprint. Later, in December 2021, it acquired American First Finance (AFF), diversifying its offerings by incorporating lease-to-own (LTO) and retail financing solutions via a comprehensive network of retail merchant collaborators nationwide.

History

Jack Daugherty established Cash America in 1983 following his prior involvement in managing a pawnshop and other enterprises. The business swiftly grew to 101 locations by 1988. Daugherty relinquished his CEO role in 1999, with Daniel R. Feehan taking over; Feehan retired as CEO in 2015 and transitioned to chairman. Daugherty remained on the board until his eventual exit.

First Cash was founded in 1988 by John R. Payne, Sr., who expanded the enterprise from six pawnshops by 1991 and took it public to fuel further growth. Payne stepped down as CEO in 1992, succeeded by Rick Powell, who served as CEO until 2004 and chairman until 2010. During Powell’s tenure, First Cash pioneered online merchandise sales among major pawnbrokers in 1998, establishing a notable competitive edge.

Significant Acquisitions

In 1998, First Cash acquired Miraglia Inc., a California-based check-cashing software company operating 11 check-cashing outlets.

Cash America acquired Maxit Financial in 2010 for $70 million through a combination of cash and stock.

The September 2016 merger between Cash America International and First Cash Financial Services was structured as a "merger of equals," resulting in the formation of FirstCash, Inc.

In 2021, FirstCash entered the "buy now, pay later" sector by purchasing American First Finance. Initially announced at $1.17 billion in October, the transaction was completed in December for $916 million.

Legal Issues and Disputes

In 2010, Rick Powell, former CEO and board chairman of First Cash, resigned amid an SEC inquiry into insider trading allegations. He faced accusations of purchasing 100,000 shares prior to a public announcement of a three-million-share buyback, allegedly earning $124,000 in profits. The case was dismissed in 2012 since Powell’s conduct did not constitute possession of material nonpublic information.

In November 2021, the Consumer Financial Protection Bureau initiated legal action against FirstCash and its subsidiary Cash America West for breaches of the Military Lending Act and a prior CFPB order from 2013. The charges included issuing loans to military personnel carrying interest rates as high as 200%, surpassing the legal maximum of 36%.

In September 2022, FirstCash agreed to pay $379,125.73 to compensate 253 employees in Seattle for alleged violations of minimum wage regulations, break periods, and leave policies; an additional payment of $4,746.96 was made to the city as part of the settlement.