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FirstCash Announces Settlement of CFPB Litigation Related to Military Lending Act

1. FirstCash settles with CFPB over Military Lending Act violations. 2. Settlement includes a $4 million fine and consumer redress of $5-7 million. 3. Company to launch a new pawn lending product for military members. 4. Settlement's financial impact will appear in Q2 2025 results. 5. FirstCash operates over 3,000 retail pawn stores across the U.S. and Latin America.

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Why Bullish?

While the settlement acknowledges past issues, it mitigates future risks and fosters brand trust. A strategic launch of new products could enhance revenue, paralleling historical examples where companies flourished post-regulatory settlements.

How important is it?

The settlement, while costly, clears a pathway for growth in a key customer segment (military), suggesting potential for improved sales and brand loyalty, thus justifying the relatively high importance score.

Why Short Term?

The market may react positively to the resolution and product announcement within upcoming quarters, similar to companies benefiting from swift adaptation to regulatory challenges.

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CFPBAFCPWN
July 11, 2025 18:12 ET  | Source: FirstCash, Inc. FORT WORTH, Texas, July 11, 2025 (GLOBE NEWSWIRE) -- FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), a leading international operator of over 3,000 retail pawn stores in the U.S. and Latin America, today announced that it has reached a settlement with the Consumer Financial Protection Bureau (“CFPB”) regarding alleged violations of the Military Lending Act. Rick Wessel, CEO of FirstCash, stated, "We are pleased to have reached this agreement with the CFPB. While we disagree with the CFPB's allegations regarding our military lending practices, we believe that agreeing to this settlement and putting this matter behind us is the best path forward for the Company. We remain committed to  best meeting the needs of our customers, including members of the military and their families, and to continue providing excellent service.” As part of the settlement, which remains subject to final court approval, FirstCash has agreed to offer a new pawn lending product for covered members of the U.S. military and their immediate families and dependents. Additionally, the Company will pay consumer redress in fees or principal returned to affected customers, which is estimated to be between $5 million and $7 million, and a $4 million fine to the CFPB victims relief fund. The financial impact of the settlement will be reflected in the Company’s GAAP financial results for the second quarter of 2025. About FirstCash FirstCash is a 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. For further information, please contact: Gar JacksonGlobal IR GroupPhone: (817) 886-6998Email: gar@globalirgroup.com Doug Orr, Executive Vice President and Chief Financial OfficerPhone: (817) 258-2650Email: investorrelations@firstcash.comWebsite: investors.firstcash.com

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